Housing, Communities and Local Government
The Secretary of State was asked—
More housing was delivered across England last year than in all but one of the past 31 years. We have examined the recommendations of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) on the build-out review, and the Government responded in full at the spring statement earlier this year with a commitment to speed up the planning system and introduce new guidance to encourage diversification.
May I give the Secretary of State some feedback from architects and planners in Cornwall? The community infrastructure levy is having a detrimental impact due to not only the onerous nature of the number of forms that need to be filled out, but the fact that sites that could be deliverable are not coming forward because of the money. Will he look at that to see whether he can bring forward more sites, because we all want more houses in Cornwall?
I thank my hon. Friend for the input from Cornwall, which, as he knows, is where my family hail from, so I take particular interest in it. Small developers can benefit from exemptions for self-build homes and developments of less than 100 square metres. The CIL contains flexibility and some exemptions, and we introduced guidance in July, but I will certainly listen to my hon. Friend and, indeed, other hon. Members about the community infrastructure levy.
I do, in short. Modular building is an essential part of our work to get speedier build out, to ensure diversification of materials, and to get skills for people. It has been good to see how housing associations and the private sector are starting to embrace it. There is more to do, but I recognise my hon. Friend’s point.
It is not just about how much time it takes to build a house, but about the types of house being built. Will the Secretary of State further outline whether a scheme is in place to provide smaller apartments close to town centres for elderly widows and widowers and those with mobility issues?
The hon. Gentleman will know that housing is devolved in Northern Ireland, but I recognise the absence of an Executive and therefore the need to be able to respond to such local issues. However, our policy in relation to England is clear: we want to see diversification and we want to see that local authorities are able to meet the needs of their communities.
If we are to tackle the housing crisis, we cannot just focus on the large developers. Small developers used to build two thirds of the new housing in this country, but that has gone away. Instead of just having the Help to Buy scheme, why not have a “help to build” scheme that supports or underwrites small and medium-sized construction companies to get rid of some of the difficulties that they encounter?
I totally agree with the hon. Gentleman about ensuring that smaller builders are able to play their part, which has implications for localities and for the supply chain. Indeed, funds are available for smaller builders, but it is a challenge to see how we embody that. Councils are also able to use their new flexibilities to borrow to build, and we will continue to champion that, because the diversification that he highlights is critical.
Leasehold Properties: Mis-selling
I am pleased that the Competition and Markets Authority is investigating mis-selling and onerous leasehold terms and looking at whether such terms are deemed to be unfair, and we will consider further action when it reports. That work supports a strong package of reforms to promote fairness and transparency for leaseholders.
I am grateful to the Secretary of State for his comments but, despite those efforts, buyers of brand-new properties in Kidderminster in my constituency still believe that they have been misled in terms of leasehold contracts and contracts relating to communal services charges on new build estates. Given that we agree that we need to increase house building significantly across the country, does he accept that the apparent mis-selling must be properly investigated and brought to an end once and for all before the scandal affects millions upon millions of future homebuyers?
I absolutely do. Unfair practices in the leasehold market have no place in modern housing, and neither do, for example, excessive ground rents that exploit consumers who get nothing in return. I called on the Competition and Markets Authority to look into this issue, and I am pleased it has now responded, also reflecting the calls from the Housing, Communities and Local Government Committee—I note that the Chair of the Committee, the hon. Member for Sheffield South East (Mr Betts), is in his place this afternoon.
It is right that we get to the bottom of this, that we challenge it and that we respond to these unfair practices firmly and effectively.
When will the Secretary of State introduce regulation to give leaseholders redress? The leasehold valuation tribunal is toothless and, frankly, worthless. Whether it comes to erroneous charges, mis-selling, dangerous cladding or expensive charges, leaseholders have nowhere to go. There needs to be urgent regulation.
I recognise the hon. Lady’s call, which is why we have taken a number of steps and will be bringing forward legislation to ban new leases on houses and to reduce future ground rents to zero monetary value. The Select Committee obviously highlighted the issue of existing leases as well, and we therefore now have a pledge in place and a number of people are coming forward to provide that direct response. I keep this issue under continual review as to what further steps are needed to change the situation for the future, as well as providing support for those already in this situation.
My right hon. Friend and his team have, over the past year or so, made more progress than was made in the previous 20 years, which is greatly to be welcomed. May I ask that he continue showing the open-mindedness, flexibility and drive that are necessary to undo some of the past misdeeds, whether by declaring clauses to be unfair, and therefore unenforceable, or by finding simple, low-cost ways of righting wrongs that have been around for far too long?
I am grateful to my hon. Friend for his comments. We have firmly focused on this issue of leasehold, and I know the close attention he pays to the steps that have been taken. Obviously, the Competition and Markets Authority will be looking at this issue of unfairness. In relation to the Select Committee’s response, there are legal complexities with existing contracts, but I assure him that we will continue to focus on this to provide that effective response.
Hundreds of my constituents have written to me similarly feeling that they have been mis-sold their freehold, so I have written to the Competition and Markets Authority asking it to extend its inquiry to cover freehold, where people have to pay excessive and ever-escalating management and service fees. Will the Secretary of State support me in this?
I certainly support the hon. Lady in seeing that inappropriate or unfair practices are properly investigated and properly responded to. If she is willing to share with me the details of the complaints she has received from her constituents, I would be happy to look into this further.
I commend my hon. Friend the Member for Walsall North (Eddie Hughes) for his private Member’s Bill setting out the steps that are needed to bring the leasehold market into an appropriate space. He will have heard what I said about bringing ground rents down to zero. We have given that commitment, and the right thing is that we move forward with our proposed legislation. I am sure that, with his ingenuity, he will be able to scrutinise it and, no doubt, come up with further proposals to ensure that legislation is effective.
The CMA’s inquiry is certainly welcome, but it is action by Ministers that homebuyers ripped off in the leasehold system need most. The Secretary of State’s predecessor said in 2017 that the Government would stop new leasehold houses, but nearly 3,500 were sold last year. The Secretary of State himself said a year ago that he would end the use of Help to Buy for new leasehold houses, but he had to admit to me afterwards that that will not happen until 2021.
As the Secretary of State reflects on his time in this job, will he concede that any Government action has been too slow and too weak and has totally overlooked the needs of current leaseholders locked into unfair contracts?
No, I do not accept that. I direct the right hon. Gentleman to the action that has been taken and the fall that has been seen: the proportion of new build leasehold houses has fallen from 11% in quarter 4 of 2017 to 2% in quarter 4 of 2018, which was the lowest quarter so far for leasehold houses in the Help to Buy equity loan scheme.
The right hon. Gentleman issues a challenge on the existing Help to Buy scheme; he will note that I have asked Homes England to look into how we can renegotiate some of those contracts, because I was clear that there should be no new Government funding for schemes that promote leasehold, and that remains a firm commitment. Equally, we are taking action on the scheme now to confront some of the abuses that there are.
Well, lots of warm words and fresh reviews, but no action. There have been 19 Government announcements on leaseholds in the 15 months that the right hon. Gentleman has been Secretary of State, but there is still no sign of change for current leaseholders, or of the legislation to make it happen. Is not the hard truth that Conservatives cannot help leaseholders because they will not stand up to the vested interests in the property market? Do not homeowners who are looking for justice and radical, common-sense changes have to look to Labour to set a simple formula for people to buy their own freehold; to crack down on unfair fees and give homeowners the right to challenge high costs or poor performance from management companies; and to put an end, finally, to the broken leasehold system?
Clearly, the right hon. Gentleman has not been looking at the practical steps we have taken and, indeed, the performance that we have seen. Perhaps that is because of the turmoil in his own party—there has been plenty on the Opposition Benches. I direct the House to the steps that have been taken, the commitments that have been made and the effect that all that is now having. We are championing the cause of leaseholders and confronting some of the really unfair practices. We are seeing the effect that that is having as a result of the steps we have taken, rather than the hyperbole from the Opposition and the continuing turmoil that we see among them.
Children’s Social Care Funding
My Department regularly meets council representatives to understand the services that they deliver, including children’s social care. Although the Department for Education has policy responsibility, we work closely with it and sector representatives in our spending review preparations. The Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), is meeting the hon. Gentleman this week to understand his concerns.
I thank the Secretary of State for that answer. Social care accounts for two thirds of Plymouth City Council’s budget, and with more and more children with more and more complex needs relying on social care provision, that spending is only going to go up. It is hard to plan for rising social care costs if we have uncertainty, so will the Secretary of State set out when Plymouth City Council and other councils throughout the country will find out their allocations for 2020-21?
Obviously, the hon. Gentleman will be able to discuss this matter further with my hon. Friend the Under-Secretary; indeed, I believe that meeting will take place later today. Plymouth has seen an increase in funding this year, with a core spend of £198.4 million. The hon. Gentleman issues a challenges on the need for certainty for next year; I understand that challenge and responded to it firmly at the recent Local Government Association conference. I am working with colleagues across Government to see that we have that certainty as early as we can possibly get it. Yes, it is linked to the spending review, but we know that planning is needed, and I am championing the issue so that we get it.
A National Audit Office report this year showed that there is huge variation between the costs of and the activities delivered by local authorities throughout the country. The same report showed that there is no link at all between per pupil funding and the quality of the services delivered, according to Ofsted. Does my right hon. Friend agree that funding alone will not sort out the problems in either children’s or adult social care?
I agree with my hon. Friend and am grateful to him for highlighting the evidence that he rightly raised. We are working with the Department for Education on the review of relative needs and resources, including by jointly funding specific research on the need to spend on children’s services. We want to champion good practice and to ensure that it is there to drive change and improvement in children’s services. My hon. Friend is right that it is about delivery and not simply looking at the funding.
The Secretary of State says that he is working desperately hard to give certainty, but does he recognise that officials in Newcastle City Council are also desperate to ensure that the children in our city receive adequate care from next April, and they cannot do that job if they do not know how much funding will be available to support children in Newcastle?
The point that the hon. Lady makes is one that I recognise and one that I did address at the Local Government Association conference. We are approaching a spending review—a new period for the overall funding for local government—and I want to ensure that we give certainty as early as possible. That is what we are working to achieve, so the planning that she and others want for councils is absolutely what I want, too, and it is why I am doing all I can, within my powers, to see that that happens.
Northamptonshire has the second most expensive children’s social services in the country and is one of the very worst performers, so it is not about money but about management and leadership. In welcoming the appointment of a Children’s Commissioner, will the Secretary of State work with the Department for Education to speed up the implementation of the Children’s Trust rather more quickly than is presently envisaged?
I am grateful to my hon. Friend for highlighting the issue in his own area in Northamptonshire. Equally, I can say to him that I will continue to work with him and colleagues in relation to advancing this issue in terms of the reforms that are needed and implementing them speedily. I can give him the assurance that he seeks on working with colleagues at the Department for Education. Indeed, I can confirm to him that I will continue to listen to him and see that changes are implemented as effectively and quickly as we can.
When the Secretary of State looks back on his record in the current Government, which will be his biggest regret: savage cuts to funding of children’s services, or the wider impact of austerity pushing more children into needing those dwindling services in the first place?
One thing I will not regret is ensuring that I did not listen to some of the advice that I have been hearing from the Opposition. Indeed, we saw this weekend that, on the issue of the contracting out of services, their approach is effectively one that does not look at value for money or at the quality of service; it does not look at anything, it but just based on dogma. That is not our approach, which is about delivering quality services, sticking up for communities and making sure that we have well-run councils. Indeed, it is also about seeing that we are getting that funding going into social care and other services, too. That is what motivates us; that is what motivates me. I will certainly take no lessons from the Opposition.
I asked the right hon. Gentleman about children’s services. Of course, we can see that the Secretary of State just does not get it. His cuts have had dire consequences. The Public Accounts Committee says:
“Children’s social care is increasingly becoming financially unsustainable. The proportion of local authorities that overspend…increased to 91% in 2017-18.”
The Tory-led LGA also says that there is a £1 billion funding gap for children’s services this year. When will he understand that his sticking plaster approach will not fix the broken children’s services?
Again, we hear the same from the hon. Gentleman. When I look at the real-terms increase in core spending that councils have received this year, what do I get from Labour Members—opposition to that. They did not support it. They did not support that additional funding going into social care—children’s and adults’. We on the Government Benches have listened and responded. We will continue to take that forward, with the funding that has gone in over five years to support 20 local authorities to improve their social work practices, in addition to my commitment to listen to the sector and to advance its cause as we look to the spending review ahead to see that social care—children’s and adults’—is effective and delivers for our councils and our communities.
Local Authorities’ Statutory Care Duties
Mr Speaker, I join you in wishing the hon. Lady a very happy birthday—what better way to spend it than at MHCLG questions.
It is the responsibility of each individual local authority to ensure that it can fulfil its statutory care duties. We have, however, supported councils to meet those duties by giving them access to several billion pounds of incremental dedicated funding for this purpose.
I am very grateful for those birthday wishes, but I would be even more grateful if the Minister agreed with me that local authorities have a statutory responsibility to ensure that care workers they have commissioned are paid the minimum wage. The all-party parliamentary group on social care has heard increasing evidence that, despite guidance issued by Her Majesty’s Revenue and Customs, care workers are still not receiving the minimum wage because they are not paid for travel time in between their contact hours. Will the Minister give me a great birthday present by announcing that he will review the way care workers are paid and that he will ensure they are paid the basic statutory minimum wage?
I thank the hon. Lady for raising this important issue. It is absolutely right that those who are carrying out this vital activity in difficult circumstances get exactly what they are entitled to. I have not seen the report, but I would be delighted to take a look at it later today and to talk to my colleagues at the Department for Education and the Department of Health and Social Care to see what we can do to take this forward.
If I had not been sitting down, I would have fallen over when the Secretary of State talked about the injection of extra cash for local authorities. This is, of course, on top of about 40% cuts in just under a decade. Local authorities are very squeezed in delivering their statutory care responsibilities and others. Will the Minister look seriously at all the work that is being done on homelessness and community building and assess the impact of these cuts in delivering wider Government policies on prevention and ensuring that people have decent homes to live in?
I would echo what the Secretary of State said. This talk of cuts is simply not right. The amount of money that local authorities have to spend in this financial year is up in real terms over the last year. This was reinforced by the recent Budget, where we announced over £1 billion in incremental funding for local authorities, particularly targeted at the areas of immediate pressure in adult and children’s social care.
Local Authorities: Adopted Local Plans
Under the current plan-making regime, 37 local authorities have yet to adopt a local plan. Of these, 27 have submitted their draft plan for examination. We continue to monitor progress and offer support where appropriate in all these areas.
The Minister’s Department is taking action against only 15 local authorities where no local plan is actively in place. The Department also has an ambitious target of 300,000 homes a year—about 80,000 a year short. What action will he take to ensure that local authorities like Stoke-on-Trent that are failing to get a local plan in place do so quickly, so that they can develop and address this country’s housing need?
As the hon. Gentleman pointed out, we commenced a formal process of intervention in 15 local authorities to ensure that they fulfil their obligations. I have spent the last 12 months touring the country, exhorting local authorities not only to get a local plan in place, but to do so on a long-term basis so that people can see the kind of decadal-scale planning that is required to get to 300,000 homes a year. If local authorities remain sluggish in producing a plan, as the hon. Gentleman claims his local authority has been—I think that its plan is due for submission in August 2020, which does seem a little tardy—action may be required, beyond just a stiffly-worded letter.
When district councils do not have a local plan and a five-year land supply in place, it is villages and parishes that face the consequences of planning development. What protections will the Minister and his Department put in place for communities trying to establish neighbourhood plans, and will he reflect on his Department’s recent decision to grant planning permission to two sites in Hatfield Peverel that go against the neighbourhood plan?
My right hon. Friend, with her usual skill, puts up a stout defence on behalf of her constituents. She is quite right that protections that would otherwise exist for neighbourhood plans recede where a local plan is not in place, particularly when there is not a five-year land supply. I would point out that having a five-year land supply is not a necessary condition of having a local plan. It is possible to have one without the other, and I hope that her local authority will seek to do so. We will shortly be issuing planning guidance on plan making, wherein I hope we will include measures to strengthen neighbourhood plans, either in the absence of a local plan or where they are not co-terminus.
York has not had a local plan in place since 1954, despite being one of the worst cities for investment in economic and housing opportunities for my constituents and the council’s aspiration to build 20% affordable housing but developing just 4%. What steps will the Minister take to ensure that the plan developed for York will address not only the jobs needs but the housing needs in our city?
I have been in this job for just over 12 months, and I have developed a sense that in some way people have an expectation that I should be planning the country from my desk in Whitehall. Fundamentally, the decisions about the local plan are for the local democratically elected representatives, and they should be examined by a planning inspector to make sure that they are compliant with national planning regimes. In the end, the fundamental arbiter of the local plan in York—whether there should be one and what it should it contain—is a decision by the people of York. I would urge them to vote for a council that will produce the kind of the plan to which the hon. Lady aspires.
In relation to local plans and housing, Isle of Wight Council wants to set up a company to build council housing—I strongly support this—but says that it cannot access the necessary funds because it does not have a housing revenue account. Does the Minister agree with that statement, and, if so, what will he do to help my council to build council housing for Islanders?
I congratulate my hon. Friend, who works very closely with his local council in its aspiration to build more council homes. This is exactly the sort of action that we want to see from local authorities, which were, frankly, induced out of council house building by the previous Labour Government. I am aware that quite a lot of councils in this situation do not have a housing revenue account, despite our lifting the cap and enabling them to access the funding that they need. I would be more than happy to arrange for his councillors or council officials to meet my officials to determine how they could establish just such an account.
The Government are committed to supporting people into home ownership. The most recent English housing survey saw the first rise in home ownership for 35 to 44-year-olds in over a decade. Government schemes have supported over 553,000 households to purchase a home since 2011.
With house prices in the region almost seven times the average annual salary, people in Coventry and the wider west midlands are struggling to get a foot on the housing ladder. What steps are the Government taking to ensure that more genuinely affordable homes are being built in the region so that home ownership is not out of reach for all but the best-paid and those with significant capital?
May I start by saying what a pleasure it is to hear an Opposition Member who believes in the concept of private property—not something that is shared by everybody on the hon. Lady’s Front Bench or, indeed, her leadership? I am pleased that she shares Conservative Members’ obsession that people should have the ability to own their own homes where they want to. In the end, the solution to the problem that she poses is a massive increase in housing supply. We are committed to building 300,000 homes a year by the mid-2020s, not just for one year but for a series of years—perhaps for decades, if we can get there—to address this issue. In the meantime, the Government have put significant funding—billions of pounds—behind schemes such as Help to Buy to make homes more affordable. I hope that as many of her constituents as possible will avail themselves of the assistance that is there.
That is all well and good, but 30 years ago, when I bought my first house in Dudley, people were able to do so because the average cost was about three times the average income. As we have just heard, the average cost is now seven times the average income. At the same time, the number of homes for shared ownership and low-cost home ownership has fallen. So what is the Minister going to do to enable people like the ones I meet in Dudley every single week who are working hard in low-paid employment, desperate to own a home of their own, to fulfil their ambitions?
The hon. Gentleman puts his finger on an enormous problem for the country that we have not shied away from. He is quite right in pointing out that over the past three, possibly four, decades this country has failed to build the homes required by its population, and as a result we have seen unaffordability rise, particularly in London and south-east, but beyond that in the rest of the country as well. In the end, the fundamental solution is a massive increase in supply, which we are committed to. The Government have put significant resources behind lifting the number of homes being built in this country in a way that has not been seen for a generation. Last year’s net new additions to the housing stock were 222,000, and the leading indicators for next year are pointing towards something over 240,000. That will represent the largest expansion in house building in this country since the war.
We are spending more than £1.2 billion to 2020 to reduce homelessness. We have implemented the most ambitious legislative reform in decades, the Homelessness Reduction Act 2017; we are taking immediate action to begin to reduce the number of people on the street through the rough sleeping initiative; and last summer, we published our rough sleeping strategy.
Schemes such as Somewhere Safe To Stay are having success, but will the Minister take on board the feedback that I am receiving from Access Community Trust, Lowestoft Rising and the Salvation Army? They say that to eliminate homelessness, short-term one-year pilots must be turned into longer-term funding commitments and supported accommodation must be provided for those facing mental health challenges.
My hon. Friend is a doughty fighter for his constituency, and he never shies away from meeting the right sort of people to make a difference in his community. I have met the Salvation Army and several of the other bodies that he mentioned, and he is quite right. I recognise the importance of giving local areas security around funding, and that remains a priority for the Government. Decisions about the future of homelessness funding will be made at the spending review later this year. We were clear in the rough sleeping strategy that accommodation, alongside the right support for people with needs, is vital. That is why we are funding a range of initiatives, including the rapid rehousing pathway, through which we directly fund almost 140 areas.
Earlier this month, a young homeless woman in Forest Hill, Stefania Bada, died after contracting an infection. Since 2010, the number of rough sleepers in this country has more than doubled. There has been a steep drop in investment for new affordable homes, billions of pounds cut from housing benefit and significant cuts to services for homeless people. What immediate action will the Government take to prevent any further loss of life?
Any loss of life is to be pitied, and we all apologise for that. It should not happen on our streets, particularly when rough sleepers are being looked after but drug dependency is involved. If an issue happens, it is tragic. We have put in £1.2 billion up to 2020 to solve these issues, and we are not shying away from them. We now give specific support to more than 240 councils, and that is a huge jump.
First, may I declare my interest? There are real fears that the proposed abolition of section 21 in the private rented sector will lead to rent controls and a significant reduction in investment and supply, which may well exacerbate homelessness. Will my hon. Friend consider these fears before pressing ahead with the proposals?
I hope my hon. Friend will excuse my back; as we all know, we talk to each other through the Speaker.
This is a very difficult issue, and one that we want to get right. People from all sides are asking questions about it, which is why the consultation is so important, and I encourage my hon. Friend and other people to take part in it. A very interesting report from 2010 suggested that rent control would make matters an awful lot worse, but the consultation is important.
As Members might imagine, as the Minister with responsibility for veterans in MHCLG, I have taken a great interest in this matter. In London, we have data from the combined homelessness and information network—so-called CHAIN data—which gives us very good and specific data about the number of veterans who are on the streets. Similarly, the homelessness case level information classification, or H-CLIC, contains data that all councils put into it. It is still experimental, because it has been going for less than 18 months, but the latest figures show that the number of veterans on the streets is lower than it has ever been, and lower than 3%.[Official Report, 5 September 2019, Vol. 664, c. 4MC.]
Home Office contractor Serco is intent on making 300 vulnerable asylum seekers homeless in Glasgow. Some have been able to get interim interdicts through the efforts of the Govan Law Centre, the Legal Services Agency and Latta & Co, but some, including a constituent of mine, have not. Will the Minister speak to her colleagues in the Home Office to stop these evictions, which will result in people being put on to the streets?
As the hon. Lady agrees, this is a devolved matter. However, as regards the Home Office, I will of course do so. I recall a question that was asked at Prime Minister’s questions last week about it, and I need to refer the hon. Lady to the answer given then.
A lot of this is not actually a devolved matter, because it is to do with the Government’s hostile environment, which will make it incredibly difficult for these 300 individuals, once made homeless, to be rehoused. That is a damning indictment on this Government. Will the Minister apologise for a policy that denies people the right to a roof over their head and is actively causing homelessness in my city of Glasgow?
Fracking: Planning Policies
Fifty seven earthquakes of up to 1.5 magnitude were detected in Lancashire last year in the two months when Cuadrilla was fracking at Preston New Road. Will the Minister commit to listening to communities such as mine in Lancashire and act in their interests to prevent permitted development rights being granted for shale gas exploration?
As the hon. Lady will know, we have consulted on these permitted development rights. I am hopeful, once consideration by colleagues at the Department for Business, Energy and Industrial Strategy has finished, that we will be able to issue our response to that consultation. I would, however, point out to her that our ability to access gas allows us to stop burning coal. This country has just been through its longest period of not burning coal, by far the dirtiest of fuels, since the industrial revolution.
I hope there will not be any changes that make it easier for fracking to be permitted through the planning system. Like many of my constituents, I am deeply concerned about some of the associated impacts on the environment that come with fracking. Can the Minister assure my constituents that an industrialisation of our countryside, which is what fracking is, will be treated in the same way in the planning system as any other industrial development in open countryside would be?
My hon. Friend has been a persistent advocate for his constituents on this issue. As he knows, alongside the consultation on permitted development rights for exploration, we also consulted on pre-application consultation steps that may have to be taken should an application proceed. Both those matters are under consideration by colleagues, and I hope we will be able to issue a response to them shortly.
I remind the Minister that the consultation he refers to closed last October. Twelve months ago, the Housing, Communities and Local Government Committee did a report opposing permitted development rights and opposing transferring part of the fracking regime to the national infrastructure regime. Given the amount of opposition on his own side, as well as on this side of the House, and in local communities, is the Minister now considering withdrawing those proposals and instead giving greater powers to communities to decide whether they want fracking in their areas?
The Chairman of the Select Committee is quite right to point out the timescale on which these measures have been under consideration, and I will certainly pass on his concerns to colleagues at the Department for Business, Energy and Industrial Strategy.
I will give the Minister another chance. Everyone—from the Royal Town Planning Institute to Friends of the Earth—has criticised the Government’s plans to allow fracking to take place under permitted development, rather than by achieving planning permission, not least because it bypasses the views and concerns of local communities. Given the Government’s silence on this matter since the consultation last year, will the Minister confirm today that the Government will not proceed to use permitted development for fracking and will not dilute regulations covering seismic activity—as requested by Cuadrilla, again, today—but will accept that fracking is environmentally unsound and invest more in renewable energy sources instead?
The hon. Lady is normally quite precise, but I should correct what she said at the start. We consulted not on fracking taking place under permitted development rights, but on exploration in advance of a full application being made for fracking. Those consultations are still under consideration by colleagues, in particular those with whom we work closely at the Department for Business, Energy and Industrial Strategy. I will impress upon them the House’s demands this afternoon that a response be forthcoming.
The Government are investing £1.6 billion through the nine midlands local enterprise partnerships and have established the £250 million midlands engine investment fund. Some £217 million of the local growth fund is being invested in the Black Country, and projects such as the Elite Centre for Manufacturing Skills, with Dudley College, will drive economic growth in the area.
I thank my right hon. Friend for that response, but businesses and residents in my constituency are frustrated at a lack of connectivity. Does the Secretary of State agree that a priority for the midlands engine and the Government as a whole must be to invest substantially in connecting our region, whether by rail, by road or digitally?
I agree with my hon. Friend’s point about connectivity, and he will know that I visited Dudley recently to hear about those issues directly. That is why £215 million of the transforming cities fund has been made available to the West Midlands Combined Authority to support extending the midlands metro tram links to Brierley Hill, enhancing accessibility across the Black Country and helping to drive growth.
Local Government Funding: Removal of Deprivation Measures
The Government have consulted on changes to the local authority funding formula and have heard from over 300 bodies. We are in the process of digesting those responses and will of course listen carefully to what the sector has said.
I am somewhat astonished that the Secretary of State and the Minister can stand at the Dispatch Box and keep a straight face while downplaying local government cuts. My local authority, Bradford Council, has been decimated by nine years of Tory austerity, which has stripped vital services of funding and dragged hundreds of our children into poverty. Does the Minister really think that cutting funding further and devasting our communities is an example of fair funding?
As I have already said, funding in aggregate for local authorities has gone up, but it is worth bearing in mind too that funding for the hon. Gentleman’s local authority is up this year. I have noticed also that its spending power per household is higher than the average for metropolitan districts. Indeed, in Bradford’s latest accounts it boasts of the area having
“Better skills, more good jobs and a growing economy”.
This Government are backing local councils to deliver for their local communities and will continue to do so.
When will the Government review the empty homes premium, a hypothecated tax that is unfairly distributed between deprived precepting boroughs and shires? Hyndburn is about the 24th most deprived area in the country and collects about £600,000, the majority of which is given to wider Lancashire to spend, not the deprived area. This is totally unfair. Does the Minister recognise it as unfair and will he do anything about it?
I am happy to talk to the hon. Gentleman about his specific concern, but in general it is for local authorities themselves to decide how to implement the empty homes premium. They are accountable to their electors, and this is not something that central Government have any execution over.
Our recent reforms gave local authorities the tools to make it more difficult for developers to renegotiate contributions after planning consent. Where developers do not deliver on contributions, these can be enforced through legal proceedings. Finally, local authorities are required to consult on planning applications before consent is granted.
As part of a planning agreement, Persimmon is responsible for building a relief road for Towcester as part of that town’s expansion in my constituency. Highways England is providing £4 million to try to bring forward delivery of the road, but that now seems to be at risk due to problems between the developer and Highways England. Will my right hon. Friend meet me to discuss how we can work together to ensure that the road gets built?
I would be very happy to meet my right hon. Friend to discuss the point she makes. We want to ensure that there is a tie-up on infrastructure; the £5.5 billion housing infrastructure fund is there precisely to support that activity. On section 106 agreements, the Housing Minister and I firmly believe that transparency —publication and making them available, so there is direct accountability—is really important. I will certainly meet my right hon. Friend.
The Secretary of State will know that over my time there have been serious problems with the non-delivery of section 106 agreements, so could we not look at them? When building houses, land tends to be cleared and trees cut down. Under a new kind of section 106 agreement, we could make developers put money into building new forests, such as the Great Northern forest and the White Rose forest.
The hon. Gentleman will be aware that how we create stronger, greener environments is a part of the delivery we firmly need, so that we have a relationship between built and natural environments. I believe very strongly in creating communities. The new planning guide, with the national planning policy framework, provides greater certainty, but we continue to review this area with an accelerated planning Green Paper later this year. If the hon. Gentleman has specific points he would like to raise on how we ensure that that sense of greenness within development is upheld, I will be very grateful to hear from him.
I am grateful to my hon. Friend for highlighting neighbourhood plans, which I believe in very strongly, and how we garner that greater consent for development to take place. I underline the sense of how we speed up the process with planning, with development and with those plans. That is what the accelerated planning Green Paper is all about. I would be delighted to continue to discuss this matter with my hon. Friend and others to ensure that we make that effective.
Just over a week ago, I visited the Buchenwald concentration camp in Germany where my children’s great grandfather was held by the Nazis after Kristallnacht. He was one of the lucky ones. He was able to leave Germany and be reunited with family, but millions of others were not so fortunate. The visit redoubled my determination to deliver the national holocaust memorial and learning centre.
There is a duty on all of us across the House to stand up against antisemitism, racism and bigotry. Through initiatives such as the communities framework, which we have just published, we must stand up for our shared values of openness, understanding and decency. We reaffirm those values, as we mark the centenary of the Addison Act this month, with plans to end the practice of the segregation of social housing tenants through new guidance on development to prevent people from being denied access to shared facilities such as playgrounds. I will continue to champion the values of fairness that underpin my work as Secretary of State.
What steps is my right hon. Friend’s Department taking to ensure there is a co-ordinated cross-Government plan to make sure that areas with very significant housing growth, such as Corby and east Northamptonshire, receive the investment in infrastructure they need?
The £5.5 billion housing infrastructure fund is a cross-Government effort to unlock housing by supporting infrastructure development. With the Department for Transport and the Treasury, we are looking at ways to build capability across Government to make that as effective as possible. My hon. Friend is right. It is about that sense of delivery and consent, and seeing that homes are supported by the infrastructure they need.
On Thursday, it was confirmed that high pressure laminate cladding, exactly like Grenfell-style ACM cladding, is lethal in certain combinations and must be removed from buildings. This could affect up to 1,700 additional blocks. The Secretary of State has known since last October that this cladding failed a fire test. No building should be covered with lethal materials and there are lives at stake, so I ask the Secretary of State: how many buildings are covered in this lethal cladding? What is the deadline for the removal of that cladding? Will the Government fund its removal?
The hon. Lady needs to be careful about the detail of what she has said, because she will equally know that there has been a BS 8414 test in relation to high pressure laminate, with different types of insulation, where the finding was not the description that she has set out. We provided advice in December 2017 and December 2018. We have now reaffirmed further advice to building owners to see that they take appropriate action to make buildings safe. That is what we have taken action to see and secure, and further steps are being taken with local government to test the type of materials that are in buildings. There is certainly no sense on this side of not taking the action that is required to make people safe.
I thank my hon. Friend for her question. We have asked the Law Commission to look at making it easier, quicker and more cost-effective for people to buy their freehold or extend their lease. It is also examining the options on reducing the premium that leaseholders must pay to do that. We look forward to its recommendations in the early part of next year.
We believe that the £200 million, which was an exceptional sum, based on the extreme risk that this ACM cladding has, is sufficient to provide the necessary support to make the necessary remediation, the reason being that commitments are already in place from a number of private sector developers and builders, as well as other insurers, to see that that work is undertaken. It is on that basis that that sum has been ring-fenced.
I am grateful to my hon. Friend for that. He sets out that need for improving the energy efficiency of new and existing homes—that aim is very much shared by the Housing Minister. We plan to consult this year on uplifting the building regulations’ energy-efficiency requirements for new homes and work to existing buildings. Policies are also in place to improve existing homes, and these include the energy company obligation scheme.
We want to get this right in the private rental sector, which is why we have launched the consultation today on section 21 and how we provide that reform. If the hon. Lady wishes to draw the circumstances of this case to my attention, I will be happy to receive the details, because the sense of fairness underpins the action we are taking and is why these reforms are necessary.
I am pleased to say to my hon. Friend that some further positive steps have been taken since my visit to India last October to forge those relationships between the midlands and Maharashtra in India. I hope to be able to give him some positive news very shortly on signing a memorandum of understanding to really regularise that and underpin how we ensure we have that shared expertise to create jobs, boost trade and take other steps to cement this and create that positive sense of prosperity that I know he strongly advocates.
We cannot wait for primary legislation; we have to get on with it now. In particular, there are lots of things in the Letwin review that can work with the grain and the weave of current planning policy. For example, we will shortly be issuing guidance on housing diversification, which is one of the key suggestions in the review. We are encouraging local authorities to introduce local plans, as the hon. Member for Stoke-on-Trent Central (Gareth Snell) urged us to do, so that landowners can realise the obligations placed upon them and so that the value of community contributions and affordable housing can be factored into the land price.
Permitted development rights have damaged the economic and social fabric of Harlow, increased crime and placed intolerable burdens on our education and social services. My right hon. Friend the Secretary of State said he would review them. What has happened to that review and what is the outcome?
I appreciate my right hon. Friend’s question, having recently visited Harlow to discuss this matter with him. In the round, 42,000 homes were delivered in the three years to March 2018 under permitted development rights with a change of use from office to residential. Earlier this year we announced a review of the quality standard of homes provided through permitted development rights for the conversion of buildings to residential use. The review is expected to conclude later this year. Today, I have written to all local authorities to remind them of their responsibilities regarding out-of-borough placements.
Currently, town and parish councils are not compensated in the council tax formula grant for providing student discounts, which means that parish councils in villages with large student populations, such as Kegworth in my constituency, are providing services used by students for which there is no precept. Will the Minister look into this inequity?
We will take this away and look into it. My hon. Friend makes a valid point. More widely, in our communities framework, we have come forward with a plan for expanding the number of parish councils in this country to ensure they play their full part in delivering for the communities they represent.
The Government are still allowing the use of flammable cladding on school buildings up to 18 metres high, which of course means most school buildings. A disabled child would have great difficulty getting out if there were a fire. Why won’t the Government do what every parent wants and bring in a total ban on flammable cladding on schools?
I thank the hon. Gentleman for flagging this up in the way he has. I took the step to introduce the ban on combustible materials on the surface of walls of high-rise residential buildings and others. We keep this under review. The Department for Education takes the lead on some of these standards, but I will certainly impress upon it the issues he raises, because safety and security are paramount.
As my hon. Friend knows, the Department spends an enormous amount of time and energy promoting Help to Buy to those who are eligible, and the new Help to Buy scheme, which will come in once the current scheme finishes, will be targeted very carefully at first-time buyers. I am more than happy to take any suggestions she may have for how we can focus it more on those on lower incomes.
There is a £3.1 billion gap in funding for children’s services and a £4.3 billion gap in funding for adult social care, but, eight months before the start of the new financial year, local authorities have no idea what their funding settlement will be for the coming financial year or beyond it. What is the Secretary of State doing to address this crisis in local government funding, which is affecting the most vulnerable residents in communities up and down the country every single day? Why is he being so complacent?
Far from being complacent, the Government are working hard to ensure that local authorities receive the support that they need, as we heard from my hon. Friend the Member for North West Leicestershire (Andrew Bridgen). We know about the importance of children’s services, and the importance of ensuring that all authorities benefit from best practice from places such as Leeds, Hertfordshire and North Yorkshire. We are funding those authorities so that they can spread that best practice throughout the country, transforming the lives of children everywhere.
I do not want to assume that Ministers have seen the letter that was sent to the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) and me today by the director general for housing about the chairman of the Leasehold Knowledge Partnership and LEASE, the Leasehold Advisory Service. It deals with one issue satisfactorily. May I ask Ministers to see whether the alleged social media comments that pose a difficulty can be sent to the chairman of the all-party parliamentary group on leasehold and commonhold reform to establish whether he can overcome the second difficulty?
Representatives of nearly 50% of children’s services have said that they no longer feel able to keep children safe. Recent research has shown that private fostering, children’s homes and social worker agencies have amassed an estimated annual profit of £220 million, while simultaneously costing local authorities £20 million. At what point will the Government put the needs of vulnerable children before private profit?
It is for local authorities to decide how best to conduct children’s services in their areas, and it would not be right for me to stand at the Dispatch Box and tell them exactly how to contract. I will say this, however. When it comes to protecting the most vulnerable children in our society, the Government have ensured, through the troubled families programme, that hundreds of thousands of the most vulnerable families are receiving the targeted, intensive support they need so that their children can be kept out of care and they can stay strong together.
The crisis in adult social care is likely to become worse as it becomes harder to recruit staff from the European economic area to work in that sector post Brexit. What discussions has the Secretary of State had with the Home Office to ensure that the sector has access to the long-term labour supply that it will need?
I have had discussions with not just the Home Office but the Department of Health and Social Care, and we have pursued the issue with our local government delivery board, which brings together councils from across the country to ensure that such issues are well planned. We keep this issue under careful review, but I believe that councils will rise to the challenge and ensure that the services on which their communities rely will not be disrupted.
Hull is proud of its maritime history, and our relationship with the sea has shaped not only our culture and our economy, but even our character. What support and encouragement can the Minister give Hull City Council in its bid to become an official maritime city?
As someone who was born and bred in the city of Liverpool, I know that the connection between coastal communities and the sea is very strong. What support and encouragement can I give? Well, having visited Hull on many occasions and having had the privilege of experiencing some of the events that took place during its city of culture year, I can say that it seems extremely well placed. I am sure that the hon. Lady, and her colleagues in the constituencies surrounding hers, will let no opportunity pass to bang the drum for Hull, its place in our nation’s story as a maritime city, and its role in driving the future economy of our northern powerhouse.