Tag: Speeches

Eddie Hughes – 2022 Speech on Private Rental Price Increases

The speech made by Eddie Hughes, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 14 January 2022.

I begin by congratulating the hon. Member for Hornsey and Wood Green (Catherine West) on securing this important debate on insecurity in the private rental market. In a country as great as ours, it should be a basic human right that people, regardless of whether they are home owners, leaseholders or tenants, feel safe and secure in their own home.

The hon. Lady touched on a number of issues that I am sure are familiar not just to me and my constituents but to Members and constituents across the country. As she rightly pointed out, the private rented sector is the second largest housing tenure in the country—11 million people are housed in that way. In fact, 19% of people in the country live in the private rented sector. It is also housing the most diverse range of people these days. People living in the private rented sector are often older now and families rather than single people.

Although it is the sector that continues to play a central role in providing housing across the country, it is the housing market that has undoubtedly left thousands of tenants feeling insecure and unprotected. However, this does not need to be the case and it should not be the case. We, the Government, want to shift the odds in favour of renters and deliver a better deal for them.

People across the country should be able to expect that, when they are signing up to a rental agreement, they will be protected from wrongdoing. There is still much to do for us to reach that point, but the action that we are taking will improve the lives of people right across the country.

As I stand here today, unfortunately, and as the hon. Lady rightly pointed out, millions of responsible tenants are living in homes in the knowledge that they could be uprooted at a moment’s notice and with minimal justification. That is not peace of mind; that is simply wrong. To give people the confidence they need to be able to plan for the future, we are stepping up with the biggest change in legislation for the private rented sector for a generation by abolishing no-fault evictions—section 21s as they are more formally known. This is the centrepiece of our plans to raise standards across the whole of the private rented sector and reflects our determination to drive out rogue and unscrupulous landlords. Our reforms will deliver a fairer, more effective rental market and, later this year, we will publish the White Paper that sets out the blueprint for the whole sector. I appreciate completely that the hon. Lady is very keen for us to progress, but it is important, given this once-in-a-generation change, that we make sure that we have consulted widely with people from across the sector to ensure that we get it right.

In the meantime, the hon. Lady can be assured that we are not resting on our laurels. We are engaging with the widest possible range of voices, including stakeholders and organisations from across the sector. As much as we sometimes like to pretend, politicians do not always have the answers. Hearing and listening to these views would not only ensure that the White Paper and future legislation actually address the challenges that exist, but help to create a system that works for everyone.

As part of a range of actions to address the urgent and pressing needs of the generational pandemic that has arrived on our shores, we acted to keep renters safe in their homes. We banned bailiff evictions, extended notice periods, and provided unprecedented financial support to people and businesses. These measures worked: fewer households were assessed as homeless; there are fewer rough sleepers today; and fewer possession claims are now being made in the courts. We will make sure that build back better is more than a slogan. As we recover from the pandemic, it is right that we do everything we can to improve the security of tenants in the private rented sector and learn the precious lessons from the interventions that we adopted to make sure that we deliver greater protection for tenants and empower them to hold their landlord to account.

The hon. Lady is right to raise the issue of no-fault evictions. Currently, landlords can evict tenants with as little as two months’ notice once their fixed-term contract has come to an end without even needing to give a reason. The practical implication of this unjust situation is that the tenant can find themselves living with the worry that they may be evicted at the click of a finger. Other tenants continue to endure poor standards for fear that they will asked to leave if they complain about the problems in their home, as the hon. Lady pointed out. That is why the Government are committed to abolishing section 21 of the Housing Act 1988. No longer will tenants find that their landlord is evicting them on a whim with no reason given as to why they have to relocate their lives or disrupt their children’s education. In the future, landlords will always have to provide a specific reason for ending a tenancy, such as breach of contract or waiting to sell the property. It will also help to end revenge evictions where landlords may evict tenants who rightly complain about poor standards, as raised by the hon. Lady. It will protect tenants from having to make frequent and short-notice moves, and will enable them to put down roots and plan for the future.

In 2019, we consulted the public on our proposed reforms to the tenancy framework and how we should take it forward. About 20,000 people gave us their views, and we are listening. While we continue to drive forward work on sector reform, we also recognise that affordability concerns can cause insecurity for renters, and we are committed to tackling that.

It is unfortunate to hear of issues that constituents have raised about rent hikes. Under the existing legislative framework, private sector landlords can increase the rent in two main ways. First, during the fixed-term period any rental increases are set out in the tenancy agreement, allowing landlords and tenants to agree arrangements that suit their circumstances. Secondly, once the fixed-term has ended—and if the agreement transitions to a statutory periodic tenancy—a landlord is able to adjust the rent once a year under section 13 of the Housing Act 1988. The landlord must serve a notice to the tenant informing them of the proposed change. If the tenant does not agree with the landlord’s intention, they can refer the matter to the property chamber of the first-tier tribunal for independent adjudication. The tribunal will consider the application and decide what the maximum rent of that property should be if let on the open market, considering, obviously, the conditions of the local housing market. Tenants may also have a rent review clause in their contract.

We are clear about the fact that it is for landlords and tenants to agree the amount of rent that should be charged at the outset of a tenancy, but the Government are keen to avoid any unintended negative consequences related to abolishing section 21. As part of that, we are determined that there should not be any mechanism for landlords to force a tenant to leave a property by including clauses in tenancy agreements which hike up the rent by excessive or unreasonable amounts just before the agreements are due to expire.

While three quarters of private renters found it easy to afford their rent, we understand that affordability may be an issue for some, and that they may require additional support. For tenants who are unable to afford their rental payments, a range of support is available through the welfare system, alongside the unprecedented financial package helping renters to afford their housing costs during the pandemic. That has meant that, even given associated pressures of covid-19, the vast majority of renters—93%—are up to date with their rent. That shows that the comprehensive package of support provided by the Government is preventing widespread rent arrears as a result of covid-19.

I hope we can all recognise that the Government are steadfast in their commitment to building a private rented sector that works for everyone: a sector that introduces a better deal for renters, and improves the lives of people across the country. Ours is a Government who are pursuing reforms that will ensure that good landlords can flourish and continue to provide the homes that the country needs, but it is also a Government who are protecting tenants from sharp practice and removing criminal landlords from the sector, and are building back better from the pandemic. We are committed to rebalancing the relationship between tenants and landlords to deliver a fairer, more secure and more desirable private rented sector. While that will not happen overnight, it will happen. We get it: we understand the challenges that exist in the sector, and we are open to dealing with them. That is why it is so important that we continue to drive through our reforms to ensure that we deliver on our aims.

We are aware that we need the support of the entire private rented sector if we are to achieve these goals. It is in that spirit that I again thank the hon. Lady for securing this important debate, and assure her that I intend to continue to drive through the Government’s ambitious agenda of reform in the sector.

17/01/2022
Catherine West – 2022 Speech on Private Rental Price Increases

The speech made by Catherine West, the Labour MP for Hornsey and Wood Green, in the House of Commons on 14 January 2022.

I called for this debate, and was successful thanks to the Speaker’s office, following the recent shocking treatment of a group of residents in my constituency by their landlord, which brought insecurities in the private rented sector into sharp focus. In November last year, I was contacted by several residents living in a block of flats in Hornsey and Wood Green. After their building was sold to a new landlord, they received either section 21 notices to evict them or section 13 notices saying that their rent was set to soar by an eye-watering 30% to 40%.

Those tenants included families who had lived there for decades and they were understandably devastated at the thought of losing their homes. Like me, they could not understand how an increase on that scale could ever be justified or how a landlord could kick out reliable long-standing tenants for no reason in the middle of a pandemic.

I am pleased to say that, following weeks of representations by my office to the new owners, the threat of adverse publicity in our local campaigning newspaper and the help of the charity Shelter and local Hornsey Labour councillors, I learned this week that the new owners had rescinded some of those notices and offered tenants new contracts on more favourable terms. Although that is welcome news for most residents, sadly, for some of them, the landlord’s change of heart two months after the notices were dispatched has come much too late.

This example highlights the huge power imbalance between private landlords and their tenants, which is currently upheld by existing housing legislation. That is why I am urging the Government to end section 21 notices, as they committed in their 2019 general election manifesto. I am asking the Minister to provide an answer today on when the renters’ reform Bill, promised in the Queen’s Speech, will be introduced.

In that block of flats in my constituency, seven households were issued with section 21 notices, which enable private landlords to repossess their properties from assured shorthold tenants without having to establish fault on the part of the tenant. Such measures are sometimes informally referred to as no-fault evictions. Many of those householders have lived in their flats for several years, in some cases decades, and are raising their families there.

One family who were issued with a section 21 notice have been renting their flat since 1991. They raised their daughter there and, now in their 60s, cannot afford a mortgage, because in that period, as the Minister will understand, the average price of a property in a place such as Hornsey and Wood Green has sky-rocketed. After the family challenged their landlord over the notice, they were told that their only other option was to accept a 40% rent increase.

Another resident whose family were issued with a section 21 notice after living in their flat for five years explained that his family had been left in an extremely difficult and precarious situation. To make matters worse, those notices were issued in mid-November, with section 21 notice recipients expected to find a new home and move over the Christmas period in the midst of a global pandemic. When challenged on that, the new managing agent for the block said that there was no good time to serve a section 21 notice. He is right, but there are some very bad times, and that was one of them.

Many other tenants in the blocks were issued with section 13 notices of rent rises of up to 40% with as little as four weeks’ notice. One of those residents explained to me that when she moved into her flat as a single parent, she enjoyed the sense of community in the block, which is home to a number of families. The landlord’s aggressive move to increase her rent by 30% to £2,000 per calendar month for a two-bedroom flat in Hornsey would have made it impossible for her to pay.

The only recourse available to those who receive section 13 notices is to refer them to a tribunal. However, this process can be lengthy, complex, time-consuming and a waste of public funds, particularly for those struggling to access expert advice. Moreover, there is nothing to stop landlords subsequently issuing a section 21 notice if the tribunal decision does not go in their favour. The Mayor of London, Sadiq Khan, who has worked with tenants and landlords to develop a new and fairer tenancy model—the London model—has called on the Government to reform court processes to make it easier for renters to challenge rent increases and eviction notices. He wholeheartedly supports this Adjournment debate.

Particularly given the Tory household budget crisis, it is an injustice that any landlord should be able to behave in this way. When I contacted Shelter for advice, I was told there is nothing to prevent private owners deciding to take possession on a large scale like this, even during a global pandemic and on the eve of Christmas.

Living with that level of uncertainty can be detrimental to the wellbeing of our community. Shelter’s survey of private renters in 2021 found that 39% said their housing problems or worries left them feeling stressed and anxious, and many parents have reported to Shelter that the insecurity of renting makes it harder for their children to settle. Living in homes on short, fixed-term contracts with the threat of eviction or a looming unaffordable rent hike makes planning for the future extremely difficult. Frequent moves are not only expensive but disruptive to employment and children’s education.

Living in constant fear of eviction also makes renters less likely to report disrepair problems, which is an issue I see all too frequently in my constituency, where 17,000 households are privately renting. Shockingly, a quarter of privately rented homes do not meet the decent homes standard, with 14% having a category 1 hazard that poses a very significant safety concern.

Although there are some actions the local authority can take to ensure landlords address the most serious disrepair, Citizens Advice found that private renters who make a formal complaint to their local authority have a 46% chance of being served with an eviction notice within six months, which is a severe deterrent to reporting disrepair to the local authority.

Eleven million people, including 1 million children, are now living in rented accommodation. In the past this was just a short-term option before one purchased a home or before one was able to get on a housing list. Now, with 11 million people living in privately rented accommodation in the UK, this has become an urgent issue. The number is expected to grow in the coming years, with 40% of London’s households expected to be living in the private rented sector by 2025. This is no way for the city’s inhabitants to live.

The last piece of comprehensive legislation affecting the private rented sector was introduced in 1988, when the number was far lower. With a growing number of people affected across the country, the Government need to act urgently. First, when will the renters’ reform Bill be brought to the House? Secondly, when will the Government live up to their promise to build more genuinely affordable homes? By that I mean homes with rent at the level of council rents so that people can afford to save while renting and can get on to the housing ladder if they wish to do so later.

Everyone has the right to a safe and secure home. It is shameful that, three years after promising to end no-fault evictions, renters such as my constituents in Hornsey and Wood Green are still living with the fear of being made homeless by their landlord due to this Government’s failure to act. I urge the Minister to address these concerns, which are shared by so many in my constituency, across London and across the UK—11 million people are affected in the UK.

17/01/2022
Lee Rowley – 2022 Statement on Sizewell C Power Station

The statement made by Lee Rowley, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 14 January 2022.

This statement concerns the application for development consent made under the Planning Act 2008 by NNB Generation Company (SZC) Limited for the construction and operation of the Sizewell C nuclear power station, with associated infrastructure near Leiston in Suffolk.

Under section 98(3) of the Planning Act 2008, the examining authority must submit its report to the Secretary of State by the end of the period of three months beginning with the deadline for completion of its examination of the application, or, if earlier, the end of the day on which it completes the examination, unless the Secretary of State sets a new deadline under section 98(4) of that Act. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it.

A request has been made to the Secretary of State by the planning inspectorate to extend the report writing stage of the examination by six working weeks, from 14 January 2022 to 25 February 2022. The reasons given for this request were that a significant number of change requests were submitted by the applicant during the pre-examination and examination stages of the planning process. These changes require significant additional consideration from the examining authority. The examining authority has also been affected by unexpected health issues which have impacted upon the reporting stage of the process.

Taking these reasons into account and, after careful consideration, the Secretary of State has decided to reset the statutory timescale for the report writing stage, extending the deadline for the examining authority to submit its report to the Secretary of State by six working weeks, from the original deadline of 14 January 2022 to 25 February 2022.

However, mindful of the need to avoid unnecessary delays to the development consent processes, the Secretary of State requests the examining authority make best efforts to complete its report as soon as is reasonably practicable within the extended period.

The decision to set the new deadline for the report writing stage for this application is without prejudice to the decision on whether to grant or refuse development consent.

17/01/2022
Grant Shapps – 2022 Statement on the Transport at the Birmingham 2022 Commonwealth Games

The statement made by Grant Shapps, the Secretary of State for Transport, on 17 January 2022.

The Birmingham 2022 Commonwealth Games will take place from 28 July to 8 August 2022 and will be the biggest sporting event ever held in the city featuring thousands of world-class athletes and over a million spectators.

With an estimated global television audience of 1.5 billion people, the Games will showcase Birmingham, the West Midlands and the entire country as an amazing place to live, work, study, visit and do business.

We know that putting in place effective transport provision is a crucial part of any major sporting event and requires detailed planning and coordination. A well understood and supported Transport Plan is therefore essential.

On 23 October 2020, in line with s25(1) of the Birmingham Commonwealth Games Act 2020, I directed the West Midlands Combined Authority to prepare a Transport Plan for the 2022 Commonwealth Games.

Today I am pleased to inform the House that the West Midlands Combined Authority Board has approved the final Games Transport Plan.

The Transport Plan has been produced in close collaboration with Birmingham City Council and the Birmingham 2022 Organising Committee. It sets out a strategic approach to planning and coordination of transport to support the Games covering the transportation of spectators, athletes and the Games family, whilst at the same time ensuring that any disruption to transport users and residents is kept to a minimum.

The Transport Plan is also the result of consultation with key stakeholders, including local authorities, police forces, transport operators, and the Department for Transport, as well as wider public engagement.

The Transport Plan presents 5 principles that have guided decision-making throughout the stages of strategic planning, and which underpin the objectives for transport during the Games.

These principles are:

clean and green: a public transport Games
safe, secure, reliable and efficient transport
minimising disruption
long-term benefits
access for all

I am placing a copy of the Games Transport Plan in the libraries of both Houses

17/01/2022
Keir Starmer – 2022 Article on Fixing the NHS

The article written by Keir Starmer, the Leader of the Opposition, on 14 January 2022 in the Guardian newspaper.

The next Labour government will build a new Britain based on security, prosperity and respect. To do that, we must renew the very foundations of our country. That will begin with renewal of the health service.

The NHS must be resilient, able to meet the challenges of the future, and focused on prevention as well as cure. It must be there to protect us in the future, rather than requiring us to protect it in the present.

It is to the country’s great misfortune that at this crucial time we have a Conservative government yet again mired in scandal, led by a prime minister who is out of control, out of touch and out of ideas. Senior cabinet ministers are spending their days plotting how and when to dispose of him. Precious time is being wasted on the latest internal psychodrama of the Tory party instead of sorting out the mess they have made.

Nowhere is that mess more profound than in the health service. Twelve years ago, the Tories inherited a strong NHS from Labour. Waiting times were the shortest on record. Today they are the highest since records began. Across the country, people are struggling to see a doctor, get the care they require or have a much needed operation.

The claim from the government benches that all the NHS’s ills are down to Covid is simply not true. Waiting times were on the rise long before the virus showed up. Life expectancy had stalled. We went into the pandemic short of 100,000 staff in England and with patients unable to be discharged from beds. Lockdowns were necessary to stop the NHS falling over – but the reason it was in such a perilous state was because the Tories had made it so.

Without a great renewal, the NHS will continue to be vulnerable to new variants and new viruses. That, in turn, will leave the country vulnerable. This is unsustainable. Lockdowns come at enormous cost to people’s lives and health, and the country’s economy. Being forced into a hokey-cokey of restrictions will only do more harm in the long term.

Instead we must fix the damage the Tories have done, to make the NHS more resilient again. That means investing properly. Labour would get waiting lists down by getting staff numbers up: recruiting, training and – crucially – retaining the staff we need. We would treat care workers with respect by giving them real job security and rewarding them properly. And we would transform social care to give older and disabled people the support they need to live the life they choose.

Our focus will be on the sort of renewal that has only ever been possible under Labour governments. Just as the Blair government refocused the health service on outcomes, we would switch the focus from simply treating illnesses to preventing them. When I was director of public prosecutions, hardly a case came across my desk where early intervention couldn’t have turned lives around before they unravelled. The same is true in health.

Achieving this sort of change means rethinking how the healthcare system works. It will require us to focus on the patient rather than just the system, the community as much as the community hospital. If we are to keep people well and at home we must strengthen those services that in turn strengthen entire communities, such as adequate mental health provision.

The NHS needs to be properly funded but, simply throwing money at the problem isn’t the answer. Instead, we need to think radically about how the NHS can deal with the challenges of the future. We would be forensic with investment. Technology has the potential to transform how we live and manage our lives, while also reducing pressures. It will be possible to get early warnings about diseases we may be vulnerable to. “Hospital at home” systems will allow patients to track and report their conditions, with remote supervision.

Tackling the immediate crisis, future-proofing the NHS and shifting our focus to prevention is all part of Labour’s new contract with the British people. It will provide the security that comes with knowing the health service will be there for you and your loved ones when you need it. It will increase our nation’s health and wellbeing, giving us all the chance to prosper. And it will provide people with the dignity and self-respect that come with being able to have control over your own life. The Tories don’t get any of this. They think it’s enough for the NHS to merely survive. Under Labour, the NHS – and Britain – will once again thrive.

16/01/2022
Sadiq Khan – 2022 Comments on a Hillsborough Law

The comments made by Sadiq Khan, the Mayor of London, on 12 January 2022.

London stands in solidarity with all the families who lost loved ones at Hillsborough. Despite promises of change, bereaved families are still going through the trauma the Hillsborough families had to endure at the hands of the legal system. From the Grenfell Tower tragedy to the Manchester Arena attack – ordinary families are having to fight tooth and nail to get the justice they deserve.

We must do everything we can to prevent the experience of the Hillsborough families from being repeated. For all those seeking answers about the deaths of their loved ones, and to ensure our legal system treats everyone equally and with respect, I call on the Government to commit to bringing forward a Hillsborough Law – now.

16/01/2022
Sadiq Khan – 2022 Comments on Temporary Visas for Construction Workers

The comments made by Sadiq Khan, the Mayor of London, on 13 January 2022.

Tackling London’s housing crisis has always been one of my top priorities since becoming Mayor. We’ve worked tirelessly over the last five years to get London building again, and the construction sector forms a key part of London’s Covid recovery plan. However, both our recovery and efforts to deliver the genuinely affordable homes Londoners desperately need could now be put at risk if there isn’t the skilled workforce available to build them.

The Government must look beyond their current blinkered approach to immigration and recognise the impending crisis that is already enveloping one of our most vital industries.

Training our own people to take on jobs in the construction sector is an admirable aim and one we’re working hard to meet but in the meantime, we need skilled tradespeople on site now to manage the short-term crisis and build a strong recovery.

16/01/2022
Maggie Throup – 2022 Statement on the Government’s Vaccination Strategy

The statement made by Maggie Throup, the Parliamentary Under-Secretary of State for Health and Social Care, in the House of Commons on 12 January 2022.

I am grateful to my hon. Friend for her question. We have built three lines of defence to give us the best chance of living with covid-19 and avoiding strict measures: vaccination, testing and treatments. Vaccination is the most important of those three, especially in light of the new omicron variant. Recent data from the UK Health Security Agency shows that unvaccinated people are between three and eight times more likely to be hospitalised with covid-19, so every jab counts in keeping people out of hospital and saving lives.

Since omicron began making its way around the world, our strategy has been to massively expand vaccination. We set the highly ambitious target of ensuring that everyone eligible for a booster would be offered one by the end of December, and we met that target. Some 80% of eligible adults in England have now had the booster, including 87% of people over 50. That means that, per capita, we are the most boosted large nation on the planet. In addition, more than 1.4 million young people aged 12 to 15 have already had their first dose since the vaccine was rolled out to that age group in September, with thousands still getting jabbed every day. As of 10 January, eligible children aged 12 to 15 are being offered a second dose in their school. The vaccination effort is a vital part of ensuring the safe return of pupils to the classroom after Christmas, and the continuity of in-person education, which we know is so important for their development.

Throughout our vaccine programme, we listened to the advice of the Joint Committee on Vaccination and Immunisation, whose clinical expertise is second to none. As we have done so, our vaccination strategy has been highly successful, allowing us to live with fewer restrictions than many other places around the world and keeping our children in education settings, where they belong. Once again, I underline my thanks to everyone who has made our national vaccination programme possible, including the JCVI, the NHS, our vaccines taskforce, the vaccinators and all volunteers across the country. I am sure that the whole House will join me in thanking them for everything that they have achieved.

15/01/2022
Vicky Ford – 2022 Statement on the Humanitarian Crisis in Afghanistan

The statement made by Vicky Ford, the Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs, in the House of Commons on 12 January 2022.

Afghanistan is facing a serious and worsening humanitarian crisis. It is affecting well over half the population, with 23 million people facing acute food insecurity. This is now the world’s most severe food security crisis. The UN has this week requested nearly $4.5 billion for 2022—the largest humanitarian appeal on record, reflecting the magnitude of the humanitarian challenge ahead.

The UK has been at the forefront of efforts to address the situation, working with the UN Security Council, the G20, the G7 and countries in the region. The Prime Minister, the Foreign Secretary and other Ministers have all been working extensively with world leaders. In August, the Prime Minister announced that the UK would double its assistance for Afghanistan to £286 million this financial year, and we have now disbursed over £145 million. That will support over 3.4 million people in Afghanistan and the region, providing emergency food, healthcare, shelter, water and protection. We are working at pace to allocate the remaining funding in response to the developing crisis and the new UN appeal. Further details were in the ministerial statement on 15 December. I thank the British people for donating £28 million to the Disasters Emergency Committee appeal in December, of which £10 million was doubled by UK aid match funding. That has helped to provide lifesaving support.

We were particularly concerned about the impact of the situation on women, girls and other marginalised groups. Last month I, alongside the Minister of State with responsibility for south Asia, Lord Ahmad, met organisations representing women, LGBT+ and religious minorities to discuss support for their needs. In allocating UK aid, we want to ensure that women, girls and other marginalised groups have equal, safe and dignified access to assistance and services. We have pressed the Taliban to respect humanitarian principles.

Our partners report that aid is getting through. We continue to monitor the situation very carefully, especially in the winter months. Aid workers face challenges getting money into Afghanistan due to the banking system. We are working closely with multilateral organisations, banks and non-governmental organisations to address those challenges. We welcome the decision by the World Bank board in November to transfer £280 million to support the humanitarian response, but it is vital—it is vital—that the World Bank produces options to allocate the $1.2 billion remaining in the fund. It is important that donors across the world step up to the challenge, including by responding to the UN’s call for additional funding.

15/01/2022
Paul Scully – 2022 Speech on the Commercial Rent Bill

The speech made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 12 January 2022.

Before I respond to the Opposition amendments, I would first like to thank the hon. Members for Feltham and Heston (Seema Malhotra) and for Brentford and Isleworth (Ruth Cadbury) for their continued constructive engagement with the Bill and for their contributions to date.

The Bill is key to ensuring we support viable businesses that will continue to thrive and contribute to our economy in a way that does not risk the insolvency of their commercial landlords. We remain committed to these principles. The arbitration system is designed to be a quick, effective and impartial solution for rent debts that cannot otherwise be resolved, and we currently expect that all applications for arbitration will be made within six months and that cases should be resolved as soon as practicable afterwards.

Requiring a review of the arbitration process within three months of the Bill being enacted could slow down the process by adding additional steps and requirements for arbitrators that have already proved their suitability for the role. It might also delay the resolution of cases while arbitrators await the findings of the review before making awards.

Under the Bill’s existing provisions, the Secretary of State can already request a report from approved arbitration bodies covering the exercise of their functions under the Bill, including details of awards made and the application of the principles set out in the Bill in the arbitrations they oversee.

Additionally, there is a requirement for arbitrators to publish the detail of awards made, including the reasons behind them. This will show how arbitrators have applied the principles of the Bill in coming to their decisions. We will carefully monitor the position, and if there is a need to revise the guidance, such as to clarify or add new information for arbitrators, the Secretary of State is already able to do so.

I believe that requiring a review would not benefit the aims of the Bill or, indeed, the people who would want to use the new arbitration system to resolve rent disputes, and I therefore hope new clause 1 will be withdrawn.

On amendment 9, as hon. Members will be aware, the Bill defines a business tenancy as a tenancy to which part 2 of the Landlord and Tenant Act 1954 applies—that is to say it is a tenancy comprised of property that is or includes premises that are occupied by the tenant for business purposes. I reassure hon. Members that the Government intend such property to be considered occupied even if it has been mandated to close for some time in full or in part. A tenant will still be in occupation if they are operating their business remotely and intend to return, so I do not believe amendment 9 is necessary. I hope it will be withdrawn.

I should say that we also anticipate courts will take a pragmatic view of occupancy, given the underlying rationale behind the Bill to introduce a system of binding arbitration for businesses that have built up rent debt as a result of Government-mandated closures.

On amendment 13, the operation of approved arbitration bodies follows a market-based policy approach, leaving it to arbitration bodies to manage their internal capacity processes. Our engagement with arbitration bodies suggests that this is the right approach. Looking purely at the number of arbitrators disregards the fact that an arbitrator will be able to take on more than one case at a time. Although the application process will contain a question on the number of arbitrators available, we recognise that this will provide an under-representative picture of capacity in the market, so I am not able to accept the amendment.

On amendment 10, I am grateful to the hon. Members for Feltham and Heston and for Brentford and Isleworth for seeking to ensure consistency between the Bill and the code of practice. I reassure them that the Government’s intention under both the Bill and the code is for the Bill, including the arbitration system it establishes, to come into force as soon as possible. We want the arbitration system to start as soon as possible given its importance to supporting resolution of protected rent debt and a return to normal market operation. The aim remains to bring the Bill, including the arbitration system, into force by 25 March 2022. That is reflected in the code of practice, as updated on 9 November 2021. I am happy to consider whether clarification would be useful within the code. The code outlines the processes and principles that we are seeking to introduce through the Bill. It has given, and continues to give, businesses the opportunity to negotiate in line with those principles until the Bill comes into force.

The March timing is linked to the expiry of the moratorium on forfeiture and the restrictions on use of the commercial rent arrears recovery regime. The Government have been clear that they intend such measures to remain in place until the Bill is passed, if that is earlier than their expiry.

I turn to amendment 14. Clause 11 as it stands must be read with section 34 of the Arbitration Act 1996, which states:

“It shall be for the tribunal to decide all procedural and evidential matters”.

That provides arbitrators with the discretion to call for further evidence where that is considered necessary. There is also no express limit in the Bill on the types of evidence that parties can put forward to support their proposals. We are aiming for a quick and efficient process to restore businesses to normality. The aim of requiring supporting evidence is therefore to help focus participants’ minds on the most pertinent evidence that will support their proposals. It will have to be sufficient to show why the proposal is consistent with the principles and should be adopted. That will help arbitrators to resolve cases quickly. A widening of the clause could lead the paper-based arbitration process to become lengthy, inefficient and costly for the parties, who must meet their own legal and other costs.

I turn to amendment 15. As I have previously explained, clause 17 establishes the timeframe for making awards, requiring arbitrators to make an award as soon as is practicable, or within 14 days in the case of an oral hearing. While we expect that most cases will be resolved quickly, the clause also provides arbitrators with the necessary flexibility to take additional time to make decisions on more complicated cases. One or both of the parties may each simply submit one formal proposal that is final, or one or both may decide to submit revised proposals as final proposals. They may also agree to extend the time limit for submitting initial or revised proposals. That means that it is hard for an arbitrator to know exactly when final proposals have been submitted and when the clock on the 14-day time limit would start running.

Arbitrators may need to request further information after receiving proposals. It would therefore be impractical to impose a time limit. Imposing a 14-day time limit for issuing awards following an oral hearing, as the Bill does—although the time limit can be extended—is less problematic because the arbitrator will have seen the final proposals and had time to consider them before the hearing. They also have an opportunity to ask questions about them during the hearing, which would conclude on that set date.

On amendment 16, I agree that fee levels are an important consideration. The Bill adopts a market-based approach. Arbitration bodies are best placed to decide on fee levels given their experience in costing arbitration schemes to make it affordable for all and attractive enough for arbitrators to want to take on cases. The Secretary of State’s powers are intended to be used only when circumstances determine that to be appropriate. Setting a limit on fees at this point could reduce the number of arbitrators able to act, which could undermine the arbitration mechanism in the Bill. There is no evidence that such a limit is needed. However, if it is, the Secretary of State is prepared to exercise the power as appropriate based on the available evidence.

On amendments 11 and 12, I agree that it is important to encourage behaviour in line with the code of practice and the Bill’s general principles. A key aim of the Bill is to restore businesses to normality as quickly as possible. We have carefully designed the process with arbitrators to make it quick and cheap to navigate, and accessible without further support. The amendments, however, could result in prolonged arguments on costs, appeals and enforcement, delaying a return to that normality that we all seek. They could also encourage the use of legal and other support where that is not needed, lengthening the time to resolution and potentially increasing costs for all parties.

The amendments could create a situation in which one party’s viability or solvency could be endangered through having to pay costs other than arbitration fees. Widening the discretion to include other costs could also lead to an uneven playing field, especially for smaller businesses who could end up paying high legal costs for larger companies. Under the Bill, the arbitrator has discretion to deviate from the general rule of evenly splitting the costs of arbitration fees between parties where appropriate, based on the circumstances of the case, such as when one party has not reasonably co-operated.

On amendment 17, the Bill as drafted allows for a stay of debt claims that include ringfenced debt and are issued between 10 November 2021 and the Bill coming into force. The Bill enables ringfenced debt under those claims and under judgments made in respect of such claims to be subject to arbitration. I understand the concern about the date, but it is not an arbitrary date, because 10 November 2021 follows the Bill’s introduction and the Government’s announcement of the policy. The Bill seeks to introduce proportionate measures that address the interests of both landlords and tenants, whereas the amendment would allow for arbitration of protected debt which was subject to earlier proceedings or judgments when the parties could not have known that this was proposed at the time when the proceedings were issued, so reopening those situations.

Let me now deal with the technical amendments tabled by the Government and the substantive amendment that we are tabling at the request of the Northern Ireland Assembly. Amendments 1 and 2 are technical amendments to make it clear that the definition of “service charge” in clause 2 covers both fixed and variable costs, as well as costs incurred by the landlord insuring against loss of rent. That has always been our intention, and the amendments help to make it clear, ensuring that all relevant costs and charges are within the scope of the arbitration process.

Technical Government amendments 3 and 8 make it clear that the provisions of clauses 10 and 24, in so far as they relate to company voluntary arrangements or certain restructurings, apply to limited liability partnerships. That is in addition to their usual application to companies. These are minor clarificatory amendments to improve the technical drafting of the Bill.

Amendments 4 to 7 are minor and technical, and clarify the operation of arbitration and all hearing fees and expenses. Amendments 4 and 7 make it clear that the general rule is that the party that has paid fees is to be reimbursed half the amount by the other party, but where appropriate, the arbitrator may determine a different proportion, including zero. Amendment 5 makes a small correction to clause 19(6) to make it clear that except for reimbursement of arbitration or oral hearing fees, a party must meet its own legal or other costs. Amendment 6 makes it clear that costs incurred in connection with arbitration are not recoverable under an existing clause in the lease. Allowing cost recovery via the lease concerned would undermine the specific provisions in the Bill on fees, expenses and costs. It would also put the party able to rely on the lease terms at an advantage, as they could be more confident about investing money in their case, in the knowledge that the costs could ultimately be recovered from the other party. In addition, allowing this could potentially put the viability of the other party at risk, even when an arbitral award had been handed down in that other party’s favour.

I turn now to amendments 18 and 19. The Northern Ireland Department of Finance and Department for the Economy have requested the removal of the existing delegated power for them to make regulations for purposes corresponding to the purposes of the Bill, set out in clause 28. This decision was taken for several reasons, which include the availability of existing dispute resolution facilities, plus a lack of compelling evidence that rent debt in Northern Ireland is on a scale to require additional measures. The rationale for the policy in England and Wales remains strong, and this is where our evidence of rent arrears threatening jobs and business insolvency is focused. The removal of clause 28 necessitates an amendment to the Extent provision in clause 30(2), which currently refers to this provision.

Amendments 20 and 21 ensure that clause 24(4) extends to Northern Ireland in relation to company compromises and arrangements, but not company voluntary arrangements. That reflects the territorial extent of the Companies Act 2006 referred to in this provision.

I commend the amendments to the House.

15/01/2022