Baroness Pinnock (LD)

My Lords, first, I wish to welcome the noble Baroness, Lady Blake of Leeds, to her new role. I look forward to working with her; I am sure that we will agree on some occasions, maybe more than most. Let me say right from the beginning that we Liberal Democrats accept the technical changes in this SI, because in effect that is what they are. The amendments are sensible, practical and entirely necessary to prevent any chaos following the levy’s coming into force in October. The positive changes to which the noble Baroness, Lady Blake, has referred are important to remove the loophole of previously developed land. Developers are very good at finding loopholes, so that is important. The spot check and having a strict notification period are also important, as well as separating purpose-built student accommodation from being classed alongside residential. That is positive and we support it. The Government have set a target of raising £3.4 billion, which is good. However, they are planning to raise this over 10 years. In the first year, the levy raises zero. In the second year, it raises—these are estimates I found from, I think, the Office for Budget Responsibility—just £55 million. By the fifth year, so in 2030-31, it will raise £395 million a year, so over the first five years it will raise just £1 billion of the £3.4 billion that it is estimated to raise. I guess there will be reasons for that, but it is unlikely to raise significant sums in the first couple of years. Once you have in mind that that is how the funding is going to be and that it will be five years before anything significant comes into the coffers to support remediation, you say to yourself that the Grenfell Tower tragedy was nearly 10 years ago and the Government are still having to find ways of raising sufficient funds to pay for remediation on top of the £5.1 billion, I think, that they have put aside. About 50 major developers have signed up to a scheme to fund it. The Minister has just said that there is no justification for buildings to remain unsafe, but 46% of buildings have not even had work started on them. Although the levy is important, and I accept the positive changes that are being made, the lack of urgency in all this is worrying, especially if you live as a leaseholder in one of those blighted apartments. I say “blighted” because, if you are a leaseholder waiting for flammable cladding to be removed or safety defects to be remedied, you are stuck in that flat because you cannot sell or remortgage. You are stuck. That is 10 long years, more so when this levy is coming to light. I have some questions for the Minister. Considering that only £1 billion will be raised in the first five years, who will then fund any of the schemes that would be funded under this levy? How will they be funded? Presumably, nobody is going to say, “You can’t get on and do it because we haven’t got the money coming into the coffers just yet”. Is there any way that the Government could find to accelerate the scheme so that more funding comes in in the first five years? That would give leaseholders some hope. My next question is also about leaseholders. Despite the Government’s best efforts, which I support, some of them are still finding that freeholders and management companies are putting some of the costs on to service charges. How can the Government get the message out to leaseholders that that is not right and that they can go to First-tier Tribunals to challenge it? I have said all along in this terrible situation that the one group of people who are completely innocent is the leaseholders. They do not even own the bricks and mortar; they lease the space in between the bricks and mortar. They should not be paying anything. Anything that the Government can do to protect them further would be welcome. Having said that, I support what is in the statutory instrument.