Local government reorganisation will lead to better outcomes for residents and save a significant amount of money that can be reinvested in public services and improve accountability. It is for councils to develop robust, financially sustainable proposals that are in the best interests of their whole area.
The rushed local government reorganisation means that Waverley borough in my area will be forced to join other authorities that are debt-ridden, such as Woking. What will the Secretary of State do to ensure that residents in my area do not pay a financial price for the woes of other authorities?
As set out in the invitation letters, and as with previous restructures, there is no proposal for council debt to be addressed centrally or written off as part of reorganisation, but the Government accept that Woking and Thurrock councils hold significant unsupported debt that cannot be managed locally in its entirety. We have committed to providing an initial amount of debt repayment support for these councils in 2026-27 ahead of the reorganisation. This is unprecedented Government support.
I have been contacted by constituents who are concerned by media comments over the last week that suggest that the Planning and Infrastructure Bill may render sites of special scientific interest protections meaningless. Will the Secretary of State clarify the Bill’s position on this and outline what protections there will be for SSSIs like Lodge hill in my constituency with its important nightingale population?
I am sure that those on the Conservative Benches have an interest in areas of natural beauty as well, and I am sure that the Minister for Housing and Planning will address this point when we discuss the Planning and Infrastructure Bill later today. We take natural beauty and history seriously, and we think that the Bill will be able to do nature recovery and enable us to build the houses that we desperately need.
The Government continue to progress the implementation of the reforms to the leasehold system that are already in statute, while at the same time undertaking the work required to bring forward the wider set of reforms necessary to end the feudal leasehold system for good. We remain on track to deliver our ambitious leasehold and commonhold reform agenda, as set out in the written ministerial statement that I made on 21 November last year.
I thank the Minister for his positive engagement with me on the issue of a safe crossing at roads on the Wynyard and Queensgate estates in my constituency, but can I also bring to his attention the issue of service charges at the Willow Sage Court estate? Does he agree that our leasehold reforms must ensure fair service charges? I can send him further information about this case if he wishes.
I thank my hon. Friend for raising that point, and I would like further information on that case. The Government recognise the considerable financial strain that rising service charges place on leaseholders and tenants. Overcharging through service charges is completely unacceptable. We intend to consult in the very near future on the measures in the Leasehold and Freehold Reform Act 2024 designed to drive up the transparency of service charges to make them more easily challengeable if leaseholders consider them to be unreasonable.
I congratulate the Government on the bold action they are taking to end the feudal leasehold system for good, which will ensure that future flat owners will never again be treated as second-class homeowners. But as the Minister is well aware, there are millions of existing leaseholders, including thousands in my constituency of Hendon. Will he update the House on the work the Department is doing, building on the path forward outlined in the commonhold White Paper, to strengthen protections for existing leaseholders, including on the conversion of leaseholds, ground rents and right to manage?
The Government remain committed to providing existing leaseholders with greater rights, powers and protections over their homes. We commenced the right-to-manage measures contained in the Leasehold and Freehold Reform Act 2024 on 3 March. We remain firmly committed to tackling unregulated and unaffordable ground rents, and we will deliver that in legislation. We will set out further detail on our proposed approach to enabling the conversion of existing leaseholds to commonhold in our draft leasehold and commonhold reform Bill later this year.
Inflation-busting estate management fees for little or no service plague residents across the country, including those of the Brackenleigh, Greymoor Meadows and Denton Mill estates in my Carlisle constituency. What assurances can the Minister give my constituents and those of other hon. Members that the Government’s actions will curb those atrocious practices by estate management companies?
I thank my hon. Friend for raising that point; I recognise that many hon. Members across the House are affected by this issue. The Government remain committed to protecting residential freeholders on private and mixed tenure housing estates from unfair charges. We will consult this year on implementing the Leasehold and Freehold Reform Act’s new consumer protection provisions for the millions of homes subject to the charges affecting my hon. Friend’s constituents, and we will bring measures into force as quickly as possible thereafter.
I am glad to see the Government starting to tackle some of these issues. Will the Minister assure me that people on freehold housing estates with covenant issues in places like Basildon and Billericay will also be included in any legislation? They often face service charge increases of tens of per cent every single year, and they need that same assurance being provided to leaseholders that the Government will think about that and take action.