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Caravan Sites (Security of Tenure)
3.35 pm
Julie Morgan (Cardiff, North) (Lab): I beg to move,
That leave be given to bring in a Bill to make provision for security of tenure for Gypsies and Travellers on local authority caravan sites; and for connected purposes.
I should like to begin by describing a case that brings security of tenure for Gypsies and Travellers into sharp focus and demonstrates the vulnerability of their position and the resulting injustice. In May 2004, the European Court of Human Rights decided the case of Connors v. the United Kingdom, in which the claimant had been evicted from an official local authority Gypsy site on which she had resided for many years. There were allegations of nuisance, but the local authority did not have to plead those allegations nor prove its case in the possession action that it took in the county court because the Caravan Sites Act 1968 provides that all that a local authority has to do to gain possession of a pitch on a Gypsy site is to provide 28 days’ notice of termination of the Gypsy’s or Traveller’s licence and then obtain a court order. In Connors v. the United Kingdom, the local authority had served such a notice, leaving the occupant without a defence. The court could neither scrutinise the allegations that had prompted the local authority to serve the notice nor decide whether they were proved and, if proved, decide whether it was reasonable for a possession order to be made. The European Court of Human Rights decided that that lack of any procedural safeguard was a clear breach of the occupant’s rights under article 8 of the European convention on human rights, which provides a right to respect for that person’s home, private life and family life.
Looking back on that case now, one could say that that appears to be an obvious conclusion. Most council tenants in bricks and mortar housing have full security of tenure under the Housing Act 1985. Only those on a trial period under an introductory tenancy, those whose tenancy has been demoted for antisocial behaviour, or those in accommodation for the homeless do not enjoy those full rights. If a local authority wishes to take possession proceedings against a council secure tenant, it must establish one of the grounds of possession in the Act. In the case of discretionary grounds, as in cases involving rent arrears or nuisance allegations, the court must also be satisfied that it is reasonable to grant a possession order.
In November 2004, the Government sent a memorandum to the Council of Ministers indicating that they accepted that they would have to change the law to introduce security of tenure on official local authority Gypsy and Traveller sites. The indications given at the time were that this would be achieved by referring the matter to the Law Commission, which was working on reforms to security of tenure with regard to tenancies of bricks and mortar dwellings. While that was awaited, Gypsies and Travellers on official sites remained without security of tenure.
In the
meantime, on the face of it, local authorities were still entitled to
seek a possession order without pleading or proving any grounds of
possession. Relying on the Connors case, lawyers representing Gypsies
and Travellers facing eviction were compelled to resort to
article 8 of the European convention and to argue that this could
provide a defence to the county court claim for possession of the land,
oblige the court to investigate the allegations and decide the issues,
and entitle the court to refuse to make a possession order where it
considered it disproportionate to do
so.
However, to succeed in that argument Gypsies and Travellers had to overcome the decision of the House of Lords in London Borough of Harrow v. Qazi, decided in July 2003. The House of Lords decided that the defendant could not rely on article 8 as a defence, as the domestic legislation provided an automatic justification for any interference with his right to respect for his home and family life.
The challenge to Qazi returned to centre stage in March this year, when the House of Lords, sitting as a seven-member court, heard the cases of Kay v. London borough of Lambeth and Price v. Leeds city council together. By a majority of four to three, the House held that the Connors ruling was, to a limited degree, inconsistent with its decision in the Qazi case. It decided that the Qazi ruling must be modified to the extent that in cases of a special and unusual kind, such as the Connors case, interference with the occupier’s article 8 rights would have to be justified by a decision-making process that ensured that some special consideration was given to those interests.
In May 2006, the Law Commission produced a consultation document entitled “Renting Homes: The Final Report”. It is the commission’s final report—now out for consultation—on the question of reform of security of tenure for tenants of dwelling houses. Despite what had been indicated soon after the Connors decision, there is no reference by the Law Commission to the situation on Gypsy sites. Moreover, it would appear to be by no means certain that the Law Commission’s draft legislation—appended to its report—will go any further. In the light of that, there are still no firm proposals from the Government on what should be done about security of tenure for Gypsies and Travellers on permanent official sites.
I ask this: why should the clearly delineated statutory protection afforded to a council “bricks and mortar” tenant not also be available to a Gypsy or Traveller occupying a pitch on a permanent local authority site in the same circumstances? Both the European Court of Human Rights and the House of Lords have held the present law enacted by Parliament to be in breach of article 8 of the convention, which provides for the right to respect for a person’s home and family life. The rights of Gypsies and Travellers on official sites are also in stark contrast with the charter of rights—recently significantly strengthened by the Housing Act 2004—given to occupants of pitches in park homes regulated by the Mobile Homes Act 1983.
More than 50 years after the
United Kingdom signed the European convention on human rights, why
should Gypsies and Travellers on local authority sites be compelled to
rely on the ingenuity of housing and human rights lawyers—and,
of course, their availability—to gain what can only be called
basic human rights, whereas “bricks and mortar” dwellers
have their rights clearly enshrined in statute and readily applied by
the courts? The threat of losing one’s home, with the risk of
children being taken into care, is a
frightening experience, not just for the tenant or licensee of a pitch
but for the whole family.
Parliament's intervention in the form of section 211 of the Housing Act 2004, which gives the courts power to suspend possession orders, does not deal with the mischief that I seek to cure in the Bill. The current state of the law continues to be a source of anxiety, distress and hardship to Gypsies and Travellers on official sites, and clearly defined rights need to be enacted. I tabled the Bill for that reason, and I thank Chris Johnson of the Community Law Partnership and Andrew Ryder for their help in drafting it.
The Bill is designed to adapt the provisions that apply to secure tenants under the Housing Act 1985 to the circumstances of Gypsies and Travellers on official sites. It provides for such rights to be acquired after a successful trial period, and to be lost by means of a demotion order when abused through antisocial behaviour. All that I seek to do is put occupants of local authority official sites on a par with occupants of local authority “bricks and mortar” accommodation. If Gypsies and Travellers on official sites are to be given equivalent security of tenure, it follows logically that they should also have the rights enjoyed by tenants of council housing in relation to succession, assignment, right to exchange and relevant repairing obligations. Accordingly, those matters are also included in the Bill.
In passing, I should like to mention the initiative of Oxfordshire county council, which, in producing new licence agreements for its six county council sites in July 2005, included such rights as a matter of contract.
The Bill is intended to have effect in England and Wales. According to the latest caravan count figures, nearly 50 per cent. of Gypsies and Travellers who live in caravans in England live on official local authority sites. There are no up-to-date statistics for Wales, but I am glad to note that the recent Niner report on Gypsy and Traveller accommodation needs in Wales, commissioned by the Welsh Assembly Government, has recommended that an up-to-date count be undertaken.
The time has come to make sure that Gypsy and Traveller occupiers of local authority sites receive the same protection, corresponding to local authority “bricks and mortar” tenants. We must respect their rights to a secure home and family life. The Bill will provide such protection and security, so I commend it to the House.
Bill ordered to be brought in by Julie Morgan,Mr. David Amess, Ms Karen Buck, Mr. Martin Caton, Harry Cohen, Jeremy Corbyn, Mr. David Drew, Nick Harvey, Kelvin Hopkins, Bob Russell, Mr. Andrew Slaughter and Mrs. Betty Williams.
Caravan Sites (Security of Tenure)
Julie Morgan accordingly presented a Bill to make provision for security of tenure for Gypsies and Travellers on local authority caravan sites; and for connected purposes: And the same was read the First time; and ordered to be read a Second time on Friday 20 October, and to be printed [Bill 206].
Orders of the Day
Consolidated fund (appropriation) (No. 3) bill
Order for Second Reading read.
Question, That the Bill be now read a Second time, put forthwith, pursuant to Standing Order No. 56 (Consolidated Fund Bills), and agreed to.
Question, That the Bill be now read the Third time, put forthwith, and agreed to.
Bill accordingly read the Third time, and passed.
FINANCE (NO. 2) BILL [WAYS AND MEANS]
Motion made, and Question put forthwith, pursuant to Standing Order No. 52(1)(b) (Money resolutions and ways and means resolutions in connection with bills),
Repos and other structured finance arrangements
That provision may be made in the Finance (No. 2) Bill for the purposes of income tax and corporation tax in relation to—
(a) arrangements for the sale and repurchase of securities, and
(b) other arrangements that equate, in substance, to transactions for the lending of money.— [Ed Balls.]
Finance (No. 2) Bill
Bill not amended in the Committee and as amended in the Standing Committee, considered.
That the Finance (No.2) Bill, as amended, be considered in the following order, namely, new Clauses relating to Part 6, new Schedules relating to Part 6, amendments relating to Clauses 155 and 156, Schedule 20, Clause 157, remaining new Clauses, remaining new Schedules, amendments relating to Clauses 1 to 27, Schedule 1, Clause 28, Schedule 2, Clause 29, Schedule 3, Clauses 30 to 37, Schedule 4, Clauses 38 to 42, Schedule 5, Clauses 43 to 76, Schedule 6, Clauses 77 to 79, Schedule 7, Clauses 80 and 81, Schedules 8 and 9, Clause 82, Schedule 10, Clauses 83 to 86, Schedule 11, Clauses 87 and 88, Schedule 12, Clause 89, Schedule 13, Clauses 90 and 91, Schedule 14, Clauses 92 to 102, Schedule 15, Clauses 103 and 104, Schedule 16, Clause 105 to 134, Schedule 17, Clauses 135 to 146, Schedule 18, Clauses 147 to 154, Schedule 19, Clause 158, Schedule 21, Clauses 159 and 160, Schedule 22, Clause 161, Schedule 23, Clauses162 and 163, Schedule 24, Clause 164, Schedule 25, Clauses 165 to 178, Schedule 26, and Clauses 179 and180 —[Dawn Primarolo.]
‘The provisions of Schedule 20 shall not operate so as to discourage, impede or prevent the use of trusts which are set up—
(a) as a result of relationship breakdown and create a “relationship breakdown settlement interest”, as defined in section 59A of the Inheritance Tax Act 1984; or
(b) in relation to the proceeds of life protection policies, as defined in section 58(4) of the Inheritance Tax Act 1984; or
(c) by or in favour of disabled persons within the definition set out in section 89 of the Inheritance Tax Act 1984.’.— [Mrs. Villiers.]
Brought up, and read the First time.
3.48 pm
Mrs. Theresa Villiers (Chipping Barnet) (Con): I beg to move, That the clause be read a Second time.
Mr. Speaker: With this it will be convenient to discuss the following:
Amendment No. 58, in schedule 20, page 377, line 21, after ‘minor’, insert ‘(whether by exercise of trustees’ powers under such a will or otherwise).’.
Amendment No. 56, page 380, line 30, at end insert—
‘(4A) Where—
(a) section 71 above applied to settled property immediately before 22nd March 2006,
(b) on or after that date a beneficiary (within the meaning of section 71 above) (“B”) became entitled to an interest in possession in that settled property, and
(c) before that interest in possession had come to an end and while B was under the age of 25 and before [6th April 2008] that settled property became held for the benefit of B on trusts such as are mentioned in subsection (3)(b)(i) above,
subsections (3) and (4) above shall apply as though the settled property had become held on the trusts referred to in paragraph (c) above immediately at the time B in fact became entitled to the interest in possession referred to in paragraph (b) above.’.
Amendment No. 34, page 386, line 3, after ‘interest’, insert ‘, or
(d) a relationship breakdown settlement interest.’.
Government amendments Nos. 71 to 74.
Amendment No. 59, page 386, line 42, after ‘but’, insert ‘(unless B was the spouse or civil partner of the person entitled to the prior interest)’.
Government amendments Nos. 75 to 77.
Amendment No. 5, page 388, line 18, at beginning insert—
‘6 (1) In section 89 (trusts for disabled persons)—
(a) in subsection (4)(a) at end insert—
“(aa) a person who lacked capacity within the meaning of section 272 below, or”;
(b) in subsection (4)(c), leave out “or middle” and insert “middle or lower”; and
(c) after subsection (4)(c) at end insert—
“(d) a person who satisfies the Commissioners for Her Majesty’s Revenue and Customs that he had a condition that it was at that time reasonable to expect would have such effects on him as to lead to him becoming a person—
(i) falling within subsection (4)(a) or (aa) above, or
(ii) in receipt of an attendance allowance mentioned in subsection (4)(b) above, or
(iii) in receipt of a disability living allowance mentioned in subsection (4)(c) above.”.’.
Amendment No. 6, page 388, line 29, after ‘89(4)(a)’, insert ‘or (aa)’.
Amendment No. 7, page 388, line 34 , leave out ‘or middle’ and insert ‘, middle or lower’.
Amendment No. 8, page 390, line 26, leave out ‘or middle’ and insert ‘, middle or lower’.
Amendment No. 9, page 390, line 46, leave out ‘or middle’ and insert ‘, middle or lower’.
Amendment No. 10, page 391, line 2, at end insert—
‘(7) The reference in subsection (1) above to a disabled person includes, in relation to any settled property, a reference to a person who satisfied Her Majesty’s Revenue and Customs that he would, when the property was transferred into settlement, have been entitled to an attendance allowance or disability living allowance, by virtue of entitlement to the care component at the highest, middle or lower rate, whether or not such an allowance was actually claimed.’.
Amendment No. 35, page 393, line 9, at end insert ‘, and
(iv) not a relationship breakdown settlement interest.”’.
Amendment No. 32, page 393, line 9, after ‘interest’, insert—
‘10A (1) Section 10 of IHTA 1984 is amended as follows.
(2) In subsection (1)(b) after “with each other”, insert “, or
(c) it is made in accordance with or pursuant to a court order in proceedings for the following types of provision—
(i)
financial relief for the parties to a marriage and any children of the
family in connection with proceedings for divorce, nullity of marriage
or judicial separation including, but not limited to, property
adjustment orders or variation of settlement orders under section 24 of
the Matrimonial Causes Act 1973 or orders under
section 8 of the Family Law (Scotland) Act 1985 and any successive
legislation; or
(ii) financial relief for the parties of a civil partnership in connection with proceedings for dissolution of the civil partnership including, but not limited to, property adjustment orders or variation of settlement orders under Schedule 5 of the Civil Partnership Act 2004 and any successive legislation; or
(iii) where a marriage has been dissolved or annulled or the parties to a marriage have been legally separated, by means of judicial or other proceedings in an overseas country and the divorce, annulment or legal separation is entitled to be recognised as valid in England and Wales, in Scotland or in Northern Ireland, financial relief for the parties to the marriage and any children of the family including, but not limited to, property adjustment orders or variation of settlement orders under section 17 of the Matrimonial and Family Proceedings Act 1984 or orders under section 8 of the Family Law (Scotland) Act 1985 and any successive legislation; or
(iv) financial relief for the benefit of a child including, but not limited to, a transfer or settlement of property under paragraph 1 of Schedule 1 of the Children Act 1989 and any successive legislation.”.’.
Amendment No. 36, page 396, line 15, at end insert‘, or
(c) a relationship breakdown settlement interest.”’.
Amendment No. 37, page 396, line 30, at end insert‘, or
(d) a relationship breakdown settlement interest.”’.
Amendment No. 38, page 396, line 39, at end insert‘, or
(d) a relationship breakdown settlement interest.”’.
Amendment No. 39, page 397, line 24, at end insert‘, or
(c) a relationship breakdown settlement interest.”’.
Amendment No. 40, page 398, line 10, at end insert‘, or
(c) a relationship breakdown settlement interest.”’.
Amendment No. 41, page 398, line 28, at end insert‘, or
(d) a relationship breakdown settlement interest.”’.
Amendment No. 3, page 398, line 39, at end insert—
‘(2A) After sub-paragraph 1(f) insert—
“(g) a life protection policy as defined in subsection 4 below;
(h) property representing directly or indirectly any sum paid under a life protection policy, within two years following the death of any person giving rise to that sum.”.’.
Amendment No. 42, page 399, line 11, at end insert ‘, and
(iv) not a relationship breakdown settlement interest.’.
Amendment No. 4, page 399, line 25, at end insert—
‘(4) After section 58(3) insert—
“58(4) In subsections 1(g) and 1(h) above a “life protection policy” is a policy of insurance where the sum payable on the death or disability of any person is at all times no less than a number of equal to ten multiplied by the highest total sum of premiums paid in any period of twelve months.”.’.Amendment No. 43, page 399, line 37, after first ‘interest’, insert ‘, or a relationship breakdown settlement interest’.
Amendment No. 33, page 400, line 6, at end insert—
‘20A In IHTA 1984 after section 59 IHTA 1984 insert—“59A Relationship breakdown settlement interest
(1) Where a person (“L”) is beneficially entitled to an interest in possession in settled property, for the purposes of this Chapter that interest is a “relationship breakdown settlement interest” only if the following conditions are satisfied.
(2) Condition 1 is that the settlement was effected, or if there was a prior settlement it was confirmed or varied, by a court order, in proceedings of the type mentioned in section 10(1)(c).
(3) Condition 2 is that L became beneficially entitled to the interest in possession on or before the date on which the court order came into effect.’.
Amendment No. 57, page 400, line 44, at end insert ‘or a disabled person’s interest’.
Amendment No. 44, page 401, line 21 , after ‘interest’, insert ‘, or
(iii) a relationship breakdown settlement interest.’.
Amendment No. 45, page 401, line 27, after second ‘interest’, insert ‘or a relationship breakdown settlement interest’.
Amendment No. 46, page 401, line 30 , after ‘interest’, insert ‘or a relationship breakdown settlement interest’.
Amendment No. 47, page 401, line 37 , leave out ‘neither’ and insert ‘not’.
Amendment No. 48, page 401, line 37, leave out ‘nor’ and insert ‘or’.
Amendment No. 49, page 401, line 38 , after ‘interest’, insert ‘or a relationship breakdown settlement interest.’.
Amendment No. 50, page 402, line 2, at end insert‘, or
(d) a relationship breakdown settlement interest.”’.
Amendment No. 54, page 403, leave out line 1.
Amendment No. 55, page 403, line 2 , leave out ‘the’ and insert ‘a’.
Government amendments Nos. 88 and 89.
Amendment No. 11, page 403, line 26, at end insert—
‘“lacked capacity” means lacked capacity, within the meaning of the Mental Capacity Act 2005, in relation to any financial matter;’.
Amendment No. 51, page 403, line 26, at end insert—
‘“relationship breakdown settlement interest” means a relationship breakdown settlement interest for the purposes of Chapter 3 of Part 3 (see section 59A above);”’.
Government amendments Nos. 90 to 92.
Amendment No. 12, page 404, line 6, at end insert—
‘(iii) a disabled person’s interest, within the meaning given by section 89B of that Act; or’.
Amendment No. 52, page 404, line 6, at end insert—
‘(iii) a relationship breakdown settlement interest within the meaning given by section 59A of that Act, or’.
Government amendments Nos. 93 to 96.
Amendment No. 53, page 405, line 5, after ‘interest’, insert ‘or
(iii) a relationship breakdown settlement interest.’.
Mrs. Villiers: From the day the Chancellor slipped out these proposals contained in schedule 20 of the Finance Bill in Budget note 25 on 22 March this year, they were greeted with dismay and viewed as a matter of grave concern. Protests came from thousands of professionals across the country who were deeply worried that the Government had failed to carry out any consultation on the proposals and that those proposals would have a retrospective impact on thousands of trusts. Above all, Richard Platt, of Brewin Dolphin Securities, spoke for many of similar mind when he said that the proposals would
“hit Britain’s hard-working families at a time when the Government is encouraging families to safeguard their long-term financial security.”
The Society of Trust and Estate Practitioners, which has campaigned hard on the issue, estimated that at least 1 million wills would have to be reviewed or rewritten. The VAT on the £250 million or so of professional fees incurred in reviewing all those wills would have outstripped the mere £15 million that the Government expected to raise from what must have been one of the least cost-effective tax proposals ever made.
The Paymaster General dismissed the measured concerns that I expressed about these matters on the Floor of the House by saying that I did not know what I was talking about. Despite that robust defence, in Committee the Government then proceeded to table no fewer than 33 amendments to schedule 20 in an attempt to mitigate the serious problems about which I and so many others had protested.
The key changes were to reduce the new tax penalty imposed on trusts where property does not vest until the age of 25, and to restore the spouse exemption for trusts set up in wills. The Chancellor’s retreat continues today, with another 27 Government amendments to schedule 20. I welcome Government amendmentNo. 75 in particular, which more or less completes the Government’s U-turn on the spouse exemption and covers the point made in our amendment No. 59. The Government dismissed my arguments on the point in Committee, but they seem now to have conceded that successive life interest for spouses should not always fall under the new regime set out in schedule 20.
John Bercow (Buckingham) (Con): Will my hon. Friend give way?
Mrs. Villiers: Certainly.
John
Bercow: I am very grateful to my hon. Friend, and I look
forward to supporting the amendments and
new clauses that she and my other hon. Friends on the Front Bench have
rightly tabled. At the outset of her remarks, she said that the
Chancellor had “slipped out” these proposals. It may be
that the right hon. Gentleman expatiated eloquently and at length on
these matters in his Budget speech, but I do not recall him doing so.
Will my hon. Friend refresh my memory as to the correct chronology of
events?
Mrs. Villiers: My hon. Friend is correct. The Chancellor did not choose to refer in his Budget speech to these radical proposals, which have been called the most significant changes to inheritance tax for a generation.
I also welcome Government amendment No. 89, which effectively puts into effect our amendments Nos. 54 and 55 and removes serious technical obstacles that would have prevented trustees from making appointments under trusts set up in discretionary wills. I am grateful for the sympathetic approach to the matter adopted by the Paymaster General in Committee, which has been confirmed in the Government amendment. However, some very serious problems in respect of schedule 20, and the Chancellor’s proposed new inheritance tax charges on trusts, remain unsolved.
New clause 2 and the other Opposition amendments in the group focus on four main areas: technical issues relating to trusts for young people; disability; life insurance, and trusts arising from relationship breakdown.
First, amendment No. 56 would correct an anomaly in proposed new section 71D, which was introduced in Committee and which reduces the harsh impact of schedule 20 in relation to existing accumulation and maintenance trusts. The proposed new section introduces a new taxation scheme allowing trustees to opt into a regime under which inheritance tax at 4.2 per cent. is paid if a vesting age of 25 is retained. However, if a beneficiary under such a trust has obtained an interest in possession since Budget day, it seems that the new taxation rating cannot apply because the trust entered the relevant property regime before steps could be taken to comply with proposed new section 71D. Thus, there is no opportunity to convert into a form of trust that would satisfy the new rules.
If the Paymaster General will not accept our amendments, I hope that she will at least clarify the matter. In Committee, she maintained that proposed new section 71D had been tabled merely to clarify what had always been the Government’s intention. If that is so, it seems very unfair to penalise people who are victims of the Government’s admitted failure to make their intentions clear on publication of the Bill.
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