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Written Statements

Monday 9 February 2015

Business, Innovation and Skills

Insolvent Businesses (Supply of Essential Services)

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): Rescuing struggling but viable businesses out of formal insolvency helps save jobs and improves the prospect of creditors recovering some of what they are owed. The Enterprise and Regulatory Reform Act 2013 introduced new powers to help insolvency practitioners secure essential IT and utility supplies to keep a business going while it is being rescued.

I have today laid an order to ensure that insolvency practitioners can retain the essential supplies they need to save viable businesses. There will be an impact on suppliers in the IT and utility sectors but I believe that by providing strong safeguards to ensure the supplier can have confidence they will be paid, we will ensure that the benefits of this measure far outweigh the costs. In particular:

The supplier will be able to seek a personal guarantee from the insolvency practitioner at any time to give them more certainty that the supplies will be paid for.

The supplier will be able to apply to court to terminate their contract on the grounds of ‘hardship’.

Guidance will be issued to insolvency practitioners to urge them to make contact with essential suppliers at the earliest possible time following their appointment to discuss their needs in relation to supply, to ensure that undue costs are not incurred.

The Government’s aim remains to ensure that a balance is struck between ensuring the rescue of viable businesses against the obligations placed on those suppliers that will be impacted by the order. The proposed changes will have effect in relation to contracts made after 1 October 2015.

The Government consulted on how those new powers should be exercised and whether the safeguards proposed were adequate to ensure that those essential suppliers bound to supply an insolvent business would be paid.

A total of 31 responses were received and I am very grateful for the time those respondents took to provide constructive feedback to the consultation. Almost all respondents expressed their support for the aims of the proposals with some suggesting ways to make the safeguards more effective. The draft order was amended in the light of comments received.

A summary of the responses received to the consultation can be found at www.gov.uk/government/organisations/insolvency-service.

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Communities and Local Government

Sharing Economy (London)

The Minister of State, Department for Communities and Local Government (Brandon Lewis): I would like to provide the House with further details of the coalition

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Government’s intentions for the reform of legislation on short-term letting of residential accommodation in London, through clause 33 of the Deregulation Bill.

The Greater London Council (General Powers) Act 1973 provides that the use of residential premises for temporary sleeping accommodation for less than 90 consecutive nights in London is a change of use, for which planning permission is required. London residents face a possible fine of up to £20,000 for each ‘offence’ of failing to secure planning permission.

There are currently thousands of London properties advertised on websites for use as short-term accommodation. However, each is potentially in breach of Section 25 as it stands. The current outdated legislation is inconsistently enforced, leading to confusion and uncertainty for householders, as was apparent during the 2012 Olympics. These laws do not operate outside London, without any visible adverse effect. We want to update these laws to help boost the sharing economy, in light of the popularity of websites like Airbnb and Onefinestay to help people rent out their property on a short-term basis.

My Department has now published a policy document which responds to our review of property conditions in the private rented sector discussion document, and sets out the Government’s approach to modernising this outdated legislation, so that residents can allow their homes to be used on a short-term basis without unnecessary red tape. The Government have carefully considered the views put forward in response, and in the debates in both Houses, and in bringing forward changes we will also offer safeguards to protect London’s housing supply and residential amenity.

The Government want to enable London residents to participate in the sharing economy, and enjoy the same freedom and flexibility as the rest of the country to temporarily let their homes, without the disproportionate burden of requiring planning permission. It will provide income to householders who want to rent out their home—for example, if they themselves go on holiday. I believe this will be popular with London residents, as evident by the support for our planning reforms to make it easier for householders to rent out their spare parking spaces. A further benefit will be to increase the amount of competitively priced accommodation available for tourists to rent, promoting economic growth from tourism, as well as reducing the amount of under-used and otherwise empty property in London. These reforms will primarily benefit home owners; the changes will not affect any existing clauses in tenancy contracts which prohibit sub-letting by tenants.

In order to address the issues raised by the consultation, the Government intend to restrict short-term letting of residential premises to a maximum of 90 days in a calendar year, so that properties cannot be used for short-term letting on a permanent basis throughout the year. In addition, the Government also intend to put in place additional safeguards through regulations. These will include that to benefit from the new flexibility the properties must be liable for council tax (thereby excluding business premises); that the new flexibility can be withdrawn following a successful enforcement action against a statutory nuisance, and that in exceptional circumstances local authorities will be able to request that the Secretary of State agrees to small localised exemptions from the new flexibility, where there is a strong amenity case to

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do so. These are practical concessions that I hope will illustrate that we have carefully listened to the points made by parliamentarians in both Houses in recent months.

The policy document has being published on my Department’s website and has been placed in the Library of the House.

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Education

School Estate (Investment)

The Secretary of State for Education (Nicky Morgan): Today, my right hon. Friend the Minister for Schools and I have announced over £6 billion of investment to improve the condition of the school estate. Investing in our school buildings is a key part of the Government’s long term economic plan to secure Britain’s future. It will help to ensure children across the country can enjoy schools which are safe, good quality and fit for learning, and it will help to build a fairer society.

First, we will invest around £2 billion in rebuilding and major refurbishment projects, to address the needs of school buildings in the very worst condition. We can confirm today that 277 schools will have the condition need in one or more of their buildings addressed under the second phase of the Priority School Building Programme. As a result, thousands more pupils will see their learning environments transformed. This is in addition to the 260 schools being rebuilt or having their need addressed under the first phase of the programme.

Secondly, we are announcing today over £4 billion worth of allocations to schools, local authorities, academy trusts and voluntary aided partnerships to fund the improvement and maintenance of our schools. For the first time in years, we have reliable information on the condition of school buildings from the Property Data Survey—the most comprehensive survey of the school estate ever undertaken. All of those responsible for schools will now receive funding in proportion to the size and condition of their schools. Where necessary, we are providing additional support to those responsible for schools with the most severe condition need.

We know that being taught in school buildings in poor condition can have an adverse effect on pupil attainment. The reforms we are announcing today are a major step towards ensuring that all children have access to a learning environment which is safe and fit for purpose, no matter where they live.

We recognise that good investment decisions require certainty and stability. This is why the funding we have announced today will cover, for the first time, three years, from 2015-16 to 2017-18, giving local authorities, academy trusts and voluntary aided partnerships some much-needed certainty. They can now plan effectively and make good strategic investment decisions that deliver the best possible value for their schools.

Investment decisions have a direct and significant impact on local schools and their pupils and it is important that those decisions are open and transparent. We want to do more to empower local schools and communities to engage with and hold local decision-makers to account for their investment decisions. So we are

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announcing today that we will collect information from all bodies responsible for the maintenance of the school estate on how they have used their funding. The information will be simple, high-level and easily accessible to the public.

Today’s announcements bring us much closer to delivering the aims of Sebastian James’ Review of school capital—to ensure that our capital investment in the school estate provides excellent value for money and, ultimately, gets money to those schools and pupils that need it most.

Details of today’s announcements will be sent to those who will be receiving funding or investment and be published online at: http://www.gov.uk. Copies will be placed in the House Library.

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Foreign and Commonwealth Office

Foreign Affairs Council

The Minister for Europe (Mr David Lidington): I attended the extraordinary Foreign Affairs Council (FAC) on 29 January in Brussels. The FAC was chaired by the High Representative of the European Union for Foreign Affairs and Security Policy (HRVP), Federica Mogherini.

The conclusions adopted can be found at:

http://www.consilium.europa.eu/en/press/press-releases/2015/01/council-conclusions-ukraine.

The HRVP convened an extraordinary meeting of the FAC to discuss Ukraine following the shelling of Mariupol on 24 January and the intensifying violence in eastern Ukraine. The FAC condemned the recent escalation of fighting and reiterated the urgent need for all parties to fully assume their responsibility and to ensure the full implementation of the Minsk agreements, which remain the basis for a sustainable political solution to the crisis.

I underlined the scale of the tragedy at Mariupol, the largest loss of civilian life during the crisis bar MH17. I emphasised that diplomatic efforts must continue and that Russia had sought to change facts on the ground. The EU must respond to deter further escalation.

The FAC agreed to extend until September 2015 the restrictive measures targeting persons and entities for threatening or undermining Ukraine’s sovereignty and territorial integrity (adopted in March 2014 and subsequently updated). The HRVP and Commission were tasked to present within a week a proposal on additional listings for decision at the FAC on Monday 9 February. I emphasised that this should include preparing broader economic measures.

Ministers asked that further preparatory work be undertaken by the Commission and the EEAS on any appropriate action aimed at ensuring a swift and comprehensive implementation of the Minsk agreements. In addition, the FAC tasked the HRVP, in co-operation with member states and EU institutions, to further improve strategic communication in support of EU policies and to explore options for the establishment of a dedicated communications team to lead these actions.

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Home Department

Immigration Detention

The Secretary of State for the Home Department (Mrs Theresa May): I have today commissioned an independent review into the Home Office policies and operating procedures that have an impact on immigration detainee welfare. Immigration detention plays a key role in helping to secure our borders and in maintaining effective immigration control.

The Government believe that those with no right to be in the UK should return to their home country and we will help those who wish to leave voluntarily. However, when people refuse to do so, we will seek to enforce their removal, which may involve detaining people for a period of time. But the wellbeing of those in our care is always a high priority and we are committed to treating all detainees with dignity and respect.

I want to ensure that the health and wellbeing of all those detained is safeguarded. Following the work I commissioned into the welfare of people with mental health difficulties in police custody, I believe it is necessary to undertake a comprehensive review of our policies and operating procedures to better understand the impact of detention on the welfare of those in immigration detention. The purpose of this wider-ranging review is to consider the appropriateness, and application, of current policies and practices concerning the health and wellbeing of vulnerable people in immigration detention, and those being escorted in the UK. I am committed to considering any emerging findings made by the review and to taking action where appropriate.

I have asked Stephen Shaw CBE, the former Prisons and Probation Ombudsman for England and Wales, and a widely respected expert in this field, to lead the review. The terms of reference can be found on the Home Office website and copies will be placed in the Libraries of both Houses.

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National Crime Agency

The Secretary of State for the Home Department (Mrs Theresa May): The Crime and Courts Act 2013 (National Crime Agency and Proceeds of Crime) (Northern Ireland) Order 2015, was laid before Parliament on 29 January 2015. The Order extends relevant ‘NCA provisions’, ‘relevant civil recovery provisions’ and ‘relevant investigation provisions’ to enable the National Crime Agency to operate in Northern Ireland with full operational powers, including the ability to recover criminal assets, including the ability to request the recovery of assets overseas. The Order reflects a package of proposals that will create clear, transparent and significant local accountability that the Northern Ireland political parties have sought. They are the result of extensive work between the Home Office, the Department of Justice for Northern Ireland, the Northern Ireland Office, the National Crime Agency and the Police Service of Northern Ireland. Following negotiations, led by the Northern Ireland Justice Minister, I am extremely pleased to inform the House that on 3 February 2015, the Northern Ireland Assembly gave its consent to the making of that Order.

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The Order reflects a package of measures to ensure police primacy, accountability and additional oversight of the NCA’s use of covert techniques in Northern Ireland. The consent given by the Assembly reflects its support for the Government’s aim that the people of Northern Ireland should benefit from a fully operational National Crime Agency, supporting the efforts of PSNI. I would like to put on record my thanks to Assembly members for their support.

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Northern Ireland

Supplementary Estimate 2014-15

The Secretary of State for Northern Ireland (Mrs Theresa Villiers): Subject to parliamentary approval of any supplementary estimate, the Northern Ireland Executive Departmental Expenditure Limit (DEL), net of depreciation, is increased by £155,587,000 from £10,829,801,000 to £10,985,388,000.

Within the total DEL change, the impact on resources and capital is summary opening position set out in the following table:

The change in the NIE DEL are set in the table below:

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The effect of the above changes to DEL and AME is to increase the cash grant payable to the Northern Ireland Consolidated Fund by £285,500,000 to £14,905,200,000.

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Scotland

Supplementary Estimate 2014-15

The Secretary of State for Scotland (Mr Alistair Carmichael): Subject to parliamentary approval of the necessary supplementary estimate the Scottish Government’s DEL net of depreciation and impairments will be increased by £598,482,000 from £28,708,902,000 to £29,307,384,000. Within the total DEL change, the impact on resources and capital is set out in the following table:

The increase in the Scotland DEL takes account of the following adjustments to the Scottish Government provision amounting to increases of £690,682,000:

Increase of Barnett consequentials—council tax freeze grant of £32,538,000 (Resource DEL);

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Increase of £2,324,000 for autumn 2014 statement Barnett consequentials (Resource DEL);

Budget exchange transfers of £142,243,000 (Resource DEL), £42,200,000 (Resource DEL depreciation) and £34,805,000 (Capital DEL);

Transfer from the Department for Culture Media and Sport Energy and Climate Change of £70,830,000 in respect of Urban Broadband (Capital DEL);

Transfer from the Department of Energy and Climate Change of £15,101,000 in respect of the Energy agreement (Capital DEL);

Transfer from the Department of Energy and Climate Change of £2,495,000 in respect of Energy efficiency (Capital DEL);

Transfer from the Department for Transport of £1,121,000 for Dundee-London public service obligation (Resource DEL);

Transfer from the Department for Work and Pensions of £1,568,000 for fit for work (Resource DEL);

Transfer from the Department for Work and Pensions of £600,000 for single fraud investigation service (Resource DEL);

A transfer for cash management rebate of £379,000 (Resource DEL);

A transfer for the coastal communities fund of £4,083,000 (Resource DEL);

A transfer of non-cash costs for the higher and further education sector of £50,000,000 (Resource DEL depreciation);

A transfer for the Queensferry Crossing: re-payment of prepayment (Stage 2) of £24,000,000 (Capital DEL);

A transfer for the RDEL adjustment: VAT on legal services of £184,000 (Resource DEL);

A reserve claim of £847,000 in respect of the G8 policing costs (Resource DEL);

A reserve claim of £832,000 in respect of the Blue Lights charities (Resource DEL);

A reserve claim of £5,000,000 in respect of the Glasgow School of Art (Resource DEL);

A reserve claim of £2,900,000 in respect of the utilisation of Scottish cultural collections (Capital DEL);

A reserve claim of £300,000,000 in respect of the private finance deals coming on balance sheet (Capital DEL);

A switch of £189,000,000 from resource DEL to capital DEL (Resource DEL);

A switch of £189,000,000 from resource DEL (Capital DEL);

A transfer of £5,000,000 for the Shetland Isles (Capital DEL).

The overall effect of these changes is to increase the grant to the Scottish Consolidated Fund by £201,031,000.

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Wales

Supplementary Estimate 2014-15

The Secretary of State for Wales (Stephen Crabb): Subject to parliamentary approval of any necessary supplementary estimate, the Welsh Government’s (WG) departmental expenditure limit (DEL) net of ring-fenced depreciation and impairments will be increased by £157,433,000 from £15,170,933,000 to £15,328,366,000.

The following changes have been made to the Welsh Government’s departmental expenditure limit:

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Devolved Administration Budget Exchange addition of £98,244,000 (£65,733,000 resource, £16,944,000 ring-fenced depreciation and £15,567,000 capital);

A claim on the Reserves for the following:-

Barnett Consequentials for 2014-15 Council Tax freeze for £18,819,000

Blue Lights Charities for £481,000

Coastal Communities Fund for £1,550,000

NATO Costs for £900,000

Structural Funds in West Wales for £3,807,000

Student Loans of £47,000,000;

A DEL adjustment to VAT on legal services of £-106,000;

A budget transfer from the Department of Energy and Climate Change of £1,456,000;

A budget transfer to the Department for Works and Pensions of £-1,000,000;

A budget transfer from DCMS in respect of Broadband UK for £31,275,000 (capital);

Autumn Statement: Barnett Consequentials of £1,344,000;

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Business rate Barnett Consequentials of £17,423,000;

A cash management rebate of £184,000.

Within the total departmental expenditure limit (DEL) changes, the impact is set out in the following tables:

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The net effect of these and other changes is to increase the grant payable to the Welsh Consolidated Fund by £315,171,000 from £13,376,858,000 to £13,692,029,000. Full details are set out in the table below.

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