Localism Bill

My Lords, I apologise at this time of night, but I am going to take a little time both in responding to the first amendment and in going through the amendments that are down in my name. In Committee we discussed a lot the concerns of noble Lords in relation to some aspects of the provisions within these clauses, and I agreed to take those away and consider them further. I do not think that the noble Lords were on the whole opposed to the principles of the provisions; they were just concerned about the implementation. There were particular concerns that the provisions could act as a disincentive to landowners who are currently making their land available for community use, and could impact on their ability to dispose of their land to family members or through inheritance. There were also concerns that the provisions could have a detrimental impact on the sale of going-concern businesses, and that the provisions were open to vexatious nominations from individuals with no real desire or ability to purchase the asset in question. There were also calls for greater certainty to be put on the face of the Bill regarding the definition of an asset of community value and the length of the moratorium periods. We have been working over the Summer Recess with interested parties to address these concerns, and I am therefore going to beg to move a series of amendments that will provide greater certainty and clarity and will minimise any unintended consequences. As I said, I hope the House will forgive me for taking a little time to go through these. As for the amendments proposed by the noble Lord, Lord Brooke, I say now that I do not think that the response I have got is adequate, and I am hoping that by the time I get to the end of what I am saying the Box will have provided an answer for me. If not, I am going to have to write to him. In summary, these amendments will place a definition of community asset on the face of the Bill; clarify that individuals will not be able to nominate assets to go on the list; set out a number of exempted disposals, including transfers of land within families and by inheritance, and business-to-business going-concern sales; put the length of the moratorium periods on to the face of the Bill; and remove various delegated powers. We placed in the Library a policy statement which we sent to everybody on 8 September and which explains these amendments and sets out our thinking about the content of the regulations in more detail. Perhaps I may pass over the amendments of the noble Lord, Lord Brooke, for the moment. I hope that I get an answer that is nearer to what he was dealing with than the one that I have at the moment. I hope he will forgive me for that. I turn to the government amendments. Amendments 202B and 202F place a definition of asset of community value on the face of the Bill. A building or other land is to be defined as an asset of community value if the following requirements are met: first, if its actual current use furthers the social well-being and interests of the local community, or a use in the recent past has done so; secondly, that that use is not an ancillary one, such as where farmland is used for the annual village bonfire; and thirdly, it is realistic to think that there will be a use which furthers social well-being in the future, whether or not this is exactly the same as existing use. This means that for an asset which already furthers social well-being or interest, it must be realistic that it will continue to do so. And for one which did so in the recent past, it must be realistic to think that there will be community use again within the next five years—and that is the period for which a listing would last. Amendment 202F clarifies that social interests can include cultural, recreational and sporting interests. Each local authority operating the scheme will refer to this definition when deciding whether a building or other land should be listed as an asset of community value, and in the light of these amendments we are proposing to remove, through Amendment 202E, the power for the Government to set out matters that local authorities must take into account in deciding whether a nominated asset should be listed. These amendments are in line not only with concerns that noble Lords have raised but, importantly, with the results of our recent consultation exercise, in which 80 per cent of respondents agreed that local authorities should have the power to decide what constitutes an asset of community value based on a broad definition and the list of exclusions. I also remind the House that we intend to exclude residential premises and associated land from listing unless it is integral to an asset such as a pub or a shop. We will also exclude land of operational use, such as major transport networks. That will be set out in regulations. In light of what the Government have brought forward, I hope my noble friend Lord Brooke will be content to withdraw his amendment when I get around to it. Amendments 202G to 202K move on to the nominations process. It is important that the list of assets of community value reflects the buildings and land that the community itself recognises as benefiting its social well-being. We want to ensure that those nominating an asset for listing do so on behalf of their community, rather than on an individual’s whim. Therefore, we have tabled government Amendments 202G, 202H and 202J, which will clarify Clause 77. They replace a delegated power with a provision in the Bill, which states that only voluntary or community bodies with a local connection will be eligible to make community nominations, in addition to parish councils in England and community councils in Wales. There will be a need to define these terms to ensure that eligibility is restricted only to local groups who are concerned with the social well-being of the neighbourhood. Therefore, Amendment 202K will extend the existing delegated power in Clause 77(4) to define ““voluntary or community body”” and provide conditions to be met to demonstrate local connections in regulations. I come to Amendments 202L, 203 and 203A to 203C. Amendment 203 removes the power to make regulations in Clause 79(5) on the giving of written notice of an asset’s inclusion on or removal from the list, including how to do so when the local authority does not have a name or address. Amendment 202L provides, instead, that where it does not appear ““reasonably practicable”” for the local authority to give the written notice, it must take reasonable alternative steps to bring the notice to the person’s attention. Amendment 203B removes the power to make regulations in Clause 81(4) on the form and content of the list of unsuccessful community nominations. Instead we will make clear with Amendment 203A that local authorities may remove an unsuccessfully nominated asset from the list after five years if they so wish. While it is on the list of unsuccessful assets, the entry must give reasons for it not being included as an asset of community value. Amendment 203C removes the power in Clause 82(2) to make regulations on how the lists of community assets and unsuccessfully nominated assets are published without any replacement provisions. Removing these delegated powers will provide more certainty about how the scheme will operate and recognises that local authorities do not need prescription from central government. Turning to Amendments 203D and 203H, in Committee I indicated the types of disposals that we intended to exempt from these provisions, including business-to-business transactions where the existing business is sold as a going concern and the disposal of listed land that forms part of a larger estate. The purpose of these amendments is to ensure that the provisions do not act as a disincentive to landowners who already offer their land for the use of the community, in that they do not have an adverse impact on thriving business. Amendment 203D sets out some of the exempt relevant disposals in the Bill. These are: disposals made as a gift; disposals made due to the inheritance of the land; disposals between members of the same family—the definition of ““family member”” that we are proposing is set out in Amendment 203H; disposals where only part of the land has been listed as an asset of community value; disposals of businesses as a going concern; disposals occasioned by the resignation or death of a partner in a firm of trustees of a trust; and transfers between trustees, a trust and a settler, and between a trust and a beneficiary. We are retaining the power to specify further exempt disposals in regulations, and we intend to add further detail in regulations with regard to disposals of part-listed land. We will continue to work with key interested parties to develop the contents of the regulations. A full list of the exemptions that we propose to make through regulations is contained in a policy statement which I laid in the House Library on 8 September. In developing this list we have listened to the views of interested parties and those who responded to consultation. Amendments 203E to 203G and Amendment 203J set out the timeframes that will apply, and offer reassurance that they cannot be changed except by further primary legislation. A number of noble Lords have made a strong case, both inside and outside the Chamber, for the value of certainty in relation to the length of these periods. Therefore, we propose to set the following moratorium periods: six weeks for the interim period during which a community group can decide to trigger the full moratorium; six months for the full period of the moratorium; and 18 months for the protected period during which property owners can sell the asset without being subject to another moratorium. These periods will all run from the date on which the local authority is notified of the intention to sell a listed asset. In the public consultation there was a clear consensus for an interim moratorium of six weeks and a protected period of 18 months. In addition, just over half of those who responded supported a full moratorium period of at least six months. We have heard compelling evidence from the voluntary and community sector that six months is the minimum realistic time needed to raise funding and to put a business case together in order to make a bid. In addition, Amendment 203J removes the delegated power to prescribe moratorium lengths in regulations. I hope noble Lords will recognise that we have taken the necessary steps to address concerns raised at Report, and that the amendments we have proposed provide greater clarity with regard to these provisions. I hope, therefore, that noble Lords will feel free to support them. If I may, I can now respond to the noble Lord, Lord Brooke. The definition in Amendments 202B to 202F sets out that the asset must already be of a community value, currently, or in the recent past. The reference to potential use is to allow community groups to develop options for future use of such buildings. The definition covers only social interest and well-being. It does not include economic considerations. We have also sought to exempt business-to-business going-concern disposals. I hope that answers the noble Lord’s concerns—I think he was talking about land that was also owned by business and clearly there, unless the asset is or has been assessed as being of community value, it would be excluded. I expect that the noble Lord, Lord Cameron, will want to speak to his amendment, Amendment 203ZA, before we move on to the debate.