First, may I send my best wishes to the right hon. Member for Old Bexley and Sidcup (James Brokenshire)? When he was Secretary of State, he and I discussed our respective illnesses, and I really feel for him and his family at this very difficult time.
The Housing, Communities and Local Government Committee has discussed the issue of cladding remediation and fire safety works on many occasions. In June, we made it clear that
“residents are in no way to blame”
for defects from cladding
“and it is our view that they should bear none of the cost of remediation.”
We repeated those sentiments in our prelegislative scrutiny of the Building Safety Bill. Again, we said:
“The Government must recommit to the principle that leaseholders should not pay anything towards the cost of remediating historical building safety defects…for which they were not responsible.”
That is very clear.
The question is who should pay: the initial developer—the Government could help to co-ordinate action against them—the taxpayer, of course, or the industry as a whole? Unfortunately, the amendments tabled by the hon. Member for Stevenage (Stephen McPartland)—I very much agreed with the sentiments of his comments—and by the Labour Front Benchers seek to place responsibility on the freeholder.
For reasons that the Minister gave, those amendments cut across the contractual relationship between freeholder and leaseholder. The hon. Member for Thirsk and Malton (Kevin Hollinrake), who raised this issue a number of times in the Select Committee when he was a member, showed that freeholders are often quite small companies that, where they were not responsible for the initial development, simply collect ground rent. If faced with the cost of remediation, they would simply walk away. Those amendments will not get the work done. That is the fundamental issue. We want to see it done without leaseholders having to pay for it.
Turning to who should pay, certainly, the Government have put on the table £3.5 billion in addition to the £1.6 billion, but that does not include anything other than cladding remediation. All the other works, which for many leaseholders are as substantial in cost as cladding remediation, are not covered, and of course that funding does not cover buildings below 18 metres.
The Government have come up with a loan scheme for buildings below 18 metres, but that places the loan charge on the freeholder. Surely, we are back to the same problems: if we cannot interfere with the contractual relationship between the freeholder and the leaseholder—according to the Minister, with respect to the amendments before us from the Opposition and the hon. Member for Stevenage, we cannot—then surely that is a problem for the Government’s loan scheme too, and if freeholders are going to walk away from a direct charge on properties, as the hon. Member for Thirsk and Malton said, they will walk away from a loan too. That is a real problem that the Government have to address.
I welcome that the Government are going to introduce a levy and a financial contribution from the industry, but we appear to be in a position where they cannot tell us whether the money raised from the levy will be in addition to the £3.5 billion or whether it will be taken from the £3.5 billion—in other words, that the Treasury will get some of that money back. That, to my view, would be wrong. The Minister is going to come to the Select Committee on 8 March; hopefully, we will be a bit wiser after that visit.
Finally, we have talked a lot about leaseholders, but what about social housing tenants? The National Housing Federation says that there is £10 billion of remedial work to be done in the social housing sector, and more for council housing properties, yet the only automatic right that social housing landlords have to any funding is for help with the removal of ACM cladding; everything else they are likely to have to pay for. Tenants are going to have to pay through rent increases, cuts to future maintenance or cuts to the house building programme, none of which is acceptable. So we have a perverse situation where the social housing landlord, as a freeholder, could be ensuring that tenants have to pay for the remediation of properties next door that have been subject to the right to buy. That cannot be right.
All these matters need resolving. We hope that the Minister does so on his visit to the Select Committee.