My Lords, I start by addressing Amendments 415, 416 and 417 in the name of the noble Baroness, Lady Taylor of Stevenage. Clause 176 sets out the criteria and conditions that must be met before high street or town centre designation can be made. Local authorities are uniquely placed to make this designation based on their deep knowledge of their area and we must empower them to do so. The needs of both local people and local businesses may have also been considered by local authorities in the development of their local plans and regeneration programmes. These amendments add complexity and burdens for local authorities, so the Government are not able to support them, or Amendment 437, which is consequential on 415 and 417.
Amendment 418 in the name of the noble and learned Lord, Lord Etherton, seeks to clarify what is meant by “occupied” for the purpose of assessing the vacancy condition. Clause 178(4) is aimed at excluding occupation by trespassers or property guardians for
the purpose of this assessment. Amendment 418 would refine that position so that this type of occupation can count where the landlord is taking steps to remove such occupiers through possession proceedings. The Government see these exclusions as necessary to ensure the policy aims of filling commercial premises for high street uses. We also consider it reasonable to expect landlords to keep their premises secure to prevent squatters, or to take court action where necessary. The Government recognise that there may be more complicated cases of trespassers, but we also consider that many local authorities are unlikely to conduct a high street rental auction on a property that has such complications. While the Government do not feel able to support this amendment at this time, I would add that we do recognise that there may be many challenges caused to landlords by trespassers. We trust local authorities to use these permissive powers sensibly where there are complications caused by certain types of trespassers. I have listened to the noble and learned Lord, and I will give his amendments further consideration.
Amendments 419 and 424, in the name of the noble Baroness, Lady Hayman of Ullock, seek to remove the Henry VIII powers for the Secretary of State to alter the circumstances of vacancy, and the flexibility within grounds of appeal, which are set out in Schedule 16. This power may be needed in future in the light of experience in operation: for example, to alter the vacancy period to ensure that it is targeting the right premises and can respond to changing market conditions; or, in the case of grounds of appeal, where there may be a need to increase the safeguards available to landlords, or to revise these grounds where they are found to undermine effectiveness. We appreciate the importance of parliamentary scrutiny regarding the grounds of appeal, and any amendment will be subject to the affirmative procedure. In the light of that, the Government are not able to support this amendment.
Amendment 420 amends the local benefit condition in Clause 179 so that a property can be let only if it supports regeneration. Currently, the local benefit condition will be satisfied if the local authority considers that occupation of the premises for a suitable high street use would be beneficial to the local economy, society or environment. The local benefit condition is framed by reference to aims that are usually associated with regeneration. Another statutory example demonstrating the use of similar language is Section 226 of the Town and Country Planning Act 1990. We wish to avoid introducing further considerations for local authorities, inadvertently narrowing the scope; so the Government cannot support this amendment.
Amendments 421 and 423 reduce the period after which an initial letting notice would expire and the period of time after which a final letting notice can be issued. We consider that making the process too quick will place an unreasonable strain on local authorities that are looking to exercise these powers. We also do not consider that these reduced timescales will provide the landlord with a reasonable amount of time to let the premises themselves and, in appropriate cases, to work with the local authority, increasing the risk that high street properties go through the auction process unnecessarily.
Amendment 422 would prevent landlords from transferring premises between related entities while an initial letting notice was in force. An initial letting notice is not affected by any change in landlord, as made clear by Clause 199(7). We do not want high street rental auctions to prevent landlords from selling their interest in the property, provided that the initial letting notice continues to bind.
Amendment 426, in the name of the noble Earl, Lord Lytton, would add a further ground for appeal against the use of a high street rental auction. Schedule 16 sets out the grounds on which a landlord can appeal against a final letting notice. The amendment would require local authorities to consider whether a landlord had taken reasonable steps to rent the property before undertaking a high street rental auction, preventing them from taking place where a landlord has done so. The amendment would introduce a complex test which could place significant burdens on a local authority and would likely discourage use and lead to it becoming ineffective. There is already a wide range of grounds for appeal, which ensures fairness for landlords. The amendment also raises matters that should feed into a ground of appeal, such as planning. These matters are already being given careful consideration by the Government. In the case of planning, the Government are currently consulting on extending permitted development rights.
Amendment 427 would require that regulations relating to the rental auction process were laid within 90 days of Royal Assent. Clause 188 sets out the principles of the rental auction process. Significant detail in relation to the process will need to be provided, which will be more appropriately dealt with through regulations. While we will make regulations as soon as possible, it is not possible to commit to a timeline of 90 days because the regulations will be informed by extensive engagement with the sector, which will then need to be reflected in the drafting of those regulations. The Government are therefore not able to support this amendment.
On Amendment 429, we consider it more appropriate to provide landlords with a general entitlement to seek compensation for damage where local authorities have exercised their power of entry and to let the Upper Tribunal decide whether there are any circumstances affecting the landlord’s entitlement to compensation, rather than providing specific exemptions. That is the approach adopted in other legislation, such as the compensation provisions in Section 176 of the Housing and Planning Act 2016, which relate to the power to enter and survey land. The Government do not feel able to support this amendment.
On Amendment 430, I assure noble Lords that high street rental auctions are being designed to minimise costs incurred by local authorities by streamlining the process and through distributing the costs across landlords and tenants. We agree with the intention of the amendment, which is why the high street rental auction consultation contains questions relating to the distribution of the associated costs and details of a standardised lease, and it would be inappropriate to pre-empt the result of the consultation. We are also making up to £2 million of funding available for support with the costs of rental auctions, and full
details of this will be announced in due course. The Government are therefore not able to support this amendment.
On Amendments 431, 432, 433, 434, 435 and 436, the measures in the Bill seek to support lively high streets with activity that attracts people and businesses and avoids long-term vacancies, complementing existing government support that directly addresses the concerns raised in these amendments. There is support available to regenerate high streets, including £3.6 billion-worth of investment in the towns fund, a £4.8 billion investment in the levelling-up fund and a £2.6 billion investment in the shared prosperity fund. That is together with the £13.6 billion support package, announced in the Budget this year, to protect ratepayers facing bill increases over the next five years.
The High Streets Task Force continues to provide essential support to local leaders, with 123 local authorities having received expert advice in topics such as place-making and planning. I recognise that these amendments highlight key issues faced by many of our high streets, but I hope I have provided enough reassurance that these concerns are, or will be, addressed through current government actions.
Finally, in response to the noble Baroness, Lady Fox—
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