Oral - Proposed National Assembly for Wales (Legislative Competence) (Housing and Local Government) Order 2010

I am delighted to lay before the National Assembly a new proposed legislative competence Order in the areas of housing and local government. This proposed LCO is beginning its passage at a pivotal moment for housing policy in Wales. We have consulted widely upon the new housing strategy, ‘Sustainable Homes’, and we shall debate a final version of the strategy in Plenary in the new year.

Many statutory functions in relation to housing are devolved to the Welsh Ministers, but, as the Assembly does not currently have the legislative competence, the Government cannot propose legislation that would enable more coherent action to be taken. We have looked across the strategy to see where legislative competence for the Assembly will assist the most. We have concluded that we should seek competence in relation to two broad themes: social housing and meeting the accommodation needs of vulnerable people.

I would like to provide some explanation of each of the eight matters in the proposed LCO. First of all, the numbering of the matters begins at 11.2 because matter 11.1 is within the LCO proposed by Ann Jones on domestic sprinklers, which is currently before Parliament.

Matters 11.2 and 11.3 in the proposed LCO would provide competence in relation to social housing providers and relevant social housing bodies. The competence proposed will encompass all bodies that provide social housing or that have functions relating to social housing. These matters would enable the Assembly to consider legislation relating to the regulation of social housing providers, or the allocation of social housing. The Government is working with partners in the housing sector to create a new regulatory framework, and the proposed LCO will enable us to consider options without being constrained only to powers set out in existing legislation.

Matter 11.4 would provide competence in relation to tenure. There are differences between secure tenancies held by tenants of local authorities, and assured tenancies normally held by tenants of registered social landlords. The differences can be difficult to justify, especially to tenants asked to move from one type of tenancy to another during a stock transfer. Competence would allow the Assembly to consider legislating in this area, and could include the reform of secure and assured tenancies.  

Matter 11.4 also refers to other arrangements under which social housing is provided. This ensures that the Assembly will have competence to consider legislation regarding social housing arrangements, such as new schemes for low-cost home ownership.

Matter 11.5 relates to disposals of land, and would give the Assembly competence to legislate in relation to the right to buy, the right to acquire or the preserved right to buy and other disposals of land. Given the broad executive powers that Assembly Ministers have over disposals and over social housing more generally, we believe that the Assembly should be able to have a role in determining whether any changes are needed to current legislation for Wales. As a Government, we remain supportive of tenants’ home ownership aspirations, but we also need to ensure that statutory rights in this area do not conflict with the needs of others for social housing. 

Matter 11.6 would enable the Assembly to consider legislating in respect of housing-related support. Many services of this type are currently provided through the Supporting People programmes—for example, supporting elderly people in sheltered accommodation, or assisting people with mental health difficulties to live independently. A future Measure could, for instance, provide greater consistency in delivery across Wales.

Matter 11.7 would enable the Assembly to consider legislation relating to providing sites for Gypsies and Travellers. The Assembly Government is consulting on a new Gypsy and Traveller strategy, which sets out the proposed policy framework and incentives to aid local authorities to deliver appropriate sites. It is important, therefore, to take the opportunity to ensure that the Assembly has the ability to consider legislation relating to the provision of Gypsy and Traveller sites, should this be necessary.

Matter 11.8 would provide competence over homelessness. The 10-year action plan on homelessness commits us to review the statutory framework, in partnership with local government and others with an interest. The proposed LCO will ensure that, as we conduct that review, we will not be constrained in the options that we can consider by having to rely only on existing ministerial powers and ensure that the Assembly can play its full role as a legislature in this process.

Finally, the proposed LCO inserts a new matter, matter 12.18, into the local government field to enable legislation to be passed by the Assembly relating to council tax on homes that are not the main residence of an individual. The Welsh Ministers have wide powers in relation to council tax. For example, regulations currently give local authorities discretion as to whether discounts should be given for these properties. However, the Assembly has no powers in that regard, and we do not have the ability to give local authorities discretion to charge a higher council tax on these properties, should they so choose. In ‘One Wales’, the Government acknowledged that in some areas of Wales, high numbers of second homes are a factor in the affordability of housing. Legislation providing greater flexibility for local authorities could provide additional funding that might be used to provide new affordable housing. Similarly, the proposed LCO would allow the Assembly to consider legislation regarding the liability for council tax on long-term empty homes that are not the main residence of any particular individual. The detail of any such legislation is for the future, but this proposed LCO will give the Assembly a role and the flexibility to define appropriate arrangements for Wales.

In conclusion, I know that the proposed LCO will be welcomed by many who have been looking for an ambitious housing LCO. I am pleased that the UK Government has agreed the proposed LCO, having recognised the strong rationale for the Assembly to have the powers that we are now seeking. If approved, it will mean that the development of social housing policy will be on a new footing, with the Assembly being given a role in deciding the legislative arrangements that should apply to Wales. I look forward to taking Members’ questions now and during the scrutiny process.