Liverpool looks to private rented sector to help cut homelessness bill

ON Thursday, 25 January 2024, Liverpool City Council announced that the cost of placing people in temporary accommodation in Liverpool has risen by 10,000% in 5 years, with temporary accommodation costs rising from:- £250,000 in 2019, to a projected £25m by the end of this financial year (April 2023 to April 2024). The City Council is now looking to work with the private rented sector to help reduce the amount of money spent supporting families facing homelessness.

This rise is the equivalent of everything the Council spends on:- Culture, Tourism, Parks and Youth Services, or what would be raised in income if Council Tax was increased by 12.5%.

Almost 1,000 families are currently in temporary accommodation; of them 558 are in B&Bs or Hotels. The City has seen a spike in homelessness numbers due to a rise in Section 21 Eviction Notices, fuelled by rent rises caused by an increase in mortgage interest rates.

Liverpool's situation has also been compounded by the number of people who are being granted the right to remain within the City. A total of 390 individuals in this situation have presented themselves as homeless, to the Council, in the past 3 months, due to changes in the Home Office's asylum assessment process.

The Council Leader, Cllr Liam Robinson, and Cabinet member for Housing Cllr Sarah Doyle wrote to the Secretary of State, Michael Gove, MP, in 2023 outlining the scale of the issue, and the need for Government support. While talks continue, the Council has now devised a plan to curb costs in the coming years.

A report to the Council's Cabinet is to be considered on:- Wednesday, 1 February 2024, in which recommends the authority begins a procurement exercise for the provision of 400 private sector properties for a period of up to 5 years.

If approved, the proposed contract would start on:- 1 June 2024, with an estimated cost of £19m, until 2029, a net saving of £121m, should current trends continue.

We have been told, by the Council, that there currently 62 families who have been housed in B&Bs / Hotels for more than 6 months If this proposal is passed, a key aim of the plan is to enable families to move out of these B&Bs and Hotels and into more suitable and sustainable accommodation.

The Cabinet report will be discussed just a week after by more than 150 Councils who have raised the issue at Westminster, in London.

The Council has recently opened a temporary Winter Hub to start the assessment process for people newly found rough sleeping in the City, and has also begun the process of drafting a new Housing and a new Homelessness Strategy.

Councillor Sarah Doyle, Cabinet Member for Housing, said:- "The homelessness situation in Liverpool is at crisis point. Due to unprecedented external factors, the cost of housing people in temporary accommodation has become unsustainable. A 10,000% rise in 5 years is a frightening number and is creating phenomenal pressure on our overall Council budget. This is a nationwide problem, as we saw at Westminster this week, and we need Government to take action on a number of levels, not least on revoking Section 21 notices and increasing local housing allowance rates and regulating rents. This temporary accommodation plan coming to Cabinet is a good step forward in mitigating the rise in the costs we are having to endure. It will crucially also provide people and families with a more homely and sustainable setting. I fear what impact the current situation is having on the mental health of those affected, not least the children. However, we must be clear that this is a means to manage the current crisis. We urge Government to invest in the provision of social rented homes. We want to see more families living in secure and affordable permanent accommodation. Hopefully by June we will be in a position to begin this contract and start to provide accommodation in our communities which will enable people to live a more normal life whilst their long term situations are being resolved."

People are being encouraged to have their say, on this draft Housing strategy, by:- Wednesday 31 January 2024, via an online survey that can be located on:- Liverpool.Gov.UK.

CLA sets out spring Budget recommendations

THE Country Land and Business Association (CLA) is calling for a permanent reduction in VAT for accommodation and attractions enterprises to boost rural tourism, ahead of the spring budget.

The CLA, which represents nearly 27,000 farmers, landowners and rural businesses in England and Wales, has submitted written representations to the Treasury to be considered as part of the decision-making process in the lead up to the Budget on:- 6 March 2024.

Key recommendations to help level up the rural economy and deliver the Government's net zero objectives include:-

• To support the rural tourism sector, there needs to be a permanent reduction in VAT to 12.5% for accommodation and attractions enterprises.
  

• To support the decarbonisation of owner-occupied and rented homes, more people should be able to qualify for the zero rate of VAT on energy saving materials. This can be done by extending relief to the purchase of energy-saving materials as well as their installation.
  

• Simplify the tax system and encourage investment in agricultural buildings, equipment, and infrastructure which will ultimately modernise the sector and drive productivity growth. This means, in particular: extending the full expensing regime to unincorporated businesses; and extending the annual investment allowance and the writing down allowances to include buildings and structures.
  

• Provide certainty for landowners wishing to deliver environment land management or ecosystem services by confirming at the Budget that it will proceed with legislation to ensure that land used for environmental delivery/ecosystem services is not subject to inheritance tax.
  

• Keep the framework of capital taxes stable to give confidence to those planning the reorganisation of substantial but illiquid capital assets, given land is a significant input to their businesses.

CLA President Victoria Vyvyan said:- "The CLA and its members are well-placed to help Government achieve its ambitions to deliver growth and create a fairer and greener country. To enable growth in the rural economy, the Government needs to fund the agricultural transition so that we can grow food and enhance the environment. They also need to stimulate capital investment in agricultural businesses and create a tax system that doesn't penalise farmers and land managers for providing environmental land management and eco-system services. Rural tourism is an important and exciting sector, accounting for over 70% of domestic tourism, but VAT rates need to be internationally competitive to help it reach its full potential. France and Spain pay half the VAT we do and that undermines our competitiveness. With VAT permanently at 12.5%, we estimate that over a 10 year period, the tourism sector would be able to stimulate an additional £2bn for the rural economy, generating extra revenue for the Treasury."