(7 years, 10 months ago)
Commons ChamberThe right hon. Gentleman should bear in mind that Greater Manchester is a good example of a force that has managed to increase its reserves. We should be clear that, across the sector, the police—including Greater Manchester police—have increased their reserves by more than £400 million. The reality is that for policing, when precept is taken into account, we are delivering on the spending review statement that the police funding settlement maintains protection for police spending. I reiterate that statement.
Our police forces do a great job and need funding to support their vital work. So-called traditional crimes have fallen by a third since 2010 to a record low. Families and communities are safer as a result. The police have helped to deliver radical changes, including direct democratic accountability and transparency through the introduction of police and crime commissioners; the introduction of the College of Policing as the professional body for everyone in policing; cutting through bureaucracy and stripping away national targets; and increased collaboration among police leaders up and down the country to make savings, pool resources and provide a better service to the public.
I am not sure whether people in London will recognise the rosy picture that the Minister is painting. The Government are making £1 billion of savings. Does the Minister intend to shift more money away from London, as was planned in 2015—up to another £700 million? Will he fund the national and international capital city grant properly? That is £172 million short. With the Mayor, the Home Secretary is appointing a new commissioner. The Minister must realise that there are special responsibilities in London, which the Government should engage with.
This statement is as per the written ministerial statement in December; I think that the hon. Gentleman is referring to our review of the police funding formula. That work is ongoing and the Metropolitan police is involved in it. I was with the Mayor this morning, and I do not recognise the figure of £700 million just mentioned by the hon. Gentleman. I have spent quite a lot of time with the Mayor in the past couple of days, addressing the issue of the new commissioner, and he has not yet outlined that figure to me. I look forward to hearing more about where the hon. Gentleman has come across that figure.
The 2017-18 police funding settlement provides stable and fair funding for PCCs to spend locally.
My hon. Friend is right. I met his chief constable and police and crime commissioner only this week and they showed me some of the excellent work being done there. It is one of the forces that is really driving forward and working to make sure that it delivers on the opportunities that the Act gives it to bring together the fire service and police force to create even further efficiencies and, importantly, better outcomes for residents in future.
Efficiency has increased, but that can take us only so far. My borough is paying for an extra 50 police officers. Londoners are paying £61 in their council tax every year just to make up for the shortfall in the money that should be given to cover national events such as the planned visit of the President of the United States. Will the Minister guarantee that, when he looks further at funding, he will consider what local and regional authorities are contributing at the moment?
I agree that it is important that as we go through the review work we look at the functions in a capital city that are different from those in other parts of the country. We do pay extra money into London, but we also have to bear in mind that London’s Metropolitan police is by far the best funded force in the country, accounting for just over 25% of all police funding. It is a very, very well-funded police force.
Not at the moment—I will make some progress.
We are making sure, through the Act, that we support greater collaboration. To do this, the Act contains provisions to enable police and crime commissioners to take on responsibility for local fire and rescue services, where the local case is made. This means that we can maximise the benefits of joint working between policing and fire services at a local level, drive innovative reform, and bring the same direct accountability to fire as exists for policing.
The police funding settlement for 2017-18 is not impacted by the ongoing police core grant distribution review, as the settlement retains the approach to distribution that we have used in recent years.
(8 years, 11 months ago)
Commons ChamberProbably not, because there is not much time left and I do not want to prevent others from speaking.
In addition, the replacement home should in most cases be equivalent to the one sold off. It should be located in the same local authority area and there must be an initial presumption that the replacement home would be the same tenure unless there is a strong case for changing it, based on local need. This would avoid the squeezing out of social homes for rent, which are often occupied by some of the most vulnerable people in our communities, in favour of other potentially more profitable tenures. My amendment would provide not only a one-for-one replacement of homes, but in many cases like for like. I urge Members to support it.
I support the amendments tabled in the name of my right hon. Friend the Secretary of State. I want to say from the outset that I am proud to support amendments 112 and 130. I pay tribute to my hon. Friends the Members for Wimbledon (Stephen Hammond) and for Richmond Park (Zac Goldsmith), as well as to colleagues across London not just for inspiring these amendments, but for working so passionately and diligently to ensure that we get a good result for London. That is quite a contrast to Labour, from whose Members I have received no direct approaches about doing anything positive to increase the housing supply in London.
I shall give way in a few moments.
I join others in congratulating my hon. Friend the Member for Richmond Park on the birth of his son.
We shall be looking to ensure that local authorities in London can make an agreement with the Government. These provisions will require two new affordable homes to be provided for every vacant, high-value dwelling that we expect to see sold.
Well, it did not get through Committee. As we shall come on to later, it is interesting to reflect on how few provisions Labour Members voted against in Committee, yet today they seem to have found a voice that they did not have before.
We all know—it has been spoken about on the Floor of the House today—that housing markets vary across our country, and that has been reflected in the legislation so that, for example, it is possible to define “high-value” areas differently in different areas. Housing need is most acute in London, as we have heard today—hence amendment 112.
I am not giving way at the moment.
I intend to use the flexibility of the agreement process to take account of the difficulties that other local authorities might have in seeking to deliver more housing—again, if they had high-value areas, for example. My hon. Friends have spoken about that this afternoon. The Bill is framed to provide as much flexibility as possible, so that we can consider the circumstances of each local authority and its housing need.
I look forward to working with my hon. Friend the Member for Oxford West and Abingdon (Nicola Blackwood) along with my hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald) and my hon. Friends the Members for Altrincham and Sale West (Mr Brady), for Bath (Ben Howlett), for Hertford and Stortford (Mr Prisk), for Aldershot (Sir Gerald Howarth), for St Albans (Mrs Main), for Central Suffolk and North Ipswich (Dr Poulter), for Tonbridge and Malling (Tom Tugendhat), for Bracknell (Dr Lee), for Woking (Jonathan Lord) and for Braintree (James Cleverly), as well as with hon. Friends from other areas to make sure that we get these regulations in the right place so that local authorities can deliver the housing that they need.
I suggest that the hon. Gentleman google #ownyourhouse, where he will find a range of Government schemes to deliver more homes, including new homes, for people throughout the country.
We heard from the hon. Member for City of Durham (Dr Blackman-Woods) about her opposition to councils’ using vacant high-value building to build more homes and help more people into home ownership. Labour Members have also stated their opposition to ensuring that social tenants on high incomes pay a fair rent. I am not going to rehash the arguments that we had on Second Reading and Report—
No, not at this stage.
Opposition Members had their chance to vote against these clauses in Committee—that is what clause-by-clause stand part debates are for—but they stayed quiet. I will not stay quiet this afternoon. I want to make it very clear that we are introducing these clauses because we have an elected mandate to do so. We will deliver new homes for those who need them, and that will include the opportunity to gain access to home ownership. There is no time to lose.
Not at this stage.
Government amendments 9 and 11 will enable this part of the Bill to come into force on Royal Assent so that funding becomes available as soon as possible. We discussed amendment 51 in Committee as well. I want to ensure that we have full flexibility to use receipts to deliver new homes. Amendments 92 and 93 would result in a reduction in flexibility, and we therefore cannot support them. As I said in Committee, amendments such as amendments 89 and 109 represent the worst examples of the command-and-control, centralist approach that Labour seems to like. We see the same mindset in amendments 94 and 53, which attempt to limit the definitions of high value and high income, once more attempting to introduce exclusions into the Bill. As I have said time and again, we will let further engagement inform detailed policy.
Labour Members also want the Government to tell home owners that they must sell their properties at less than the market value, and to prevent them from letting their homes for a period of 10 years. I think that that is unfair and inappropriate. People should have the right to do with their own homes what any other home owner would do. The Government want a voluntary agreement with housing associations rather than the imposition of unnecessary requirements in legislation, which is what would result from amendment 91
Let me now clarify the position relating to the payment of grant under clause 61. I know that the National Housing Federation is interested in this. I am happy to confirm that, under clause 61, grant will be paid to housing associations as compensation for the right-to-buy discount. The terms of the grant-making power in the clause will enable it to be considered a revenue grant, so it will be sufficient to classify the grant as income. Of course, if the hon. Member for Westmorland and Lonsdale (Tim Farron) had his way, there would be no clause 61 or clause 62.
I will make a bit more progress and then I will take more interventions.
For the reasons that I have given, in the spending review we announced the biggest investment in housing for 40 years. We are determined to invest in what matters most to young people and to British families. We want to pay off Labour’s debt and make sure we build the homes our country needs. Both are required to make this the turnaround decade.
In the spending review, the Chancellor said, “We choose housing” and delivered a further £20 billion. Our work will include: major investments in large-scale projects, such as Ebbsfleet garden city, Bicester, Barking riverside and Northstowe; £7.5 billion to extend the Help to Buy equity loan scheme until 2021; and supporting the purchase of 145,000 new build homes. In London, we are doubling the value of equity loans to 40%, providing the capital’s aspiring home owners with a better chance to buy. A new Help to Buy ISA is helping buyers across the country to save for a deposit.
The brand new Help to Buy shared ownership will deliver a further 135,000 homes by removing many of the restrictions that have held back shared ownership. For example, an aspiring home owner in Yorkshire can get on the housing ladder with a deposit of just £1,400. I am sure the right hon. Member for Wentworth and Dearne (John Healey) will be encouraging his constituents to apply. Let me provide the House with some clear examples of why this matters. In the south-east, a deposit could be as low as £2,400, and in London £3,400. Our plans for shared ownership will make 175,000 more people eligible for home ownership. Just last week, the Prime Minister visited a family in Burton and I visited one in Didcot. They were excited for the future and the possibilities home ownership opens up to them. These possibilities will be open to anyone of any occupation as long as they earn under £80,000, or £90,000 in London.
We will provide other opportunities for working people, too: a £1 billion housing delivery fund to support small and custom builders; £8 billion to build 450,000 affordable homes; 100,000 homes for affordable rent; and, yes, 200,000 affordable homes will be starter homes available to young first-time buyers, with a 20% discount. That is the largest affordable housebuilding programme for many decades. Starter homes will be transformational.
Opposition Members may laugh and pour scorn on starter homes, and go against the aspirations of first-time buyers, but I ask Members across the House just to pause and think for a moment. A first-time buyer getting a 20% discount on a new home, linking that with a 5% deposit thanks to Help to Buy, saves thousands. For example, a two-bedroom home in Durham—in the constituency of the hon. Member for City of Durham (Dr Blackman-Woods)—can be bought for just under £150,000. With 20% off, that will be £120,000. If used with Help to Buy, it means a first-time buyer can get a house with a mortgage of £90,000 and a deposit of only £6,000.
The average price of a property, according to the Metro today, is now over £1 million in my constituency. To get a starter home, if one could possibly be found for £450,000, an income of over £101,000 is needed. Is that what the Minister has in mind as affordable housing? Pathetic!
That was almost a reasonable attempt by the hon. Gentleman, but let me just give him some facts for London. The average first-time buyer home is less than the cost of an average home generally. For example, in London an average first-time buyer home is £364,000. We recognise that that is a challenge, but with a 20% discount it will cost £291,000. If used with the Help to Buy scheme, a first-time buyer can buy that home for £174,000 with a deposit of just £14,500. I also point the hon. Gentleman to my comments of a few moments ago: shared ownership, even in London, means getting on the home ownership ladder for just under £3,500. We make no apology for our focus on affordable homeownership.
My hon. Friend makes a good point. It is important that we show good local leadership and deliver good local plans setting out where homes can be built in communities and outlining the aspiration for good-quality homes and good-quality design. That is what local authorities and we in the House have a duty to do and what my hon. Friend has championed in the House over the last few months. This will be a defining challenge for our generation, yet the right hon. Member for Wentworth and Dearne, who spoke for more than 32 minutes, gave not an iota of a start of a Labour policy to tackle this problem. Instead, he fell back on outdated politics. I am afraid it was the Soviet version of “Back to the Future” after all. There is the lazy assumption that there is a contradiction between supporting the dreams of home buyers and ensuring that more affordable homes are built. Nowhere is this clearer seen than in the right hon. Gentleman’s opposition to our extension of right to buy for housing association tenants.
In the last Parliament, we dramatically improved the right to buy for council tenants, with 47,000 tenants seizing this opportunity and over 80% of the sales occurring under the reinvigorated scheme, yet 1.3 million social tenants in housing association properties continue to get little or no assistance. That cannot be right. We promised the electorate that we would end this unfairness.
No, not at the moment.
Housing associations have recognised this inequality and have signed an offer to the Government that we have accepted—a historic agreement to end it. I thank the housing associations for doing that, and I applaud them for their forward thinking and their eagerness to help tenants own their own property, especially in light of the fact that this has bitterly disappointed the Opposition. Clearly, the housing associations have not followed the Labour party script and fallen obediently into line. Instead, what housing associations are doing is giving tenants what they want. That should not be a surprise, because the mission of housing associations is to deliver for their tenants. They are now passionate about doing that, providing tenants with an option to buy their home and a ladder to opportunity. Every property sold will lead to an extra home being built.
Having visited my hon. Friend’s constituency and local authorities over the summer, I know what appetite they and other district and county councils have to build more homes. That is good to see. I am fully aware that they want to move forward and, through the devolution deals—I know that Suffolk County Council and Norfolk County Council are engaged with them—we are looking at what we can do to support more economic development and housing growth to satisfy their ambitions.
T5. Over the three years to 2014, the Mayor of London fell short of his target for building affordable homes by 40%. He was not helped by councils such as Hammersmith and Fulham—then Tory-controlled—which actually managed to reduce the number of social and affordable rented properties by sale or demolition. Those policies are now enshrined in the Housing and Planning Bill: what are they but crude pieces of social engineering?
If the hon. Gentleman looks at the extended and reinvigorated right to buy since 2012, he will find that in London roughly two extra homes have been built for every home that has been sold. We have made it clear that we want to see the Housing and Planning Bill increase not only home ownership, but housing supply. I encourage local authorities, including his own, to make sure that they deliver more home development permissions than before.
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I am happy to have a conversation with the hon. Gentleman outside the Chamber to make sure that we get this matter into the right place.
Like the Minister’s rent and planning policies, this is all about the destruction of social rented housing, especially in high-cost housing areas. It is a piece of tawdry social engineering that exacerbates the housing crisis. Will he answer this question, which he has been asked several times and which he has refused to answer? Where council properties are being sold—we are talking about 50%, with more than 6,000 being sold in Hammersmith—will they be replaced like for like in the same borough so that people can move into those homes before the housing waiting lists get worse than they are at the moment?
The hon. Gentleman keeps talking about replacements as if homes are disappearing, but they are not. When people buy their home through right to buy, they will be living in that home. The income from that in the area will be used to build extra homes. The simple answer is that we want extra homes to be built, and I should have thought the hon. Gentleman would want to support us and his local authority in seeing more homes built to support the homeownership aspiration of people in London.
(9 years, 5 months ago)
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I would like to see Southwark Council go further in developing more homes and using some of the £21 billion of reserves that councils have built up over the last few years. We are determined to make sure that tenants get a fair deal, particularly where social housing costs have increased at almost double the rate of the private rented sector over the last few years. We are committed to supporting the aspiration of ordinary hard-working people who want to own a home of their own. That is why we will deliver 200,000 starter homes over the course of this Parliament, at a 20% discount on market value.