Budget Resolutions and Economic Situation
Debate between Andy Slaughter and Michael Ellis(11 years, 8 months ago)
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Mr Andy Slaughter (Hammersmith) (Lab)
The average price of a house in Hammersmith and Fulham is £653,000. The average price of a flat is £493,000. If costs £770 a week to rent a three-bedroom house, and a one-bedroom flat costs £335 a week. At the same time, according to the most recently published census data, 45% of my constituents live in some form of overcrowding, while 62% live in some form of deprivation. Market rents are four or five times what social rents are, so one can imagine how my constituents greeted the Chancellor’s most recent, desperate attempt to do something with the economy—fuel a house price boom. This is what the Financial Times said about it today:
“The government is encouraging people to leverage themselves up to the hilt in order to buy what is already likely to be overpriced property and, as a result of this policy, is likely to become still more so. This is irresponsible enough. But worse, the government will probably…find itself permanently using its balance sheet to support risky housing finance, as the US has done.”
There is indeed a revolution in housing, welfare and planning in this country, but it has very little to do with the Chancellor’s tinkering earlier this week. It is the actions of the Secretary of State for Work and Pensions, who opened today’s debate, and the Department for Communities and Local Government, along with many Conservative councils, that have made rents unaffordable for 540 households in my constituency on the local housing allowance. Some 2,700 households will be affected by the bedroom tax from next week, and as soon as the benefit changes come in another 800 households will be affected.
Mr Slaughter
We have probably heard enough from the hon. Gentleman today. His temporary attendance in the debate and his whipped speech did not do him any credit; I do not think we want any more of that drivel, frankly—[Interruption.] If I need another minute, I might give way later.
The 1% cap and the restriction on crisis loans will make my constituents more dependent on payday loans or pawnbrokers. That is no way to solve the economic crisis that the Government have got themselves into.
House building is at an all-time low. According to figures from the TUC, only 10% of the money from the increase in right to buy has gone back into house building. Only 384 council homes were built in the last three quarters of last year. At the current rates—given the so-called investment in social house building in the Budget, which meets about 1% of demand—it would take more than a century to address demand. At the same time, changes through the Localism Act 2011 mean that we no longer have secure tenancies and that affordable rents in housing associations are now up to 80% of market rents—completely unaffordable. On 1 April, my local authority will abolish 90% of its waiting lists and sweep away almost 10,000 people in housing need, some of whom have been waiting for years. The local authority accepts only 6% of the people who apply to it as homeless.
On planning policy, we have plans that allow for the conversion of much-needed employment land to luxury residential use. We have a policy that says that no additional social housing must be built in my constituency and existing social housing can be demolished for development as luxury affordable housing. As the shadow Secretary of State said earlier, there will be costs through the bedroom tax and through evictions, which are going on daily and weekly. There is an opportunity cost in that people are being forced to move from west London to places where there are fewer jobs and there is a huge social cost to the poorest people, who are being dislocated from their communities.
That is who is losing through the Government’s economic and other policies, but who is benefiting? We heard at the beginning of the debate from my hon. Friend the Member for Eltham (Clive Efford), who said that the majority of new properties are being built by foreign investors. About 70% of such properties in the richer parts of London are going to foreign investors and are being used as second properties, rather than first properties.
The people who are benefiting are developers. I note from today’s edition of The Daily Telegraph that
“the planning minister, attended a meeting with some of the country’s biggest property developers hours after”
the Chancellor’s
“speech on Wednesday”
and:
“Property developers have been privately promised that planning laws will be liberalised again”.
Developers are making money out of this—the same people who are the friends of those on the Government Front Bench and the donors to the Conservative party.
The same is happening in health. Hospitals in my constituency are being shut so that private providers can come in and clean up with inferior services, as shown today by the 80% of people who do not support the out-of-hours care they are being offered in exchange for the closure of accident and emergency departments. In my area of justice, cuts in legal aid and restrictions on access to justice have been made to benefit the insurance industry, another major funder of the Tory party. It is in those interests that the Government act. It would be polite to call it a class interest, as it is actually a mate’s interest. It is an act of cronyism.
The Budget does nothing to support poorer people or people on middle incomes and it does nothing to help people in crisis in my constituency. The only people it supports are those who fund the Conservative party and those who already are or soon will be millionaires.
Forensic Science Service
Debate between Andy Slaughter and Michael Ellis(12 years, 9 months ago)
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Michael Ellis (Northampton North) (Con)
It is a pleasure to follow the hon. Member for Ellesmere Port and Neston (Andrew Miller). To continue the forensic analogies, it is an unquantifiable pleasure.
I want to start by recognising the excellent work that forensic scientists do, no matter where in the country they work. It is often painstaking work and it is often undertaken in unpleasant situations. Much of the work that they do is unsung and they remain largely anonymised within the system. I therefore praise the work of the forensic experts and scientists who do so much to support the criminal justice system in this country.
The Forensic Science Service has been making a significant loss for a considerable period. This is not a new situation that has materialised suddenly in the 18 months since this Government came into being. The Forensic Science Service has had 20 years of fiscal decline and difficulties. It has lost about £2 million a month. [Interruption.] The hon. Member for Ellesmere Port and Neston is signalling that it is more like £1 million a month. Even if that were true, and it is not accepted that it is, £1 million a month is a great deal of money to lose, particularly in these straitened times of austerity. One cannot lightly brush aside such significant monthly losses.
Mr Slaughter
The overwhelming client of the Forensic Science Service is the police in England and Wales, although there are some other clients. The money is therefore being paid by the police service. If the contracts are adjusted, as they may well be by commercial providers, all that will happen is that the police service will pay more money. These notional losses are a consequence of the way in which the system is set up. What parts of the criminal justice system does the hon. Gentleman think should make a profit?
Michael Ellis
The Government have supplied £20 million to maintain operational continuity and some £8.7 million to cover staffing costs in recent months. There is no point in Opposition Members taking the anti-privatisation and anti-capitalist approach and saying that the best approach is for the Government to run everything from the centre. That is not the best approach. We know from numerous examples over the past 20 or 30 years how the commercial sector has driven better results and circumstances for the Government and for the individual.