Oral Answers to Questions

Baroness Harman Excerpts

Tuesday 26th March 2013 Commons Chamber

[The Deputy Prime Minister]

I strongly agree with my hon. Friend that, having not only crashed the economy, Labour also left an immigration system in chaos, in which the public had absolutely no confidence whatever. Just as we are repairing, reforming and rebuilding our economy, we are having to do the same to the immigration system, which Labour left in such a lamentable mess. I agree with him that unless the public have confidence that the immigration system is competently administered, it is difficult to persuade people that we should remain the open, generous-hearted country that we are.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

In last week’s Budget it was announced that there would be a Government-backed mortgage scheme for homes up to a value of £600,000. Will the Deputy Prime Minister make it absolutely clear that it will not be available for people buying a second home?

[The Deputy Prime Minister]

As the Chancellor made very clear, that is absolutely not the intention of the scheme. The intention of the scheme is to allow people to buy new homes, but as the right hon. and learned Lady very well knows, this is a complex area. There are anomalies that we need to address. For instance, we would need to ensure that the rules allow divorced couples to access the system just as much as anybody else. The Treasury is working on the details of the scheme to ensure that it does exactly what it is intended to do.

[Ms Harman]

It is not a question of complexity or detail: the Treasury is very familiar with the notion of sole or main residence. The Deputy Prime Minister has not answered the question. It is not about the intention; it is a question of whether the Government are ruling that out. Let me ask him about something else—not a detail, but something fundamental—and see whether he can be clearer about that. Will he make it clear that the Government have ruled out making this Government-backed mortgage help available to people who are not domiciled in this country?

[The Deputy Prime Minister]

As the right hon. and learned Lady knows, the reason we have developed Help to Buy—which has two components: Government equity in new build construction and mortgage assistance —is of course not to subsidise people who have no stake in this country, nor is its intention to provide subsidies for people buying second homes. It is there to restore confidence in the housing market as a whole and ensure that the construction industry is given a significant boost, so that we employ more people and give people the opportunity to own their own homes.