Neighbourhood Services: Government Support

Debate between Lord Adonis and Lord Greaves

Thursday 24th October 2019 Lords Chamber

[Lord Adonis (Lab)]

My Lords, it is a pleasure to follow the noble Baroness. Her remarks about community bus services, having new request bus services and refashioning libraries as community hubs, and co-locating other community services, were extremely well made. It is vital that we deal with underfunding, but it is also important that we get the best value from the resources, the infrastructure and the funding that is currently available, and redesigning services along the lines that she was discussing in relation to Lincolnshire, which she knows well, is a point well made.

I have a gentle criticism of the noble Lord, Lord Greaves. He said that there were problems, “even in the south-east”. Can I inform my noble friend that there are many problems in the south-east, and most of the issues that he talked about apply equally to London and the south-east as other parts of the country? It is a very bad idea for us to be setting the north against the south, as if somehow the south is a land of milk and honey and the north is all starved. These problems are fairly common across the north and the south, and many of the issues which the noble Baroness referred to about redesigning services are equally important in the south-east.

Recently I visited the wonderful new library and community centre run by Oasis, a brilliant charity run by the outstanding community leader the Reverend Steve Chalke in Waterloo, in the London Borough of Lambeth. He has turned a library that was threatened with closure into a community centre. It also has a school and a debt advice service. The police station next door, sadly, is being closed, and Oasis is hoping to bring that into the community hub, too. There is a community centre and a café there. It is a vibrant community service that has enabled the local authority, working in partnership, to keep open a service that would have been closed even without the cuts which the noble Lord, Lord Greaves, referred to. What we need to do—this is part of the role that noble Lords in this House can play—is showcase successful models of delivery, even though politically some of us would like to see fundamental changes in national policy, so that we can make the best of what we have got and utilise our still-rich panoply of local community institutions and infrastructure to provide still-better services.

I of course agree with the substance of what the noble Lord, Lord Greaves, says. We need to join up the big picture here. Part of the reason why we are going through this Brexit crisis, and a massive crisis of confidence in our political institutions and our Government, is because the services on which people depend, all of those neighbourhood services, street collections, libraries, schools, housing—which I will have more to say on—have been seriously cut back in recent years, and people make a connection between the two. They think that the fact that they are getting such a raw deal in terms of their local services is part of the reason why they should lack confidence in their national Government. Alas, three and a half years ago the only question they were asked in a referendum was: “Do you want to leave the European Union?” They are now taking it out on politicians, particularly in communities more distant from London, such as Lincolnshire and parts of the north, that voted to leave.

It is very clear to me that, if we are going to deal with the massive crisis that we face as a country, we have to end austerity and fundamentally invest in our local communities—particularly poorer communities—and stop Brexit. We need to do the two together. It is a somewhat sad commentary on our failure in Parliament to put these together that this debate is so poorly attended, with so few of your Lordships taking part—because we must crack this issue of investment in local services. I am delighted to see that my noble friend Lord Kennedy is replying to the debate. He is a distinguished local councillor. Of the few of us who are here today, many are distinguished leaders of or have played parts in local authorities. Unless we can get this right, we are not going to crack the bigger problem of our whole relationship with Europe and our membership of the European Union.

I want to address the issue of housing. The speech by the noble Lord, Lord Greaves, was interesting and revealing. He talked about improving housing administration and the quality of local authority housing stock, but I suggest that that prospectus is not bold enough for the future.

[Lord Greaves]

I apologise for intervening, but we have plenty of time today. I was talking not about local authority housing but about private sector landlord housing in areas of poor housing.

[Lord Adonis]

The point is the same, my Lords. If we are to tackle this housing crisis, what is needed is a bold new programme led by district councils and lower-tier authorities—because they are housing authorities—of building new council housing. They should work in partnership with housing associations to improve dramatically the stock of social housing and affordable housing, which is a significant part of the social crisis that the country faces.

One of the biggest changes in public policy over the past 40 years has been that the provision of social and affordable housing, which was regarded as a core function of the state until the 1980s, has totally ceased to be. We need to be self-critical in this: I do not think that the Government of which I was a part did nearly enough. We thought that market-based solutions would meet needs for lower-cost housing; they manifestly have not.

I spent, for my sins, a large part of last night reading the third volume of Charles Moore’s biography of Margaret Thatcher, which I recommend to your Lordships—indeed, some of those whom I see here in the House today feature in it. It is an important contribution to political history. One of the most remarkable things about it is that council housing, which used to be one of the biggest political issues in the 1960s and 1970s, does not feature at all in that volume—it covers the years from 1987 to the end of Lady Thatcher’s career—except in one passing reference to council house sales, which was the only council house policy that Margaret Thatcher had in her 11 and a half years in Downing Street.

The facts are now the facts: the average home in England this year costs eight times more to buy than the average salary; the average share of income that young families spend on housing has trebled over the past 50 years; because of the shortage of social and affordable housing, the number of people living in the private rented sector has doubled in the past 20 years, and private renters spend on average 41%—nearly half—of their household income on rent. Surprise, surprise, a majority, 57%, of private renters are now struggling to pay housing costs, and one in three low-earning renters has to borrow money to pay their rent. Some 800,000 people who are renting cannot afford to save even £10 a month; 27% of private renters receive housing benefit or the housing element of universal credit, which is approximately 1.3 million households nationwide. Meanwhile, the Government spend £21 billion a year on housing benefit because of the very high level of rents, which they have jacked up by removing subsidy and not building more social homes. Last year, only 6,463 new social homes were built nationwide. There are about 1.5 million fewer social homes today than there were in 1980.

I do not want to do death by statistics, but I think that your Lordships get the picture. What has essentially happened in the last generation is that we totally stopped building new social homes publicly. Housing associations filled the gap to a very modest extent, but not nearly sufficiently. We have had significant population growth in that time, alongside the cessation of social home building; a substantial proportion of the country cannot get near the affordable housing ladder, let alone buy housing; and we have a private rented sector in which Rachmanite, disgraceful, slum-type conditions are increasingly common, with local authorities having neither the power nor the resources to deal with them.

What should be the policy? It is very clear to me, because to all big questions there is usually a simple and correct answer—there is often a simple and wrong answer, too. The simple and correct answer to this crisis is for local authorities to start building social housing again. They should do this in partnership with housing associations, but they should be the prime movers because they are the public authorities—and they should build social housing at the level at which they did in the 1960s and 1970s, to deal with the chronic housing crisis.

At the moment there is precious little movement towards this. It is true that councils are building houses again in a very modest way, compared to the period from the mid-1980s until a few years ago when they were building none at all. But it is very modest; it is scratching the surface, and we now need a revolution in policy. To give some idea, the London Borough of Lambeth, for which I was looking at the statistics recently, is building fewer than 100 new social homes a year; it needs to build 1,000-plus to deal with this issue. So we need about a tenfold increase in the rate of new building at the moment. To put that in context, in just that one London borough, Lambeth—I am sorry to keep referring to London and the south-east, which may offend the noble Lord, Lord Greaves, but there are big problems there, too—the council house waiting list is 28,000. That is in a London borough that is able to build fewer than 100 new homes a year. We need to move these two figures much, much closer to each other.

The noble Viscount, who always does his best to reply to our debates, will I hope be able to give us some facts, and I would like to put a few questions to him. The situation that we are in now, which I have seen very often in public policy, is that everyone admits there is a problem—I do not think that anyone who follows me in this debate will say that there is not a big problem—but the difficulty that we face is that the policies do not remotely match the scale of the problem that most people have identified. At the moment, the noble Viscount and his party are in government, so this is a charge which faces them as to what they are doing about it. They have accepted that there needs to be new social housebuilding, but they are doing precious little about it.

I have three specific questions about policy. First, if there is to be significant new housebuilding led by local authorities, it can come from only one of two sources: either grant funding from central government and/or the capacity of local authorities themselves to borrow in advance of the receipts that they will get from then renting out the social housing. Of course, it was a combination of the two that produced the scale of council and social housebuilding in the 1960s and 1970s. The Government have introduced two policies in this respect. They have restored some grant funding to local authorities in respect of housing, but the amount is pitifully small and typically provides only for less than one-third of the cost of new social units. So what is the Government’s policy going forward? Are they going to significantly increase grant funding in respect of new social housing provided by local authorities and, if so—since I am told that unless that grant funding is in excess of 50%, it is very difficult to get building at volume—will the Government be prepared to look at increasing the grant funding to 50% of the cost of providing new social housing?

In respect of borrowing, the situation is more urgent. What we are seeing at the moment is a serious regression in policy on the part of the Government. One of the most welcome things that Theresa May did in her time as Prime Minister was announce an end to the borrowing cap in respect of local authorities building new housing. This was a deeply felt restraint on local authorities that had applied for the best part of a generation. Even though they could borrow cheaply from the Public Works Loan Board—which was the way that local authorities borrowed—and were able to service debt from rents to build new social housing, they were banned from undertaking the borrowing. Theresa May lifted that borrowing cap, which was extremely welcome, but earlier this month the Government announced unilaterally, with no consultation—smuggled out in a Statement on one of those many days when there were many other Brexit-related announcements so that almost no one noticed—that the borrowing rate from the Public Works Loan Board was going to be increase overnight from 1.81% to 2.82%.

We should let that sink for a moment: an increase of nearly 50% overnight in the borrowing rate levied on local authorities in the only place that they can borrow— except at the going market rates, which of course would make all of this totally unaffordable. The word on the street, which I put to the noble Viscount so that he can deal with it when he replies, is that the reason this was done is that the Treasury, which never wanted the borrowing cap lifted in the first place, is now trying to sabotage the whole principle of public borrowing by local authorities by massively increasing the interest rate, hoping that no one will notice.

I was, until the Brexit crisis came along, chairing the National Infrastructure Commission, so I know only too well how the Treasury works in these matters. That interpretation of what is happening seems to me to be extremely plausible. Can the noble Viscount tell the House why the borrowing rate from the Public Works Loan Board for local authorities wanting to borrow to build new housing has been increased from 1.81% to 2.82%? Is this a fixed policy? Finally, because I am always trying to be constructive—and I know the noble Viscount is, too—will he consider reviewing that policy? Will he meet me and other noble Lords who are concerned about this issue to discuss public borrowing by local authorities to build new social housing and how it can be done on an affordable basis?

High Speed Rail (West Midlands–Crewe) Bill

Debate between Lord Adonis and Lord Greaves

2nd reading (Hansard): House of Lords
Monday 9th September 2019 Lords Chamber

[Lord Greaves (LD)]

My Lords, I start by saying that I agree with pretty well everything that everybody—except for one noble Lord—has said so far; I will try not to repeat those things. I say gently before beginning that I have looked in the Companion and I cannot find anything at all about the ability of the Government to impose arbitrary time limits on speeches beyond the normal time limits for Second Reading debates. If we are to do this in future, it is something that should be discussed.

It is nearly 10 years since all this started, and where are we? I am tempted to say that we have got as far as digging up cemeteries. I accept what the noble Lord, Lord Adonis, said that there is rather more work than that going on, but it is taking an inordinate amount of time. The proposed route for phase 2a, which we are discussing today, was first published four years ago. I compare this not with China—as a place where things can be done without asking people what they think—but with France. I go to the Pyrenees most summers and I watched the construction of the line from Tours to Bordeaux, extending the existing TGV line, which seemed to be done in a small number of years. I have travelled on it twice in the last two years; I have to say that not only does the line seem okay but so does the new TGV, which I travelled on, there and back, two or three weeks ago.

Last Friday, going home I travelled on one of the new Azuma trains from Kings Cross to Leeds. In comparison—from the point of view of the ride, the acoustics and, of course, the infamous seats—I felt that I had gone back 40 years. Then I reminded myself that the Azumas were ordered and specified by the Government themselves, which I think says something.

All we get are reviews and promises of delays. I am reminded that the Victorians effectively built the mainline network in England in less than a quarter of a century. We seem to take a very long time indeed to do these things. A lot of the opposition to HS2 is about the competence, efficiency and effectiveness of the people doing it: the Government, HS2 Ltd and everybody else. We must distinguish between the need for the line—the project itself—and the need to improve the way these things are done. People attacking the way that it is being done—alleged efficiency, overspends or whatever—is not an argument against building the line; it is an argument to say that we need to do things better in this country.

The proposal that we are talking about today—extending to Crewe—is a relatively small part of what I hope will, in the future, become a substantial network connecting the main regional centres of the country. We need to start thinking about it in those terms. It is not a question of a line from Birmingham, Manchester or Leeds to London, with all this London-centric thinking. We should be thinking about a network that connects all the major cities in the area.

As far as extending it to Crewe is concerned, it would be a very good thing for people in Lancashire and the north-west, as well as, I would hope, people in Scotland. It would allow trains from the new HS2 line to run further north, just like the train I caught to Lourdes the other day—I have to say I was going there for the mountains and not for other purposes. That train slowed down after Bordeaux and became a normal fast express. Then, when it got past Dax, it slowed down a lot. The advantage is that people can do a lot of the journey at high speed and then continue to other places. When the new line to Crewe opens, as I hope it will, it should be the basis of Scottish services as well, not just services to the north-west.

[Lord Adonis]

It is integral to the plan that there will be through services to Glasgow and Edinburgh.

[Lord Greaves]

Absolutely—but these things need to keep being said, because people who are not served by the particular line concerned say all the time, “It’s no use to us”. People in the north-east are saying that—quite wrongly, because the proposal, especially when we get to phase 2b and so on, is to run services through to the north-east.

I live in Colne in Lancashire, at the end of the worst branch line in the north of England, and I am acutely aware that when the Prime Minister comes to the north and promises a fantastic new HS3—or HS15—or a northern power something or other, over the short distance between Manchester and Leeds, it is no use to us. There may well be merit in building a new high-speed line across the Pennines between Leeds and Manchester, but it is not the top priority for people in the north of England.

What people in the north of England want is an efficient network on the existing lines between their cities and towns. The geography of the north of England consists of a series of scattered towns and cities that need a network connecting them all, not just one line between one big city and another, which might perhaps stop at Bradford but nowhere else in between.

What we in the north of England urgently need as a priority is upgrading existing trans-Pennine routes, reopening Colne to Skipton to allow a new freight line as well as local services, reopening Woodhead to provide Sheffield and Manchester with a good service that way, and electrification of the substantial network. That is what we should be spending money on, not a short vanity project—it would not exist in the short term anyway; it would take 20 years—between Manchester and Leeds. The Bill, however, has my total support.