(1 day, 21 hours ago)
Lords ChamberMy Lords, I am pleased to follow the noble Lord, Lord Kerr, but let me just point out to him that politicians do not want elections when they know they are going to lose, and they like elections when they know they are going to win. The fact behind this decision is that, despite the Conservatives’ regret Motion, most of the councils that are postponing their elections are Conservative-controlled. They know that they had a very good year in 2021—an exceptional year—and that they were going to lose control of most of the councils that had elections this year. Sadly, with Labour in government, it knows that its vote is going to be difficult to get out and it has concerns about how well it is going to do. We know we did quite well and have to accept that.
The top-down model that the Conservatives were talking about—in respect of the reorganisation of local government—is actually pretty much the model they had in government, for what they were going for. Their main motivation is that they would lose against the results in 2021. In my area, there are no elections in Surrey, Sussex and Hampshire. I understand that the Government want their reorganisation, but I think they could have either postponed the consultation a little bit by a month or two, or, indeed, arranged that the elections should be held in June, a month or two later, after the consultation.
I will give you the example of my own patch of Hampshire. We have big financial problems in Hampshire. The Conservative-run county council has a deficit coming up of £183 million next year. It wanted to put council tax up by 15% and asked the Government to put council tax up by that much. A lot of the problems go back to their Government, because they did not provide the money, but that is the reality in Hampshire. We are going to end up, in Hampshire, as a result of having no elections, with a fag-end county council, which I would say is unrepresentative, having to impose pretty severe cuts on services when it knows it probably will not exist in three or four years’ time. Probably, in our patch, we will have no elections until 2027 or 2028, unless the Government promise we will have county elections next year. If we are going to have county elections next year, we might as well have had them this year.
There are three conclusions I draw. One is that it is better to have elections this year than wait for possible elections in 2027 or 2028. I think the Government should declare whether we are going to have elections next year or, if there is a reorganisation, whether we are going to have a further extension of councillors’ remit, so that they will have been in power in the county council for seven or eight years by the time we get around to having elections.
The second thing that is really important is that, for God’s sake, we must sort out the finances of these councils. Southampton is Labour-controlled and Hampshire is Conservative-controlled, and they are frankly in deep, deep trouble. If those problems are handed over to a reorganised Hampshire local government organisation, it will not succeed. That is why we need reform, but we do not benefit that reform by getting a postponement of the elections. Unless the financial situation is sorted, reorganisation in my county of Hampshire will not get off on the right foot. We will have all the local authorities in that area blaming each other for the fact that it is not going well, and trying to push the financial deficits on to each other. It will be a disaster.
Let me just give your Lordships a bit of hope, which I hope, by having elections, we might see. Southampton, Hampshire and Farnborough in the 1930s were the Silicon Valley of the United Kingdom. We had a very successful aviation industry, with the invention of the Spitfire; Farnborough was also a big centre of research and Southampton was one of the main ports to America. The Blitz and the war led to a lot of those industries moving north or to the south. What we need in our county is a well-funded series of unitary authorities and a mayor who will lead us back to that growth that we want and which the Government want.
However, we are not going to do it if we start off with unrepresentative councils as a result of elections being suspended. The county council is hugely unrepresentative now, because it had an exceptionally good year in 2021 and will probably be in power for six or seven years through this period. The county council is going to be leading some of the discussions on reorganisation in Hampshire, and that is the problem. We want to start with representative councils and do not want to postpone the elections.
My Lords, it is a funny thing when the unelected House of Lords has to regret the cancellation of elections. Democracy is the foundation stone on which the fabric of our nation is built. It is not to be carelessly discarded and requires the most careful consideration. I accept that general elections are far more important than most, but local elections are not any less valuable in shaping the local doorstep issues that people value the most in their towns, villages and cities. I am a councillor, and a veteran of many local elections, so I know more than most how they keep councillors on their toes, and refresh and reinvigorate those councils.
I accept that elections have been cancelled before—under the Local Government Act 2000 and in special circumstances such as Covid or foot-and-mouth. Those are truly exceptional circumstances, mostly in cases of national emergency where all elections in all areas are cancelled, but that is not the case here. We are not cancelling elections in an emergency, where Section 87 of the Local Government Act 2000 is engaged. No, this is a case of devolution and local government reorganisation, where, last week, the Minister in the other place could give no assurance that the process would be complete even in this Parliament, by 2029. Time is clearly not of the essence, so what is the rush today?
When the Secretary of State wishes to move the local government deckchairs around the deck, Parliament has determined the process to be followed in bespoke legislation: Section 7 of the Local Government and Public Involvement in Health Act 2007. It lays out in excruciating detail the particular processes, statutory tests and consultation requirements that must be engaged before elections can be cancelled in local government reorganisations. I am grateful to the Library for all the research it has done on this.
The Government say that they are following the precedent set in 2021, when Somerset, Cumbria and Yorkshire were reorganised, but they are wrong, and I will explain why. Back in 2021, the process started in October—fully seven months out from the proposed elections. Back then, all principal authorities and other interested parties were invited to make proposals. Those proposals resulted in the number that came forward, and Members of Parliament and the public were fully engaged. Later that February, the Government expressed a preference in a well-defined timetable and laid orders and cancelled the elections, following the process established by the Labour Government in 2007.
Let us contrast that with this time. This time, the majority of the cohort of principal authorities were excluded from the discussions, as the Minister will know. Only about 30 of the 200 or so principal councils affected by the proposals were engaged before the Secretary of State made her decisions. How does she justify that? Invitations were circulated to those 30 or so councils, mostly the county councils, to endorse the concept of a mayoral devolution, with carrots—nods and winks—to agree that they would cancel their elections. There was no public consultation. Consider for a moment the conflict of interest in asking the councils facing elections whether they would like to cancel those elections without asking the other principal authorities what they thought of the idea, to say nothing of asking the public what they felt. In January, 18 of the councils wrote to say that they would quite like to dispense with those elections in exchange for a connivance on the mayoralty and, oh yes, early LGR.
I am reminded of my noble friend Lord Pickles, who is no longer in his place. He told me, as a young council leader, “If you don’t trust the folks, don’t go into politics”. So in February, when the Secretary of State said that nine of them had got lucky, if that is an appropriate phrase for denying electors their democratic right, it was announced that their elections would be cancelled. You have to feel for the 10 that were suckered into asking for cancellation but got the mayor anyway.
The Government have wilfully conflated two separate, albeit linked, ideas: devolution and the creation of a mayor; and LGR and the abolition of councils. We were told that the population size for the new councils would be at least 500,000, with no upper limit. We now learn from the Minister that the figure is between 350,000 and 500,000, with the possibility that 500,000 may just be the average within a territory. The 30 councils that connived were misled and entered into the process on a false prospectus. They were suckered. Councils and mayoralties are different. You do not speed the creation of one by cancelling elections to the other. That exposes the dishonesty of the Government’s approach and is why we are right to regret their actions.
Does the noble Baroness accept that, under Section 7 of the Local Government and Public Involvement in Health Act—which governs local government reorganisation—it is a statutory requirement that all principal authorities are engaged with? By that I mean not just the county councils but all the districts, upper tier unitaries and so forth—not the parishes but the principal authorities. Does the noble Baroness further accept that only 30 or so of the 200 or so councils that should have been consulted were actually consulted?
I will answer the noble Lord’s point further in a moment. Following a question he asked me earlier, I checked the legal requirements, and my understanding is that all the legal requirements have been met in this process.
The noble Baronesses, Lady Pinnock, Lady Jones and Lady Fox, raised the issue of democratic accountability and elections. To clear up a point, there are no elections postponed in Devon. I do not know whether that was raised with the noble Baronesses, but elections are not postponed in Devon. Nothing is being imposed on local areas. The commitment to join the devolution priority programme and the emerging proposals for new unitary councils were all bottom-up. All requests for election delays to unlock reorganisation and devolution to the fastest possible timeline followed direct requests from the leaders of affected upper-tier councils—not the Secretary of State, as was stated by the noble Baroness, Lady Jones.
Devolution and strong councils with the right powers mean that hard-working councillors and mayors can focus on delivering for their residents. That will strengthen the democratic accountability of local government to local residents. Postponing this small number of elections will enable mayoral devolution to be delivered in parallel with reduced timescales, so that working people and communities get those benefits—the powers, funding and freedoms—far more quickly, with mayoral elections and elections to new councils increasing democratic accountability, not reducing it.
We do not agree that there is a lack of consultation. We are consulting now in eight of these council areas on mayoral devolution, and we have asked councils to engage widely as they develop their proposals for reorganisation. Once a proposal has been submitted, it will be for the Government to decide on taking a proposal forward and then to consult, as required by statute. Some 13,000 people have responded to those consultations already, so people are engaging with the process.
A number of noble Lords mentioned the timetable. I think there has been some misunderstanding, so I will cover this. The noble Baroness, Lady Jones, asked for clarity on the timetable, and I understand why she would want that, as did the noble Baronesses, Lady Pinnock, Lady Scott and Lady Fox, and the noble Lords, Lord Stoneham and Lord Fuller. The starting point is for all elections to go ahead, unless there is strong justification. In May 2026, we intend that mayoral elections for new strategic authorities will take place, alongside those district and unitary elections already scheduled and elections postponed from May 2025. For any area in which elections are postponed, we will work with areas to move to elections to new shadow unitary councils as soon as possible, as is the usual arrangement in the process of local government reorganisation. For areas in the priority programme, this will mean mayoral elections in May 2026, alongside and in addition to the rescheduled local elections. We will work with areas to move to new shadow unitary elections as quickly as possible.
Postponement is essential for the delivery of the devolution priority programme, with inaugural mayoral elections in May 2026 and complementary reorganisation. We have no plans to postpone district council elections in 2026; we intend these to take place as scheduled, alongside elections postponed in 2025. The date of any unitary council elections will depend on the nature of proposals for local government reorganisation and progress on the development of those proposals. They are moving on different timetables.
On the issue of strategic planning, raised by the noble Baronesses, Lady Jones and Lady Pinnock, local plans will still be the responsibility of local authorities. Strategic planning at mayoral level will inform that planning, not replace it. It is done at mayoral rather than national level, so this is increasing devolution, not reducing it.
The noble Baroness, Lady Jones, made a point about saving money. We have had a PwC report, which set out the opportunity for areas undertaking reorganisation to achieve efficiencies when moving to a single unitary structure. In fact, North Yorkshire Council, established in 2023, expects to achieve more than £40 million in savings by March 2026. There is precedent for significant savings.
The noble Baroness, Lady Pinnock, mentioned Surrey. This single-year postponement is intended to give local leaders the time and capacity to plan for new structures, with local leadership in place until after the full reorganisation proposals have been submitted. We agreed to delay elections in Surrey to expedite local government reorganisation because of the perilous financial state of some of the authorities in that locality. The Government are getting on with delivering this.
All two-tier areas have been invited to develop proposals for reorganisation. I am delighted to confirm that every single area, comprising councils of all political stripes, has responded to the invitation to reorganise and submit an interim plan by 21 March. A Written Ministerial Statement has been laid before the House today, setting out the details.
The noble Baroness, Lady Pinnock, asked about the Secondary Legislation Scrutiny Committee. I think the noble Lord, Lord Khan, probably replied better than I could on this. In response to her question about the date, we do not have powers to delay a date; we can delay only the year, not the date. It would require primary legislation to postpone until June.
The noble Lords, Lord Rennard and Lord Fuller, raised the issue of precedence in postponing elections. Between 2019 and 2022, the Conservative Government legislated to postpone 17 local council elections for one year and cancelled a further 13 elections as part of legislation giving effect to unitarisation proposals, with the latter having the effect that the elections did not take place, as the councils were abolished. All local elections scheduled to take place in 2020 were subsequently postponed, of course, because of Covid. I could go into further detail, but I will not take up noble Lords’ time.
The noble Baroness, Lady Scott, raised the issue of boundary review. I am very happy to write to her further on the timetable. On the process for local government boundary review, I know, because we have just gone through it in Stevenage, what a thorough process that is. There is no intention to curtail the process of extensive consultation as we go through this process.
My noble friend Lord Bach referred to the process of devolution and the need for a modern and efficient local government system, and I agree with him 100%. We have had three decades of delay in moving this forward, so to noble Lords who said this is rushed and hurried, can I just say that it does not feel that way to me? I have been in local government for 30 years, and we have been trying to do it for all that time. In relation to the English cities, for councils which have not already been part of a reorganisation process, if those areas feel it is appropriate, they will have submitted those changes in their plans or they will be working them for the second stage of planning.
(1 month, 1 week ago)
Lords ChamberI thank my noble friend for that genuine advocacy of local government; I share his faith in local government delivering for the people it serves. The White Paper sets out this ambitious new framework for English devolution, moving power out of Westminster to those who take decisions for and with their communities. We want to see all of England access devolved power by establishing the strategic authorities, and a number of councils working together over areas that people recognise—that is the important point, because this is coming from local areas—and that can make the key decisions to drive economic growth.
My noble friend is quite right that elections being postponed to drive forward such programmes is not unique to our Government. Following these decisions, of the 33 council elections originally scheduled for May 2025, 24 will take place, with nine being delayed to May 2026. Previous Governments have taken similar decisions that it was necessary to postpone elections to give councils the space to do the work necessary.
My Lords, the noble Lord referred to consistency between authorities. The average number of electors in a London borough is 173,000, and in a small unitary it is 237,000, but the Government plan to have new councils consisting of half a million people. That is inconsistent with democracy, and with what the noble Lord said.
Yesterday, I asked the noble Baroness what we are going to do about electoral equality, and she answered that the Boundary Commission will work to ensure consistency within authorities. But the thrust of my question is: what about consistency between them? I have the fourth-oldest outstanding Written Question on the Order Paper, on page 16, which asks about the capacity of the Boundary Commission to undertake this work. When does the noble Baroness intend to answer my Question—or would she like to accompany me to the Tolpuddle Martyrs Museum in Dorset on a day trip, where she can understand how the fundamental principles of equality of representation across all electoral areas can be ensured?
I thank the noble Lord for his offer to visit the Tolpuddle Martyrs Museum. I have already been there. However, I did pick up his point about the need to enhance and promote visits to that museum; it is a very worthwhile visit.
I answered a number of questions yesterday about the electoral reviews in the areas concerned. It is very important that the Local Government Boundary Commission for England is allowed to do its job properly. The department has, of course, been talking to the commission throughout this process about the work it will need to do as a result of the changes we are making to local government. It is ready to help both with boundary reviews, where necessary, and with the boundaries for the new authorities and the boundaries within those authorities. I explained yesterday the criteria that the commission uses to do that. It has very strict criteria, and I am sure it will keep to those, as it has done during all the time it has been operating.
(1 month, 2 weeks ago)
Lords ChamberTo ask His Majesty’s Government, as part of the local government reorganisation set out in the English Devolution White Paper published in December 2024 (CP 1218), whether they plan to ensure that the principle of a broadly equivalent electoral quota per constituent will be applied to local government so that the value of every vote in each local authority area will be broadly similar throughout England.
My Lords, I thank the noble Lord, Lord Fuller, for asking an important Question on fair electoral arrangements for local government following the proposed local government reorganisation. Of course, this is a matter for the independent Local Government Boundary Commission for England to consider, but my department is liaising closely with it to ensure that it is involved at the appropriate time to make sure that we have fair electoral arrangements across the area of any new unitary authorities.
My Lords, 10 days ago, I had the pleasure of attending the Tolpuddle Martyrs Museum in Dorset, where I was delighted to see that one of the six core Chartist beliefs was equality of representation across every electoral district. On average, it takes 3,109 electors to select a councillor in London, but the corresponding figure is 15,000 in Essex and 18,000 in parts of Kent. That is a 600% variation. With local government reorganisation on the cards, does the Minister agree that that founding socialist principle of electoral equality should be enshrined in the design principles of the new councils; that is, that the electoral quotient should be broadly similar throughout England, as it is in the other place, where a 5% tolerance is set down by law?
I am delighted to hear that the noble Lord is educating himself on the socialist principle of the Tolpuddle Martyrs. I hope that that will continue; I am happy to help if he needs any support with it.
Basically, I believe that the noble Lord is comparing apples with pears here. The Local Government Boundary Commission for England provides very good guidance on determining councillor numbers. When it is decided where the new unitaries will be, it will look at the overall size of councils and then at warding and divisional boundaries within those councils—I am sure that the noble Lord has been through this process himself. It does that with fairness and equity; it bases its views on electoral equality, reflecting local communities and interests and responding to local views—as it has done for many decades and will, I am sure, continue to do.
(3 months ago)
Lords ChamberMy Lords, I have sat on the Local Government Association’s resources panel for at least the last dozen years—it might be more—so I am fairly well acquainted with some of these things. Local government already had a mountain to climb, but, if I may dwell for a moment on the national insurance increase, I regret to say that that has made it even worse. I am grateful to the Minister for identifying that the £515 million grant for NIC is not to be ring-fenced, but not making it ring-fenced does not make it go any further. The LGA has already calculated that the costs of the NIC will be £637 million and of contractors will be £1.13 billion. The shortfall is £1.3 billion. How does she account for that shortage, and what should be cut? The noble Baroness mentioned the new homes bonus. Does she agree that that will not say much about the incentives to build homes? Finally, the noble Baroness mentioned funding reform. Will she commit to the no-detriment principle in the previously envisaged transition methods, whereby no council will be worse off during the transition than it is today?
I thank the noble Lord. One of the reasons why we have set up the English devolution programme is to get a more effective and efficient way of managing local government. We will not solve overnight the funding problems that have accumulated over 14 years. It will take a while to do that, but in this settlement we have ensured an increase for most local authorities and no local authority will get less funding than before. We will invite views on reforming the new homes bonus as part of the local authority funding reform consultation that will be published alongside the settlement. Although the Government proposed that next year will be the final year of the NHB, we will look at it so that councils can do their financial planning around it and we will consider it as part of the spending review. I cannot commit to no detriment at this stage because we have not even started the consultation on the spending review yet, but no authority received a worse settlement in this year’s settlement than it had before.
(3 months, 1 week ago)
Lords ChamberI thank my noble friend for both his questions. We are very aware of the point he raises about the affordability of housing, which is why, in spite of a very difficult Budget round, we have put a great deal of money into enhancing the ability to deliver affordable housing and social housing—a total of around £1.3 billion, with £500 million announced in the Budget. Some of the changes we have made to the planning process—for example, to require local authorities to determine not just how many homes they need but the tenure of those homes—will help with that as well.
To identify the obstacles to housebuilding, the housing accelerator programme has, with the industry, local authorities and other stakeholders, looked at what the key barriers have been to delivering the homes we need. It is working with specific sites where building has stalled and more generally to look at the barriers and how we overcome them. We have identified capacity in the planning system as one of those barriers, which is why we have put in additional funding this year to improve the capability and capacity of planning departments. We will be working further with our colleagues in the Department for Education to improve the number of planners coming through the training system. We have made changes to the planning fee process as part of this which will increase the quantum of funding that local authorities will have available in the planning process. The new homes accelerator has looked across all those barriers.
My Lords, you cannot live in a planning permission and you cannot wish new homes magically into existence. All the encouragement in the world will not help if builders cannot find the staff, materials and finance to put roofs over people’s heads. I have led a council, and I really want to ensure that we can put this rhetoric into reality.
In cities where Labour tells us that people want to live, the targets have been reduced. That makes the mountain to climb elsewhere even steeper. I will highlight the case of Bournemouth, Christchurch and Poole, where the new targets are nearly three times the best housing delivery that that district borough has ever achieved. Does the Minister think that setting these unachievable targets brings the planning system into disrepute?
I want to place on record a story I read in the Financial Times this week about the best quarterly housing completions ever in the last 50 years. In 1978, 75,000 houses were completed in a single quarter. The targets mean that, for the rest of this Parliament, a sustained completion of 90,000 is needed. The Minister and I have worked closely over the years to get homes built. I have helped her in a small way with PINS; she has helped me with parishioners. My concern is that the Government are pinning the blame on councils. That is unfair, and I think she knows that.
What steps will the Government take to ensure that the national agencies that have single-handedly held up hundreds of thousands of homes being delivered over the last three years—such as Natural England, Highways England and National Rail, or whatever it is called nowadays—will roll up their sleeves and stop blocking building so we can get the nation building?
I thank the noble Lord. I gave an explanation of how we set the targets in response to the question from the noble Lord, Lord Jamieson. The fact is that everyone and every area has to play a part in this if we are to deliver these challenging housing targets. It is important that the new formula takes account of affordability and the demand for housing in local areas. Where they have challenging targets, it is because there is a demand in those areas, including a demand for more affordable housing.
We all know that statutory consultees play an important role in the planning system, providing advice on technical matters to ensure that new development is good quality, safe and situated in the right place. It is important that statutory consultees play their role too, to ensure that the planning system supports the housing and infrastructure development that we need. We will work with them over the next year to achieve that. Part of our work on the new homes accelerator will be to look at the statutory consultees to try to understand why the delays have come into the system, in relation to the responses of statutory consultees, and to see how we can work with them to alleviate some of those blockages and barriers.
(3 months, 2 weeks ago)
Lords ChamberMy Lords, until May, I was the leader of a council for 17 years. Under my leadership, every single home lost to right to buy was replaced, and then some. We delivered 1% of the entire national affordable housing stock each year through the 2010s. That needs an authority that is organised and ambitious, and a clear idea of what the state is for. Did we sit there moaning about right to buy? No, we did not; we just got on with it. We struck hard bargains with landowners and developers. We recycled capital receipts. We built new homes for rent, of different tenures and different types, in both towns and villages, but mainly for social rent. That income kept council tax down for everyone. It can be done.
Throughout the 2010s, it helped that there was a 25% new homes bonus kicker for the delivery of new homes under social rent. It certainly helped when the last Government changed the rules so that we got to keep all the money to reinvest in new homes rather than see it go to the Treasury, particularly for temporary and short-term accommodation, where the need has become suddenly greater following Covid.
I can tolerate restrictions on right to buy on brand new homes, but I cannot abide those who stand in the way of a family cherishing an older property that could be brought into their ownership, the money for which would allow a new, much more modern and cheaper to run home to be built. For too long, blaming right to buy has been an excuse for inaction on house- building by councils. It has been a case of blaming the Government rather than rolling up your sleeves.
I am disappointed that the Government are diluting the incentive for families to take the plunge to seek more security and a stake in society. I particularly regret that the statutory instruments committee had to drag the full extent of these regressive proposals out of the Government, who did not want to show how many families would be disadvantaged by this proposal.
This is a moment to realise that right to buy has been one of this country’s most transformative policies and has done more to drive social mobility and give families a stake in society. That is something everyone in public life should aspire to promote, but perhaps that is asking too much from a Government who are putting limits on aspiration in so many walks of life, not driving it forward.
I rise briefly to take part in this debate. Before doing so, I draw Members’ attention to my register of interest: I am a vice-president of the Local Government Association and a director of a fully privately funded affordable housing provider that actively encourages its tenants to buy their homes after five, 10, 15 or 20 years. It is called Rentplus and it does what it says on the tin: you rent at a discounted price and you buy at a discounted price. I work for somebody in the private sector who preaches the possibility that home ownership should be within everybody’s reach.
I will support my noble friend by going through the Division Lobby with him when he chooses to divide, but I will not agree on the reason. My reason is not that the Government are being unreasonable in setting the numbers they have chosen. Putting numbers on a piece of paper is a big mistake when talking about property markets; they are so varied in so many places for so many different reasons that it is better to put a percentage figure. I disagreed with what the last Government did by increasing the discounts to such a level that only really rewarded avaricious grandchildren, not the hard-working tenants who had occupied their homes for a long time. A number of elderly people were pressured into buying their houses for a capital sum that would go to their grandchildren. That should not have happened unless that grandchild had lived with those grandparents.
But, as my noble friend Lord Fuller said, right to buy is probably the single biggest piece of social mobility legislation enacted since the war. It enabled a million families to gain access to capital who never had done in the history of their families. I do not think anybody has done any work, but somebody should do, on how many businesses were set up in this country by people who could leverage capital they had not previously had access to. For a number of reasons—I think about our care sector, as people need access to capital to be able to pay to have care nowadays—this country would fall apart without it.
We should not lose sight of the fact that just over a million homes were lost to councils through right to buy, but 2 million homes were lost to councils through propositions put forward by the Tony Blair Government. Out of the 4 million homes that used to be in council ownership pre-1980, 1 million, so 25%, were lost through right to buy and 2 million—50%—were lost through LSVT. Councils such as my own were summoned to the Government Offices for the Regions to explain why they were not transferring their homes out. So this is not a tribal issue between the red team and the blue team; it is a proposition about whether we believe most people in this country aspire to be home owners. Clearly we do—I think all of us across the Chamber believe that—but do we also believe that people should be able to live in a safe, secure, decent, affordable home even if their financial circumstances mean that they are unable to do that completely unaided at the time they need it?
Right to buy is a good thing, but the right to build is the most important thing, and I agree that the Labour Government are right this time round to allow councils to keep 100% of the receipts, which would otherwise have been lost to the Treasury. Who wants to give money to the Treasury? It is much better for it to be spent locally. If the Labour Government had said that the discounts would be set at a local level by local councils to stimulate demand but not to reward avaricious grandchildren, I would not be going through the Division Lobbies tonight. But that is not what they have said; they have said, “Whitehall knows best. We’ll set an arbitrary figure that’ll have no bearing to the marketplace in a year or two’s time”.
(6 months, 2 weeks ago)
Lords ChamberMy Lords, I have been talking to a number of builders and they all say the same thing: “When we build a home, standard build is cheaper, while meeting the complexity that often comes with awkward and constrained sites”. Steel frames, precast floors and other off-site techniques can speed certain aspects. Pre-manufacture always has a role in high-rise situations, where space is constrained on inner-city sites. MMC is best introduced in institutional settings such as hotels and care homes, where identikit standardisation has value. But when all is said and done, they tell me that MMC is more expensive. Let us not kid ourselves that it is cheaper; it is not.
We must not ignore cost. To meet our national targets, we need to recognise that layering ever more well-meaning but expensive burdens on building, such as CIL, GIRAMS, SANGS, nutrient neutrality, BNG, water neutrality, MVHR and EV—all worthy things in themselves—has cumulatively added £40,000 to the cost of a new family home, before we even start to consider the proposed 50% affordable housing targets on grey belt that will push housing costs even further out of reach. We must have limits on cost.
We will make rapid progress if we prevent the mortgage, warranty and insurance companies discriminating against modern rather than traditional builds. We must make it easier for smaller, family firms to finance perhaps a dozen homes a year using materials sourced locally, and we must roll back the regulatory creep from self-serving national agencies such as Natural England, not councils, that layer ever more onerous, overlapping regulations and undermine the equality of the three levels of sustainability—economy, environment and society—in pursuance of their own judicial activism.
These are the basics to focus on before we spend disproportionate attention on the shiny MMC thing, which diverts focus from getting Britain building.