Budget Resolutions and Economic Situation

Debate between Meg Hillier and Tim Loughton

Wednesday 19th March 2014 Commons Chamber

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

The Budget mentioned two of the biggest issues in my constituency, which are housing and child care. However, the Help to Buy provisions solve the problems for only some people, but not for those who rent. That is a real issue in my constituency, and I will touch on it in a minute.

On child care, another initiative has been announced, but the practicalities of it have not been addressed. We still have a Government who are looking to threaten the quality of child care, which, for parents in my constituency, is a real concern.

One of the key things that is missing from the Budget statement today is a Treasury commitment to freeing up public land for housing. Under Treasury rules, public land needs to be sold at the highest price. Years ago, when I was a councillor in Upper Holloway in Islington, I had to fight over the then Royal Northern hospital site to ensure that it was sold to improve housing in the area. Most of the housing there ended up being privately owned because of that very Treasury rule. Some 20 years later, we still have that same rule.

The Budget provided a great opportunity for the Chancellor to allow land to be sold at slightly lower than market rates so that more affordable homes could be built, thus improving public health and the general and economic well-being of people in my constituency. The St Leonard’s hospital site in my constituency is a worry as it is now owned by NHS Property Services and will have to be sold—if it is sold—for the highest rate.

Support for affordable housing in areas such as mine is very important. There are now more private renters than home owners. However, both private renting and ownership are out of the reach of people who live in social housing, and the waiting list for social housing is immense.

This Government treat the country as two halves. Over the past six months, a home owner in Hackney will have seen property prices increase by 3.58%. Someone could earn £15,060 in six months on an average property. The average price of a property in Hackney is now more than half a million pounds—£554,306. A flat would cost £347,000. Someone owning a property could earn £45,000 in a year—nearly double the national average wage. It is fine for those people who own properties, but for those who do not, ownership is a long-distant dream.

Let me quote from a letter from my constituent, Tommy. He said:

“I have been looking to purchase my first home. I am 35, and in full time work since I left university in 2001. I have worked hard my whole life but I still require assistance from my parents to purchase my first home.”

In some ways, Tommy is one of the lucky ones. Although he has not found a home, he has parents who may be able to provide him with some help. Many of my constituents are not in that situation.

[Tim Loughton (East Worthing and Shoreham) (Con)]

The hon. Lady is making some good points about the shortage of affordable housing. Does she support an increase in the threshold of £4,250 for the rent a room scheme, in which landlords can rent out a room or floor of their house tax-free, which has not changed for many years, and does not reflect current rental values? I do not see such a measure in the Budget, but would she support an increase?

[Meg Hillier]

I completely support that. Only last night, I was talking to tenants in Haggerston about rent a room and the ability to take in a lodger. They worried about getting into tax and so on, and they were worried about the threshold. That is exactly the concern. In my constituency, someone could legitimately rent out a room in their home for £200 or even £250 a week, so they would quickly reach the threshold. That is a real issue: it is one small way in which we could help some people to find a home, but it does not solve the major problem.

New home starts in the UK have gone down by 10% from February 2013 to just under 9,500, according to figures from the National House Building Council. Completed homes were just over 8,000, so we are a long way short of the target for the new homes that need to be built, and certainly for those that are genuinely affordable. I commend to the House the Co-Operative Housing Tenure Bill introduced by my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds). It is a great shame that the Chancellor did not take the opportunity to look at co-operative solutions that enable people to be much more in control of their own destiny.

I mentioned at the outset that child care is a huge issue in my constituency. I represent a very young borough, and parents want quality. It is a great shame that the Government took a “pile them high, teach them cheap” approach, although that was eventually dropped after their surprise at the backlash from parents. The tax break is welcome for those it helps, but there is confusion about how it will work. It is really important in child care policy that these things are simple, clear and do not change too often, as that makes it confusing for parents to navigate their way through.

Oral Answers to Questions

Debate between Meg Hillier and Tim Loughton

Monday 16th April 2012 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Tim Loughton)]

My hon. Friend, who within and outside the House is an expert on attachment, is absolutely right. That is why, for young children in the care system for whom there is clearly no safe way home to their birth parents, getting a good-quality, strong, attachment in adoption as speedily as possible is absolutely essential, so that they have a good chance of a safe, stable, healthy upbringing with a loving family—something denied to them by their birth parents.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

T7. In the constituencies of Newcastle upon Tyne Central and Hackney South and Shoreditch, and in many other constituencies up and down the country, applications have been put in for free schools—bids for taxpayers’ money with which to run a school for children. When will the Secretary of State publish the financial plans that those schools have submitted, or will he continue with the secrecy of the Department, which does not publish the plans until the schools are open?