Oral Answers to Questions

Debate between Neil O'Brien and Robert Jenrick

Monday 11th January 2021 Commons Chamber

[Robert Jenrick]

Let us remember that the last Labour Government left house building in this country at its lowest ever level in peacetime—the lowest since the 1920s. The statistics that we published at the end of last year show that this Government are building more homes than any Government has built for almost 40 years, and were it not for covid, we would have built more homes than any Government since that in which Harold Macmillan was Housing Secretary many years ago.

We will keep on building more homes. We will keep on investing in homes through the affordable homes programme and more investment in brownfield land, and we will keep on bringing forward ambitious planning reforms to free up the planning system, to support small builders and entrepreneurs and to create and sustain jobs for the brickies, the plumbers and the self-employed people the length and breadth of the country who need a Conservative Government to be on their side. I would respectfully ask the hon. Lady to back us. She and her colleagues have voted against every single one of those measures since the pandemic. People across this country need those measures to get this country building and support jobs.

[Neil O’Brien (Harborough) (Con)]

What progress he is making on reforming levies on housing development.

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

Contributions from housing developers see around £7 billion a year invested back into communities, building more homes and vital infrastructure, such as schools and hospitals, and helping to deliver more than 30,000 affordable homes last year. But, as my hon. Friend has raised with me a number of times, the system is still too long-winded and complex. To fix that, we will introduce a flat rate, non-negotiable single infrastructure levy. As set out in the “Planning for the future” White Paper, that will accelerate house building, aim to raise more revenue than under the current process and deliver at least as many on-site affordable homes. We will publish more details on this soon.

[Neil O’Brien [V]]

Does my right hon. Friend agree that, as well as raising more for the infrastructure that is needed to support new housing, more of the cost should be borne by developers rather than taxpayers, and that we should give more power, freedom and flexibility to local councils about how they spend those revenues in line with local priorities?

[Robert Jenrick]

The current system is not successful. It leads to long-winded wrangling. It places the cards in the hands of big developers, rather than local councils, communities and, in particular, small developers, who find it too costly and complex to navigate. The new infrastructure levy will be simpler and more certain and, as my hon. Friend says, it will do two important things. First, it will raise a larger amount of money, capturing more of the uplift in land values, so that more money can be put at the disposal of local communities. Secondly, it will give greater freedom to local councils to decide how they choose to spend that, so that development can benefit communities in flexible ways.