Council Housing

Debate between Alex Sobel and Jim McMahon

Tuesday 27th October 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jim McMahon)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I congratulate the hon. Member for North East Hertfordshire (Chris Hinchliff) on securing this important debate on the delivery of council housing. I appreciate his passion for the subject following the debate that he brought forward last September on the provision of council housing. I also thank all Members for their rich contributions. They really reflect the challenges that exist across the country.

Nearly 180,000 children are in temporary accommodation in this country, and over 1.3 million households are on local authority housing registers. Members across the House will agree that we cannot allow that to continue, because behind every one of those statistics is a person, a family and a child. The Secretary of State for Housing, Communities and Local Government, the Housing Minister and the whole Government are clear on our resolve and intention to tackle the issue. We are also clear that councils have a leading role to play.

Under the leadership of the Prime Minister, the Government are committed to delivering the biggest council house building programme since the post-war period. That level of ambition is necessary because of the scale of the challenge that we are facing. This Government are removing barriers and backing councils to use all the levers at their disposal to deliver safe and decent homes at a scale not seen for decades.

We have taken decisive steps to improve councils’ financial resources, capacity and capability to invest in new and existing homes, and the social and affordable homes programme funding is putting councils at the heart of that delivery. It is the biggest long-term investment in social and affordable homes in recent memory. Initial allocations under the programme were announced in August and, for the first time, three councils outside of London—Newcastle, Eastleigh and Cambridge—were awarded strategic partnership status. The Greater London Authority has also offered allocations of at least £6 billion to providers of social and affordable housing, with 60% going to local councils.

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

Leeds is one of the biggest local authorities in England. We have 27,000 households on the waiting list for council housing, 5,000 of which are in priority need. So many constituents come to me saying that they just cannot afford private rented homes. The main issue is that there is just not enough council housing. I welcome the Government saying that they are building more houses, but there needs to be specific help for Leeds, including both more funding for land remediation and the purchasing of city centre developments that are unoccupied or under-occupied. What additional support can the Government provide for that type of housing?

[Jim McMahon]

Leeds city council is ambitious for its city and is a key member of the West Yorkshire combined authority. It is doing a lot of work, not just on housing but on bringing forward brownfield sites through growth and infrastructure funding to make sure that, as many Members have said, housing goes alongside that wider community infrastructure.

In addition to the funding that I have just mentioned, over £21 billion is still to allocate, which will be prioritised for social homes, particularly council homes. That reflects our commitment to increasing council house delivery. To further improve financial capacity, deliver new supply and invest in existing homes, we have committed to a 10-year social housing rent policy with a convergence mechanism. That gives councils much needed certainty on their income to enable them to increase and manage their housing portfolios efficiently and effectively.

Co-operative Sector: Government Support

Debate between Alex Sobel and Jim McMahon

Tuesday 21st October 2025 Westminster Hall

[Jim McMahon]

If it is to work, the whole of Government has to own this agenda. It is important that the Treasury and the Department for Business and Trade take a leading role, and of course, the community anchor in the MHCLG is important too, but the truth is that communities function in a dynamic way, and every bit of Government across health and social care, education and our school system, and everything else that Government have oversight of, comes into play. I absolutely agree that if we want to double the size of the co-operative economy, and for that to be felt in every part of the country, the whole of Government has to own that agenda.

Across Britain, too many people feel that the economy no longer works for them—that decisions that shape their lives are made far away by investors they will never meet and for reasons they do not agree with. We see the results in hollowed-out high streets, in local businesses that are bought and closed by distant investors, and in a growing sense of powerlessness. If we want to rebuild trust in politics, we must rebuild trust in the economy alongside it. That means giving people real ownership and control over the businesses that shape their lives, because ownership matters; that is exactly why those with wealth fight to keep it. We want more people to benefit and to have a stake in the future.

The good news is that the UK’s co-operative economy is thriving. Today there are 7,400 co-operatives, with 16.6 million members, and 240,000 employees working hard in their communities. Together they span retail, housing and agriculture, and beyond that, of course, social enterprise, creating decent jobs and trying to provide food and shelter for millions of people in this country.

Going further, our 42 building societies, owned by their 27 million members, contribute £7.2 billion to the UK economy. They account for nearly a third of UK mortgages and maintain over a third of all bank branches. Of course, as my hon. Friend the Member for Rochdale (Paul Waugh) said, our credit unions serve their 2.3 million members and hold nearly £5 billion in assets. Do people know that there are more members of building societies and credit unions than there are people who voted in the last general election? This is not a fringe part of the economy; it is absolutely foundational.

After years without a mutual bank presence on the high street, the recent acquisitions of Virgin Money by Nationwide and of the Co-operative bank by Coventry building society mark a welcome return of mutual principles to mainstream banking on the high street. Employee ownership is rising, too, from 600 employee-owned firms in 2020 to 2,500 today. That shows what happens when Government action aligns with co-operative values: co-operatives are more likely to grow and more likely to survive.

However, despite our proud history, the UK now lags behind other countries. If we are to fulfil our potential, the Government must create an environment that enables co-operatives to thrive.

[Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)]

My hon. Friend knows that for many years I worked in co-operative development, including running co-operatives in Yorkshire and the Humber. To start new co-operatives, particularly co-operative legal forms, is a complex business. Under the last Labour Government, there was a significant level of support on the ground for co-operatives: the co-operative enterprise hub; Business Link had social enterprise units; and other forms of support. Does he agree that we need to try to establish new forms of co-operative support on the ground for people who want to start and develop new co-operatives?

[Jim McMahon]

The fact is that those of us who believe in co-operatives as a movement and as a principle get it, but we can be quite selfish about it, and we quite enjoy co-operatives and mutuals being the best-kept secret in the UK economy. Well, I am sick and tired of their being a secret and I want them to be mainstream. When somebody is setting up a business in this country, I want them to look at co-operatives and say, “That is the obvious choice for us and for our community.” I do not want co-operatives to be a sideline any more.

That is why co-operative development agencies and the whole of Government approach are important. It is also why education, access to finance, the surrounding legislation and, of course, creating a level playing field so that co-operatives can thrive are all important, too. We need to mainstream the idea of co-operatives and spread it out. If we do that, the economy will benefit even more, because co-operatives are more resilient and survive longer than many other businesses, and they return more to the UK economy, which can be reinvested in the community.

The barriers to co-operatives are well known; my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel) touched on some of them in his intervention. There is difficulty in accessing finance; obviously, there are issues around equity investment and the barriers that exist there. There is an outdated and fragmented legal framework, and there is limited awareness of co-operatives among banks, businesses and advisers, and even in Government itself.

So, I would be grateful if the Minister, when he responds to the debate, could update us on Government plans: first, to progress the Mutual and Co-operative Sector Business Council; secondly, to work to improve access to finance for co-operatives; thirdly, the Government’s response to the Law Commission’s review of the Co-operative and Community Benefit Societies Act 2014; and finally, the plan to establish the co-operative development agency within Government.

Beyond that, on building societies and credit unions, we need action on the Building Societies Act 1986 (Amendment) Bill, on fair limits for individual savings accounts or ISAs, and on reforming the common bond, so that more people can join building societies and credit unions.

On community ownership, we need clarity about the future of the Community Ownership Fund, so that local people can secure the assets that matter to them the most. On housing, co-operative models must play their part in delivering the Government’s promised ambition for 1.5 million new homes by providing homes that people do not just live in, but have a stake in. On agriculture, we should recognise that food security is national security, and support co-operation among farmers in the same way as the US Government do. This is about delivering a level playing field and doing what is needed to deliver on Labour’s pledge to double the size of the sector. Growth is critical, but growth must be shared by everyone who contributes, in every community across the country.

The co-operative model was born when ordinary people said that enough was enough, chose to build something better for themselves and their community, and recognised the benefit of the shared dividend that would follow. That same spirit of collective action is exactly what our country needs again. Last week, alongside Joe Fortune from the Co-operative party and Paul Gerrard from the Co-operative Group, I joined the Co-operative Group’s national members’ council in Manchester, chaired by Denise Scott-McDonald. The sense of purpose, partnership and hope was absolutely inspiring. People across the country want to do more to collaborate and to create new enterprises, not because it is fashionable but because it is instinctive to them. Let us make this the decade when co-operation again becomes a defining force in rebuilding Britain from the bottom up: politics done with people, as it always should be.