But surely the hon. Gentleman must agree that the way of dealing with that is through the local plan-making system. Indeed, one of the amendments we might deal with later in our discussions this evening relates to the requirement that is finally being placed on local government by this Government to produce a local plan.
My hon. Friend is making an important point about localism. Do we not also need the local authority to determine what is truly affordable for its local housing market? I note that the Minister was not so forthcoming about his definition of “affordability”. He said in reply to my hon. Friend the Member for Westminster North (Ms Buck) that these homes in central London would not be sold at £450,000. What then is the point of a cap at £450,000—why not £150,000?
Absolutely. My hon. Friend makes an excellent point, and it shows why a local test of the need for starter homes is so important.
I remind the Minister that we voted against the programme motion.
Amendment 53 safeguards the replacement of like-for-like housing; homes cannot be sold if their sale value is less than the cost of replacing the original property. Amendment 55 seeks to exempt certain types of specialist housing from “high value” determination. Owing to the extremely limited time available today, I will not speak in detail on those amendments. I will focus instead on amendments 131 to 141, which leave out all the clauses in chapter 2 of part 4, effectively removing the chapter from the Bill.
Labour Members are not against local authorities making sensible decisions about their assets, but that is not what the clauses in this chapter of the Bill would enable. They will force local authorities to sell off much-needed council housing, even when they have huge waiting lists. Glyn Robbins, estate manager of Quaker Court, stated that many council homes in London in places such as Quaker Court are likely to be deemed high value, and that is where the Government’s legislation will have the most severe impact.
Of course, this is not just about the loss of council properties in high-value areas. The impact of the policy would surely be that those properties would move into the privately rented sector, meaning that the housing benefit bill is likely to increase to enable the same properties to be rented out.
My hon. Friend makes an additional point about how truly appalling and nonsensical the policy is. I hope to come to that a bit later.
Glyn Robbins said:
“This is about as high-value an area as you’re going to find. So every time we get an empty council flat, instead of that home going to the next person on a waiting list in Islington that has 18,000 people on it, it’s going to be sold into the private market.”
The Chartered Institute of Housing, among others, has also expressed concern that the Government’s expectation of the number of houses to be built as a result of forcing the selling off of so-called high-value housing is much, much too high. It says that the Government appear to have vastly overestimated the number of homes that will become vacant in the category of high value that might be defined within any local authority area, which in turn will have a negative impact on the replacement of sold-off homes by housing associations. The chief executive of the Chartered Institute of Housing stressed that more funding needs to be made available for affordable housing and that
“full compensation for housing associations will be absolutely vital if they are going to be able to build more affordable homes for people who can’t afford to buy”.
As far as commentators are concerned, the provisions of this chapter of the Bill are likely to lead to less council housing being available and to any replacement housing that does materialise being out of the financial reach of many people. We know that housing waiting lists will become longer and people will be forced to stay in temporary accommodation for longer, which of course will mean a greater cost to local taxpayers. Councils will have less of an incentive to invest in stock, as it might push the value above the arbitrary thresholds for forced sale. Moreover, the reduction in the number of social rented homes available will intensify competition for private rented sector homes at the bottom of the market, driving up rents.
(9 years, 7 months ago)
Commons ChamberIt is a pleasure to speak in this debate. This topic is one of the most important facing our country. We must skill the next generation for the jobs of the future. I am pleased to follow my hon. Friend the Member for Liverpool, Walton (Steve Rotheram), who set out clearly some of those challenges.
We know that the UK is facing the worst skills crisis for a generation, with skills levels failing to support the diversity of the modern economy and secure job opportunities and investment for the future. A number of recent reports, such as those of Lord Adonis and the OECD, clearly showed that skills shortages were the main barrier to growth among employers in our top 10 major cities. They made it clear that we need to do a much better job of linking the development of relevant skills to growth sectors in our economy. Only then will we deliver the economic growth that is needed for the future.
Nowhere is that more exemplified than in my own area of the north-east of England. We had a very interesting report from the local enterprise partnership last year, which set out the challenge very clearly, stating that, for the north-east, it
“is not just the number of jobs but the quality of these jobs”
Improving the quality is fundamental to its plan. It says:
“the area needs to increase the volume of skills at a higher level to address a changing demographic, in particular higher skills required by employers of younger people and those moving into and between work”.
That clearly sets out the situation we face. The report also highlighted the fact that productivity levels are a real problem—we have heard about that today—as are the skills levels. The report mentioned the disparity in skills levels between more advantaged areas and disadvantaged areas, including areas such as the north-east. It states:
“The proportion of secondary schools judged as good or outstanding for teaching in the least deprived areas is 85%—almost equal to the national average of 86%. In the most deprived areas however, this drops to 29% compared with the national average of 65%.”
This shows the “massive…percentage point difference” between the proportions achieving five A to C grades at GCSE in the average areas in comparison with the most deprived areas. The Government have not given that problem enough recognition when it comes to putting additional resources into the areas that need it most.
Overall, there has been an increase in levels of educational attainment in the north-east and a fall in the proportion of adults with no qualifications. As I said, however, we need to increase the volume of higher-level skills to address the changing demographics in the region, with a particular focus on key sectors, particularly the STEM—science, technology, engineering and maths—sector. In many areas of the UK, there are too few people achieving qualifications in STEM subjects, particularly among women.
My hon. Friend is absolutely right to focus on these issues. Does she think that it was a retrograde step when the previous Government scrapped Aimhigher? We all talk about aspiration, but in many of the communities my hon. Friend mentions, we need to raise those ambitions further.
I agree with my hon. Friend that it was a hugely retrograde step to get rid of Aimhigher, as indeed it was to scrap other measures that supported young people, particularly from disadvantaged backgrounds, into taking up opportunities in further and higher education.
The CBI cites major skills shortages in STEM subjects as being a major barrier to growth, while the Royal Academy of Engineering forecasts that the UK needs an extra 50,000 STEM technicians and 90,000 professionals each year just to replace people retiring from the work force.
We are really fortunate in the north-east in that there have been more new technology company start-ups than in any areas of the UK outside London. However, due to skills shortages, organisations frequently need to recruit from outside the region—and increasingly overseas—to fill the skills gaps in the area. We want to see young people skilled, and the reskilling of those who are currently seeking work, so that they can find employment in some of the key sectors that are growing in the north-east, such as advanced manufacturing, pharmaceuticals, our university and technology sector, professional services, tourism, creative and digital industries, logistics and the renewable energy sector. Improved investment and additional skills are needed if we are to achieve the 100,000 additional jobs that the LEP wants to see across those sectors over the next 10 years.
We also want an expansion of high-quality vocational education and youth apprenticeships to establish a stronger non-university route into employment. That is not to say that higher education is not important—I think it is, and we must continue to invest in it—but we want to ensure that young people know that there are wider training opportunities available. They might want to know that they can combine vocational education in the workplace with education in the university and further education sector. My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), one of our Front-Bench team, produced a wonderful report last year called “Robbins Rebooted” that really highlights the mixtures that we are capable of achieving when we are imaginative about training opportunities for young people to take them from school into the workplace. They can be then assigned to college courses to ensure that they get the skills levels they need.
Let me make two brief points before I conclude. Funding from Europe is really important in the north-east and sustains a lot of our skills and education. In future debates about staying in Europe, it is really important that European social fund financial support is put into the mix, because we could not sustain the skills levels without it.
Devolution is very much on the agenda in helping areas to link the skills that are needed to future economic development. The Association of Colleges has produced a very helpful report for all of us that considers what devolution could bring by giving local people much more knowledge about the industries there are likely to be in the area in the coming years and how they can acquire the skills for themselves and for their children and grandchildren so that they can take on those opportunities.
My final challenge is for the Minister. Will he say what he is going to do to sustain investment in the infrastructure supporting education and skills development and to ensure that those opportunities are spread into the most deprived areas of our country?