Oral Answers to Questions
Debate between Ann McKechin and Danny Alexander(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ann McKechin (Glasgow North) (Lab)
Q1. what fiscal steps he plans to take to stabilise the housing market.
The Chief Secretary to the Treasury (Danny Alexander)
My right hon. Friend the Chancellor is in Brussels today at ECOFIN, exercising the considerable influence that Britain enjoys as a full member of the European Union. The Government are committed to the vital reforms needed to address long-term structural issues in the housing market. They have already committed to investing £11 billion during the spending review period, and in the Budget we announced the Help to Buy scheme, a major new package to increase the supply of low-deposit mortgages for creditworthy households, which I hope the hon. Lady will welcome.
Ann McKechin
In evidence to the Treasury Select Committee, the distinguished commentator, Martin Wolf, described the Government’s mortgage indemnity guarantee as
“good politics and horrendous economics.”
Why are the Government pursuing a policy that is likely to increase the price of already over-inflated property, rather than financing affordable social housing that is needed by hundreds of thousands of people across the country?
Danny Alexander
The hon. Lady comments on affordable social housing, but I note that during Labour’s 13 years in office the amount of social housing fell by 421,000. This Government’s policies will increase the amount of social housing by 200,000—a record on which she should compliment us. On the mortgage indemnity guarantee, offering support to many households who cannot afford the large deposits now required is a thoroughly good thing, and by involving the Financial Policy Committee of the Bank of England in a review after three years we also have a guarantee of financial stability.