Devolution: English Cities

Baroness Warwick of Undercliffe Excerpts

Wednesday 17th July 2019 Grand Committee

[Baroness Warwick of Undercliffe (Lab)]

My Lords, the noble Lord, Lord Heseltine, has done the House a service in securing this debate so soon after the publication of his timely and visionary report, which I read with great interest. I agree with his description of the challenge facing us here today: to harness and unleash the talents of people across England and ensure that communities nationwide feel the benefits more deeply. I declare an interest as the chair of the National Housing Federation, the trade body for housing associations.

Devolution has empowered a new can-do spirit in our city regions, enabling local people to tackle local challenges through partnerships and policies which make sense for them. It has been uplifting to witness regions confront issues such as housing, social care and transport in a way that makes the most of the strengths of their region. However, there is of course more to be done. Many city region mayors and combined authorities remain beholden to Westminster for the critical investment and decisions that their local communities need. Many more areas are yet to benefit from any of the flexibilities enjoyed by combined authorities. I hope, therefore, that in his response to the debate the Minister will agree that the benefits of devolution should be extended more deeply where they already exist, and more widely where they do not, so that every place is given the opportunity to thrive.

As chair of the National Housing Federation, I am well aware of the value of empowering cities and regions. Housing associations are not-for-profit providers that invest any operating surplus into their local communities. They are shaped by the communities they serve and, in turn, shape the homes and services they provide to meet the needs of their community. They are busy putting into practice the principles of empowering people and communities across England every day.

The report by the noble Lord, Lord Heseltine, observes that reform of our local political institutions has taken place,

“at the speed of the slowest ship in the convoy”.

I would like to talk about the flagships of the convoy: the pioneering partnerships between housing associations and local authorities. There are many lessons to be learned on the opportunity and benefits that these can realise. I draw the House’s attention to Manchester. It is here that the flagship of our convoy in England can be found: Greater Manchester Housing Providers. Founded in 2010, this group of more than 25 housing associations and ALMOs manages one in every five homes in Greater Manchester. It works closely with the Manchester mayor and the Greater Manchester Combined Authority to ensure that the region’s housing need is met and to offer services far beyond homes. The results of this partnership are impressive. Last year, it helped nearly 2,000 homeless people in the region into homes, supported another 2,000 residents into employment, and helped more than 1,000 community groups in the region.

Manchester has very ambitious plans across housing, driven partly by need but also by the acknowledgement that housing provides wider community and economic benefits. Secure housing is the bedrock of a thriving entrepreneurial community. There can be no stronger evidence of the real human impact that empowering our cities can have. However, neither the GMCA nor the GMHP are resting on their laurels. Last year, a new partnership was announced that will create a joint venture housing developer, which will add 500 homes to the region each year.

Co-operation between housing associations and public sector housing providers is not restricted to Manchester. Across England, housing associations, local government and private developers are partnering to meet the needs of local areas. Look to East Anglia, where the Iceni Partnership of three mid-sized housing associations has delivered 3,500 affordable, high-quality homes over 15 years; to Gateshead, where a partnership of Gateshead Council, the Home Group housing association and private developer Galliford Try will deliver 2,000 homes over 15 years; and to Brighton, where the Hyde Group housing association and Brighton & Hove City Council established a joint venture to deliver 1,000 new homes by 2020, of which 100% will be affordable.

The benefits of this partnership working are clear: local organisations empowering local communities, delivering the services and support that benefit local people. But there is potential for much more of this type of working. The good news is that housing associations stand ready to work more closely with private partners and local government; indeed, they report the difficulties they face in partnering with local authorities as a key obstacle in increasing housing supply. The National Housing Federation is already convening representatives of local government and housing associations to find ways of working together more closely. It would be of great benefit if the Minister could commit to supporting local authorities to do more of this type of working.

Housing associations are learning first-hand the effectiveness of partnership working, but they could achieve so much more with the right support from central government. The National Housing Federation’s submission to the comprehensive spending review calls for a £10 billion national regeneration fund over 10 years. The noble Lord, Lord Heseltine, said earlier that the Government must lead. I hope the Minister can assure the Grand Committee that the Government support such a regeneration fund as a clear indication of that leadership. Ultimately, effective partnership working relies on mutual trust and understanding. Will the Minister commit to supporting this by providing local authorities with a sustainable future funding settlement, thus enabling them to lead and co-ordinate place-making in every one of their communities?