Budget Resolutions

Bob Blackman Excerpts

Monday 1st November 2021 Commons Chamber

[Michael Gove]

I will try to make a little bit more progress.

It is also significant that, if we are to level up, we must ensure that we have appropriate investment not only in business itself, through the funds I have mentioned and the initiatives I have outlined, but in transport. We must ensure that the private sector is firing on all cylinders, and that means ensuring in particular that our great city regions have the transport networks required. That is why my right hon. Friend the Chancellor has devoted £5.7 billion over the course of the spending review period to supporting the ambitious plans put forward by metro Mayors and others to improve transport.

More than £1 billion has been allocated to the Mayor of the West Midlands Combined Authority, and more than £1 billion also to the Mayor of the Greater Manchester Combined Authority, Andy Burnham. Mr Burnham said last week—a point he made on Twitter and on broadcast; he was happy to comment on the spending review, unlike the hon. Member for Croydon North—that this was a “very positive first step.” He said:

“This feels like a breakthrough today…this is a big down payment”

on the infrastructure we need.

Mr Burnham welcomed that investment, and of course alongside it we had £830 million for West Yorkshire, £570 million for South Yorkshire, £710 million to improve transport in the greater Liverpool region and £300 million for Teesside. All those investments will help the Mayor of Greater Manchester, as he rightly wants to, ensure a Transport for London-style approach to the delivery of transport in that great region.

On top of that, as the Chairman of the Housing, Communities and Local Government Committee, the hon. Member for Sheffield South East (Mr Betts), pointed out, we have £4.8 billion going to local government over the spending review period. This is necessarily an injection of cash to help local government ensure it can play its part in levelling up, and to ensure that it is supported by thriving businesses. We have also reformed business rates and moved towards a three-year evaluation, relief on improvements, including improvements that will help to deal effectively with climate change, and a 50% reduction for small businesses in the most affected sectors.

All that comes alongside a commitment to additional spending from my Department to help those most in need. We also have £630 million a year allocated over the next three years—that is £1.9 billion in total revenue—to help to deal with homelessness and to eliminate rough sleeping. There is also additional capital investment specifically targeting those who have problems with drug use and those who have been in custody, to ensure that we can help them into the accommodation they need to deal with the challenges they face. Overall spending in this area is 75% higher than pre-pandemic levels.

[Bob Blackman (Harrow East) (Con)]

rose—

[Michael Gove]

I am more than happy to give way to the Member of this House who has done more to deal with homelessness than any of us.

[Mr Speaker]

Just before you do, may I just say to the Front Benchers that I am getting bothered, as we have a lot of Members I want to get in? I am enjoying this very much and it is great entertainment, but I am getting bothered, as this is about Back Benchers as well and so I hope we are going to save some time for them. I think we are nearly 30 minutes in.

[Bob Blackman]

Clearly, the new money for combating rough sleeping is extremely welcome, as is the money given for new housing. Will my right hon. Friend commit to rolling out Housing First across the country, now that that pilots have been seen to be such a success?

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

That last speech demonstrates what I have always believed: the Liberal Democrats will say one thing to one person and completely the opposite to other people.

I welcome the measures in the Chancellor’s Budget that pertained to local government spending, including the additional funding of £1.6 billion a year for adult social care. The reality is that most of the people who work in adult social care are on the lowest possible wages, so the increase in wages that they will receive and the opportunity to earn more money are good news, and I am glad that the Government are funding this appropriately. However, it is important for the Government to spell out the full detail of how adult social care will be funded not just for this year but for the years ahead. That is vital.

We know that as a result of the pandemic, an estimated 300,000 people who are renting privately are in serious arrears and at risk of losing their homes. The key here is the funding programme for housing, and particularly the affordable housing programme. I am delighted that we will see 1 million new homes created. I hope that it will be 1 million new houses, instead of multi-storey high-density flats that are unacceptable for people with families to live in. I also want to see the Government build 100,000 new homes for social rent, so that people can afford their rent rather than having to rely on benefits. The corollary of that is that we should reboot the right to buy, so that when people move into those homes, they are given the opportunity to buy them at the price that applies on the day they move in, however long it takes them to be able to afford to buy their own home.

The Government are to be commended for their work on combating rough sleeping. The Everyone In programme was a remarkable achievement, but we must ensure that we build on that and end rough sleeping for good by 2024. After all, that is the Government’s commitment. As I have said, Housing First needs to be funded and rolled out right across the UK. The reality is that every case of homelessness is unique, and everyone will need particular help and guidance. Some people just need a pointer in the right direction; others need a network of help and support to rebuild their lives.

I also welcome the confirmation of the £5 billion for replacing unsafe cladding. However, I remind Ministers that there was a promise not only of the £5 billion but of the details of the forced loan scheme for those people in low-rise blocks. We have still had no answer from the Chancellor as to how that funding will be made, the conditions that will be imposed or the mechanism by which it will take place. While the funding is welcome, and so is the tax on developers, it will not raise sufficient money to combat the amount of money that is having to be paid out. Equally, people still face the challenge of receiving huge bills for the replacement of unsafe cladding, and there is a huge backlog of that work still to be done.

I will raise two other matters before I sit down. The first is my disappointment that, after much lobbying, the Chancellor has still not seen fit to put right the long-term problem of refunding Equitable Life policyholders, who are still owed more than £2.8 billion. This issue is not going to go away; we will campaign on it until such time as the Chancellor comes up with the money that was promised in the first place.

Finally, I will just mention one tax increase in the Budget that is extremely welcome: the tax on tobacco. Often, we do not hear that announced from the Dispatch Box, but I am glad the Chancellor went there, increased the tax and carried on with the escalator. The fact is that smoking-related diseases cost the national health service £2.6 billion a year and the care budget £1.2 billion a year. I would like to see a levy put on the profits of the tobacco companies and the money put into smoking cessation services. That would be a welcome tax, and something we could do because we now sit outside the European Union. We would not have to pass that tax on to the smokers; we would hit the profits of the big tobacco companies.

[Madam Deputy Speaker (Dame Rosie Winterton)]

What with interventions and points of order, we are not really doing that well. After the next speaker, I will reduce the time limit to four minutes. I call Clive Betts.

--- Later in debate ---

[Lucy Powell]

The hon. Gentleman might groan, but he was not here for the better jokes at the beginning of my speech. In future, he needs to be here at the beginning of the wind-ups—that is one of the rules of this place.

If the Government’s record is anything to go by, they will deliver neither truly affordable homes nor levelling up. Their house building targets look dead in the water. Their definition of affordable is anything but, aligned with overheated markets, not with what people can actually afford. The Secretary of State made no mention of social housing in his speech; perhaps that is because he is projected to build only 6,000 new ones a year—far fewer than the number lost through the right to buy. The Secretary of State heralded the brownfield sites fund, yet he did not mention the fact that more than three quarters of that money currently goes to the south-east. That is hardly levelling up. Without reform of the arcane compulsory purchase order laws, too much of that cash will end up in the hands of the speculators who buy up land on the cheap.

For hard-pressed renters hit by the pandemic, we heard the Chancellor take credit for a small relief fund, but he failed to mention that he has also frozen local housing allowance again. Add that to the cut in universal credit and the almost 1 million renters who already face a gap between their income and housing costs now face real hardship. It is no wonder that we have seen homelessness rise on the Government’s watch—

[Bob Blackman]

indicated dissent.

[Lucy Powell]

I am afraid we have.

We heard nothing in the Budget about stamp duty—perhaps because the last stamp duty cut drove house price inflation and volatility, according to the OBR. [Interruption.] Government Members should look at the figures. The Chancellor fuelled a buy-to-let and second-home bonanza while first-time buyers lost out. The Government’s disastrous starter homes pilot scheme—non-starter homes, more like—promised 200,000 homes for first-time buyers and cost £170 million, yet it did not build a single starter home. The Government’s new pilot for first-time buyers, the first homes scheme, is not working, because as house prices rocket, the discount is all but wiped out. It is no wonder we have seen home ownership fall under this Government. Do Government Members want to say anything about that? No, because it has. The Conservatives can no longer claim to be the party of homeowners, nor of renters, because they have become the party of landowners, landlords and speculators.

The Government might have the soundbites, the slogans and the Instagram posts, but they do not have a plan. They cannot level up while they are scaling back; they cannot level up while growth forecasts are so down; they cannot level up while hiking up taxes and cutting universal credit; they cannot level up without addressing the housing crisis; and they cannot level up while denying children in the midlands and the north the chance to catch up, which is what they have done. Government Members might laugh about it this evening but it is absolutely shameful. Although the Government might talk the talk, time and again they do not walk the walk. Levelling up is fast becoming a rather empty campaign slogan, and this bitty, piecemeal Budget does not amount to more than the sum of its parts.