Investing in Britain’s Future

Clive Betts Excerpts

Thursday 27th June 2013 Commons Chamber

[Danny Alexander]

The existing statement of principles, which was due to expire this month, will be continued for the next year or so until this arrangement is fully in place. I hope the hon. Gentleman will welcome the long-term commitment to capital investment in flood defence, which of course will be of benefit to his constituents, along with those of many other hon. Members.

[Mr Clive Betts (Sheffield South East) (Lab)]

Not one mention was made of local councils in the statement or of the role they can play in helping to rebuild our infrastructure. Why does the Chief Secretary continue with the ridiculous mortgage guarantee scheme, which the Treasury Committee, the International Monetary Fund and the Governor of the Bank of England have all said is more likely to add to housing demand than increase housing supply? Why does he not use the billions of pounds available to allow local councils to build homes that people can afford to rent and put thousands of constructions workers back in work?

[Danny Alexander]

Local authorities were mentioned in my statement, particularly in relation to the single local growth fund. The money goes to local enterprise partnerships, which as the hon. Gentleman knows bring private sector businesses and local authorities together to spend the money. Part of the money going into the single local growth fund comes from the new homes bonus, so it will enable LEPs to invest in housing if that is what they choose as part of their local economic priorities. As for the mortgage guarantee scheme, it is important that, when it is hard for young people to put together the deposit they need to buy a house, we support them. That demand will also bring forward additional supply. That is the view of the Home Builders Federation, and I agree with it.