I hear what the right hon. Gentleman says and I think the issue of accountability is important, but it can be dealt with in a number of ways. Instinctively, my view is that these things should be decided at a local level, and areas may come to different views about how accountability should be exercised. I do not think that it is up to us to prescribe one model for how that should happen.
Will the hon. Gentleman give way?
I am grateful to the Chairman of the Select Committee. When the members of his Committee looked at the big devolution of powers, including that of income tax to Scotland, did they ask themselves how England would settle such issues? Is there not a need for income tax to be settled at England level, just as there is not power in Scotland?
There are two aspects to that intervention. The first is that we did not look at income tax, although we said at the end of the report that, in terms of fiscal devolution, there is a case for considering income tax and VAT further. That is an issue for the future, but we recognise that it has to be addressed. The second issue probably strays into the area of English votes on English laws, which the Committee did not go into, but there is a case for devolution within England to more local areas irrespective of how Parliament addresses the other issue.
(10 years, 4 months ago)
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Order. I say to the right hon. Member for Wokingham (Mr Redwood) that it is slightly unconventional to come into the Chamber halfway through the debate; as he is aware, other people have spoken and a debate is normally about exchanging views and listening to other people. On this occasion, however, we have plenty of time and I will still call him.
I want to raise a number of points on which I hope the Minister can provide the reassurance that, in previous debates in the Chamber and before the Communities and Local Government Committee, he has not provided.
First, where is the evidence of a problem? The Homes and Communities Agency wrote to me to say that it had had no difficulties with section 106 agreements holding up any of its schemes. The volume house builders, to which I presume the Minister talks—I have been at meetings with them—say that the problem is not the section 106 agreements or the planning system, but getting customers who have access to finance and the confidence to spend it walking through their doors wanting to buy their homes.
The part of the industry most in difficulty comprises the small builders; the volume house builders and larger companies have simply reduced how much they are building. The small builders build on small sites which, by their very nature, do not have section 106 agreements attached to them, yet it is those schemes that have largely stopped across the country, again because of a lack of customers and the fact that banks, by and large, have withdrawn finance from that section of the industry. In that area, there has been almost no growth at all; in fact, the industry is now at a standstill. Once again, that is not due to section 106 agreements.
The hon. Gentleman is right that the main problem is the lack of effective demand because of the banking and mortgage collapse, but does he not see that, because of that, there is little or no profit in these prospective developments and that that is why they cannot afford the 106 agreement-type levels common before the bust?