Budget Resolutions and Economic Situation

David Lammy Excerpts

Wednesday 18th March 2015 Commons Chamber

[Mr David Lammy (Tottenham) (Lab)]

As a former Universities Minister, may I begin by welcoming the decision on support for PhD students, which obviously builds on the progress previously made for masters students? That is hugely important to our economy. I also think that it is fantastic that the Mayor of London has been given greater powers in relation to skills and planning. The move on the London Land Commission is vital if we are to bring forward land for housing here in London.

I would like to have seen something in the Budget on Crossrail 2. It is hugely important that we build on the developments of Crossrail 1 and do not lose the expertise, so we must move on to Crossrail 2. The Chancellor was previously able to find £2 million to see the concept of that scheme move forward, and it would have been nice to see some determination at the Dispatch Box today, but it was not mentioned. There are also vital infrastructure developments here in London, including a bridge in the south-east and the Bakerloo line extension, but those, too, did not feature in the Budget statement.

The major issue facing London and the south-east is housing. Although the Chancellor set out his plans for a new ISA for first-time buyers, when one looks closely at the figures, it does not look as though that will go very far. The average London house is now being bought for £470,000. The average London earner is making £36,000. On any analysis, despite the ISA, which can be topped up to £15,000, a buyer would need a deposit of £75,000. It is going to take a lot of ISAs and a long time to get to that deposit. The Chancellor gives the impression that the Government support home ownership. My guess is that someone on average earnings might be able to find £1,500 to stick into an ISA, but it is unlikely that they will find £15,000, and if prices continue to rise, getting to that deposit might well take a decade or more.

Most people moving into housing in London this year are moving into private rented accommodation. We have heard nada—zero—from the Government about that lion’s share of our population who are in private rented accommodation. Here it is important to say that I am not talking about students or young professionals, often living in overcrowded circumstances. I am thinking of London’s working families, moving every six months because of shorthold tenancies with dodgy landlords. We heard nothing from the Government in relation to rent caps, the lettings crisis and that important group of Londoners—nothing on rents, nothing meaningful on house building and nothing for those who want to get on the housing ladder.

The real sadness is the travesty of social housing in this country. How many council homes did we build in London last year? Forty. Forty council homes were built in London last year. Because of the lack of grant to housing associations, the number of properties that they brought on to the market is also very low, relative to the need out there. At the same time, with right to buy and the huge discounts that exist, thousands of council houses are coming off the market. Of course, there is a discount. The discount available on council houses is £100,000. What happens? Someone buys their council house, gets the £100,000, and then sells it. In what other area of public policy can anyone get £100,000, handed across from the taxpayer? This Government took the bonds that we introduced for young children so that they would have assets, and they are prepared to give £100,000 to those who want to buy their own home and then sell it off.

So on housing, the biggest crisis facing our country, we have heard nothing. I said that I welcomed the handing over of greater powers in relation to skills to the Mayor, but that is handed over with one hand and taken with the other. It has not gone unnoticed that this Government have plans for a 24% cut in our further education budgets across the country—24%. How does someone get up the ladder if they are stuck in one of those poorly paid jobs in retail in this city and beyond? They often do it by going to night school. I say to the Minister, “Find me a college that’s open past 8 pm for an adult—not a young person—who is available to skill up, and I’ll give you a beer.” There are hardly any such colleges left in the country. The opportunity does not exist. If the Government were serious about vocational skills, they would attend to adults in adult learning who want to move up. Despite all the plaudits on apprenticeships, let us remember that the growth in apprenticeships in London is in customer services and hairdressing. I rest my case.