Ministry of Housing, Communities and Local Government

Gagan Mohindra Excerpts

Tuesday 24th June 2025 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

I commend the Chair of the Select Committee, the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi) for bringing forward this estimates day debate. It is a pleasure to serve under her stewardship on that Committee.

This country continues to feel the impact of Labour’s disastrous and anti-growth policies. The day-to-day spending of this Department is increasing by more than £2.4 billion—an increase of 22%—which is welcome, but it is clear that Labour’s plans to save on our planning system and the cost of local government are once again a false promise. The £2.3 billion extra being given in local government resources grants will not help our communities and local people, as £500 million of it is just to fund Labour’s detrimental increase in employer national insurance. That tax is hurting every business up and down this country, and it is placing unsustainable pressure on key sectors, such as the care industry and those who provide early years care.

Labour continues to U-turn on its commitments and policies. The impact of its changes to personal independence payments and its cruel cuts to winter fuel payments can be seen in the £800 million increase in costs for adult social care. That is yet another example of Labour’s headline mistakes costing money. An additional £399 million has already been allocated for the affordable homes programme, and continual rises for that are unsustainable. Labour will not deliver its target of 1.5 million new homes, with Savills recently predicting that as few as 840,000 homes could be built. That is significantly less than the 2.5 million homes and 750,000 affordable homes built under the last Conservative Government.

[Joe Robertson (Isle of Wight East) (Con)]

Does my hon. Friend agree that the problem with the Government’s housing policy is that they are failing to identify the right places to build the right homes? Until they do that, they will not deliver these eyewatering numbers, especially if they are relying on greenfield rural sites.

[Mr Mohindra]

I agree with my hon. Friend. We are fortunate that the Minister has a background in local government, so he understands those pressures. I look forward to further clarification on grey belt and building on brownfield first, which every constituency MP wishes to see, but it is not yet transposed on to local plans and the growth ambitions of this Government.

I was about to come on to green belt and the changes to the national planning policy framework. Those changes will not solve the problems that we all have identified as the bottleneck in increasing development on non-green-belt land. Labour’s policies unfortunately simply cause damage.

In the spring statement, the Chancellor claimed that the planning reforms would be the main driver of the reduction in borrowing that she has promised. However, there is no obvious reduction yet in the money given to local authorities, with the amount estimated for the day-to-day spending of local government up 22% from the main estimate last year. Although the Treasury might celebrate that as being 3% less than budgeted at the spending review, this dramatic increase, along with the increases of 30% in communities day-to-day spending and 27% to the communities capital fund, is simply unsustainable.

Labour continues to show how it prioritises areas where it has support to the detriment of rural areas, such as in my constituency, and areas in need of support around the United Kingdom. The cuts of £101 million in the levelling-up fund and £183 million in the UK shared prosperity fund are disappointing, and the non-delivery of the services grant and the rural services delivery grant will place pressure on services that are already struggling in rural and semi-rural areas such as my constituency, including bus services.

Instead, Labour is rewarding poor financial management by Labour-run councils and mayoralties across the UK, with £823 million being used for a recovery grant and a funding floor and the Labour-controlled Greater Manchester and West Midlands authorities receiving the first integrated settlements, which could cause an increase of over £400 million in spending.

Labour says that it is cutting local government costs by creating unitary authorities, but that is just placing greater control in their hands at the expense of local democracy. This estimate shows how little control Labour has over local government spending—and I will have to finish on that point. I look forward to hearing from the Minister how he will deal with these matters.