Debate on the Address

Debate between Graham Allen and David Lammy

Wednesday 27th May 2015 Commons Chamber

[Mr Lammy]

The hon. Gentleman is right: the powers must sit somewhere. As he knows, however, I also referred to the 33 London boroughs. It is of huge concern that local government was stripped of so much during the last Parliament, and that the ability to deliver local services properly, with power where it should be—closest to the people—does not exist to the extent that most borough leaders would wish. Both the Mayor and those who lead our local authorities need to have that power and ability in the future.

Let me also remind the hon. Gentleman that he was involved in a report by Gerard Lyons which concluded that it would be a huge mistake for this country to exit Europe, and that London alone would lose £210 billion in revenue. The hon. Gentleman is known for his wit, but I hope that he is also known for his detail. The report concluded that it would be a disaster for us to go down that road. There is real concern about the fact that, as we head towards the referendum, big decisions in the City are effectively on hold because of the risk to our national economy. I hope that we reach a decisive conclusion as soon as possible, and that we opt to stay in Europe, because it seems to me that that must be in the interests of all of us.

[Mr Graham Allen]

Before my right hon. Friend moves on to all things mayoral, will he return to the core of the principles involved in devolution? Is it not contradictory that a Government that wish to devolve power should insist, from the centre, on the form of leadership that is to apply in the localities in question? Does my right hon. Friend agree that we should offer devolution options to the cities, regions, counties and other localities of the Union? If they wish to choose the mayoral model, by all means let them go ahead, but they may prefer another leadership model, or perhaps a committee model. Surely the decision should be made by those to whom powers are being devolved, rather than from the centre.

[Mr Lammy]

That is a very good point. Some people are using the phrase “hyper-devolution”, which means devolution to communities as they negotiate the power that must rightly lie with them.

Let me now deal with what I consider to be a major issue in the Queen’s Speech. Our country faces a huge structural economic problem in its housing market. We are failing badly the people beyond the House who are young and want to get on to the housing ladder, but who are also the working poor, unable to secure social housing or to buy affordable housing. It is of huge concern that the average age of a buyer in London was 39 this year, and that if we continue on the same trajectory, it will be 52 in a generation. It is also embarrassing and shocking that we built only 40 council houses in London last year. There is much talk about affordable housing, but all hon. Members will understand that rents at 80% of market value are not affordable for most Londoners, who on average earn £32,000 a year. It beggars belief that the Government should propose to extend the right to buy to the 1.3 million people in housing associations. We can look at the matter from a Thatcherite point of view. There is no other area of public policy where someone can get as much as £100,000 from the taxpayer for buying their council home. We are to extend that to people in housing associations. What will that do to supply? How will that contribute to the huge problem of affordable housing? What is our vision for social housing? It appears that there is no vision for social housing and that we are effectively saying we no longer believe in council homes and we no longer believe in social housing in housing associations.