Regeneration

Debate between Grant Shapps and Simon Danczuk

Thursday 19th April 2012 Westminster Hall

[Grant Shapps]

I understand the point that the Committee Chair is trying to make, but the problem with his analysis is that he is prepared to completely disconnect the joined-up nature of the economy and its ability to succeed in different parts of the country. After he discussed High Speed 2, it was pointed out that there are severe pockets of deprivation in Birmingham—precisely where High Speed 2 will initially run. I do not seek to claim, and I hope I have not given the impression, that all spending in any area, whether Supporting People, High Speed 2—name your project—is regeneration spending. I seek to demonstrate that such spending is not just incidental to, or a coincidence of regeneration, but a fundamental part of it.

Perhaps that is where the Government disagree on a fundamental level with the Committee’s report. I believe that economic regeneration, and regeneration overall, are two sides of the same coin. Unless we build an economy that is capable of producing jobs, generating wealth and therefore benefiting all the citizens of our society, and unless we can do that across the country, rather than just in one corner or area of it, we will never get out of the problems so eloquently described by hon. Members today. The mayor of Newham addressed the Select Committee and said that after all these years of huge public spending, the outcomes are not much different.

[Simon Danczuk]

Does the Minister understand and accept the difference between economic development and regeneration?

[Grant Shapps]

Here we have the fundamental difference of view. I think that we cannot simply do regeneration to people or communities. When we try to do regeneration without improving the economic viability of an area, it simply fails and 10, 20 and 30 years later we are left in the same mess that we were in initially. There can be no finer illustration of that point than the housing market renewal programme. As I listened to some of the contributions from across the Chamber, my blood was starting to boil. The description of the housing market renewal programme that I heard this afternoon was so distant from the reality on the ground over the 13 years for which it was in place—in fact, it was slightly less than that—as to be a grotesque bending of the truth.

This is what one independent group called Save Britain’s Heritage highlighted about the housing market renewal programme. It said that Government inspectors condemned whole rows of terraced houses based on 10-minute visual inspections, even though it would have been cheaper and much more sustainable to refurbish those houses. In fact, the Select Committee in, I think, 2005 said that the designation of areas for demolition in effect increased deprivation in those areas. Many social landlords prepared the ground by voiding and boarding up properties. In turn, that undermined the housing market values. My hon. Friend the Member for Rugby (Mark Pawsey)referred to the hope value—he did not quite describe it in that way—of the private sector waiting for the public sector to come in and improve its returns. The Select Committee describes that as deliberately managing decline to make the notional benefits of wholesale demolition and redevelopment more attractive, ensuring larger windfall gains for the state.

Managed decline was precisely the right description of the housing market renewal programme, which I believe was a national scandal. In fact, I would go as far as to say that the housing market renewal programme was ultimately a huge disappointment. I have the figures with me. It destroyed 10 times more homes in this country than it built. Nothing—no programme—did more to destroy homes and communities in this country than the Luftwaffe in the second world war, but the housing market renewal programme did more housing destruction and community destruction than there has been at any time since the war.

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[Simon Danczuk]

The figures that the Minister presents show those cities during a period when they were being regenerated by a Labour Government, and that is why they were successful in increasing the business rate take—they were being helped and supported in regenerating by a Labour Government.

[Grant Shapps]

I am grateful to the hon. Gentleman for his intervention, which may just describe a fundamental difference in belief and understanding between the Government and the Opposition about what drives an economy. If by regeneration, the hon. Gentleman simply means how much public money we can pump in to create public sector jobs in order to continue to sustain an unsustainable future, then perhaps he makes a point. My understanding of economics and the economy says that unless we are able to create wealth in this country and produce jobs that are not simply the Government employing people but the private sector employing people, we will never see real growth.

It is good to see that 500,000 new jobs have been created in the economy since the election and that unemployment has fallen this week. That shift is fundamental; it is important and it happens through regeneration, which excludes things such as the regional growth fund. It includes the enterprise zones, to which hon. Members have referred. The hon. Member for City of Durham (Roberta Blackman-Woods) made some good points about whether such schemes can end up displacing activity, but I do not believe that that will be the case. Hertfordshire, in my part of the country, does not have an enterprise zone, and I do not think that all of our businesses will get up and move to an area that does. Enterprise zones are about creating the right economic dynamic for new businesses, which is really important.

Local enterprise partnerships are a really important driving factor. In trying to understand our approach to regeneration, hon. Members talk about having some big Government document. Essentially what the Select Committee report says is that our document is too thin. From what I have heard and read in the report, it says, “What we need is a big document. If we had a big document somehow the country would regenerate better.” That has been tried and it has failed time and again. What we are giving the communities in this country is the ability to run their own regeneration policy and to do it through schemes such as the enterprise zones and the local enterprise partnerships, which make a real and sustainable difference.

I have heard some very impassioned speeches this afternoon about what is happening in different parts of the country, including Northampton Alive, which shows how communities can and will, if they have the leadership and determination, come together to regenerate.

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[Grant Shapps]

My hon. Friend is absolutely right and completely gets it. The point is if this country is to thrive and survive it needs inward investment. It is a fantastic example of how a community can get together and work right the way across the local economy to bring in people from all different aspects—the local council, the county council, the MPs, the councillors, the business people, the academics—and actually grow an economy.

I am only a third of the way through the list of different things that I wanted to highlight let alone the many pages that are highlighted in this toolkit. UK Regeneration is a private enterprise that is able to raise money from the private sector and then get involved in regeneration. It is raising £30 million from Barclays Capital to regenerate areas in Nottingham. I understand that some people find it difficult to appreciate that to invest privately can be good not just for private investment but for regeneration. It is absolutely working and it is happening on the ground and we have heard the scale of ambition from UK Regeneration. The Empty Homes Agency is working hard to fill empty homes. In the context of regeneration, I am surprised not to hear from Her Majesty’s Opposition, or perhaps in the report, more of a welcome for the fact that 20,000 homes that were empty are now full. Since the election, the number of empty homes has fallen faster than at any time since 2004, because our regeneration policy, which says, “Let’s stop knocking down homes and instead fill the ones that are there,” is starting to work.

City deals—one has just been agreed in Liverpool, and more are coming along—are enormously important in delivering exactly the kind of localism that I know the Committee welcomes, because it has investigated how localism, which did not exist previously, could operate. When one adds up things such as local enterprise partnerships, enterprise zones and city deals, one starts to appreciate that it is a massive transfer of power. I know that it is difficult to lose the idea that everything must point to Whitehall and Westminster: “When is the Minister going to come up with an enormous report to back all this up?” Actually, transferring those powers to our great cities will enable a lot of regeneration to be done much nearer the ground.

[Simon Danczuk]

rose—

[Grant Shapps]

I want to finish, if the hon. Gentleman does not mind.

The Portas pilots were touched on but not mentioned in great detail. They are an attempt to get behind the regeneration of our town centres. Again, interestingly, the Select Committee Chairman did not refer to retail regeneration of run-down town centres large and small throughout this country. To me, that is what regeneration is all about, which is why I am proud that we have launched the Portas and that 371 towns have applied. They will have the opportunity to be Portas winners, and even if they are not, they will have the opportunity to take part in their own regeneration.

Brief reference was also made to the national planning policy framework, which is an enormous fillip for those who are keen for regeneration to take place in this country and who want to make it much easier. We have the get Britain building fund for housing and the Growing Places fund. My hon. Friend the Member for Harrow East (Bob Blackman) mentioned a road in Park Royal that was driven through, enabling much more private sector investment. That is the fund available. It is large—hundreds of millions of pounds—but again, the report barely refers to it.

Decent homes funding was mentioned by several hon. Members, including the Opposition Front-Bench spokeswoman. I absolutely agree that it is a huge priority. That is why, given that the decent homes programme failed to finish on target for 2010, I am proud that we have put another £2.4 billion into finishing the task. It still will not be quite finished, but given the overall economic circumstances, I would have thought that that said a huge amount about our approach to improving homes and regenerating communities. I have discussed how the new homes bonus can be used.

I had hoped to have time to mention all the comments made by hon. Members that I thought were good, but I see that time has beaten us. This Government are absolutely passionate about regenerating this country. We could not be more attached to its importance. We have considered what happened in the past; I think that my earlier comments show that I have considered in great detail the No. 1 so-called regeneration programme in this country, the disastrous housing market renewal programme. If Her Majesty’s Opposition’s response to the report is to call for more of the same, I say no, absolutely not. We will not continue to devastate communities in that way. Instead, we will hand them the power, the tools, the knowledge and, for many of the schemes that I have described, the money to get on and do it themselves.

Oral Answers to Questions

Debate between Grant Shapps and Simon Danczuk

Monday 4th April 2011 Commons Chamber

[The Minister for Housing and Local Government (Grant Shapps)]

Just to be clear, my hon. Friend raises an important subject, because eco-towns were being pushed on to areas without local communities having any say about them. Indeed, there was even a separate planning policy statement about eco-homes under the previous Government. We are not in the game of pushing communities into building homes in ways that are not compatible or sustainable locally. I am absolutely certain that my hon. Friend’s local authority will want to take notice of all local opinions and balance that against things such as the new homes bonus benefits, which it will get from building new homes.

[Simon Danczuk (Rochdale) (Lab)]

Does the Secretary of State still believe that abolishing the Audit Commission will provide savings of £50 million a year, or has that figure been revised?

[Grant Shapps]

The hon. Gentleman raises a point about the abolition of the Audit Commission, which I see is still going out to promote its cause in the weekend newspapers. The reality is that we need local audit that is efficient and brings competition into the marketplace. We see no reason whatever to have the country’s fifth biggest auditor owned by this Government.