Oral Answers to Questions

Greg Clark Excerpts

Monday 8th February 2016 Commons Chamber

[Christopher Pincher (Tamworth) (Con)]

2. What progress his Department has made on the Help to Buy and Right to Buy schemes.

[The Secretary of State for Communities and Local Government (Greg Clark)]

I associate myself with your sentiments, Mr Speaker, about our former colleague, Harry Harpham.

This Government are committed to increasing home ownership. More than 130,000 households have purchased a home through Help to Buy since 2012. We have just launched London Help to Buy, and I can tell the House that in the first seven days, 15,000 people have registered to take advantage of it. Since April 2010, more than 53,000 homes have been sold to tenants under Right to Buy, and a voluntary Right to Buy scheme will give 1.3 million more families the opportunity to do so.

[Christopher Pincher]

Bovis Homes, a major employer in my constituency, commends Help to Buy as a tremendous initiative, but we all know that we need more small-scale developers in the supply chain to increase the supply of homes to which Help to Buy can apply. Does my right hon. Friend agree that large-scale developers franchising some of their plots to small and medium-sized developers is one way of getting those small-scale developers into the supply chain?

[Greg Clark]

I do agree with my hon. Friend. One of the effects of the financial crash was that many small builders left the industry, and we need to get them back and involved. My hon. Friend has a good idea. The direct commissioning scheme that we have announced, whereby we can carve up public sector land into small plots so that small builders can take advantage of it, will be a big step forward, too.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

We should have an end to these excuses. There is a generation in the rented sector who have no hope of owning their own homes. Is it not about time that we had some bold, imaginative policies? How many new towns are there? How many new generations of building are going on? How many houses are being built in Ebbsfleet, for example, which is supposed to be a new town? Will the Secretary of State answer that?

[Greg Clark]

Over the last five years, home ownership, and particularly house building, has been revived from the crash that happened under Labour. The hon. Gentleman should welcome the planning reforms that we made, which have increased planning permissions by 50%. He should welcome the introduction of starter homes to give first-time buyers a foot on the housing ladder. He should welcome the extension of Help to Buy, which has helped so many people to achieve their dream of a home of their own.

[Antoinette Sandbach (Eddisbury) (Con)]

Right to Buy does not apply to rural exception sites. Does the Secretary of State therefore agree that affordable housing in rural areas is absolutely key?

[Greg Clark]

I do agree with my hon. Friend. In providing homes in all communities for all types of people we need to make sure that we have diversity of tenure, especially in rural areas. My hon. Friend is right.

[Andy Slaughter (Hammersmith) (Lab)]

The idea that any of these schemes are affordable is an Orwellian myth. In my constituency, people need an income of £70,000 to be able to get an affordable home, and that is going up to £90,000 before long. To whom is that affordable?

[Greg Clark]

I do not think the hon. Gentleman does a good service to his constituents. He should know that under the combination of Help to Buy and shared ownership, the deposit that a London first-time buyer can be required to pay on the average price paid of £385,000 is as low as £4,800. The hon. Gentleman would do his constituents a service by promoting these schemes to them.

[Robert Neill (Bromley and Chislehurst) (Con)]

I welcome my right hon. Friend’s comments about the importance of the small and medium-sized building sector. Does he agree that one of the most damaging things that could happen to that sector’s involvement in London would be the imposition of a 50% affordable housing target across sites, which would have no relation to the viability? As experienced under Ken Livingstone, this would actually drive developers away from bringing sites forward.

[Greg Clark]

I completely agree with my hon. Friend. It is not a matter of speculation but a matter of fact, because, as he says, the last Mayor tried that, and the amount of available housing in London fell. We want to provide homes for Londoners. The present Mayor has an exemplary record in providing affordable homes—indeed, homes of all types—ahead of the targets, and the £400 million that is being invested in the 20 housing zones across London is a tribute to his tenacity.

[Ben Howlett (Bath) (Con)]

I am pleased to say that hundreds of families in my constituency, and in the local authority area of North East Somerset, have benefited from the Help to Buy and Right to Buy schemes, but young families still cannot get on to the housing ladder because of the high cost of housing. Will the Secretary of State meet me, and other Members whose constituencies contain high-value areas, and will he undertake to roll out the two-for-one guarantee in those areas?

[Greg Clark]

I will certainly meet my hon. Friend and his colleagues. It is essential for homes to be built in every community, so that young people and rising generations throughout the country have a chance to continue to be part of the communities in which they were born and raised.

[Mr Speaker]

Mr Stephen Pound? Not here. Where is the fellow?

--- Later in debate ---

[Andrew Bridgen (North West Leicestershire) (Con)]

14. What estimate he has made of the average difference in council tax paid by residents of urban and rural areas.

[The Secretary of State for Communities and Local Government (Greg Clark)]

The average council tax has long been higher in rural areas than in urban areas. In response to the consultation on the local government financial settlement, several councils and hon. Members have pointed out the extra costs of providing services in rural areas—something that I am determined to address.

[Andrew Bridgen]

Figures from the rural fair share campaign show that those who live in urban areas receive 45% more funding than their rural counterparts, while at the same time those rural residents pay on average £81 more in council tax. Does my right hon. Friend agree that my constituents have every right to feel aggrieved about that inequality? What steps will the Government take to address that issue?

[Greg Clark]

I have been looking carefully at the responses to the consultation on local government finance, including that from Leicestershire, which seems to make a perfectly reasonable point that the essential requirement is that the underlying formula should reflect the different costs of providing services in different places. If my hon. Friend is patient and comes back a little later, I shall have more to say then.

[Fiona Mactaggart (Slough) (Lab)]

Is it not a fact that in practice, despite their rhetoric, Conservative councils are charging more than Labour councils? That is what the question from the hon. Member for North West Leicestershire (Andrew Bridgen) conceals.

[Greg Clark]

It is a long-established fact that Conservative councils offer lower council tax than Labour councils, which accounts for their success and their majority in local government.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Can my right hon. Friend say whether the gap between urban and rural authorities is widening? If it is widening in favour of urban authorities, will not the council tax payers in rural authorities, who are going to see their council tax rise considerably over the next three years, have to conclude that they are subsidising higher-spending urban authorities?

[Greg Clark]

My hon. Friend knows that we are moving to a world in which councils will be funded by council tax and business rates. It is essential that the formula underpinning that is fair to all types of authority. That has been very clear in representations that he and others have made.

[Mr Steve Reed (Croydon North) (Lab)]

The Tory election manifesto promised to keep council tax low, so will the Secretary of State explain to the House why he has just written to town halls up and down the country saying that he expects them to force council tax up by more than 20% over the next four years?

[Greg Clark]

I have written no such letter. I remind the hon. Gentleman that council tax doubled under the previous Government. On all the forecasts that we have made, it will be lower in real terms than it was at the beginning of the last Parliament.

[Mr Speaker]

Last but not forgotten, I call Paula Sherriff.

--- Later in debate ---

[Joan Ryan (Enfield North) (Lab)]

T2. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Communities and Local Government (Greg Clark)]

Since the beginning of January, the Cities and Local Government Devolution Bill has been enacted and given Royal Assent, the Housing and Planning Bill has passed its Third Reading, the voluntary housing association right to buy has been launched in five areas, and direct commissioning of housing has been launched.

I take this opportunity to pay tribute to the life and work of Mrs Hazel Pearson OBE, who died on Friday at the age of 92, having retired as a Middlesbrough councillor only last year at the age of 91. She was a formidable leader of Conservatives in Middlesbrough, achieved much for her town and was greatly respected by all parties and by her community over 47 years of service. She represented everything that was best in public service.

[Joan Ryan]

Enfield has the fourth highest population figure of all London boroughs. The last census said we had seen a population increase of more than 14% in one decade. That rapid population growth is well above the national average and is not reflected in an increased funding settlement. I am grateful to the Under-Secretary of State for Communities and Local Government, the hon. Member for Nuneaton (Mr Jones), whom I met last month to discuss these matters. However, in the light of that meeting, and of submissions that have been made, what further measures are the Government willing to take to ensure there is a more equitable funding mechanism for boroughs in this situation?

[Greg Clark]

I understand the point the right hon. Lady makes, which is very reasonable. It is important that the funding that local government receives reflects the very latest information available in terms of the population. I have reflected on the representations that have been made in the consultation, and I will have more to say about that later.

[Johnny Mercer (Plymouth, Moor View) (Con)]

T3. In my city of Plymouth, local campaigns seem to regularly mislead my constituents on the spare room subsidy, something that many people see as a fair way of bringing about parity between the social and private rental sectors. I commend the Government, therefore, for making funds available for specific cases where the spare room subsidy is not appropriate. However, will the Minister confirm that Plymouth City Council has chosen to return that discretionary housing payment to central Government every year, so no one should be struggling as a result of this policy?

--- Later in debate ---

[Jenny Chapman (Darlington) (Lab)]

In response to questions asked earlier by Conservative Members about funding allocations for rural areas, Ministers hinted that they think there is some unfairness in the system. May I encourage Ministers to look at the issue again, because I agree that there is a great deal of unfairness? The funding in my borough in Darlington is being decimated and the cuts are devastating for the local economy, whereas the spending power of a similarly sized town, Wokingham, will be increased over coming years. That is fundamentally unfair. Will Ministers look at the issue again?

[Greg Clark]

I will respond on the provisional financial settlement shortly. It is important for every type of authority that its needs and the costs of providing services are properly met, and that is the Government’s objective.

[Michael Fabricant (Lichfield) (Con)]

My right hon. Friend is keen, as am I, on building on brownfield sites. With the closure of coal-fired power stations, including the possible closure of one in my constituency, what are we doing to encourage building on brownfield sites that include contaminated land?

[Greg Clark]

I am grateful for my hon. Friend’s question. In the spending review the Chancellor established a fund to decontaminate brownfield sites so that they can be made available for house building in the way that my hon. Friend recommends.

[Daniel Zeichner (Cambridge) (Lab)]

The Local Government Association is predicting that the Government’s pay-to-stay proposals will lead to some 60,000 council tenants leaving their homes. At the same time, councils are saying that they do not know how much their tenants earn. Will the Minister for Housing and Planning explain to councils how and why they should be asking their tenants how much they earn?

--- Later in debate ---

[Diana Johnson (Kingston upon Hull North) (Lab)]

What assessment have Ministers made of councils that introduce a 2% precept increase for social care? For those councils with a very low council tax base, that will not result in the funding required to ensure that social care continues at the level it should in areas such as Hull.

[Greg Clark]

Part of the settlement that was made in the spending review was to include this new council tax precept in addition to the better care fund. On top of the resources that councils already invest, we will be able to invest more than the Local Government Association requested for social care in advance of the spending review.

[Several hon. Members rose—]