amendment of the law

Debate between Gregory Campbell and Andrew George

Monday 25th March 2013 Commons Chamber

[Andrew George (St Ives) (LD)]

It is, of course, a pleasure to follow the hon. Member for Bradford West (George Galloway). His speech was an oratorical interlude that demonstrated his perspective on the world and suited his style: blacks, whites and no greys. Although he denies practising yah-boo politics, I am afraid to say that that was pretty much what we heard.

Today, we are concentrating primarily on housing, and I want to make a constructive contribution on the narrow issue of developing the construction industry, trying to kick-start the economy in the process and meeting desperate housing need. I welcome any intervention by the Government, including the Budget announcement on the promotion of home ownership for those seeking, in many cases in desperate circumstances, to get their first toe-hold on the housing ladder. In particular, I want to look at the special circumstances faced by many people living in rural areas.

My own part of the world is, of course, west Cornwall and the Isles of Scilly. Cornwall as a whole has seen the number of houses double in the past 40 years, yet housing problems for local people have become significantly worse. What we have learned in Cornwall applies to many other parts of the country that are attractive to wealthy people—we have many such places in Cornwall—who can afford second homes. On its own, building houses is not the problem. In places that are highly desirable to those with large wallets, something more sophisticated is required than merely heaving in a load more houses and turning the place into a developers’ paradise. There is a big mismatch between earnings levels and house prices in our area.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The hon. Gentleman’s area, like mine, has a number of second homes on coastal development routes. Does he agree that we need the Government to plug this massive loophole, so that people do not take advantage of what appears to be there at the moment and build large buy-to-let properties with a significant subsidy from the public purse?

[Andrew George]

I entirely agree. As the Government introduce their proposals, I hope that they will discount any chance of the loan guarantee being used to support the purchase of second homes, and that it will go only to families that otherwise would not be able to buy a first home of their own. After I was first elected in 1997, I campaigned against the policy that had been introduced by the Conservative Government of providing a 50% council tax discount for second homes. In that case, hundreds of millions of pounds were being used every year to subsidise the wealthy buying second homes, when thousands of local families could not afford their first. This Government are finishing off the job. I persuaded the previous Labour Government to remove as much as they possibly could of the second home council tax discount, and that was the right step forward.

Before I was elected to this House, I worked with housing associations and others to find a way of constructing a new lower rung on the housing ladder through shared equity and shared ownership schemes. The rural exceptions policy allowed exceptions to be made on the edges of villages and towns, where planning permission would not normally be granted, to meet local housing need. It allowed the schemes to go ahead and meant that the development price of land was significantly lower than would have been the case if they had been given unfettered permission to develop the land and build properties at prices that local people could not afford. The exceptions approach and shared ownership were clearly the way forward. The problem was that in rural areas only two lenders, Nationwide and Halifax, were prepared to put money into shared ownership developments.

A lot of lenders question whether they are prepared to put their money in and support local families who are trying to get on to the housing ladder. Such properties do not result in the level of default—the amount is 0.45% in shared ownership as a whole, which is significantly less than that for rural housing stock—that a lot of lenders pretend. If the Government are looking at ways to tighten the definition and develop their loan guarantee scheme so that it will apply to families who desperately need help, I urge them to look at the shared ownership sector. They should find ways to enable the situation to come to life, but not just on the first, initial purchase; they should try to ensure that on the second and subsequent purchase they can facilitate and work with housing associations so that these families can move on. The lack of confidence that this market can have a life of its own is holding it back.

I hope the Government will look at ways of having, in effect, a rural housing investment bank through this measure, and I hope that they will see this as a constructive contribution to the debate.

Sustainable Communities

Debate between Gregory Campbell and Andrew George

Wednesday 13th June 2012 Westminster Hall

[Andrew George]

I thank the Minister for that intervention. We certainly look forward to his response and to his fleshing out more precisely how the issues will be addressed in the regulations.

As the Minister knows, because I have given him a note in advance, I would also like to probe just how far we can take the matter. I am very ambitious to push localism as hard and fast as we possibly can, within reason. As someone who must declare an interest as chairman of the Grocery Market Action Group, there is one initiative that I have always been very keen to advance. The group is comprised of NGOs, including the National Farmers Union, Friends of the Earth, ActionAid and others, who have been submitting evidence to the Competition Commission’s inquiry into both the practices and role of supermarkets in planning and how they behave within the grocery supply chain. I have taken a great interest in that issue.

The Minister will be aware of one matter that I have always been greatly concerned about. Even after we have effectively addressed the issues of town centre first, needs test or other methods, how can we at least ensure that where communities believe an out-of-town supermarket might have a detrimental impact on a town centre, the planning process can properly scrutinise that and reflect on it? When supermarkets are built and developed, how do we ensure that they do not simply exert an unfair squeeze—a bit like a python—on that town centre? One way that is done, almost with the collusion of Government, is through the business rating system, which never properly reflects the massive advantage for out-of-town supermarkets of free car parking spaces, which enable them to inflict unfair competition—certainly a very uneven playing field—on town centres. I therefore support the case for a supplementary business rate that could be hypothecated to benefit town centres, because the rating system does not properly reflect the impact of such unfair competition.

[Mr Gregory Campbell (East Londonderry) (DUP)]

In recent days in Northern Ireland, the Finance Minister introduced a small business rate relief that is designed to take a similar line to the one advocated by the hon. Gentleman. Does he agree that the measure is needed right across the United Kingdom so that small, indigenous city centre traders can see that there is some prospect of the level playing field to which he just alluded? Trade has been going to the edge of town and out of town almost relentlessly over the past 20 years.

[Andrew George]

I am grateful to the hon. Gentleman for that intervention. I congratulate Northern Ireland on a welcome initiative that addresses the problem that I have described. The coalition Government are providing business rate relief to in-town shops and stores. That is clearly welcome, particularly when it benefits smaller, independent stores.

I have a lot of evidence to show that the business rating system does not properly reflect the commercial value of the availability of free parking in out-of-town retail sites. It is right that local communities are encouraged to introduce proposals with the support of their local authorities. Such income—for example, by providing free first-hour or discounted parking for loyal town centre shoppers—would relieve some pressure. In many town centres, certainly in my part of the world, parking charges, which local authorities say they levy to meet the costs of running car parks, have increased significantly.

Secondary, if not primary, legislation will be required. None the less, dialogue between local communities, their supporting local authorities, the selector and the Secretary of State should be encouraged, and a cap lifted on initiatives that local communities should be encouraged to advance. Under a previous round, Exeter made a proposal that was rejected on the grounds that it was beyond the remit of the scheme. However, I urge the Government to encourage that type of initiative.