Affordable Homes Bill

Jacob Rees-Mogg Excerpts

Friday 5th September 2014 Commons Chamber

[Jacob Rees-Mogg (North East Somerset) (Con)]

rose—

[Chris Bryant]

The hon. Member for the 16th century wants to intervene.

[Jacob Rees-Mogg]

I am very grateful to the hon. Gentleman for giving way, and it is always a pleasure to listen to his speeches, but in his criticism of Margaret Thatcher is he saying that he regrets the fact that millions of people were able to buy their own houses and be property owners, which is surely a great thing that the Conservatives achieved?

[Chris Bryant]

The hon. Gentleman should listen more carefully to my speeches. I was always in favour of the right to buy scheme and enabling people to buy, and live in, their home—an Englishman’s home is his castle and all of that kind of stuff, and that applies equally to the Scots, Welsh and Irish—but local authorities were not allowed to replace that housing stock with social housing, and we set ourselves a long-term economic problem from which we have still to recover. If the hon. Gentleman wants to have another go and attack me by saying the Labour Government did not do enough when we were in power, he is absolutely right: we did not, and we acknowledge that, which is why one of our key commitments is to guarantee that by the end of a Labour Government in 2020—by that general election—we will be building 200,000 properties in the United Kingdom.

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[Jacob Rees-Mogg]

I am grateful to my hon. Friend for giving way and allowing me to interrupt him at an early stage in his remarks. Does it occur to him, as it does to me, that those constituents who went through the consultation process and asked for a Bill on affordable housing would not have thought that a Bill on affordable housing would merely get them a review? That does not seem to be a very active Bill.

[Mr Nuttall]

My hon. Friend is absolutely right, and I was just about to deal with that point.

[Mr Nuttall]

I am extremely grateful to my hon. Friend for that contribution, which reflects the messages that I was getting in my constituency, in Bury, Ramsbottom and Tottington, before the most recent general election.

To go back to the consultation that the hon. Member for St Ives carried out, we know that 65,000 people did not bother to comment at all, or give an opinion either way. In my view, those who did indicate their support for this Affordable Homes Bill will be very disappointed, to say the least, with its content. The Bill appears to be a mere shadow of the one that the hon. Gentleman put forward for consultation to his constituents. That Bill contained an extension of the Government’s Help to Buy scheme, a proposal to create an affordable homes investment bank—there is no mention of such an institution in the Bill before us—and a proposal to create a new planning use class for non-permanent residential use, in other words, for second homes. That would have given local planning authorities power to control the number of second homes in their area. There is no mention of that in this Bill.

The Bill that the hon. Gentleman asked his constituents to comment on was also scheduled to give local authorities immense powers of compulsory purchase where developers held back land for development, or where they failed to develop sites for which planning permission had been granted but on which no development had yet begun. Well, surprise, surprise: there is no mention of that measure either.

[Jacob Rees-Mogg]

Does my hon. Friend agree that it is a jolly good thing that that has been dropped from the Bill, as it would have been a fundamental attack on the rights of private property, which the House has always protected?

[Mr Nuttall]

I completely and 100% agree with my hon. Friend. I for one am extremely grateful that those measures are not in the Bill, but I am worried, as I shall explain in a moment, that the Bill may be just an opening salvo for the introduction of those measures at a later stage. Although what is left is a proposal to change the eligibility for housing benefit and a proposal to require the Secretary of State to carry out a review of the availability of affordable homes and intermediate housing, that is it; there is no mention of any affordable homes investment bank, no mention of any change to planning use classes and no mention of any enhanced powers for local councils. We must ask ourselves why that is so. On one level, I would like to think it is because the hon. Member for St Ives has seen the light and realised that his proposal for Government interference in the free market—as my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) identified it—would not have had the effect he hoped for. However, the truth is, I believe, rather more worrying.

As I mentioned in an intervention at the outset, the hon. Member for St Ives perhaps gave an explanation of why there is so little in the Bill on his website last week:

“If I succeed at Second Reading…I hope I can beef up the Bill with amendments at Committee Stage.”

There we have it: this skeleton of a Bill is actually a Trojan horse Bill. If it is granted a Second Reading today, the hon. Gentleman admits that he will use it to try to introduce those other measures later in its parliamentary proceedings.

[Jacob Rees-Mogg]

I am grateful once again to my hon. Friend for giving way. I wonder whether anyone consulted the Clerks on whether amendments to widen the Bill by so much would be within its scope.

[Mr Nuttall]

I have not inquired of the Clerks whether that would be correct parliamentary procedure. It is certainly unusual for a Bill’s promoter to admit at the outset that the measure being proposed is not the measure they want agreed on Third Reading and that they intend to table amendments in Committee. It is usual for the rest of the House, not the promoter, to want to amend a Bill.

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[Mr Nuttall]

My hon. Friend might think that, but I think it is better for the discretionary housing payment to be looked at on a case-by-case basis, as at present.

[Jacob Rees-Mogg]

Has not the Minister himself told us that these proposals will cost £1 billion? That is more than the cost of the discretionary powers, so this Bill has a clear financial effect.

[Mr Nuttall]

I am grateful to my hon. Friend for reminding the House that we now know from the Minister’s comments that we are talking about a figure of £1 billion a year, whichever way we look at it.

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[Mr Nuttall]

I will be more selfish with the interventions I accept, Madam Deputy Speaker, but the point made by my hon. Friend the Member for Beckenham (Bob Stewart) was not one I have in my speech, so I am grateful to him for making it.

The Government trebled support for discretionary housing payments so that funding for this year is £165 million. In 2013-14, £21 million of central Government funding was unspent by the end of the year. Almost two thirds—63%—of local authorities paid out less than their total discretionary housing payment allocation, and fewer than a quarter applied for a share of the £20 million that the Department for Work and Pensions held back in reserve. Discretionary housing payments exist to provide a safety net for vulnerable tenants, and they offer the best mechanism for local authorities to provide additional support as welfare payments are reformed, enabling them to respond on a case-by-case basis to those who need more assistance.

I appreciate that the hon. Member for St Ives ideally wants the spare room subsidy to be removed. He would like a return to the time before the measure was introduced, when taxpayers in my constituency had to contribute towards those living on benefits and enjoying accommodation that they themselves could only dream about. Clause 1 is seen by those who want to return to those days as a mere stepping stone towards the day when tenants can once more have the benefit of spare rooms at the expense of other hard-working taxpayers. We must strike a balance between the interests of taxpayers and the legitimate needs of welfare claimants, and I do not see the need to introduce the measures in clause 1 to achieve that balance.

Let me turn to clause 3, which has not received the attention it needs so far. Subsection (1) requires the Secretary of State to

“carry out a review of the availability of affordable homes and intermediate housing and produce and lay before Parliament a report which must set out the conclusions of the review.”

within 12 months of the Bill being enacted. We know from clause 7(2) that the Act would come into force

“at the end of the period of 3 months beginning with the day on which it is passed.”

Anyone reading clause 3 would assume that there must be an urgent need for a review, and that for some reason no information is available about the housing stock in this country, and certainly nothing on affordable housing. However, even the most cursory investigation of the subject reveals that our library shelves are simply groaning under the weight of reports and statistics on this matter. In fact, there are so many that—you will be pleased to know this, Madam Deputy Speaker—I will not even begin to list them, never mind quote from them all.

[Jacob Rees-Mogg]

Although one of life’s great pleasures is to ensure that Madam Deputy Speaker is happy, the rest of the House will be desperately disappointed if my hon. Friend does not elaborate on all those points.

[Madam Deputy Speaker (Dame Dawn Primarolo)]

Order. I am sure that the House can contain its disappointment and anxiety to progress this debate. I hope, Mr Nuttall, that you are making reasonable progress, and taking your own advice about making the remaining points in your speech so that others can participate in the debate.

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[Jacob Rees-Mogg (North East Somerset) (Con)]

On a point of order, Madam Deputy Speaker. During the debate, many points of great interest have been raised and it has been suggested that further amendments will be made. I therefore think it would be highly beneficial if the Bill were referred to a Select Committee.

[Madam Deputy Speaker (Dame Dawn Primarolo)]

I am grateful to the hon. Gentleman for giving me notice of his intention to apply Standing Order No. 63.

Motion made, and Question put forthwith (Standing Order No. 63(2), That the Bill be committed to a Select Committee.—(Jacob Rees-Mogg.)