Budget Resolutions

James Cartlidge Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[James Brokenshire]

The National House Building Council figures published today are very encouraging about the levels of building activity. We must build the homes our country needs, and we are firmly putting in place a number of steps and measures to help deliver on that. I know there is more to do, but we should recognise that progress is being made. We need to continue to see everyone building across the economy, because as a country we have failed to build enough homes over the decades under successive Governments. As a result, the most basic of needs—a place to call home—is out of reach for many, particularly our young people.

That is changing, thanks to this Government. Since 2010 we have delivered more than 1 million new homes and helped nearly half a million families get on to the housing ladder through Help to Buy and the right to buy, and we are taking action to ban the unjustified use of leaseholds on new homes, crack down on rogue landlords, ban unfair letting agent fees and cap deposits, and end rough sleeping for good.

We should contrast that with the record of the Labour party; not only did housing become more unaffordable under Labour, but under the current Labour leadership it has consistently voted against the reduction in stamp duty, which has helped more people get on to the housing ladder.

[James Cartlidge (South Suffolk) (Con)]

A key part of the housing market is the second-hand market, of course. First-time buyers are now making a strong comeback because of the brave measures we took in relation to buy-to-let landlords—changing the stamp duty and the way we treat interest—which means that first-time buyers are now not only on a level playing field but in many parts of the country have the upper hand again.

[James Brokenshire]

My hon. Friend highlights some of the important steps that have been taken and the impact that they are starting to have, but we know there is much more to do. We know that we need to be bolder and much more radical if we are to fix our broken housing market, make it fairer and match Harold Macmillan’s record by delivering the 300,000 homes a year that families and communities need. That ambition was set out back in 1951, and we will do it again.

This Budget does that and more. By building on the Chancellor’s commitment last year to a five-year, £44 billion housing programme, it reaffirms this Government’s commitment to restoring the dream of home ownership, most notably by securing the future of Help to Buy past 2021 and ensuring that the new scheme is targeted at first-time buyers, who need it most, and includes regional property price caps through to 2023. With most first-time buyers now exempt from paying stamp duty following last year’s Budget, benefiting more than 120,000 buyers so far, this year’s Budget went a step further by extending that relief to all first-time buyers of shared ownership properties worth up to £500,000 and making it retrospective. That is good news for anyone who aspires to own their own home.

Ultimately, however, there is no way we can help more families to get on to the housing ladder without getting Britain building and getting local authorities to play their part. That is why the Chancellor’s confirmation that we are removing the biggest barrier—the Government cap on how much councils can borrow to build more—is such a game changer. It will free up councils to deliver around 10,000 homes a year. It has been great to see how warmly this has been welcomed by councils up and down the country, and how ambitious they are about making the most of this opportunity to deliver the next generation of council housing. We are also supporting housing associations to deliver at scale and pace, with the Chancellor’s announcement of the next wave of deals with nine housing associations, worth £653 million, which will deliver a further 13,000 affordable housing starts by March 2022.

--- Later in debate ---

[Andrew Gwynne]

As I was speaking about education, the hon. Gentleman must try harder, go to the back of the class and pay attention. Some £1.3 billion of cuts—

[James Cartlidge]

Will the hon. Gentleman give way?

[Andrew Gwynne]

No. Cuts will be hard-wired—[Interruption.]

[Andrew Gwynne]

Thank you, Madam Deputy Speaker.

As I was saying, £1.3 billion of cuts next year are hard-wired into the system—[Interruption.] The Secretary of State for Housing, Communities and Local Government can shake his head, but the statistics come from the Tory-led Local Government Association. The cuts will devastate councils that are already struggling. Austerity is certainly not over for local government. Councils were the first and perhaps the easiest target of the coalition Government, and they have had to endure some of the largest cuts across the public sector.

[James Cartlidge]

Will the hon. Gentleman give way?

[Andrew Gwynne]

No, I am going to make some progress.

After all, by cutting funding to councils, Ministers have shifted the blame on to councillors, including Conservative councillors. Councils of all political persuasions and none are now at breaking point. The effects of that on our communities are plain to see across the country. More than 500 children’s centres have shut down and 475 libraries have closed. Support for disabled children has been stripped away—for example, the transport that helped them to get to school to learn like their friends. Support for older people has been slashed, with 1.4 million older people now not getting the necessary help with essential tasks such as washing and dressing. Bus routes have been cut. Our roads are in disrepair, and before the Government laud the £420 million for potholes, I must point out the £1 billion backlog created by this Government’s cuts. Swimming pools, leisure centres and community spaces have closed. Bin collections have been reduced. Youth clubs have closed. Planning departments have been stripped out. Trading standards offices have been slashed, leaving more people at risk of fraud or dodgy goods. Streetlights have been turned off to save money.

--- Later in debate ---

[James Cartlidge (South Suffolk) (Con)]

As you return to your Chair, Mr Speaker, I return to the 1950s. There has been a lot of talk about austerity, but when our historians speak about austerity they focus not on public spending but on living standards and wages. In 1950, we spoke about the fact that there was rationing and people had low disposable incomes—we did not focus only on levels of public spending. Indeed, in 1950 we spent 6% of GDP on defence. The point is what is happening to living standards where it really matters.

Just before the Budget we heard the fantastic news that this country is now experiencing its fastest wage growth for almost a decade. [Interruption.] The hon. Member for High Peak (Ruth George) chunters, but if she reads coverage of those wage statistics in The Guardian, she will see they have been analysed to see why that is happening. The conclusion is that it is due to competition between firms for workers—in other words, wage growth is coming from the unemployment miracle that we are delivering. Indeed, in the Budget the extra money that the Chancellor was able to deploy comes from the fact that the OBR has revised employment figures up for this country. That is not a magic money tree—that is literally the hard work of the British people paying off, and more tax revenue coming in to support higher spending.

In a country which, compared with other similar northern European countries, has not had as high an average GDP per head as it could have had, what can we do to sustain those higher wages in the years to come so that we can in turn sustain higher public spending in the only way possible? The answer is competitive taxes, so that we do not eat into people’s take-home pay, we have sensible levels of public spending, and above all, we keep borrowing and debt under control.

If we followed the Labour party we would decimate that growth in wages because taxes would surge, eating into take-home pay. Investment would fall as businesses would be less confident if faced with a return to ’70s-era socialism. Above all, my biggest problem with what Labour Members offer with their increase in debt is that if they push up public spending as they promise, yes, public spending austerity will fade briefly, but it will return as we go from feast to famine, as we have done so many times before through boom and bust. What will happen to austerity? It will be forced on the next generation with higher debt. That is a gutless and cowardly approach to public finances. The right approach is sensible, prudent, conservative economics, based on markets and a sensible balance between low taxes and targeted public expenditure on priorities such as the NHS, and that is why I will be voting for the Budget tonight.