Department for Communities and Local Government Debate

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Department for Communities and Local Government

Jeremy Corbyn Excerpts
Tuesday 26th March 2013

(11 years, 1 month ago)

Commons Chamber
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Jeremy Corbyn Portrait Jeremy Corbyn (Islington North) (Lab)
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Like my hon. Friend the Member for Ealing North (Stephen Pound), I wish to discuss the housing crisis in London, although five minutes is a very short time in which to try to describe a truly appalling situation. Some 360,000 families are on the housing waiting list in London—that excludes the large number of single people who usually cannot even get on the waiting list—and 750,000 Londoners are living in grossly overcrowded accommodation. The housing solutions for them are non-existent, and will be unless there is an enormous change in Government policy and in the policy of the Mayor of London towards this crisis.

Gareth Thomas Portrait Mr Gareth Thomas (Harrow West) (Lab/Co-op)
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My hon. Friend is an inner-London MP for an area that has a particularly severe overcrowding problem, but does he agree that this issue affects the outer-London suburbs as much as inner London? Does he acknowledge that a huge number of people in Harrow in my constituency are also waiting, without a great deal of hope, for a new home?

Jeremy Corbyn Portrait Jeremy Corbyn
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This is indeed a time for inner and outer London solidarity, and I am happy to declare that act of solidarity with my hon. Friends the Members for Ealing North, for Harrow West (Mr Thomas) and for Hayes and Harlington (John McDonnell), and with many other outer-London boroughs. To be homeless in London is to be homeless in London, to be overcrowded is to be overcrowded, and to be on the waiting list is clearly to be on the waiting list.

The solutions to this situation have to be sought. Sadly, what was offered in the Budget is not a solution; I suspect that it will result in those with deep pockets being able to buy yet more properties, which they will then keep empty, as part of the disgrace of private sector land banking that is going on in London. I will discuss the other solutions concerning owner-occupation, social rented housing and private rented housing in a moment. First, I wish to deal with the issue of the large number of empty properties, often at the high end of the market, deliberately kept empty by people who have large amounts of money that comes from dubious sources. They have bought these properties in order to make a great deal of money out of them at a later date when their value increases. Given the current housing crisis, we should be giving powers to local authorities to take over properties that are deliberately kept empty, so that the people in desperate housing need can get somewhere to live in London.

Alison Seabeck Portrait Alison Seabeck
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Does my hon. Friend share my concern that the spare homes subsidy could be misused by exactly the people he is talking about, and that Government and taxpayers’ money could be misused?

Jeremy Corbyn Portrait Jeremy Corbyn
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My hon. Friend makes a strong point. There is no clear definition of how this subsidy being offered by the Chancellor will be used, so it seems to be an opportunity for those with deep pockets to make a great deal of money for themselves. The people in desperate housing need, such as those represented by me or by my hon. Friends the Members for Harrow West or for Ealing North, will not have that same opportunity.

Mark Reckless Portrait Mark Reckless (Rochester and Strood) (Con)
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Will the hon. Gentleman give way?

Jeremy Corbyn Portrait Jeremy Corbyn
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I will not give way any more, because I would lose my time.

The second area I wish to discuss is the social rented sector in London—council housing. The problems of housing in London are not new; they were acute in the 19th century and in the early 20th century. It was the inspiration and idealism of the Labour-controlled London county council in the inter-war years that did a great deal to build decent homes for people who were living in appalling slums. Indeed, in my constituency and others one can see the products of the inspirational work done by Herbert Morrison and others. The post-second world war council house building did an incredible amount to give people decent places to live.

I had the great honour of being a member of Haringey borough council from 1974 to 1983 and I remember complaining in 1979 that we had built only 1,000 council houses that year. I was complaining that we could have done more, but 1,000 is more than have been built in the whole of London in most of the past few years. I am critical of my party in government and of the current Government for not doing enough to build new council housing.

The Government’s solution is to suggest to local authorities that they should raise rents to 80% of the market rent to raise some funds to develop new housing. In my borough and those of most colleagues in London, council house rents would more than double. Islington borough council, to its credit, has refused to do that and has managed to develop a substantial building programme on its own land from its own resources. But obviously, there are limits to that programme, imaginative though it is.

We need central Government involvement in the building of new council homes as a matter of enormous urgency. The Mayor of London does not seem fully to grasp all that. In fact, there are quite a lot of things the Mayor of London does not fully grasp, but one of them is the essential need for the building of new council houses. The number of social rented properties—that is, council or housing association properties—built under his watch and by his means has reduced from 11,000 in 2010-11 to only 983 in the current year. Goodness knows how much lower than that the numbers will go in future years. We must kindly ask central Government to get a grip of the situation and do their best to intervene with the Mayor and with borough councils to ensure that there is a rapid increase in the supply of council housing in London. That is the best and most efficient way of solving the housing crisis. It provides jobs, provides homes and helps people to have a secure place to live.

The final area I want to mention was covered in a ten-minute rule Bill that I introduced and it is the private rented sector. In London, 800,000 families live in that sector—it is the fastest growing housing sector by a long way. In my constituency, a third of all households are in the private rented sector and that number is rising fast. Generally speaking, people who live in the private rented sector pay the most to live in the least efficient, worst repaired and worst maintained properties and in the least regulated sector. Not all landlords are bad—some are very good—but the lack of regulation means that those who are bad can get away with it. We need regulation of the letting agencies, registration and regulation of all private rented accommodation and, in my view, rent controls.

The housing benefit cap is acting as an agent for the social cleansing of the poorest people on housing benefit all over central London. They are being driven out of their areas and driven out of London. For that reason, we need not just to control housing benefit expenditure but to control it by controlling the rent levels instead, rather than forcing tenants out of their homes—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I call John McDonnell.

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Nick Boles Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Nick Boles)
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Having heard the range and quality of the contributions from Members from all around the House, I feel like an unwitting contestant on “Just a Minute”. I fear that after I address the subjects that have been raised, on which I am so profoundly inexpert, Members may conclude that I am actually a contestant on “I’m Sorry I Haven’t A Clue”.

First, I will address the hon. Members who have spoken on behalf of their constituencies in London on a range of issues. The hon. Member for Ealing North (Stephen Pound) spoke about the cap on borrowing against the housing revenue account. I am glad that he welcomed the flexibility that the Government have provided to authorities to undertake prudential borrowing. I reassure him that within the cap for the 29 stock-holding authorities in London, there is £1.4 billion of borrowing headroom. I would encourage local authorities to take advantage of that. He will be aware, although his party often professes not to be, that unfortunately we have to maintain strict controls on the deficit and to limit increases in our national debt. That is why the Government are not considering relief of the cap.

The hon. Member for Hackney South and Shoreditch (Meg Hillier) made an eloquent argument for the exemption application against the new permitted development right for change of use from commercial to residential. She will be aware that we are considering a great number of exemption applications from authorities across the country and will understand that we need to apply the criteria that have been set out fairly and objectively to all authorities. I therefore hope that she will understand that I cannot give her any specific reassurances about the result of the application from her local authority. I can reassure her that the process is happening as quickly and fairly as possible, with outside expert help to assess whether the criteria apply.

The hon. Lady also raised the removal of the spare room subsidy from people in her constituency who are in receipt of housing benefit. I remind her, as she will have heard many times from this Dispatch Box from people who are much more senior than I am, that the housing benefit bill has doubled to £22 billion a year. The removal of the spare room subsidy will save half a billion pounds a year. When she or her colleagues come up with another way to save that money, the Government will be delighted to hear it.

The hon. Member for Islington North (Jeremy Corbyn) raised similar issues about the housing crisis in London and spoke of the need to build new council housing. He will be aware that councils can build new council housing. Many councils of all stripes are seeking to do so. I disagree with his idea that rent control would be nirvana for his constituents and for those who have to manage the housing benefit bill. The last time that we had rent control, there was a collapse in the private rented sector because investors were unwilling to invest in it. Our approach is very different. We are investing in the private rented sector through a generous scheme of guarantees that has been over-subscribed and to which the Chancellor committed more money in his Budget last week.

Jeremy Corbyn Portrait Jeremy Corbyn
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What would the Minister say to my constituents who are faced with a gap, in some cases of more than £100 a week, between their housing benefit and their new private rent and who will be forced out of the community where their children go to school and their families live, leading to community disruption? What would he say to them when they are sitting across the table in an advice bureau?

Nick Boles Portrait Nick Boles
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I can assure the hon. Gentleman that I have spoken to a number of people in my constituency who face the same situation and not a great deal more housing is available. I accept that it will be very difficult for certain people, and I, as I am sure that he is, am doing everything that I can to work with councils on their local housing solutions and with Citizens Advice to put people in touch with alternative options and to encourage them to explore the possibility where appropriate—often, with families, it will not be, but for single people, it might be—of renting out spare rooms to offset the reduction. We have to save money from the housing benefit bill, however, and we have not yet heard any better or fairer suggestions from the Opposition on how to do that. When we have heard that, perhaps we will be able to discuss it.

The hon. Member for Hayes and Harlington (John McDonnell) raised a different but important issue about protecting the green belt and how that is assessed against the importance of providing new school places. He will understand that because he has asked that the proposal about which he is concerned be called in by the Secretary of State, I cannot comment on it. I can reassure him, however, that the national planning policy framework is clear about the protections for the green belt: there can only be development on the green belt in very special circumstances, so planning authorities would have to meet quite a tough test in law, if they wished to approve such a proposal. That has to be balanced, however, against the equally explicit commitment that great weight be given to the need to create and expand schools. I cannot prejudge how that will be arrived at in that case, but he has made an eloquent and passionate argument. Officials in my Department and I, as planning Minister, have heard it and will take it into account when we consider the proposal.

I think that I can now move away from London to my hon. Friend the Member for High Peak (Andrew Bingham), who spoke movingly and effectively on behalf of the constituents of his who faced the unbearable tragedy of losing their daughter, Mary Ann. He will be aware that the Government constantly consider ways to raise awareness of the risks of carbon monoxide, and I can tell him that there will now be a label on barbecues to warn people of the risk of carbon monoxide poisoning. He will also be aware that building regulations require a carbon monoxide alarm when a solid fuel appliance is installed in a home. It is not currently proposed to make it mandatory to install those alarms in new homes, as he suggests doing, but he has made a strong argument, and I know that the Under-Secretary of State for Communities and Local Government, my right hon. Friend the Member for Bath (Mr Foster), will be keen to listen to his concerns and consider them as he reviews building regulations.

The hon. Member for Plymouth, Moor View (Alison Seabeck) told a tale of woe on behalf of her constituents about what appeared to be the fraudulent issuance of a safety certificate. I cannot comment in detail, because it is not my area of expertise; I can only reassure her that we will write to the Health and Safety Executive and Ministers in the Department for Work and Pensions, who oversee the HSE, to ensure that she receives an adequate answer on how her constituents’ interests can be properly protected.

I turn, finally I think—no doubt, someone will holler if I have missed them out—to my hon. Friend the Member for Rochester and Strood (Mark Reckless). I can well understand the dismay of Medway council, which is seeking to do what all hon. Members across the House understand is necessary: to make provision to build more houses. I can well understand their dismay that such a major scheme should be put at risk by a declaration that the site is to be viewed as a site of special scientific interest. I cannot comment on the merits of the decision or the scheme, but I can reassure him of two things. First, notification of a site as an SSSI does not necessarily mean that it cannot be developed, but it does mean that the developer must make advanced efforts to mitigate, or, if they cannot do that entirely, to compensate for any impact on the site. Only last week, I met the chairman of Natural England, and I would be happy to explore with him the status of such a notification, how it came about and whether it can be managed to ensure that the houses needed for people in my hon. Friend’s constituency are built. I hope that has answered all the questions raised by hon. Members.