One Public Estate Programme

Jim Shannon Excerpts

Tuesday 14th May 2019 Westminster Hall

[Matt Western]

My hon. Friend makes an extremely important point: this is an oligopoly, with just a few players controlling our land. I increasingly see local authorities coming to arrangements with the big players and developers, and that prevents land from being used wisely to deliver the sort of housing that we need.

With such a colossal social crisis before us, we should use all suitable public land to build high-quality social rented council housing, without exception—not 50% here or 40% there, but 100% of such land. I fear—with good reason, it seems—that the One Public Estate programme was designed more to incentivise the public sector to sell its precious land as part of a national asset-stripping programme than to use the opportunity so afforded to design in a more efficient delivery of public services or facilitate the building of social rented housing, which would be of most social benefit to most communities.

A relatively small number of homes have been delivered by the OPE so far: just 303, which is a failure in itself. Overall, the land released will enable the building of a further 2,550 homes, with an estimated 10,000 more homes over the next five years. It worries me that I cannot find the data on how many of those homes will be social rented, or even affordable—I suspect most are not—or how much of the land has been released to local authorities to build council housing; I suspect most has not. It would be helpful if the Minister provided the data today.

I do know, however, that the Government’s estate strategy revealed that around £2 billion has already been generated from selling more than 1,000 buildings in the last four years, with £164 million in capital receipts from land and property sales raised as part of the OPE. How much of that land could have been suitable for delivering the social rented council housing we desperately need? In truth, any such need, or means of facility to meet that need, has been fundamentally undermined by the prevailing attitude that public sector assets and land are best released to the private sector. I think it is fair to say that that was the view of what is now seen as a surprisingly neoliberal coalition Government. In the speech that I referred to earlier, Francis Maude went on to say that

“we want to release property back onto the market”,

and that the Government

“identified assets which could be released between now and 2020, generating £5 billion for the taxpayer.”

To be fair, it appears that this Government’s priorities have changed from those of the coalition Government. The Prime Minister has claimed that austerity is over, although the public are yet to see any evidence of that. She has also claimed that she wishes to solve the housing crisis, naming it the Government’s No. 1 domestic priority. Indeed, the borrowing cap has been reformed so that councils can begin building council housing at scale again, but a cap should never have been imposed in the first instance. I therefore urge the Minister to look again at how the One Public Estate programme operates, in terms of releasing public land, and to shift its priorities so that public land that is suitable for the development of social rented council housing is prioritised for that purpose, instead of being flogged off to the highest bidder.

The defence estate optimisation programme provides a very good example of the potential of OPE, but also its failings. The Ministry of Defence currently accounts for 2% of the UK’s land mass. The Government recognise that many of those sites could be better used, particularly for housing, and the Ministry of Defence therefore plans to release around 90 of its most expensive sites before 2040, potentially releasing land for 55,000 homes. That relies on linking up the Ministry with the relevant local authorities and providing them with the up-front cost and expertise needed to make the most of the release of those sites. The OPE is well placed to fulfil that role; indeed, it is already involved in discussions relating to 12 of the sites.

However, if we dig slightly deeper, we see that the opportunity for mass social rented housing programmes on that land is being totally missed. For example, St George’s barracks in Rutland is due to close in 2021, and the master plan that has been developed provides for 2,200 homes as part of a new garden village. The OPE programme was awarded £175,000 in December 2017 for project management, consultation, surveys and master planning of the barracks site—so far, so good. However, when we delve into the master plan, we see that only 30% of the homes will be affordable. Worse still, of those, 50% will be affordable rent, which we all know is not that affordable; 35% will be starter homes or other affordable home ownership products; and 15% will be rent to buy. It appears that none will be social-rented housing—a prime example of a fantastic opportunity missed for OPE and genuinely affordable housing.

[Jim Shannon (Strangford) (DUP)]

I spoke to the Minister this morning before the debate. Does the hon. Gentleman believe it is important that there is a purpose behind the sale of any land, such as saving money when Departments come together? Equally important, as he outlined, is the need to ensure that, whatever land becomes available, there is a social housing requirement to give those who do not have the same assets the opportunity to buy or rent houses. In Northern Ireland, we had a suggestion—not a rule—that developers should set aside 10% of land for social housing. Does he feel that the Government should look at something more objective for the mainland, with land set aside in law for social housing? Does he think that might be a way of retaining land for social housing? People cannot get housing if we do not give them the opportunity to do so.

[Ian Paisley (in the Chair)]

Order. If Members wish to make speeches, will they please make an application to do so? The Chair of the debate will happily accommodate them.

--- Later in debate ---

[Luke Pollard]

I agree with the hon. Gentleman. The important points are what Government land is disposed of, how it is disposed of and where the benefits of that disposal flow. We have seen in Plymouth, a city with a very large military pedigree and current military role, that many of our former armed forces bases have been sold off, but the benefits of the sale have been taken to the Exchequer in London and not delivered to the communities that previously gained employment and investment and a sense of identity from those military bases. I think that there is an opportunity to use much of the surplus land, which is owned by a cohort of public authorities—ranging from the Ministry of Defence and all the weird and wonderful MOD agencies, through to Plymouth City Council and different parts of the Government estate—and to bring services together. If the Government are to realise their ambition of moving from 800 to 200 Government offices by 2023, the idea of creating a Government hub in the far south-west, in Plymouth, where we have already shown, through the Land Registry and previously the Child Support Agency, that civil service and public service jobs can thrive, is a good opportunity.

We lost out on the Marine Management Organisation towards the end of 2010, and many of us in the far south-west still talk about how we lost out on the wealth tax agency in 1979. We were scuppered by the election of a Tory Government who perhaps were not too keen on creating a wealth tax agency—who would have known?—but there is now a real opportunity, and if you will forgive me, Mr Paisley, I will talk for a few moments about Plymouth’s One Public Estate journey.

The unlocking of South Yard in Devonport has been an incredible success. That surplus land owned by the Ministry of Defence was not being used for Royal Navy purposes. It has been repurposed as Oceansgate and, through the One Public Estate programme, is creating new marine jobs. Plymouth has a huge opportunity in marine science and marine engineering, and Oceansgate is helping to unlock that. It is taking far too long to overcome the logistical barriers between the detail of what the MOD might want and what businesses might want, but that challenge can be overcome.

OPE 3, 4 and 5—the funding streams—have helped us to develop our integrated health and wellbeing hubs. There is huge potential here. We have spoken about some of the big, aggregated services, but GP surgeries, mental health support, sexual health testing and social care can all come together at a much smaller, micro level. Indeed, I would encourage the Minister to have a word with his new colleague the Under-Secretary of State for Health and Social Care, the hon. Member for South Ribble (Seema Kennedy), about the super-hub project. Plymouth has applied for funding from the Department of Health and Social Care for that project, which would bring sexual health testing, an eight-to-12-chair dental surgery—enabling dental students from Plymouth’s superb dental school to learn and help to treat people in some of the poorest communities in the city, right next to the city centre—directly employed GP surgeries, mental health support and health and wellbeing services all into one building, at Colin Campbell Court, which the Minister may know well. There is a huge opportunity there. Part of the One Public Estate strategy has to be to mobilise and motivate other Departments to make decisions that might be slightly off their usual funding streams if there is an opportunity from doing so.

The other aspect that I would like to mention relates to the better defence estate. My hon. Friend the Member for Warwick and Leamington spoke passionately about some of its successes and some of its failures, and we have had a similar journey in Plymouth. There is the success of relocating the Royal Marines from Royal Marines Turnchapel. Releasing that land and creating what is now a world-class centre for autonomous marine engineering has been a huge success. The new base at Royal Marines Tamar, at the very north of Devonport, has been an incredible success for the Royal Marines. It gives quick and easy access to the Tamar and, through that, to Plymouth Sound and to the training facilities at HMS Raleigh and a superb new state-of-the-art facility for our Royal Marines there.

However, there have also been failures from One Public Estate, and that has largely also been about the Royal Marines, in relation to the closure of Stonehouse barracks. There has been an attempt to rationalise that defence estate by closing the spiritual home of the Royal Marines—the only purpose-built barracks for the Royal Marines that are still in use. Those barracks are not fit for purpose. There is no hot running water in many of the accommodation blocks; the showers and the heating do not work. We should not accept that for our Royal Marines when they are at home. Many of them would accept that when on deployment, but not at home.

Now that we have seen the Government U-turn on their commitment to build a superbase in Plymouth, which would have brought the Royal Marines to our city, I would be grateful if the Minister encouraged his colleagues in the Ministry of Defence to look at how the programme for relocating the 3 Commando Brigade from Stonehouse barracks to a new purpose-built facility can be accelerated. The new date of 2028 means that our Royal Marines will be waiting a long time to have hot water in their accommodation. I think we would all agree that that is unacceptable.

There is an opportunity to create a new Government hub in Plymouth, bringing together civil service and public service jobs from the centre of London to create a new, superb facility in Plymouth. As the Minister will know, Plymouth is a centre that can create jobs not only within Plymouth and the PL postcode boundary, but for the wider Plymouth travel-to-work area—or perhaps the greater Torbay area, depending on one’s perspective—to help us create wider economic benefits for our region. There are many failings of the One Public Estate strategy.

[Jim Shannon]

In Northern Ireland a very different approach has been taken. The Government policy is to turn former Army barracks into intergenerational places, where the community and the economy can come together, where businesses can build and where councils can be involved. That is all happening on Army bases. In other words, the benefactors are the communities of all sides. That was an opportunity we have used in Northern Ireland. Perhaps they could do something similar where the hon. Gentleman lives?

[Ian Paisley (in the Chair)]

Order. I feel that the hon. Gentleman has a speech waiting to get out of him today. I am tempted to put him on the notice paper, whether he wants to or not.