One Public Estate Programme

Debate between Jo Platt and Ian Paisley

Tuesday 14th May 2019 Westminster Hall

[Jo Platt (Leigh) (Lab/Co-op)]

It is a great honour to serve under your chairmanship, Mr Paisley. I thank my hon. Friend the Member for Warwick and Leamington (Matt Western) for securing the debate and making an excellent case, which stems from his vast experience in local government in his area and as a member of the Housing, Communities and Local Government Committee. I also thank my hon. Friends the Members for Plymouth, Sutton and Devonport (Luke Pollard) and for York Central (Rachael Maskell) for their excellent contributions, which demonstrated the vast reach of the public estate strategy and its local effects.

On the face of it, the One Public Estate programme appears to be a positive, sensible strategy to reduce waste and get the most out of our public assets, as I expect the Minister will say. Its stated goal of unlocking land to increase house building is commendable, as estimates have put the number of new homes needed in England at between 240,000 and 340,000 per year, but worryingly, on recent estimates, the Government’s target of 300,000 homes annually is already under threat and could take 15 years to achieve. Let us not forget that over the last two years fewer new social rented homes have been built than at any time since the second world war.

To face that challenge, central Government must take a sustainable and transformational approach to resourcing local authorities to provide the homes we desperately need, but the Conservatives have comprehensively failed to do that. The strategy, which is effectively austerity by the back door, sells public land and property for quick cash under the illusion of helping to solve the housing crisis. It is not only disingenuous, but kicks the funding can down the road, rather than confronting the serious realities head on.

I say that the policy is disingenuous because the Government’s figures show that One Public Estate has released land for the development of just over 3,000 new homes, and the public land for housing programme has released land with capacity for fewer than 40,000 homes. That is some way short of the programme’s ambition to release surplus public sector land for at least 160,000 homes by 2020, just one year away.

The idea that this strategy and programmes such as One Public Estate are even scratching the surface of the housing crisis is total fantasy, yet the bigger question remains unanswered: why are public land and property being handed over to private developers in the first place and why are they being sold at a discounted price? Shockingly, analysis by the National Audit Office shows that of the 1,500 or so sites released by Government between April 2015 and March 2018, 12% were released for £1 or less. Let me get to the central point: such is the scale of the challenge, and the consistent failure of the market to tackle it, that we must look at empowering local authorities and housing associations to use public land to build the affordable housing this country desperately needs. Not only is that the best strategy for tackling the housing crisis, but it provides a way for the public to share in any rise in land value, as the Institute for Public Policy Research and others have pointed out. The Opposition oppose the strategy of flogging off public assets for developers to provide insufficient housing.

The Government must be called out for missing their own targets. I ask the Minister, how many of these homes built on public land are affordable? When it comes to central Government land sales, remarkably, the Cabinet Office does not analyse data at the programme level to assess the use to which the land is subsequently put, but let me help the Minister out. Thanks to research by the New Economics Foundation we know that only 20% of new homes built on public land will be affordable. That is simply not good enough.

We know that one of the main reasons that this figure is so low is the fact that developers are able to exploit section 106 loopholes and ride roughshod over desperate councils, leaving the public ripped off. We must also ask why local authorities are signing up to programmes such as One Public Estate, because they know such programmes will reduce the land and property they use for essential services, which are assets that might not be needed today, but may well be needed tomorrow. Indeed, much of the land and property sold under One Public Estate and other programmes is needed, despite the rhetoric around reducing waste. As the National Audit Office report said, many sites identified for disposal are still being used by public bodies to provide services.

How have we got here? Ultimately, because for almost a decade our hard-working local authorities have been forced to implement the Tory austerity agenda. Under the Conservatives, local authorities have faced a reduction to core funding from the Government of nearly £16 billion since 2010. That means councils will have lost 60p of every £1 that the last Labour Government provided to spend on local services. With a £3.1 billion shortfall in funding, many councils are funding essential services or redundancies by the quick sale of their property portfolio for good. The scale of this is staggering.

Research by the Bureau of Investigative Journalism found that £2.8 billion-worth of local authority-owned assets were sold between 2014 and 2018. In 2016, the Government said that they expected local authorities to sell assets with a value of £11.7 billion by the end of this Parliament. That same year, the Government passed legislation to allow local authorities to invest the proceeds of assets sold by April 2019 in transforming frontline services. Just how low will this Government stoop? They have decided that the right way to fund social care, youth services, libraries, bin collections and road repairs is not by reversing their tax cuts for millionaires or clamping down on tax avoiders, but by forcing local authorities to sell their assets—assets owned by the public—while further inflating private developers’ profit margins.

If we needed yet another reason to show that this is a Government for the few and not for the many, here we are. For the public, this is a ticking time bomb until the day local authorities have sold assets they will one day need. The housing crisis remains and local authorities have run out of family silver to sell to raise funds. The Tories know exactly what they are doing: forcing councils to implement austerity, leaving them no choice but to sell public assets such as libraries, youth centres and playing fields—assets our most disadvantaged people rely on—to fund vital services.

One Public Estate is part of a strategy that has been rumbling on for many years in different forms. Local government now owns just 40% of the land it owned a few decades ago and the NHS has seen its estate reduce by 70%. As our population grows, as demand is loaded on to local authorities and as our housing crisis deepens, what will this Government say when they have run out of public assets to sell, and their great housing remedy has produced only a few thousand extra affordable homes? I suspect they will not say much at all.

One thing is blindingly clear: this scheme and others like it do little for families who are desperate to exercise their right to an affordable home or for those who rely on public services. They do very little for our councils, which deserve fair funding, not schemes to encourage asset stripping. Our message to the Government is clear: stop messing about, confront these big issues head on, own up and admit that this strategy is really austerity masquerading as partnership and a house building strategy.

The public deserve far better. They deserve a Government on their side, standing up for the public good, building homes, funding and improving their public services, and unashamedly putting the many in this country first. We will make those honest, bold and fair decisions to fund our councils and build the homes we need. We have that plan; it is fully costed, fully transparent and exactly what the next Labour Government will deliver.

[Ian Paisley (in the Chair)]

I call the Minister. You have lots of time to answer all these questions.