Regional Spatial Strategies

John Healey Excerpts

Wednesday 30th June 2010 Westminster Hall

[John Healey (Wentworth and Dearne) (Lab)]

I welcome you back to the Chair, Mr Benton. May I say how much I enjoyed the debates that you chaired in the previous Parliament and how much I look forward to such debates in this one? I congratulate the Minister on achieving his place on the Front Bench. I must say that I felt a little frisson as hon. Members said, “I look to the Minister for answers on these questions,” or, “I look forward to the Minister’s response on this,” and then realised that it was not me this time but him.

I particularly congratulate the hon. Member for Milton Keynes North (Mark Lancaster) on introducing the debate in a very measured and well-informed way. As he said, the answers from the Minister are more important than the questions, so I intend to give the Minister as much time as possible to answer the questions that hon. Members have asked. I have five questions for him to answer, however.

The hon. Members for Milton Keynes North and for Milton Keynes South (Iain Stewart) both argued, rightly, that Milton Keynes is a town that has always been committed to growth and has always seen growth as part of its future, so the arguments that they make on behalf of their town, just like those of their predecessors—particularly the predecessor of the hon. Member for Milton Keynes South, who was a very distinguished Member of the House—carry a lot of weight.

I have been very impressed by the quality of this afternoon’s debate. Most of the contributions have been measured and incisive, and there have been many of them. The hon. Member for Leeds North West (Greg Mulholland) talked about the Yorkshire and Humber regional plan. The hon. Member for The Cotswolds (Geoffrey Clifton-Brown) talked about the importance of building in all areas of the country, particularly if we are concerned about the opportunities for first-time buyers and young families to get a start in life in their own area. The hon. Member for West Worcestershire (Harriett Baldwin) talked about incentives, while the hon. Member for Chippenham (Duncan Hames) talked about energy efficiency and asked questions about it. The hon. Member for Milton Keynes South is concerned about design standards, which are important.

The hon. Member for Winchester (Mr Brine) talked about the problem with the Pickles letter, which is a significant aspect of the debate. The hon. Member for Warwick and Leamington (Chris White) talked about the importance of democracy in the planning system, which is an essential feature. Even in only an intervention, the hon. Member for Peterborough (Mr Jackson) managed to make a very important point on affordable housing. The hon. Member for Cheltenham (Martin Horwood) managed to mention most of the people on his RSS constituency mailing list.

I got the job of housing and planning Minister a year ago—that was all. I inherited the regional spatial strategies and quickly found that they had very few friends, as has been underlined clearly in the debate. In most regions, the regional spatial strategies have been agreed and are in place, and they were agreed by a combination of elected local council leaders from the region, in the region. Beyond that, what was clear to me—it is still clear now—was that our regional spatial strategies and our approach to planning were too inflexible to reflect some of the differences between regions. Our approach was too top-down, but it is clear that the new Government’s approach is simply a charter for nimby resistance to new homes, which should concern us all because it could have worrying consequences. My associated concern is that it is a signal of the Government stepping back at national level from any role and responsibility in securing the new homes that are needed in all parts of the country for the future.

The consequences of the changes are already clear. It is not so much about greater local powers but fewer new homes. In many areas, that will result in the blocking rather than the building of new homes. Although the contributions to the debate have been measured, the comments of some council leaders have been clear. For instance, in response to the Government’s announcement about the abolition of regional spatial strategies, the Conservative leader of Adur district council said:

“It will reduce the number of new homes significantly”,

which he said was to be welcomed. The National Housing Federation said that the number of new affordable homes would “fall off a cliff”, while the chief executive of one of our leading house building companies described the impact of the changes as being “scary as hell”.

I am concerned that on this matter, as with other policy areas, we are seeing a gap between what the Government are saying and what they are doing. The new housing Minister says that he and the Government want Britain to be a nation of house builders. That is either top-of-the-range spin or grand self-deception. If that is the case, why was the one incentive system—the housing and planning delivery grant—swept aside as part of this year’s £6 billion cuts? Why, as part of those cuts, was £230 million taken from the Homes and Communities Agency budget for building affordable homes, through housing associations, in several disadvantaged areas? Why is it that all the affordable housing investment programmes for which funding was agreed, set aside and put in place now on hold? Will the Minister—this is my first question—tell us when the money for those affordable housing programmes will be released so that building can start again?

The hon. Member for Kettering (Mr Hollobone) spoke of the RSSs as having been abolished, but that is not the case. As the hon. Member for Kingswood (Chris Skidmore) said, until Parliament passes legislation to revoke RSSs, they will not be abolished—they will remain in place. I fear that the Pickles letter does little to help the situation. Indeed, it creates a legislative limbo in which councils, planners and the Planning Inspectorate are uncertain of their principal reference points. At a conference at which I was speaking this morning, a distinguished academic who knows a lot about the matter described the planning system—the result of two months of Government announcements—as a vacuum and in a state of chaos. That should surprise no one, because the new Secretary of State has been having a go at every part of the planning system like a bull in a china shop. My second question to the Minister is therefore: what is the legal planning status of the Pickles letter? When will the Government publish the legislation that will allow them to do what they wish?

[Martin Horwood]

Perhaps the right hon. Gentleman will tell us the exact legal status of letters issued by Ministers in the previous Government that told planning authorities and planning inspectors in the south-west to pay attention to the emerging RSS there and said that it was a material planning consideration, even though it had not been implemented?

[John Healey]

The hon. Gentleman misses the point. The framework for regional spatial strategies had been legislated for by the House and that remains the case. However, questions arise about the extraordinary letter sent by the new Secretary of State.

I turn to a point that at least two Members raised this afternoon: the desire to move from a planning-led system to an incentive-based system. There is certainly a case for incentives in the system. It can be said that the housing and planning delivery grant and the extra funding for growth areas and growth points were insufficiently sharp to do the job on their own, but they were an important part of the system and I am sorry to see this year’s housing and planning grant go. However, the Government’s idea of a council tax match at 100% for every new home built is an 18-carat con—just consider the money!

The idea is that that would cost £250 million in the first year. It was meant to be funded by switching the housing and planning delivery grant, but that amounted to £135 million this year and it went in the Chancellor’s first swathe of cuts. There is no new money for this proposed incentive scheme. In years two, three, four, five and six—the scheme is meant to last six years—it will be top-sliced from local government grant through the formula system at a rate of about £250 million a year. A £250 million cut in the local authority grant system is the equivalent of a 1% rise in council tax. It is not only £250 million a year, however. The effect is cumulative, so the cost in the second year will be £250 million plus another £250 million. In year three it will increase again; and the total over the six years will be £5.25 billion—the equivalent of an extra £320 on the average band D property council tax.

The system will rob some councils in order to pay others. Those hon. Members whose constituencies include county council areas should remember that although county councils are not planning authorities and are not responsible for housing, they will bear the brunt of the cuts through the switch to district councils, which will get the cash. It must be obvious to anyone that if the scheme ever sees the light of day—if DCLG Ministers can persuade the Treasury to put it in place—it will lead to council tax chaos. It will blow the Chancellor’s Budget promise of a council tax freeze out of the water. My fourth question to the Minister is therefore: when will the scheme be in place? My fifth question is this: will there or will there not be new money for the scheme, or will it be top-sliced as in previously published plans, and taken from local government budgets?

I shall answer my sixth question myself to save the Minister the trouble. What is the new Government’s policy on housing for the future, and what are they saying to those young people who want to move out of their parents’ house and set up home for themselves? The answer is clear: no new homes, and a capital “NO” to new affordable homes. Since the two parties got into Government, they have been waving two fingers at those who need decent, affordable, secure homes for the future and at those who aspire to move into and buy their own homes.

We are right at the start of this Parliament, but within three, four or five years—before its end—the consequences of the changes that we are discussing this afternoon will be serious for many young families across the country and very clear to them when they consider how to vote at the next election.