Select Committee on Communities and Local Government

John Healey Excerpts

Thursday 11th February 2016 Commons Chamber

[Mr Betts]

That was an issue the Committee was mindful of. That wording in the report is very clear. Where there are large surpluses, and there are housing shortages to be met, housing associations should look to make sure those surpluses are spent in a way that delivers more homes.

It is also important that housing association boards look at how their resources can be managed to the maximum efficiency. The public sector as a whole has had to have an eye on efficiency in the last few years. The housing associations are deliberately not in the public sector, and the Government have taken steps to deal with that issue. Nevertheless, they receive public funding, and they should make sure they spend that public money as efficiently as possible.

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

I welcome this unanimous cross-party report, which reinforces criticism and opposition already voiced by Conservative Members and by the Conservative-led Local Government Association about the huge loss of affordable homes in rural and urban areas alike as a result of the Housing and Planning Bill. The other place is set to examine the Bill’s provisions on housing associations’ right to buy and the forced sale of council homes on 3 March, so what steps will my hon. Friend take to make sure that peers know all about this important report before then?

[Mr Betts]

I would have thought that making this statement today was a start to that process and give the report some publicity. I am sure that my right hon. Friend will be sending messages to his colleagues in the other place where he wants to draw particular aspects to their attention. A key issue is how the right-to-buy scheme should be funded. I think it would be very helpful for their lordships if the Government were to produce the calculations on how the sale of high-value council assets in relation to right-to-buy discounts, the replacement of the sold-off council homes, and the brownfield regeneration fund—which I think we can all support as a very good principle—can all be funded. We need to see the Government’s figures given that we had evidence from the Chartered Institute of Housing that the maximum amount raised from the levy would be about £2.2 billion a year, which would not cover the three costs that need to be covered to meet the Government’s intentions.