Social Housing Bill (Third sitting)

Debate between John Slinger and Gideon Amos

Committee stage
Thursday 29th October 2026 Public Bill Committees

[Gideon Amos]

I almost echo the “Hear, hears”. However, that money would struggle to add about 1,000 social homes per year to the current 18,000, which is the closest thing to a target that we can divine from the Government’s policy announcements—about 18,000, 19,000 or maybe 20,000 a year. We need a whole lot more than that. The National Housing Federation and Shelter believe that we need at least 90,000 a year. The current level of ambition really is not high enough. I encourage the Government to focus their attention less on issuing thousands more planning permissions. We need planning permissions to keep coming through, but since we already have a million plots with planning permission not built for private housing, they should focus their attention instead on the delivery of social housing and on setting a target—if not this one, a target of some sort.

[John Slinger (Rugby) (Lab)]

Perhaps the hon. Gentleman was going to come on to this point, but what practical steps would he suggest for his Liberal Democrat local government colleagues? I think it is fair to say that they do not have the greatest reputation for approving housing developments in their areas. He has, admittedly, said that he is more in favour of social home building than private dwellings, but what practical steps would he take to encourage his local government colleagues on his target?

[Gideon Amos]

I welcome the hon. Gentleman’s question, which anticipates the Liberal Democrats being in government and in a position to ensure delivery of housing. I point him to Eastleigh council, which has taken over a development of 2,000 homes not being delivered by its developer. It has made it a local authority development and is now driving it through. I recently went down to visit Liberal Democrat-run Cornwall council. The previous Liberal Democrat administration set up a housing company that is building 180,000 homes a year—sorry, I mean 180; I wish it were 180,000—and is using the profits from that to build social rent homes.

I invite the hon. Gentleman to join me in my constituency, where we are building 400 council homes on the North Taunton estate and have retained our council housing stock. Sadly, because of right to buy, it is not the 30,000 units it used to be—it is now only 6,000 homes—but we are doing what we can. My colleagues in Somerset council are bringing new council houses to parts of Somerset for the first time in a generation. I encourage the hon. Gentleman to look at the activity of Liberal Democrat authorities on the ground.

New clause 1 would set a target of 150,000 social homes a year, which would something for the Government to aspire to. If not that target, what target will the Government set and when? The new clause does not require that many to be built; it is not a money resolution. It would simply require the Government to publish a strategy for what would be required to reach the target. If the Government are serious about the housing crisis, they should have no objection to setting a target of this kind. In our manifesto, we set an allocation of £6 billion a year towards that achievement. I appreciate that it would take a number of years to reach 150,000.

In the interests of time, I will move on to new clause 4, concerning borrowing restrictions on local authorities. I will give some “Hear, hears” to the Government for the Prime Minister’s words about reviving council housing and delivering a lot more of it, though I fear there are more words than pounds in his pronouncement. Shelter has commissioned research from Savills examining the impact of the housing revenue account debt on councils’ ability to build new social homes. The research found that writing off HRA debt could unlock between 190,000 and 284,000 dwellings.

Shelter also recently published research with Pragmatix Advisory that assesses the economic and financial case for cancelling HRA debt and investing in social housing. The central conclusion is that the policy would be compliant with the Government’s fiscal rules, while generating a substantial long-term economic benefit of £140 billion over a 60-year timeframe. My colleagues in Somerset council told me that if were not for the Government’s self-financing debt rules, they could build out another 630 council houses on top of the ones that I outlined to the hon. Member for Rugby.

I appreciate that the costs of writing off that debt would be significant—I am sure that the Minister has made that point—but if the Government will not write off all that debt, will they write off some of it? In our manifesto, the Liberal Democrats put an extra £2 billion a year into this area. Will the Government put in £2 million to write off some HRA debt? It is important to get councils building again. Those that have their housing revenue account maxed out have the political will, and in many cases the experience, to do so, but they lack the necessary financial headroom. If we want to get councils building, we need to look seriously at the HRA debt.