Local Government Finance
Debate between Kate Green and Kris Hopkins(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Kris Hopkins
I respect the wise words of my hon. Friend. He is right: the council tax has dropped 11% as a consequence of the actions that we have taken. It doubled under the previous Government. There is a need to move away from grant and to grow local economies. The best councils are now stepping up to the mark and growing those economies. On the better care fund, it is a difficult issue, but we are facing up to it. Where previous Governments have failed to do this, we will deliver savings and ensure that those vulnerable people are getting a decent service and the dignity that they need.
Kate Green (Stretford and Urmston) (Lab)
What assessment has the Minister made of the likely impact on some of the most vulnerable people—disabled people, low-income families with children and women fleeing domestic violence—of his plans not to put more money into local welfare assistance and not to protect that funding?
Kris Hopkins
As I have already said, the 10% of areas that are most deprived will receive 40% more than the least deprived. Issues of domestic violence are important to this Government and we have put additional moneys—some £10 million— into that. We will constantly monitor resources related to the issues the hon. Lady raises.
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Kris Hopkins
No, I will carry on, because I want to make some progress.
I will just pick up on a point made by the hon. Member for Wolverhampton North East, who said that I had said that there was no crisis. Just to provide some clarification and so that this myth does not continue, I will say that I was asked about a housing bubble in London and whether or not there was a crisis, and there is not. I actually used the backing of the Governor of the Bank of England, who says there is no housing bubble, and that was what I was specifically referring to. Also, the Chancellor has put in place the means to intervene on any of the measures that we have in place, through the Financial Policy Committee; if a bubble was emerging, he could intervene at that point.
An issue that has come out in the debate is the comparison between, “We’ve said it’s about saving money,” and, “You’re saying now it’s about supply.” There is a need to save money. We inherited a bill that had doubled to some £24 billion by the time we came to power, and it was important that we addressed it because we ended up with a deficit where we were spending—in fact, despite a reduction of a third, we are still paying £120 million a day in interest and we have a responsibility to address that.
Kris Hopkins
I am sorry, but I will not give way.
Despite the fact that we have this huge deficit, we wanted to ensure that the burden that was placed on this sector was as small as possible. In fact, it is 0.3% of the deficit reduction strategy that was put in place.
Answering the question about supply, the Government have already delivered 334,000 houses; we have made a commitment of £20 billion to deliver 170,000 houses before the end of this financial spending period; and we have made further commitments of £23 billion to deliver another 165,000 affordable houses. So I am afraid that the idea that money is not being raised or that councils or housing associations do not have the ability to deliver affordable housing is false. Despite the limited resources that are available, the Government have been absolutely committed to delivering affordable housing, and we will continue to deliver it.
Rather than talking about imaginary numbers of a billion houses over the next period, let me say that Labour clearly failed to deliver in a time of boom. For a period of 13 years—it was 11 years of boom— Labour failed to hit the target that it was talking about. And it has not said how it would fund its plan to address this issue.
On the ground out there at the moment, there is real growth in supply. The construction industry is running at a six-year high; the construction sector has said that it has had a higher expansion in the past six months than it has had for some time; and most of that construction growth is from housing. So the supply issue is being addressed by Britain getting out and building, and we have resourced that.
The Chartered Institute of Purchasing and Supply has said that we are experiencing the highest rate of building for a decade and that housing supply is now at its highest since the end of the unsustainable housing boom of 2008. As I said, some 334,000 houses have been built.