Lindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)
George Hollingbery (Meon Valley) (Con)
Let me ask the hon. Lady about leadership in this business. Some 30% of local plans were approved when this Government took office and that figure is now approaching 70%. Does that mean that we can expect much more house building to occur? Furthermore, let me press her on the structure of the building industry. The fact that we have larger and fewer house building companies is hardly a surprise when the Labour party so mismanaged the economy that—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I remind the hon. Gentleman that interventions should be short. Speeches must come after the Minister has spoken, and I do not want the hon. Gentleman to use up all his ammunition at this stage.
Emma Reynolds
I thought the hon. Member for Meon Valley (George Hollingbery) was starting to deliver his speech. I say gently to him that the last global financial crash was not caused by the Labour Government’s spending on schools and hospitals, and for him to tell us otherwise is completely fatuous.
Labour has set out plans to boost the role of small house builders, self-builders and custom-builders, who tell us that access to finance and access to land are the key barriers to getting homes built. We have proposed a help to build scheme, which will help them to access finance through the banks—crucially, to get them building—and on access to land we have said that we will ensure that local authorities allocate land in their five-year land supplies, while giving them guaranteed access to public land.
Kris Hopkins
Having put a prospectus out there, I am not going to declare that to you. The key thing is that where individuals come forward—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We do not use the term “you” in that way. The Minister is not referring to me. I am sure that rule is for the benefit of the House.
Kris Hopkins
I apologise, Mr Deputy Speaker. The key is that where local authorities come forward, we will enter into discussion with them and hope to deliver that.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Before I call the next speaker, instead of imposing a time limit, may I suggest that Members speak for about eight minutes so we can get everybody in?
Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
First, may I draw the House’s attention to my interests as declared in the register?
I have to say to the Minister that his figures are very wide of the mark indeed. The simple harsh truth is that the present Government have the worst record on housing of any Government since the end of the second world war. Fewer new homes have been built in their period in office than in any comparable period of peacetime since the 1920s. On average, over their four years in office the coalition Government have managed to build just 112,000 homes a year. By contrast, the previous Labour Government built 1.8 million homes over their 13 years in office, averaging 145,000 homes a year—not enough perhaps, but very substantially more than we are seeing from the present Government, and I am surprised that the Minister does not have the honesty and integrity to admit that. Even in the depths of recession—[Interruption.] I will withdraw that.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Before you do, I will just say that we are going to be courteous to each other. This is going to be a very interesting debate, and I know you do not mean that and I see you are going to withdraw it.
Mr Raynsford
I ask your leave to withdraw that last statement, Mr Deputy Speaker. I was really just saying that the Minister ought to look at the figures published by his own Department and not exaggerate, or gild the lily, by trying to give us an impression that things are much better than they are. This Government’s record is, in fact, a very poor one: in 2011, they managed just 113,000 new homes; in 2012, they built just 115,000 new homes; and in 2013, they got no further than 110,000. Those are the simple figures and they come from his own Department. All they demonstrate is that the previous Labour Government in their last year in office—in 2009, right in the depths of recession—built more homes in one year than this Government have built in any one year since. We built 125,000 homes in 2009 and the level has decreased to an average of just 112,000 a year over the past four years during which this Government have been in office.
Mr Deputy Speaker
Order. I have explained that interventions must be short. The hon. Gentleman has been here a long time and he has to help us to get other speakers in. I am sure that the right hon. Gentleman got the gist of the question.
Mr Raynsford
I did indeed. I say to the hon. Gentleman that given that output is currently averaging just 112,000 homes a year, a target of 200,000 represents a very substantial increase. We can have an academic debate about whether that is enough, but the harsh reality, which his party should not have ignored, is the total failure of this Government to deliver anything near the level required. The output number has to be doubled, and I hope he will support a Labour Government when they are in power—if he is still around—and are delivering to that target.
The Minister, like his predecessor bar one, the right hon. Member for Welwyn Hatfield (Grant Shapps), loves to project future increases in numbers, so we hear about 170,000 affordable homes, for example. The right hon. Gentleman used to quote that figure, and we heard it from the Minister today. Let me just give the actual figures on affordable homes started by this Government: in 2010—the third and fourth quarters—they started 10,990; in 2011, they started 25,000; in 2012, they started 20,000; in 2013, they started 24,000; and in 2014—
Mr Deputy Speaker
Just to help, I think the right hon. Gentleman might be on silent meals if he does not give way quicker.
Mr Deputy Speaker
Order. May I just be of help? The right hon. Gentleman has had eight minutes now and I am going to bring the hon. Lady in next. If she wishes to use interventions, she will not mind dropping down the list.
Mrs Main
Thank you, Mr Deputy Speaker. This is a very pertinent point. I would like to tease out something about the intermediate option that the right hon. Gentleman is talking about. Would he like to have means-testing of current social housing tenants? As we know, some of them earn lots of money.
Mr Deputy Speaker
Order. I am going to have to help. The hon. Lady was going to speak next. She will not mind going down the list a little bit, because it is unfair to keep intervening. The right hon. Gentleman has already taken nine minutes. I want to get everybody in and these interventions are not going to help when someone knows they are going to speak next.
Mr Raynsford
I am grateful for that, Mr Deputy Speaker, and I will now wind up because I have gone beyond my allotted time. I hope that the hon. Lady will forgive me for not answering that very detailed question. Perhaps she will be able to expand on the issue when she makes her speech.
I believe the Government need to look seriously at how they are spending money, because they are spending a lot of money on housing. The housing benefit bill has risen dramatically, despite the Government’s pledge to cut it, because they have been increasingly dependent on high-rent solutions and people have had to be given housing benefit to help them meet those higher rents. The Government have therefore been compounding the problem while talking about reducing housing benefit. At the same time, they have been spending money on the new homes bonus, a scheme for which nobody has yet produced any evidence to demonstrate that it is having any significant impact, despite more than £7 billion being committed to it. Their Help to Buy 2 scheme is highly profligate, with a £600,000 maximum limit and no tie to new homes, and, again, there is a question as to whether it is a good use of money. So I believe the Government are culpable—
Caroline Lucas (Brighton, Pavilion) (Green)
I very much welcome this debate. The last two speakers have talked about their own constituencies in London. Clearly, my constituency is not in London, but it is experiencing similar house prices and many of the stories that we have heard this afternoon have resonance in Brighton, Pavilion. The failure of successive Governments over the past 30 to 40 years to build anything like enough homes is a scandal that has been ignored by those in power, who have been busy enjoying the short-term economic benefits of inflated house prices. Those prices have skyrocketed in the past year in a market that is both irresponsible and unfair.
I also welcome the motion tabled by the official Opposition. It represents a step in the right direction, but I am concerned that it is quite vague and I hope that they will fill in some of the gaps during the debate. That is why I have amended the motion, and I will say a few words about that in a moment. I want to focus on the issue of council homes, which have not been built in significant numbers for decades. Instead, hundreds of thousands of them have been sold off cheap. On the failure to build, a recent House of Commons Library note shows the long-term steep decline in house building in England over the past 35 years.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Perhaps I can help the hon. Lady. She might have tabled an amendment but it was not selected, and the motion has not been amended. We are dealing with the motion before us and no other.
Caroline Lucas
Thank you, Mr Deputy Speaker. I can assure you that I was not speaking to the amendment—perish the thought. I was speaking to the items in the motion—
Mr Deputy Speaker
Order. The hon. Lady said that she had amended the motion, and the problem is that people might therefore think that there is an amendment to the motion. That is all I am bothered about. There will be just one vote.
Caroline Lucas
Thank you, Mr Deputy Speaker. I sought to amend the motion—devastatingly unsuccessfully —and I will not mention the matter further. I do, however, want to mention the substantive issues in the Opposition motion, as well as certain things that are not in it but have nothing to do with my amendment—or rather, my proposed amendment that does not exist. It was a figment of my imagination.
On the failure to build, a recent House of Commons Library note shows the long-term steep decline in house building in England over the past 35 years. Nearly 307,000 homes were built across all tenures in England in 1969-1970, but the number fell to just 107,000 in 2012-13. There was a minor increase in housing association building over that period, although it amounted to fewer than 15,000 more dwellings being built last year than in 1969-70. What is most striking is that the steepest decline was in the building of council homes, which fell from 135,000 to 1,360 over that same period.
To their credit, the last Labour Administration did attempt to address the chronic backlog of repairs and maintenance left after 18 years of deliberate Tory neglect. It is just a shame that this was done at the expense of building the council homes that were needed. For example, only 60 council homes—a tiny number—were built nationally in 2001-2002. By 2008-9, the figure had gone up, with 490 council homes completed in that year, but that was still fewer than one per constituency. The number of housing association homes was higher, with 14,000 in 2001 and 26,500 in 2008, but the numbers were still woefully low. The current Government are clearly worse; they have cut funds for social housing by 60%. The need for strong solutions to get the council and social housing we need built is an absolute priority in our discussions this afternoon.
I see the reality of the housing crisis every day in my constituency. The chronic long-term lack of housing supply is evident everywhere in Brighton, Pavilion and I am regularly contacted by people in despair and in real housing need. Our local paper, the Brighton Argus published a housing special last Saturday entitled “Can you afford to live in the city?” This was a rhetorical question, because for most people in housing need, the answer is a very clear no: the average price in the city has been driven up to more than £367,000. We have seen a 13% increase in house prices in the last quarter alone. Therefore, it is no surprise that we have 18,000 people on the council’s housing waiting list.
The city’s housing market is fast becoming known as a “mini-London”, with average house prices in Brighton nearly twice the national average. Young Brightonians who do not have rich family backers have no hope of getting on the housing ladder. The combination of stratospheric rent and price rises and policies such as the pernicious bedroom tax—which appear to be designed to push people in need of housing benefit, particularly those with disabilities, out of desirable areas—has created a situation in which people on low incomes and those on average wages are being pushed to the margins.
The motion does not say very much about how the Opposition would achieve the aims that they are putting forward. Those aims are laudable, but where are the means? I would like the unfair restrictions on local authorities to be lifted. Housing associations are allowed to borrow against their assets to build but councils are not, despite being able to do so more cheaply. That makes no sense. We must fully lift the borrowing cap to get council homes built again. Councils suffer unnecessary restrictions. They are bound by prudential borrowing rules anyway, so the cap is arguably unnecessary; it is just stifling the building of local authority homes.
Using the Department for Communities and Local Government self-financing model, a joint report published in 2012 by the National Federation of ALMOs, the Local Government Association, the Chartered Institute of Housing, the Association of Retained Council Housing and many others showed that if the borrowing cap were fully lifted and councils were able to make prudential use of their borrowing potential, they could borrow up to £20 billion over five years. That extra borrowing could enable between 170,000 and 230,000 extra homes to be built.
The main justification for the imposition of borrowing caps on local housing authorities is that the additional debt incurred by councils would add to the overall Government debt, but that need not be the case. The UK is unique in Europe for classifying a wide range of bodies as coming within the definition of “public sector” that is used to measure public debt. No other EU country treats social housing investment in the way that happens in England. There is a strong case for local authority borrowing for housing not to be counted towards the public sector debt. Local authority borrowing for housing would be largely self-financing in any case, and it is transparent and low risk.
I would be the first to admit, however, that lifting the borrowing cap will not be enough on its own to replenish our social housing stock following the giveaway of council houses under right to buy and the failure to build. A significant increase in grant funding is needed if we are to begin to reverse the chronic failure to build the housing that we need. That money would also create the benefit of a multiplier effect, generating jobs, apprenticeships, an increase in tax revenues and reduced welfare spending. Shelter has said that £1.22 billion extra, on top of the current £1 billion of Government grant spend, could be sufficient to get us building enough homes if it was combined with a package of reform. That would certainly be a good start. Serious consideration should be given to channelling some of the huge windfall increase in stamp duty revenues predicted by the Office for Budget Responsibility into building new council homes. That would be one way of using some of the tax proceeds from our distorted market to increase social housing supply.
Mr Deputy Speaker, you are looking a little fidgety, if I may say so. That indicates to me that you would like me to wind up shortly, and I will do so. However, I just want to mention one other matter, which has not been raised this afternoon. The increase in housing supply that we need must involve housing that people can afford to run, as well as buy or rent. This is an opportunity to tackle the scandal of fuel poverty and the rising cost of living. We must use house building to reverse this Government’s weakening of energy saving, water efficiency and other standards. This Government have acted to prevent local authorities from going further than minimum national standards for energy efficiency, despite those standards looking weaker by the day.
Given the scandal of fuel poverty and the hardship being caused by high energy bills, as well as the urgent need for radical cuts to carbon emissions, new homes must be built to a genuine zero carbon homes standard. The Government’s exemptions for small developments mean that around a third of all homes could be exempted altogether. If the Government were sticking to the original zero carbon homes standard, the situation would not be so bad. Under the original standard, annual energy bills for residents in new homes would be under £300, but the Government are again capitulating to big business, watering down the standards and creating loopholes, so energy bills will be around £800.
In summary, we need sufficient homes, which means lifting the borrowing cap and ensuring that imaginative sources of revenue such as stamp duty funding are properly ring-fenced. It also means ensuring that our homes are fit to live in.