Brexit: Affordable Housing

Lord Forsyth of Drumlean Excerpts

Thursday 21st December 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right to highlight the importance to the construction sector of workers from the EU; they constitute about 18% across the country, although obviously it is higher than that in some parts of the country and certainly in London. The Government are of course very much aware of this and it is part of our negotiations. The noble Lord will be aware that we have made a fair and serious offer to protect the rights and entitlements of EU nationals, which is all part of making sure that we extend a welcome to those people who are part of the fabric of our life and who are very important to our economy.

[Lord Forsyth of Drumlean (Con)]

My Lords, I declare an interest, as on the register, as chairman of a bank. Does my noble friend agree that the decision by the European Banking Authority to increase the cost of capital for banks that lend to small and medium-sized builders from 100% to 150% has added hugely to the cost of building houses, and that, once we have left the European Union, the Bank of England will be free to set rules that reflect the interests of our economy and the policy of Her Majesty's Government to encourage more housebuilding?

[Lord Bourne of Aberystwyth]

My Lords, my noble friend is, of course, right about the adverse effect that the decision to raise those interest rates will have on the construction sector in the United Kingdom and elsewhere, and he is right to say that the Bank of England will have increased freedom once we leave the EU. However, of course, banks have to compete in an international environment as well.