Small and Medium-sized Housebuilders

Lord Stunell Excerpts

Wednesday 12th July 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My noble friend is right. That is why the NPPF includes policies to support SMEs; for example, it sets out that local planning authorities should identify land to accommodate at least 10% of their housing requirements on sites no larger than one hectare. That might seem large, but we also make it clear in the framework that local planning authorities should work with developers to look at subdivisions in those areas where we could help speed up the delivery of homes, particularly by SMEs delivering those homes.

[Lord Stunell (LD)]

My Lords, the brickmaker Forterra has shut its Howley Park brickmaking plant because of a 31% decline in demand for bricks in the past 12 months. That coincides with news that, in this last financial year, the Minister’s department has sent back to the Treasury £225 million unspent on affordable housing. Is it not time that there was some connection inside the department to make sure that the available money is spent on affordable housing, possibly affordable social housing as a countercyclical measure at a time when the private sector is under such pressure?

[Baroness Scott of Bybrook (Con)]

I do not know whether the noble Lord is aware, but we have been through quite a lot of economic volatility, which has obviously led to developers’ slowdown. Therefore, the amount of money mentioned in the Guardian article that I believe the noble Lord is referring to, about money going back to the Treasury, is not quite correct. It is actually being put into projects of more than one year, so it will be forward spent. As the economy strengthens, as it is doing now in the housing sector, that money will be available to build affordable and other housing.