Planning and Infrastructure Bill

Luke Murphy Excerpts

2nd reading
Monday 24th March 2025 Commons Chamber

[Kevin Hollinrake]

My hon. Friend is absolutely right to raise that point. The increase in this country’s population is part of the reason why we have a rising need for housing, as well as for temporary accommodation. That all impacts on the system.

[Luke Murphy (Basingstoke) (Lab)]

The hon. Member talked about missed targets, and about affordability. In 2010, the first of 16 housing Ministers under the previous Conservative Government boldly claimed, as did many of his successors, that the Government would improve affordability of housing overall. While they were in power, affordability, as measured by the ratio between median house prices and wages, reduced from 6.85 to 7.7. Can he explain that failure to the House?

[Kevin Hollinrake]

The hon. Gentleman fails to acknowledge that there were quite a few different housing Ministers during Labour’s previous tenure as well, but he makes an interesting and important point that I am happy to answer. Of course we want to build more houses to tackle affordability problems. I say that in relation to social housing, because during those 14 years, as well as delivering 2.5 million new homes, we delivered 750,000 affordable homes.

[Luke Murphy]

The point I was making was about outcomes. The previous Government committed to improving affordability and abjectly failed to do so. Can the hon. Member explain why?

[Kevin Hollinrake]

As I said, there is no question but that there are underlying problems in the marketplace. We delivered 1 million homes, which was our target, in the last Parliament, but of course we agree that supply and demand is part of the equation. It is not the only part, so we support the ambition to deliver more homes. We had a similar commitment in our manifesto, and there is a context for that within the overall framework for a higher target.

The Government must reflect on the fact that although the construction sector is an important part of the economy, it represents only around 6% of GDP. Growth in the other 94% has been killed stone dead by the twin human wrecking balls who are the Chancellor and the Deputy Prime Minister. Having inherited the fastest growing economy in the G7, the Chancellor proceeded to trash talk the economy recklessly for six months, before hitting it with £70 billion per annum of tax and borrowing. If that was not bad enough, the Deputy Prime Minister introduced the Employment Rights Bill—[Hon. Members: “Hooray!”] Wonderful. All Labour Members’ union supporters will applaud them for it. It will kill tens if not thousands of businesses, and potentially hundreds of thousands of jobs throughout our country.

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[Gideon Amos]

My hon. Friend and neighbour is absolutely right, and that is why the Liberal Democrats were the only party to put in our manifesto the funds needed for Natural England and the Environment Agency to address the challenges she rightly sets out.

Lib Dem councils are also granting planning permissions, thousands of them—in my county of Somerset alone, 13,000 homes have permission but remain unbuilt.

[Luke Murphy]

What impact does the hon. Gentleman think the 68% cut to the affordable housing budget under the coalition Government had on the delivery of affordable housing?

[Gideon Amos]

There was a significant increase in empty homes being brought back into use under the coalition policies promoted by the Liberal Democrat Ministers. If we look at the figures for the cuts the Government made between 2010 and 2024, we see that those cuts were far deeper after 2015, according to all Departments—the record will bear that out.

[Luke Murphy]

There was not a greater cut in the affordable homes budget at any point between 2010 and 2024; the largest cut—nearly 70%—was under the coalition Government.

[Gideon Amos]

I was referring to the departmental cuts. If we look at all Departments across Government, including Housing, Health and Education, the cuts were far deeper after 2015.

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[Luke Murphy (Basingstoke) (Lab)]

I congratulate the Secretary of State and the Minister for Housing and Planning, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), on bringing this Bill before the House, not least because I really believe it is potentially the most important Bill to be brought forward in this Parliament. As a country, we have not been building enough homes or infrastructure, and our planning system does not deliver for nature. This is about more than just homes, infrastructure and nature: this is one of the root causes of our falling productivity. It has been undermining growth and jobs.

However, this is also about the home and the roof over people’s heads: it is fundamentally about people. My parents grew up in council housing. My grandparents spent most of their lives living in council housing—in fact, my nan and grandad on my dad’s side were low-wage cleaners, with my nan working into her 70s and living in a council flat in Battersea for the best part of 50 years. That council flat offered my grandparents the foundation to be able to bring up my dad—the same was true on my mum’s side—and, later on, to provide security and a better life for me and my sister. Too many people in low-wage jobs, wherever they are in the country, can no longer afford to buy or rent a home. That is fundamentally what this Bill is about.

To say that we would not start from here is an understatement. In 2010, the then Housing Minister boldly claimed that the Conservative Government would radically improve housing affordability. In my constituency, affordability has massively decreased; when the previous Government came to power, the median house prices to earnings ratio was 6.8, but it was 8.8 by the end of that Government. George Osborne promised a major change in how we build infrastructure in this country. What he failed to mention was that the average consent time for nationally significant infrastructure projects would nearly double.

[Josh MacAlister (Whitehaven and Workington) (Lab)]

In my constituency, we have hundreds of acres of land that is perfect for new nuclear power to be built. As a country, we have not completed a nuclear power station in over 30 years, and part of the reason for that is the state of our planning system. Does my hon. Friend agree that by making the changes in this Bill, we will be able to unlock vital national infrastructure such as new nuclear?

[Luke Murphy]

I thank my hon. Friend for his intervention —it is no surprise that he is raising the issue of nuclear, for which he is a doughty champion in this Chamber. I very much agree with him about the need to build new nuclear, and I recognise the previous Government’s failure to do so.

Fundamentally, this Bill is about building more homes, building infrastructure and protecting nature. My constituency of Basingstoke is a growing town—no change there. We have been a growing town for many years, since the 1960s, as a London overspill town. We have grown significantly, but I want this Bill to bring about a different approach: one that builds the homes that are so desperately needed, but also ensures that they are more affordable, builds the necessary infrastructure alongside them, and protects nature. The previous Government did none of those things.

I will mention a few measures in the Bill that I particularly welcome. First, the commitment to cut the timeline for nationally significant infrastructure projects by 50% is incredibly welcome—internationally, this country has become a laughing stock when it comes to our ability to deliver significant infrastructure. The measures to overhaul connections to the grid for the electricity network are also incredibly welcome; in a poll by Cornwall Insight, 75% of those involved in clean power said that the grid connection issue was the biggest barrier to us delivering on our clean power ambitions. The Bill also streamlines and improves our processes for transport infrastructure, as well as improving the roll-out of electric vehicle chargers, a technology that Conservative Members now apparently oppose.

I really welcome the changes to planning fees—not just the changes in this Bill, but those announced previously by the Government. One of the key reasons why developments have been gummed up in the planning system is the lack of capacity within that system to deliver on them. The Bill should restore the role of the planner, not just as a tick-box exercise but to genuinely plan the places in which people live. As someone who was a political adviser to the Labour Opposition between 2010 and 2015, I also highly endorse the proposals on development corporations and compulsory purchase. Contrary to what has been said by Conservative Members, CPO reform is essential to delivering the housing that we need. As my hon. Friend the Member for Milton Keynes North (Chris Curtis) highlighted, it was backed by Winston Churchill, who recognised that hope value did not belong to the landowner but was the result of Government investment in infrastructure. That was also recognised by known left wingers such as Adam Smith.

To go back to where I started, this Bill is fundamentally about delivering affordable homes for people who badly need them, wherever they live. I want to be able to look my constituents in the eyes and say that they are going to have access to an affordable home, just like my grandparents did so many years ago.

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[Bradley Thomas]

I agree wholeheartedly with my right hon. Friend. She makes an important and pertinent point. If we get urban densification right, it is a catalyst for the economic and social renewal of town centres, which is desperately needed.

[Luke Murphy]

rose—

[Bradley Thomas]

I will make a little progress, and then I will give way. Linked to urban densification is a pertinent importance to focus on the quality and aesthetic of the development that is taking place. I have long been a fervent advocate for design codes and the role that locally led placemaking principles can play in determining the quality of an area and its attractiveness for future inward investment.

I believe instinctively that residents across the country are not nimby, but I fear that successive Governments, including the previous Conservative one and the Labour one before that, have allowed mediocrity to reign. There is a lack of local distinctiveness in development, which causes an entrenched perception of nimbyism running throughout the country. I implore the Government to consider reinstating the Office for Place, which was disbanded back in July, and to think about the importance of those aesthetically-based placemaking principles and the role they can play in promoting the positive impacts of development. Linked to that, we have an acute need and opportunity to promote smaller, more artisanal developers, particularly those focused on developing the vocational skills needed to generate the incoming pipeline of talent to support the house building industry.

I will make a couple of points that relate to my constituency, but they probably apply to many others across the country. One is on the protection of the green belt. Green belt is a technical designation, but to the public at large, it is often considered to be lush open fields and meadows. My constituency has this large buffer between Bromsgrove and Birmingham. It is not the case that residents of Bromsgrove are nimby—I do not believe they are—but they do not want the identity of Bromsgrove to be eroded and, by virtue of that, it to become some kind of extension of Birmingham.

For me, and for many of my constituents, that word “identity” underpins the fundamentals we should be talking about. It is about sense of place and a lifestyle that people identify with. When I think about constituents from my area, they have probably grown up in Birmingham and moved into north Worcestershire. In many cases, they have done that because there is an aspirational element to moving into the countryside, and they want to benefit from the countryside that Worcestershire offers, while being in close proximity to Birmingham and all the services it offers.

I will wrap up my comments with four quick points that I would like the Government to focus on. They should consider intensive urban densification and the positive role that can play in delivering housing where it is needed and where young people live, and in regenerating town centres undergoing a lot of change.