Planning and Infrastructure Bill (Seventh sitting)

Luke Murphy Excerpts

Committee stage
Wednesday 14th May 2025 Public Bill Committees

[The Chair]

I call Luke Murphy.

[Luke Murphy (Basingstoke) (Lab)]

Thank you, Dr Huq; it is a delight to serve under your chairship. Listeners to the debate have missed out on an entertaining discussion of the procedure of voting on amendments and clauses. I rise to comment briefly to amendment 29.

I do not think that anyone on the Government Benches disagrees with the notion that we need to build more genuinely affordable homes and social rent homes, but I do not think that the amendment fully accounts for the cost of 150,000 additional social homes. A generously low grant rate for a social home is around £183,000 a year, and that would be just over 30,000 homes a year, so there is a significant gap between what the hon. Member for Taunton and Wellington proposes and what can be afforded through the amount of money that is being suggested.

I also gently remind Opposition Members that the largest cut to the affordable homes budget occurred in 2010, under the coalition Government. The hon. Member for Taunton and Wellington and I have debated that previously. That was a 66% cut in the affordable homes budget, and we would not be in this situation had such a significant cut not been enacted.

[Matthew Pennycook]

Amendments 29, 73, 17, 74 and 94 would introduce additional requirements for spatial development strategies in relation to housing. They seek to specify or describe what spatial development strategies must include across a range of areas, such as housing target limits, affordable housing definitions and housing density requirements.

I thank hon. Members for their interest in the Bill’s spatial development strategy provisions. However, the Government believe that these amendments are not productive in achieving the Bill’s objectives. I will attempt to be succinct rather than verbose, given the time we have lost and the need to make progress on the Bill. In general terms, we think that introducing further requirements for SDSs would limit their effectiveness and operability, as well as the purpose and effect that the clause seeks to achieve.

Amendment 29, moved by the hon. Member for Taunton and Wellington, would make specific provision for strategic planning authorities to have regard to the provision for new social rented homes. The Government are clearly committed to delivering more social housing, and I hope the Committee recognises the steps that we have taken over the past 10 months, including an £800 million in-year funding top-up to the 2021 to 2026 affordable homes programme; £2 billion of bridging support—I think the hon. Gentleman made a mistake in referring to it as £2 million—that will bring forward up to 18,000 new social homes; and in the multi-year spending review, the Government will set out the full details of a new grant funding programme to succeed the 2021 to 2026 affordable homes programme. In that, we are looking to prioritise the delivery of social rented homes, which is a Government priority.

Proposed new section 12D(5)(b) of the Planning and Compulsory Purchase Act 2004 makes provision for a spatial development strategy to specify or describe an amount or distribution of affordable housing, or any other kind of housing that the strategic planning authority considers to be of strategic importance to the strategy area. SDSs can therefore already play an important role in the delivery of social and affordable housing, if the strategic authority in question considers it necessary. Amendment 29 is therefore not necessary, and I request that the hon. Member withdraws it.

The shadow Minister tempted me into a much wider debate on the Government’s revised standard method for assessing housing need, which was introduced in the updated NPPF late last year. I will not go into too much detail, but the point of difference is that, under the previous Government, a 35% urban uplift was applied to the most populous local planning authority within the country’s 20 largest cities and urban centres. We have removed that urban uplift.

--- Later in debate ---

[Gideon Amos]

The hon. Member for Basingstoke invited me to go down memory lane to what was happening in 2009, 2010 and so on. I am happy to do so. The Liberal Democrats went into coalition at that point. They were 9% of the Members of Parliament, but prevented a great deal of the worst excesses of the Conservative Government over that time, and continue to stand by that achievement. In fact, there was a 25% increase in affordable housing starts based on £15 billion of additional funding on affordable social housing under the coalition. In contrast, in 2009, a Labour Chancellor proposed cuts in the pre-Budget papers that he called “deeper and tougher” than anything Margaret Thatcher did in the 1980s, and began a £22 billion cut in capital expenditure, which was greater than the—

[Luke Murphy]

Will the hon. Member give way?

[Gideon Amos]

I will not give way. I need to get back to the present day, if the hon. Gentleman will forgive me. It is important to dwell not on the proposed cuts of £22 billion to capital expenditure from 2009-10 onwards that the outgoing Labour Government were proposing, but on the reality of the situation that faces people who need social homes today. That is what amendment 29 is all about.

The hon. Member for Basingstoke suggested that the amount required per social home is £183,000. Figures from the Centre for Economics and Business Research suggest that that is actually £131,000 a home. I do not doubt his sincerity in looking at the costs of each social home, but those are our figures. Against that, our proposed investment of £6 billion would be on top of the existing affordable homes programme of £2.3 billion.

In passing, as I pointed out in my opening remarks, we recognise and respect the £2 billion investment that the Government have put into the affordable housing programme for up to 18,000 affordable homes. It is worthwhile. Our amendment simply asks the Government to go further and faster. Our commitment of £6 billion per year in our suggested budget—funded by the taxation proposals we set out there—added to the £2.3 billion of the existing affordable homes programme, would be sufficient to get us to a delivery level of 150,000 social homes per year in the course of a Parliament, according to figures from the Centre for Economics and Business Research.

Our proposals are therefore founded on some consideration of the financial costs involved and of the priority that the Government need to give to the delivery of social homes. I reiterate simply that, as my hon. Friend the Member for Didcot and Wantage pointed out, relying on the private sector to provide low-cost social housing or even to bring down the price of housing has not worked to date and is extremely unlikely, to say the least, to happen in future.