Oral Answers to Questions

Mark Prisk Excerpts

Monday 4th February 2013 Commons Chamber

[Mel Stride (Central Devon) (Con)]

3. What steps he is taking to help small shops with business rates.

[The Minister for Housing (Mr Mark Prisk)]

The Government have taken significant steps to help small retailers, including doubling the level of small business rates relief for a further year until March 2014. This will benefit 500,000 small and medium-sized businesses.

[Peter Aldous]

I am grateful for that answer. Business rates for shops are a particular concern for small shops in my constituency. Has my hon. Friend’s Department carried out any analysis to ascertain how many local authorities are using the powers provided in the Localism Act 2011 to give discretionary rate relief to small businesses? If not, what can be done to encourage them to use them more extensively?

[Mr Prisk]

We are collecting that information right now, and we will present it to the House shortly. What I can say is that we have given new powers to councils to be able to provide further business rate discounts, and also the flexibility to be able to use them when and where they think is best. I would strongly encourage councils, whether they be in my hon. Friend’s constituency or elsewhere, to use those powers so they can better help their high streets.

[Mel Stride]

Small shops in Crediton, an important market town in my constituency, suffered greatly under the last Government’s planning guidelines, which pushed up car parking charges in the centre of town and pushed away trade. Will my hon. Friend outline the steps that the Government are taking to ensure that, under our planning guidelines, car parking charges will be pushed downwards, not up?

[Mr Prisk]

We have scrapped Labour’s red tape so that councils can be far more flexible about the way in which car parking charges and associated rules work. That will enable more people to be attracted into excellent towns such as Crediton in my hon. Friend’s constituency. Again, I urge councils to be more innovative in how they manage to make their charges for parking. I have seen a number of instances where simple changes can make a real difference to our local high streets.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Liz Peace, chief executive of the British Property Federation, said:

“The decision by Government to delay revaluation until 2017 is a real shot in the foot for the retail industry”.

Does the Minister agree?

[Mr Prisk]

No, I do not agree. As I have said to the British Property Federation on several occasions, we looked very carefully at the valuation office evidence that was presented to us. What it showed was that for every three businesses that might gain, eight could lose—including, potentially, a loss of £100 million to retailing in London. That is why we have taken what I think is the correct decision to defer that revaluation until 2017.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

Undoubtedly, business rates can be a burden on many small shops, but has the Minister had any discussion with his colleagues in the Department for Work and Pensions because, as a result of the freezing of the benefits uprating at 1%, £6 billion will be taken out of local economies the length and breadth of this country? That will hit small shops hardest, will it not?

[Mr Prisk]

Disposable income is very important—the hon. Gentleman is right—which is why I am proud that our Government are unlike the Labour party, which doubled council tax bills during its term in office. That hits the disposable pound, and it is a shame that the Labour party did not understand that while in government.

[Sarah Champion (Rotherham) (Lab)]

4. What assessment he has made of the effect of spending reductions in each fire and rescue service area.

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[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

14. What steps he is taking to increase the number of housing starts; and if he will make a statement.

[The Minister for Housing (Mr Mark Prisk)]

Over the past 15 years or more, this country has been building half the number of homes that we need. This Government are determined to reverse that trend, by reforming the planning system, expanding the private rented sector and by building 170,000 more affordable homes.

[Simon Danczuk]

There are thousands on the housing waiting list in Rochdale, and homelessness is rising. Like Rochdale residents, does the Minister not regret his Government’s decision to cut the affordable housing budget by 60%?

[Mr Prisk]

In fact, the £19.5 million is an important investment, not least to try to reverse the fall in social housing under the previous Government of some 421,000 homes. We want to build those 170,000 homes, but there is a long way to go before we can clear up the mess that we have inherited.

[Mr Raynsford]

May I draw attention to my interests as declared in the register?

Over the past few weeks, the Minister has answered some very interesting questions, and has provided data about the new homes bonus. He will have looked at the figures as closely as I have, and will therefore know that it is not only very expensive but a complete failure. Does he accept that the 17 local authorities that are receiving the largest amount of new homes bonus are granting substantially fewer planning permissions than they were—37% below the levels of 2005-06, and 6% below the abysmal levels of last year?

[Mr Prisk]

Some of the questions were from the right hon. Gentleman, though whether they were interesting or not is another matter. I would say to him, if I may, that he needs to understand that the principle of the new homes bonus is very simple: “The more you build, the more you get.” That is why we see that Manchester, Sheffield and Bradford have shown the way. They are willing to do that, which is why we recognise that there will be at least 400,000 additional homes as a direct result of the bonus.

[Mark Pawsey (Rugby) (Con)]

Does the Minister agree that more authorities should take the approach of authorities such as Rugby borough council, which has allocated land in its local plan, with two sites coming forward, to enable the development of 7,500 new homes?

[Mr Prisk]

I very much welcome that. It is important that some authorities are being proactive in the way in which they handle their planning system and engage with the new homes bonus. We have a shared ambition to overturn something that has happened for the past 15 or 20 years. I wish sometimes that Labour would be a little more positive about it.

[Sir Bob Russell (Colchester) (LD)]

In the context of housing starts, does the Minister agree that planners and developers of grotesque schemes such as the proposed 1,600-homes estate in my constituency to be accessed by a 1 mile cul-de-sac should be forced to live there for a minimum of five years as a condition of any planning consent?

[Mr Prisk]

The safest answer for me to give is that that is a novel idea. I will reflect on it in due course.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The Secretary of State told the BBC that on house building “signs are encouraging,” boasting of building 132,000 homes. “Encouraging”? Far from encouraging, housing completions have fallen in both financial years since Labour left office, and housing starts have fallen to 98,000. Does the Housing Minister recognise those figures? He should, because they come from his own Department. Will he take this opportunity of correcting the misleading impression given by the Secretary of State? Does he accept that no amount of massaging statistics can conceal the fact that this is a Government who are presiding over the biggest housing crisis in a generation?

[Mr Prisk]

Gosh! What a lot of rhetoric, but not a lot of facts. The reality is that the net addition to the housing stock is up 11% on the last four figures that we have, at 135,000. That is the highest level in four years. Is there more to do? Absolutely. Do we want to make sure that we reverse the trend on affordable homes? Yes, but carping from the Opposition Benches will not help that process or the people whom the Opposition claim to represent.

[David T. C. Davies (Monmouth) (Con)]

13. What steps he is taking to promote the right to buy.

[The Minister for Housing (Mr Mark Prisk)]

Last year we reformed the right to buy both to increase the discounts for tenants and to ensure that the receipts from sales are recycled into building more affordable homes. We are now actively informing and helping thousands of tenants to turn their ambition into reality.

[David T. C. Davies]

I commend the Minister on the work that he is doing. Will he explain these benefits to his colleagues in the Welsh Assembly, who seem wedded to some sort of out-dated socialist-collectivist dogma which is denying the people of Wales the right to buy homes, which they could enjoy in England?

[Mr Prisk]

Unlike the Opposition, we believe that credit-worthy council tenants should be able to buy their home. That is why this spring in England we will have directly contacted 95% of the eligible families. These people have rights. We will make sure that they can put them into practice.

[Graham Jones (Hyndburn) (Lab)]

I notice in the Minister’s answer the absence of like-for-like, one-for-one replacements. Can he clarify that and give the House information—or put it in the Library—about the number of right-to-buy properties that have been sold and the number that have been built as replacement units?

[Mr Prisk]

I am happy to clarify the situation. In the last six months for which we have records, £86 million has been recycled from those sales back into affordable homes. I should have thought the hon. Gentleman would welcome that fact.

[Mike Freer (Finchley and Golders Green) (Con)]

17. What steps he is taking to support local authorities in helping troubled families.

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[Chris White (Warwick and Leamington) (Con)]

T2. Last week Warwickshire county council unveiled Operation Footfall, an initiative that will give local business groups the opportunity to bid for up to £30,000 to develop ideas to encourage people to shop in our town centres. Will the Minister join me in congratulating the county council, and will he detail what support the Government are giving to improve our town centres?

[The Minister for Housing (Mr Mark Prisk)]

I am very happy to join my hon. Friend in congratulating Warwickshire county council in that context. We have a settled programme looking at making sure that we strengthen the way in which the planning system works and ensuring that the business rates are reduced for the smallest of firms. However, I think that the key issue, rather than the individual programmes, is the question of how we ensure that high streets today adapt to the new world of online shopping. Consumer habits have changed. We are standing ready to work with our high streets to make sure that they can adapt in that new environment.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T4. On Saturday, I met the Newcastle youth council to discuss its report, which I shall pass to the Secretary of State, on the impacts of his £100 million of cuts to the council budget. Its members explained that many children cannot understand the magnitude of the cuts and have offered to give up sweets or donate their pocket money to save local libraries, swimming pools and youth services. Does the Secretary of State understand the magnitude of his cuts and their impact on young people in Newcastle? If so, what is he going to do about it?

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[Kelvin Hopkins (Luton North) (Lab)]

T5. Some 8,000 families are on Luton borough council’s housing waiting and transfer lists, yet the Conservatives’ policies will force thousands of low-income Londoners to seek homes elsewhere, with Luton a primary target. Does the Minister accept that the Government’s policy is not only unjust, but a recipe for social chaos?

[Mr Prisk]

I do not accept that. We have made it clear to councils that out-of-borough changes are not desirable. It is not right, as happened in the ’70s, for large groups of people to be dumped a long way from their homes. That is why we changed the law last year so that councils have to take into account the suitability for each individual. Dumping is something that we will challenge. The law is clear and the hon. Gentleman has my support on the matter.

[Lorely Burt (Solihull) (LD)]

T6. Given that the number of empty homes fell by more than 21,000 in 2011, which is the biggest drop since 2004, does my right hon. Friend agree that local solutions, supported by central Government, provide the best means of tackling the long-standing problem of empty homes?

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[Diana Johnson (Kingston upon Hull North) (Lab)]

Last year, the then Housing Minister proposed outlawing council tenants from sub-letting, with up to two years in prison or a £50,000 fine. Now the Government are advising people to sub-let to cover the bedroom tax. Do the Government actually know what they are doing?

[Mr Prisk]

I am sorry that the Labour party does not understand this issue. As the Under-Secretary of State, my right hon. Friend the Member for Bath (Mr Foster), rightly pointed out, a substantial number of households have two or more spare bedrooms. Is it right that the 250,000 people who are living in overcrowded accommodation should simply allow that to persist? Why did the Labour party not do anything about that in 13 years? That was an abject failure on its part.

[Charlotte Leslie (Bristol North West) (Con)]

There is concern that the local government finance settlement penalises councils such as Bristol by using old data for the allocation of local authorities into damping bands. Will the Minister meet me to discuss that further?