Provisional Local Government Finance Settlement

Peter Lamb Excerpts

Wednesday 18th December 2024 Commons Chamber

[Peter Lamb (Crawley) (Lab)]

I commend the Minister for his work in bringing forward the settlement to secure a fair deal for the sector, but, as many hon. Members have alluded to, the elephant in the room is temporary housing. That is in large part due to decisions taken by the last Conservative Government to freeze the housing benefit subsidy at 2011 levels and cap the local housing allowance at a far lower level than local housing tends to cost, with the end result being that local government is subsidising central Government’s welfare bill to an astounding extent, with two thirds of the council tax in my local area going towards paying that bill. As an advocate for the sector, will the Minister meet with counterparts in the relevant Departments to try to lift that cap, so that people are housed at a rate that is cheaper both financially and socially?

[Jim McMahon]

We come back again to the broken housing market. The need to build 1.5 million new homes is there, but—let us be clear—they have to be the right homes in the right places for the need in the local area. That means not only more social homes but council provision. We continue to see a cycle—we have all seen today’s inflation figures, which are driven by private rent—in which the taxpayer pays more and more for accommodation that is often substandard and does not even meet the decent homes standard, with no benefit to the taxpayer. We have got to rebuild council housing and social housing and make it fit for purpose and affordable.