Oral Answers to Questions

Peter Luff Excerpts

Monday 4th February 2013 Commons Chamber

[Mr Pickles]

I am delighted to confirm to the hon. Gentleman that the reduction in spending power is not 1.7% but 1.3%. That represents good news. Figures tend to move about—[Laughter.] That is why we have a provisional settlement. I do not know why Opposition Members are laughing; I respectfully remind them that in several settlements things changed dramatically and that one year Labour was forced to go out to consultation again.

[Peter Luff (Mid Worcestershire) (Con)]

Does my right hon. Friend realise that the £1.3 million new homes bonus paid to Worcestershire is being funded by a £3.5 million reduction in its baseline funding and that Wychavon district council’s new homes bonus of £1.2 million over the past three years has been matched by a £2.2 million reduction in its baseline funding? Does he understand the inexorable logic of the position that including the new homes bonus in spending power perverts the purpose of the new homes bonus, which is to incentivise communities to accept new development?

[Mr Pickles]

My hon. Friend must accept that we took more into consideration than the grant going in and that we have moved on to spending power, which is what the Local Government Association and the Labour Opposition wanted to see. The local government spend is £114 billion. That is twice the size of the defence budget and more than we spend on the national health service. Even his own authority must play a part in reducing public spending to deal with the deficit we were left by the Opposition. The new homes bonus gives the authority an opportunity to make money.

--- Later in debate ---

[Mr Foster]

The Government have already put in place a number of measures to help people such as those the right hon. Gentleman describes. HomeSwap Direct is now available, and there is additional funding in local authority budgets to assist those who wish to move into the privately rented sector, with still more money for areas where rents are increasing.

[Peter Luff (Mid Worcestershire) (Con)]

Will the Minister explain to me and the communities of south Worcestershire why the Planning Inspectorate measures the existence of a five-year supply of land for housing not on the basis of planning permissions granted, but on completions achieved?

[Nick Boles]

Planning permissions that have been granted and are still viable will count towards any local authority’s five-year housing supply. They are withdrawn only in exceptional circumstances when it is clear that they can never be fulfilled.