One Public Estate Programme

Rachael Maskell Excerpts

Tuesday 14th May 2019 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I thank my hon. Friend the Member for Warwick and Leamington (Matt Western) for opening the debate in the way that he did, looking at not only his local perspective, but the national perspective of One Public Estate. It is always a pleasure to follow my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard). I concur with him about the opportunities the regions provide in departmental change and bringing those vital jobs into the region. I look at York and its connectivity: with the upgrade of the east coast main line, it will be just over an hour and a half out of London—and what a fantastic place to live, rather than in the heart of this city, in order to facilitate many of those vital public functions.

Today, I want to reflect on some of the disposals of public land that we have seen in York and highlight a particular problem, which I trust the Minister will look at. First, to give a tour d’horizon on what has been happening, we have seen the disposal of many public land opportunities in York, and, unfortunately, it being placed in the wrong hands as a result of that. For example, Strensall barracks and Imphal barracks have been earmarked for closure under the better defence estate strategy, by 2024 and 2031 respectively, but the Government need to remind themselves that the Army has resided in York for over 1,000 years and that those sites provide vital jobs not only for the armed forces, but for civilians—the people of our city. Over 600 civilian jobs will be lost as a result of those closures. Just up the road, RAF Linton-on-Ouse is also earmarked for closure.

Such land is then put into the local plan, but it will not come forward within the time framework. Therefore, there is real concern about how this is being used to lever in the local plan, as opposed to looking at the real challenges of the local housing environment in particular. The council has earmarked most of this land for housing, but not the vital social housing that my hon. Friend the Member for Warwick and Leamington mentioned and that we desperately need in York, which has had one of the lowest levels of social housing build in the country. Instead, the land is being earmarked for the developers, who clearly just want to make a profit and to take advantage of those opportunities.

In addition, we have seen the closure of the post office in our city, which again is a detrimental step, and I do not believe that that is going too well for the Post Office, as we forewarned. The York Central site is the biggest development site across the whole of Europe. It is a brownfield site that has lain dormant for 30 years. We are eager to see it developed, but, regrettably, the council handed over power and control to Network Rail, which clearly is disposing of as much land as possible. We just need to remind ourselves of the sell-off recently, which was identified as a financial loss by the Public Accounts Committee. Over 2,100 luxury flats are being proposed for the site, but that is not what our city needs, because the housing crisis in York is around family housing and social housing, which are hardly getting a look in at the site.

I ask the Minister to look at this issue—I will be meeting with his colleague to discuss it—because the site’s economic opportunity is being lost, sixfold or sevenfold. In York, we have a low-wage and quite insecure economy, so to throw away that opportunity in the heart of our city, right next to the railway station, is a serious detriment. Therefore, we have asked for the decision to be called in and are waiting for a response from the Department. Clearly, we want to see the maximum economic opportunity being brought to our city, as well as housing need being addressed. On the transportation front, too, using current data in the analysis would have helped to show how we need to change what has been proposed.

I want to focus on Bootham Park Hospital in York, which opened in 1777 and closed in 2015—the doors were shut only three days after the inspection. That caused much harm in our city. It was a mental health hospital, but I concur that the site itself may not be suitable for modern-day provision of mental health services. However, I would like the Minister to respond on what happened to that site.

The local authority was working with the local trust, the clinical commissioning group, the sustainability and transformation partnership and other public services, which came on board to formulate what opportunity that site could provide for our city. Analysis was undertaken, particularly looking at the opportunity around healthcare, but also wider services. For instance, the police and crime commissioner identified that this would be an ideal location to place a women’s unit in our city.

I have to say that the progress of One Public Estate in realising the site’s potential was slow, but the local authority was even slower in identifying, with NHS Property Services, that it wanted to utilise the site for the benefit of the city centre. Much of the site cannot be developed, because under its trust status it has to remain as parkland, but land at the back of the site can be developed. Needless to say, the beautiful building is listed, but in need of much repair.

The site for the clinical commissioning group costs £100,000 a year just to maintain and keep open. Those charges are to the detriment of the strapped-for-cash clinical commissioning group, which is one of the worst-funded in the country, so it is eager to move the process forward. However, the NHS Property Services timescales for the disposal of the site did not meet the One Public Estate process, so my plea to the Minister is to ensure that there is synergy in the timescales that are being executed in how sites are developed and the opportunity that realises for the city.

From my meetings with the former Health Minister, the right hon. Member for North East Cambridgeshire (Stephen Barclay), it seems that NHS Property Services determined that it wanted to dispose of that site at the earliest opportunity. However, it would not wait for One Public Estate’s fully worked-up proposals. Therefore, it disposed of the site to a private developer, which is going to build—guess what?—more luxury apartments in the heart of our city. The developer is also looking to build a hotel and high-value older people’s accommodation, as opposed to addressing urgent need.

The site is uniquely placed next to our acute hospital, which is on a cramped campus without room for expansion. The hospital is bursting at the seams and has been challenged by winter crises. The only opportunity for that hospital to expand is the Bootham Park Hospital site. Indeed, it had ambitions to do so to provide better access to the site and to provide other vital services, such as physiotherapy. Furthermore, it proposed to extend hospital parking facilities and other services on to the site.

Vitally, the site was an opportunity to provide housing for key workers, which has been identified as a real need. We have more than 500 vacancies for NHS staff in the city, and that crisis is worsening. York’s expensive property prices are one reason for that, so the opportunity to provide key worker housing on a site in close proximity to the acute hospital was necessary, but the loss of another opportunity means that the acute hospital’s agency bill will be higher. As my hon. Friend the Member for Warwick and Leamington said, the financing with respect to the disposal of such sites does not come back to the city; it goes to Departments, so there is no benefit to York. We will not see that money again, even though we have a real crisis around health services.

I have looked at the evidence base behind the One Public Estate bid. The York Teaching Hospital, the Humber, Coast and Vale sustainability and transformation partnership, Vale of York CCG, York Medical Group and the city council were looking at the opportunity to utilise the site for public benefit, but that has been denied and overridden, and it has been sold to a private developer. That will certainly not enhance our city, because it will put more stresses on the public services in our city, not reduce them.

The opportunity that has been passed up was for the development of 147 homes, which York needed; 52 key worker houses; a physio suite, which I mentioned; medical training; a research centre; a 70-bed care home; 60 assisted living and supported living apartments; a children’s nursery, which our hospital does not have and which would have been vital; public parking for use at the acute hospital; and a new public park for York in the heart of our city, where there is one of the highest levels of premature mortality in the city and where people should have the opportunity of some open green space.

Going back 100 years in York’s history to the time of Joseph Rowntree and others, there was real recognition of how to build a humane city and move it forward, but those opportunities are being passed up due to the greed of private developers that want to maximise their profits and cram the most expensive properties into the heart of the city. As I have explained, the people of York do not have the resources to purchase those properties, so they are being pushed further and further away from the city. Therefore, the social engineering that is taking place is to the detriment of local people across the city.

The city is becoming hollowed out, as private apartments are being built. Some people perhaps depend on utilising our public services at weekends, but we cannot afford the people to work in those public services. Therefore, the whole city is being put out of kilter and skewed with respect to needs. With the connectivity that I mentioned, it is clear that people now see York as being in the commuting zone of London and cities across the country, which puts more stress on our city.

My request to the Minister is that he look at the situation with regard to Bootham Park Hospital, where one Department is not talking to another and the local need is not being addressed. A massive public consultation exercise is happening about the Bootham Park Hospital site and on the York Central site, although we have not got to that point in the process with Imphal barracks. The Government say that they respond to and recognise the value of the voice of the community, so why is that voice being completely ignored through the disposal of such sites? I believe it needs to come forward.

In York, we have launched a “Public Land for Public Good” campaign. We need to ensure that there is a public good test in all planning decisions, so there is an enhancement of the way that land, which we know is incredibly precious, is utilised, as opposed to giving profit to developers. Frankly, the people of our city are angry about that, because they are losing out on the opportunity for vital jobs and services, and even a home. I ask the Minister to respond to those points, and I trust that he will take them back to his Department and that we will see real change.

--- Later in debate ---

[Kevin Foster]

I thank the hon. Gentleman for his constructive and instructive intervention. Because we have an integrated care organisation in Torbay, one of the advantages is that there is no difference between the local authority’s budget and the NHS budget for social care, but I agree that there is a need to look at how we can bring partners together. A particular issue is where there are not just NHS and local authority services but GPs who are independent businesses—the great compromise from 1948—who then have to decide whether to move their service, potentially from a building of which they have the freehold and in which they feel very confident. Even if the GPs accept that the building is not the place in which to be delivering the best examples of 21st-century medicine—for example, if it is a converted house that does not have a lift to the first floor, restricting the ability of an increasingly elderly population to access all the services provided—it is about the certainty that can be provided when they take the leap and come into a building of which they are a tenant or a leaseholder, rather than a freeholder.

Again, it is about being clear about the partnership approach and ensuring that the building is not seen as belonging to the council, in Torbay’s case, or to the NHS, in Plymouth’s, but is seen as one that all partners have a shared interest in, with the main goal being a better service for the public and for those who access the services, and providing a sustainable future.

The hon. Member for Warwick and Leamington mentioned that One Public Estate has invested £665,000 to support the Connecting Warwickshire Partnership in his area to deliver five projects across health, regeneration and housing agendas: the co-location of services in Warwick town centre, the regeneration of Nuneaton town centre, a review of service provision from the site of the George Eliot Hospital, the transformation of Rugby town centre, and the development of a strategic housing pipeline to deliver affordable homes in north Warwickshire, utilising offsite modular construction. The Connecting Warwickshire Partnership expects the five projects to generate £35 million of capital receipts, cut running costs by £2 million, release land for about 1,000 homes and create 500 jobs.

Another example is in Brent, where One Public Estate is bringing together Brent Council, London North West University Healthcare NHS Trust, the University of Westminster and social housing provider Network Homes to redevelop the Northwick Park area, creating jobs and delivering affordable homes, including, crucially, given the comments made about key workers in this debate, for NHS staff. One Public Estate revived an earlier proposal to develop the hospital site in isolation, and provided support and challenge that could result in 1,600 homes, which is about double the number planned by the partners operating alone.

The hon. Member for Warwick and Leamington touched on the project in Rutland, where One Public Estate has awarded £175,000 and facilitated a memorandum of understanding between the Ministry of Defence and Rutland County Council to develop 300 hectares of surplus land at St George’s barracks into a new garden village, including delivering up to 3,000 homes by 2032. It is right that we work in partnership with the local council.

Perhaps where I differ from the hon. Gentleman is that although I support the move to remove some of the caps—over the past few years we have started to see a slow revival in the building of council homes, compared with the period between 1997 and 2010—I do not necessarily think that it is for the Government to dictate that that construction should be the sort of mass-build estates we saw in the past. That is a choice for local councils, but certainly from my own experience in local government it is better when we have mixed communities rather than going back to the days when we built an estate on the edge of town as our pure provision of social housing.

[Rachael Maskell]

Is not the problem that local authorities may have their plans—it is absolutely right that they lead—but there is a collision course with the national determination of Departments? That is the piece that needs to be fixed.

[Kevin Foster]

My response to the hon. Lady’s point is that I am certainly happy to look at the instance in her constituency of what I think was described as NHS Property Services operating to one timetable and One Public Estate operating to another. As I say though, One Public Estate is about co-operation rather than necessarily about the Government looking to direct that a council must be part of it, as we touched on with the Warwick District Council project—that is not part of One Public Estate. Speaking as someone who believes quite a lot in local government, I would be loth for this to go down the path of direction from the centre.

[Rachael Maskell]

The other determinant, of course, is finances. Although Government Departments are trying to reap as much resource from the land as they possibly can, and that is why it is being handed over to developers, local authorities are really cash-strapped in how they can develop that land. Will the Minister also look at that collision course, when he goes back to the Department?

[Kevin Foster]

We have given a range of flexibility to local authorities to look at how they can develop, but ultimately they can act as a bank. My own local council is helping to bring forward a significant development, admittedly on private land but with clear guarantees and protections around the taxpayer interest in lending the money and actually making a profit. There are opportunities for local authorities to take forward developments; it is for each of them in each instance to decide whether they wish to use those opportunities. Regarding the idea that the programme is motivated purely by the need to make savings, I touch first on the fact that a plan was being formulated under the last Labour Government to make significant cuts to local government funding post-2010 and, secondly, on how the programme is helping to bolster local government finances by delivering the ability to work together with a view to saving money. Therefore, I do not necessarily recognise that the two are in conflict; in fact, the picture is quite the opposite.

[Rachael Maskell]

Will the Minister give way?

[Kevin Foster]

I have given way twice to the hon. Lady, so I will do so again very briefly, but I will make this the last time.

[Rachael Maskell]

The point I was making is that Government Departments are taking that resource into their national funds—into their own budgets—as opposed to delivering benefit to local communities. There are, therefore, different interests at play when it comes to the resourcing of developments.

[Kevin Foster]

The Government are spending significant amounts via, for example, the housing infrastructure fund, to which eligible sites can bid, and the land release fund. I have touched on how the latter is releasing local authority land where authorities do not have the potential resource, or where it would be uneconomical for them to develop it on their own. In the Paignton example, the fund is paying to put a sewer into a site that would have been too expensive to bring forward, or where social housing would have been taken out to fund the infrastructure.

The idea that money disappears off into a central hole is not accurate, but we hope that One Public Estate encourages the parties to work together for the wider financial benefit of the public sector. In many instances, that will mean delivering a co-operative plan in the long-term interest of the Government Department concerned. Again, I or the Minister with responsibility for implementation, my hon. Friend the Member for Hertsmere, will happily meet to discuss the target timeline of NHS Property Services versus the timeline of the One Public Estate bid, and see whether we can make some progress on that issue in future developments.

The programme’s original aim was to deliver 45 co-locations for the NHS, the police and the fire service by 2020. Today, the Government estate strategy hopes to quadruple that goal, setting bold new ambitions to facilitate 200 co-locations by 2020 and 250 by 2022. We can therefore see that One Public Estate is already delivering. Partnerships with projects under way expect to generate £615 million in capital receipts and £158 million in running cost savings, create 44,000 jobs, and release land for 25,000 homes by 2020. That is a tremendous amount of success in a relatively short time. In February, my colleague the Minister with responsibility for implementation announced the outcome of the programme’s seventh application round, a total of £15 million in funding. That is expected to support a further 10,000 new homes and 14,000 jobs over the next five years.

Since it began in 2013, One Public Estate has awarded £60 million to support projects and partnerships. The programme does not fully fund schemes; however, it facilitates laying the groundwork for future projects through feasibility studies, options appraisals and master planning. It can also help projects deliver at a faster pace by funding dedicated programme management. At the same time, and as we have touched on, we recognise our investment can bring about significant savings for some authorities, so we have introduced an element of repayable grants. In phase 7, which was the most recent, about £3.5 million of the £15 million funding available was awarded as repayable grants. Those will be repaid within a three-year period and, crucially, reinvested to enhance the future impact of the One Public Estate programme.

I again commend the hon. Member for Warwick and Leamington on having secured a debate on the One Public Estate programme. As we have discussed, that programme has developed rapidly and is already having a significant impact on collaboration across the public sector. I particularly thank the Local Government Association for their excellent partnership with my Department in leading the programme, and pay tribute to the 95% of local authorities and many other partners that have chosen to take part in the programme. I am sure that Members will join me in wishing the partnerships well as they collaborate to deliver new homes, jobs, and improvements to public services in communities.

For many of us, the greatest reward in many communities will be seeing people achieve the desire that the Government regard as a key ambition for so many: owning their own home—having a place that they call home and that is theirs for as long as they wish it to be. That will remain a firm aspiration of this Government. Of course, we will support the development of social housing and deliver as much as we can, but none of us should ignore the fact that many people still hold the core aspiration of owning their own home. Too many people feel that aspiration slipping away from them, and we want to see it brought back to them, so they can enjoy it in the same way as their parents did.