Housing and Planning Bill (Sixteenth sitting)

Richard Bacon Excerpts

Thursday 10th December 2015 Public Bill Committees

[Mr Thomas]

I say gently to the hon. Gentleman that I have not made up the Home Builders Federation’s concerns. The quotes that I have just given are real. There is a real problem preventing many small and medium-sized house builders from accessing finance. I suggest to him that more needs to be done and the new clause is a way of doing that.

Finally, there is one other option available if a guarantor bank or a help-to-build scheme were not acceptable. Government and Opposition Members will be familiar with the regional growth fund. A series of community development finance institutions occasionally work with construction firms but have difficulty in building their capital base. Regional growth fund moneys might be better used in increasing their ability to lend money to small businesses in their communities. In the context of the new clause, some of that financing could be directed at helping small and medium-sized house builders.

[Mr Richard Bacon (South Norfolk) (Con)]

Will the hon. Gentleman give way?

[Mr Thomas]

How could I not give way to the hon. Gentleman?

[Mr Bacon]

I am delighted that the hon. Gentleman is prepared to give way. I am worried for the hon. Member for Greenwich and Woolwich, who looks very hungry, but the hon. Member for Harrow West is so interesting that we have to keep going. He will be interested to know that the Minister for Housing and Planning, the leader of South Norfolk Council and I were at a self-build summit yesterday at which we heard financiers from Lloyds bank and Nationwide Building Society talking about such issues. It is really not about legislation. The hon. Gentleman needs to know that it is about de-risking. Does he not understand that, were we to have large projects with local development orders, as has been done by Cherwell District Council with the largest self-build project in the country, for example, that automatically de-risks things and makes automatically coming forward much more attractive to lenders?

[The Chair]

Order. You must be brief.