General Matters

Richard Graham Excerpts

Tuesday 18th September 2012 Commons Chamber

[Richard Graham (Gloucester) (Con)]

I am grateful for the opportunity to speak in this pre-recess debate on an issue close to both your heart, Mr Deputy Speaker, and that of the Deputy Leader of the House: the role of councils and social housing managers in the regeneration of our cities. By way of background, the housing estate owned by the city council in my constituency is managed by Gloucester City Homes, an arm’s length management organisation. GCH has already played an important part in regeneration through its successful management of the council estate. Its record of improvements has led to a remarkable series of stars and awards, and I know the high levels of trust and confidence that tenants now have in GCH and the difference its proactive approach is making to thousands of lives.

But for me and for my constituents, there is more to be done, not least because, like many cities, we have a significant council house waiting list of some 5,000 people and a need for more social housing. I would love to see Gloucester City Homes replace outdated blocks of flats in parts of the city, especially in Matson and Podsmead wards, with new homes and more attractive landscaping that would be in keeping with, for example, the wonderful setting of Matson on the slopes of Robinswood hill. That would require significant capital investment, which would, because ALMOs are owned by councils, contribute to the Government’s public sector borrowing requirement, add to the vast mountains of debt built up under the previous Government’s less than eagle eyes and, therefore, not be helpful to the health of our public finances.

Gloucester’s challenge, therefore, was to come up with an imaginative proposal so that GCH could use its balance sheet and predictable earning stream for a capital investment programme to regenerate our social housing. GCH and the city council made a detailed proposal to the Department for Communities and Local Government last autumn, with new community council—CoCo—ownership, where the council would own only a third of the equity of the company and the remainder would be outside state ownership. I understand that the Government have both principle, meaning responsibility for any residual liabilities in a worse-case scenario, and practicality, meaning debt write-offs, to consider. None the less, I also understand that the previous Housing Minister, who was sympathetic to the cause, had to face cross-Department interests, particularly from the Treasury, which complicated decision making.

Now, almost one year on and at a time when all Government Members are keen to see faster progress on housing and infrastructure development, I urge DCLG and the Treasury to help find a way forward for Gloucester City Homes to contribute to the Government’s national, and our own local, ambitions for regeneration, construction and growth.

I received a welcome letter this week from the new Minister for Housing, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), saying that DCLG officials will meet Gloucester City Homes in Gloucester shortly. I would be delighted if, before the first anniversary of our proposals, national and local government and the ALMO agreed on a brief process that would enable action as soon as possible. If we can get on and lead by example in Gloucester, where the CoCo model has such wide support, the new Minister may also be able to unlock further opportunities across the land and stimulate new social housing that will make a difference to people’s lives. As Winston Churchill once noted:

“We shape our buildings and afterwards our buildings shape us.”—[Official Report, 28 October 1943; Vol. 393, c. 403.]

I hope that the Deputy Leader of the House will relay my encouragement to the Ministers and officials concerned.