It is certainly in a better position to do so than the devisers of regional spatial strategies; I think that we can agree on that. We need to increase supply.
My hon. Friend has brought me neatly on to the abolition of regional spatial strategies, a phrase that has to be said carefully and articulated clearly. Regional spatial strategies have gone. The Secretary of State has written to planning authorities telling them that it is now a material consideration for them to take account of his letter saying that regional spatial strategies are to be disposed of. The legal decision must await legislation, but clearly we are there already. It is not just a question of telling local authorities, “You’re on your own”; there will be clear incentives for local authorities that permit the development of housing, and a reward system that will give them the opportunity to develop infrastructure and services to match the investment that they are allowing.
My hon. Friend had plenty to say about second home ownership. I have had the privilege of listening to him speak on the subject in debates for a number of years. He asked for some specific things. I cannot deal with capital gains tax—that is definitely well above my pay grade—but he also asked whether we could use the planning use class of second homes. The Government do not believe that there is a way forward on that. I would be interested—I do not suppose that I have the choice—to receive further representations from him and from others who think differently, but there are serious difficulties over how that can be done, not least because, for the first time, we are bringing the ownership of an asset into consideration of whether it was a material planning use or not. [Interruption.] I can see that my hon. Friend wants to engage in debate, and I look forward to doing so over the coming months.
My hon. Friend will have received a parliamentary response from the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), probably this afternoon, to say that we have no immediate plans to change the discount on council tax for second homes. However, my hon. Friend the Member for St Ives has raised some interesting issues, and some of us have great sympathy with them.
My hon. Friend asked about rural exception sites, and there seems to be a bit of a flurry: perhaps PPS3 and rural exception sites might, in some mysterious way, be at risk. I want to assure him that there is nothing in the coalition agreement or in the Conservative Green Paper on open source planning—I did not think that I would be likely to be standing at the Dispatch Box defending it—that would to change rural exception sites. The Government believe, as he does, that they are important and very material, so I hope that he accepts our assurance.
My hon. Friend rightly drew attention to the need to put in the missing rung in the ladder through the development of the intermediate market. Again, I refer him to the words of my hon. Friend the Minister at the Royal Institution of Chartered Surveyors this morning. We are committed to supporting that intermediate sector and making sure that it flourishes. We want to promote shared ownership and help social tenants and others to own or part-own their home. Shared ownership is a way of helping lower-income households purchase a share in a home, perhaps for as little as 25%, which is what the current HomeBuy offer says.