Town and Country Planning

Siobhain McDonagh Excerpts

Wednesday 30th September 2020 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I invite all Members, especially the Ministers, to come and have a look at an example of permitted development that is probably the worst and most shocking that I have ever seen over my 40 years working in housing and then as an MP. It is a warehouse in the middle of an industrial estate, where the neighbour is a tip yard, a skip lorry site or a factory that processes food. It is a warehouse converted into 86 flats in the middle of one of south London’s busiest industrial estates—far from the train, far from the buses and nowhere near a school. These flats were never intended for people who had an alternative. These flats were always intended for homeless families as temporary accommodation, and they were intended as bait for desperate councils. I say to the right hon. Member for Harlow (Robert Halfon), whom I greatly admire, that councils are not housing people in these places because they want to cleanse them; they are doing it because they are desperate and they have nowhere else to put people.

If Ministers would like to see permitted development at its worst, they should come with me to Connect House. They should come and see the flats, which are so small that babies cannot learn to walk because they simply do not have the space, and children have nowhere to play because outside is the car park of the factory opposite. Ministers should come and watch the juggernauts run up and down the main streets of this industrial estate. If they have children, they would be terrified at the prospect of their children being on that street, and it is no different for any of the families forced to live in Connect House. The developers will tell them, “We were allowed to do this, and therefore it must be okay.” They should come and have a look, and see if they think that it is okay.

It does not matter what planning regime Ministers have, for if they do not have a view about how people live and where they should live, it is not going to work. I am not a nimby, but I would like to suggest to Ministers that they start considering building on the un-green green belt. I know it is easy for a Back Bencher to say that, because we are not going to take the abuse that Ministers will take, but there are plans where they could build up to 1 million new homes on old green-belt land, close to London train stations, to give people the real opportunity of a home to buy or a home to rent.

The only way this Government or any Government will ever get to the target of 300,000 homes is by ensuring that at least half of them are built by councils and housing associations. We have not met that target since 1964, when half were social housing units. That is not just my rabid, Labour view, but the view of Sir John Armitt, chair of the National Infrastructure Commission. Why would the private sector build 300,000 homes when they cannot sell them and when property values have reduced? If the Ministers want to see the numbers, they have to intervene, and if they intervene, it has to be with homes they would be willing to live in.

End of Eviction Moratorium

Siobhain McDonagh Excerpts

Wednesday 23rd September 2020 Commons Chamber

[Christopher Pincher]

My hon. Friend is absolutely right. Tenants should continue to pay their rent where they can. Where they can but will not, we have changed the Coronavirus Act 2020 to make it easier for landlords to act. We think we have struck a fair balance between the rights of tenants and the rights of landlords, and I ask the House to support it.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The end of the moratorium on eviction strikes fear in my heart, and it should strike fear in most Members’ hearts, because we know what is coming for so many families with children in our constituencies who have done nothing wrong, but are at the end of section 21 evictions. My local authority, the London Borough of Merton, has had 24 two-bedroom properties available since 1 April; that is less than one a week. It has had six three-bedroom properties available; that is one a month. The families who are going to be evicted over the next few months face years in temporary accommodation. What support is the Minister giving local councils to ensure that the temporary accommodation that these families find, which will be long term in anybody’s imagination, is fit for them and allows them to remain in their jobs, in their schools and close to their support networks?

[Christopher Pincher]

We have invested a great deal of money in local authorities throughout this crisis, as the hon. Lady knows. I have described to her the accommodation programme, which invests £263 million in 3,000 units to house the long-term homeless. We have just announced an affordable homes programme, which will result in something like 180,000 affordable homes being built over the next cycle, about half of which will be for a discounted rent. I encourage her to take up her concerns with the Mayor of London to ensure that he is building out the right number of homes, which he has pledged—and has thus far failed—to do.

United Kingdom Internal Market Bill

Siobhain McDonagh Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Dr Whitford]

rose—

[The Temporary Chair (Siobhain McDonagh)]

Order. I am sorry, but we have strayed a bit off the point. I like to give flexibility and latitude, but I do not want to kick off a long-standing discussion about something that was discussed last week.

[James Daly]

To get to the point about regulation and standards, I have listened to the debate and there have been numerous comments regarding a race to the bottom, and a derogation of standards. I can see no evidence at all in the papers that I have seen that anything other than the highest standards are to be maintained in regulation, food and all the other powers and competences that the UK Government will now be administering. There is no evidence for any of this. I appreciate the point that has been made, but numerous examples can be put forward by those who say, “I have concerns about this and concerns about that. This might happen or that might happen.” The central point is that the UK Government have repeatedly stated their commitment to the highest standards, whether that be in food, health, animal welfare standards and all the other examples that have been given.

Oral Answers to Questions

Siobhain McDonagh Excerpts

Monday 20th July 2020 Commons Chamber

[Mr Clarke]

The stronger towns fund is a vital part of our levelling-up work. I make no apologies whatsoever for saying that it is a really important tool to rectify long-standing economic imbalances in the country. The Barnett formula will be applied to investment for England in the normal way at the spending review. The funding is committed to the devolved nations, which means that the Governments in Scotland, Wales and Northern Ireland will receive a share of funding, with allocations to be confirmed in the next financial year.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

What steps his Department is taking to ensure that recipient local authorities are informed when a family is moved by another local authority to temporary accommodation in their local authority area.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Luke Hall)]

The Homelessness (Suitability of Accommodation) (England) Order 2012 and the homelessness code of guidance set out that local authorities should try to place households within the area, that when that is not possible, they should place the household as near as possible, and that that should be a last resort. If a local authority places a family outside its area, it is required by law to notify the local authority in the area in which the family are placed.

[Siobhain McDonagh]

How does the law work without enforcement? We know from the programme “Ross Kemp: Living with...” that homeless families travel approximately 400,000 miles—or 16 times round the globe—each year to get to their temporary accommodation, and 60 councils are not informing the receiving authorities. That is the reality; what are the Government going to do about it?

[Luke Hall]

The hon. Lady cares passionately about this issue and has raised it in the House recently. If a local authority places a household into temporary accommodation in another area, it is, as I said, required by law to notify that local authority to ensure that there is no disruption in schooling or employment. Our homelessness and advice support team should hold local authorities to account for their performance on this matter, and the Local Government Association is doing work with local authorities from London and throughout the country to develop a protocol for out-of-area placements. We are clear, from the Front Bench, that councils should adhere to this basic legal requirement.

Housing, Communities and Local Government: Departmental Spending

Siobhain McDonagh Excerpts

Thursday 9th July 2020 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

My contribution to today’s debate is on the eye-watering £1 billion spend by the Ministry on temporary accommodation. There are now 88,330 families trapped in temporary accommodation, including 128,340 children. These families have spent lockdown in hostels, warehouses and B&Bs, including 530 children who have been stuck in the latter for longer than the six-week legal limit. The scale of our housing crisis means that local authorities cannot even find temporary accommodation locally: 28% of families are sent far away from home, and away from friends, work and school. That is 24,430 households being moved from one borough to another, with local authorities playing chequers with people’s lives.

But the question is not how many, but who, where and how far away. So I commend the extraordinary investigation by ITV’s “Ross Kemp: Living with…” programme last Thursday, which revealed the detail behind these statistics and the impact that being sent across the country has on families’ lives.

In the past two years, homeless families have moved 400,000 miles across the country, which is the equivalent of 16 times around the planet. Councils in every region are sending families hundreds of miles away from home. There is a statutory duty for households in temporary accommodation to be housed in their home borough, or as close to it as possible. There is also a statutory duty on local authorities to inform receiving councils when they send homeless families to their borough. That groundbreaking programme found at least 60 councils that had failed to do so. The leader of Basildon Council even stated that 58% of the time a family arrive in his borough his council is not notified. That means that in the past four years more than 700 children have arrived in Basildon from London, putting the most extraordinary pressure on schools, GPs and hospitals, but putting even more pressure on these individual families, who are cut off from the support and help that they need. When will the Government enforce the law that already exists?

Financial and Social Emergency Support Package

Siobhain McDonagh Excerpts

Wednesday 25th March 2020 Commons Chamber

[Mr Clarke]

It is key workers only. I have to correct the hon. Gentleman. It is only those who are doing the jobs specified in the list we have issued.

To conclude, the Government have responded rapidly to this crisis. An enormous amount has happened in the past two weeks. I am proud of what we are doing. We are ensuring the long-term protection of public services and businesses.

[Siobhain McDonagh]

Will the Minister give way?

Local Government Responsibilities: Public Services

Siobhain McDonagh Excerpts

Wednesday 18th March 2020 Commons Chamber

[Jim McMahon]

I think that is right. When councils have to look elsewhere for funding, a risk naturally comes with that. The National Audit Office produced a report on this and the Government share these concerns. The Public Works Loan Board interest rate was doubled overnight by the Government, because they are concerned about the exposure that councils face in buying assets as investments. The NAO expressed the same concern. In a two-year period, councils have been buying investment portfolio assets of £6 billion. Why? Because they are desperate to see income from other places, but this is office accommodation and in retail, sometimes not even in the area that the council is responsible for. The Government response is to double the Public Works Loan Board rate instead of addressing the fundamental reason why councils have to look elsewhere for funding, which feels illogical. We have to make sure that the base funding for councils is absolutely where it needs to be.

We are coming to the greatest test of local government, public service and society that any of us have seen in our lifetime. It will test us all. It will test the fabric of society and test public services to breaking point, at a time when they are built on extremely weak foundations. I am genuinely fearful for how we can continue this in a sustained period. For a short time, they will make it work. They will roll their sleeves up and work together. They will create a partnership at a local level and find a way through it, but the Government know full well that this is not a crisis that will last weeks or even months. A sustained response will be required and the Government will have to make sure that they give local government the funding that they need to provide the critical response. We also need to manage public expectation.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Is my hon. Friend aware that only today, local government has received a directive from central Government to provide street sleepers—homeless people on the streets—with self-contained accommodation? Great idea, but where are they going to find it?

[Jim McMahon]

It is also the case, as I hope most Members know, that solving homelessness is not just about providing a roof. That is a critical part of it, but it is about how the ecosystem of public service works to make sure that the alcohol and drug addiction services, mental health support and physical health support are in place. We need to make sure that this is not just about giving someone a set of keys for a property—by the way, if that was possible, why did we not do it before this crisis? —but making sure that the wider support is in place.

The Government need to be honest about the scale of the challenge that public services will face. I still believe that at this moment, the public of this country do not understand the scale of what may face us all and particularly the impact that it will have on public services, and not just for the workforce. We need to remember, when we talk about public services and the community over here, that public servants are the community. They live and work in the communities where we all do. If people are off work because they have to self-isolate, are ill or have caring responsibilities, that will have a direct impact on the local government workforce. Many will have partners working in the private sector, as well as the public sector, and they may well face redundancies and hours being cut in the family. They will go through the same financial stresses and strains, and there will be an impact on family life in the same way. The Government need to be honest about what that means for day-to-day public services, and what the public can expect when we really have to pull through to make sure that we can keep the most urgent critical care going in this country.

The Chancellor said that money will be made available, but we see a drip feed of those announcements in a way that is not helpful for local government. The public health settlement for next year was released only yesterday, 14 days before the end of the financial year. Local councils were not even able to plan ahead about what that meant. We cannot have that when it comes to a crisis of this scale.

I have always believed that our local government is the first line of defence and the frontline in delivering public services. I have always believed that they are the glue that holds our community together, that they are the leaders of place and that they can stir us to a better future. We have seen that in the way that they bring communities together, invest in their local economies and deliver decent public services. What we will demand of those people in the coming weeks and months will test us all, and it will test their resolve. It will not be good enough just to say, “Thank you for all that you do,” without addressing the fact that, for 10 years, they have had to shoulder a disproportionate burden of austerity. Surely, now is the time to say to those people, “We will right the wrong of making you take on that burden of austerity. You were not the bankers, you did not create the financial crisis, and it was wrong to place you in a position where you had to bear a disproportionate burden.” We need to put that right today.

We need not just money for the current crisis but sustained funding so we can rebuild public services, invest in our frontline and do more than just give those people one word. By the time we get through this, they will not be just the frontline that we respect; they will be seen for the heroes that they are.

Planning for the Future

Siobhain McDonagh Excerpts

Thursday 12th March 2020 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

The car valeting site in Tottenham Hale, the illegal waste tip in Hillingdon, the tip in Ealing that is inaccessible: what happens to these ungreen green-belt sites that could provide a million new homes close to London train stations? Any London MP knows that we desperately need such homes for people who may never be able to afford to buy.

[Robert Jenrick]

There are sites like that in all parts of the country. It requires good local councils and, perhaps in this case, the Mayor of London, to get involved and to help unlock the land for development. I appreciate that there can be complexities in many cases, not least with illegal waste sites, for example. We created a fund in the last Budget to tackle that—a £20 million fund that perhaps the hon. Lady would consider bidding into. We announced in this Budget a £400 million fund to unlock brownfield sites, and that will be available for ambitious Mayors and local councils across the country to bid into very shortly. I hope that she will take us up on that.

Housing and Planning

Siobhain McDonagh Excerpts

Tuesday 3rd March 2020 Westminster Hall

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Problems need solutions—and here is one. Within London’s green belt alone there are enough non-green sites surrounding train stations for more than 1 million new homes. Of course, truly green sites should be protected. My frustration is not with parks, hills or areas of environmental protection, but with the scrappy plots of land in towns and cities, surrounding railway stations, that no one in their right mind would see as attractive. I am talking about the car wash in Tottenham Hale, the scrubland in Ealing, the waste plant in Hillingdon and the concrete airfield in Wisley—sites that no one in their right mind would recognise as green belt if it were not for their designation.

Despite the strength of the green-belt brand, 80% of London’s green belt is inaccessible to the public as green space and does not even have an environmental status. Together, those scrappy plots of what I refer to as the grey belt remain wrongly designated, just because of the potential furore that de-designation might cause. It is time to burst the myth that all green belt is green, and use those non-green sites to provide the homes that we so desperately need. I read with interest this weekend the comments of the former Chancellor, the right hon. Member for Bromsgrove (Sajid Javid), about his plan for the upcoming Budget, and his belief that the green belt around major train stations should be reviewed. I wait with cautious optimism to see whether that will happen under the new Chancellor.

Of course, de-designation is one thing, but what the land is used for is another. If any green-belt land is released, it should be fundamental that it be used to help to resolve the housing crisis, providing the social and genuinely affordable homes for which our country is so desperate. To offer it instead as a land bank bonus for the biggest house builders would seem inexcusable to the thousands of my constituents waiting for a place to call home. I ask the Minister please to grasp the nettle of the sensible policy I have outlined—but to use the land for the people who need it most. Otherwise we will be back in this Chamber debating even worse statistics in the months and years ahead.

--- Later in debate ---

[Christopher Pincher]

The green belt is very important. We need to ensure that green spaces are protected, and that we have beautiful spaces in which we can all live. We also need to ensure that local plans are up to date and fit for purpose, in order to ensure that the houses that people want and need can be built.

That brings me rather nicely to my fundamental point. We all know that this country does not have enough homes. That is why we need a more agile and flexible planning system. KPMG and Shelter have both reported that simply to meet rising future demand, a minimum of a quarter of a million new homes will be needed every year. The median house price in England is eight times higher than median gross annual earnings; in London, it is 12.3 times higher.

We have to be bold and ambitious in our vision for the future of planning and house building in England. That is why, in January 2018, we set up Homes England as our housing accelerator, to intervene in the market and drive a step change in housing delivery. We have an unwavering commitment to enable the housing market to deliver at least 300,000 new homes a year by the mid-2020s, and a million homes by the end of this Parliament. I am pleased that the latest figures show that last year housing supply, which has been growing year on year, increased by more than 241,000, to the highest level in the last 31 years.

[Siobhain McDonagh]

Will the Minister give way?

[Christopher Pincher]

I will, of course, give way to the hon. Member, as she intervenes at such volume.

[Siobhain McDonagh]

In the London borough of Merton, 10,000 families are on the waiting list. Since April 2019, they have had access to 18 three-bedroom properties. What does the Minister say to those 10,000 families?

[Christopher Pincher]

I would say that we need to build more homes in London. That is a conversation that we are having with the Mayor and with local authorities, because if we are to get those people into homes that they desire, we need to ensure that we are building them.

We have also cut the red tape—a perennial bête noire—making it quicker to plan and build homes that people want to live in. However, there is far more that we need to do to address the housing challenge. We are implementing planning reforms to ensure that our planning system creates and supports thriving communities, and to improve the quality, quantity and speed of home building. As I said, we will introduce the planning White Paper shortly, setting out our proposals to make the planning process clearer, more accessible and more certain for all users, including homeowners and small businesses, and I look forward to responses from colleagues across the House. The White Paper will also address resourcing and performance in planning departments, which various colleagues mentioned, and ensure that timely decisions are made.

The Government set national planning policy, but it is important that decisions and policies are made locally. We are clear that councils and their communities are best placed to take decisions on planning issues affecting their local area within the context of national planning policy. Local plans play an important role in outlining the homes that an area needs, and I believe that such plans can deliver local decisions that will remain at the heart of the planning system. Local plans provide clarity to communities and developers about where new homes should be built and how they should look, and such plans identify what developments are needed in an area, supported by the right infrastructure.

British House Building Industry

Siobhain McDonagh Excerpts

Thursday 5th September 2019 Commons Chamber

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I beg to move,

That this House notes with concern the ongoing shortage of housing and the housing crisis across England; further notes with concern the number of families in temporary accommodation and the number of people rough sleeping; acknowledges that there are over one million households on housing waiting lists; recognises the Government’s target to build 300,000 new homes each year; acknowledges that this target has been missed in each year that the Government has been in office and that the number of homes constructed by housebuilding companies that are deemed affordable is insufficient; notes the pay ratios between executives and employees in FTSE 350 housebuilding companies; and calls on the Government to tackle the housing crisis as an urgent priority.

I thank the Backbench Business Committee for granting time for today’s debate and all the Members who will participate. It is amazing to see so many Members here, given the week we have had. At the request of Madam Deputy Speaker, I have stripped quite a lot from this speech because so many people want to speak—I will do my best. I want to give credit to the High Pay Centre and the best possible exposition of its amazing research for this debate on the state of the house building industry.

No Member of this House, whatever their party, can but be fully aware of the crisis in housing and homelessness in all our constituencies. I will open the debate by looking at the scale of the current housing crisis, by considering the record of the FTSE 350 house building companies and their contribution to solving this crisis and finally, and most amazingly, by analysing the utter pay inequality that is rife across the British house building industry.

On streets across our country and on the very doorstep of Parliament, British citizens who simply cannot afford a place to call home are sleeping rough. For the general public, they are the visual representation of our homelessness crisis. As highlighted by the Children’s Commissioner last month, homelessness is far more common in 21st-century Britain.

Not a single week goes by without a normal, hard-working family in my constituency being evicted from their privately rented property and sent to temporary accommodation miles away from family, their schools and their jobs. They join over 83,700 households across our country, including 124,000 children, who are living in temporary accommodation.

[Joan Ryan (Enfield North) (IGC)]

May I add to the picture the hon. Lady is painting by telling her that Enfield has significant problems on housing and homelessness? We have the capital’s highest eviction rate and the second highest number of residents in temporary accommodation, and homelessness has rocketed by 250% since 2011. Does she agree—from what she is saying, I think she clearly does—that the Government’s policy is not only hurting the housing market but causing a huge set of social problems, too?

[Siobhain McDonagh]

The social and financial cost of homelessness far exceeds what we spend on temporary accommodation, which was £1 billion of taxpayers’ money last year—every £1 of it badly spent. Some 6,980 families in my constituency are trapped in bed and breakfast accommodation, having been there longer than the six-week legal limit, including 810 children. Others are stuck in hostels far away from their schools, families and friends.

Some of my constituents are housed, at least temporarily, in Connect House, a warehouse on the busiest south London industrial estate. For anybody who wants to see what Connect House looks like, please have a look at the video on my Twitter account.

I am just crawling through my speech, because I see more and more people here.

Other families who have come to see me are on the ever-expanding waiting list, with 1.2 million families across our country now waiting for a place to call home—1.2 million. Just 6,464 new social homes were built in 2017-18, the second lowest number on record. At that rate, it could take 172 years to give a socially rented home to everyone on the current waiting list. That is utterly appalling when we compare those figures with the 150,000 social homes delivered each year in the mid-1960s or the 203,000 council homes that the Government delivered in 1953. It has been done before and we all know that we can do it again.

In Merton, where my constituency is based, 10,000 families are on the housing waiting list, with lettings for just 2.5% of them in 2018-19. What hope can I give the other 97.5% that they will ever find a place to go? I would like to provide statistics on home ownership but, again, I will move on to some of the other data in my speech.

The statistics and the stories that I have detailed this afternoon should provide thoroughly fertile ground for the British house building industry to get on and build, but its record does not match the potential. Here is the reality: our country’s housing target is 300,000 new homes a year—a figure that has not been reached, as we have already identified, since 1969, when councils and housing associations were building new homes. England is now on course for the worst decade for house building since the second world war.

I would like to look specifically at the performance of the leading house building companies in our country. To the best of my understanding, the figures are all correct as of June. In the last financial year, just 86,685 homes were completed by the 10 FTSE 350 house building companies, despite an extraordinary collective pre-tax profit of more than £5.37 billion. That is a mind-boggling figure, which is better understood when broken down.

Let us start with the four FTSE 100 housing companies: Barratt, Persimmon, Taylor Wimpey and Berkeley. In the most recent financial year, Barratt completed just 17,579 homes—slightly more than Persimmon, which finished 16,449 homes, with profits of £1.1 billion, of which half was down to public subsidy through the Government’s Help to Buy scheme. Taylor Wimpey came third with 15,275 homes completed but, in fourth place, despite an astonishing pre-tax profit of £934.9 million, is Berkeley homes, which completed a pitiful 3,894 homes. Together, those four companies collected a pre-tax profit of an unimaginable £3.68 billion, despite completing just 53,198 homes—less than 18% of the Government’s house building target.

What went wrong? Did they perhaps just not have the land to build the houses? Those four companies are sitting on a land bank of more than 300,000 plots between them. If we add in the rest of the FTSE 350 house building companies—Bellway, Bovis, Countryside, Crest Nicholson, Galliford and Redrow—the collective land bank is a staggering 470,068 plots, yet they completed 86,685 homes between them.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

I congratulate the hon. Lady on her excellent speech, with which I broadly agree. Does she agree that while, from a moral point of view, we obviously need to build more houses in the public and private sectors, we also need to radically reform the planning system, which takes far too long and is a big roadblock to getting the homes we need for people?

[Siobhain McDonagh]

I absolutely agree with the hon. Gentleman and would love an opportunity to have a debate about planning law, building on the green belt and other matters. I could speak at great length about them, but I will not because I want to allow other people to get in.

I would like Members to focus their attention on pay. Some of the figures are staggering. Let me be clear: I am new Labour to the core. I have no problem with successful business people earning a lot of money, but what happens in this sector goes beyond earning a fair day’s money. I was furious to see that, almost exclusively on the back of the British taxpayer through Help to Buy, Persimmon awarded its former chief executive Jeff Fairburn a staggering £75 million bonus, despite an appalling record of utterly substandard homes. How can that be right or fair?

[Justin Madders (Ellesmere Port and Neston) (Lab)]

That is a truly staggering pay packet. Does my hon. Friend agree that, given that Persimmon has recently given back the freeholds in Cardiff that it mis-sold to a number of homeowners, it should do that for everyone to whom it has mis-sold in the whole country?

[Siobhain McDonagh]

I completely agree with my hon. Friend and congratulate him on all the work he has been doing. Without the attention he has given the issue, much would not have happened.

Let us be clear: the money does not flow through the companies. Thanks to excellent new research from the High Pay Centre, I can reveal the quite extraordinary pay packets of the 10 FTSE 350 house building companies. In the heart of our country’s housing crisis, the four FTSE 100 house building companies spent an eye-watering £53.2 million on their CEO pay. David Thomas at Barratt earned £2.811 million; Peter Redfern of Taylor Wimpey earned £3.152 million; Tony Pidgley at Berkeley reached £8.256 million; and Mr Fairburn, formerly of Persimmon, got a whopping £38.9 million.

[Bob Stewart (Beckenham) (Con)]

The hon. Lady is making a great speech and I totally endorse everything she has said. I am really worried as to what the heck the shareholders are doing. Do they not question this when they have their annual general meeting? They are meant to bring the companies to account on such matters.

--- Later in debate ---

[Siobhain McDonagh]

Actually, the shareholders are doing quite well as well, because they are getting quite a lot of money on the back of Help to Buy. That could be the subject of another debate.

I have no doubt that those four men work hard and have a grasp and understanding of their industry that few others could provide, but surely high pay is supposed to be about high productivity and high quality of product. It seems to me that the more substandard the properties they build and the lower their rate of productivity, the more they get paid. There seems to be no consequence for poor performance. We are in a housing crisis—is it really appropriate to provide such preposterous pay packets, considering the house building record I have described?

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

I agree with almost everything that the hon. Lady has said, but I ought to point out—I declare an interest, because as part of an Industry and Parliament Trust fellowship I spent a day at Berkeley—that the main shareholder of Berkeley is Tony Pidgley, who started that business himself. He left school at 15, unable to read and write, and he has employed thousands of people, created a great deal of wealth for this country and paid a huge amount of tax. Moreover, he would deny—and he would be right to do so, unlike some of the others the hon. Lady rightly mentioned—that Berkeley produces poor quality. It does not; it produces extremely good quality. Berkeley refuses to be a member of the Home Builders Federation because it does not consider itself a volume house builder.

[Siobhain McDonagh]

I certainly agree with the hon. Gentleman in part. I have had the honour of meeting Mr Pidgley and I give him credit for his career and his actions. His profits do not come from Help to Buy, but, even so, it does seem like a very unequal company. I have no problem with people earning well at the top, but the people at the bottom should not earn badly.

[Matt Western (Warwick and Leamington) (Lab)]

I congratulate my hon. Friend on securing this debate and making an excellent speech. On her last point, as far as I understand it, Berkeley constructed no affordable housing last year, and for Barratt Homes, Persimmon and the others in the top four, the figures are around 18% to 20%. It is a complete scam. The amount of money they are taking out at the top, and not just for executive pay or shareholder pay—I have no problems with shareholders receiving dividends and so on—is at the expense of much-needed social and affordable housing. The whole viability element of the planning system is a complete scam and should be done away with.

[Siobhain McDonagh]

I absolutely agree with my hon. Friend, and I know that he works really hard on that subject. Just like the issues about the whole planning system, that could be the topic of another debate, to which I am sure we would both want to contribute.

The median pay for FTSE 100 house building CEOs is 228 times that of the typical UK construction worker.

[Gareth Johnson (Dartford) (Con)]

Does the hon. Lady agree that one way forward would be to increase the opportunities for self-build? It is incredibly difficult at the moment. If an individual wants to buy a plot of land and find a builder to construct a house for them, they find so many obstacles in their way. Does the hon. Lady agree that that may be a way forward to improve on the current situation?

[Siobhain McDonagh]

I think the hon. Gentleman has stolen the words of the hon. Member for South Norfolk (Mr Bacon), who also does loads of work on self-build. It is an issue that small and medium-sized builders have been squeezed out, but unfortunately I do not have time to address that matter today.

Let me return to the matter of pay ratios. At Barratt, the pay ratio between median executive pay and median construction worker pay is a disappointing 113:1. At Taylor Wimpey, it is an awful 126:1. At Berkeley, it is a shocking 331:1. But at Persimmon, it is an absolutely deplorable 1,561:1. Jeff Fairburn, in his final year of employment as chief executive of Persimmon, received more than £38.9 million, yet his average member of staff earnt £37,118. That was for technical staff. We do not know what the company’s subcontracted electricians, roofers or other wet trades people might have received. How can that be fair?

The vast scale of inequality looks even worse in the light of UK housing prices. Assuming that the average UK house price is £230,630—I assure the House that it is not possible to buy anything in my constituency or in the constituency of the right hon. Member for Enfield North (Joan Ryan) for that price—and that the average UK construction worker saves 10% of their earnings to buy a house, it would take them 92 years to save up and 19 years just to save for the deposit alone. But the average FTSE 350 CEO could buy 28 houses outright in one year, 532 houses over 19 years—the years that the construction worker would be using to build a deposit—and 2,567 houses over the 92 years in which the construction worker would be saving up to afford their home. On no level can this be right or fair. It cannot be right for our society. It cannot be right for us as taxpayers. It is simply wrong. The system is broken. In the main, the market does not reward hard work, endeavour and meeting the housing need. In my view, it certainly should do.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It will be obvious to Members that we have very little time left—not surprising in the current circumstances—and that lots of people want to speak. We will try to manage without a time limit. Let us see whether we can be courteous and consensual. If everyone takes around five minutes, we will get there.

--- Later in debate ---

[Siobhain McDonagh]

I thank everyone who has contributed to the debate. In the few seconds I have left, I want to ask that we ban the word “affordable” in the context of housing. “Affordable” means 80% of market rent, but the vast proportion of our constituents could never afford 80% of market rent. Let us talk about social housing rent and owner occupation, but let us also clearly address the question of what is affordable, because the “affordable housing” is not affordable.

Question put and agreed to.

Resolved,

That this House notes with concern the ongoing shortage of housing and the housing crisis across England; further notes with concern the number of families in temporary accommodation and the number of people rough sleeping; acknowledges that there are over one million households on housing waiting lists; recognises the Government’s target to build 300,000 new homes each year; acknowledges that this target has been missed in each year that the Government has been in office and that the number of homes constructed by housebuilding companies that are deemed affordable is insufficient; notes the pay ratios between executives and employees in FTSE 350 housebuilding companies; and calls on the Government to tackle the housing crisis as an urgent priority.