Housing: Long-term Plan

Debate between Tim Farron and Jim Cunningham

Tuesday 9th February 2016 Commons Chamber

[Tim Farron]

My right hon. Friend makes a perfect point that is relevant to my experience in Cumbria. None of this is to say that a reduction in social rents is a bad thing—it is a good thing—but, as I have said, there is something utterly mean-spirited and counterproductive about being very generous with other people’s money.

Rural areas such as mine in Cumbria face particular challenges in tackling the issue of affordable housing. If we consider the fact that some 8% of homes in rural areas are affordable, compared with 20% across the country, we will realise how difficult it is for children who grow up in rural communities to cling on, make a living there and raise their own families when they get older, and, indeed, for key workers to live in the areas in which they work.

On the positive side, when councils have been empowered and supported to deliver homes, they have proven that they can do so. South Lakeland District Council has delivered hundreds of new affordable homes, bringing the waiting list down by 18% in a single year. It is a fantastic example of a council with the right priorities delivering to meet the needs of its community. So many communities are under threat. The growth in second home ownership means that communities can be hollowed out as the result of a diminished resident population and the subsequent loss of schools, post offices, shops and public transport links.

The increase in stamp duty on the purchase of second homes is good news, but mostly for the Treasury. When communities such as Hawkshead have roughly 50% second home ownership, why cannot those funds be redirected to those communities, to support local services and to help provide new affordable homes? Why will the Government not support Liberal Democrat plans to allow second homes to be charged double council tax, to tackle the immense damage that excessive second home ownership does to towns and villages in places such as the west country, Northumberland and Cumbria?

Councils have a valuable part to play in providing the homes we need to tackle the crisis of supply. They could play an even greater role in providing homes of all tenures, by which I mean not just social homes, but homes for sale and private rent, improving the quality of homes in that sector. Yet councils are being hit with cuts and extra taxes from every side by this Government in what appears to be a war of attrition aimed at putting councils out of the business of providing homes.

Councils are not the whole answer to the housing crisis, but they are part of the solution, as are starter homes. We must trust our democratically elected councils, which know and understand local needs, to deliver for their communities. That is why we are calling on the Government to lift the borrowing cap to enable councils to borrow to build. That could lead to an extra 80,000 homes over four years, each providing a secure home for a family to bring up their children. That has been called for by the London Chamber of Commerce and Industry, the Local Government Association and others. Most solutions to the housing crisis are long term, but where immediate action can be taken, the Government surely must take it. Ideology must not be allowed to get in the way of supplying the homes that are needed. It is time to trust councils again.

[Mr Jim Cunningham (Coventry South) (Lab)]

I am sure the hon. Gentleman remembers as well as I do the days when parties stood for election with housing targets for the number of council houses that they would build each year in government. More importantly, I agree that allowing councils to borrow to build council houses would take the pressure off prices for young people who want to buy homes and get a start in life. There is an imbalance in relation to housing.

[Tim Farron]

The hon. Gentleman makes a great point. Demand and supply are at the heart of our housing crisis. All the evidence suggests that it just makes sense to provide more social housing—people who believe in the free market should understand this—because it will take the heat out of the bottom end of the bought market and make houses more affordable.

Humanitarian Crisis in the Mediterranean and Europe

Debate between Tim Farron and Jim Cunningham

Wednesday 9th September 2015 Commons Chamber

[Tim Farron]

My right hon. Friend is correct. It is a great shame. The story of the coalition on this issue is that all the Liberal Democrats and all the Conservatives who were in Government positions supported that target, but there were dozens and dozens of Conservative Back Benchers who, if they had had their way, would have taken that money away.

[Mr Jim Cunningham (Coventry South) (Lab)]

The Liberals and the Government are taking credit for the 0.7%. We have all played a part—the Labour party played a part when in government. More importantly, does the hon. Gentleman agree that it is vital that refugees are resettled in such a way that they fit into the community and that ghettos are not created through lack of resources? Previous Governments have used urban aid budgets to do that.

[Tim Farron]

I am grateful to the hon. Gentleman for making that point. It was exactly the reason why I raised the issue of the DFID funding. It is right that funds should be given to local communities to allow for that resettlement. My key concern is that we are taking from the DFID budget, and therefore taking from that 0.7%, in order to fund this work. That money should come from other sources. We ought to remember that the 0.7% commitment to international aid is about conflict prevention, to make sure that the refugee crisis does not get worse in the years to come. It is short-sighted to raid the DFID budget in order to fund refugee settlement; the money should come from other sources.

I am bound to decry the fact that this Government refuse once again to co-operate with others in the European Union on a collective approach. That affects our standing in the EU and the world. We are seen as a country that turns its back on its neighbours, that is not a good team player and that is not able to roll up its sleeves collectively to try to make a difference. The Prime Minister will spend time over the coming months in the capitals of Europe trying to build the case for concessions so that he can make the case for a yes vote in an EU referendum. What chance has he now of getting concessions from people who believe he has been such a non-team player over this most critical issue? He has damaged Britain’s standing and he has potentially put at greater risk Britain’s membership of the European Union.