Warwick District Council: New Offices

Tony Lloyd Excerpts

Wednesday 10th January 2018 Westminster Hall

[Matt Western]

The hon. Gentleman makes a fair point. At a time when local authorities are restructuring under the pressure of budgetary restraint, that could be an option, but there are other options, such as moving into vacant buildings that the authority owns. He is right to highlight that point, and I will come on to develop it.

How can a council that is likely to impose a 3% council tax increase in April, alongside other council tax increases that will mean a total rise of perhaps 7% to 8% for council tax payers, justify using scarce resources to build itself a shiny new office? Its sister county council has the necessary vacant space and is closing much-valued children’s centres, claiming that that is not what councils should be doing and that they should simply contract out delivery services. The council’s justifications include the fact that the offices are just 500 metres closer to the town centre and that they might be more economical to run. It claims that the move will be cost-neutral and could save £300,000 a year, but given my recent experience of its projects, including leisure centres, that will be wide of the mark.

There are three main issues: the development lacks provision for affordable housing, which is so desperately needed in the area; it is the wrong priority at a time of austerity; and it will disrupt car parking in Leamington town centre, and ultimately the viability of town centre businesses. In essence, it is the wrong development at the wrong time in the wrong place.

I want to touch on the issue of affordable homes. Some people may believe that the new office is critical at a time of economic austerity, and that the arguments of better heating and efficiency justify the £10 million spent, but then we discover that the council office project is being funded by the disposal of its current site for the exclusive development of private housing. In fact, the planning applications for the Riverside House and Covent Garden sites total more than 200 dwellings, but none of them will be council, social or affordable—zero council, zero social and zero affordable housing.

Remember that the two applications were made by the council for the council. What about the council’s own policy—the policy it wrote itself and specified in its own local plan—that 40% of properties on large new housing developments should be affordable housing? To be clear, large is anything greater than 10, so given that there will be 170 and 44 on the two sites, they comfortably qualify. It is clear that with these applications —approval has been outlined—the council is failing to meet its own standards for affordable housing, which it seeks to place on other developers. What sort of precedent is that setting?

[Tony Lloyd (Rochdale) (Lab)]

My hon. Friend is making an excellent speech. The offices are a local issue, but the use of land for housing is a national issue—the use of land at premium prices that prevents the development of affordable housing has to be a national issue. Will the Minister have a serious look at that to see whether the local plan, which requires 40% affordable homes, can be enforced by central Government? We need to think of that as national public policy.

[Matt Western]

I thank my hon. Friend, who makes the point so well, as ever. Currently, in Warwick district—I am sure there are other examples around the country—only 27% of housing plans that have been approved are for affordable housing. The council itself is approving 0% affordable housing, so there is a much wider implication for the principle and for necessary housing, as he said.

If the council applied its own policy to those developments, Leamington would gain 86 affordable homes, which would make a huge difference to families in dire need of homes below market prices. Those who heard my maiden speech will be aware that there are about 2,400 people on the housing waiting list in Warwick district, that there are 700 statutory homeless people, and that there has been a 50% increase in rough sleeping in recent years. For young people, the situation is particularly dire. In 2015, Shelter found that 31% of working young adults in the area live with their parents, compared with a 25% average in England.

Some might simply excuse the council for ignoring social and affordable housing and accept the argument that it is not viable to include them, but that is missing the point. The new office development is not necessary, and it is only that that is disguising the council’s claim about why it is not building the much-needed affordable housing on the two sites. In its outline planning application, the council managed to wriggle out of the 40% requirement for affordable housing by securing viability—that great “v” word—appraisals that say that the developments would not be viable if they provided any affordable housing. Furthermore, the council is refusing to release the details of those viability assessments on the grounds that they contain commercially sensitive information, partly because the developments are a joint venture with a private company, which ignores the public interest in the investment in new buildings.

The council claims in the viability assessments that the capital receipts gained from the housing developments are required to fund the building of the new offices, but if it did not have the capacity to provide any affordable housing, it should never have proposed its new office plan in the first place. There is also the broader issue that the viability assessments allow developers to avoid requirements for affordable housing across the board. That policy was introduced in 2012 as part of the national planning policy framework, which has been disastrous for the supply of affordable housing, contributing to the housing crisis, and which should be dropped. When housebuilders such as Persimmon claim that developments are not viable, but the chief executive is pocketing a £130 million bonus, something is not right.

There is clearly a fundamental issue with a local authority being both applicant and jury. The planning committee is supposed to be quasi-judicial, but it is evident, as in this case, that planning officers lean on it to ensure that an application gets passed. How can the planning department “recommend approval” to its own committee on its own project? Let us be honest: that is not quasi-judicial.

The third report of the Nolan Committee on Standards in Public Life—the committee advises the Prime Minister on the standards to be expected of those in public office—stated:

“We have particular concerns about…local authorities granting themselves planning permission…and we believe that there should be greater openness in the planning process.”

Warwick District Council has done exactly what the Nolan committee advised that local authorities should not do. In a case of commercial confidentiality, the failure to deliver affordable housing should preclude such exemption from public scrutiny. The council’s proposals, which fail residents in the area who are in desperate need of more affordable housing, should be dropped.

The people of Warwick district, in common with all communities, have been battered by a programme of Government austerity these past seven years, and local services are being cut. Communities are losing children’s centres, social care is at a crisis point and all services are suffering from the cuts. It is no wonder that, in such a challenging environment, many people tell me how surprised they are that the district council is proposing to build a new office.

--- Later in debate ---

[Tony Lloyd]

I endorse strongly what the Minister is saying. Hearing the northern chimes of Rochdale town hall on the BBC would enlighten the world about the beauties of the north.

[Jake Berry]

We are as one on that—“bong” is all I can say.

We also heard from the hon. Member for Peterborough (Fiona Onasanya), who raised important issues in her constituency, and from my hon. Friend the Member for Witney (Robert Courts), who has great experience as a former deputy leader of West Oxfordshire District Council. In his time there he was always involved in saving the local authority money, not for the sake of it or from any ideologically driven point of view, but so that he and his colleagues in the local government family of West Oxfordshire could invest in public services and public service delivery.

Before I move on to the main part of my speech, I will take the opportunity, on behalf of all hon. Members present, the Ministry of Housing, Communities and Local Government in particular and me, to put on record our thanks to all councillors in our local government family who, regardless of political persuasion, work so hard to serve the communities that they represent.

I am sure that the hon. Member for Warwick and Leamington is aware that the Secretary of State has a quasi-judicial role in any planning applications in the United Kingdom. It would not be appropriate for me to comment on the merits of Warwick’s local plan or to discuss in detail the application that he mentioned specifically. Equally, it would not be appropriate for me to comment on what is essentially a local decision by Warwick council to relocate its offices. However, I am aware that that is part of a wider efficiency plan that includes a review of council assets. Local authorities are right to manage their own assets and expenditure responsibly in a democratically accountable way. Warwick District Council is a stable, well-managed, fiscally prudent, Conservative-controlled council that has achieved a surplus on its general fund revenue budget in each of the past six years and is projected to do so again in this financial year, which shows that it has a history of taking difficult decisions to better serve the people in Warwick, as a prudent local authority.

The hon. Gentleman raised concerns about affordable housing provision. I will set out our national policy on this issue and what our national planning policy framework does to encourage the delivery of affordable housing. I will touch on parking facilities and how the framework promotes sustainable transport solutions. I will also say a bit about how we require local authorities to make sure that the money they expend is spent well and that they take prudent investment decisions.

The Government’s priority is to boost housing supply and to build more affordable homes, supporting the different needs of a wide range of people. That is why the Prime Minister recently announced an additional £2 billion of funding for affordable housing, increasing the affordable homes programme in the 2016 to 2021 budget to more than £9 billion, to deliver a wide range of affordable housing, including social rent homes, by March 2021. The new funding will support councils and housing associations to build more genuinely affordable homes in areas of acute affordability pressure, where families are struggling with the cost of rent and some families may be at risk of homelessness.

The hon. Gentleman raised the issue of homelessness and families waiting on the list during his maiden speech; it is absolutely right and appropriate that in this House we focus on what is a hugely important issue for us all as constituency MPs and for the Government. Our expanding programme will provide a wide range of homes to meet the housing needs of a range of people in different circumstances and different housing markets. Further details on how social rent will be prioritised in the areas of greatest need will be published shortly. The Government have also confirmed plans to create a stable environment by setting long-term rent deals for councils and housing associations in England from 2020. Increases will be limited to the consumer prices index plus 1% for the next five years until 2020.

On our national planning policy, our housing White Paper shows that the Government are strongly committed to a plan-led system, where new homes are provided through up-to-date local plans prepared in consultation with local people. The giveaway about local plans is in their title: they should be local, widely consulted on and driven by local authorities, not by Government. The White Paper also includes proposals for local authorities to have clear policies for addressing the housing needs of particular groups. As part of that, we expect local authorities to identify their affordable housing need. As always, we expect them to make a planning judgment—as they do now—to understand how many affordable homes should be built in their local planning area.

As I started out by saying, it is up to local authorities to determine how their own affordable housing policy is applied, and to determine their own planning applications in line with their own view. Planning law requires that applications for planning permission must be determined in accordance with the development plan, unless material considerations indicate otherwise. Viability is a material consideration. Different sites have different costs, and it might be appropriate for local authorities to seek different levels of local planning applications, including affordable housing, in certain circumstances.