The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to close this debate for the Government. I congratulate my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) and thank her for securing the debate, and I thank the Backbench Business Committee for granting the House an opportunity to debate this incredibly important matter. I was struck, in what was a strong opening speech by my hon. Friend, by her emphasis on people and the ability of “planning done properly” to change lives. That is a hugely important statement and a principle that guides the Government in all areas. I thank all hon. Members for contributing to the debate. We had a series of thoughtful, passionate and in many cases personal contributions, and I think the most references to concrete animals of any debate in my nearly 11 years in this place. It has been a thoughtful and important debate, rich with history.
The post-war new towns programme was the most ambitious town building effort ever undertaken in the UK. It transformed the lives of millions of working people by giving them affordable and well-designed homes in well-planned and beautiful surroundings. The 32 communities it created are now home to millions of people, including a number of hon. Members who made contributions this afternoon. I stress that the Government will continue to invest in the regeneration of our existing new towns. My hon. Friend made reference to some of the investment currently being made in hers. My hon. Friends the Members for Telford (Shaun Davies), for Rugby (John Slinger), for Welwyn Hatfield (Andrew Lewin) and for Stevenage (Kevin Bonavia) all made the case for what is happening, and what they want to see happen in the years ahead, to further revitalise the places they represent.
Alongside those efforts, we are determined to bring forward the next generation of new towns, as per our manifesto commitment. In so doing, we have taken inspiration from the proud legacy of the 1945 Labour Government who, through the New Towns Act 1946, initiated the first post-war wave of new town building, as well as the subsequent waves in the 1960s. But we have also sought to learn crucial lessons from those previous efforts, for example—this was a point made by several hon. Members—the fact that previous new town initiatives did not always embed long-term stewardship into their development and the detrimental consequences that has had for those locations.
As the House will know, to progress the next generation of new towns, the Government established an independent new towns taskforce within months of taking office. That taskforce, chaired by Sir Michael Lyons, with Dame Kate Barker as his deputy and eight other highly regarded expert members drawn from across the built environment sector—I pay huge tribute to all their work in producing their final report—was given a clear mandate: to make recommendations to Ministers on the location and delivery of new towns, with the objective of supporting and unlocking economic growth, as well as making a significant contribution to meeting housing demand in England.
The Government made it clear that the taskforce should consider not only large-scale stand-alone new communities of the type Tempsford might be, but urban extensions and urban regeneration schemes that would work with the grain of development in a given area. We specified that each of the new settlements should contain at least 10,000 homes, but made clear that we expected a number to be far larger in size. We also commissioned the taskforce to ensure that any proposals would deliver
“well-connected, well-designed, sustainable and attractive places where people want to live and have all the infrastructure, amenities and services necessary to sustain thriving communities.”
Let me be clear, and hon. Members are right to have raised this: success on those criteria will be integral to the success of the programme as a whole.
Last September, the Government published the final report of the taskforce, as well as their initial response to that report and immediate next steps. In that initial response, the Government warmly welcomed all 12 of the locations recommended by the taskforce on the basis that, prima facie, each has the clear potential to deliver on the Government’s objectives. We also made it clear that Tempsford, Crews Hill in Enfield and Leeds South Bank look particularly promising to us as sites that might make significant contributions to unlocking economic growth and accelerating housing delivery. We are determined to get spades in the ground on at least three new towns in this Parliament—I stress the words “at least three”, because three is not the limit of our ambition. I think the shadow Minister incorrectly assumed that it will be just the three locations we have cited as promising. We are determined to deliver at least three, but we are prepared to progress work on a far larger range of locations if that proves possible.
As the House will be aware, we are now in the process of conducting a strategic environmental assessment to better understand the environmental impacts of new town developments in the locations recommended by the taskforce, as well as refining the scope of the programme more generally. Again, I want to stress that no final decisions on locations will be made until the SEA concludes and that the prioritised locations could change as a result of that process.
To respond directly to the shadow Minister’s point, we intend to consult on the programme alongside the completed SEA report in the coming weeks. The feedback to that consultation will inform final decisions on the locations we intend to adopt, as well as other matters such as how we allocate funding between sites and how we define and support new town locations in planning policy. When we are at the point of making decisions, we will publish a comprehensive response to the taskforce’s final report.
Hon. Members have raised a number of specific points in today’s debate, which I will respond to as fully as I can within the constraints of the ongoing SEA and programme scoping process. The hon. Member for North Bedfordshire (Richard Fuller) and the Liberal Democrat spokesperson, the hon. Member for Taunton and Wellington (Gideon Amos), raised the matter of local housing need and how housing targets interact with our new towns programme. We have been clear that our starting assumption was that new towns should deliver over and above the targets produced by the standard method, not least because we expect construction of the new towns that move forward as a result of this programme to begin in earnest only towards the end of the Parliament. However, I have been reflecting on this matter—not least in response to representations made by hon. Members—and I want to ensure that when we come forward with our final position on LHN, it is fair and consistent across the country and provides the necessary incentives for communities to want to see new towns come forward.
The Chair of the Housing, Communities and Local Government Committee, my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi), and other hon. Members raised the issue of affordable housing. I assure the House that we are not walking back or watering down our commitments on affordable housing. We have been very clear that new towns should have a range of housing types available, including adequate proportions of genuinely affordable homes.
It is worth stressing that the taskforce endorsed the Government’s commitment on affordable homes in its final report—it was a Government gold standard to aim for a target of 40% affordable housing. The taskforce was very clear in its final report that it endorsed that target and that it wanted to see 40% as a minimum, with half of those being social rented homes. We desperately need social rented homes, which is why that is such a priority for the Government.
The taskforce clearly said that where viability makes achieving that 40% target challenging, the Government should look to meet the requirement through grant funding, which is something the Government have to consider as we scope the programme, in particular in locations with low land values, where meeting that affordable number will be more challenging. Again, we will bring forward further detail on that and the other place-making principles in the taskforce’s final report after the environmental assessment and consultation, when we can provide hon. Members and the public more widely with more detail.
My hon. Friend the Member for Vauxhall and Camberwell Green also referred to delivery models. The Government agree with the taskforce that the preferred model for new towns should be the development corporation model. I think the House well understands the benefits that come with that. There are, of course, a range of development corporation types, including centrally led, mayoral and even locally led development corporations —it all depends on the location of the town, its devolution settlement and the capacity and capability of the delivering authorities. Again, we are assessing which delivery vehicle options are most appropriate to individual locations and will come forward with further information on that point in due course.
Several hon. Members raised the issue of funding, challenging me to make it clear why there has not been more detail on funding and why there is not a dedicated pot of funding for new towns. It is because the funding required for new towns in this spending review period will vary according to the needs of the places that the taskforce has recommended and that we ultimately adopt through the scoping process.
I want to make it clear to hon. Members, however, that the delivery of new towns will be backed by funding across the Government’s landmark housing programmes, such as the £39 billion social and affordable housing programme and the hundreds of millions of pounds of grants that are available through our national housing delivery fund for land and infrastructure investment; there is also the additional capital funding that will be managed by the new national housing bank, which will invest in house building across the country. Even though there was no specific new towns fund announced in the Budget, there are funding sources to draw upon.
Gideon Amos
The Minister is always very generous with his time. Can I press him a bit further on whether the Treasury has ruled out the long-term loans that were there for the post-war new towns programme?
Matthew Pennycook
I will come on to talk about financing in more detail, in particular the options that we are considering, but I am afraid that the hon. Gentleman will, again, have to wait for the publication of the SEA report and the programme that will go out to consultation. He and other hon. Members, as well as their communities and the neighbouring communities to the sites proposed for adoption, will then be able to feed into that process more widely. Long-term funding is available in this spending review period and going forward, because many of these propositions are for new, large-scale communities that will have to be built out over decades, in some cases.
I will touch on two or three other issues. Most importantly, several hon. Members raised the theme of public engagement. What the taskforce heard through its call for evidence and engagement with local leaders and local areas—the Government were kept up to date with that, as Sir Michael Lyons reported to me regularly on the taskforce’s work, as the House would expect—was that there is a huge appetite for new new towns to come forward. There are lots of parts of the country that would desperately welcome a new town.
I recognise, however, that in other areas, particularly in small villages such as Tempsford, there is trepidation about what may come and there are questions that residents want answered. In some cases—my hon. Friend the Member for Macclesfield (Tim Roca) has been forthright and honest about this—there is outright hostility and objection to the proposed locations. We have met and had several conversations about his particular case, and I assure him that I recognise the strength of feeling in his community. His residents can be in no doubt that he has conveyed the strength of feeling about that location very forcefully to me.
The taskforce’s report is clear that existing communities should be a key part of any new town development; community engagement is one of its core recommended place-making principles. The Government are working closely with local leaders as part of the scoping process of the programme and building our evidence base to understand the impacts of potential new town locations. As I have said, we will carry out the appropriate assessments and public consultations before any final decisions are made about locations. I must stress—we have been candid about this fact from the outset—that ultimately, decisions on new town locations will be made in the national interest.
Chris Curtis
I thank the Minister for being generous with his time and for reinforcing the Government’s strategic direction, which I think most of us agree with. As we move on to the next stage, many of the local council leaders who he has spoken about feel like there is friction and frustration in the communication between them and the Department, with the Department making it feel like they are bidding for the money. Will he meet local council leaders to reset that relationship so that it can be more constructive in the next stage of the process?
Matthew Pennycook
My hon. Friend made the same points when I appeared before the Select Committee earlier this week. I have taken them on board and I am happy to look at what the Department can do to ensure that there is a constructive relationship in each instance where the Government are seeking to build the evidence base. I certainly do not recognise, however, that it is the Government’s intention to go out to local areas and ask them to bid in to the programme. We want to work with local communities and local leaders to better understand and assess the proposition in each case.
I want to address two further issues. First, on financing, all the lessons suggest that once development is under way on new town sites, the long-term increase in the value of land can be captured and reinvested. Several hon. Members made that point forcefully, and the hon. Member for Taunton and Wellington is correct that the three waves of new towns programmes each repaid the investment that was ploughed into them up front. We know that, and the taskforce recommended that we should explore a range of options, including taxation, in the financing model—for example, we are exploring the role that tax increment financing might play in the new towns programme, as was mentioned by the Select Committee Chair.
Lastly, I want to address the important theme of stewardship, which several hon. Members raised. We welcome all the taskforce’s recommendations on place-making and other issues that will be pertinent in the years ahead as we take the programme forward. On stewardship, the taskforce recommended, rightly in my view, that a long-term stewardship model should be in place from the outset and that it should include clear governance and funding structures to manage and maintain communal assets. In that way, we can learn the lessons from the earlier waves of new towns and get things right for this new programme.
To conclude, the Government’s new town programme, in the Government’s view, provides a once-in-a-generation opportunity to fundamentally reshape the delivery of large-scale new communities and, by delivering them, to boost economic growth and productivity, and make a significant contribution to meeting housing need in England over the coming decades. The Government remain resolute in their determination to bring forward the next generation of new towns. We will work tirelessly across Government and with delivery partners and local communities to ensure that they are, in the words of the taskforce, not just places to live, but places to live well, and places for people.
I am grateful to my hon. Friend the Member for Cumbernauld and Kirkintilloch for securing and opening the debate, and to other hon. Members for taking part. I know that hon. Members will take me at my word when I say that I look forward to further engagement with Members across the House as we advance the programme in the months and years ahead.