Oral Answers to Questions Debate

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Oral Answers to Questions

Alison Seabeck Excerpts
Monday 20th June 2011

(12 years, 10 months ago)

Commons Chamber
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Grant Shapps Portrait Grant Shapps
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The Chairman of the Select Committee is wrong to say that no research has been done into the scheme. Indeed, the impact assessment stated that it would increase house building starts and, as I have just said, there has been a 22% increase in house building starts in the first year of the policy. Let us compare that with the year before the policy was put in place, when house building under Labour was at its lowest level since the 1920s. There is therefore growing evidence that the new homes bonus is working rather well.

Alison Seabeck Portrait Alison Seabeck (Plymouth, Moor View) (Lab)
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I make my usual declaration of an indirect interest.

The new homes bonus is paying out taxpayers’ money but it is not delivering. Planning permissions fell by 17% on year for the first quarter. Let us not confuse that with starts, which took place as a result of investment by the previous Labour Government. The Town and Country Planning Association, the Campaign to Protect Rural England and the Royal Town Planning Institute are clear that the changes in the Localism Bill will enable developers to buy planning permissions. Are those professionals wrong?

Grant Shapps Portrait Grant Shapps
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The idea that one quarter can be judged against an entire year’s evidence is, of course, nonsense. The evidence for the entire year is that house starts are up by 22%. I would rather take a year’s figures than one quarter’s. We know that councils right across the country, including Labour councils, are welcoming the new homes bonus money, which is now starting to make a real difference. Yes, it is right for local authorities and local people to take fully into account the economic benefits of building more homes in their areas.