Budget Resolutions and Economic Situation

Brandon Lewis Excerpts

Friday 20th March 2015 Commons Chamber

[Hilary Benn]

That really takes the biscuit—trying to allege that somehow the Government are counting properly. The fact is that before the last election, the Prime Minister said that it is

“a disgrace that in the fifth biggest economy in the world…we have people homeless, people sleeping on the streets”.

I agree with him. It is a disgrace and people should hold him to account for his shocking record.

We shall deal with the housing crisis only if we have a comprehensive plan. We have one—the most comprehensive in a generation—in the form of the Lyons review, which we will implement from day one of a Labour Government. We will make housing a national priority for capital investment. We will work with housing associations and councils to make it easier to build council houses, building on the changes we made to the housing revenue account.

We need more firms to be building. Thirty to 40 years ago, two thirds of the homes in this country were built by small and medium-sized builders; that proportion is now less than a third. Ask small builders what the problem is and they say, “I can’t get access to land and I can’t get access to finance.” We will introduce a help to build scheme, which will allow small and medium-sized builders to get lower-cost bank lending, supported by Treasury guarantees. We will encourage local authorities and others to make more innovative use of public sector land, investing in it as equity instead of selling it to the highest bidder, because that will also help us to deliver more affordable homes.

We will use Treasury guarantees and financial incentives to support the building of garden cities, and we will ensure that every council has a local plan. The Minister of State, the hon. Member for Great Yarmouth (Brandon Lewis), said that it is not necessary for every council to have a plan, but I think it is the responsibility of every local authority in England to have a local plan. Why would someone seek to be elected to an authority, or to be its leader, if they were not going to draw up a plan for the future of their community that included how they will meet the housing needs of the people who elected them?

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

Has the right hon. Gentleman looked through the details of the builders finance fund, which deals with this issue? Why does he not trust local councils to represent local people with a local plan driven by local people, for local people, instead of the top-down approach that failed for 13 years?

[Hilary Benn]

It is very simple: the Minister and I have a different view. I think every local authority should have a local plan. To be perfectly honest, I cannot understand why a local authority would not want a local plan, given the structure of the national planning policy framework. I think that is an obligation. The Minister and I disagree. He is entitled to his view and I am entitled to mine.

--- Later in debate ---

[Hilary Benn]

My hon. Friend is absolutely right. As we have heard in this debate, the problem is most acute in London. The consequences of not building sufficient affordable homes are being felt in many ways, such as in the number of people who are privately renting, in higher rents that people cannot afford and in the housing benefit bill. Ultimately, it is a self-defeating approach.

One problem is that the process of house building has been far too passive for local authorities in many parts of the country. They identify the land and then hope that someone will come along with a proposal. The Lyons review is about creating the means—the tools—for local authorities. I bet Ministers wish that they had applied their minds and come up with a report like the Lyons review.

[Brandon Lewis]

Will the right hon. Gentleman at least acknowledge that as a result of trusting local people with local and neighbourhood plans, a record number of some 250,000 homes were given planning approval last year, which is way beyond what Labour was achieving? Why does he not just trust local people like we do?

[Hilary Benn]

As the hon. Gentleman is well aware, I am a strong supporter of neighbourhood planning, and I have said so from this Dispatch Box on many occasions. He will just have to wait until his Government manage to complete more homes in one year than we managed in any one of our 13 years before he stands up and says, “Our record is better than yours”, because his record is much worse than ours.

[Brandon Lewis]

I appreciate the right hon. Gentleman being so generous with his time. To be fair, Labour finished off with 85,000 homes in its last year—the lowest level since 1923—and we have delivered some 500,000 homes in the last few years, so he really should think again.

[Hilary Benn]

The hon. Gentleman is, of course, referring to the consequences of a global recession. [Hon. Members: “Ah!”] Well, it was a global recession. The Secretary of State made specific promises about what the Government were going to do and they have comprehensively failed.

The Lyons review says to communities, “In return for taking responsibility for building the homes that you need, we will give you the powers that you need when you identify sites.” I have listened to debates in this House in which Members, particularly Government Members, have said, “We don’t understand it. We’ve identified sites, but the developers come along and say, ‘I don’t fancy building there. It’s not viable for me. I’m going to put in a planning application for that greenfield site over there.’” Up and down the country, that is happening. It is a great frustration for local authorities and citizens, because if they identify sites, the deal in return has to be that that is where the development will take place. If we are just dependent on the big house builders, we will never get to the figures that we need and it will undermine the public consent that, we all agree, is fundamental to making progress on house building.

We must say to local authorities, “Here’s a range of tools that you can use to ensure that the kind of homes you want get built in the places you have identified and go to the people who need them.” That is why the one other thing that we will do is to give local authorities a planning power to say that in housing growth areas a percentage of the new homes that are built for sale should, in the first instance, be reserved for local first-time buyers. If we do that, we will turn quite a few nimbys into yimbys, because they will realise that their son or daughter, or their neighbour’s son or daughter, will have the chance to get one of those houses.

If we are to get to the target that we have set of 200,000 homes a year by 2020—I say to Ministers that surely their experience over the past four years has taught them that we will not do it by trying to put a bit more petrol into the old house building engine and cranking it up—there has to be a fundamental change in the way the house building market works.

Let me turn to economic evolution and growth. I acknowledge what the Secretary of State has done with deals for some cities—it would be churlish not to—but there is an unanswered question: if he and the Government are so committed to devolution, why has progress been so slow, patchy and piecemeal? Manchester aside, why have such limited powers been offered to a small number of large cities. Why, as the Local Government Chronicle put it yesterday, has DCLG

“almost seemed peripheral, a bystander to the devolution debate”?

Why has Lord Kerslake, now free from the responsibilities of office, said—again in the Local Government Chronicle—that

“it was only well into its fourth year that the government woke up to the benefits of devolution”?

I suspect there is plenty more where that came from. Why has the right hon. Gentleman stepped aside while the Chancellor and Deputy Prime Minister have had a row about whether powers can be devolved and whether we need a metro mayor? Perhaps he is not actually in charge of the policy.

What about the great counties of England? Until the Chancellor got up on Wednesday and finally adopted Labour’s policy on 100% retention of business rate income growth, which he said he would apply to Cambridge and Greater Manchester, the counties of England had frankly been ignored. The Secretary of State will be only too well aware of how angry his colleagues in the counties have been at his failure to stand up for them. It was noticeable last year that at the meeting of the County Councils Network—the great annual gathering of county councils—not a single DCLG Commons Minister could manage to clear their diaries to turn up to address what was mainly their party colleagues.

It is not a very long journey to Marlow—about an hour in the ministerial car—and I think the real reason is what happened to the Secretary of State the previous year at the 2013 conference. LocalGov.co.uk reported it thus:

“Mr Pickles received a hostile reception at the conference…During questions, the Tory leader of Leicestershire, CC Nick Rushton, asked the secretary of state: ‘Why are you always so rude to us?—

I am sure the Secretary of State remembers that well—

“It’s about time you spoke up for us in Government.’”

I sympathise with the Secretary of State because with friends like that who needs us on the Opposition Benches? It is the unfairness that makes people angry. The truth is that his Conservative colleagues in the counties know that they will get a better deal from a Labour Government than they have got from the Tory Government, and the same is true for the city regions.