Grant Shapps
Main Page: Grant Shapps (Conservative - Welwyn Hatfield)(13 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Iain Wright (Hartlepool) (Lab)
2. What recent discussions his Department has had with representatives of voluntary organisations providing housing services for local authorities on the potential effects on that sector of future local government funding plans.
The Minister for Housing and Local Government (Grant Shapps)
My Department has consulted widely with the voluntary sector in relation to the provision of housing services for local authorities, and we have listened carefully to the points they have raised. I can tell the hon. Gentleman that we have, for example, protected the homelessness grant, providing £400 million; protected the funding for disabled facilities grant; and minimised reductions to the Supporting People programme over the spending review.
Mr Wright
The voluntary groups in my constituency, such as Manor residents association, together in partnership with Housing Hartlepool and Hartlepool borough council, provide much-needed services such as handyman services, financial advice to tenants and tackling antisocial behaviour. Given that they derive their income from local authorities and the registered social landlord, and given yesterday’s announcement of a real-terms cut of 26% in local authority budgets and the cutting by half of the social housing budget, can the right hon. Gentleman tell the voluntary groups where they will get their money from and how these services can be maintained?
Grant Shapps
The hon. Gentleman will know the backdrop to this, which is that when he was a Minister the Government literally ran out of money, and not just money from then taxpayers but money from the future, so some steps had to be taken. Despite that, however, we have still managed to protect all those different budgets, particularly that for Supporting People, which will be very important to his local authority: it is almost certainly where those voluntary services are getting quite a lot of their funding. We also heard the Chancellor announce yesterday a £100 million transition fund. I can further tell the hon. Gentleman that I am today announcing £12.25 million for local authorities and the voluntary sector to help households affected by changes in housing benefits. There is a whole package of services there. We absolutely recognise the need to protect the most vulnerable; it is a shame that his Government did not do the same as they spent all the money.
Caroline Flint (Don Valley) (Lab)
That was very interesting from the Minister, but it is clear that yesterday the Chancellor announced devastating cuts to house building and local government funding. Is it not the case that while across Whitehall Departments average cuts are 19%, town halls up and down the country will lose 28% of their funding?
Grant Shapps
I start by welcoming the right hon. Lady to her new position and to our exchanges across the Dispatch Box.
We have already covered the backdrop. We know that the financial crisis was incredibly sharp and, as has been said, if the Opposition do not have a plan they cannot criticise the plans that have been put in place. Everybody in the country will want to know what the right hon. Lady’s plans would have been. However, as it happens, and as she mentions house building as part of her critique, let me tell her that in the 13 Labour years, there was a net gain of just 14,000 affordable homes. We will build more affordable homes in every single year of our Government than Labour did in all its 13 years put together.
Caroline Flint
I thank the Minister for his words of welcome. There may come a time when we agree across the Dispatch Box, but today is not that day. The Chancellor was right about one thing yesterday: the cuts are the Government’s choice, and their choice is to dump the cuts on local communities. I am afraid the Secretary of State and his team have failed to stand up for local councils. Can the Minister tell me how many jobs in the public, private and voluntary sectors will be lost as a result of the Secretary of State’s failure?
Grant Shapps
It is really no good not having a plan and then criticising the Government when they come up with a serious plan to rescue this country and this economy from the rocks that we were surely headed towards when the right hon. Lady was on the Government Benches. We have set out our plans in great detail, and we look forward to Her Majesty’s Opposition getting round to setting out some of theirs.
Mike Freer (Finchley and Golders Green) (Con)
3. What plans he has to introduce incentives to encourage the building of new homes.
The Minister for Housing and Local Government (Grant Shapps)
I am pleased to announce that the new homes bonus will commence in April 2011, which means that local authorities that grant planning permission now will benefit from it next year. I can also announce that the bonus will last a total of six years, facilitating the building of many more homes in every area of the country.
Mike Freer
I thank the Minister for that answer. Will he also explain how the new affordable rent scheme will encourage development?
Grant Shapps
Absolutely. Until now there has been only one way to get into social housing, and for most people that way has not led to their getting a social home. That is why housing waiting lists doubled under the last Government from 1 million to nearly 2 million. There was only a single offer, and not enough homes were being built. We have introduced affordable rent, which means that rents can be up to 80% of the market rent. That is a more viable option, and it means that less money can produce more homes and that new investment will go into providing homes for the most needy in society, who were so badly let down by a Government who produced only a 14,000 net gain in affordable homes during a 13-year period in office.[Official Report, 27 October 2010, Vol. 517, c. 5MC.]
Graham Jones (Hyndburn) (Lab)
Will the Minister not accept that the new homes bonus scheme is in chaos? Can he explain what the incentive will be for local planning authorities, which according to the policy that the Government have set out will receive only 15% of the receipts, with 85% being returned to the shire authorities outside unitary areas, which are not involved in the planning process? Will the incentive be 15%, or will it be greater?
Grant Shapps
I am sorry that the hon. Gentleman is so confused about this. It is actually a very simple scheme, unlike ones such as the local housing delivery planning grant, which his Government used. That was so complex that literally nobody understood it or had any idea how much money would come in. Our scheme is simple. For every home built, there will be match funding for six years at the actual band price at which it is built. By the way, if it is affordable housing, 125% of receipts will be provided. We will consult on the split between district and upper-tier authorities, but something like 80% is likely to go to the planning authority. That will be a massive incentive for this country to get out and build the homes that Labour failed to build during its 13 years.
Gordon Birtwistle (Burnley) (LD)
Can the Minister confirm that housing market renewal pathfinder funding will continue in the short or medium term, to enable the removal of all unwanted and uninhabited properties in the pathfinder areas? The acquisition and removal of those properties will clear inner areas of our towns and cities to enable the new affordable homes that we desperately need.
Grant Shapps
I am very grateful to the hon. Gentleman. I have visited pathfinder schemes on many occasions, and some were very good and some had some problems. We will complete all the committed HMR schemes, and we will then roll the funding up into the regional development fund to continue the good work.
Alison Seabeck (Plymouth, Moor View) (Lab)
The Minister can try, but he really should not duck responsibility for his own policies. When he announced this particular scheme in the summer, he told councils, “Build now, develop now, and you’ll get substantial benefits in the future.” Can he confirm that 70 local authorities have cancelled developments, 160,000 homes have not been built, the house builders are taking the Government to court and his scheme has been kicked into the long grass of 2011? Just how many homes will be built in the next 12 months?
Grant Shapps
May I start by welcoming the new shadow Housing Minister to her post? I hope that she does it for as long as I did—I shadowed many different Front Benchers. In the autumn, she made an interesting statement. She said that too many people thought her Government had not listened to them about housing. The difference is that we will certainly listen, and the new homes bonus will reward all the planning applications that have already been made where homes have yet to be built, so it will include all those homes. It will provide a far more compelling incentive than the local planning housing delivery grant ever did. The Conservative party has a proud record of house building. We have already heard that the previous Government managed a net addition of just 14,000 affordable homes in 13 years.
George Hollingbery (Meon Valley) (Con)
8. What guidance his Department provides to local authorities planning large housing developments in their area on consultation with residents of neighbouring local authority areas likely to be affected.
The Minister for Housing and Local Government (Grant Shapps)
Local authorities must follow the regulations on preparing their local plans and consult widely with local people affected by proposals. They must also ensure that that public consultation has real meaning and that it is taken into account when putting local plans together.
George Hollingbery
I am grateful for that answer and I should like to push the issue of cross-border co-operation a little further. Under the Government’s new homes bonus scheme, it is reasonable to suppose that some local authorities will be tempted to build large settlements at their boundaries, where the disbenefit accrues to local authorities across the boundary. Does the Minister have any plans to ensure that the income flowing from the new homes bonus will flow across local authority boundaries where appropriate?
Grant Shapps
I am grateful to my hon. Friend for that question. First, we are introducing a duty to co-operate, so that one authority has to be talking to its neighbour in order to get its local plan signed off. Secondly, I can confirm today that the flow of new money from the new homes bonus will be some £900 million, even before top-slicing in the later years, so it will be a significant amount. In that context, there is nothing to prevent one local authority from speaking to its neighbour and saying, “Look, we’d like to build these homes here, but we recognise that this would have some impact on you there. We will come to a deal with you, and if we’re both happy it will go into our local plan.”
Clive Efford (Eltham) (Lab)
When a local authority has decided to take the money from the homes bonus, little though it is, at the expense of a neighbouring local authority or in the face of local opposition, whose views will take precedence—the local authority taking the money, local people, or the neighbouring local authority?
Grant Shapps
I am amused that the hon. Gentleman thinks that billions of pounds is little money: it shows how the Opposition thought about taxpayers’ money when they were in power. It is a large amount of money and it will make a significant difference. The answer—although I know this is a strange concept to Opposition Members—is something called democracy. It is called asking voters what they want and putting a local plan in place that reflects the local population’s wishes, not what the Minister wants here in Whitehall, as happened under the old regional spatial strategies.
David Tredinnick (Bosworth) (Con)
Is my hon. Friend aware that his guidance seems to be being ignored by the Planning Inspectorate, which is insisting on making the five-year housing supply paramount in its decisions, causing great concern in Burbage and Groby in my constituency as representations are made and ignored?
Grant Shapps
It is enormously important that the Planning Inspectorate notices that there has been a change of Government and therefore changes in policy. If it is not entirely certain, we will have the localism Bill next month and I hope that that will clarify the matter once and for all.
Mr Russell Brown (Dumfries and Galloway) (Lab)
9. What discussions he has had with the Secretary of State for Business, Innovation and Skills on the effect on levels of employment in small businesses of reductions in his Department’s funding to local government.
Julian Sturdy
Can the Minister outline the powers invested in local authorities to restrict the spread of houses in multiple occupation in areas where large numbers of such houses are causing concern to local communities?
The Minister for Housing and Local Government (Grant Shapps)
My hon. Friend is right to point out that there are instances in which HMOs cause problems for local communities. Indeed, it happens in my own constituency.
On their last day in office, the last Government introduced a blanket authority requiring HMO planning permission to be obtained everywhere in the country before the use of a property could be changed. On 1 October, we altered the arrangement to ensure that it could be zoned as and where a local authority needed it to be.
Diana R. Johnson (Kingston upon Hull North) (Lab)
T3. In the light of the 60% cuts in the social housing budget that were announced yesterday, will one of the Ministers tell me whether the private finance initiative scheme in Orchard Park and the stock transfer in Bransholme will go ahead?
Grant Shapps
Now that the spending review is out of the way, we shall be able to announce which PFI projects will be able to continue.
Duncan Hames (Chippenham) (LD)
T2. Council tax payers in my constituency have been dismayed by golden goodbyes for council bosses since the move to one council for Wiltshire. Just four staff shared nearly £2 million in remuneration in their final 12 months in post. Will the Secretary of State bring into line the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations 2006, which have made that scandal possible?
Mr Chuka Umunna (Streatham) (Lab)
T6. Last week, the Government announced that in London the responsibilities of the Homes and Communities Agency would be passed to the Mayor. What assurances can the Secretary of State give that this decision is not being used as a ruse to deprive London of much-needed investment in affordable housing? What extra funding will the Mayor of London get to enable him to fulfil these new responsibilities?
Grant Shapps
We think that, in line with localism, it is very important that money goes directly to the place where it is required. The way in which the Homes and Communities Agency operated in London was a great example of how not to do it, because we ended up with the chief executive of the national HCA, a London chief executive for the HCA and the elected Mayor having to work almost against each other. There is no point in that, because we can simplify things by having the money go direct. The amount of funding will now be resolved, with the spending review out of the way.
Mr Peter Bone (Wellingborough) (Con)
T4. The abolition of the Standards Board for England is greatly welcomed across the country, but it will have to be in the local government Bill. At the moment, there is a rush of new complaints, many of which are frivolous and malicious. Is there any way in which those can be stopped now, by stopping referrals to the Standards Board for England?
Mr Dennis Skinner (Bolsover) (Lab)
Last year, the Minister for Housing in the Labour Government allocated money to replace more than 100 council pre-fabs because the foundations were collapsing. Earlier this year, this Government decided to stop that money even though it had been allocated. All those pensioners and disabled people are waiting for those new homes. In this brave new world of £6.5 billion, can I get on the phone to Bolsover district council now and tell them that the Tarran bungalows are to be replaced?
Grant Shapps
The hon. Gentleman will be delighted to know that out of the £6.5 billion of money going to social housing, £2.1 billion is going to continue with the decent homes programme. I can also give him a further undertaking: we will ensure that, unlike my immediate predecessor, I do not raid that budget—as he did last July—to take some of the money and put it into a re-announced announcement elsewhere in the budget.
Mr David Lammy (Tottenham) (Lab)
May I ask the Secretary of State, on the invitation of Haringey council, whether he would come to Tottenham and spend an evening in one of my estates? There is now real concern about homelessness in Haringey with the cut to housing benefit, the desire to take social housing rents to the same level as those in the private sector and the cut of 28% to local authority grants. Will he come to Tottenham and spend an evening with the community?
Grant Shapps
The question relates to the problem of homelessness, which is close to my heart. I can reassure the right hon. Gentleman that there is £12.25 million, much of which will go to London authorities, to help with transition. I know that he has 4,500 non-decent homes left within his arm’s length management organisation stock that the new £2.1 billion will assist. On behalf of the Secretary of State, I shall be happy personally to accept his invitation and come and spend an evening in the estates with him. I look forward to it.
Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
Will the Secretary of State tell the House whether he believes that house prices will rise or fall over the next six months? If they fall, would he see that as a good thing or a bad thing?
Grant Shapps
House prices will fluctuate. [Interruption.] It is obvious. We do not want to see house prices doubling in a period of just 10 years as happened under the last Labour Government, locking generations out of being able to get a foot on the housing ladder. This Government want to help people on to the housing ladder, not exclude them.
Christopher Pincher (Tamworth) (Con)
Last Friday, local volunteer groups in conjunction with Tamworth borough council launched the Tamworth community action network, which enables local volunteers to use council office space to provide volunteer services and recruit more volunteers. Will Ministers commend this local initiative, and will they consider visiting when time allows?
Julie Hilling (Bolton West) (Lab)
Does the Minister agree that changes to housing benefit, secure tenancies and the raising of rents will take us back to the “Cathy Come Home” era?
Grant Shapps
No, I do not agree with the hon. Lady and I will tell her this. The last Government used to claim there were just 440 people sleeping on our streets. That is not true. When we came into office we conducted a proper count, and the right figure is 1,247. Hiding the problem is not solving it; this Government are protecting the most vulnerable in society, and that includes the homeless.