Grant Shapps
Main Page: Grant Shapps (Conservative - Welwyn Hatfield)(13 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
5. What assessment he has made of the effects of reductions in formula grant funding on local authorities in the most deprived areas.
The Minister for Housing and Local Government (Grant Shapps)
Authorities in the most deprived areas will, thanks to the banded floors, receive a smaller reduction in formula grant than others. We have given greater weight to relative needs in the formula grant, and our new transition grant will make sure that no council has a spending power reduction of more than 8.8%.
Steve Rotheram
If fairness is at the heart of this Government’s decision making, as clearly stated in the coalition agreement, why are the most deprived areas being hit the hardest? Given that the Minister wrongly stated that the most deprived area—Liverpool—did not receive a 30% cut to Supporting People funding, when can Liverpool expect to see a recalculation based on the 1% national average, which would result in an £11 million improvement in its settlement?
Grant Shapps
Here is something for Labour Members to take into account: one cannot take money away from authorities that are not getting it in the first place. Of course, the biggest spenders, even if we use percentages in the same region, are going to feel the impact in a different way. Liverpool, for example, still receives £764 a head, whereas my authority, by contrast, receives £229 a head.
Luciana Berger
Will the Minister congratulate Liverpool city council, which is making £100 million-worth of efficiency savings? Does he agree with the independent efficiency expert Colm Reilly of PA Consulting who said that, given the huge cuts in Government funding, the council cannot make the scale of savings necessary without affecting front-line services?
Grant Shapps
As I have said from the Dispatch Box before, nobody says that this is going to be easy. The deficit—the size of the debt—left to the country by Labour makes these reductions inevitable. However, Liverpool is latterly doing something about it; the problem is that it did not plan for this far enough in advance. Had it done so, it would have been in the same position as Trafford and other local authorities that are carrying out these reductions without some of the pain now experienced in Liverpool.
Barbara Keeley (Worsley and Eccles South) (Lab)
I used to be a councillor in Trafford, and I think the Minister should reflect on the fact that the deprivation there is nothing like it is in Liverpool, Manchester and Salford—there is no comparison. The areas I have mentioned have higher levels of poverty and unemployment and much greater inequalities in health than other areas. Despite that, Ministers have chosen to inflict the deepest, the most swingeing and front-loaded cuts on those deprived areas. Will the Minister comment on the letters from 131 Labour council leaders and 88 Liberal Democrat leaders, many from deprived areas, who are united in their anger at the unfairness of the cuts and at the constant political attacks on them by Ministers, which we have heard again today?
Grant Shapps
The hon. Lady refers to Trafford, where she used to be a councillor, but that council receives much less money from the Government than do other councils, including Liverpool. The idea that they are in the same position is untrue. In addition, the hon. Lady should know that we have protected the level of reduction for some of the most needy councils by having banded floors, which means far smaller reductions in the most needy areas, while the transition grant means that no area can be affected by more than 8.8%. A range of other measures, including an increase in the deprivation index from 73% to 83%, also apply.
Mr Philip Hollobone (Kettering) (Con)
6. What steps he is taking to reduce the incidence of antisocial behaviour in social housing.
The Minister for Housing and Local Government (Grant Shapps)
I recently announced a package of proposals to strengthen the hands of social landlords and tenants, so that they can take swift and effective action to tackle antisocial behaviour.
Mr Hollobone
All too often, the rights of very badly behaved social tenants seem to be given more weight by the courts than the alarm and distress that their poor behaviour causes to fellow tenants in the wider community. Will the Minister agree to meet representatives of Kettering borough council, of which I am a member, to discuss how the problem can be tackled?
Grant Shapps
I am grateful to my hon. Friend for raising this important issue, of which I am aware. The amount of time that it takes to evict antisocial tenants is a severe problem, which is why the measures that I announced on 11 January included a proposal for mandatory grounds for evictions when a case has occurred before. I should be happy to meet my hon. Friend.
Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
Let me first draw attention to my interests, as declared in the Register of Members’ Financial Interests.
It is quite right for the Government—and all of us—to take action to protect tenants against antisocial behaviour on the part of those who make their lives a misery, but do the Government not recognise that their imposition of harsh housing benefit cuts and steep increases in rents for social housing, and their termination of security of tenure for new social lettings, will inflict misery and insecurity on many more tenants in the future?
Grant Shapps
That is an entirely inaccurate portrayal of what is happening. For one thing, as the right hon. Gentleman well knows, the rent policy was set by the last Government in a deliberate attempt to merge housing association and council rents. Ministers in past Governments, including some in the last Government, recognised that the lazy consensus that houses should be given to people for ever, even if their circumstances changed, was long past its sell-by date. It is ironic that so many Opposition Members are prepared to fight and die in a ditch for a policy of lifetime tenures that was introduced by Margaret Thatcher.
Bob Russell (Colchester) (LD)
Antisocial behaviour is not confined to those in social housing. Neighbours from hell may also be owner-occupiers. What action can be taken to deal with the many landlords of buy-to-let properties who do not care a damn about their tenants, let alone their neighbours?
Grant Shapps
The big difference between the public and private rented sectors is that because private sector leases tend to be for six months or more, it is much easier for landlords to terminate them. However, my hon. Friend is absolutely right to highlight the difficulty experienced in the private sector, and I am keen for the Government to assist in any way they can.
Mr Speaker
I am greatly obliged to the Minister. I call George Hollingbery.
Mr James Gray (North Wiltshire) (Con)
10. What criteria are used to determine the number of houses which should be built in North Wiltshire constituency?
The Minister for Housing and Local Government (Grant Shapps)
Local authorities and communities should plan for sustainable development in their area, taking a visionary and strategic approach to be responsive to the market using robust evidence of the number of homes required.
Mr Gray
Across England, developers seem to be taking advantage of what they believe to be a policy vacuum to press ahead with large-scale planning applications. In my area for example, there are applications for 5,000 homes around Chippenham, the whole of Swindon seems to be moving westward to engulf some of the villages there, and there are applications for 280 homes in Malmesbury. Does the Minister agree that local people should decide how many houses they want and where they should be, taking account of homelessness and all that of course, but looking in areas such as mine at preserving the green belt, the countryside and our way of life?
Grant Shapps
My hon. Friend is absolutely right, of course: taking account of the housing needs survey so that homelessness and affordable housing are addressed, the numbers should be set through a process of local decision making. The days of top-down targets, which led to the lowest rate of house building since 1923, are over. That is official, because I can tell Opposition Members that just a couple of days ago the National House-Building Council announced that there had been an 18% jump in the number of home starts—the applications to start building homes. Bottom-up is starting to work.
Duncan Hames (Chippenham) (LD)
My constituents have a keen interest in house building in the North Wiltshire constituency. The Under-Secretary, the hon. Member for Bromley and Chislehurst (Robert Neill), referred to “incremental” growth, which would certainly be more welcome to them than the urban extensions we have experienced in years past. Will the Minister confirm that decisions on house building should be based on meeting local housing need rather than catering for population movements from elsewhere in the country?
Grant Shapps
The idea that Ministers can sit in Whitehall and somehow dictate these tractor-like targets on five and 10-year plans has finally ended, I am pleased to say. My hon. Friend will be relieved to know that deciding where housing should go will now be an entirely local decision, prompted by the new homes bonus and other mechanisms.
Jonathan Lord (Woking) (Con)
11. What steps he is taking to address under-occupation of social housing to promote social mobility.
The Minister for Housing and Local Government (Grant Shapps)
In January, I announced a £13 million programme to address under-occupation by offering support to tenants who wish to move. Our radical social housing reforms will also involve introducing for the first time a national home swap programme.
Jonathan Lord
I am grateful to the Minister for that reply. In my constituency there are a large number of families in overcrowded and cramped housing waiting for a suitably sized home, and the wait for larger homes can be several years. All the while, of course, there are people living in oversized social housing that is no longer needed. Apart from the better home swap scheme that he mentioned, what more can be done to encourage those who are reluctant to downsize, in order to free up that housing?
Grant Shapps
My hon. Friend is absolutely right. There is an extraordinary 430,000 people living in homes with two or more spare bedrooms, while nearly a quarter of a million people are living in overcrowded circumstances. None of this makes sense, and we have just announced a scheme whereby people are helped to move where they want to. There is no question of anyone being required to move, but assistance with utility bills and bank accounts being moved, for example, turns out to be one of the most useful things available, particularly for elderly people who are interested in moving home.
Mr Andy Slaughter (Hammersmith) (Lab)
On reflection, would the Housing Minister like to withdraw his comment that social tenants are “given” their homes? In fact, social tenants enter into a contractual relationship and pay their rent like any other tenants. Does that not show the contempt the Tory party has for them, particularly as he was given his seat by Lord Ashcroft?
Grant Shapps
On reflection, the answer is no. The truth of the matter is that homes are allocated to people who are in need because they are in need. The idea that just because at one point in their life they were in need, they should continue to have that home and be able to hand it on to another generation, lives, I am afraid, with a past generation. Even the shadow Secretary of State, when she was in my position, accepted the point that housing reform was greatly overdue.
Matthew Hancock (West Suffolk) (Con)
12. What steps he is taking to remove unnecessary spending on administration within his Department.
Nicky Morgan (Loughborough) (Con)
13. What estimate he has made of the level of funding from the new homes bonus which will be allocated to Charnwood borough council.
The Minister for Housing and Local Government (Grant Shapps)
A provisional allocation was made to Charnwood borough council the week before last, which I announced, of £644,387 under the new homes bonus.
Nicky Morgan
I thank the Minister very much for his reply. There is a real need for affordable and family-sized housing in my constituency and on the part of Charnwood borough council. How is the new homes bonus going to help councils to provide such housing?
Grant Shapps
The great thing with the new homes bonus is that it is a lot more flexible regarding the type of housing required. It will pay more where the homes are family-sized and therefore attract a higher council tax band; but in addition—I am sure that Opposition Members will welcome this—every affordable home built will receive a flat addition of £350 per year, the equivalent to about a third extra over and above the new homes bonus on other houses.
Alison Seabeck (Plymouth, Moor View) (Lab)
I should start by declaring my indirect interests, in line with those already mentioned by my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford).
I am sure that the people of Charnwood listened with interest to the Minister’s response, but they will not have heard him admit that Kensington and Chelsea get 52% more in funding per new home than the constituency of the hon. Member for Loughborough (Nicky Morgan), and 91% more than Hull. He also conveniently forgot to mention that the council’s revenue support grant would have to be cut to fund the new homes bonus, with money transferring from deprived areas to wealthy ones. So those areas with the greatest need for housing will not get it, while green fields in affluent areas will. Will the Minister tell us by how much Charnwood council’s and other councils’ funding will be cut to fund this policy in years 4, 5 and 6?
Grant Shapps
I am afraid that the hon. Lady may have misunderstood the way this policy operates, despite the fact that I published it the week before last. The amount that each area gets per home is exactly the same—in fact, I have equalised it across the country—so just because council tax is higher in Kensington and Chelsea there is no question of it being any different from Charnwood or anywhere else; the funding is based on the average in each different area. In point of fact, nearly £1 billion of funding has been provided for the new homes bonus which is not top-sliced off the other sums. In later years, when the money is indeed top-sliced from the formula grant, the bonus will be a positive incentive to get on and build homes—the Labour party used to encourage that.
Heidi Alexander (Lewisham East) (Lab)
14. What recent assessment he has made of the likely change in the provision of services by local authorities as a result of reductions in levels of Government funding for local authorities.
Zac Goldsmith
I welcome the principle behind the new homes bonus, but if the level is set too high or if local authorities become too dependent on it, could it not become a perverse incentive for overdevelopment?
The Minister for Housing and Local Government (Grant Shapps)
My hon. Friend is pushing at an interesting point. It will be for democracy at a local level to decide what happens. His constituents can rely on him and their own wherewithal to decide to vote for the party that will provide the right level of housing rather than overdevelopment.
Helen Goodman (Bishop Auckland) (Lab)
T3. Earlier this morning we heard that HSBC is paying its top banker £5 million. By chance, that is exactly the amount of money needed in my constituency to complete the Decent Homes programme. Will the Minister for Housing meet me to discuss how we might make that happen, so that 1,000 people can live in decent homes?
Grant Shapps
Just before the recess I announced a series of spending pledges for the Decent Homes standard which added up to £2.1 billion. I am happy to meet the hon. Lady to discuss how best to take the project forward in her constituency.
Sheryll Murray (South East Cornwall) (Con)
T2. Does my right hon. Friend agree that in a diverse area such as South East Cornwall where we have everything from vibrant seasonal coastal car parks, to town centres that need the support of low car parking charges, to small villages that were built before the car and where residents rely on community car parks to park their vehicles, that community ownership and management is better than a holistic one-size-fits-all charging system imposed by a council and covering the whole county?
Mike Freer (Finchley and Golders Green) (Con)
T7. In my constituency I have Brent Cross Cricklewood, the largest regeneration scheme outside of the Olympic park. Can the Minister confirm that, when council tenants or arm’s length management organisation tenants move into regeneration projects, their tenancies will continue unbroken?
Grant Shapps
Yes, my hon. Friend is absolutely right: there is no chance of, or way in which, a social tenancy can be broken or changed for anybody already in council or housing association homes.
Stephen Timms (East Ham) (Lab)
T9. Once the financial year has started, will the Secretary of State give us a report on the reduction in local authority employment over the past year?