Oral Answers to Questions Debate

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Oral Answers to Questions

Lord Stunell Excerpts
Thursday 25th November 2010

(13 years, 5 months ago)

Commons Chamber
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John Pugh Portrait Dr John Pugh (Southport) (LD)
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8. What his policy is on the distribution of reductions to local authority funding over the comprehensive spending review period; and if he will make a statement.

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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We will announce our proposals for the local government finance settlement in the usual manner in due course.

John Pugh Portrait Dr Pugh
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It would be rational to accept that the size of the front-loaded cuts coupled with the council tax freeze in the first year will create a huge problem for even prudent local authorities, necessarily giving them less time, less flexibility and less chance of saving front-line services. Does he agree?

Lord Stunell Portrait Andrew Stunell
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No I do not. I draw my hon. Friend’s attention to the fact that we have proceeded at a rapid rate with de-ring-fencing and breaking down the silos between different funds coming to local councils, reducing the number from more than 90 to around 10. We are also putting large sums of money at the disposal of local authorities. I also want to draw his attention to the option that local authorities have of raising their council tax income by up to 2.5% and receiving a compensatory grant so that their residents do not have to bear that cost, thereby protecting residents and giving councils the opportunity to generate more revenue.

Chris Williamson Portrait Chris Williamson (Derby North) (Lab)
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The Treasury’s green book confirms that funding for local councils will be cut by 28% over the next four years, but the spending review framework document says that the Government will limit the impact of the reduction in spending on regions that are heavily dependent on the public sector. As we are all supposed to be in it together and in order to ensure fairness will the Minister confirm that the cuts faced by local councils will be based on their total budget requirement and not on their formula grant? As he knows, the formula grant accounts for up to 80% of the budget requirements of some councils and less than 20% of others.

Lord Stunell Portrait Andrew Stunell
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The hon. Gentleman is quite right that the picture is very complex. That is why when the settlement comes, he will see that the Government have responded to the points he has raised.

Michael Ellis Portrait Michael Ellis (Northampton North) (Con)
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9. What steps he is taking to reduce the number of squatters.

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Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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The Government will make it easier for communities to take on community assets through the community right-to-buy provisions in the localism Bill. Practical help is already available from the Government-funded asset transfer unit and from the Communitybuilders programme, and the big society bank will step in to help social enterprises and voluntary sector organisations early next year.

Esther McVey Portrait Esther McVey
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Does the Minister agree that the Government need to do more to empower communities to improve their local areas and take over amenities, such as community centres and allotments? What steps will the Government take to ensure that those initiatives are taken up in the forthcoming localism Bill?

Lord Stunell Portrait Andrew Stunell
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First of all, I commend Wirral borough council for setting up its own fund for the transfer of community assets and for making the launch of those much more feasible. I hope that other local authorities will look at that example.

The community right to buy will be a powerful option for neighbourhoods and community groups that want to take on assets, and that will be backed by money. The asset transfer unit and Communitybuilders, a project lasting through to 2014, will be there to provide support. I also want to make quite sure that the House understands that the big society bank will be there to assist as well.

Amber Rudd Portrait Amber Rudd (Hastings and Rye) (Con)
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16. What steps his Department is taking to return empty homes to productive use.

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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My hon. Friend’s question is well timed, as it is empty homes week. I am sure that there will be concern right across the House at the fact that there are currently 738,000 empty homes in this country and that more than 300,000 of those have been vacant for six months or more. They are a blight on the community and a waste of housing that we cannot afford.

The coalition agreement says clearly that we are planning to tackle the issue, and we have made the first steps. We intend to provide £100 million over the spending review period to bring empty homes back into use—that is a tripling of the money contributed by Labour in the last comprehensive review period. We are consulting on how the new homes bonus can also be used to bring more homes back into use.

Amber Rudd Portrait Amber Rudd
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In Hastings, more than 2,300 families are on the housing waiting list and there are more than 800 empty homes. Has the Minister considered whether there is any additional incentive that we can give to councils to try to bring the more difficult properties, which have been empty for more than two years, back to productive use, as against the slightly easier properties, which have been empty for six months?

Lord Stunell Portrait Andrew Stunell
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Every effort needs to be made by local councils. They have some statutory tools at their disposal—statutory improvement notices, enforced sales and the empty dwelling management orders. However, I hope that the fact that we are tripling the investment for bringing empty homes across the country back into use will give my hon. Friend some assurance that we are serious about the issue and will work with local authorities to deliver a much improved record.

Graham P Jones Portrait Graham Jones (Hyndburn) (Lab)
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I am glad that you have mentioned that there are 738,000 empty properties, many of them long-term empty. Can you give some quantitative indication of—

Graham P Jones Portrait Graham Jones
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Sorry, Mr Speaker. Can the Minister give a quantitative indication of the extent to which he hopes to reduce the figure over the period—100,000 or 200,000? By how much will he reduce it?

Lord Stunell Portrait Andrew Stunell
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Some £100 million is intended to assist in bringing back 3,000 empty homes into use, and that is direct financial support. I draw the House’s attention again to the impact that the new homes bonus can make in increasing that, and there are of course the statutory levers that local authorities should use to make sure that the blight of empty homes is reduced.

Stephen Metcalfe Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
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I welcome my hon. Friend’s remarks about the new homes bonus. However, will he go a little further and confirm that that bonus will be payable to local councils that bring empty properties back into use, so that councils such as Basildon and Thurrock can benefit from the measure?

Lord Stunell Portrait Andrew Stunell
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I draw my hon. Friend’s attention to the fact that this is a matter on which we are consulting. We have that intention, and I hope that he will write and encourage us to carry forward that proposal.

Annette Brooke Portrait Annette Brooke (Mid Dorset and North Poole) (LD)
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18. By what date he expects the residential property tribunals system for park home owners to be in full operation.

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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First, I congratulate my hon. Friend on her staunch work on behalf of mobile home owners. Subject to parliamentary approval, we expect residential property tribunals to begin hearing cases under the Mobile Homes Act 1983 in spring next year.

Annette Brooke Portrait Annette Brooke
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I very much welcome the Minister’s response. However, I am sure that he is very much aware that it will not address some of the appalling practices to which some park home owners are subjected. What further action will he set in motion?

Lord Stunell Portrait Andrew Stunell
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As my hon. Friend knows, I attended the lobby that she organised, and I have absolutely no doubt about the serious problem that residents face with a small minority of rogue landlords. We need to see how the Tribunals Service can deal with these complaints and matters. Certainly, we shall be looking very hard to see what progress we can make. The Minister for Housing and Local Government is looking at a range of measures that will help to combat the mismanagement and abuse that some residents face, and he will shortly make an announcement on his plans.

Geoffrey Robinson Portrait Mr Geoffrey Robinson (Coventry North West) (Lab)
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19. What estimate he has made of the change in number of first-time buyers in the housing market in the last 12 months.