Budget Resolutions
I cannot begin without congratulating the hon. Member for Holborn and St Pancras (Sagal Abdi-Wali) on her speech. I know her constituency well, and she is a distinguished former colleague of mine on Camden council. I am here today to speak about council housing. The Government’s priorities are still not right on this issue, despite the Chancellor explicitly naming in his Budget speech the loss of more than 2 million council homes since the 1980s and the Prime Minister’s focus on rough sleeping. We have millions of people waiting in overcrowded homes, rented homes that they cannot afford and temporary accommodation that councils cannot afford. That goes well beyond a crisis. What have the Government given us in this Budget? We have new money, with £1.5 billion added to the pot for councils to bid on for affordable home building. In paragraph 5.4 of the Budget, the Chancellor says that that will help to build potentially 10,000 more real council homes over the next four years. That is not terrible, but in paragraph 5.5 in the same document we get £4.7 billion for the Government’s new version of the Help to Buy scheme. The Chancellor explains that that will support private, profit-making developers to sell an extra 20,000 new builds. I presume that is without expecting developers to cut their prices or profits—it is possible that they will increase them. I note that the Government plan to collect some small fees from the house builders, but I assume that they have been agreed with them. I also note that one impact of the previous Government’s Help to Buy scheme was to keep house prices rising out of many people’s reach and to boost profits and profit margins for developers, as the recent Government evaluation of the scheme concludes. Can Ministers tell us whether £4.7 billion for loans that they do not expect to be paid back for many years to support 20,000 extra private sales by developers really represents better short-term or long-term value for the public purse than £1.5 billion to enable 10,000 new build council homes? That is three times more funding out of the door for just twice as many new homes. Even under the Government’s broad house building target, is that really the best use of public money? It may not be that simple, so I ask the Government to give us their workings on these choices, especially if I am wrong in my assumptions. Can they commit to publishing, for comparison, the Green Book assumptions and appraisals for each of these investment decisions, and the time it takes for money to move out of their loan scheme and back into it? We need much more investment in real council housing. We need “buy the supply”—the funding of acquisitions. I cannot see why the Government are not putting together an equity loan scheme for councils to help them buy the supply, instead of going with another help to buy scheme, just as the last Conservative Government did.