Contribution
I had better make some progress.
That is the yardstick the Government should measure themselves against. I now come at last to how we might go about achieving this. The place to start, as we have already heard, is with plugging the gap. We must stop draining our stock of council houses, year on year. It is a fact of mesmerising absurdity that in the last year of the previous Conservative Government, there was a net loss of social housing in this country, as over 20,000 homes for social rent were lost to right to buy. I welcome the determination of Labour Ministers to reform the right to buy, and to ensure that more homes are built than lost, and I especially welcome the planned 35-year exemption for newly built properties. I urge the Government to bring forward the necessary legislation for those changes as swiftly as possible.
Next, we need further planning reform to empower our local authorities to drive forward a council housing renaissance up and down the land. We need new social housing targets, to make the delivery of council housing the urgent priority of every local planning authority. Ministers must bring together local authorities and charities like Crisis to create fairer rules for eligibility for social housing, so that homeless people are no longer unfairly excluded. We need to build on the welcome measures that Ministers have already brought forward on hope value, by allowing local authorities to disregard it entirely for the purposes of purchasing land to meet housing targets. That would not only make the provision of council housing on a vastly increased scale viable by ending the payment of inflated sums of public money to wealthy landowners, slashing an estimated 38% off the total development costs of a mass-scale building programme; it would also allow local authorities to capture the full uplift in land values associated with the delivery of their local plans, and to fund projects that combine high-quality council housing with improved space for nature and expanded public infrastructure.
We must also face up to the reality of serious constraints on construction capacity due to a workforce that is too small and an inadequate supply of key materials. If we are to have the hundreds of thousands of council houses that we need in order to swiftly tackle the housing crisis, the Government should ensure that the new strategic planning authorities created through devolution have tools at their disposal to direct available resources where they are needed most, even if that means putting limits on construction for private profit.
Of course, many of our local authorities will need substantial support to rebuild the capacity necessary for a major council house building programme. As Shelter has said, in trying to balance budgets after years of funding cuts, local authorities have been forced to shut down their building operations, transfer their council stock to housing associations or focus on building private homes for sale. We will only see the council housing that our country desperately needs if we reverse that trend.
Alongside making more low-interest loans available to councils through the Public Works Loan Board, the Government should raise the money needed to invest in a new generation of local authority planners, ecologists, designers and architects through a windfall tax on the largest property developers, which have dominated the market and enjoyed super-normal profits for too long.
On funding, the Government have already committed to a transformative £39 billion over 10 years for the new affordable homes programme. I will not try the Minister’s patience by calling for additional money today, but front-loading this investment and driving it primarily towards council housing could see us well on our way.
I recognise that, even with all that, matching the scale of council housing delivery overseen by Attlee’s Government is a daunting task, but in the context of the upcoming Budget and increasingly vociferous debates on the merits of a wealth tax, I will take this opportunity to briefly fly the flag for the comparatively straightforward proposal of a levy on multiple home ownership. With so many in our society unable to access suitable housing at all, requiring those who own multiple homes to contribute to the public coffers a small percentage of the value of their additional properties would be both fair and proportionate.
That leaves a final, concluding point. The case for more council housing and what it could deliver for our society is overwhelming in its own right, but even if we were to reduce ourselves to desiccated calculating machines, concerned only with economic statistics, the irrefutable fact is that we cannot afford not to invest in hundreds of thousands of new council houses over the coming years. A major council house building programme would deliver a huge counter-cyclical boost to economic activity in every region of the country. Alongside the vast savings to be made on the cost of temporary accommodation provided by councils, there would be knock-on benefits from secure decent homes: they would reduce costs right across the public sector, from the NHS to our schools. In short, it would be fiscally reckless not to invest in a new generation of council housing.
We all deserve a warm, safe and affordable home, where we can put down roots and have the safety and security to flourish and grow. It is our duty to make that a reality. Hundreds of thousands of families cannot afford for us to delay or go slow. Now is the time for the Government to live up to their heritage and provide a new era of council housing that transforms lives up and down the country.