Florence Eshalomi

I thank the Backbench Business Committee for finding time for this important and urgent debate. The Ministry of Housing, Communities and Local Government is responsible for some of the biggest areas that impact all of us every single day, and I welcome the ambitious drive of the Deputy Prime Minister and her Ministers to deliver in those areas. For too long, we have simply failed to build the homes that people need: the affordable homes for young people stuck at home or in the unaffordable private rented sector; the family homes for people whose kids have outgrown sleeping in the same room; and the social rent homes to get people off the social housing waiting lists and give the 164,000 homeless children a safe and permanent roof over their head. I welcome that the Department is addressing head-on the financial distress that many local authorities are in. Last year, a record 30 local authorities received so-called exceptional financial support, which allows them to sell long-term assets or take out loans just to pay for their day-to-day costs. Due to the pressures they are under, some councils now have no choice but to hollow out their services in order to deliver vital services for residents. How can that be sustainable in 2025? How can it be fair that local people ultimately pay the price when their councils cannot fix up their town centres and have to cut vital services like bin collections just to make ends meet? If the Department is going to get to grips with these dual crises and deliver on its ambitions, its plans to address them must be fully funded. When we look at the estimate and the recent spending review, there is good news for affordable housing and social housing, although I do have some questions for the Minister, which I will come to. On local authority finances, however, the Select Committee remains concerned that no new money is on the way. The spending review promises “an average overall real terms increase in local authority core spending power”, but only if local authorities increase council tax by the maximum allowable under legislation, passing the buck on to councils and raising the taxes we all pay in our local area. If the Department is serious about ensuring everyone has access to an affordable home, we must end the decades of failure to build the homes we desperately need. That is why I welcome the Government’s ambition and commitment to deliver 1.5 million new homes during this Parliament, but evidence to our Select Committee from the sector has been clear: if the Government want to increase house building towards delivering more than 300,000 homes a year and reaching their target, social housing must be a substantial part of that mix. Ministers have said that the 1.5 million target is “stretching”, and the message we have heard from the sector is clear. In November, the Minister for Housing and Planning told us that, rather than a target of 300,000 homes per year over five years, “The trajectory is an upward one”. He said: “The precise curve of that trajectory is dependent on factors like… the spending review settlement”. We therefore warmly welcome the announcement in the spending review that the next affordable homes programme for 2026 onwards will be worth £39 billion. The estimate provides almost £400 million of uplift for the current affordable homes programme, which runs from 2021 to 2026. It is important that we continue to fund that if we are to reach the aim of 1.5 million new homes, but we need to start the building now, not towards the end of the decade. That is why I would be grateful to get some clarity from the Minister and the Department. Ministers have said they will publish a long-term housing strategy later this year, to set out how they will meet the 1.5 million target.