Matthew Pennycook

It is a pleasure to close this debate for the Government. I congratulate my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) and thank her for securing the debate, and I thank the Backbench Business Committee for granting the House an opportunity to debate this incredibly important matter. I was struck, in what was a strong opening speech by my hon. Friend, by her emphasis on people and the ability of “planning done properly” to change lives. That is a hugely important statement and a principle that guides the Government in all areas. I thank all hon. Members for contributing to the debate. We had a series of thoughtful, passionate and in many cases personal contributions, and I think the most references to concrete animals of any debate in my nearly 11 years in this place. It has been a thoughtful and important debate, rich with history. The post-war new towns programme was the most ambitious town building effort ever undertaken in the UK. It transformed the lives of millions of working people by giving them affordable and well-designed homes in well-planned and beautiful surroundings. The 32 communities it created are now home to millions of people, including a number of hon. Members who made contributions this afternoon. I stress that the Government will continue to invest in the regeneration of our existing new towns. My hon. Friend made reference to some of the investment currently being made in hers. My hon. Friends the Members for Telford (Shaun Davies), for Rugby (John Slinger), for Welwyn Hatfield (Andrew Lewin) and for Stevenage (Kevin Bonavia) all made the case for what is happening, and what they want to see happen in the years ahead, to further revitalise the places they represent. Alongside those efforts, we are determined to bring forward the next generation of new towns, as per our manifesto commitment. In so doing, we have taken inspiration from the proud legacy of the 1945 Labour Government who, through the New Towns Act 1946, initiated the first post-war wave of new town building, as well as the subsequent waves in the 1960s. But we have also sought to learn crucial lessons from those previous efforts, for example—this was a point made by several hon. Members—the fact that previous new town initiatives did not always embed long-term stewardship into their development and the detrimental consequences that has had for those locations. As the House will know, to progress the next generation of new towns, the Government established an independent new towns taskforce within months of taking office. That taskforce, chaired by Sir Michael Lyons, with Dame Kate Barker as his deputy and eight other highly regarded expert members drawn from across the built environment sector—I pay huge tribute to all their work in producing their final report—was given a clear mandate: to make recommendations to Ministers on the location and delivery of new towns, with the objective of supporting and unlocking economic growth, as well as making a significant contribution to meeting housing demand in England. The Government made it clear that the taskforce should consider not only large-scale stand-alone new communities of the type Tempsford might be, but urban extensions and urban regeneration schemes that would work with the grain of development in a given area. We specified that each of the new settlements should contain at least 10,000 homes, but made clear that we expected a number to be far larger in size. We also commissioned the taskforce to ensure that any proposals would deliver “well-connected, well-designed, sustainable and attractive places where people want to live and have all the infrastructure, amenities and services necessary to sustain thriving communities.” Let me be clear, and hon. Members are right to have raised this: success on those criteria will be integral to the success of the programme as a whole. Last September, the Government published the final report of the taskforce, as well as their initial response to that report and immediate next steps. In that initial response, the Government warmly welcomed all 12 of the locations recommended by the taskforce on the basis that, prima facie, each has the clear potential to deliver on the Government’s objectives. We also made it clear that Tempsford, Crews Hill in Enfield and Leeds South Bank look particularly promising to us as sites that might make significant contributions to unlocking economic growth and accelerating housing delivery. We are determined to get spades in the ground on at least three new towns in this Parliament—I stress the words “at least three”, because three is not the limit of our ambition. I think the shadow Minister incorrectly assumed that it will be just the three locations we have cited as promising. We are determined to deliver at least three, but we are prepared to progress work on a far larger range of locations if that proves possible. As the House will be aware, we are now in the process of conducting a strategic environmental assessment to better understand the environmental impacts of new town developments in the locations recommended by the taskforce, as well as refining the scope of the programme more generally. Again, I want to stress that no final decisions on locations will be made until the SEA concludes and that the prioritised locations could change as a result of that process. To respond directly to the shadow Minister’s point, we intend to consult on the programme alongside the completed SEA report in the coming weeks. The feedback to that consultation will inform final decisions on the locations we intend to adopt, as well as other matters such as how we allocate funding between sites and how we define and support new town locations in planning policy. When we are at the point of making decisions, we will publish a comprehensive response to the taskforce’s final report. Hon. Members have raised a number of specific points in today’s debate, which I will respond to as fully as I can within the constraints of the ongoing SEA and programme scoping process. The hon. Member for North Bedfordshire (Richard Fuller) and the Liberal Democrat spokesperson, the hon. Member for Taunton and Wellington (Gideon Amos), raised the matter of local housing need and how housing targets interact with our new towns programme. We have been clear that our starting assumption was that new towns should deliver over and above the targets produced by the standard method, not least because we expect construction of the new towns that move forward as a result of this programme to begin in earnest only towards the end of the Parliament. However, I have been reflecting on this matter—not least in response to representations made by hon. Members—and I want to ensure that when we come forward with our final position on LHN, it is fair and consistent across the country and provides the necessary incentives for communities to want to see new towns come forward. The Chair of the Housing, Communities and Local Government Committee, my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi), and other hon. Members raised the issue of affordable housing. I assure the House that we are not walking back or watering down our commitments on affordable housing. We have been very clear that new towns should have a range of housing types available, including adequate proportions of genuinely affordable homes. It is worth stressing that the taskforce endorsed the Government’s commitment on affordable homes in its final report—it was a Government gold standard to aim for a target of 40% affordable housing. The taskforce was very clear in its final report that it endorsed that target and that it wanted to see 40% as a minimum, with half of those being social rented homes. We desperately need social rented homes, which is why that is such a priority for the Government. The taskforce clearly said that where viability makes achieving that 40% target challenging, the Government should look to meet the requirement through grant funding, which is something the Government have to consider as we scope the programme, in particular in locations with low land values, where meeting that affordable number will be more challenging. Again, we will bring forward further detail on that and the other place-making principles in the taskforce’s final report after the environmental assessment and consultation, when we can provide hon. Members and the public more widely with more detail. My hon. Friend the Member for Vauxhall and Camberwell Green also referred to delivery models. The Government agree with the taskforce that the preferred model for new towns should be the development corporation model. I think the House well understands the benefits that come with that. There are, of course, a range of development corporation types, including centrally led, mayoral and even locally led development corporations —it all depends on the location of the town, its devolution settlement and the capacity and capability of the delivering authorities. Again, we are assessing which delivery vehicle options are most appropriate to individual locations and will come forward with further information on that point in due course. Several hon. Members raised the issue of funding, challenging me to make it clear why there has not been more detail on funding and why there is not a dedicated pot of funding for new towns. It is because the funding required for new towns in this spending review period will vary according to the needs of the places that the taskforce has recommended and that we ultimately adopt through the scoping process. I want to make it clear to hon. Members, however, that the delivery of new towns will be backed by funding across the Government’s landmark housing programmes, such as the £39 billion social and affordable housing programme and the hundreds of millions of pounds of grants that are available through our national housing delivery fund for land and infrastructure investment; there is also the additional capital funding that will be managed by the new national housing bank, which will invest in house building across the country. Even though there was no specific new towns fund announced in the Budget, there are funding sources to draw upon.