Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 6 November 2012.
Pat Glass
Labour, North West Durham
11:30,
6 November 2012
What recent discussions he has had with the Secretary of State for Communities and Local Government on fiscal incentives to encourage the construction of affordable housing.
Danny Alexander
The Chief Secretary to the Treasury
The Chancellor is at the G20 meeting in Mexico, so I have been asked to reply.
On
Pat Glass
Labour, North West Durham
I thank the Minister for that answer, but we have lost 120,000 construction jobs since 2010 and we are building 100,000 fewer affordable homes than even this Government tell us we need each year. When the Minister reflects on the choices he had before him, does he still believe that slashing the affordable housing grant by 60% at the same time as giving a massive tax cut to millionaires was the right thing to do?
Danny Alexander
The Chief Secretary to the Treasury
In fact, the decision we made to move to a new affordable rent model to get more homes for the money available to us—the auction was over-subscribed, with 170,000 properties in the affordable sector being built under that model—was a good use of very limited resources, and a much more efficient use of them than the previous Government achieved.
Richard Bacon
Conservative, South Norfolk
Has the Chief Secretary had a chance to look at the report by the National Self Build Association, “Lessons from International Self Build Housing Practices”, and does he agree that if we were to do more to help self-builders, we could help solve many of our housing problems, as well as increase local council tax revenue and stamp duty for the Treasury?
Danny Alexander
The Chief Secretary to the Treasury
I have not had a chance to study that report, but, in the light of my hon. Friend’s question, I certainly will. He will know that the new national planning policy framework specifically encourages self-build, and many of the planning system reforms the coalition Government have pushed through will help self-builders to achieve their aspirations.
Meg Hillier
Labour, Hackney South and Shoreditch
The Chief Secretary spoke about the bidding for affordable housing, but the well has now run dry. Housing associations in my area have no more money to spend on affordable housing, and the birth rate in my area is increasing. What will the Chief Secretary do to ensure that in future people in Hackney and around the country have affordable homes to live in?
Danny Alexander
The Chief Secretary to the Treasury
I want to see more affordable homes built. That is why this Government are the first Government to put in place Government guarantees for housing associations; that was never done by our predecessors. The Infrastructure (Financial Assistance) Act 2012, which received Royal Assent last week, will enable housing associations to benefit from £10 billion of Government guarantees, lowering their cost of finance and enabling them to build more homes. That has been widely welcomed in the housing association sector, including by the National Housing Federation. I think the hon. Lady should welcome it, too.
Andrew Stunell
Liberal Democrat, Hazel Grove
I greatly welcome the progress that has been made, but it is equally important to ensure that we have good construction standards for new housing. May I also impress upon Ministers the importance of supporting the zero-carbon homes target?
Danny Alexander
The Chief Secretary to the Treasury
Let me start by paying tribute to my right hon. Friend for the work he did at the Department for Communities and Local Government, especially his leadership of the empty homes programme, which is making a major contribution to bringing homes back into use. I understand the importance of the zero-carbon homes programme. The building industry has argued for that, and I hope we will make progress on it soon.
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