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Clause 5 - Modification or discharge of affordable housing requirements

Part of Growth and Infrastructure Bill – in a Public Bill Committee at 10:45 am on 27th November 2012.

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Photo of Nicholas Boles Nicholas Boles The Parliamentary Under-Secretary of State for Communities and Local Government 10:45 am, 27th November 2012

May I finish? The right hon. Gentleman explained his point of view, and I am genuinely trying to tease this out.

There is no market element to the development, so there is no cross-subsidy towards the affordable part of the scheme. I therefore fail to see how a change in market circumstances could have any effect on the viability of that affordable element. In the more normal cases that we will come on to—no doubt, we will debate them thoroughly—in which a commercial element provides a cross-subsidy to an affordable one, one can at least understand the logic of the argument that if the commercial element is no longer as valuable and does not make the expected profit, the subsidy is no longer affordable. However, in this case, there is no cross-subsidy or market element, so how can the change in market circumstances affect the viability of the scheme?