Planning Reform: Economic Growth
7. What steps she is taking with Cabinet colleagues to help increase economic growth through reforms to the planning system.
In the spending review, we put significant money into building more houses as part of our commitment to build 1.5 million homes during the course of this Parliament. The Planning and Infrastructure Bill is currently making its way through the House of Lords, but more than 600 amendments have been tabled to it, mainly by peers from Opposition parties. The Labour party and this Government back the builders, whereas the Opposition parties back the blockers. They are stopping young people getting on the housing ladder, stopping renewable energy being built and stopping the transport infrastructure that we desperately need to be built. Instead of opposing and tabling amendments, the Opposition parties should back that Bill so that we can get Britain building.
I have been banging the drum for some time now that Ilford is the best place to live, and with four Elizabeth line stations, that has never been more true than now. Barking and Dagenham council and Redbridge council are both capitalising on ambitious regeneration plans, like the developments at Billet Road and Padnall Lake. What are the Government doing to encourage businesses to seize on this investment by making investments of their own, backing Ilford, its community and its economy?
I thank my hon. Friend for everything that he is doing to champion Ilford South and to bring more investment into his local community. It is great to have Labour councils working with a Labour Government to bring investment to local communities through housing and, crucially, through infrastructure—the schools and the doctors’ surgeries—that go alongside that new housing, so that we build not just homes but communities.
As the Chancellor tries to cut through the bureaucratic red tape around planning outlines, can she undertake that, if successful over the course of the next six to 12 months, she will share that success with the other regions and nations in the United Kingdom, so that we can all benefit from simplified planning procedures, which will bring benefits for all our constituents?
Over the summer, I had the opportunity to spend some time in Belfast, where I visited Thales, the defence manufacturer, and Studio Ulster, where I saw some of the fantastic work in the creative industries. I also had the opportunity to talk about some of the blockers to growth. We need to better reform our planning system, not just in England but in Northern Ireland and Scotland as well, so that we can get things built in Britain again. People are crying out for hope. Growth offers hope and investment offers hope, and that is what this Government offer too.
I call the Chair of the Treasury Committee.
I welcome my right hon. Friend’s commitment to the hope of decent homes. In my constituency, children and families are leaving in droves and schools are closing because of a lack of properly affordable housing. She knows, as I do, that whatever we do in planning, without the skills that we need to build those homes, there will be a block there. Is she working with the new Secretary of State for Work and Pensions, who now has the skills brief, to ensure that we are investing in those skills and super-turbocharging the people who can help to build those homes?
Just this September, new construction colleges have started opening around the country to train up the next generation of builders, plumbers and engineers, so that we can build both the housing infrastructure and the other infrastructure our country desperately needs. We have reformed the apprenticeship system, so that we can have more foundation apprenticeships for a shorter period of time to quickly get people the skills they need. Not requiring people to have a grade C or equivalent in maths and English to access an apprenticeship programme is also so important for young children who maybe did not get the grades they wanted in their GCSEs, but deserve a chance of a good apprenticeship and a job offering a decent wage.
There is planning permission in this country for 900,000 properties that are as yet unbuilt, so maybe the issue is not that the planning laws are too restrictive but that they are not prescriptive enough. In my constituency, the average income needed to buy the average house is £71,000 a year—11 times the average income in my communities. Is it not right to ensure that, if the Chancellor changes planning law, we have to build more genuinely affordable homes in communities like ours, rather than giving developers carte blanche?
That cannot be an excuse, though, for blocking developments and blocking people who own land from building more homes on that land. In the end, the simple law of supply and demand means that if we are not building homes, prices will continue to be unaffordable for the hon. Gentleman’s constituents. We are not allowing builders to build carte blanche and he absolutely knows that. We put the biggest investment into the affordable homes programme that has ever been seen, because it is important that the homes being built are affordable for families in his constituency and in mine. We must not just always block things, whether they be airports, housing or other infrastructure; we have got to back the builders.
I call the shadow Minister.
The Government want to drive growth through house building, but even before the departure of the Deputy Prime Minister, they were predicted to miss the 1.5 million new homes target by half a million. How does the Chancellor and her team of tax raisers think a 3,000% hike in the builders tax, adding £28,000 to the cost of building a new home, will help to deliver the new homes that young people need? Rather than consult on it, why will she not rule out this damaging tax rise?
I think Opposition Members will recognise that building companies have strongly welcomed the reforms we have made to get the country building, and they are very much against the Conservatives, the Liberal Democrats and others in the House of Lords opposing the Planning and Infrastructure Bill, which could have been given Royal Assent by now without that opposition. Instead of scaremongering about something that is being consulted on, the shadow Minister might want to get on and back the positive things that the Government are doing. Finally, I pay tribute to the former Deputy Prime Minister, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), for the amazing work she did to get housing on the agenda to build the 1.5 million homes that this country desperately needs, and for being an inspiration for so many people from working-class backgrounds. I applaud her efforts and her work.