News

13.05.16

Lord Kerslake warns social housing sums ‘don’t add up’ as Bill passes

The controversial Housing and Planning Bill, now Act after receiving royal assent yesterday, will put the brunt of paying for social housing on councils, Lord Kerslake has warned.

Lord Kerslake, president of the LGA and fervent critic of centrepiece elements in the Bill, added that the sums for paying for social housing in the Bill “simply don’t add up”, but conceded that he would not seek to add another amendment as the legislation passed the House of Lords on Wednesday.

He agreed with an amendment from Baroness Williams not to introduce a third amendment for like-for-like replacement of homes sold under Right to Buy with new housing, designed to increase the availability of social housing.

Lord Kerslake said he respected the authority of the elected House of Commons, which has rejected his previous amendments on the grounds that they affect financial decisions made by MPs.

However, he added: “It is now clear that some manifesto commitments come ahead of others. In the competing demands of funding the extension of Right to Buy and funding the one-for-one replacement—both manifesto commitments —replacement will come a very clear second. Local authorities will have to draw on their own very scarce resources if one for one has any chance of being delivered.

“It has also become abundantly clear that the sums simply do not add up. How otherwise could you explain the resistance to what was after all a very modest amendment—certainly not a wrecking one—other than that it was born out of this financial discrepancy?

“It became very clear in yesterday’s debate, by seeking to align the means with the ends, that the financial means are simply not there. However, that will be a debate for another time, and it will go on outside and inside Parliament.”

The Right to Buy extension in the Bill has been called “entirely speculative” by the Public Accounts Committee and housing charity Shelter has warned it could cost councils £26m a year.

Baroness Williams, under-secretary to the DCLG, who was responsible for the Bill, said that not allowing like-for-like replacement would increase “flexibility” in local planning and ensure housing was suited to community needs.

The Housing and Planning Bill, which gained royal assent yesterday, has been one of the most fractious in recent political history.

The Lords introduced key amendments including giving councils the power to decide what percentage of new developments consists of starter homes and when they will pilot new schemes to introduce competition in planning applications.

Labour peer Lord Beecham, who supported Lord Kerslake’s amendment, jokingly called it a “dreadful Bill” and said Baroness Williams would need “a relaxing weekend”.

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.

 

Comments

Mark   14/05/2016 at 11:08

Working in Social Housing I am already seeing a rise in the speculative purchasing of property. Daily I speak with Children of Pensioners who wish to purchase on behalf of the homr of their elderly mother or father, knowing full well that within 10yrs that property will be buy to let or sold on. This is the biggest property transfer from Public to Private in a generation. It's organised theft from the public purse.

Add your comment

 

related

public sector executive tv

more videos >

latest news

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

NSPCC: Working together to improve the support available for children who have been sexually abused

08/10/2019NSPCC: Working together to improve the support available for children who have been sexually abused

Hayley Clark, the acting head of development and impact at the NSPCC, talks about the significant gap in support services for children who have been sexually abused and the Ho... more >
read more blog posts from 'the raven' >

public sector events

events calendar

back

October 2019

forward
mon tue wed thu fri sat sun
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
4 5 6 7 8 9 10

featured articles

View all News