Asked by Lord Greaves To ask Her Majesty’s Government what is their
assessment of the impact of the United Kingdom leaving the European
Union on the provision of housing that people can afford. The
Parliamentary Under-Secretary of State, Department for Communities
and Local Government and Wales Office (Lord Bourne of...Request free trial
Asked by
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To ask Her Majesty’s Government what is their assessment
of the impact of the United Kingdom leaving the European
Union on the provision of housing that people can afford.
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My Lords, the Government are committed to achieving an
ambitious EU exit deal and building the homes that this
country needs. In pursuing its housing policies, DCLG
engages widely with stakeholders across the housing
sector. The Government are on track to raise housing
supply, by the end of this Parliament, to its highest
annual level since 1970 and then to 300,000 per year on
average by the mid-2020s.
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My Lords, I wish the Government the best of luck in that
endeavour and will be happy to welcome it when it
happens. Only yesterday, the Federation of Master
Builders issued the result of a survey of small and
medium-sized construction firm members, in which
three-quarters of them said that it would have a negative
impact on the health of their business if any of their EU
workers returned to their country of origin. The figure
for the value of these workers was much higher as well.
What are the Government doing to make sure that workers
from European Union countries working in the construction
industry—many of them building houses—do not stay away,
as is being suggested, even after this Christmas?
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My Lords, the noble Lord is right to highlight the
importance to the construction sector of workers from the
EU; they constitute about 18% across the country,
although obviously it is higher than that in some parts
of the country and certainly in London. The Government
are of course very much aware of this and it is part of
our negotiations. The noble Lord will be aware that we
have made a fair and serious offer to protect the rights
and entitlements of EU nationals, which is all part of
making sure that we extend a welcome to those people who
are part of the fabric of our life and who are very
important to our economy.
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My Lords, I declare an interest, as on the register, as
chairman of a bank. Does my noble friend agree that the
decision by the European Banking Authority to increase
the cost of capital for banks that lend to small and
medium-sized builders from 100% to 150% has added hugely
to the cost of building houses, and that, once we have
left the European Union, the Bank of England will be free
to set rules that reflect the interests of our economy
and the policy of Her Majesty's Government to encourage
more housebuilding?
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My Lords, my noble friend is, of course, right about the
adverse effect that the decision to raise those interest
rates will have on the construction sector in the United
Kingdom and elsewhere, and he is right to say that the
Bank of England will have increased freedom once we leave
the EU. However, of course, banks have to compete in an
international environment as well.
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My Lords, as Christmas is upon us we all think of those
who are homeless, as was raised in the other place just
yesterday. Last year, the European Investment Bank
invested £1 billion in social housing projects in the UK.
That made it the largest investor in social housing here
at home. Yet now Article 50 has been triggered, it is
saying that that investment will stop. What plans do the
Government have to replace that investment, and how will
the Minister address the plight of the homeless this
Christmas and in the future without that investment?
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My Lords, first, the noble Baroness is right that our
thoughts, particularly at this time of year, are very
much with the homeless and rough sleepers, which very
much presents a problem in the United Kingdom and
elsewhere. She is also right that the European Investment
Bank invests significantly in this area, but other banks
do too. We have obviously invested a lot in terms of our
own domestic budget recently—with the social impact bond,
for example, which is having an effect. I spoke yesterday
to the noble Lord, , about an initiative
that he is involved in in a parallel way. So there is a
lot going on. But the noble Baroness is right to
highlight the importance of ensuring that we plug the
gaps of some investment that will not be there in future.
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My Lords, does not my noble friend’s views on the housing
market contrast somewhat with the threats we were given
during the referendum campaign from the then Chancellor,
backed by the Governor of the Bank of England, that
interest rates were going to soar if we voted out—they
have gone down—and that housing prices would drop like a
stone, whereas they have gone up? Are we not actually
rather blessed by Brexit, rather than the reverse?
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My Lords, the Government are focused resolutely on the
future as to how we ensure that we get a very good deal
that is very much in the interests of the UK and the deep
and special partnership with the European Union that we
seek. As he will know, negotiations have turned a corner;
we seem to be on a very firm footing to ensure that we
get that deep and special partnership with the European
Union, and negotiations go on on that basis.
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My Lords, can I bring the Minister back to the question
that my noble friend asked about the £1 billion that we
get from the European Investment Bank? Unfortunately, he
did not answer the question. How is he going to replace
it, and what can we expect the mechanism to be for that
additional social housing that we so badly need?
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My Lords, the noble Baroness will know that it is not
quite as simple as she makes it sound. It is not £1
billion that comes from nowhere; it comes in relation to
the fact that we pay into the European Union as well as
take out. So I remind the noble Baroness gently that it
is not quite as simple as she makes it sound.
I did answer the question by saying that there was
obviously a gap that needs plugging. We are doing that in
terms of measures in the Budget that she will be aware of
on homelessness. We have £1 billion committed to tackling
homelessness and rough sleeping. That is a significant
measure to tackle a deep-seated problem. She will also
have heard me say that this is not just an issue for
government; it is an issue for local authorities, our
partners and for individuals.
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My Lords, I am told by social housing associations in
Yorkshire that the big building companies are deeply
reluctant to take on apprentices and train our own
people. They find it cheaper and easier to recruit
directly from eastern Europe and that does not get in the
way of the bonuses they offer their executives. Given
that the big building companies are now extremely
profitable, what can the Government do to bring pressure
on them to increase the number of apprentices they take
on and to train our own workers?
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My Lords, the noble Lord raises a very interesting point.
I have not seen the example that he mentioned. However,
it is the case that we need to increase the take-up of
apprentices up and down the country, which I think is
happening in parts of the country. He will also be aware,
of course, that in the Budget we took measures to ensure
that there is movement towards encouraging small and
medium-sized building enterprises rather than just the
large builders. That element of competition will help
address the problem that he raises.
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