PM appears to reject warning that ditching 300,000-home goal will “make the recession worse”.
By Graeme Demianyk
23/11/2022
Prime minister Rishi Sunak during the ceremonial welcome for the state visit to the UK by South African president Cyril Ramaphosa.
KIRSTY WIGGLESWORTH VIA PA WIRE/PA IMAGES
A rebellion of more than 40 Tory MPs has reportedly delayed Rishi Sunak’s plan for a housebuilding target.
The prime minister was due to face the first major test of his leadership next Monday when MPs were set to vote on the flagship levelling up bill.
But Conservative backbenchers – including former cabinet ministers – have signed an amendment to the bill that would ban councils from taking housing targets into account when deciding on planning applications.
The government on Tuesday night appeared to pull the vote, blaming the congested parliamentary timetable, according to the Telegraph and i newspapers.
But Labour accused Sunak of “running scared of your own backbenchers”.
The rebels had been warned they will “make the recession worse” by scrapping the housebuilding targets.
The amendment is one of several proposed by former environment secretary Theresa Villiers that would bring wholesale changes to the planning system, including making it easier for councils to ban building on greenfield land and providing more incentives to develop brownfield sites.
Villiers’ proposals have been criticised by some, including 2019 Tory manifesto co-author Robert Colville, who said they would “enshrine ‘nimbyism’ as the governing principle of British society”.
Colvile earlier tweeted: “Up to 46 signatories now on the Destroy the Planning System and Make the Recession Worse Amendment 2022.”
But her supporters have insisted that they do not want to stop housebuilding, only give communities more say over where homes are built.
Support for the amendment scrapping housing targets has increased over the past week, rising from nine MPs on November 15 to at least 46 on Tuesday, including prominent figures such as former party leader Iain Duncan Smith and former cabinet ministers John Redwood, Chris Grayling, Damian Green, Wendy Morton and Priti Patel.
The Telegraph put the number of signatories at 50 on Tuesday night.
This would be enough to leave the government reliant on Labour votes to defeat the amendment.
Other amendments proposed by Villiers would see tighter restrictions on homes being converted into holiday lets, more financial penalties for failing to build once planning permission was granted, and allowing councils to take a developer’s character into account when deciding on a planning application.
Downing Street said Sunak was still committed to the government’s target of building 300,000 homes a year.
The prime minister’s official spokesperson said: “We want to work constructively to ensure we build more of the homes in the right places. That’s something that the department and the secretary of state are very focused on.
He added that the housing secretary, Michael Gove, would continue to discuss how the 300,000-home target was delivered.
Labour’s shadow levelling up secretary Lisa Nandy said: “This is a complete shambles. The government cannot govern, the levelling up agenda is collapsing and the housing market is broken. Pulling flagship legislation because you’re running scared of your own backbenchers is no way to govern.
“There is a case for reviewing how housing targets are calculated and how they can be challenged when disputed, but it is completely irresponsible to propose scrapping them without a viable alternative in the middle of a housing crisis.”
British economy to suffer biggest hit from energy crisis among G7, OECD finds
The royal exchange and the bank of England, London. Picture date: Thursday September 29, 2022.
LABOUR slammed “12 years of Tory failures on energy and economic security” today after warnings that worker shortages and “untargeted” energy support will see Britain’s economy contract more than any other G7 nation.
The Organisation for Economic Co-operation and Development’s (OECD) latest forecast suggests the economy is expected to shrink by 0.4 per cent next year and grow by just 0.2 per cent in 2024.
Germany is the only other country in the richest group of nations that is set to suffer a hit to gross domestic product (GDP) next year, with a 0.3 per cent decline, according to a report from the intergovernmental organisation.
The body highlighted “acute labour shortages” after Brexit and workers choosing to retire during the Covid-19 pandemic.
It also blasted a move by Tory ministers to cap average annual energy bills at a record high of £2,500 until March, claiming assistance should have been more restricted.
Unions have warned that a failure by government to invest in home insulation, gas storage and renewable energy has left workers in Britain exposed to the devastating impact of international shocks, such as the war in Ukraine.
The OECD’s report said: “The untargeted energy price guarantee will increase pressure on already high inflation in the short term, requiring monetary policy to tighten more and raising debt service costs.
“Better targeting of measures to cushion the impact of high energy prices would lower the budgetary cost, better preserve incentives to save energy and reduce the pressure on demand at a time of high inflation” — code for keeping prices even higher in a bid to force reduced energy use.
Prime Minister Rishi Sunak’s official spokesman blamed “challenges that are affecting different countries at slightly different times” and said support from next April, when the cap is due to rise to £3,000, will be more “targeted”.
But shadow chief secretary to the Treasury Pat McFadden warned of a “Tory doom loop,” saying the figures are “yet more evidence of 12 years of economic failure.
“Next year we will have the lowest growth in the G20 bar Russia and we are forecast to be the only OECD economy that will be smaller in 2024 than it was in 2019.
“This is the Tory doom loop — a low-growth spiral leading to higher taxes, lower investment, squeezed wages and poor public services. And they have no plan to get us out of it.”
The Wolverhampton South MP claimed Labour has a “plan to grow the economy, with a modern industrial strategy that works in partnership with businesses and a green prosperity plan creating good jobs.”
The report came as Ofgem told 17 British energy suppliers to improve how they support vulnerable customers.
The energy regulator said that a review had also identified “severe weaknesses” at five suppliers: Good Energy, Outfox, SO Energy, Tru Energy and Utilita.
Ofgem’s director of retail Neil Lawrence said: “From eligible customers who are missing out on free gas safety checks through to companies not identifying vulnerable customers to be offered obvious support, this robust review has highlighted that suppliers need to do more to support consumers.”
The National Energy Action charity said the intervention is a “wake-up call.”
Director of policy Peter Smith said: “The current energy crisis is creating huge challenges for low-income and vulnerable consumers and worryingly, much colder weather is on its way.
“Energy suppliers have a key role in helping deliver vital direct assistance and signposting struggling customers to additional support.
“Key improvements need to be made to ensure vulnerable customers get the help they need at this very difficult time.”
The royal exchange and the bank of England, London. Picture date: Thursday September 29, 2022.
LABOUR slammed “12 years of Tory failures on energy and economic security” today after warnings that worker shortages and “untargeted” energy support will see Britain’s economy contract more than any other G7 nation.
The Organisation for Economic Co-operation and Development’s (OECD) latest forecast suggests the economy is expected to shrink by 0.4 per cent next year and grow by just 0.2 per cent in 2024.
Germany is the only other country in the richest group of nations that is set to suffer a hit to gross domestic product (GDP) next year, with a 0.3 per cent decline, according to a report from the intergovernmental organisation.
The body highlighted “acute labour shortages” after Brexit and workers choosing to retire during the Covid-19 pandemic.
It also blasted a move by Tory ministers to cap average annual energy bills at a record high of £2,500 until March, claiming assistance should have been more restricted.
Unions have warned that a failure by government to invest in home insulation, gas storage and renewable energy has left workers in Britain exposed to the devastating impact of international shocks, such as the war in Ukraine.
The OECD’s report said: “The untargeted energy price guarantee will increase pressure on already high inflation in the short term, requiring monetary policy to tighten more and raising debt service costs.
“Better targeting of measures to cushion the impact of high energy prices would lower the budgetary cost, better preserve incentives to save energy and reduce the pressure on demand at a time of high inflation” — code for keeping prices even higher in a bid to force reduced energy use.
Prime Minister Rishi Sunak’s official spokesman blamed “challenges that are affecting different countries at slightly different times” and said support from next April, when the cap is due to rise to £3,000, will be more “targeted”.
But shadow chief secretary to the Treasury Pat McFadden warned of a “Tory doom loop,” saying the figures are “yet more evidence of 12 years of economic failure.
“Next year we will have the lowest growth in the G20 bar Russia and we are forecast to be the only OECD economy that will be smaller in 2024 than it was in 2019.
“This is the Tory doom loop — a low-growth spiral leading to higher taxes, lower investment, squeezed wages and poor public services. And they have no plan to get us out of it.”
The Wolverhampton South MP claimed Labour has a “plan to grow the economy, with a modern industrial strategy that works in partnership with businesses and a green prosperity plan creating good jobs.”
The report came as Ofgem told 17 British energy suppliers to improve how they support vulnerable customers.
The energy regulator said that a review had also identified “severe weaknesses” at five suppliers: Good Energy, Outfox, SO Energy, Tru Energy and Utilita.
Ofgem’s director of retail Neil Lawrence said: “From eligible customers who are missing out on free gas safety checks through to companies not identifying vulnerable customers to be offered obvious support, this robust review has highlighted that suppliers need to do more to support consumers.”
The National Energy Action charity said the intervention is a “wake-up call.”
Director of policy Peter Smith said: “The current energy crisis is creating huge challenges for low-income and vulnerable consumers and worryingly, much colder weather is on its way.
“Energy suppliers have a key role in helping deliver vital direct assistance and signposting struggling customers to additional support.
“Key improvements need to be made to ensure vulnerable customers get the help they need at this very difficult time.”
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