Mr Speaker, I would like to start by apologising on behalf of my right hon. Friend the Secretary of State for his absence from the Chamber. As I believe you and the hon. Member for Wigan (Lisa Nandy) are aware, he has a family reason that means he is unable to be here today.
The Government are taking action to protect communities from inappropriate development through measures in the Levelling-up and Regeneration Bill and through our proposals for updating the national policy planning framework, which we launched for consultation at the end of last year. Those proposals include giving increased weight to plans in decision making, removing the requirement to demonstrate a five-year housing land supply where a plan is up to date and strengthening the protections from speculative development for areas that have a neighbourhood plan that meets its housing requirement.
The Minister is well aware that communities across the Witham constituency, including many villages such as Hatfield Peverel, Tollesbury, Tiptree and Black Notley, have been subject to speculative developments, some of which have gone through on appeals from builders in particular or have been approved by councils concerned about their five-year land supply. What assurances can she and the Government give my constituents, who are fighting against many speculative developers and developments, that the Government’s planning policies are on the side of those communities?
I am very aware of the issues my right hon. Friend raises, because we discussed them at length as the Bill was going through the House. I am grateful for her contributions, which have strengthened the Bill. I know that communities, including in her constituency, invest considerable time and effort in preparing neighbourhood plans, and I understand their frustrations when decisions go against their wishes. The current NPPF already provides important additional protection from speculative development for areas with a neighbourhood plan, but we want to go even further. We have just published proposals to increase protections for areas, including those with neighbourhood plans. Those proposals are now out for consultation and I know the Secretary of State will consider all views carefully before making a final decision.
Happy new year to you, Mr Speaker, and to everyone else.
The consultation on the NPPF before Christmas included quite a lot of flexibilities and potential for changes on the standard methodology that would be the basis for calculating the housing needs assessment, but the one area where there did not seem to be much flexibility was the urban uplift. Can the Minister justify the 35% uplift and set out how it has been calculated for each of the urban areas? Secondly, in cases such as that of Sheffield, where the urban uplift will force development on to greenfield sites and the green belt, will there be flexibility so that the extra amount from the urban uplift does not have to be applied where it can do real damage to local communities?
I am sure other hon. Members have questions for me and other Ministers about the importance of infrastructure where we have development. Developments in urban areas have the benefit of that infrastructure, and it is important to build houses where there is infrastructure, so that uplift remains. However, the hon. Gentleman mentioned the green belt, and we are very conscious of the impact of building on green belt. There will be strengthened protections around that in the NPPF.
Does my right hon. and learned Friend agree that the best way to stop building housing in unsuitable areas is to build more on brownfield sites across the country? Is it not therefore all the more tragic that under the current Labour Mayor of London, house building has gone off a cliff because he remains obsessed with unrealistic targets for social housing in every development, stopping good projects from going ahead and depriving the people of this city and this country of houses for sale and for market rent, and of social housing as well?
My right hon. Friend makes an excellent point, as always. We do agree that it is important that we build first on brownfield land. That is why we have a brownfield-first policy that we are absolutely committed to, and a brownfield fund to encourage investment in those areas. It is, of course, important that we have social housing, affordable housing and homes that first-time buyers can buy. But it is important that we have mixed developments, and that those houses are in the right places and in the right quantities.
York is becoming unrecognisable as developers are building not only luxury student accommodation but luxury apartments across our city when we desperately need social and affordable homes. That is leading to the highest price rises in housing across the country—a staggering 23.1% last year—pricing out my constituents. How will the Minister ensure that local authorities just build housing according to need rather than the want of developers?
We do ensure that. We are committed to ensuring that we have in our new infrastructure the same amount of affordable housing that we have at the moment. As I am sure the hon. Member is aware, we have a fund of £11.5 billion going into affordable housing so that developers can create the houses that people not only want but need.
Interest Rates and Inflation: Inequality and Levelling Up
The recent autumn statement protected the most vulnerable by uprating benefits and pensions with inflation, strengthening the energy price guarantee, and providing cost of living payments for those who are most in need. My Department is continuing to analyse and respond to the challenges that inflation presents to the delivery of our levelling-up programmes and the levelling-up agenda, working closely with the places affected. We are continuing to explore what other support can be offered to mitigate against those inflationary pressures.
According to the Department, construction of major projects has stalled because industry prices are well above the headline rates of inflation. As the Minister knows, UK inflation is projected to be the highest in the G7 this year, as it was last year. In the north-west, the Government have cut £206 million from the much-needed shared prosperity fund, so will the Minister confirm that her Department will make up the shortfall in the funds to help the construction industry play its part in rebuilding the economy and communities across the country?
Dehenna Davison
I am grateful to the hon. Gentleman for bringing attention to the shared prosperity fund, which is just one of the many measures that this Government have put in place to help to promote investment in local areas right across the country. One point that I draw his attention to is that, in recognising the challenging landscape that we face at the moment, our Department is making an additional £65 million of funding available to successful applicants to ensure that they can take on board consultants, train up extra staff and increase their capacity so that they are responding to the challenges that they face.
Happy new year, Mr Speaker. It is great to see the former Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), take a break from his career break to come and join us today—he is very welcome.
The UK is already the second most unequal G7 country, with inflation higher in poorer regions—including many parts of the west of Scotland—than in London and the south-east of England. That is set to become even worse as a consequence of the Tory cost of living crisis. Local initiatives such as the Clyde green freeport are designed to boost economic prospects in the west of Scotland, but inequality is still a major impediment to economic growth. How can the Tories fix that inequality when they largely caused it in the first place and have spent the last decade making it worse?
Dehenna Davison
I am grateful to the hon. Gentleman for again drawing attention to the green freeports programme, which will provide brilliant opportunities for residents in Scotland; we hope to make an announcement on that incredibly soon. I draw his attention to the incredible UK Government funds going into Scotland: the UK shared prosperity fund, the levelling-up fund and the community ownership fund—all things that Scottish people can access thanks to the UK Government improving opportunities for Scottish people.