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Parliamentary Debates (Hansard) Tuesday Volume 563 14 May 2013 No. 5 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 14 May 2013 £5·00 © Parliamentary Copyright House of Commons 2013 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 477 14 MAY 2013 478 and in the Budget we announced the Help to Buy House of Commons scheme, a major new package to increase the supply of low-deposit mortgages for creditworthy households, which Tuesday 14 May 2013 I hope the hon. Lady will welcome. Ann McKechin: In evidence to the Treasury Select The House met at half-past Eleven o’clock Committee, the distinguished commentator, Martin Wolf, described the Government’s mortgage indemnity guarantee PRAYERS as “good politics and horrendous economics.” Why are the Government pursuing a policy that is likely [MR SPEAKER in the Chair] to increase the price of already over-inflated property, Mr Speaker: Order. I draw Members’ attention to the rather than financing affordable social housing that is fact that the book for entering the private Member’s Bill needed by hundreds of thousands of people across the ballot is now open for Members to sign in the No country? Lobby. It will be open until the House rises today and when the House is sitting on Wednesday 15 May. The Danny Alexander: The hon. Lady comments on ballot will be drawn on Thursday 16 May, and a note affordable social housing, but I note that during Labour’s setting out those arrangements, and the dates when 13 years in office the amount of social housing fell by ten-minute rule motions can be made and presentation 421,000. This Government’s policies will increase the Bills introduced, are published in the Order Paper. amount of social housing by 200,000—a record on which she should compliment us. On the mortgage indemnity guarantee, offering support to many households BUSINESS BEFORE QUESTIONS who cannot afford the large deposits now required is a thoroughly good thing, and by involving the Financial SESSIONAL RETURNS Policy Committee of the Bank of England in a review Ordered, after three years, we also have a guarantee of financial That there be laid before this House Returns for Session stability. 2012-13 of information and statistics relating to: (1) Business of the House. Mr Philip Hollobone (Kettering) (Con): The (2) Closure of Debate, Proposal of Question and Allocation of Government’s fiscal and other policies have cut the Time (including Programme Motions); deficit by one third, helping to keep interest rates low. (3) Sittings of the House; What would happen to the housing market and domestic (4) Private Bills and Private Business; mortgage costs were interest rates to rise, even by just 1%? (5) Public Bills; (6) Delegated Legislation and Regulatory Reform Orders; Danny Alexander: My hon. Friend makes an important (7) European Legislation, etc; point, and he will know that if mortgage rates increase (8) Grand Committees; by 1% it would add more than £10 billion a year to the (9) Panel of Chairs; and costs for British households—not a consequence any of (10) Select Committees.—(The Chairman of Ways and Means). us on the Government Benches would welcome. Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co- Oral Answers to Questions op): When the priority should be helping first-time buyers, will the Chief Secretary finally rule out the Help to Buy scheme being used to buy second homes—yes or no? TREASURY Danny Alexander: Actually, I have been very clear on The Chancellor of the Exchequer was asked— this question throughout. It is not the intention of the Help to Buy scheme to aid people in buying second Housing Market homes. The part of the scheme already up and running—the shared equity scheme—is available only for someone’s Q1. Ann McKechin (Glasgow North) (Lab): what primary residence, and we will set out details of the fiscal steps he plans to take to stabilise the housing mortgage indemnity guarantee as we go forward. The market. [153848] intention is not to help people buy their second homes. The Chief Secretary to the Treasury (Danny Alexander): Cathy Jamieson: Is it not staggering that two months My right hon. Friend the Chancellor is in Brussels after the Budget the Chief Secretary is still unable to today at ECOFIN, exercising the considerable influence rule out people buying a second home for themselves that Britain enjoys as a full member of the European under this scheme? Let me try another question. With Union. The Government are committed to the vital house building at its lowest since the 1920s and the reforms needed to address long-term structural issues in housing benefit bill rising, why did the Government not the housing market. They have already committed to use funds from the 4G auction to build 100,000 more investing £11 billion during the spending review period, affordable homes? 479 Oral Answers14 MAY 2013 Oral Answers 480 Danny Alexander: The hon. Lady will know that Chris Bryant (Rhondda) (Lab): Fiscal policy is not housing completions are 19% above the trough of 2010, the only thing providing a difficulty for young people. numbers of housing starts are 58% above the trough of Welfare policies mean that they have to stay at home 2009, and she should welcome that improvement. In the and cannot move to places where there might be jobs. Budget, we announced a £5 billion package to help the The policy on youth services, which are being dramatically construction sector through the Help to Buy shared cut throughout the country, means that young people equity scheme, which will support the construction of are not getting the skills that might make it possible for 76,000 properties, as well as a massive expansion of the them to get into work. Is not the truth of the matter Build to Rent programme. It is staggering that the hon. that the only people in this country who are doing Lady cannot bring herself to welcome those measures. anything to get young people into jobs are those in the Labour-run Welsh Assembly? Harriett Baldwin (West Worcestershire) (Con): Will the Minister welcome today’s figures showing that the Danny Alexander: I cannot agree with anything the number of first-time buyers increased by 20% this month? hon. Gentleman says. The truth is that this Government Will he also welcome the fact that the Department for are creating more opportunities for young people to Communities and Local Government has shown that take steps towards work than any previous Government. 37,000 new homes for social rent were built last year, Let me give an example from the Department of my which is a record since 1997? right hon. Friend the Secretary of State for Business, Innovation and Skills. One million apprenticeship starts—a Danny Alexander: I welcome those figures. They suggest 50% increase on the previous Government—are creating that the policies being pursued by this Government are valuable opportunities for young people to gain experience having the desired effect. in the workplace and employment afterwards. The hon. Youth Unemployment Gentleman should welcome and support those efforts, not condemn them. Q2. Andrew Gwynne (Denton and Reddish) (Lab): What assessment he has made of the effect of current Stephen Williams (Bristol West) (LD): The Archbishop fiscal policy on the level of youth unemployment. of Toledo might well have been concerned about high [153849] rates of youth unemployment in Spain, which are much higher than they have ever been in this country, but does The Chief Secretary to the Treasury (Danny Alexander): my right hon. Friend agree that, despite the fact that the The UK labour market is showing signs of recovery. problem, as he has just said, has been intractable for More people are in work than under any previous more than decade, the Deputy Prime Minister’s Youth Government. Contract gives an opportunity for young people to have work experience in the private sector, from which most Andrew Gwynne: The Chief Secretary says the economy of the growth and job opportunities of the future are is healing but he should take more seriously the fact likely to come? that youth unemployment is growing again, with nearly 1 million young people unemployed for the last year. Danny Alexander: I wholeheartedly agree with my Will he explain why, in the past year, youth unemployment hon. Friend. The Youth Contract, which was launched has grown by a staggering 355% since the Work programme in April, supports 500,000 young people into employment was introduced? Is that not disgraceful? Should not the through a range of measures, including an in-work Government prioritise a compulsory jobs guarantee subsidy and access to work experience. Alongside the 1 paid for from a bank bonus tax? million apprenticeships that my right hon. Friend the Secretary of State for Business, Innovation and Skills is Danny Alexander: In this matter, a wee bit of humility starting during this Parliament, the Youth Contract from the Labour party would not go amiss, on the basis offers a range of new opportunities for young people, that youth unemployment has been a persistent problem which are necessary in getting more young people into in this country for many years—youth unemployment work, which the House agrees is vital for the country. has been rising since 2003 or 2004. I note that, in the hon. Gentleman’s constituency between December 2010 Income Tax and December 2012, youth unemployment fell by 11.8%. Through measures such as the Youth Contract and the Work programme, we are deploying considerable support Q3.
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