Put councils at the heart of house-building’

July 11, 2007

The New Local Government Network urged the Prime Minister to use his forthcoming Housing and Planning Bills to allow councils greater freedom to build new houses. The think tank said that councils were currently restricted by tight fiscal rules and that authorities with a good record of financial management should be allowed greater flexibility to provide more housing, particularly in the social sector.

Speaking after Gordon Brown had unveiled a draft legislative programme, NLGN Director Chris Leslie said that he was pleased that housing had been given such a high priority in the statement, but that fundamental reforms are now necessary to allow councils to plug the housing gap.

He said:

“Building more homes is vital not only for the long term health of the housing market, but if handled correctly could also aid social cohesion and reduce regional economic inequalities. Social change in recent decades has created a vast constituency of individuals with housing needs who are crying out for public policy leadership. Local authorities should occupy a key role in making this happen, deciding on local priorities and leading the discussion locally about housing need and supply, rather than simply responding to planning applications from developers. Only councils, with their direct democratic mandate, are equipped to rise to this challenge”.

Local authorities should play a key role in this process, not only by releasing dormant land, but actively in house building and contracting. Councils need to be given new financial tools and incentives to kick start the process. I hope that the Comprehensive Spending Review will seriously revise the rules on borrowing so that councils can get be a catalyst for new homes construction”.


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