David Cameron unveils ‘right to buy’ revamp to help boost UK economy

On opening day of Conservative conference, Cameron sets out package of measures on housing that he says could provide 200,000 homes and create 400,000 jobs David Cameron has outlined plans to boost the “right to buy” council house scheme first introduced under Margaret Thatcher’s government in the 1980s, as part of plans to “fire up” the British economy. The prime minister made the announcement to increase discounts to encourage council tenants to buy their own homes as the Conservatives prepare for the first day of their annual party conference amid Tory rumblings about the government’s growth strategy. “We need to do everything we can to fire up the engine of the British economy,” said Cameron in an interview on The Andrew Marr Show. “There’s a step-change taking place right now,” he said. He also insisted the government was right to do “difficult things” to cut the deficit, before conceding that ministers need to do a better job of explaining to those affected why the spending cuts are necessary. He stressed that the government “isn’t just sitting back” in terms of boosting growth as he laid out a package of measures on housing which he said could together provide 200,000 extra homes, create 400,000 extra jobs and give young people the chance to buy their own homes. The original right-to-buy scheme introduced by the Conservatives in the 1980s was criticised for cutting the social housing stock available to those on low incomes. Under Labour, the discounts were reduced thereby discouraging take- up of the scheme. But Cameron said the money from council house sales would be invested into building affordable homes for those on low incomes, which would also boost jobs in the construction industry. The prime minister also highlighted plans to hand thousands of acres of land to developers to build homes . Construction companies will be allowed to take over sites that have been developed but have fallen into disuse, and will only pay for the land when the properties they have built are sold. Housebuilding fell to its lowest peacetime rate since 1924 under the last Labour government, Cameron said. “The housing market isn’t working. Why isn’t working? Because of the debt crisis, the banks are bunged up with debt, so the banks aren’t lending, the builders aren’t building and the buyers can’t buy because they can’t get the mortgages that they need. “So this government isn’t just sitting back, we are rolling up our sleeves and saying right, we’re going to make over government land to housebuilders on the basis that they can build now and pay for the land when they sell the homes. “That could build 100,000 homes, 200,000 jobs in our economy. We’re not stopping there, we’re saying let’s bring back the right to buy your council house, with proper discounts that Labour got rid of, and let’s use that money, as people choose to buy their council home, let’s use that money to build homes for rent, for low rents for families that are currently stuck on housing lists.” He said there were more than 2m council homes still available for purchase. “This is something that could make a big difference and again that could provide another 100,000 homes, another 200,000 jobs. So taking those two policies together that could provide 200,000 extra homes, 400,000 extra jobs.” But there are concerns about the availability of affordable homes amid moves to scrap strict planning rules compelling housebuilders to include such properties in private development schemes. The National Housing Federation, which represents hosing associations, has warned this could prove a significant setback for affordable housebuilding. The economy is expected to dominate the week as the Conservatives gather for their four-day annual party event. Fellow Tory Andrew Tyrie, who chairs the influential Commons treasury select committee, used the runup to the gathering in Manchester to warn that the government’s economic response was “incoherent and inconsistent”. Cameron defended the government’s policies, saying he was not prepared to put at risk the plan for getting the country’s debt and deficit “under control”. Outlining his growth strategy he said: “Line one is dealing with the deficit, absolutely essential for low interest rates. Line two is do all the things to make it easier for businesses to start up, for businesses to grow and to invest. So we are dealing with the employment regulations, we are cutting corporate tax. We are dealing with things like business rates, we are reforming the planning system. Since the election there were also “half a million more private sector jobs”, he added “so the economy is rebalancing” away from the public sector, he added. Cameron also used the wide-ranging interview to say he agreed with Theresa May, the home secretary, who told the Sunday Telegraph she wanted to see the Human Rights Act scrapped as she expressed her frustration at the way the legislation thwarts Home Office efforts to deport dangerous foreign criminals and terrorist suspects. Her comments pre-empt the outcome of a commission of human rights experts that is currently looking at the possibility of bringing in a British bill of rights to replace the Human Rights Act by the end of next year. Few expect the commission – which will report to deputy prime minister, Nick Clegg and Ken Clarke, the justice secretary – to recommend any serious changes. Cameron shared May’s concern that the Commission would work “more slowly” than the Tories wanted, and said if the Conservatives were in power alone, he would get right of the legislation and replace it with a bill of rights. But he said action was already being taken to help end the “chilling culture” which the act had fostered among people fearful they would fall foul of it. He cited the recent example of a prison van driven nearly 100 miles to transfer a defendant the short walk to a court. “I agree that it would be good to replace the Human Rights Act with a bill of rights. I think that is the right thing to do.” He declined to be drawn on reports of a secret plan being discussed by senior member of the coalition which would see the Tories offering Clegg and other senior Liberal Democrats positions in the cabinet after 2015, even in the event of an outright Conservative victory. Cameron told Marr he was focused on the “here and now” to deliver the government’s agenda and said it was good that Britain had a “strong and stable government” under the coalition. “What happens at the next election – we’ll fight as independent parties. We will be fighting to win. And whatever happens, happens.” Conservative conference 2011 Conservative conference Conservatives David Cameron Housing Communities Local government Conferences Hélène Mulholland guardian.co.uk

Posted by on October 2, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.