Housebuilding targets failed, Pickles tells MPs

23 Nov 10
The previous government's Regional Spatial Strategies were abolished because they did not result in more houses being built. Communities Secretary Eric Pickles told MPs yesterday
By Jaimie Kaffash

23 November 2010

The previous government’s Regional Spatial Strategies were abolished because they did not result in more houses being built, Communities Secretary Eric Pickles told MPs yesterday.

The RSSs, introduced by the Labour government in 2004, imposed housebuilding targets on councils. They were abandoned by the coalition government in May this year, but a recentcourt case ruled that a change in legislation was needed to abolish them. Pickles told the Commons communities and local government select committee that the abolition would form part of the imminent Localism Bill.  

He said RSSs were a case of ‘nice policy, pity about the results’. Their replacement, the NewHomes Bonus, in which central government will match the council tax collected by authorities on all new homes built – would provide incentives where the RSSs failed, he added.

‘We want to see more houses built,’ he said. ‘And we don’t think the RSS has delivered them, because it was more about ticking the box. There were no consequences of not meeting the targets other than the target increased, and that is why we went for a system that rewarded local authorities and gave them incentives.

‘I think it is important for government and local government to realise there are limitations. We have tried to bring in a number of reforms that actually work with the market rather than against it.’

The MPs raised concerns that there would be problems during the transition between the Bill being made law and the finalising of a national planning framework.

But Pickles said that the New Homes Bonus would be up and running by the time any eligible houses have been built.

Ken Thornber, leader of Hampshire County Council, told the MPs that the lack of houses being built was due to problems with infrastructure.

‘In my experiences, districts are not clamouring for a lower target of houses. They accept the need. The big problem is the infrastructure to keep pace with that level of housing. There is an infrastructure deficit.’

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