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Right to Buy discount halved

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Right to Buy: Not what it was!

Right to Buy: Not what it was!

IT WAS ANNOUNCED last week that the Welsh Government had halved the maximum discount available under the Right to Buy scheme in an attempt to ‘protect the social housing stock’.

Earlier this year Communities Minister Lesley Griffiths announced her intention to end the scheme, which has been in existence since the early eighties when it was introduced by Michael Heseltine, Margaret Thatcher’s Environment Minister as part of the Housing Act (1980).

It is hard to think of a single policy which has been so divisive over the last three decades. It is, in effect, an ideological issue; with Free Market proponents on the one side advocating the power and responsibility taken from the state and given to the individual. Opposing this are critics who point to the drastic reduction in social housing over the time period, and the corresponding increases in homelessness and the use of public money to pay private landlords.

In Wales, 138,709 council-owned homes were sold under Right to Buy between 1981 and 2014 – leading to a reduction in the social housing available of 45 percent. Nationally 42% of the population lived in council housing in 1979 – by 2008 this had dropped to 12%.

The sale of council housing was originally meant to provide funds which would enable local authorities to pay back loans and build new properties. However, restrictions were placed on the proceeds of the sales, and councils found that they could not build any new social housing until these loans had been paid off. House building by local authorities in England and Wales dropped dramatically during the eighties, and has never recovered.

The Labour Government initially opposed the policy, but changed their position in 1985. Tony Blair’s government introduced caps on the discount available in areas short of social housing, and in 2005, the rules were changed to stop former tenants selling on the open market immediately after purchase. A five-year minimum residency before becoming eligible for the scheme was also introduced.

The policy was initially very popular among council tenants, and it was considered to have played a major role in Margaret Thatcher’s landslide victory of 1983, when in 1980 she had the lowest approval rating of any prime minister since records began.

However, repossession rates were notably higher than those for people taking out private mortgages, and homelessness across Great Britain trebled over the eighties. Another bone of contention for those opposed to Right to Buy concerned the burgeoning buy to let market, which in many cases saw ex-council housing stock rented out at considerably more than the local authority charged.

Because most of the council housing purchased was of good quality, and as a result of housing shortages leading to applicants being prioritized on the basis of need, many tenants found themselves living in areas of increasing social deprivation. Cuts to council maintenance budgets, and a dramatic increase in council rents contributed to this on a national level, and to some extent made Right to Buy a self-fulfilling prophecy for those who could afford it. By the mid-nineties, 95% of council tenants qualified for means-tested benefits.

There has been a rise in the number of social housing sales in Wales over the last five years, with 544 properties sold last year. In response to this, the maximum discount has been reduced to £8,000 from £16,000. Commenting on this, Lesley Griffiths AM said that “Right to Buy is depleting our social housing stock.

“This damaging policy is further increasing the pressure on our social housing supply and is forcing many vulnerable people to wait longer for a home,” she added.

“This is why the Welsh Government has taken decisive action to protect our social housing and make sure it is available for those who need it most. Today is a significant step towards our eventual goal of abolishing the Right to Buy and Right to Acquire in Wales.”

The Conservatives, unsurprisingly, disagree with this. Speaking earlier this year, Shadow Assembly Housing Minister Mark Isherwood said that the move ‘flies in the face of aspiration and ambition. It will limit supply and deny people in council properties the choice and power to buy their own home’.

Mr Isherwood announced the intention of the Welsh Conservatives to extend Right to Buy: “We would invest all the sales proceeds in new social and affordable housing to help tackle Labour’s housing supply crisis and take households off their record-breaking waiting lists,” he added.

“Scrapping the right to buy is further proof that it’s anti-aspiration; stuck in an ’80s socialist dogma where it believes the government knows best – not the individual. We must use every tool in the armoury to increase housing supply in order to make housing more affordable.”

Whether selling off social housing in order to make money which could potentially be used to build more is a viable solution to these ‘record-breaking waiting lists,’ or indeed whether the aforementioned 45 percent reduction in available social housing could have had anything to do with the current housing shortage remains unclear.

This also fails to take into consideration people living in social housing that is not covered by Right to Buy, and indeed the large number of people renting from private landlords, often because of a shortage of council housing.

In England, the Conservatives have announced proposals which would extend Right to Buy across all areas of social housing. However, the social housing provider would have to be compensated, thus meaning that the discounted price would have to cover the cost of a new equivalent house. This is meant to be funded through local authorities selling off their more expensive council houses when they become vacant, but research has shown that outside of London the figures often fail to add up.

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National 20mph limit comes into force in Wales next year

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WALES will be the first UK nation to impose a 20mph default speed limit following a vote held in the Senedd yesterday (July 12). The Welsh Government voted to limit residential roads and busy pedestrian streets to 20mph. 

According to the Welsh Government, this will lessen the likelihood and severity of accidents involving vulnerable road users. It will also encourage more people to cycle and walk. 

39 members of the Senedd voted in favour, while 15 members voted against. 

The new national default speed limit will come into effect from September 2023. The Welsh Government say the changes affect residential roads and busy pedestrian streets. 

According to the Welsh Government, the modifications have an impact on major pedestrian routes and residential roadways. The Welsh Government is still deciding which highways will have 20mph speed restrictions and which ones should stay at 30mph.

The 22 councils in Wales will collaborate with Go Safe to determine implementation timelines, according to the Welsh Government, but enforcement will continue throughout the transition period.

Climate change minister, Julie James, stated: “The future of our towns and cities depends on our ability to move around sustainably and on solutions that have a positive impact on public health environment and communities.

“That is why we will use the principle that walking, cycling and active travel must remain the best options for short urban journeys and a 20mph default speed limit will help achieve this. The introduction of a national 20mph limit would be an important and far reaching policy. If passed Wales would be the first country in the UK to introduce the change. We’re asking you all to be part of this change and make our communities understand the wider benefits of 20mph.

“This change is a generational one and when the time to embed, it will need to be accompanied by an important communication and marketing campaign and behaviour change initiatives. Achieving behavioural change is challenging but Wales has previously shown that we can do it successfully with policies such as organ donation, the banning of smoking in public places, and limiting the use of plastic bags. It does, however, require a collaborative effort between agencies, local authorities and by communities. We need to bring speeds down.”

She continued, saying there is evidence that 20 mph speed limits encourage more people to bike or walk, and she hoped this would lead to people naturally choosing those modes of transportation.

According to Ms. James, 80 people die on Welsh roads on average each year, and current data shows that 30mph is the speed at which 53 percent of accidents occur.

The immediate cost is about £33 million, but according to the Welsh Government, increased road safety brought on by slower average speeds could generate a positive financial return of about £25 million over the course of 30 years due to the money saved on fewer emergency services and hospital visits.

Additionally, the policy might result in significant wider economic gains from increased road safety (£1.4 billion), environmental and health gains from increased active travel (£5 million), and additional unquantified benefits from more vibrant and connected local economies.

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Large number of NHS staff in Wales currently off work as Covid cases rise

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HEALTH MINISTER Eluned Morgan has said Wales is in the “midst of a new wave” Covid infections” and that around 1 in 20 people had the virus last week.

According to ONS data, it’s estimated that 149,700 people tested positive for COVID-19 for the seven days to 30 June.

Ms Morgan said a large number of NHS staff in Wales are currently off work because they have Covid-19.

Updating Senedd Members on the current situation in Wales, the health minister said: “Over the last couple of weeks, we have seen a steady rise in the number of coronavirus infections in Wales.”

“We are in the midst of a new wave of infections, caused by the BA.4 and BA.5 subtypes of the omicron variant.”

“These are fast-moving, highly infectious forms of the virus, which are causing a surge in infections across the UK and in many other countries around the world.” She said.

Public Health Wales reports the current dominant variant in Wales is the BA.5 variant of omicron.

The latest results of the ONS’ Coronavirus Infection Survey estimate 4.93% of the population in Wales had Covid-19 in the week ending 30 June – equivalent to approximately one person in 20.

This has increased from an estimated 1.33% of the population (one in 75) from the week ending 2 June.

Across the UK, the estimated prevalence of coronavirus ranges from 3.95% in England to 5.94% in Scotland for the week ending 30 June.

Ms Morgan said: “As we have seen in previous waves, the increase in cases in the community, has led to an increase in the number of people being admitted to and treated in hospital for Covid-19.”

“The latest available information shows there are now more than 960 Covid-19-related patients in Welsh hospitals and there has also been an increase in number of people with Covid-19 being treated in critical care.”

She said: “The NHS has been working incredibly hard to provide planned care for people across Wales and to reduce waiting times, which had built up over the course of the pandemic. This task becomes more difficult when pandemic pressures increase.”

“Some hospitals have taken the difficult decision to restrict visiting to prevent coronavirus from spreading among patients and staff; others are asking all visitors to wear face coverings.”

“We are not making face coverings mandatory in health and care settings , but I would encourage everyone to wear one if they are visiting a healthcare setting and I would also ask people to consider wearing a face covering in crowded indoor public places, while cases of coronavirus are currently high.”

“We have extended the availability of free lateral flow tests for people who have symptoms of coronavirus until the end of July.” Ms Morgan said.

She added: “There are a number of other simple steps everyone can take to keep themselves and Wales safe.”

These include:

  • Get vaccinated
  • Maintain good hand hygiene
  • Stay at home and limit your contact with others if you are ill
  • Wear a face covering in indoor crowded or enclosed places
  • Meet others outdoors wherever possible
  • When indoors, increase ventilation and let fresh air in.
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Following Boris Johnson’s resignation, who could replace him as Prime Minister?

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MOST prime ministers would have resigned over any one of the scandals to engulf Boris Johnson’s government. Johnson, never one for tradition or rules, rode out nearly every crisis – but the Chris Pincher affair was the final straw.

Led by Health Secretary Sajid Javid and Chancellor Rishi Sunak, over 50 members of Johnson’s government resigned in a day and a half. Johnson has now resigned as party leader, vowing to remain PM until a new leader is chosen.

Johnson was not a typical leader, and his successor will have a difficult job.

They will need to strengthen the Conservative party before the next general election (which could come sooner rather than later).

They will need to distance themselves from the more problematic aspects of Johnson’s legacy, while steadying the ship and appealing to the electorate.

Here are the likely runners and riders for this seemingly impossible task:

Ben Wallace

While not perhaps as well known as some of the candidates, Defence Secretary Ben Wallace is considered a serious contender. He has been pivotal in the UK’s response to Russia’s invasion of Ukraine and was clear in the run-up to the Taliban takeover in Afghanistan that action was needed to evacuate UK citizens and others in danger. He did not resign from Johnson’s cabinet, which might count against him, but he certainly looks like a strong candidate. Early polling suggests Wallace is the candidate to beat, but the campaign will test his early popularity.

Penny Mordaunt

Minister of State for Trade Policy Penny Mordaunt is not necessarily a household name, but she is very respected within the Conservative party. Mordaunt was a short-lived but well-respected defence minister and recently Royal Navy reservist. She previously served as secretary of state for international development (before the department was merged with the Foreign Office). Like Wallace, Mordaunt stuck by Johnson over the last few days, but her popularity within the party might allow her to overcome that issue, particularly if she can play up her pro-Brexit credentials.

Rishi Sunak

The former chancellor was considered the leader in waiting in the early stages of the pandemic. His early successes with the furlough scheme elevated his status and profile, but his star faded fairly quickly. Questions over his wife’s tax status and wealth generally made Sunak seem out of touch with voters. He was also, along with Johnson, fined by police over lockdown parties in Downing Street. While he remains a strong candidate, he might have wished that his opportunity to stand for leader had come sooner.

Sajid Javid

Javid has the distinction of having resigned from a Johnson cabinet twice. His first resignation, from his role as chancellor just before the pandemic, was driven by his desire to appoint his own staff. He was invited back into cabinet after Matt Hancock’s resignation. While considered by many within the party as a very capable MP, with a working-class background that would count in his favour, some worry Javid showed a lack of judgment in rejoining the Johnson cabinet.

Nadhim Zahawi

Zahawi came to public prominence when he spearheaded the vaccine rollout. His time as education secretary has been viewed positively, but his move to the Treasury less than two days before telling Johnson to resign have made some question his motives. Perception that he allowed personal ambition to override his moral compass is likely to hurt Zahawi. He will need to answer for this when asked by the party and country.

Foreign Secretary Liz Truss was out of the country for Johnson’s downfall. She returns as a possible contender for party leadership.

Liz Truss

Currently overseas on official business, the foreign secretary will undoubtedly be thankful not to have been caught up in the chaos of this week. But is she too absent? While considered by many a “safe pair of hands” she is not a dynamic candidate for leader, and it is doubtful whether she can become an electoral asset to the party. If the Conservatives want a safe choice instead of another “exciting” leader to follow Johnson, Truss may have a shot.

Dominic Raab

The deputy prime minister is another potential leader in waiting. He has occupied a number of cabinet roles including secretary of state for Brexit, foreign secretary and now justice minister. While he certainly has a high-ranking position, he has had a number of missteps. As Brexit minister, he finished off the negotiations his predecessor David Davis began, then resigned because he couldn’t accept the deal he helped to finalise. As foreign secretary, he was criticised for his lack of speed during the Taliban takeover of Afghanistan. That, coupled with his earlier comments calling British workers the “worst idlers in the world” before he joined the cabinet, make him a long shot for Downing Street.

The rest of the pack

On the backbenches, there are expected to be at least three potential candidates – former Health Secretary Jeremy Hunt, prominent Brexiteer Steve Baker, and well-respected backbench MP Tom Tugendhat. For any backbencher wanting to catapult themselves into Downing Street, the ride is likely to be bumpy. A track record of success is usually needed. This is harder for a backbencher, either because they have never been in cabinet, or because they have left cabinet (usually after being asked to). These individuals have a long road ahead of them.

There will be others who may want to scope out their prospects with the party. Cabinet secretaries Priti Patel or even Jacob Rees-Mogg might test the water, but they are likely to find it cold.

The battle ahead will inevitably have its twists and turns, and it is almost impossible to predict the outcome. Many within the Conservative party, and perhaps the country, will be hoping for less exciting times than they have recently lived through.

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