Social housing: Councils demand action to bolster affordable accommodation

Published

1 year ago

February 14, 2024

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The right-to-buy scheme must be reformed to ensure those most in need have access to secure accommodation, councils have warned.

The Local Government Association (LGA) said the scheme, that enables social tenants to purchase their homes with big discounts, meant that 7,449 social homes were lost on a net basis during the last financial year.

Its figures showed that of 10,896 social homes sold through right-to-buy in 2022/23, only 3,447 had been replaced since, in breach of government commitments.

The cross-party body said the budget, due on 6 March, was an opportunity to address a number of flaws that were exacerbating shortages.

The LGA said the main concern was that rising discounts, alongside other measures that restrict councils’ use of right-to- buy receipts, meant that home ownership was increasingly being prioritised over access to secure, safe, social housing.

It said a commitment made by government in 2012 that promised to replace each home sold under right-to-buy with a new social home, had not been met.

LGA analysis found more than 110,000 properties had been sold under the scheme since, but only 44,000 replaced.

The discount rate is set to increase again in April, by 6.7%, providing maximum purchase discounts of £136,000 in London and £102,000 elsewhere.

“At a time of acute housing shortages, where more than one million people are on council housing waiting lists and councils are spending £1.74bn annually on temporary accommodation, the LGA is calling for major reforms,” its statement said.

The list included giving councils control over how money raised from the scheme is spent on development and property acquisitions.

Councils are also seeking powers to protect their investments in housing and greater flexibility to shape right-to-buy schemes to suit the needs of local areas.

The housing issue has been a thorn in the sides of successive governments, with supply failing to meet demand over decades and placing upwards pressure on prices as a result.

More recently, the cost of living crisis and rising interest rates to tackle that inflation have resulted in surges to everyday household bills.

Some councils, including Liverpool, have said they are witnessing record rough sleeper numbers, with local authority and other accommodation being further squeezed by asylum claimants.

Housing minister Lee Rowley told Sky News on Tuesday that the government has “got to have targets”, piling pressure on the Conservative party’s position after an election manifesto pledge in 2019, for 300,000 new houses each year by the mid-2020s, was watered down.

The government has argued that councils are part of the problem, dragging their feet on planning applications especially for building on brownfield sites.

Its focus in England is on smoothing planning processes covering derelict sites to deliver more homes in towns and cities.

Labour says an overhaul of the planning system that it would introduce, if elected, would unlock the construction of 1.5 million new properties over the course of the next parliament.

Darren Rodwell, LGA housing spokesperson and Labour leader of Barking and Dagenham Council, said: “We are facing a significant housing shortage in this country which has pushed council budgets to the brink as they struggle to find suitable homes for an ever-increasing number of people.

“Whilst the right-to-buy can and has delivered homeownership for many, the current form does not work for local authorities and those most in need of housing support are simply unable to access secure, safe social housing.

“It is time for the government to overhaul a system that has seen our social housing stock significantly diminish.”

A Department for Levelling Up, Housing and Communities spokesperson responded: “The government remains committed to the right-to-buy, which since 1980, has helped over two million social housing tenants to become homeowners.

“We are committed to increasing the supply of affordable housing, and our £11.5bn Affordable Homes Programme is delivering well over a hundred thousand affordable homes – including tens of thousands of new homes specifically for social rent.

“We have also made it easier for councils to deliver replacement homes and to provide more safe, secure and decent council housing for those that need it, and we have given them more control over how they spend their right to buy receipts.”

Business

Eco-tycoon Vince weighs sale of solar energy project

Published

38 mins ago

April 6, 2025

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Eco-tycoon Vince weighs sale of solar energy project

The energy group founded by Dale Vince, the eco-tycoon, is kicking off a hunt for investors in a solar park which is expected to become one of Britain’s biggest renewable energy projects.

Sky News understands that Ecotricity, Mr Vince’s company, has hired KPMG to explore talks with prospective investors or buyers for the project at Heckington Fen in Lincolnshire.

The development was approved by Ed Miliband, the energy secretary, earlier this year, and when completed it is expected to generate roughly 600MW of solar power.

It has been designated a Nationally Significant Infrastructure Project by the government.

Heckington Fen will also provide 400MW of battery storage capacity.

According to documents circulated to potential bidders, Ecotricity is prioritising the sale of 100% of the project, but is open to retaining a minority stake.

The company wants to complete a deal during the third quarter of the year.

Responding to an enquiry from Sky News, Mr Vince said: “Heckington Fen is a fabulous opportunity; it’s also a massive one, possibly the biggest onshore renewable initiative in Britain.

“The project is shovel-ready with a grid connection in 2028 – something which is increasingly hard to find these days.

“Whilst this is a great project which is going to go ahead, the sums of money required to build this alone in a short timeframe, means we’re looking for investors or partners to help make this happen.”

Business

Sir Keir Starmer pledges to protect UK companies from Trump tariff ‘storm’

Published

10 hours ago

April 6, 2025

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Sir Keir Starmer pledges to protect UK companies from Trump tariff 'storm'

Sir Keir Starmer has said his government stands ready to use industrial policy to “shelter British business from the storm” after Donald Trump’s new 10% tariff kicked in.

The UK was among a number of countries hit with the lowest import duty rate following the president’s announcement on 2 April – which he called ‘Liberation Day’, while other nations, such as Vietnam, Cambodia and China face much higher US levies.

But a global trade war will hurt the UK’s open economy.

The prime minister said “these new times demand a new mentality”, after the 10% tax on British imports into America came into force on Saturday. A 25% US levy on all foreign car imports was introduced on Thursday.

It comes as Jaguar Land Rover announced it would “pause” shipments to the US for a month, as firms grapple with the new taxes.

On Saturday, the car manufacturer said it was working to “address the new trading terms” and was looking to “develop our mid to longer-term plans”.

Referring to the tariffs, Sir Keir said “the immediate priority is to keep calm and fight for the best deal”.

Writing in The Sunday Telegraph, he said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, adding: “We stand ready to use industrial policy to help shelter British business from the storm.”

It is believed a number of announcements could be made soon as ministers look to encourage growth.

NI contribution rate for employers goes up

From Sunday, the rate of employer NICs (national insurance contributions) increased from 13.8% to 15%.

At the same time, firms will also pay more because the government lowered the salary threshold at which companies start paying NICs from £9,100 to £5,000.

Also, the FTSE 100 of leading UK companies had its worst day of trading since the start of the pandemic on Friday, with banks among some of the firms to suffer the sharpest losses.

Sir Keir said: “This week, the government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.”

UK spared highest tariff rates

Some of the highest rates have been applied to “worst offender” countries including some in Southeast Asia. Imports from Cambodia will be subject to a 49% tariff, while those from Vietnam will face a 46% rate. Chinese goods will be hit with a 34% tariff.

Imports from France will have a 20% tariff, the rate which has been set for European Union nations. These will come into effect on 9 April.

Sir Keir has been speaking to foreign leaders on the phone over the weekend, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and Australian Prime Minister Anthony Albanese, to discuss the tariff changes.

A Downing Street spokesperson said of the conversation between Sir Keir and Mr Macron: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.

“The prime minister and president also shared their concerns about the global economic and security impact, particularly in Southeast Asia.”

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Trump’s warning

Mr Trump has warned Americans the tariffs “won’t be easy”, but urged them to “hang tough”.

In a post on his Truth Social platform, he said: “We are bringing back jobs and businesses like never before.

“Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!

“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”

Business

Santander UK lines up ex-Treasury chief Scholar as new chair

Published

1 day ago

April 5, 2025

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Santander UK lines up ex-Treasury chief Scholar as new chair

Sir Tom Scholar, the former top Treasury civil servant sacked by Liz Truss during her premiership, is being lined up as the next chairman of Santander UK, Britain’s fifth-biggest high street bank.

Sky News has learnt that Sir Tom, who played a pivotal role in the UK’s response to the 2008 financial crisis, is the leading candidate to replace William Vereker.

The appointment, which is subject to regulatory approval, could be announced later in the spring, according to insiders.

Sir Tom’s prospective recruitment comes amid a period of intense speculation about the future of Santander UK, which bulked up rapidly during the banking crisis by absorbing Alliance & Leicester and Bradford & Bingley.

The Spanish banking giant entered the British retail market in 2004 when it bought Abbey National, setting in motion a chain of dealmaking which would result in it becoming a serious challenger to Barclays, Lloyds Banking Group and NatWest Group.

If confirmed in the role, Sir Tom will follow a pattern of former senior public officials in taking on the chairmanship of Santander UK.

The post has been held in the past by Baroness Vadera, a Treasury minister during the 2008 meltdown, and Lord Burns, the former Treasury permanent secretary.

Sir Tom also held that latter role until his ousting during the shortlived Truss government, which led to him receiving a payoff of more than £350,000.

In addition to his position during the banking crisis, he was instrumental in devising the COVID-19 furlough scheme, which protected millions of private sector jobs during the series of lockdowns imposed on the British public.

He was widely respected among international banking regulators and finance ministers, and his sacking by Ms Truss sparked fury among senior civil servants.

Since leaving the Treasury, he has been appointed as chair of the European operations of Nomura, the Japanese bank.

At Santander UK, he will work closely with Mike Regnier, the former building society boss who has been its chief executive since 2022.

In recent months, there has been growing speculation that Santander UK’s parent is open to a sale of the business amid frustration about the scope and burden of British banking regulation.

Both Barclays and NatWest have been sounded out about a potential merger of their UK retail businesses with that of Santander UK, although formal talks have not progressed to a meaningful stage.

Ana Botin, Santander’s group executive chair, has appeared to publicly rule out a disposal, saying that the UK remains a “core market” for the group.

An attractively priced offer could yet gain Ms Botin’s attention, according to people close to the earlier talks.

One insider said, however, that Sir Tom’s recruitment was likely to dampen further speculation about a possible sale of the British business.

Shares in the Madrid-listed parent company, Banco Santander, have performed strongly in recent months, but fell by more than 8% on Friday as investors digested the fallout from President Donald Trump’s global tariffs blitz.

The company now has a market capitalisation of about €83.25bn (£70.7bn).

City sources said the search for Mr Vereker’s successor had been led by Heidrick & Struggles, the headhunter, in conjunction with Baroness Morgan, the former cabinet minister who sits on Santander UK’s board as its senior independent director.

This weekend, Santander UK said in a statement issued to Sky News: “Santander UK is conducting a thorough appointment process.

“The new chair will be announced once that process has concluded, including having obtained board and regulatory approval.”