Part of 2. Questions to the Minister for Housing and Local Government – in the Senedd at 2:35 pm on 27 March 2019.
As I said, I do recognise the problem that the Member outlines, and we are working with authorities to put the skills back in where necessary, and actually to share scarce skills around local authorities in particular areas. You will know that we also encourage authorities to put strategic development plans in place, within which their LDP can sit, which gives them another level of defence against speculative housing developments and in negotiating some of the smaller developments.
But, actually, I want a complete cultural shift in local authorities. With the removal of the cap on the housing revenue account, they can now borrow in order to invest in social housing that they build themselves. So, it would not be looking for a developer to get an affordable development overall, with some social housing in it—they would be looking to compulsorily purchase the land, and build a sustainable community themselves, which neatly takes away the problem. However, they don't have all of the skills to do that either, so we're talking with them about sharing scarce skills, like compulsory purchase skills, for example, land assembly skills, strategic planning skills—all of the skills that go with reconstituting a building programme, or working in partnership with their local small and medium firms, to make sure that they become sustainable, and don't have this terrible problem, as the Member will be aware. A small firm has to invest a lot of money upfront in the planning system and might have a gap for its workforce, struggles to retain the skills and so on.
So, we're looking to do things on a number of fronts. First of all, to encourage the authorities to actually build the houses themselves, in sustainable developments that they put special planning briefs out for; to work in conjunction with local building firms, so that they can smooth over the cashflow, to have the building accounts, and so on, that many colleagues have spoken about over the years; and, thirdly, to put in place a strategic plan, across a number of authorities, that identifies those housing sites, so that the land value uplift from that goes back to the local authority and not into the developer's pocket.