WIREDGOV

Cllr Gary Porter will use his first keynote address as the Conservative Chairman of the Local Government Association to say councils hold the key to ending the nation's housing crisis and ensuring the Government's pledge to build 275,000 affordable homes by 2020 is met.

Councils hold the key to ending the nation's housing crisis and ensuring the Government's pledge to build 275,000 affordable homes by 2020 is met, the new leader of local government in England and Wales will say today (30/6).

Cllr Gary Porter will use his first keynote address as the Conservative Chairman of the Local Government Association (LGA) to warn of a growing skills shortage in the construction industry which is holding back vital housebuilding.

Cllr Porter will also use his speech to more than 1,400 local government leaders, councillors and government ministers, at the first day of the LGA's Annual Conference, to call for an end to restrictions hampering council efforts to build desperately-needed homes.

Demand for skills within the construction industry is up 54 per cent since 2013. However, there are 58 per cent fewer completed construction apprenticeships today than in 2009.

Councils warn this mismatch risks resulting in the construction industry being left without the skilled employees needed to deliver on the Government's ambitions for housebuilding.

To solve this crisis, the LGA wants funding and responsibilities over employment and skills services to be devolved to local areas.

This would allow councils, schools, colleges and employers to work together and ensure young people and the unemployed develop the vital skills to build, essential for creating the homes and jobs our communities need.

Cllr Porter is also today urging government to lift housing borrowing limits to allow councils to invest in housing and hand them the freedom to set Right-to-buy discounts and retain 100 per cent of the receipts locally without complex rules so they can replace housing sold through the scheme quickly.

The LGA said the benefits of building more affordable homes include a reduction to the £24 billion housing benefit bill and £2.5 billion cost of poor quality housing to the NHS.

The proposals form part of a new LGA report called ‘A Shared Commitment: Local Government and the Spending Review' and being launched today.

It outlines how a strong partnership with local government will support the Government in reducing the national deficit over the next five years and allowing councils to not only build new homes and increase employment but also support elderly and disabled people to live healthy, independent lives and improve public services.

Other recommendations include expanding the size and scope of the Better Care Fund. A separate transformation fund, worth at least £1 billion annually, should also be added to invest in preventative services. It can be funded through a share of VAT raised from sugary snacks and drinks.

Cllr Porter will say:

"Regardless of whoever won the election there would be less money in the system. That is why it is more important than ever that we sit down to co-design with government how we get better outcomes for less money.

"The Government has expressed a clear ambition to build more affordable homes and help more people own their own home. Local government has a central role to play to make this happen.

"Central to this is lifting housing borrowing limits to allow us to invest in new housing, giving us the freedom to set Right to Buy discounts and retain 100 per cent of the receipts locally.

"For too long there has also been a mismatch of centrally-set training and skills needed locally. We've trained too many hairdressers and not enough bricklayers.

"The solution is a wider devolution of public services and we need that sooner rather than later. Devolution will allow us to do more for our people. And we need all parts of the country to have the chance to play their part.

"Just look at health and social care. Bringing the two together will be cheaper and better for people. The Better Care Fund has transferred £1billion from the NHS to local government which means our elderly mums, dads and grandparents being cared for and living safely in their own homes or the local community rather than being stuck in hospital.

"By bringing local public services together in one local place we will be able to get a lot more out of the public's money – so better services for residents and at a lower cost."

Notes

Other recommendations include:

1. Between 2010/11 and 2013/14, a total of 204,000 affordable homes were built in England. However, a third (29 per cent) fewer affordable homes were built in 2013/14 than in 2010/11. Should the rate of current building continue, only 215,000 affordable houses would be built by 2020.
2. In 2013/14, there were a total of 232,500 vocational qualifications in construction, planning and the built environment – 2.7 per cent of all vocational qualifications. The number of construction qualifications has dropped by more than 8,000 on the previous year and remain 25,000 fewer than in 2008/09.
3. The number of homes sold under Right to Buy has doubled to 11,260 since 2012. A recent LGA survey of councils showed that 73 per cent of respondent said that the current system only allows them to replace half or fewer of homes they have sold.
4. The Conservatives became the largest party at the LGA following the local elections in May. Cllr David Sparks' one-year term will end on June 30 when the LGA's cross-party General Assembly will confirm Cllr Porter as the LGA's seventh Chairman. Cllr Sparks was the LGA's first Labour Chair since 2004.
5. The LGA's latest Future Funding Outlook analysis published last week predicts that if things do not change, local government will face a funding gap of £9.5 billion by 2020.
6. A copy of the LGA report: ‘A Shared Commitment: Local Government and the Spending Review' is available upon request.
   • Closing the social care funding gap – growing by at least £700 million a year – and for the Government to fully fund the implement the Care Act reforms introduced this year, and further reforms planned for 2016
   • The post-16 education budget to be transferred to local areas to allow councils, schools and colleges to design 16-19 provision around the local skills needs of employers
   • The Apprenticeship Grant for Employers should also be devolved to local areas to create new apprenticeship hubs to match the needs of employers and talents of young people
   • Councils to be devolved the power to set business rates in their local area and retain 100 per cent of all business rates income
   • Fully funding the concessionary fares scheme to protect vital bus services for elderly and disabled residents.