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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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Politics

Duty First Minister ‘optimistic’ Wales will retain water pollution revenue

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THE DUPUTY First Minister told the Senedd he is optimistic that revenue generated by UK-led reforms to water pollution regulations will stay in Wales.

Huw Irranca-Davies, who is also climate change secretary, appeared before a Senedd committee for scrutiny on Westminster’s water (special measures) bill on October 16.

Pressed by the Conservatives’ Janet Finch-Saunders about funds from pollution fines going to the UK Treasury, he said the Welsh Government wants revenue to stay in Wales.

Mr Irranca-Davies told the committee: “That’s the nature of the engagement we currently have with the UK Government. It’s probably fair to say those discussions are going well.”

Plaid Cymru’s Delyth Jewell raised Natural Resources Wales’ evidence on cost recovery, saying fines resulting from prosecution would return to the UK Treasury.

“We’re very cognisant of that …,” the minister replied. “We’re in discussions with the UK Government on exactly that point – making sure the funds … would actually be returned.”

He was optimistic as he pointed to progress on clawing back other funds under the bill.

Llŷr Gruffydd, who chairs the climate change committee, asked whether the bill is in line with Welsh Government policies.

Mr Irranca-Davies said the bill is aligned and builds on progress, providing an opportunity to collaborate on a UK basis as rivers “don’t respect national boundaries”.

He recognised the need to make sure the measures fit Welsh Water’s not-for-profit model.

Calling for automatic penalties, Ms Finch-Saunders warned it takes “so long” to get Welsh Water and NRW to respond to pollution incidents.

The Tory asked: “Do you actually believe we’ve got the right enforcement procedure?”

Mr Irranca-Davies said Welsh ministers fully support proposals for automatic penalties for certain offences which will be set out in secondary legislation in the Senedd.

Julie Morgan asked about civil sanctions for water industry offences.

Mr Irranca-Davies told the Labour backbencher the bill would modify the required standard of proof from beyond reasonable doubt to the balance of probabilities.

John Griffiths, also a Labour Senedd member, asked why Wales would not be included in a legal requirement for pollution incident reduction plans to hold the industry to account.

He pointed out that Welsh Water has been categorised as “lagging” on water pollution.

Mr Irranca-Davies said: “On reflection, we’ve come to a different conclusion on this,” so ministers will be seeking an amendment to the bill to extend the requirement to Wales.

The Senedd will vote on consent for the bill because elements fall within devolved powers.

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Farming

Calls for pause on council farm sales dismissed

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THE SENEDD narrowly rejected calls to temporarily halt the sale of council-owned farms amid concerns they are disappearing at an alarming rate due to financial constraints.

James Evans led the debate calling on the Welsh Government to impose a Wales-wide temporary ban on the sale of council-owned farms.

He said: “These farms are not just pieces of land, they’re the lifeblood of rural communities. For generations, they have provided opportunities for our young farmers….

“But now, these farms are being sold off at an alarming rate. And the consequences can be devastating, not just for farming, but the way of life in our rural countryside.”

The Conservative said council-owned farms offer young people who are “locked out” of the agricultural sector a chance to get on the farming ladder through affordable tenancies.

“Without them, we risk shutting the door on the next generation,” he warned.

Mr Evans pointed to 2023 statistics showing there are 972 council-owned farms, covering 21,000 hectares – “a huge proportion of our farms across Wales”.

Calling for a moratorium, the shadow rural affairs secretary said: “We need to pause. We need to take a breath and fully assess the long-term impacts of these sales.

“It’s about giving ourselves time to develop a proper, sustainable strategy for the future of farming in Wales.”

Mr Evans, who represents Brecon and Radnorshire, said many of the farms are in Welsh-speaking communities as he raised concerns about risks to the language.

He told the Senedd: “I urge this Welsh Government to act with urgency. We cannot sit back and watch as our council farms disappear one by one.”

Backing the motion, his Plaid Cymru counterpart Llŷr Gruffydd said all parties need to hold their hands up about the issue becoming a “political football”.

He said: “The biggest irony, maybe, is that much of this is being driven as a result of Conservative-led austerity, which has put – [interruption] no, no, no – that’s the irony of the situation but I will desist from making that point.

“Look, they have been left with no other option, many of these councils.”

Mr Gruffydd, who has been calling for a national summit on the future of council farms since 2016, urged the Welsh Government to grasp the nettle.

He said: “Ultimately, yes, the responsibility rests with local authorities but the government can’t wash its hands of the problem.

“These farms are a national asset and there’s a pressing need for leadership.”

Responding to the debate on October 16, Huw Irranca-Davies said council farms are important assets offering an invaluable route into agriculture for young people.

Wales’ rural affairs secretary told the Senedd the 2023 Agriculture Act does not give ministers powers of control over councils to sell land.

Mr Irranca-Davies, who is also deputy first minister in the Welsh Government, said: “The sale of land and decisions about how they approach it is for local authorities.”

He added: “We do not have a statutory basis to intervene in the sell-off of land, so the call for a moratorium is misplaced.”

Senedd members voted 25-22 against the Conservative motion. The motion as amended by the Welsh Government was agreed 25-13 with nine abstaining.

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Climate

Ministers set to ‘accelerate’ planning decisions in clean energy push

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WALES’ economy secretary vowed to make speeding up planning decisions a top priority as part of a push towards clean energy.

Rebecca Evans committed to a sector deal with Wales’ renewable energy industry, which she said will include action to accelerate planning decisions and provide greater clarity.

Ms Evans warned council planning departments were “stripped back” due to austerity as she provided an update on the green economy to the Senedd on October 15.

She said: “For their part, I expect the sector to support our ambitions for local ownership and the development of skills and investment in our communities, including the environment.”

The economy secretary said the UK Government’s industrial strategy, unveiled on Monday, identified the role of green industries in driving economic growth.

Ms Evans also pointed to a Welsh Government consultation on implementing reforms aimed at streamlining the consenting process for major infrastructure projects.

She argued Wales is leading the way in establishing public energy companies, pointing to Trydan Gwyrdd Cymru and Ynni Cymru, which will develop projects and retain income.

The minister told the debating chamber that Wales has an onshore development pipeline of more than 5GW, and a further 18GW through fixed and floating offshore wind.

Ms Evans added that the Welsh Government will hold a consultation on carbon capture and storage technologies as well as hydrogen in the coming weeks.

She said: “Wales has its place in history using our natural resources to power the industrial revolution but we enter a new era where the power we need across our economy and wider society supports a new industrial transformation for our economy and our communities.”

Samuel Kurtz warned Wales is far from unlocking its potential for renewable energy.

The Conservatives’ shadow economy secretary said investors and developers are being held back by countless planning barriers.

He told the Senedd: “It is vital that these obstacles, like delays in consenting, planning, grid-capacity issues, skills shortages and supply-chain readiness are addressed swiftly.”

Ms Evans recognised grid infrastructure constraints, saying the first minister has made the case and the UK Government “absolutely does get that”.

Mr Kurtz also raised concerns about a skills shortage and urged the Welsh Government to “tear down” barriers for small businesses in the supply chain.

His Conservative colleague Paul Davies called on ministers to prioritise investment that leverage private sector funding to make Wales a global leader.

Luke Fletcher, Plaid Cymru’s shadow economy secretary, warned of history repeating itself.

“Wales is, once again, being cast in the role of resource provider,” he said.

“Wind, wave, land and sea bed are exploited while the financial gains and innovation returns are largely captured by external actors.”

Calling for more powers, Mr Fletcher pointed out that larger renewable energy projects that exceed 350MW remain outside of Welsh control.

He said the UK Government has roundly rejected calls to devolve the Crown Estate despite Welsh Labour’s support and powers already being given to Scotland.

Plaid Cymru leader Rhun ap Iorwerth expressed concerns about plans for solar farms in his Ynys Mon constituency covering thousands of acres of good agricultural land.

His predecessor Adam Price accused the UK Government of creating a narrative that projects must be large scale, swift and low cost regardless of other considerations.

Similarly, Jane Dodds, for the Liberal Democrats, called for investment in cable ploughing to avoid the use of pylons snaking through the countryside.

And Carolyn Thomas raised concerns about fossil fuel companies “greenwashing” as she criticised plans for a “massive” carbon dioxide pipeline from north Wales to Liverpool.

Alun Davies, a fellow Labour backbencher, warned it will be difficult for the Welsh Government to achieve any of its ambitions without devolution of the Crown Estate.

Calling for equitable treatment, he suggested some parts of Wales, such as his Blaenau Gwent constituency, have shouldered more responsibility for clean energy than others.

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