Agenda item

To receive and consider a written report from the Leader on the work of the Cabinet.

 

A written report was received from the Cabinet Leader, Councillor James Alexander, on the work of the Cabinet.

 

The Cabinet Leader offered his condolences to the family and friends of Megan Roberts and Ben Clarkson.

 

Thanks were expressed to Darren Richardson – Director of City and Environmental Services  and to Andrew Crookham – Principal Accountant for their services to the Council. 

 

A       Questions

 

Notice had been received of eleven questions on the written report, submitted by Members in accordance with Standing Orders.  The first three questions were put and answered as follows and Councillor Alexander undertook to provide Members with written answers to the remaining questions:

 

(i)      From Cllr Warters

 

“Can the Council Leader explain how his desire to class York as a top ten European city for economic growth by 2015 will be reconciled by the clearly expressed desire, as evidenced by the Local Plan consultation responses of existing York residents, to maintain the environment and quality of life in York by opposing the development of Green Belt land for his over enthusiastic housing targets?”

 

The Leader replied:

“By ensuring there is balance between protection of green spaces and new developments for homes and businesses. This has to be done in context of the needs of York and Government policy - both of which show no new developments is not an option. Without a local plan which takes into account planned growth, there is no protection of our green spaces.”

 

(ii)      From Cllr Steward

 

“With the leader wanting to know whether others are ‘in favour of rent capping’ can he outline the system he is proposing so others could at least have a chance of knowing what he is seeking their agreement to?”

 

The Leader replied:

“I am proposing that mechanisms are looked at to introduce rent capping in - even if on a temporary basis. This could reduce the nation's housing benefit bill and ensure funds are available for grants to kickstart stalled construction. It could also fund large amounts of social housing. Once the housing market is repaired through an increase in supply, there is a legitimate argument to question whether a rent cap is required any longer.

 

Administration of such a cap could be taken at a regional or sub-regional level. I personally believe that councils are too small to take on board this function and that it would be inappropriate for politicans to set rent-caps of their own electors. I would advocate a national independent body to set rent caps based on median income along combined authority or LEP geography.”

 

(iii)     From Cllr Aspden

 

“Could the Cabinet Leader explain his decision to re-join the NYYER LEP Board in February?”

 

The Leader replied:

“I have explained here in full council and in various speeches over the past year that what we sought was clarity over funding streams through local enterprise partnerships. It made no sense for York to have to compete against itself for fair funding on two different and potentially opposing economic plans. I am pleased the Government took this into account and has given us assurances over these funds. I also have to say both Local Enterprise Partnerships of which York is part are working well together. For example the York, North Yorkshire and East Riding Local Enterprise Partnership is backing York securing larger funding for outer ring road improvements through the Leeds City Region than can be secured through the York, North Yorkshire and East Riding Local Enterprise Partnership.

 

There has been recognition from Government over how both Local Enterprise Partnerships’ growth plans need to work together and this has been recognised in both strategic economic plans and growth bids.

 

I am comfortable we have the assurances we need and we are now in a position where our membership of each Local Enterprise Partnership is advantageous rather than detrimental as it was.

 

I am also looking forward to some announcements from each Local Enterprise Partnership over funding I have argued for - some of which was not going to be awarded before I argued for it.”

 

(iv)    From Cllr Cuthbertson

 

“Does the Cabinet Leader agree with me that remaining part of the EU is vital to York’s economy and would he agree that UKIP and Conservative plans to pull Britain out of Europe would put local jobs at risk?”

 

Reply:

“Yes.”

 

(v)     From Cllr Warters

 

“Whilst welcoming the Council Leader’s acknowledgement that the student let landlords have contributed to increasing house prices in York and driving up rental costs does he now regret the Labour Groups policy of a 20% acceptability threshold when accessing new HMO planning applications?”

 

Reply:

“No.”

 

(vi)    From Cllr Runciman

 

“When the Cabinet Leader claims that housing numbers in the Draft Local Plan have been unanimously backed by Leaders in North Yorkshire and East Riding on the NYYER LEP – can he confirm that he is referring to Cllr John Weighell (North Yorkshire County Council), Cllr Tom Fox (Scarborough Borough Council), Cllr Stephen Parnaby (East Riding) and Cllr Chris Knowles-Fitton (Craven)?”

 

Reply:

“Yes. All council leaders across York, North Yorkshire and East Riding back the Local Enterprise Partnership of York, North Yorkshire and East Riding in its growth plans to double housing across the Local Enterprise Partnership geography by backing the highest possible housing numbers in all agreed or draft local plans.” 

 

(vii)    From Cllr Reid

 

“Would the Leader confirm how many new homes were built in York during the first 3 years of the last (majority) Liberal Democrat led Council between 2003 and 2006 and contrast that with the numbers built under the current majority Labour administration (2011-2014)?”

 

Reply:

“I can indeed but you are not comparing like with like as the national economy growing more substantially under a Labour Government than the present coalition. I know you will try to argue Liberal Democrats therefore have a better record on housing than Labour but the facts do not support this. In recent years Liberal Democrats have opposed almost every house building scheme to come forward and made little progress on any of the large brownfield sites.

 

2003/04                                  669 (gross)         525 (net)

2004/05                                  1193 (gross)       1160 (net)

2005/06                                  949 (gross)         906(net)

 

2011/12                                  354 (gross)         321 (net)

2012/13                                  540 (gross)         482 (net)

2013/14 to 1^st Oct 2013          179 (gross)         159 (net) [latest figures available]

 

It can be argued that the figures in 2003/04 and 2011/12 were both as a result of policies of previous administrations as it would take time for any change in policy to filter through into housing completions.

 

Labour’s Get York Building initiative has already seen a 600% increase in planning consents since 2011/12 with the first three quarters of 2013/14 showing a year-on-year increase of more than 233% alone. I expect to therefore see greater numbers of completions in the coming years. Our aim is to see increasing numbers of new homes and the private sector and York, North Yorkshire and East Riding Local Enterprise Partnership believes our aim of over 1,200 homes per year is deliverable. Instead of housing numbers reducing over the course of our term of office they will increase – something the Liberal Democrats didn’t manage to achieve.”

 

(viii)   From Cllr Ayre

 

“House prices in York have fallen from the high seen in 2008 and have been stable now for a period of 5 years (Source House price index). Would he therefore agree that the provision of more Council homes to rent, and in particular single person flats, would be the quickest and most effective way of  addressing affordable  housing shortfalls in the City and, therefore, would he agree to use part of the surplus on the housing account to purchase empty homes on the open market?”

 

Reply:

“ I am surprised by this question as Liberal Democrats have previously distributed leaflets in York saying that Labour plans for new homes will ensure homes are given over to immigrants and that this will lower house prices. Now the councillor is arguing they are already falling - I don't think we have much mass immigration in York leading to the picture inaccurately painted in these leaflets. I was very surprised that when I spoke recently at a housing conference one of the national speakers used this leaflet as a national example of the nasty politics that surrounds simply trying to supply the right land allocation for homes in this country for people to have access to homes they can afford.

 

I would question the basis of arguing York's house prices have fallen. Estate agents I speak to say the reverse.

 

I refer the councillor to some recent news reports:

 

·        "House prices in York have soared to nearly six times the average buyer’s earnings – making it one of the most expensive places to live in the UK, a new report says " (The Press: York among the most expensive places in Britain to buy a house, 10th March 2014).

 

·        "The average wage in York would need to rise by £22,000 to keep up with soaring house prices, new research has shown" (The Press: £45,786 - what the average wage in York should be to match house prices, says charity, 12th February 2014).

 

·        " House prices are going up as a result" (The Press: Is York's economy in recovery?12th September 2013)

 

I am always in support of ways to increase social housing and although there isn't as large a surplus as the councillor imagines I will look into the possibilities. I would like to ask a question in reverse though? Why did he not advocate this when Liberal Democrats led the council for eight years? We might not have the extent of the housing crisis we have now in York if measures were actually taken to promote an increase in council housing during this tenure.”

 

(iv)    From Cllr Warters

 

“As well as driving up the cost of purchasing and renting homes, the student let HMO market in York also contributes to pressure on council tax levels, as the 3,677 households receiving the educational exemption place a burden of £3.4m onto the council tax payers of York.  Does the Council Leader believe this is fair and indeed affordable given that with Labour’s HMO Policy 20% of York’s housing could potentially become non-council tax paying?”

 

Reply:

“Government says that non-payment of council tax by students is taken into account in allocating funding to the council annually. The burden as the councillor describes is not as articulated.”

 

(x)     From Cllr Reid

 

“Is the Leader aware that many city-centre traders are reporting an average 15% reduction in sales since the Lendal Bridge restrictions were introduced and that one relatively good Christmas – the result entirely of a recovering national economy and benign weather conditions - cannot make up for these losses?”

 

Reply:

“I would like to ask the councillor to look back at her question and try and reconcile her statement. If the good Christmas York enjoyed was "entirely" due to a recovering national economy, why did other cities or large companies not see the trading figures enjoyed here in York? If York businesses are so dependent on the national economy, then why would the trial traffic restriction of a bridge be responsible for the 'entire' loss in trade some are reporting?

 

I suggest the councillor continues to argue against the trial restriction that her previous administration called for to show that she and her colleagues are friends of the motorist whilst calling for York to be the greenest city in the north. Liberal Democrats do irony very well.”

 

(xi)    From Cllr Warters

 

“The Council Leader talks of the UK housing market being broken, of rising demand and the housing market being repaired by increasing supply.  The South East of England has consistently seen huge increases in house building and yet house prices remain stubbornly high.  No matter what level of housing is provided in the South East, and indeed the wider UK, demand outstrips supply.  Does the Council Leader agree that one way to rebalance the UK housing market would be to cut demand by encouraging the current Government to make good on manifesto promises to drastically cut the previous Labour Government’s immigration levels?”

 

Reply:

“The first part of your question justifies why I have said repeatedly that an increasing in the number of homes in York will not lower house prices - because to achieve this supply would have to outstrip demand and this will not happen in an attractive city like York. An increase in housing supply would however stem the rate of increase in house prices - allowing wages a chance to catch up so that local residents have more of a chance of being able to afford their own home.

 

I am used to the councillor being anti-traveller, anti-student, anti-immigrant and using the worst type of politics of division and fear for his own ends - but in terms of answering the question logically, I would understand the argument if York's demand for housing was based on immigration. I think you can tell by the residents on Derwenthorpe that we are not talking about new homes for immigrants. Furthermore there is a large amount of property being bought by foreign investors that remain empty in this country and that has nothing to do with immigration and these homes are in some of the country's wealthiest areas where hardworking people in this country can never afford to buy property.

 

Labour's politics is not about fear or division, it is about unity. We will ensure those York residents who work hard and want to get on can rent or buy their own home for their family whilst the councillor continues to peddle lowest common denominator politics.