黑洞社区

The government seems to be imploding before our eyes, but some ministers are ploughing on regardless. The business secretary Jacob Rees-Mogg has promised another clear-out of 鈥淓U regulation鈥�, the only noticeable impact of which is to create huge uncertainty for business.

Yesterday at a meeting I attended in Birmingham, he offered up some tinkering over the way in which mobile phone masts are inspected as an example of the supposedly deeply onerous regulations that he would be sweeping away.

Like Kwarteng鈥檚 unwanted 45p tax cut, this is just pointless fiddling that nobody has asked for and won鈥檛 make the slightest difference to UK competitiveness. Such  detachment from the real economic crisis bearing in on business seems to pervade the party.

>> Also read: Day two at the Tory conference: U-turns and Brexit cast shadow over growth agenda

>> Also read: Day one at the Tory conference: Industry cries out for stability 鈥� but U-turns and uncertainty continue

Underlying it all is the fundamental change wrought on the party by Brexit. From being the party of economic orthodoxy, the Conservatives have metamorphosed into a mystical cult. At the core of their new philosophy is a belief that miracles can happen, but only if you ignore the experts.

It was during the 2016 EU referendum campaign that Michael Gove famously said: 鈥淭he people of this country have had enough of experts.鈥� Now we are seeing the results. 

Everywhere you turn at the Conservative Party conference housing and construction industry leaders are asking for clarity on policy and regulation. Meanwhile the Tories seem to be in a parallel economic universe, where regulatory uncertainty is what business is crying out for.

The sheer quantity of squandered knowledge and expertise is staggering. The referendum may have been six years ago, but it ushered in a protracted period of uncertainty and missed opportunity, now hugely exacerbated by a pandemic and energy crisis.

Ronald Reagon once said that the 鈥渘ine most terrifying words in the English language are, 鈥�I鈥檓 from the government, and I鈥檓 here to help鈥�.鈥� It is perhaps ironic that many in business now clearly feel the same way about this administration, run by the self-proclaimed 鈥減arty of low taxation and small government鈥�.

The Conservatives have overseen the erection of huge barriers to trade, alongside an explosion in spending and borrowing, while tax has reached record highs. If this is the best this government can do, business鈥檚 best hope for the near future may simply be that the Conservatives stop trying to help.

Retrofitting and skills

Retrofitting and insulating British homes should be a win-win for everyone. Contractors and suppliers get a steady stream of work, while consumers get warmer homes and lower energy bills. And yet this government has singularly failed to rise to the challenge.

There are many Conservatives at this conference, including ministers, who share industry鈥檚 frustration, but few seem to have any clear strategy for getting things moving.

Defending the government鈥檚 performance on net zero in housing 鈥� and when asked why we are still allowing houses to be built that will need retrofitting 鈥� Paul Scully said the government was 鈥渘ot trying to get to net zero tomorrow. We鈥檙e trying to get there by 2050.鈥�

Brian Berry of the Federation of Master Builders said: 鈥淚 agree this is a nonsense, to still build homes that need to be retrofitted, and it doesn鈥檛 make sense. We need to look at other European countries that are ahead of us on retrofit.鈥�

He then went on to say, 鈥淲e need a green revolution, [and retrofitting] 29 million homes should be treated as a major infrastructure project,鈥� before adding, 鈥渞etrofit would reduce emissions, improve lives and create much-needed jobs鈥�.

There鈥檚 a huge need for clarity鈥� We need consistency. If this is going to work, this needs consistency

Sandi Rhys Jones, Chartered Institute of 黑洞社区

Sandi Rhys Jones, vice-president of the Chartered Institute of 黑洞社区, spoke of her frustration at the lack of progress. 鈥淚 find it breathtaking. It鈥檚 50 years since we started talking about loft insulation. We should be better than this!鈥�

She said the workforce needed to be urgently up-skilled and government needed to help create a stable market for retrofit. 鈥淭here鈥檚 a huge need for clarity鈥�, she said.

鈥淲e need consistency. If this is going to work, this needs consistency.鈥� She pointed to the Irish 鈥渙ne-stop shop鈥� model, where citizens can get advice on retrofit and get a list of accredited suppliers.

There was collective agreement that more, quality apprenticeships were needed to address the perennial issue of getting young people into construction. 鈥淎pprenticeships are a massive tool to get young people into good jobs 鈥� you don鈥檛 have to go to university to get a great career,鈥� said Scully.

The lack of a unified system of certification for retrofit and competency was highlighted as an issue. And there was support from Berry for targets on retrofitting. He argued that they were the best way to measure progress, before adding that retrofit passports would enable owner-occupiers and renters to 鈥渓og what work has been done鈥�.

If past performance is the best indicator of future results, we may all be waiting some time before we see a fully coordinated national effort on this front.

Energy security

With Vladimir Putin waging an energy war on the West, net zero has taken on an additional security dimension 鈥� and the potential to gain new traction among elements of the Conservative Party traditionally hostile to energy efficiency.

Perhaps venting frustration at some of the environmental foot-draggers in his own party (who seem to be in the ascendant), Bim Afolami, Liz Truss鈥檚 former PPS, said that 鈥渢hese people who think this green stuff is all mumbo jumbo [need to understand] it鈥檚 not even primarily an environmental argument, but about security of energy supply鈥�.

Climate minister Graham Stuart said, 鈥淥ur energy security is pretty good鈥�, perhaps not entirely convincingly. 鈥淟ooking at all scenarios coming into the winter, we are reasonably secure, but there are always risks,鈥� he added.

Talking about the need for a long-term plan for constructing nuclear power stations, Graham said the UK and its energy allies needed 鈥渁 regular drumbeat of construction鈥� that would deliver a 鈥減ipeline for business to invest鈥�.

Dhara Vyas, director of Energy UK, said 鈥渄emand reduction is now more important than ever鈥�. She also argued that 鈥渨armer, safer, more comfortable homes鈥� would have huge knock-on physical and mental-health benefits, saving the NHS money in the long term.

Afolami said that he believed the public was by and large behind net zero. 鈥淚鈥檝e never met anyone who said, 鈥業鈥檓 going to vote for you to get more growth鈥�,鈥� he observed, before noting that voters were open to a message about net zero homes 鈥渂ecause your bill will be lower, your house will be warmer, your life is going to be better鈥�.

How to get Britain building

I have got used to the newly appointed housing minister Lee Rowley鈥檚 daily admissions of ignorance at this conference. Tuesday did not disappoint, with Rowley getting his excuses in early during a Spectator event sponsored by the Earls Court Development Company.

鈥淏y the way, I鈥檓 on day 27,鈥� he said, 鈥渟o this is emerging thinking. You might have to come back to me in a few months.鈥�

The emerging thinking was around what he describes as the 鈥渂road levers鈥� that government can use to improve levels of home ownership. Rowley identified these as improving supply in order to remove barriers to entry, and providing support to young buyers so that their ongoing costs could be covered.

Elsewhere at the conference there have been suggestions that this might involve longer, fixed-term mortgage deals, although Rowley offered no such details yesterday.

Muniya Barua, managing director of Business LDN (previously London First) said that the cost of London鈥檚 housing and the issue it created over staff retention, was a longstanding concern of her organisaiton鈥檚 members. 

With reference to planning, she said: 鈥淟et鈥檚 not rip up the system 鈥� there鈥檚 something to be said for just letting a system bed in.鈥�

As with almost every business representative at the conference, she also asked for certainty, pointing to the concerns raised due to 鈥渓ots of rumours about the fate of the Levelling up and Regeneration Bill鈥�.

Barua said that 鈥渨here the government could be really bold is on the green belt鈥�, arguing that much of it was 鈥渨asteland鈥� and 鈥渟crub鈥�. She also called for more funding for planning services, saying 鈥渋t would be worrying if planning departments saw further cuts鈥�.

Nicholas Boys Smith, director of Create Streets, said 鈥渉ousing is an existential crisis for the UK and the Conservative Party鈥� and made the case for what he is calling 鈥渂eautiful, gentle density鈥�.

Acknowledging that many people 鈥渉ave lost faith as a society in planning, and developers鈥� ability to develop housing we like鈥�, Boys Smith made the case for clearer design guidance, by which he means design codes.

He called for traditional town centres to be reinvigorated as essential civic hubs, describing this as being about 鈥渋ntensification, not necessarily densification鈥�.

Arguing that 鈥減eople felt development was something done to them鈥�, Boys Smith made the case for a more direct contribution from developers towards local amenity. He suggested scrapping Section 106 agreements and replacing them with a 鈥渂etterment tax鈥�.

Rowley then indicated that 鈥渟treet votes鈥� (another idea advocated by Create Streets) would likely form part of an upcoming planning statement. These would allow residents to vote for the urban densification of their residential neighbourhood, also directly benefiting from any associated uplift in the value of their property.

As with Boy鈥檚 Smith鈥檚 proposed introduction of a betterment tax, the thinking is that incentivising communities is the best way to encourage new housing in a sustainable way that has long-term community support.

Regarding rumours that the government is due to backslide on housing targets, Boys Smith said, 鈥淚n principle you wouldn鈥檛 have targets鈥�, before acknowledging that it was 鈥渉ard to see a route where [removing targets] wouldn鈥檛 reduce supply鈥�.

Rowley said that the government would 鈥渃ome out with more policies in due course鈥� before slipping out to his next event.

Robert Jenrick

The current minister of state for health (formerly secretary of state in charge of housing and levelling up) was in combative mood during a discussion on net zero and housing. Noting the current failure of the government to meet its housing targets, he asked, 鈥渨hy would young people vote Conservative?鈥�

Jenrick claimed that housing completions had reached 240,000 a year while he was in charge, but that volumes had since fallen back due to a decision 鈥渢o adopt an anti-housebuilding approach about 12 months ago鈥�. He added: 鈥淚 hope this will change.鈥�

The targets were unpopular because they were successful. If we鈥檙e going to scrap them, we鈥檙e going to be starting from two steps back

Robert Jenrick

He said he was 鈥渟uspicious of terms such as 鈥榖uilding homes in the right places鈥� 鈥� as they were 鈥渦sually used by people who didn鈥檛 want them anywhere near them鈥�. 鈥満诙瓷缜� homes in the right places鈥� is a term that Lee Rowley has used repeatedly at events over the past three days.

Jenrick defended housing targets, saying: 鈥淭he targets were unpopular because they were successful. If we鈥檙e going to scrap them, we鈥檙e going to be starting from two steps back.鈥�

He also noted that 鈥渨here you build homes is contentious everywhere鈥�, before adding that 鈥渓ocal communities need to evolve 鈥� you need homes for young people鈥�.

Jenrick also criticised Manchester combined authority mayor Andy Burnham, arguing that he was unnecessarily pushing new housing towards the edge of the city. 鈥淏urnham needs to take a look at Richard Leese [the former Labour leader of Manchester City Council] and bring forward more housing on brownfield sites in central Manchester,鈥� he said.

Jacob Rees-Mogg

The secretary of state for business made his commitment to housebuilding clear yesterday, telling a Centre for Policy Studies event: 鈥淲e need to build more houses 鈥� we have needed to for a long time鈥�.

When I asked Jacob Rees-Mogg about the government鈥檚 commitment to the 300,000 housing units per year target, he told me, 鈥淭hat target hasn鈥檛 been changed鈥�, before adding that 鈥渋t鈥檚 a matter for Simon Clark鈥� and 鈥渨e need regulation to allow that to happen鈥�.

Regarding net zero and retrofitting he told me: 鈥淚f you live in a listed building, it鈥檚 almost impossible to retrofit. I want intelligent net zero.鈥�

He then referenced Kwasi Kwarteng鈥檚 announcement of 拢1bn for retrofitting of housing association housing stock, pointing out that this was a sensible place to start as the  associations were able to roll out such a programme most efficiently.

Rees-Mogg then launched into a familiar defence of low tax and deregulation. 鈥淚 support all tax cuts at all times and everywhere,鈥� he said in response to a question about whether he had supported Kwarteng鈥檚 45p rate cut. 鈥淟ow taxes are a good thing, but you can鈥檛 work against the political reality.鈥�

Asked whether the Conservative Party was becoming ungovernable, he said: 鈥淚 don鈥檛 think discipline is collapsing.鈥�

Electric vehicle infrastructure

Huw Williams, chair of the transport select committee, spoke yesterday about the roll-out of electric vehicles (EVs) and their associated infrastructure. The Johnson government had set a target for phasing out petrol cars by 2030.

Williams defended the 鈥渂ig-bang Johnson way of doing things鈥� against accusations that, before creating a cliff-edge, government should have first implemented the necessary charging infrastructure 鈥� something he disparaged as 鈥渢he German approach鈥�.

By way of justification, Williams said: 鈥淎s a smaller nation, with lots of people, we needed to do something sharpish, and I think we have done.鈥� 

He also highlighted conflicting estimates about the number of charging points that would be required nationally, with predictions ranging from 鈥�250,000 to nine million鈥�,  according to Williams.

Although the government has allocated 拢1.6bn to roll out of charging infrastructure, Williams said: 鈥淚鈥檓 concerned there will be a raid on that budget.鈥� He went on to argue that there was 鈥渘o point government setting targets and not providing seed funding to create the market鈥�.

He also expressed scepticism about the National Grid鈥檚 preparedness for mass charging of EVs, pointing to studies suggesting that, within some areas, having even one in five households charging their car in the evening could overload the system.