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Government failing to properly monitor public land sell-offs, says report Government failing to properly monitor public land sell-offs, says report
(about 1 hour later)
The government’s programme to sell off public land for new housing is in chaos, with no record of how much money has been raised by sell-offs or how many homes have been built, parliament’s spending watchdog has found. The government’s programme to sell off public land for new housing is in chaos, with no record of how much money has been raised by sell-offs nor how many homes have been built, parliament’s spending watchdog has found.
In June 2011, the then housing minister Grant Shapps announced plans to “release enough public land to build as many as 100,000 new, much-needed, homes and support as many as 25,000 jobs by 2015”.In June 2011, the then housing minister Grant Shapps announced plans to “release enough public land to build as many as 100,000 new, much-needed, homes and support as many as 25,000 jobs by 2015”.
But a report by the public accounts committee has found that the Department for Communities and Local Government (DCLG) cannot demonstrate the success of the land disposal programme in addressing the housing shortage or achieving value for money.But a report by the public accounts committee has found that the Department for Communities and Local Government (DCLG) cannot demonstrate the success of the land disposal programme in addressing the housing shortage or achieving value for money.
This is because civil servants have not collected information on the actual number of houses built or under construction, the proceeds from land sold or whether the parcels of land were sold at market value, the report concluded.This is because civil servants have not collected information on the actual number of houses built or under construction, the proceeds from land sold or whether the parcels of land were sold at market value, the report concluded.
Instead, they have focused only on a notional number for potentialcapacity for building houses on the land sold by individual departments. The findings will embarrass David Cameron, who promised in 2011 that he would sell off enough public land to ease the housing crisis by this year. Instead, they have focused only on a notional number for potential capacity for building houses on the land sold by individual departments. The findings will embarrass David Cameron, who promised in 2011 that he would sell off enough public land to ease the housing crisis by this year.
Meg Hillier, the Labour MP who chairs the committee, accused the government of showing an alarming complacency over the disposal of land as she warned that there was no means of knowing whether taxpayers had secured a good deal or not.Meg Hillier, the Labour MP who chairs the committee, accused the government of showing an alarming complacency over the disposal of land as she warned that there was no means of knowing whether taxpayers had secured a good deal or not.
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She said: “It is an insult to taxpayers that the potential economic benefits arising from the sale of public land should be put at risk by such shortsighted government mismanagement. With the next housing target already announced, the government needs to learn from its mistakes.”She said: “It is an insult to taxpayers that the potential economic benefits arising from the sale of public land should be put at risk by such shortsighted government mismanagement. With the next housing target already announced, the government needs to learn from its mistakes.”
In June, the National Audit Office (NAO) examined claims made in the runup to the general election that the Tories had fulfilled their goal and sold land for more than 109,000 new homes. The auditors found that land for 15,740 of these properties was sold off under Tony Blair and Gordon Brown, some as far back as 1997.In June, the National Audit Office (NAO) examined claims made in the runup to the general election that the Tories had fulfilled their goal and sold land for more than 109,000 new homes. The auditors found that land for 15,740 of these properties was sold off under Tony Blair and Gordon Brown, some as far back as 1997.
They also disputed whether the government should have included land sell-offs meant for another 9,000 homes after they discovered that the land actually belonged to privatised entities such as Royal Mail and the now-defunct British Waterways. They also disputed whether the government should have included land selloffs meant for another 9,000 homes after they discovered that the land actually belonged to privatised entities such as Royal Mail and the now-defunct British Waterways.
Auditors said the Conservative-Liberal Democrat coalition government had applied a wide interpretation of the plots of land that could be included in the tally and criticised the target the government had set after finding no economic evidence to support it.Auditors said the Conservative-Liberal Democrat coalition government had applied a wide interpretation of the plots of land that could be included in the tally and criticised the target the government had set after finding no economic evidence to support it.
The figures measure a notional number of expected homes rather than how many properties are actually being built, and some developments could take up to two decades to complete, the auditors said.The figures measure a notional number of expected homes rather than how many properties are actually being built, and some developments could take up to two decades to complete, the auditors said.
MPs have re-examined the NAO’s findings and called for the DCLG and the Homes and Communities Agency to better assess if the scheme offers value for money as it seeks to hit the new target. They said: “Taxpayers deserve to know how many homes have actually been built.”MPs have re-examined the NAO’s findings and called for the DCLG and the Homes and Communities Agency to better assess if the scheme offers value for money as it seeks to hit the new target. They said: “Taxpayers deserve to know how many homes have actually been built.”
The committee expressed its dismay at the failure of the DCLG to be specific on how many jobs had been created by the programme. It said: “With much greater ambitions for land disposals in the new parliament, the department must address the weaknesses in the current programme, and the department has accepted that it needs to improve its general monitoring.The committee expressed its dismay at the failure of the DCLG to be specific on how many jobs had been created by the programme. It said: “With much greater ambitions for land disposals in the new parliament, the department must address the weaknesses in the current programme, and the department has accepted that it needs to improve its general monitoring.
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“If it is to oversee the new programme effectively, then this must specifically include tracking sale proceeds and progress with the actual construction of new homes, and oversee the programme in a way that gives parliament and the taxpayer much greater assurance over the value for money achieved from all disposals.”“If it is to oversee the new programme effectively, then this must specifically include tracking sale proceeds and progress with the actual construction of new homes, and oversee the programme in a way that gives parliament and the taxpayer much greater assurance over the value for money achieved from all disposals.”
A statement from the DCLG did not address the main criticisms contained within the PAC report, and repeated figures that had been disputed by the NAO. The statement said: “Previous governments allowed valuable brownfield land to go unused whilst housebuilding levels crashed to their lowest levels since the 1920s.A statement from the DCLG did not address the main criticisms contained within the PAC report, and repeated figures that had been disputed by the NAO. The statement said: “Previous governments allowed valuable brownfield land to go unused whilst housebuilding levels crashed to their lowest levels since the 1920s.
“We have got the country building again and are releasing surplus government land to protect taxpayers from paying for their upkeep and to build the homes families need. This has released enough land to build 109,000 new homes and we now want to go further and faster with land sales for a further 150,000 homes by 2020, helping people achieve their dream of homeownership.”“We have got the country building again and are releasing surplus government land to protect taxpayers from paying for their upkeep and to build the homes families need. This has released enough land to build 109,000 new homes and we now want to go further and faster with land sales for a further 150,000 homes by 2020, helping people achieve their dream of homeownership.”