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| House of Lords vote casts doubt on Tory plans to extend right to buy | House of Lords vote casts doubt on Tory plans to extend right to buy |
| (35 minutes later) | |
| Government plans to extend the right to buy to housing association tenants face a major setback after the House of Lords voted in favour of a crossbench amendment to the charities bill which seeks to block the measure. | Government plans to extend the right to buy to housing association tenants face a major setback after the House of Lords voted in favour of a crossbench amendment to the charities bill which seeks to block the measure. |
| Peers voted vote 257-174 in favour of an amendment that seeks to ensure charities are not “compelled to use or dispose of their assets in a way which is inconsistent with their charitable purposes”. | Peers voted vote 257-174 in favour of an amendment that seeks to ensure charities are not “compelled to use or dispose of their assets in a way which is inconsistent with their charitable purposes”. |
| Although the amendment does not mention housing associations, many have charitable status and it would block Tory plans to force them to sell their housing stock to tenants at a discount, which will be included in the housing bill and presented to parliament later this year. | Although the amendment does not mention housing associations, many have charitable status and it would block Tory plans to force them to sell their housing stock to tenants at a discount, which will be included in the housing bill and presented to parliament later this year. |
| Related: Tory right-to-buy plan threatens mass selloff of council homes | Related: Tory right-to-buy plan threatens mass selloff of council homes |
| The policy was criticised by many in the housing industry as cynical attempt to win votes when it was announced by the Tories in the runup to the general election and even the Conservative London mayor, Boris Johnson, has voiced concerns about its potential negative effects on housing stock in London. | The policy was criticised by many in the housing industry as cynical attempt to win votes when it was announced by the Tories in the runup to the general election and even the Conservative London mayor, Boris Johnson, has voiced concerns about its potential negative effects on housing stock in London. |
| The amendment was backed by the crossbencher and former head of the civil service Bob Kerslake, the Labour peer Dianne Hayter, the Liberal Democrat peer Monroe Palmer and the lord bishop of Rochester. | The amendment was backed by the crossbencher and former head of the civil service Bob Kerslake, the Labour peer Dianne Hayter, the Liberal Democrat peer Monroe Palmer and the lord bishop of Rochester. |
| Lady Hayter said Labour supported the right to buy, but added: “The problem is where it conflicts. This amendment seeks to prevent them being compelled to do something which is not in the charity’s best interest.” | Lady Hayter said Labour supported the right to buy, but added: “The problem is where it conflicts. This amendment seeks to prevent them being compelled to do something which is not in the charity’s best interest.” |
| Lord Kerslake, who also chairs the Peabody housing association, said the government’s plans would be “a major disincentive to charitable benefactors ... to donate their money or land to good causes when the government can directly intervene and direct the sale of those assets for very different purposes”. | |
| The Commons will have to vote in favour of the amendment before it passes into law. It is the first time in modern political history that a Conservative government has not also dominated the second chamber. The House of Lords Act 1999 removed the majority of hereditary peers, many of whom were Conservative supporters. | The Commons will have to vote in favour of the amendment before it passes into law. It is the first time in modern political history that a Conservative government has not also dominated the second chamber. The House of Lords Act 1999 removed the majority of hereditary peers, many of whom were Conservative supporters. |
| The Conservative party has 228 members in the Lords, Labour has 212, the Lib Dems have 101 and there are 178 crossbenchers. | The Conservative party has 228 members in the Lords, Labour has 212, the Lib Dems have 101 and there are 178 crossbenchers. |
| Jim Wallace, the Lib Dem leader in the Lords, said after the election that the Salisbury convention, which dictates that the Lords should not vote down a governing party’s manifesto promises, is out of date. | Jim Wallace, the Lib Dem leader in the Lords, said after the election that the Salisbury convention, which dictates that the Lords should not vote down a governing party’s manifesto promises, is out of date. |
| The convention was established in the aftermath of Labour’s landslide victory in 1945, when the party had just 16 peers. | The convention was established in the aftermath of Labour’s landslide victory in 1945, when the party had just 16 peers. |
| Senior figures in Whitehall told the Observer on Sunday that the Treasury is increasingly concerned about forcing housing associations to sell their properties. | Senior figures in Whitehall told the Observer on Sunday that the Treasury is increasingly concerned about forcing housing associations to sell their properties. |
| They fear it could add up to £60bn to government debt and mean the Treasury has to step in to fund subsidies to buyers. | They fear it could add up to £60bn to government debt and mean the Treasury has to step in to fund subsidies to buyers. |