Leaked letter warns Tories to delay property developments

Published 30th Aug 2009

Caroline Spelman wrote to Conservative MPs and councils advising them to delay housing developments. Photograph: Carl de Souza/AFP/Getty Images

Conservative MPs and councils have been advised to delay major commercial and housing developments until a Tory administration gets into power, according to a letter from Caroline Spelman, the shadow communities secretary, seen by the Observer. The move will infuriate housebuilders and anger homeless charities desperate to see more homes built as quickly as possible.

The letter, written in recent days, outlines the Conservatives' intention of introducing a new local government and housing bill in its first year of office.

New Tory policy would "revoke ... in whole or in part" all of Labour's regional development targets. This, writes Spelman, will "put the brakes on elements of regional spatial strategies that [local authorities] find undesirable".

The leaked letter states that a Conservative government "would not pay a penny of compensation to speculative developers as a consequence of changes in planning policy". It gives a licence to authorities to delay developments. "We would advise councils not to rush ahead with implementing the controversial elements of regional spatial strategies [regional planning guidelines]," it says.

A spokesman from the Home Builders Federation said: "The letter gives rise to real concern. There is no recognition of the desperate need in all parts of the country for more homes of all kinds and tenures, or of the responsibility of local authorities to make provision for these. Rather, local authorities are seemingly being encouraged to put such considerations aside if they want to. Hard-pressed first-time buyers and those on the growing waiting list for social housing would suffer in particular.

"The timing is unfortunate: housing providers have been through the worst downturn in living memory and the letter would lead to a hiatus in planning for housing that could only exacerbate the supply crisis we already face."

But Grant Shapps, the Conservative shadow housing minister, who confirmed the existence of the letter, said current targets were not working. "We don't believe in a top-down approach that is Stalinist in nature," he said. "Housing completions are at record lows. This has to be seen in the context that would give real incentives to build more homes. We are unabashed about the need for more housing."

Shapps argued that many of Labour's regional development strategies faced legal challenges which were delaying the provision of new homes. He suggested councils should not waste time fighting these if they thought a Conservative victory at the next election was likely.

Housing minister John Healey said: "I think the Tories are getting ahead of themselves taking the election for granted. Crude threats and uncertainty are the last thing builders need as they battle the recession.

"We are backing builders with £1bn to kick-start our way out of recession and the Tories are pulling the rug from under them.

"It seems that the Tories don't have a plausible policy to secure the investment this country needs."

Source: ' Observer '

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