Hammond risks Tory backlash with gamble on opening up the green belt
PHILIP HAMMOND is looking to reform the planning system by allowing building on the green belt to help more young people get on the housing ladder.
In an attempt to resolve the housing crisis in high-demand areas, the Chancellor is expected to use this month’s budget to suggest reclassifying some of the protected countryside.
The land would be used as part of a deal to allow extra borrowing to fund house building to tackle the country’s poor productivity.
A Whitehall source told The Sunday Telegraph: “The Chancellor is keen to liberalise planning restrictions and is looking very closely at the green belt and what can be done there. But there is difficulty in that the Prime Minister is not convinced by it.”
Jacob Rees-Mogg, the backbench Tory MP, who has said opposing parts of Mr Hammond’s financial plans would effectively constitute a “vote of no confidence” in the Government, told The Telegraph last night: “Reforming the planning system is a prerequisite to providing more housing. A review of the green belt may need to be a part of this.”
However, using green belt land is a contentious issue with many Tory MPs representing constituencies where residents live near or next to green spaces they do not want to be built on.
Theresa May marked out housing as a key policy in her party conference speech where she announced a £10million boost to the Help to Buy scheme and more protection for those living in private rented accommodation.
“I will take personal charge of the Government’s response, and make the British dream a reality by reigniting home ownership in Britain once again,” she vowed.
She said that in the last four decades “we simply haven’t built enough homes” and highlighted government proposals to give councils new powers to ensure developers build homes once they obtain planning permission. Last month she called on Britain’s biggest developers to attend a Downing Street summit after pledging to “dedicate” her premiership to fixing the “broken” housing market.
Senior figures fear a continuing housing crisis will seriously affect the Conservatives’ prospects in future elections.
Sajid Javid, the Communities Secretary, has suggested the Government could borrow billion of pounds to invest in hundreds of thousands of new homes.
The Telegraph understands ministers are examining plans that would result in the Government directly commissioning small and mediumsized developers.
The move would effectively make the Government one of the nation’s biggest housebuilders in an attempt to kickstart the housing market and break the monopoly of large developers.
Mr Hammond will set out his Budget on Nov 22, and Tory rebels are reportedly considering voting against it in an attempt to oust the Chancellor.