PMQs sketch: Dave's Darling

"He's on another planet," said Ed of the PM, with the look of a man who wished he could join him.

Those who have yet to buy a copy of Alistair Darling's book on his time with the Great Sulk should rush out and get one, because it is the only way to make sense of the farce that was the first Prime Minister's Questions since MPs took themselves off in July for their several holidays.

With the economy on its uppers, inflation on the increase and growth shrinking, we all knew what the hot topic of the day would be, as Ed (fresh from his nose job) set about Dave (poshly sunburnt; despite having to pop back to town for a few days because of the riots and Libya). Indeed, Ed had to be up for it following recent opinion polls showing Labour just a couple of percentage points ahead of the Tories, despite almost a year under his care.

And so Ed let Dave have it with both barrels: Why is the Government holding elections for police commissioners in November instead of next May?

Earlier, Dave had been seen in earnest last-minute conversations with Chancellor George (equally sun-tanned), being briefed on what tack to take when Ed launched his economy broadside; but this one seemed to stun him.

Indeed, the Commons fell silent for a moment as Members on all sides considered the import of this, the first question to the Prime Minister after such a tumultuous period in our national affairs.

The real reason for this question and the smile it brought to Dave's face had been spotted tucked under his arm by an eagle-eyed reporter as he entered the Chamber: a well-thumbed copy of Alistair's book.

The curse of the Ali/Alastairs is becoming a common thread in recent Labour history, and Alistair D's intervention seems to be at least as unhelpful as many of those attributed to Alastair Campbell.

In the latest Alastair missive, details of his tortuous relationship with Gordon Brown and the Stasi-like behaviour of his team, led by enforcer Ed Balls, are revealed; not unlike the revelations of the books by the other A. It should be remembered that Ed M was praised for his bravery by keeping Ed B away from the Treasury brief when he first took over as leader. But that bold plan was quickly dropped when Alan Johnson, Ed's odd choice for Shadow Chancellor, fell by the wayside.

Just to make matters worse, Darling recounts that Labour's 2009 budget was conceived in chaos and resulted in a complete mess of an economic policy; a bit of a bummer, since this is the plan the Opposition is presently sticking to.

With Ed the Enforcer sitting just a couple of seats away, it was soon obvious that Ed the Leader had decided to bottle it. After the questions on police commissioners came questions on waiting lists, and Cameron's grin only widened. "He's on another planet" said Ed, with the look of a man who wished he could join him.

This let Dave in with the one answer to the Labour Leader he hadn't expected to utter: "He doesn't dare in six questions to mention the economy". Even Nick smiled at that one.

With party conference season just around the corner, MPs back from their hols on Monday will be off again in just ten days for another three weeks of naval gazing. Dave must be delighted that despite presiding over the worst economic crisis for 60 years, he is still personally popular and his party almost up there with Labour in the polls. All he has to do is persuade the recidivists that the Lib Dems aren't getting away with blue murder. Nick has to persuade his lot they are.

Ed Miliband should have had the easiest job of all, but with the recent polls and today's performance, is the jury out again?

As Bill Clinton said: "It's the economy, stupid."

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions.

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions

Getty
Show Hide image

The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

0800 7318496