Housing isn't just a battle between terrace and tower

There's far more options available than Policy Exchange make out.

Policy Exchange's report calling for tower blocks to be demolished and replaced with streets of terrace houses and low-rise flats "that people actually want to live in" has made a rather big splash.

My initial reaction was that the report was unfairly slanderous to the reputation of vertical living. Conclusions about tower blocks from the 50s, 60s and 70s are generalised to be about all such buildings, while the worst of terrace housing is overlooked. It is true that many of the post-war towers are in dire need of refurbishment, and it may well be better to tear them down and start again. But their failure has as much to do with being built on the cheap, abandoned by councils and then unmaintained for half a century as it does to do with them being tower blocks.

And there is an element of expertise in building tower blocks which should not be overlooked. Quite simply: we've got better at it since then. Whereas terraced houses are much the same as they were 100 years ago, even affordable high-rise living is nearly unrecognisable compared to that practiced post-war.

But more, I want to highlight the false dichotomy that the report creates. Arguing about tower blocks versus terraced streets ignores the fact that there are a huge number of alternative styles of living.

For instance, most British cities are alarmingly low rise. That's not just that they have no tower blocks or skyscrapers, though; it's also that whoever decides the number of stories a building should have seems to count like Terry Pratchett's trolls (one, two, many, lots). There's room for buildings which aren't the tower blocks of yore, but do still fit a huge number of people in a small space, allowing more than just the rich to experience the benefits — walkability, culture, shorter commutes — that inner-city living offers.

And take a look at places like the German town of Vauban, which houses 5,500 people in a square mile — with no cars allowed. That's not terraced living as Policy Exchange would imagine it, but it mixes some of the best aspects of tower blocks (high density, big shared spaces, and not having to walk particularly far to reach transport links) with those of terraces (like being relatively flat and open).

The Swedesh village of Jakriborg does this even better. It houses over 1000 people in an area a third of the size of a Maryland park-and-ride car park, by mixing the small streets and car free living of a town like Vauban with houses which are five or six stories high.

There's been a lot of changes in city and suburban living since the 1950s. Treating town planning as a battle between 1950s-style homes and 1900-style ones ignores that there are more options available than ever before in the year 2013.

Jakriborg. Photograph: Wikimedia Commons

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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George Osborne's mistakes are coming back to haunt him

George Osborne's next budget may be a zombie one, warns Chris Leslie.

Spending Reviews are supposed to set a strategic, stable course for at least a three year period. But just three months since the Chancellor claimed he no longer needed to cut as far or as fast this Parliament, his over-optimistic reliance on bullish forecasts looks misplaced.

There is a real risk that the Budget on March 16 will be a ‘zombie’ Budget, with the spectre of cuts everyone thought had been avoided rearing their ugly head again, unwelcome for both the public and for the Chancellor’s own ambitions.

In November George Osborne relied heavily on a surprise £27billion windfall from statistical reclassifications and forecasting optimism to bury expected police cuts and politically disastrous cuts to tax credits. We were assured these issues had been laid to rest.

But the Chancellor’s swagger may have been premature. Those higher income tax receipts he was banking on? It turns out wage growth may not be so buoyant, according to last week’s Bank of England Inflation Report. The Institute for Fiscal Studies suggest the outlook for earnings growth will be revised down taking £5billion from revenues.

Improved capital gains tax receipts? Falling equity markets and sluggish housing sales may depress CGT and stamp duties. And the oil price shock could hit revenues from North Sea production.

Back in November, the OBR revised up revenues by an astonishing £50billion+ over this Parliament. This now looks a little over-optimistic.

But never let it be said that George Osborne misses an opportunity to scramble out of political danger. He immediately cashed in those higher projected receipts, but in doing so he’s landed himself with very little wriggle room for the forthcoming Budget.

Borrowing is just not falling as fast as forecast. The £78billion deficit should have been cut by £20billion by now but it’s down by just £11billion. So what? Well this is a Chancellor who has given a cast iron guarantee to deliver a surplus by 2019-20. So he cannot afford to turn a blind eye.

All this points towards a Chancellor forced to revisit cuts he thought he wouldn’t need to make. A zombie Budget where unpopular reductions to public services are still very much alive, even though they were supposed to be history. More aggressive cuts, stealthy tax rises, pension changes designed to benefit the Treasury more than the public – all of these are on the cards. 

Is this the Chancellor’s misfortune or was he chancing his luck? As the IFS pointed out at the time, there was only really a 50/50 chance these revenue windfalls were built on solid ground. With growth and productivity still lagging, gloomier market expectations, exports sluggish and both construction and manufacturing barely contributing to additional expansion, it looks as though the Chancellor was just too optimistic, or perhaps too desperate for a short-term political solution. It wouldn’t be the first time that George Osborne has prioritised his own political interests.

There’s no short cut here. Productivity-enhancing public services and infrastructure could and should have been front and centre in that Spending Review. Rebalancing the economy should also have been a feature of new policy in that Autumn Statement, but instead the Chancellor banked on forecast revisions and growth too reliant on the service sector alone. Infrastructure decisions are delayed for short-term politicking. Uncertainty about our EU membership holds back business investment. And while we ought to have a consensus about eradicating the deficit, the excessive rigidity of the Chancellor’s fiscal charter bears down on much-needed capital investment.

So for those who thought that extreme cuts to services, a harsh approach to in-work benefits or punitive tax rises might be a thing of the past, beware the Chancellor whose hubris may force him to revive them after all. 

Chris Leslie is chair of Labour's backbench Treasury committee.