Miliband to pledge to build a million new homes in his speech

A mass housebuilding programme designed to stimulate growth and employment, and limit price rises, could be the game-changer Labour so badly needs.

As I revealed earlier this week, it is housebuilding that will the central theme of Ed Miliband's speech tomorrow. The Labour leader will pledge to build one million new homes over the course of the next parliament in the biggest building programme for a generation.

All three of the main parties have identified housing as one of the defining political issues of the moment but while the coalition's Help To Buy scheme is inflating demand, it does little to address what Miliband rightly calls the "fundamental problem" of supply. He will announce that Sir Michael Lyons, the former council chief executive and former BBC Trust chairman, will chair a Rebuilding Britain Commission to locate sites for new towns and garden cities akin to Milton Keynes and Welwyn Garden City. The commission will also introduce a new "right to grow" status which will force town halls to draw up housebuilding plans with neighbouring councils. In addition, Miliband will pledge to tackle the problem of land-banking by giving councils the power to charge developers for sitting on land with planning permission, or to issue compulsory purchase orders.

As a policy, a mass housebuilding programme ticks all the boxes: it is easy to explain and offers a powerful dividing line with the Tories. It would stimulate growth and employment, help to bring down long-term borrowing (for every £100 that is invested in housebuilding £350 is generated in return) and reduce welfare spending. It would be a literal fulfilment of Labour's pledge to "rebuild Britain" after austerity, just as the 1945 government did after the war. Jack Dromey, the shadow housing minister, said: "The next Labour government will tackle Britain’s housing crisis by building homes on a scale no government has done for a generation and in doing so creating hundreds of thousands of jobs and apprenticeships." After months in which many of Miliband's supporters have lamented the absence of a signature policy, this could well be the political game-changer he so badly needs.

In an attempt to position Labour as the party of small business, Miliband will also announce a £790m cut in tax rates for smaller firms, funded by reversing the planned cut in corporation tax from 21% to 20% in 2015. The cut in business rates would apply to 1.5 million businesses with an annual rental value of £50,000 or less, saving firms an average of £450 a year and as much as £2,000. Upon entering office in 2015, Labour would return rates to their 2014 level and then freeze them in 2016. It would also reconsider the coalition's decision to postpone the business rate revaluation until 2017, which will benefit prosperous parts of the country at the expense of poorer ones.

Ed Miliband applauds Ed Balls after his speech to the Labour conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Getty
Show Hide image

Tony Blair won't endorse the Labour leader - Jeremy Corbyn's fans are celebrating

The thrice-elected Prime Minister is no fan of the new Labour leader. 

Labour heavyweights usually support each other - at least in public. But the former Prime Minister Tony Blair couldn't bring himself to do so when asked on Sky News.

He dodged the question of whether the current Labour leader was the best person to lead the country, instead urging voters not to give Theresa May a "blank cheque". 

If this seems shocking, it's worth remembering that Corbyn refused to say whether he would pick "Trotskyism or Blairism" during the Labour leadership campaign. Corbyn was after all behind the Stop the War Coalition, which opposed Blair's decision to join the invasion of Iraq. 

For some Corbyn supporters, it seems that there couldn't be a greater boon than the thrice-elected PM witholding his endorsement in a critical general election. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

0800 7318496