My Lords, I shall also support Amendment 64A in the name of the noble Lord, Lord Kerslake. I realise I am in the way of having the debate about Amendment 64A, on which I hope the Minister wishes to make a statement. However, I will continue.
For the Secretary of State to require local authorities to hand over money on the basis of the number of high or higher-value properties that may become vacant in any given year is, to me, iniquitous. However, I accept that a formula has been agreed with local authorities, which will be based on the assumed number of high or higher-value properties that will become vacant in any given year. In whichever way the formula is calculated, local authorities will be required to pay to the Secretary of State a sum of money that will cover the cost of the 20% discount on the starter homes and the right-to-buy scheme. In the current economic climate, local authorities do not have spare capital at their disposal and have never done so. They are particularly good at making every pound count for the benefit of their residents. The vast majority will therefore have to sell assets of some sort to fund the Government’s levy. The sale of capital assets involves costs and it is only logical for local authorities not to be out of pocket as a result of this measure.
Amendment 55 would allow local authorities to replace on a one-for-one basis with affordable homes in the same area. I refer your Lordships to the Conservatives’ press release of 14 April 2015, which gave details of how the right to buy will be funded. We have had discussions about this. The sale of high-value council homes is referred to in the last paragraph and I will bore your Lordships by reading it. It said:
“A Conservative government will legislate to require local authorities to manage their housing assets more efficiently, by selling off expensive properties—only when they become vacant—which will then be replaced with normal affordable housing. Local authority properties that rank among the most expensive third of all properties of that type in their area—including private housing—will be sold off and replaced with new affordable housing on a one for one basis. But this will only happen as they fall vacant. Nobody will be forced to move”.
I thank the Minister for her amendments so far and look forward to what she has to say further on this issue. In the mean time, I beg to move.