Buying five flats with five more on the way is not working hard enough to tackle our housing crisis.

That is the message to the Alliance administration on the Isle of Wight Council from opposition Tories as they launch a new housing action plan.

In the Action Plan, the Conservatives are calling for the council to use its own housing company set up in 2019 to deliver affordable homes.

But other councillors criticised the Tories for their actions in amendments to the council budget last year.

 

Isle of Wight County Press: Conservative Leader Cllr Joe Robertson discussing the former Camp Hill Prison site with Minister for Prisons, Rob Butler MP. Conservative Leader Cllr Joe Robertson discussing the former Camp Hill Prison site with Minister for Prisons, Rob Butler MP. (Image: Joe Robertson.)

The opposition says the council allocated itself £40 million of low-rate government borrowing over three years after a Conservative budget amendment was passed back in February of last year.

It says to date none of the money has been borrowed or spent.

Cllr Joe Robertson, leader of the Conservative Group, said: “After nearly two years of promising to deliver affordable homes, the council’s own housing company remains dormant with a single director, no staff and no business plan.

"If the Alliance cannot produce a viable business plan then it should come clean and say so.

Read more:

"However with millions of council money being spent on housing families in temporary accommodation like bed and breakfasts, and low rate borrowing available from the Government, I have no doubt that a viable plan can be developed if the appetite and political will is there.”

But the ruling Alliance say they are working with other agencies to deliver much-needed homes.

Cllr Ian Stephens, the authority's lead on housing, told last week's meeting of the council the Island and the country in general was facing the double whammy of a building industry in a dire state and the rise in interest rates.

But, he said, the development company the Isle of Wight Council set up to bring affordable houses to  market, had to be robust and sustainable and plans were moving forward.

Responding to the call to better use the housing company, Cllr Stephens told the full council the matter was with the council's legal department at present.

"We are working with Vectis, Sovereign and Southern Housing.

"We are a registered rental provider...something that we inherited from the previous Tory administration."

The Conservatives plan also recommends: 

  • Working with the private sector to provide homes for sale or rent at 60 per cent of market rate.
  • Review council-owned land for development.
  • Make better use of grants and government opportunities.
  • Reform the regeneration department by removing affordable housing from its remit.

Cllr Richard Quigley (Labour) said the Conservatives had not helped with their tactics.

"After speaking with our finance director, due to changes in government rules on investment, councils don't have to make a profit of any particular level, but can't incur any losses.

"This means the Tory amendment to the budget last year, to increase borrowing to £40 million, but reduce the amount of capital in the housing company to £1.5 million and spend £500,000 on tree planting instead, means that it would make a loss in the first year , thus preventing any borrowing to build houses from happening. 

"Far from having a plan, the Tories have guaranteed that no development will take place." 

New member for Brighstone, Calbourne and Shalfleet, Cllr Nick Stuart, said: "at full council I made the obvious point that the Liberal Democrat-controlled Portsmouth City Council is delivering over 1,000 homes, either new builds or purchases on the open market, so why couldn’t the council deliver what Islanders need; low cost rental property.

"As a extra query I asked if the council would bring all aspects of housing under the authority of one officer, and according under a single Cabinet member. We were told there was a housing manager but, of course, that is not sufficient."

UPDATE:
An Isle of Wight Council spokesperson said: 

  • The council set a legal budget in 2022/23.
  • The budget amendment reduced the likelihood that the council would be able to borrow money to deliver affordable housing schemes but did not prevent it.