Housebuilders' £100m pay-off branded 'dodgy' in Parliament
An agreement by seven of the UK's biggest housebuilders to pay a record £100 million to help fund affordable new homes after an investigation into concerns they shared commercially sensitive information "definitely looks dodgy", Parliament has been told.
Critics at Westminster suggested the developers made the offer to stop the investigation by the Competition and Markets Authority (CMA) 'into potentially illegal collusion … that could have inflated house prices'.
They argued the Government should insist on the watchdog completing its probe.
Assurances were also sought that the housebuilders at the centre of the inquiry would not be involved in building the affordable homes funded by the payout, which would see the firms 'simply get their money back'.
The CMA announced last week that Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry had offered the payment as part of a package of commitments to address concerns following the investigation, which was launched last year.
The settlement, which is set to go into affordable housing programmes across the UK, would be the largest ever secured by the CMA through commitments from firms under investigation.
The CMA will now consult on the commitments until July 24 and, if accepted, it will mean the regulator does not need to rule on whether the companies broke competition law.
As well as the payment, the housebuilders have agreed legally binding commitments not to share commercially sensitive information with rivals, such as the prices that houses were sold for, except in 'limited circumstances', the CMA said.
They also agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
The firms have said the offer of voluntary commitments does not mean they admit any wrongdoing.
Speaking in the House of Lords, housing minister Baroness Taylor of Stevenage said: 'The £100 million additional funding proposed for affordable housing will mean more families can benefit from a safe and secure home.'
But Liberal Democrat Baroness Thornhill, a vice president of the Local Government Association, said: 'There could be an alternative version to this – major housebuilders pay £100 million to halt the CMA's investigation into potential illegal collusion through the sharing of competitively sensitive information that could have inflated house prices.
'While this settlement might appear a pragmatic, cost-effective solution, would it not be more useful to have some evidence-led answers about whether the business models of the major developers are a significant factor in the slow delivery of housing?
'Therefore, should not the Government insist that the CMA actually completes its investigation, rather than allowing a financial settlement that obscures the fact and definitely looks dodgy?'
Responding, Lady Taylor said: 'The CMA is continuing its work on this, and on July 9 it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation.
Join the Daily Record WhatsApp community!
Get the latest news sent straight to your messages by joining our WhatsApp community today.
You'll receive daily updates on breaking news as well as the top headlines across Scotland.
No one will be able to see who is signed up and no one can send messages except the Daily Record team.
All you have to do is click here if you're on mobile, select 'Join Community' and you're in!
If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'.
We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like.
To leave our community click on the name at the top of your screen and choose 'exit group'.
If you're curious, you can read our Privacy Notice.
'That consultation closes on July 25, and I have already set out some of the commitments that the seven companies have made.
'The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations.
'I hope that will make a significant contribution to delivering the affordable housing we all want to see.'
Tory former housing minister Lord Young of Cookham said: 'If the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity? Otherwise, they'll simply get their money back.'
Lady Taylor said: 'I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.'
Liberal Democrat Lord Rennard said: 'The one-off payment of £100 million towards affordable housing is only about 3% of the operating profit of the five biggest housebuilders this year. Is this a relatively small penalty for them to pay for anti-competitive practices over many years?'
Lady Taylor said: 'This is the biggest settlement ever achieved by the CMA.'
She added: 'We have to consider what is appropriate in these circumstances. I am sure the CMA has done that.'
A CMA spokesperson said: 'Our year-long study of the housing market found that the complex and unpredictable planning system, together with the limitations of speculative private development, was responsible for the persistent under-delivery of new homes in the UK.
'It was also clear that concerns about sharing of confidential information, while important, were not the main driver of the undersupply of housing.
'The £100 million payment we have secured for affordable housing would provide immediate benefits across the UK, without a lengthy further investigation.
'It is in line with fines levied in similar cases that have taken many years to conclude and comes alongside a set of commitments which fully addresses our competition concerns.'
Bellway, which has agreed to pay £13.5 million, said: 'Bellway's offer of commitments does not constitute an admission of any wrongdoing, and the CMA has made no determination as to the existence of any infringement of competition law.
'Bellway welcomes the CMA's consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
North Wales Chronicle
4 minutes ago
- North Wales Chronicle
Do not let LGBT veterans scheme to ‘become damaged', 45 MPs urge Healey
In a letter to John Healey, the cross-party MPs warned that some veterans facing financial crisis are 'suffering from severe mental health issues' without support 'from the outset'. LGBT veterans who faced mistreatment, including dismissal and bullying, because of their sexuality between July 1967 and January 2000 can make a claim through a financial recognition scheme worth £75 million. Liberal Democrat MP Ben Maguire, who signed the letter, accused the Government of 'now failing the very veterans they pledged to support'. The North Cornwall MP said: 'The slow pace of delivery is unacceptable and causing avoidable distress. 'Many of these LGBT veterans have already endured lifetimes of shame, stigma and rejection.' Mr Maguire added: 'These veterans should not have to suffer all over again because of bureaucratic delays. 'That's why I'm very pleased to have colleagues from right across Parliament join me in demanding faster payments, and clearer transparency, for MPs and the public.' The letter has 46 backers in total, including the Liberal Democrats' defence spokeswoman Helen Maguire, several Labour and Plaid Cymru MPs, and Stonewall charity co-founder Lord Cashman. Dame Caroline Dinenage, the Conservative MP for Gosport who also signed the letter, told the PA news agency that LGBT veterans had faced an 'injustice that's gone on for far too long'. The MPs have requested that the Ministry of Defence (MoD) 'widens the criteria for prioritisation to include all those in financial crisis', to applicants 'who are in most need of a swift decision suffering from financial crisis – not just when they are in ongoing bankruptcy proceedings in court'. Fast-tracked applicants under the existing scheme include claimants who are facing bankruptcy or having their home repossessed through a court process. 'Many of these veterans who are in financial crisis, but are not yet in the court system, are still suffering from severe mental health issues because of a lack of financial support provided by the redress scheme from the outset,' the MPs warned. They suggested that instead of making veterans who were dismissed or administratively discharged wait for their full award, 'by making an immediate payment of £50,000 to all these veterans who qualify, the MoD can alleviate the pressure and anger being felt by this community and would provide a quick win for the MoD' before a panel considers whether to issue further payouts on a case-by-case basis. 'These veterans have struggled immensely to progress their claims, and after years of waiting for signs of hope are still waiting for settlement and closure,' the MPs added. 'We cannot allow this process to become damaged in the same way as other compensation schemes have.'
ITV News
4 minutes ago
- ITV News
Northumberland to be linked to 'world's biggest' offshore wind farm as plans approved
A massive offshore wind farm, which will be linked to Northumberland, has been approved by the Scottish Government. Developers behind the project have called it the "world biggest" offshore wind farm. Berwick Bank will feature up to 307 turbines, and SSE Renewables say they would provide 4.1 gigawatts of capacity, enough to power up to six million homes annually. The turbines would be in Scottish waters off the coast of East Lothian, and would have two links to the grid via undersea cables - one at Blyth in Northumberland, and the other near Dunbar in East Lothian. Scotland's Deputy First Minister Kate Forbes welcomed the approval, saying the Government had given the application 'extremely careful consideration'. She said: 'The decision to grant consent to Berwick Bank is a major step in Scotland's progress towards achieving net zero and tackling the climate crisis, as well as supporting national energy security and growing our green economy.' Developers SSE Renewables will have to provide a plan to counter any impact the wind farm may have on seabirds to be approved by ministers. UK Energy Secretary Ed Miliband said the announcement means there have been enough wind farms approved in the UK to meet the Government's ambition of delivering clean power by 2030. He said: 'We welcome this decision, which puts us within touching distance of our offshore wind targets to deliver clean power by 2030 – boosting our mission to make Britain a clean energy superpower.'
Daily Mail
5 minutes ago
- Daily Mail
Moment MPs brawl in Ukrainian parliament during vote on Zelensky's new anti-corruption bill after his reform plans sparked mass protests
Ukrainian parliament spiralled out of control on Thursday as two MPs engaged in a punch-up before lawmakers voted to reinstate the independence of the country's key anti-corruption bodies. Volodymyr Zelensky had sparked outrage after quietly signing a controversial bill that slashed the independence of two of the country's major anti-corruption watchdogs and was forced into an embarassing U-turn after widespread outcry against the move. He backtracked on the bill and approved a new draft bill guaranteeing the freedom of anti-corruption agencies after facing nationwide protests for the first time since war with Russia erupted. The new bill, to restore the independence of the National Anti-Corruption Bureau (Nabu) and Specialised Anti-Corruption Prosecutor's Office (Sap), was passed by 331 to 0 on Thursday in Kyiv 's parliament. But amid a tense atmosphere, two MPs could be seen exchanging punches. The pair gestured at one another before launching a punch each. They both unsuccessfully attempt to land another blow before being separated by fellow lawmakers. The scrap's cause remains unknown but it was streamed live in what was the first parliamentary vote broadcast since Russia's full-scale invasion. Zelensky said it was the 'right decision' after the anti-corruption bill was passed into law. 'This guarantees the normal, independent work of anti-corruption bodies and all law enforcement agencies in our country. It is the right decision,' he said. He also added that 'it is very important that the state listens to public opinion,' in response to the street protests. 'Ukraine is a democracy – there is no doubt about that. Government officials will also immediately inform Ukraine's partners about this law,' he added. Ukrainian prime minister Yulia Svyrydenko said it was 'a direct and responsible response to the expectations of Ukrainian society and our European partners.' 'It confirms Ukraine's commitment to democratic governance, the rule of law, and institutional maturity,' she added. Zelensky last week placed the watchdogs under the oversight of the prosecutor-general, essentially removing their autonomy, in a move which was criticised by Ukrainians, the European Union and international rights groups. Emmanuel Macron and US officials had also tried to dissuade him from doing so. The bill - known as No. 12414 - was pushed through parliament at breakneck speed, tucked away in amendments to unrelated legislation in what opponents are calling a deliberate attempt to avoid scrutiny. It raised fears that the government could meddle in investigations and potentially shield its supporters from scrutiny. Mass protests broke out against the Government for the first time since the outbreak of war in response. Hundreds of furious demonstrators, many of them young, poured into the streets in Kyiv, staging a defiant protest despite a nationwide martial law ban on public gatherings. An estimated 2,000 to 3,000 people gathered near the Ivan Franko Theatre in the heart of the capital last week, just steps from the presidential compound. 'They are crying that they do not want to return to the times of [former President Viktor] Yanukovych,' Kyiv Post reporter Sergii Kostezh said. Fighting corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars of vital Western aid in the war against Russia. Last week the EU said it was freezing $1.7b in aid which meant to reward Ukraine for good governance standards as a result of the bill Anti-corruption measures also enjoy broad public support in the country. EU Enlargement Commissioner Marta Kos, who called last week's legislative changes 'a serious step back,' welcomed approval of Thursday's bill, saying lawmakers had 'corrected last week's damaging vote.' Ukrainian prime minister Yulia Svyrydenko said the new bill was 'a direct and responsible response to the expectations of Ukrainian society and our European partners' 'Today's law restores key safeguards, but challenges remain,' Kos, who monitors the record of countries that are candidates to join the bloc, wrote on X. 'The EU supports (Ukrainian) citizens' demands for reform. Upholding fundamental values & fighting corruption must remain the priority.' European Commission president Ursula von der added that 'President Zelensky's signature on the law restoring Nabu & Sapo independence is a welcome step.' 'Ukraine's rule of law and anti-corruption reforms should continue. They remain essential for Ukraine's progress on the European path. The EU will continue to support these efforts,' she said. Ukrainian Foreign Minister Andrii Sybiha said his country 'is committed to reforms and the fight against corruption' and that Zelensky 'demonstrated a principled approach.' 'We got it fixed,' he wrote on X. The controversy threatened to undermine public trust in their leaders at a critical time, though the protests didn't call for the president's removal. Russia's bigger army is accelerating its efforts to pierce Ukraine's front-line defences and is escalating its bombardment of Ukrainian cities. There is also uncertainty over how much additional weaponry Ukraine's Western partners can provide and how quickly. The Ukrainian branch of Transparency International also criticized last week's legislation, saying it weakened one of the most significant reforms since what Ukraine calls its Revolution of Dignity in 2014. NABU and SAPO were established after the 2014 Maidan revolution that toppled a pro-Russian president and set Kyiv on a Western course. The two agencies have stepped up their work during the war, leveling charges against lawmakers, ministers, and a former deputy head of Zelensky's administration. Zelensky said his goal had been to speed up prolonged investigations, ensure more convictions and remove Russian meddling in investigations, which he didn't detail. He said he had taken note of the protests and decided to present a new bill to Parliament underscoring that the prosecutor general and his deputies cannot give orders to anti-graft agencies or interfere in their work.
