Labour MP, Chris Hinchliff, and a number tenant and housing campaign groups, are writing to Steve Reed, asking him to support of a ban on developers donating to political parties. Hinchliff is proposing a new Clause (25) to the Representation of the People Bill, which introduce sauch a ban.. The letter says
“We are writing to seek your support for our proposal to ban housing developers from donating to political
parties. This would be an important step in tackling the malign influence of the developer lobby on our
housing system. That influence has helped entrench a model delivering fewer affordable homes, poor
quality housing, inflated rents and soaring prices.
Communities feel locked out of decisions shaping the places they live. Families see their aspirations
for their local area overridden by developers. Green spaces are lost and commitments on infrastructure
or affordable housing are watered down. Developments are too expensive, poorly insulated and lacking
basic amenities. Too often, developers with deep pockets, consultants and lobbyists wield more
influence than residents themselves. That can’t be right.
Transparency International UK has warned that safeguards against corruption in planning are
dangerously weak. Risks include undisclosed lobbying, conflicts of interest and the use of gifts or
hospitality – all compounded by weak sanctions. There is growing concern that unrecorded meetings
with developers, close ties between decision-makers and repeated cases of developers overturning
local opposition are evidence of a planning system stacked against ordinary people. On appeal,
communities, campaigners and even elected councils with well-considered local plans are beaten time
and again.
This issue has become more pressing as the housing crisis deepens. Rents swallow up most of a
household’s monthly income and home ownership is out of reach for millions. Developers continue to
bank land or prioritise expensive luxury properties when they do build. Reports of exclusive fundraising
events, large donations linked to development interests and access for those able to pay thousands for
dinners with Ministers reinforce the perception that wealth equals influence in our democracy. It fuels a
deeper concern that the crisis people face is not simply the result of mistakes or incompetence. But of
a system moulded by those who profit from it, with the influence to tilt the rules in their favour.
That perception matters. Labour was founded to represent ordinary working people, and public
confidence depends on people believing decisions are made in their interests. If developers are
permitted privileged access while communities struggle to have their voices heard, trust in both politics
and the planning system will continue to erode. There are major decisions ahead on planning reform,
housing standards and local democratic oversight. The public must have confidence that these choices
are being made because they are right for the country.
The Government can pass this single reform with ease during the passage of the Representation of the
People’s Bill, but it is only a first step. The reach of the developer lobby extends far beyond party
donations. It operates through lobbying at local council level, the revolving door between politics and
the development industry as well as public affairs and PR firms with close relationships to Government
that advance the same interests.
All Governments have a duty to represent the people who elect them and stand up to corporate interests
seeking to profit at the expense of living standards. We urge you to take this step to remove undue
influence and deliver housing for people, not profit.”
The letter has been signed by ACORN the Union, Greater Manchester Tenants Union, Labour Campaign for Council Housing, London Renters Union, Norwich Renters Collective, Sheffield Tenants Union,
There is a lobby of MPs taking place between 1 p.m. and 3 p.m. on June 2nd. Activists will ask MPs to:
- Sign New Clause 25 to the Representation of the People Bill
- Publicly support New Clause 25
- Write to the Secretary of State, Steve Reed, urging the Government to adopt
the amendment
Anybody unable to attend the lobby should write to their MP asking them to support Clause 25.
A Briefing from Chris Hinchliff’s office says:
What is New Clause 25?
New Clause 25 would create a restriction in electoral law excluding property
development and construction undertakings from the list of permissible donors.
It applies to donations to registered political parties, recognised third parties, regulated
doners and permitted participants.
A person would not be a permissible donor if they are a property development or
construction undertaking. This includes any body corporate, partnership, LLP or
unincorporated association whose activities consist wholly or substantially of:
- Acquiring, disposing of or developing land
- Property speculation
- Constructing, renovating or substantially altering buildings or infrastructure
- Providing construction services as a principal contractor
The clause also covers: - Persons acting on behalf of such an undertaking
- Persons funded directly or indirectly by such an undertaking
- Subsidiaries or holding companies of such an undertaking
The Electoral Commission may issue guidance to assist in determining whether an
entity meets the definition.
Why ban developer donations?
Between January 2010 and March 2020, the Conservative Party received 80% of
political donations from individuals and companies with substantial property interests,
worth £60.8 million.
Transparency International warned that reliance on such donors may have
discouraged action to address the housing crisis.
Labour has inherited this housing crisis, but it should not inherit the culture of sleaze
and close relationships that contributed to it.
There have been concerning instances including a secretive ‘breakfast club’ backed
by £100,000 of developer linked funding to support a Labour Mayoral election. Steve
Goodrich, research director at Transparency International, said it was a “transparency
black hole.”
Public confidence
170,000 children are in temporary accommodation and house prices are beyond the
reach of millions of working people.
The consequences are felt across society: poorer educational outcomes, worse
health, and weaker economic growth as renters spend much of their income on
housing costs.
The public need confidence that government solutions match the scale of the crisis
facing communities.
Scandals such as the Secretary of State, Steve Reed, attending a dinner where
developers paid £2,000 per head for seats create confusion about who government is
working for, and whether decisions are made in the public interest or that of wealthy
donors.
Homeless children cannot afford £2,000 for access to a Minister. This entrenches
inequality in the political system.
Labour Campaign for Council Housing 