I congratulate my hon. Friend Gordon Banks on securing this debate on a subject that we both agree is important. First, may I say that one of the biggest single acts that the Government can perform to help the construction industry and reinvigorate the housing market is to restore confidence and stability in the financial markets and to support the economy by increasing lending? That is why the actions that we took in October on the recapitalisation of the banks, those we announced in January on the asset protection scheme, whereby we provided guarantees to the Royal Bank of Scotland group, and today's announcement on Lloyds are providing real support to the banking system to ensure continuance of lending in the economy.

My hon. Friend raises the important point about the availability of mortgages, and I agree that it is key to restoring the housing market. As he rightly points out, the underlying demand for housing is there, but one of the biggest problems is the availability of finance. That is why the Government recently announced that Northern Rock will increase mortgage lending by up to £14 billion over the next two years, and why we have seen the other announcements that he mentioned. The new lending will be made available on commercial terms to ensure that it represents good value for money for the taxpayer, and Northern Rock will return to the mortgage market after an absence. The Government have made it clear that we want to see a mortgage market that functions well, where lenders lend responsibly and borrowers have access to a wide range of mortgages that they can afford to repay: a return to responsible lending and responsible borrowing. He will be aware that we are monitoring bank lending very closely, with data being collated by the monitoring panel that we have established. I share his ambition to see more 90 per cent. loan-to-value mortgages being offered. He is right to say that a big readjustment has taken place over the past six months in that respect. There are 90 per cent. LTV mortgages available at the moment from a number of lenders, as he rightly points out, but particularly for first-time house buyers we need to consider whether we can do more to help them at the appropriate time of their choosing to get their foot on the housing ladder.

We also have to think about whether we want to do more to stimulate the private rented sector of the UK economy, too. It is clear that there is, and that there will continue to be, a strong demand for new homes in this country. My hon. Friend is right, too, to point out the benefits for the UK high street of the purchases that come when people move into new homes.

The construction industry is vital to the UK economy. In 2006, it accounted for nearly 9 per cent. of gross value added worth more than £100 billion. The importance of construction to the Government and society goes beyond its economic contribution. Construction is vital for the provision of good-quality public services and it plays a role in the delivery of more than half the 30 public service agreements set out in the 2007 comprehensive spending review. The sector is large, with recent employment levels exceeding 2 million people, and it contains some 284,000 firms. Although small and medium-sized companies predominate, the sector ranges from large international contractors to the self-employed jobbing builder and decorator.

As a Government, we appreciate the fact that good quality housing is a basic human need and we are fully committed to it. By 2010, 95 per cent. of all social housing will meet the decent homes standard for housing that meets basic minimum quality standards. Furthermore, the Government acknowledge that there is a significant gap between the supply and the rising demand for new homes. For decades, the housing market has failed to keep up with our ageing and growing population. That has led to significant problems of affordability, particularly, as I have mentioned, for those seeking to buy their first home.

First-time home buyers are key to the housing market. That is why we have set out an ambitious target to deliver 240,000 additional homes a year by 2016. In recent years, the housing market had responded to that challenge with the delivery of 207,500 additional homes in 2007-08. However, we recognise the reality of the recession and how it has hit the housing market badly. The capital constraints on private sector developers have been significant and the economic conditions facing the housing sector are far worse than those facing any other sub-sector in the construction industry.

We recognise the need to take action and, as my hon. Friend will be aware, we are bringing forward public expenditure. Some £775 million was earmarked in the pre-Budget report to be spent on housing and regeneration investment. Some £250 million will be spent on the decent homes programmes to fund improvements in energy efficiency in 25,000 social homes. Some £150 million will be spent on new social rented homes, in addition to the £400 million to be spent on 5,500 new social homes that was announced last September.

We are committed to a major increase in affordable and social housing to meet demand and to cut waiting lists. Local authorities with existing stock will be able to apply for grants to buy social housing alongside registered social landlords. As my hon. Friend mentioned, homeBuy direct's £300 million shared equity scheme will help up to 10,000 first-time buyers into affordable home ownership over the next two years. As with other homebuy schemes, any first-time buyers whose household income is under £60,000 will be able to apply. That will not only help first-time buyers, but support the industry by identifying buyers for its new homes.

Of course, in addition to our desire to restore confidence in the banking system and to see further new house building in the UK, there is another factor: the Government are themselves a significant client, through public sector procurement, of infrastructure, and my hon. Friend the Member for Ochil and South Perthshire rightly mentioned that that was of significance. Some 30 per cent. of all construction activity is publicly funded, with a further 10 per cent. accounted for by the private finance initiative and similar schemes.

As the House will be aware, the Government recently announced measures to safeguard PFI projects that were unable to access credit because of the financial crisis. Our action will ensure that public sector investments in infrastructure projects, including schools, transport and waste treatment projects, can be protected and will proceed. We are also bringing forward billions of pounds of infrastructure project spending right across the UK to help to keep people and firms in work while private demand falls. Projects include: increasing the capacity in the motorway network; improving and building new social housing; renewing primary and secondary schools; and investing in energy efficiency measures. The challenge, of course, is to make sure that we deliver on those commitments, and the Government are determined to do so. It is also a challenge to see whether there is more that we can do in these difficult economic times to help people and businesses in the construction industry.

My hon. Friend also mentioned planning issues. He asked me about the detailed delivery plans to ensure that the money that we have announced will be spent. I can inform him that planning is well advanced, and the Department for Children, Schools and Families announced on 3 March which local authorities will receive the £499 million in additional money next year to invest in our schools. The Department is also bringing forward £390 million of the money that head teachers receive directly, and £30 million for investment in play facilities.

My hon. Friend Lindsay Roy raised the issue of planning. He pointed to the lack of strategic intervention in some of the areas with which he is familiar. I agree with him that all partners need to work together to ensure that we can remove barriers and blockages, particularly during these difficult economic times, so that projects go ahead. He mentioned the Scottish Futures Trust, which is a matter for the Scottish Parliament and the Scottish Administration, but I am aware of the concerns that he expresses. My hon. Friend the Member for Ochil and South Perthshire mentioned training and VAT issues; I agree with him about the importance of training and maintaining skills in the construction industry sector. I have noted his request on VAT, and it will form part of our Budget deliberations, no doubt.

To conclude, it is vital that we continue to be in close touch with the industry. We meet regularly the Strategic Forum for Construction, which includes umbrella bodies from across the construction industry. I will be attending a meeting of the forum this month to discuss issues of common interest in the current climate. I think that—

House adjourned without Question put (Standing Order No. 9(7)).