How challenging is the 1.5 million homes target?published at 15:22 Greenwich Mean Time

15:22 GMT

By Gerry Georgieva, BBC Verify

The prime minister was asked if he thinks his government can achieve its target of delivering 1.5 million additional homes in England by the end of this Parliament in 2029.

"Yes. That's why I set it out. I accept it's difficult, I accept it's stretching but it's hugely important," he said.

It would equate to 300,000 homes per year.

The most recent data, external shows that only 221,070 net additional dwellings were delivered in 2023-24, a decline of 6% on the previous year.

The number of housing projects given the go-ahead by councils in England also reached a record low in the final months of the last government.

Think tanks say the government would struggle to meet its target without more radical planning system reform, external and more direct public investment, external in new homes.

The Home Builders Federation also recently warned that the UK doesn’t have enough construction workers to build the 1.5 million homes.

Eshalomi asks if the government's ambition to build 1.5 million homes within the next five years is achieveable, given problems with supply chains and skills shortages.

The prime minister insists it is achievable, but adds that the target is stretching but important.

In order to hit the target he says the government has made housing numbers mandatory for local areas.

It will be up to local areas how they meet those numbers, he says, but adds that if they don't central government will intervene.

"We have got to punch through this," he says.

Florence Eshalomi, the Labour chair of the Housing, Communities and Local Government Committee, says "we're in a housing crisis", who asks Starmer why he chose to freeze the Local Housing Allowance (LHA).

LHA determines the maximum amount that can be claimed by people renting from a private landlord, and is set by local rent officers in around 200 areas across the UK.

"We are in a housing crisis, you're right," Starmer replies, reiterating his government's plans to build 1.5m homes over the course of this parliament.

Eshalomi says "160,000 children will wake up on Christmas Day in temporary accommodation," and asks the prime minister if he "really understands the impact" of freezing the LHA.

Those numbers "are appalling", the prime minister says, but adds that his government inherited the situation from the previous government and are trying to fix it.

Staying on foreign trade policy, Liam Byrne asks Starmer how he is going to pursue better trade deals with the EU and the US at the same time, suggesting he will have to choose one or the other.

The prime minister does not agree it's an either or situation, but highlights that it will not be easy. Starmer says he wants closer relationships on security, defence, energy and trade with both the EU and Washington.

Iain Watson
Political correspondent

It’s interesting that questions are now being raised about Keir Starmer and Rachel Reeves’s strategy from within his own party, with the Business and Trade Committee chair, Liam Byrne, questioning the scale and timing of burdens on businesses, if the government’s top priority is economic growth.

Starmer points out his options for tax rises were limited but that was because he ruled out "big ticket" items such as income tax and VAT ahead of the election.

That may have helped him gain a massive majority, but the trade-off is that it's been more difficult for him both to fix the finances and promote growth in government

Liam Byrne asks Starmer how he'll dissuade US president-elect Donald Trump from imposing tariffs on the UK.

"I am not a fan of tariffs," Starmer says, adding that the UK has "very good" trade with the US and countries around the world.

The PM says: "I am alive to danger but I am not going to speculate on what he [Trump] is going to do." Starmer goes on to reiterate that he wants to improve trade with Washington.

Culture Committee chair Dame Caroline Dinenage now turns the prime minister's attention to artificial intelligence (AI) and how it interacts with creative industries. Dinenage accuses AI companies, by using people's work, to have carried out one of the "biggest copyright heists".

The prime minister defends the technology, saying AI will be "transformative for the better" but acknowledges there is an issue over copyright and that he wants to get the balance right between the potential of AI and the protection of copyright.

He says the government has published a consultation on the subject and will listen to all views.

Dinenage says there is a lot of "fear" in the creative industries over the government's proposals to allow people to "opt out" of having their work used by AI companies.

Starmer says he thinks the government's plans have got the balance right but repeats that he will listen to responses to the consultation. The Culture Committee chair says it sounds like Starmer is siding with big tech foreign companies rather than the British creative industries.

Let's stay with Labour MP Liam Byrne, who is quizzing the PM on the economy.

He tells the committee big businesses have told him they will have to cut investment because of the combined effect of an increase in National Insurance contributions, increased employment rights, and a rise in the minimum wage.

"Was it the best idea to put them all together?", Byrne asks.

"The economy was broken" when Labour took office earlier this year, Starmer says, and they needed to work to "fix the foundations first".

Byrne presses on why all three things needed to be implemented at the same time, to which Starmer repeats it was "better to fix the foundations... in one go", and stresses they're offering support to small businesses.

The money raised by these measures, he says, will allow the government to invest more money in things such as the NHS.

Iain Watson
Political correspondent

Former Labour cabinet minister Liam Byrne – who wrote the now infamous "no money left" letter when his party lost power in 2010 – pins Keir Starmer down on the pledge to have the highest sustained growth in the G7, which seemed to have been made less concrete in its recent "Plan for Change".

The PM says it remains the ambition, even though current projections suggest the UK will be beaten by the US and Canada.

Image source, UK Parliament

Labour's Liam Byrne asks Starmer if achieving the highest sustained growth in the G7 group of countries by 2029 is still a target, because forecasters are not predicting that.

In response, the PM says it is. He adds that forecasters have yet to factor in Labour's planning and regulation changes.

Pressed further, he says he wants the UK to be ahead of the US and Canada, with that translating into people feeling better off.

Starmer says a key focus is driving up people's disposable incomes and productivity,

Starmer is further pressed on how he will deliver growth, to which he says changes to planning are one of the key levels he is pulling.

The PM tells the Liaison Committee regulation is a key issue, and as things stand there is too much regulation and it is inconsistent. He says artificial intelligence (AI) will also be important.

The committee chair, Meg Hillier, says she wants to know when the UK economy will see real growth. The prime minister says the lowest paid are already "feeling the benefit" due to a recent pay rise.

"It will take some time," he says, adding that not everything can be fixed by Christmas.

Dame Meg Hillier, who chairs the Liaison Committee, welcomes the prime minister to today's hearing.

Hillier also chairs the Treasury Committee and she asks how Starmer will deliver growth in the UK.

"We've had a decade... of stagnant growth," he says in response, "and we've got to turn that around".

This year's budget was intended to "stabilise the economy" and set out the conditions for investment, Starmer adds.

He says additional measures are needed, including introducing reforms to planning and regulation to "drive the growth we need".

Image source, UK Parliament

Keir Starmer has taken his place in front of the Liaison Committee.

Stay tuned as we bring you what he says - and remember you can watch the proceedings live by clicking the Play button at the top of the page.

Questions on growth and the economy are likely to pose a tough test for Starmer today.

The main measure of inflation - looking at how much prices had risen over the previous 12 months - went up to 2.6% yesterday.

This is a lot lower than its peak during the cost of living crisis - in 2022, inflation soared to 11.2% - but it is a rise on the rate of 1.7% recorded in September.

Just hours ago, the Bank of England decided to keep interest rates on hold at 4.75%, and pointed to "uncertainty in the economy".

Meanwhile, the UK's economy shrank for the second month in a row in October, even though one of the government's main areas of focus is on growth - no wonder the chancellor called the performance "disappointing".

Image source, PA Media

A couple of weeks ago, Keir Starmer set out his "plan for change", which included six milestones that he wants the public to judge his performance on.

At the heart of this was a focus on public services; the prime minister pledged to treat 92% of NHS patients within 18 weeks. He also promised to invest in police, with 13,000 more officers recruited.

Earlier on this month, the government also recommended a pay rise of 2.8% for millions of public sector workers including teachers, NHS staff and senior civil servants. But unions say pay is still failing to keep pace with the rising cost of living.

Against these spending promises, Starmer could be asked by the committee to justify spending cuts and tax rises.

These include the decision to cut winter fuel payments, as well a hike in national insurance payments for businesses - many have warned this will lead to fewer jobs.

Image source, Reuters

On global affairs and security - one of today’s topics - there’s no shortage of issues for Keir Starmer to get to grips with.

In Syria, the prime minister will be hoping for a smooth transition into a new post-Assad era, led by the Hayat Tahrir al-Sham (HTS) rebel group. He now has a decision to make on whether to lift sanctions on the country and de-list HTS as a terrorist organisation.

Israel might have reached an uneasy ceasefire in Lebanon last month, but airstrikes continue in Gaza. Starmer will no doubt be asked about reports that Israel and Hamas could be close to reaching a similar agreement.

And, as Putin today gives his annual end-of-year speech, the war in Ukraine rumbles into its third Christmas. The PM will likely be asked about further UK intervention after Defence Secretary John Healey went to Kyiv to discuss the possibility of sending troops to train Ukrainians.

Image source, PA Media

26 July: The new PM arrives prepared for the Paris 2024 Olympic Games. Starmer's neighbours might have felt a tad underdressed. (see above)

29 July: Chancellor Rachel Reeves announces she’s scrapping Winter Fuel Payments for those not on pension credit or means-tested benefits. She blames the previous government’s “unforgiveable” economic legacy.

30 July - 5 August: The PM condemns “far-right thuggery” as riots and violent disorder spread across the UK following the fatal stabbing of three young girls at a dance class in Southport.10 September: Hundreds of prisoners are released early in England and Wales as part of a government scheme to ease overcrowding in prisons.

18 September: The end of two years’ of train driver strikes? Drivers accept a deal which the Aslef union says works out at 15%, is backdated, pensionable and includes drivers who retired or left the industry during the dispute

2 October: Starmer repays thousands of pounds worth of gifts and hospitality received since he became PM, his office says, and he proposes a new code of conduct for ministers.

10 October: Ukraine’s President Zelensky is welcomed in Downing St, along with Nato’s new Secretary General Mark Rutte. Sir Keir pledges “continued support” for Ukraine.

30 October: Chancellor Rachel Reeves unveils Labour’s first Budget since 2010, with tax rises worth £40bn to fund the NHS and other public services

Iain Watson
Political correspondent

If the inquisitors stay focussed, there are difficult questions that can be put.

MPs might question what information the government has seen on how the national insurance increase is affecting growth prospects, business confidence, and job creation.

They might press for more details of the reforms planned for public services, and about the difficulties in recruiting and retaining staff.

The might want to hear the PM's view of how a Trump presidency could affect Ukraine and Nato, and why UK officials are talking to a proscribed terrorist group in Syria.

Pensions isn't formally on the agenda so it remains to be seen whether the controversial winter fuel cuts and the decision not to compensate Waspi women – currently causing consternation in Sir Keir Starmer's own party – will be shoe-horned in to the discussion.

After a difficult six months in office, the PM must be looking forward to the Christmas break, and hope that at least some on the committee will show a smattering of seasonal goodwill.

Iain Watson
Political correspondent

The liaison committee consists of the chairs of other cross party committees, each with their own area of expertise.

The standard previews of these ninety minute encounters tend to suggest the prime minister will "get a grilling".

While it could be said that in 2022 Boris Johnson, teetering in number 10 after partygate, got skewered rather than grilled, most PMs usually only experience a slight defrosting.

That's because each MP has a limited time to ask follow up questions if they don’t think they have had an adequate answer to their initial inquiry.

The PM will have brushed up on each of the topics that will be covered in advance – in this case, on growth and the economy; public services and the plan for change; and "global affairs and security".

I’m told the PM does not intend to say anything new on each topic.

Image source, Reuters

Dame Meg Hillier, a Labour MP, will chair the session today, which will cover the economy, public services, global affairs and security - not necessarily in that order.

Liam Byrne MP, also Labour, who wrote a book called The Inequality of Wealth, will question the PM on the economy. He is joined by others, including Lib Dem Alistair Carmichael, who is chair of the Environment, Food and Rural Affairs Committee.

The MPs quizzing Starmer on public services and his plan for change include Labour's Debbie Abrahams, Tory Sir Geoffrey Clifton-Brown and Helen Hayes, also from Labour.

Starmer will also take questions on global affairs and security from Conservative Dame Karen Bradley, who chairs the Home Affairs Select Committee, Labour's Tanmanjeet Singh Dhesi MP and chair of the Foreign Affairs Committee, Labour's Emily Thornberry.