Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Thursday 20th April 2023 Lords Chamber

[Lord Thurlow (CB)]

I thank the noble Lord for his comment. I agree entirely with what he says. Without being able to challenge line-by-line a financial viability appraisal, it becomes an impossible task. A lot of the elements of financial appraisals are subjective, and value is therefore very much in the eye of the beholder. I absolutely agree with the noble Lord’s comment. However, until developers are required to provide sufficient social housing, together with the contribution from government sources, I unconditionally support the amendment tabled by the noble Lord, Lord Best.

[The Parliamentary Under-Secretary of State, Department for Levellin Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank my noble friend Lord Young of Cookham for his explanation of the difficult decisions that social landlords must navigate through with the competing requirements on their rental amounts. That is really important; it is not just about building other properties—there are many other pressures that we continue to put upon them.

Amendment 241A, and Amendments 242 and 242ZA, tabled by the noble Lord, Lord Stunell, relate to the definition of affordable housing. It is right to raise the importance of ensuring that affordable housing meets the needs of those who require it. Before addressing the amendments specifically, I assure noble Lords that the Government recognise the need to increase the supply of the most affordable type of affordable housing—that is to say, let at social rent. That is reflected in our commitment in the levelling-up White Paper to increasing the amount of social housing available over time to provide the most affordable housing for those who need it. A large number of new houses to be delivered through our £11.5 billion affordable homes programme will be for social rent.

The consultation that we published before Christmas on the NPPF also recognised the need for more social rent homes. Subject to the outcome of that consultation, we are proposing to make changes to the NPPF to make it clear that local planning authorities should give greater importance in planning to social rent homes when addressing their overall housing requirements in their development plans and making planning decisions. However, we also recognise that local authorities need flexibility to deliver exactly what is needed in their area, and this may vary depending on local circumstances. We want to ensure that, when there is innovation in models for the delivery of much-needed housing to meet the needs of those who require it, we can flex the system to incorporate such innovation.

So, we are aiming for a “Goldilocks zone”. If we define affordable housing too strictly either within the Bill or the NPPF, we risk stripping local authorities of their flexibility to decide what is appropriate in their area. But, if we leave the definition of affordable housing entirely to local authorities, we risk losing the levers to drive important government ambitions, including those relating to the increased delivery of social rent. That is why we are keen to maintain the existing approach, in which the Government set the direction through policy and regulation, while also allowing space for local authorities to shape this approach to best meet local need.

It is for that reason that I am concerned that Amendments 241A, 242 and 242ZA, which are all concerned with linking the definition of affordable housing to a specific measure of income, would be too restrictive. In the National Planning Policy Framework, affordable housing is described as housing for sale or rent to those whose needs are not met by the market and which complies with one or more specific definitions. Those specific definitions encompass several different types of accommodation, to meet the housing needs of a range of people in different circumstances and housing markets.

This includes affordable rent as well as social rent homes. Affordable rent was introduced in 2011 to make it possible to deliver a larger number of affordable homes for a given amount of public investment. This has helped to support the delivery of over 632,600 affordable homes since 2010. Of that total, more than 440,000 were homes for rent and, of these, more than 162,000 were for social rent.

The definition in the National Planning Policy Framework, to be read alongside relevant Written Ministerial Statements and guidance, also encompasses a range of options, including shared ownership and First Homes, that offer routes into home ownership for households whose needs are not met by the market. These options are typically available at a price below market value. Eligibility can also be assessed in relation to overall household income, or in reference to local incomes and house prices.

In relation to shared ownership specifically, the Government understand the need to maximise the scheme’s affordability both at the initial point of purchase and over the longer term. That is why shared ownership is specifically designed to enable prospective buyers to purchase the right percentage share of their home for them, based on an affordability assessment conducted by an independent financial adviser. By linking shared ownership status as a form of affordable housing to a specific measure of income, we would be removing this much-needed flexibility to tailor the scheme to the individual circumstances of prospective buyers.

In relation to compulsory purchase orders and the community infrastructure levy—and its replacement, the infrastructure levy—the definition of affordable housing is linked to the definition of social housing in the Housing and Regeneration Act 2008. This definition encompasses both “low-cost rental accommodation” and “low-cost home ownership accommodation”. There is flexibility to add other descriptions of housing via regulations.

This ensures that regulations can then be amended so that definitions for the purposes of the community infrastructure fund can also be updated. This approach has been maintained in the Bill for those areas which touch on developer contributions: the infrastructure levy, street votes and community land auctions.

It is right to preserve this flexibility, alongside our proposal that national planning policy should place much greater value on homes for social rent. I therefore hope that the right reverend Prelate and the noble Lord, Lord Stunell, will not press their amendments.

I turn next to Amendments 262 and 500 in the names of the noble Baronesses, Lady Pinnock and Lady Taylor of Stevenage. These amendments seek to enable local authorities to mandate that new housing under their jurisdiction be affordable; to define “affordable” for that purpose; and to enable Ministers to set legally binding targets for the construction of social housing.

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[Lord Stunell (LD)]

The Minister is being extremely thorough. She has emphasised very much that she does not want to constrain local authorities exercising their decisions as is appropriate for their area. Can she give us some assurance that when the NDMPs and the revised NPPF are published that we will not find that they are being constrained via a different route?

[Baroness Scott of Bybrook (Con)]

I cannot give that assurance because we have not yet published them, but from everything I know of where the Bill is going with planning, we are encouraging local authorities to make those local decisions within the national framework, and I do not expect any further constraints on local authorities in that regard.

This is probably the right time to also bring up the issue that the noble Lord, Lord Thurlow, raised about transparency and viability. We agree with many of the criticisms of the misuse of viability assessments. That is why we are introducing the infrastructure levy, which removes the need for viability assessments as part of the planning permission process. If we take it out of the process, I hope we will not have this argument in the beginning. I have had many arguments over viability in the past. If we take it out of the system, I hope that will stop in future.

Moving to Amendment 438, in the name of the noble Lord, Lord Best, I understand why he has put forward his amendments. While I appreciate totally the sentiment behind them, we do not believe this would be the correct legislative vehicle for this policy. The Government have provided public assurances that they will not require local authorities to make a payment in respect of their vacant higher value council homes in the social housing Green Paper and stand by that commitment. The Levelling Up and Regeneration Bill does not address the topic of social housing, and the Government do not wish further to complicate such a complex set of legislative measures. However, the Government remain committed to legislating on this issue at an appropriate time in the future. I can provide assurances at the Dispatch Box to the noble Lord that the provisions laid out in Chapter 2 of Part 4 of the Housing and Planning Act 2016 have not been brought into effect and this Government have no intention of doing so. The provisions lack a regulatory framework to underpin the policy, and therefore there is no risk of local authorities being subject to them before we are able to legislate in the future. I hope this reassures the noble Lord that the Government remain committed to the decisions set out in the social housing Green Paper and that provisions will be made in future for this revocation to be issued. I hope the noble Lord will feel able not to move the amendment.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords for such an interesting debate on a crucial topic central to the Levelling Up and Regeneration Bill. As a result of the discussions we have had, the National Housing Federation’s figure for people in need of social housing is now 3.8 million—that is 1.6 million households. That is around 500,000 more households than the 1.16 million that are on official waiting lists. We all know the reasons for that: not everybody who is in need of housing will necessarily want to spend the next 20 years on a housing waiting list. In so many areas it is impossible to see people ever being housed as a result of those housing lists.

I thank the right reverend Prelate the Bishop of Leeds for his important comments, particularly about us needing to understand what genuinely affordable housing means. It certainly does not mean the definition that is used in planning at the moment. I agree with his comment that we are under an illusion that housing built under the “affordable homes” category will resolve the housing crisis—it will not. I totally support his comments about unfreezing local housing allowance levels, which would be an important step. Over many decades, we have seen sticking-plaster approaches to tackling the housing situation in this country, which consequently continues to deteriorate.

The noble Lord, Lord Stunell, rightly said that all of the amendments in this group are aimed at the same destination. Neither in renting nor in homes for sale does “affordability” mean what it says on the tin. We are all trying to make sure that we do what we can in the Bill to change that to some extent.

It is misleading to say that the Help to Buy schemes, which the noble Lord, Lord Stunell, mentioned, will tackle the issue for those most in need of housing. Taking a little risk, I will mention a conversation I had with a former Conservative Minister, who said, “I don’t know why you keep banging on about social housing, Sharon. Everyone can afford to buy a house under our Help to Buy scheme”. That is clearly not the case. The noble Lord, Lord Stunell, quoted his noble friend who said that, in Southwold, the affordability ratio is 17:1, and 13:1 after a 20% discount. That is the case in quite a lot of the country, although not everywhere.

More than 50% of social homes have been transferred into the private rented sector, which is a great grievance to those of us who deal with the impact of that. Where that rent is paid by universal credit or other benefits, instead of DWP paying—I shall use the figures I quoted earlier—£110 a week rent for those properties, the public purse now pays £235 a week for them. That does not make any sense at all, so we need to do all we can to address this situation.

As ever, I was pleased to hear from the noble Lord, Lord Best, about his amendment. I thank him for reminding us about the Affordable Housing Commission report, which is very good and we all need to take account of it. I am afraid I found the Minister’s comments on the amendment proposed by the noble Lord, Lord Best, a bit disappointing. None of us, including the Government, want this measure. The noble Lord, Lord Best, called it an “obnoxious” and “offensive” legislative provision, which it is. He pointed out that it has hung over local government since 2016. We could use this legislation to get rid of it. Why do we not do that? Under that legislation, local authorities were expected to raise the rent to market levels where tenants improved their financial situation. When that happened, it greatly concerned me that this would not benefit local communities or our housing stock but would tip into the bottomless bucket in the Treasury. It is time that that provision was scrapped. I absolutely support the comments of the noble Lord, Lord Best, about local decisions being taken on right-to-buy discounts. That measure is way past time, and we should absolutely have it.

The noble Lord, Lord Young, spoke about unfreezing local housing allowance, which I agree with. He also mentioned discretionary housing payments. In many local authorities, the allocated amount of discretionary housing payment runs out in Quarter 1, and then various bodies, including government advisory bodies and Citizens Advice, often send tenants to their councils to request discretionary housing payment, when in fact it has run out in the first three months of the year. That is simply because of the cost of living crisis and the level of rents that are putting so much pressure on those discretionary housing payments.

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Moved by

[Baroness Scott of Bybrook]

242A: Schedule 8, page 327, line 9, at end insert—
“Local Government Act 1972
A1 In section 138C of the Local Government Act 1972 (application of sections 138A and 138B to other authorities), in subsections (1)(s) and (2)(c), for “an order under section 29” substitute “regulations made under section 15J”.”Member's explanatory statement
This amendment inserts an amendment to the Local Government Act 1972 which is consequential upon Schedule 7 to the Bill.

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Moved by

[Baroness Scott of Bybrook]

248A: Clause 99, page 109, leave out lines 12 to 16 and insert—
“(i) an Authority election, where any part of the street area to which the street vote development order would relate is within the City of London, or(ii) an election of councillors of any relevant council (other than the City of London) any part of whose area is within the street area to which the street vote development order would relate,”Member's explanatory statement
This amendment amends the conditions for an individual to be part of a “qualifying group” for the purposes of new section 61QB of the Town and Country Planning Act 1990 (as inserted by clause 99), to remove the overlap in cases where any part of the street area to which the street vote development order would relate is within the City of London (which is also a “relevant council” for the purposes of the 1990 Act).

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Moved by

[Baroness Scott of Bybrook]

256A: Clause 99, page 117, line 22, leave out subsections (3) to (13) and insert—
“(3) Schedule (Street votes: minor and consequential amendments) contains minor and consequential amendments in connection with this section.”Member's explanatory statement
This amendment introduces a new Schedule which makes minor and consequential amendments in connection with Clause 99 (street votes).

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Moved by

[Baroness Scott of Bybrook]

257A: After Clause 100, insert the following new Clause—
“Street votes: modifications of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017The Secretary of State may by regulations make provision modifying the application of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 (S.I. 2017/517) in relation to the grant of planning permission by a street vote development order.”Member's explanatory statement
This amendment provides a power to modify the application of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 in relation to the grant of planning permission by a street vote development order.

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Moved by

[Baroness Scott of Bybrook]

258A: Before Schedule 9, insert the following new Schedule—
“ScheduleStreet votes: minor and consequential amendmentsTown and Country Planning Act 1990
1 (1) TCPA 1990 is amended as follows.(2) In section 5 (the Broads), in subsection (3), for “61Q” substitute “61QM”.(3) In section 56 (time when development begun), in subsection (3)—(a) after “(7),” insert “61QI(8),”;(b) for “108(3E)(c)(i)” substitute “, 108(3E)(c)(i), 108(3DB)(c)(i)”.(4) In section 57 (planning permission required for development), in subsection (3), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(5) In section 58 (granting of planning permission: general), in subsection (1)(a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(6) In section 62 (applications for planning permission or permission in principle), in subsection (2A)—(a) at the end of paragraph (a) omit “and”;(b) after paragraph (b) insert “, and(c) applications for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1).”(7) In section 65 (notice of applications for planning permission or permission in principle), in subsection (3A)—(a) at the end of paragraph (a) omit “and”;(b) after paragraph (b) insert “, and(c) any application for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1) or any applicant for such consent, agreement or approval.”(8) In section 69 (register of applications etc)—(a) after subsection (1)(cza) insert—“(czb) street vote development orders or proposals for such orders;”;(b) in subsection (2)(b), after “Mayoral development order,” insert “street vote development order or proposal for such an order,”.(9) In section 71 (consultations in connection with determinations under section 70), in subsection (2ZA)—(a) at the end of paragraph (a) omit “and”;(b) after paragraph (b) insert “, and (c) an application for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1).”(10) In section 74 (directions etc as to method of dealing with applications), in subsection (1ZA)—(a) in paragraph (a)—(i) at the end of sub-paragraph (i) omit “and”;(ii) after sub-paragraph (ii) insert—“(iii) a consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1), and”;(b) in paragraph (b)—(i) at the end of sub-paragraph (i) omit “and”;(ii) after sub-paragraph (ii) insert “, and“(iii) applications for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1).”.(11) In section 77 (reference of applications to Secretary of State), in subsection (1), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(12) In section 78 (right to appeal), in subsection (1)(c), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(13) In section 88 (planning permission for development in enterprise zones), in subsection (9), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(14) In section 91 (general condition limiting duration of planning permission), in subsection (4)(a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(15) In section 94 (termination of planning permission by reference to time limit: completion notices), in subsection (1), after paragraph (d) insert “; or(e) a planning permission under a street vote development order is subject to a condition that the development to which the permission relates must be begun before the expiration of a particular period, that development has been begun within that period, but that period has elapsed without the development having been completed.”(16) In section 108 (compensation)—(a) in the heading, for “or neighbourhood development order” substitute “, neighbourhood development order or street vote development order”;(b) in subsection (1)—(i) in paragraph (a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”;(ii) in the words after paragraph (b), for “or the neighbourhood development order” substitute “, the neighbourhood development order or the street vote development order”;(c) in subsection (2), for “or a neighbourhood development order” substitute “ , a neighbourhood development order or a street vote development order”;(d) in subsection (3B)—(i) in paragraph (ba), at the end omit “or”; (ii) after that paragraph insert—“(bb) in the case of planning permission granted by a street vote development order, the condition in subsection (3DB) is met, or”;(e) after subsection (3DA) insert—“(3DB) The condition referred to in subsection (3B)(bb) is that—(a) the planning permission is withdrawn by the revocation or modification of the street vote development order,(b) notice of the revocation or modification was published in the prescribed manner not less than 12 months or more than the prescribed period before the revocation or modification took effect, and(c) either—(i) the development authorised by the street vote development order had not begun before the notice was published, or(ii) section 61QI(8) applies in relation to the development.”(17) In section 109 (apportionment of compensation for depreciation), in subsection (6), in the definition of “relevant planning decision”, for “or the neighbourhood development order” substitute “, the neighbourhood development order or the street vote development order”.(18) In section 171H (temporary stop notice: compensation), in subsection (1)(a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(19) In section 264 (cases in which land is to be treated as not being operational land), in subsection (5)(ca), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(20) In section 324 (rights of entry), in subsection (1A)—(a) the words from “the reference” to the end become paragraph (a);(b) after that paragraph insert “, and(b) the reference to a proposal by the Secretary of State to make any order under Part 3 includes a reference to a proposal submitted (or to be submitted) to the Secretary of State for the making of a street vote development order.”(21) In section 333 (regulations and orders)—(a) after subsection (3) insert—“(3ZZA) Subsection (3) does not apply to a statutory instrument containing regulations made under any of sections 61QB to 61QJ or section 61QL if a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”;(b) after subsection (3ZA) insert—“(3ZZAA) No regulations may be made under section 61QC(3), 61QH(2) or 61QI(5) unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.”(22) In Schedule 1 (local planning authorities: distribution of functions), in paragraph 6A, at the end insert “or any of sections 61QA to 61QM (street vote development orders)”.Planning (Listed Buildings and Conservation Areas) Act 1990
2 (1) The Planning (Listed Buildings and Conservation Areas) Act 1990 is amended as follows. (2) In section 66 (general duty as respects listed buildings in exercise of planning functions), in subsection (4), after “orders” insert “or street vote development orders (except as provided by SVDO regulations within the meaning given by section 61QM of the principal Act)”.(3) In section 72 (general duty as respects conservation areas in exercise of planning functions), in subsection (4), after “orders” insert “or street vote development orders (except as provided by SVDO regulations within the meaning given by section 61QM of the principal Act)”.Elections Act 2022
3 In section 34 of the Elections Act 2022 (campaigners), in subsection (6), in the definition of “local referendum”, after paragraph (d) insert—“(e) section 61QE of the Town and Country Planning Act 1990 (referendums on street vote development orders);”.The Conservation of Habitats and Species Regulations 2017
4 (1) The Conservation of Habitats and Species Regulations 2017 (S.I. 2017/1012) are amended as follows.(2) In regulation 75 (general development orders)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in the opening words, after “2017” insert “or a street vote development order”.(3) In regulation 76 (opinion of appropriate nature conservation body)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in paragraph (1), after “order” insert “or a street vote development order”;(c) in paragraph (6), after “order” insert “or a street vote development order”.(4) In regulation 77 (approval of local planning authority), in the heading, after “orders” insert “and street vote development orders”.(5) In regulation 78 (supplementary)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in paragraph (3)(b), after “order” insert “or development order”.(6) In regulation 85B (assumptions to be made about nutrient pollution standards)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in paragraph (1)(a) after “orders” insert “and street vote development orders”.”Member's explanatory statement
This amendment inserts a new Schedule which makes minor and consequential amendments in connection with clause 99 (street votes).

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[Lord Stunell (LD)]

I just want to briefly say that I very strongly support the plea put in by my noble friend in relation to a rural strategy. I am also interested to understand the Minister’s response to the queries that the noble Baroness on the Labour Front Bench has raised about subsection (7); it requires some further explanation. I wait to see what the Government’s amendments look like. With that, I am happy to sit down and let proceedings continue.

[Baroness Scott of Bybrook (Con)]

Amendment 258B tabled by my noble friend Lord Lansley touches on the very specific matter of drop-in applications—not a legal term but one that is used a lot in planning circles. I know he will be well-versed in these matters, and I am grateful to him for exposing me to such technical but none the less important aspects of the planning process at this time of night. I thank my noble friend.

As we have heard, this amendment has been brought forward in response to the judgment handed down last year by the Supreme Court on Hillside Parks Ltd v Snowdonia National Park Authority. My noble friend has given much more detail, but this case considered how far new planning permissions for development that would affect existing planning permissions make these earlier planning permissions unlawful to complete.

I would like to assure my noble friend that my department is already engaging with the development sector to understand the implications of the Hillside judgment for existing and future development practices. As he will know, the matter of drop-in permissions whereby a developer seeks a separate, new permission to overlap part of an existing planning consent has been highlighted as a concern, particularly given their role in supporting the delivery of large-scale developments, which can take several years to build out.

I recognise that the intent of my noble friend’s amendment is to provide legal clarity about the validity of existing planning permissions where a new, overlapping permission is brought forward. However, I must stress that the case law in this area is now quite clear that, unless expressly severable, an existing permission must be interpreted as an integrated whole, and that where a new, overlapping permission comes forward that materially departs from that earlier permission, such that it is impossible to deliver that earlier development, it would be unlawful to carry out further works under that earlier permission. Of course, where the existing permission is clearly severable, or where a new, overlapping permission is not material, it will still be possible for developers to make a drop-in application.

New Section 73B, as introduced by Clause 102, provides for a new, alternative way to make amendments to development proposals and enables minor variations to be made to existing planning permissions. This will allow for changes to be made to existing development proposals, such as to the descriptor plans or conditions, accounting for any amendments already made, providing that the cumulative effect of those amendments does not represent a substantial difference to the original permission. It will be for the local planning authority, in exercising its planning judgment, to decide what constitutes a substantial difference on a case-by-case basis. We anticipate, therefore, that the new Section 73B will provide an alternative route for making changes for many large-scale developments, rather than them having to rely on drop-in applications. We will continue to work closely with the sector to consider whether more guidance about varying permissions would be helpful, and I would be very happy to discuss this further with officials and my noble friend if he would find that useful. With that assurance, I ask my noble friend to withdraw his amendment.

Amendment 259 tabled by the noble Baroness, Lady Taylor of Stevenage, and moved by the noble Baroness, Lady Hayman of Ullock, is intended to probe the purpose of new subsection (7) in Clause 102. This amendment was also tabled in the other place, with the concern that the provisions as drafted would require applications under new Section 73B to be considered in accordance with the framework in place at the time of the original grant of planning permission. New subsection (7) requires that the local planning authority limits its consideration only to the difference in effect that could arise between the original permission and any subsequent grants to vary or remove conditions under Section 73 or the new route, as a result of granting planning permission under the new route.

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[Lord Foster of Bath (LD)]

I apologise for intervening at this late hour. On that point, since the Minister has promised she is going to write to people and has just said very clearly, on the record, that she shares the importance of economic development in rural areas, and given that I asked at Second Reading for evidence that the levelling up Bill had gone through the rural-proofing process, would she be kind enough to include in that letter details of how that process was carried out in relation to this Bill, because frankly, many of us think there is very little evidence of that?

[Baroness Scott of Bybrook (Con)]

I will certainly reflect on that question and see what we can do.

I thank the noble Lord, Lord Carrington, for his amendments, and I appreciate his concerns on a matter, which is close to his heart and to the heart of the noble Baroness opposite. While I support the intentions to lend further support to our rural economy, unfortunately I cannot accept this amendment, as it will not have the intended effect, and we believe it is unnecessary.

The permission in principle consent route is an alternative way of obtaining planning permission for certain housing-led development. When a proposed development is under consideration, it separates the matter of principle away from technical details. Our national planning policy framework strongly supports policies and decisions to promote sustainable development in rural areas. In particular, it states that to support a prosperous rural economy, local plans, neighbourhood plans and decisions should enable the development and diversification of agriculture and other land-based rural businesses.

Additionally, as set out in Section 58A of the Town and Country Planning Act, any economic development coming forward through permission in principle would have to be predominantly for housing development. Provision already exists to allow local planning authorities to grant permission in principle for economic development related to residential schemes within rural areas. Section 5A of the Town and Country Planning (Permission in Principle) Order 2017 also enables local planning authorities to grant permission in principle to any non-housing development if it is associated with residential development, and where the scale of the development and the use to which it may be put is specified.

I am aware that permission in principle is often used to test the principle of housing development within rural areas, rather than applicants going through the conventional planning application route, and these are assessed with our National Planning Policy in mind. It is a valuable tool in this respect, and I hope this provides reassurances to the noble Lord and the noble Baroness, and accordingly that she will withdraw his amendment on his behalf.

I turn now to Amendment 282, tabled by the noble Baroness, Lady Taylor of Stevenage, and put forward by the noble Baroness, Lady Hayman of Ullock, on the speeding up of the planning system. There are around 400,000 planning applications every year. The Government have heard many representations that the planning application process is too slow and inaccessible for some users—notably those without the expertise, such as everyday people. It therefore requires improvement and modernisation. The powers being brought forward in Clause 116 enable the Government to apply a more consistent, streamlined and digitally enabled approach to the way in which the applications are made, making it easier for everyday people to submit a planning application. This will also make planning data more accessible. My department is already working with local authorities to tackle the very issue that this amendment raises, working collaboratively with the local authorities through the Open Digital Planning project, which aims to increase efficiencies in the development management process through creating modern development management software. Local authorities using the software that we are trialling have seen an estimated 35% time saving in the pre-validation process, when an application is first submitted, and post-validation, when the process is to reach a decision.

Before enacting these powers, we will fully engage with the local planning authorities and the sector as a whole; given that one of the core aims of this power is to streamline the process, we will of course consider the impact on speed of decision-making. While I support the intention of this amendment, the Government are unable to support its inclusion and hope that the noble Baroness will not press it.

Lastly, government Amendments 260A and 260B provide for consequential amendments to Clause 102 to make consistent the legislation with respect to an application being made directly to the Secretary of State, in relation to new Section 73B and Section 73 of the Town and Country Planning Act 1990.

[Lord Lansley (Con)]

I am grateful to my noble friend, particularly for the opportunity to have further discussions with a view to coming back to this issue positively at Report. Drop-in permissions have played a significant part in enabling development to go ahead as people need it to do. The case law may now be clear, but it has become clear in the form in which it has developed only because there is no statutory basis for undertaking drop-in permissions in the way that they have been done for a number of years—and that is what we need to achieve. With her very kind response, I beg leave to withdraw Amendment 258B.

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Moved by

[Baroness Scott of Bybrook]

260A: Clause 102, page 132, line 7, leave out from “section” to “after” on line 8 and insert “62A (applications that may be made directly to the Secretary of State)—
(a) in subsection (2),”Member's explanatory statement
This amendment paves the way for the second amendment in the Minister’s name to Clause 102.