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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to serve under your chairmanship, Mr Owen. I congratulate my right hon. Friend the Member for Loughborough (Nicky Morgan) on securing this important debate. I am delighted to respond to the points that she has raised, although I have to gently say that I thank her for the unintended promotion—I am but the Local Government Minister, not the Minister for Housing and Planning. However, I know the Minister for Housing, my hon. Friend the Member for Esher and Walton (Dominic Raab), will be keenly listening, and will hear from me regarding the points that she has raised.
My right hon. Friend for Loughborough raised the key role of communities in the planning system, and the need for local people to believe that being involved is worth while. Community participation is vital to their accepting the development required to meet our housing needs. My right hon. Friend referred to a number of specific planning cases but, as she kindly acknowledged, I am not in a position to comment on the detail or merits of those ongoing planning applications and appeals. However, I will talk more generally about the importance that the Government place on communities when it comes to plan making and planning decisions, and I will address the three areas of concern that she highlighted.
Local plans are prepared in consultation with communities and play a key role in delivering development and the necessary infrastructure in the right places. They provide clarity to communities and developers about where homes should and should not be built, so that development is planned rather than the result of speculative applications. It is crucial that local authorities have up-to-date local plans, produced in consultation with local people. As my right hon. Friend mentioned, her constituents are concerned that some development is placing pressure on existing infrastructure and services in their communities.
Up-to-date plans are an important means of identifying where infrastructure needs to be strengthened, and I am pleased to tell my right hon. Friend that the Government are introducing reforms specifically in that area. Those reforms will mean that developers know exactly what contributions are expected of them and that local communities are clear about the infrastructure that they will get in their area alongside new homes. Two separate consultations—one on developer contribution specifically and a broader one on the NPPF—have just concluded, and both included questions on that topic. The Government will introduce proposals in those areas later in the year, but the point that my right hon. Friend made is spot on: local communities need to know that infrastructure will be there alongside the housing that they are accepting in their area.
More broadly, as my right hon. Friend will know, the Government agree that supporting infrastructure is important. That is why we recently announced a £5 billion housing infrastructure fund, specifically to fund the types of infrastructure she referred to in areas where it can make the difference between a housing development happening or not. I hope that provides some reassurance.
My right hon. Friend pointed out that some authorities, including her own, are deemed not to have a five-year land supply due to land banking and slow rates of delivery. That lack of supply means that plan policies are not considered to be up to date, and applications are assessed against the presumption in favour of sustainable development. Importantly, the presumption in favour of sustainable development does not mean development at all costs. Any adverse impacts of a development will still need to be taken into account. Our housing White Paper acknowledged that the current policy on five-year land supply, although it has been effective in delivering homes, has had some negative consequences, such as those experienced in my right hon. Friend’s constituency.
In response, the Government have proposed some reforms to how land supply is calculated. The draft national planning policy framework offers local authorities the opportunity to have their five-year housing land supply agreed on an annual basis and then fixed for a one-year period, as my hon. Friend the Member for Henley (John Howell) mentioned. The Government believe that that will help to address the situation that my right hon. Friend the Member for Loughborough raised. That ability to fix for one year will reduce the number and complexity of appeals, and provide greater certainty to ordinary residents and to the local authority in their decisions. I hope that she will look at how that works when it is introduced, and then come back to us with her views on how it is working in her local area.
Obviously, in exchange for that new ability, local authorities need to be realistic about meeting their planning needs, and we are addressing that through the NPPF revisions. It seems that my right hon. Friend’s local authority is being forward-looking regarding its housing needs. It is sensible for all local authorities to have a broad range of sites, especially small ones, as my hon. Friend the Member for North Cornwall (Scott Mann) rightly mentioned. That is included in the NPPF, and provides a buffer on the five-year land supply so that areas are not vulnerable to individual sites being built out slowly. That way, they can ensure that individual developers and speculators do not hold an advantage.
My right hon. Friend the Member for Loughborough was right to highlight the very large gap between the number of permissions that have been granted by local authorities across the country and the number of new homes that have been built. The housing White Paper said that a third of all new homes granted planning permission between 2010 and 2015 had not been built out. That was quite a striking statistic, and there was clearly a concern, which my right hon. Friend highlighted, that it is in the interests of speculators and developers to snap up land for housing and then sit back and wait for prices to rise. Clearly, that would not be appropriate. That is why, as she acknowledged, the Government appointed my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) to examine that issue. We will see his initial conclusions shortly, and I know that she, like the Government, will be very interested to hear what he has to say.
Nicky Morgan
The Minister is making a very helpful speech, which I shall study with great care. Our right hon. Friend the Member for West Dorset states in his interim report that, once detailed planning permission is granted for large sites, the fundamental driver of build-out rates appears to be the absorption rate. That is the rate at which newly constructed homes can be sold—or, importantly, at which the housebuilder believes they can be sold—successfully into the local market without materially disturbing the market price. I hope that will be at the forefront of the final report and the Government’s response. Housing is needed, and although we are on the side of enterprise, as I am sure the Minister will agree, we must also be on the side of people trying to get homes. It is not just about developers’ profits.
Rishi Sunak
My right hon. Friend understands the power of enterprise and makes her point well. I shall ensure that my right hon. Friend the Member for West Dorset is aware of her point. It would be wrong for me to prejudge the final conclusion of his report, but she highlights a point of interest and I am sure that it will be taken into consideration in his deliberations.
I am delighted that we were joined in the debate by my hon. Friend the Member for Henley, who is the Prime Minister’s champion for neighbourhood planning. I attest to his personal ability to galvanise and support local communities as they go through the local neighbourhood planning process, not only in my constituency but up and down the country.
Scott Mann
On local democracy, I see the Minister’s Parliamentary Private Secretary, the hon. Member for Morley and Outwood (Andrea Jenkyns), in the Chamber. We were vice-chairs of the all-party parliamentary group for local democracy and firm believers that town and parish councils should be given the ability to allocate within their developments some registered social landlords’ properties, taking them away from the local authority and putting them into the hands of the real decision makers. Will the Minister look at that at a later date?
Rishi Sunak
I applaud the work in support of local democracy not only of my fantastic PPS, but of my hon. Friend the Member for North Cornwall. Indeed, it was a pleasure to attend the conference for star councils held by the National Association of Local Councils, which highlights the important work of parish councils. I am happy to look into the matter he raises, but he will forgive me for not giving a specific answer right now.
Through neighbourhood planning, communities may have an even greater say in how their areas are planned and real power to shape the future development of their areas. Neighbourhood planning provides communities with a powerful set of tools to say where developments such as homes, shops and offices should go, what they should look like and what facilities should be provided. I am delighted that more than 2,400 communities have begun to shape the future of their areas. Some 13 million people across England now live in a neighbourhood planning area, and four of those areas, including Barrow upon Soar, are in the constituency of my right hon. Friend the Member for Loughborough. I am grateful for her previous contributions in the House, which have demonstrated her support for community-led planning.
My right hon. Friend asked about support. The Government continue to support groups not just through the valiant efforts of my hon. Friend the Member for Henley, but financially, too—£23 million has been made available for various support programmes, from this year through to 2022. Support is also given through regulation: when a planning application conflicts with a neighbourhood plan that has been brought into force, planning permission should not normally be granted.
We recognised, however, that some neighbourhood plans were being undermined because the local planning authority could not demonstrate the five-year land supply. To remedy that, in December 2016 the Government issued a written ministerial statement to ensure that national planning policies provide additional protection to such communities. The specific change was to protect neighbourhood plans that are less than two years old and that allocate sites for housing, as long as the local planning authority has more than three years of deliverable housing sites. That was the point that my hon. Friend the Member for Henley made. I understand that the local authority of my right hon. Friend the Member for Loughborough has a supply for more than three years, so that protection should be particularly helpful in her case.
Lee Rowley (North East Derbyshire) (Con)
In councils such as mine, which have not particularly pushed neighbourhood plans, when a parish council does not want to take up the opportunity of such a plan, will the Government look at the potential for other interested resident groups in the area to do something similar to a neighbourhood plan even when the parish council is unwilling or unable to propose one?
Rishi Sunak
I suggest that my hon. Friend should, in short order, invite my hon. Friend the Member for Henley to visit his area. I honestly believe that when we bring together people from the parish council and the local area to listen to my hon. Friend, they will be galvanised into action. The powers contained in neighbourhood planning are significant, and a local community would be hard-pressed not to want to seize those powers and to shape its own destiny once it has received my hon. Friend’s wisdom.
Ross Thomson (Aberdeen South) (Con)
I speak from a Scottish angle, and I am interested in this debate as the former chairman of Moray Council’s planning committee. Does the Minister agree that there is a real risk that when communities get involved in decision-making processes and a planning committee such as Moray Council’s agrees with them, but then the decision is then overturned by the national Government in Scotland, as we see more and more often, those communities are left disenfranchised? The great work they can do locally is lost, because they do not feel that their say is being heard.
Rishi Sunak
I agree with my hon. Friend. This Government very much support local communities shaping their own destinies. That is why we have supported neighbourhood planning so strongly and strengthened the provisions under which local communities shape their own futures. I know that he will welcome that, and I hope that it provides an example for the Government in Scotland to follow.
My right hon. Friend the Member for Loughborough also talked about people being consulted on planning applications. She expressed some concern about people who objected to applications not being notified. I appreciate how distressing that must be for communities, especially for people who have taken time to engage in the process, as she rightly highlighted. The planning appeals regulations, however, already require the local planning authority to notify everyone who made representations during the planning application process that an appeal has been lodged. That notification should include information on where to send any representations on the appeal and by when. Also, when appeals are decided by a hearing or inquiry, the Planning Inspectorate notifies the appeal parties of the decision and publishes all appeal decisions on its website. The inspectorate will also send copies to any interested party who has requested one. I hope that that is of some help to my right hon. Friend. I appreciate that the process is not fully inclusive, but she will understand the need to trade off the burden in large situations where multiple people have engaged in the process against the ability to request notification.
Nicky Morgan
I thank the Minister for that response. Of course there is a trade-off, but modern technology—in spite of the general data protection regulation, which we are all struggling with at the moment—means that notification of large numbers of parties is possible. I encourage him to look at that in the spirit of doing things with local communities, rather than doing things to them.
Rishi Sunak
My right hon. Friend makes her point well. I shall certainly ensure that the Minister for Housing is aware of that.
Finally, in the brief time available, I turn to the question of Government guidance on the drafting and discharge of conditions, and whether that guidance is sufficiently robust. Normally, the drafting and discharge of conditions is a matter between the individual local planning authority and the developer. Planning inspectors are required to follow national guidance, and their internal training manuals are continually updated. The Department is not aware that the quality of guidance has been raised as a problem elsewhere, but if my right hon. Friend the Member for Loughborough or her local planning authority think that the guidance in any specific area is lacking, we would be delighted to consider any suggestions that she has for how it might be improved. We look forward to receiving those in due course.
I am grateful to my right hon. Friend for securing this important debate and to all hon. Members who have contributed to it. All of us as constituency MPs receive the correspondence to which she alluded. We know how important the place in which we live is, and how it develops and evolves in housing and all other aspects is incredibly important. That is what people tend to talk to us about when we knock on their doors—not about Brexit—so it is absolutely right for this topic to receive our attention and focus. I am delighted to say that the Government strongly support the principle of local communities shaping their future, using the powers that they have been given through the neighbourhood planning process and local plans. I hope that the reforms that we are making will go some way to addressing some of the concerns that my right hon. Friend has expressed today, but I look forward to continuing the dialogue with her in the months to come.
Question put and agreed to.