Wednesday 8th June 2022
(2 years, 4 months ago)
Commons ChamberLevelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate
The Secretary of State for Levelling Up, Housing and Communities and Minister for Intergovernmental Relations (Michael Gove)
I beg to move, That the Bill be now read a Second time.
I am delighted to be able to move the Second Reading of this Bill. The Government are getting on with the job, and no Department is doing more than my own. There are five Bills in the Queen’s Speech generated from our Department. As well as the Levelling-up and Regeneration Bill, there is legislation to improve conditions for those in social housing, to improve the rights of those in the private rented sector, to ensure that business rates can be updated so that our economy thrives, and to get rid of the pernicious employment of boycott, divestment and sanctions policies by those who seek to de-legitimise the state of Israel. I hope that all five pieces of legislation will command support across this House. They are designed to address the people’s priorities and to ensure that this Government provide social justice and greater opportunity for all our citizens.
This Bill looks specifically at how we can ensure that the Government’s levelling-up missions laid out in our White Paper published in February can be given effect, how we can have a planning system that priorities urban regeneration and the use of brownfield land, and how we can strengthen our democratic system overall.
Robert Halfon (Harlow) (Con)
My right hon. Friend will know that perhaps one of the most exciting pages in the levelling-up White Paper is page 238, which announces that there will be a new hospital health campus in Harlow over the coming years. He knows how important that is because of the fact that our current hospital estate is not fit for purpose despite the incredible work that staff do. Can he confirm that the timeline for our new hospital will be announced in the coming months?
Michael Gove
My right hon. Friend makes an important point. Of the more than 400 pages in the White Paper, page 238 is perhaps one of the most important, not least because it contains an image of what we can hope to see and what my right hon. Friend the Secretary of State for Health and Social Care will be announcing, which is action to ensure that my right hon. Friend’s constituents get the state-of-the-art, 21st-century hospital that they deserve. That would not happen, I am afraid, under the Opposition, because it is only through the investment that we are putting in and the sound economy that has been created under my right hon. Friend the Prime Minister’s leadership that we are able to ensure that the citizens of Harlow get the hospitals that they need.
Caroline Lucas
I wonder if there is a page missing in my copy of the Bill, because I was looking for the net zero test, which I am sure the Secretary of State would agree ought to be applied to all planning decisions, policies and procedures, yet it is conspicuous by its absence. Does he agree that if we are serious about using this Bill to really level up, then we need to have that net zero test? Can he commit to that now?
Michael Gove
I will say three things as briefly as I can. First, the national planning policy framework that will be published in July will say significantly more about how we can drive improved environmental outcomes. Secondly, there is in the Bill a new streamlined approach to ensuring that all development is in accordance with the highest environmental standards. Thirdly, as the hon. Lady knows, under the 25-year environment plan and with the creation of the Office for Environmental Protection, the non-regression principle is embedded in everything that we do. The leadership that my right hon. Friend the Prime Minister has shown, not least at COP26, in driving not just this country but the world towards net zero should reassure her on that front.
John Redwood (Wokingham) (Con)
I am pleased that the Secretary of State believes in more devolution. How much extra devolved power will our councils get to settle the very important issue of how much housing investment we should welcome?
Michael Gove
My right hon. Friend gets to the heart of two of the most important measures in this Bill: strengthening local leadership and reforming our planning system in order to put neighbourhoods firmly in control.
Sir Robert Neill (Bromley and Chislehurst) (Con)
May I follow up on my right hon. Friend’s point about local leadership? What more are we going to do about devolving fiscal responsibility to local authorities? Ultimately, if local authorities have true powers of leadership, they must have the means of raising revenue in their own areas in a way that does not increase taxation but offsets it, so that local decisions are funded locally.
Michael Gove
My hon. Friend, who was a distinguished local Government Minister, makes an important point—a point that was made just as eloquently and forcefully by Ben Houchen, the Mayor of Tees Valley Combined Authority, when he talked about the vital importance of leaders of combined authorities and others having more control over business rates and other fiscal levers. This legislation and the devolution negotiations that we are conducting with Ben and others are designed to move completely in that direction.
Dan Jarvis (Barnsley Central) (Lab)
On the subject of metro Mayors, the Secretary of State will have seen that the decarbonisation summit took place this week. Metro Mayors met and made an offer to the Government to work more closely with them on the transition to net zero. Has the Secretary of State seen the detail of that offer, and if not, will he get in touch with Mayor Tracy Brabin and look at what more can be done to work closely with the Mayors on this important agenda?
Michael Gove
The hon. Gentleman makes a very important point. Across the 12 metro Mayors, we have seen examples of leadership on the environment and the move towards net zero, and indeed on the modernisation of transport systems. I know that the Mayor of West Yorkshire is particularly keen to ensure that transport and spatial planning are aligned to drive progress towards net zero. I will do everything I can to work with the Mayors of West Yorkshire and South Yorkshire.
Michael Gove
Talking of South Yorkshire, I can see that the Chair of the Levelling Up, Housing and Communities Committee wants to intervene.
Mr Betts
I want to follow up on the two questions that Conservative Members have asked about transferring powers to local authorities and Mayors. I can see in the Bill welcome proposals to expand combined authorities to more parts of the country, particularly to county areas. What I cannot see anywhere—if I am wrong, the Secretary of State will point me to the precise clause—is the making available of more powers that are currently not devolved to any local authorities. Are any such powers going to be devolved, and if so, in which clause do they appear?
Michael Gove
The Chair of the Select Committee brings me to an important point, which is that this legislation is complemented by other activity that Government are undertaking on levelling up. That activity involves negotiations with metro Mayors, for example in the west midlands and in Greater Manchester, on the devolution of more powers. When my good friend the former Member for Tatton initiated the programme of devolution to metro Mayors, he did so by direct discussion with local leaders. We will be transferring more powers, and we will update the House on the progress we make in all those negotiations. I noted a gentle susurration of laughter on the Opposition Front Bench, but I gently remind them—I sure the Chair of the Select Committee knows this—that when Labour were in power, the only part of England to which they offered devolution was London. This Government have offered devolution and strengthened local government across England.
As I look at the Benches behind me, I find it striking that in this debate on this piece of legislation, which is about strengthening local government and rebalancing our economy, the Conservative Benches are thronged with advocates for levelling up, whereas on the Labour Benches there are one or two heroic figures—such as the hon. Member for Barnsley Central (Dan Jarvis) and the hon. Member for Wansbeck (Ian Lavery), who are genuine tribunes of the people—but otherwise there is a dearth, an absence and a vacuum.
Talking of dearths, absences and vacuums, may I commend to the Labour Front Benchers the speech given by Lord Mandelson today in Durham—a city with which I think the Leader of the Opposition is familiar—in which he points out that Labour has still not moved beyond the primary colours stage when it comes to fleshing out its own policy? In contrast to our levelling-up White Paper and our detailed legislation, Lord Mandelson says that Labour is still at the primary stage of policy development, but I think it is probably at the kindergarten stage.
We have put forward proposals, and we are spending £4.8 billion through the levelling-up fund and similar sums through the UK shared prosperity fund, to make sure that every part of our United Kingdom is firing on all cylinders—and from Labour, nothing. When it comes to addressing the geographical inequality that we all recognise as one of the most urgent issues we need to address, it is this Government who have put forward proposals on everything from strengthening the hand of police and crime commissioners, to strengthening the hand of other local government leaders, and providing the infrastructure spending to make a difference in the communities that need it.
Richard Graham (Gloucester) (Con)
My right hon. Friend rightly makes a powerful case for devolution and increased democracy, but is he aware that under this Bill, a combined authority can be created that transfers powers from second-tier councils to itself, without needing the councils’ consent? That is different from the position under the Local Democracy, Economic Development and Construction Act 2009. Does he agree that that would be tragic for real devolution to the lowest possible level, and that the consent of district councils to the transfer of any powers must be secured?
Michael Gove
My hon. Friend makes an important point, and it gives me an opportunity to pay tribute to and thank those who work at district council level. As we look at the pattern of local government across this country, it is important to recognise that one size does not fit all. Although I am a strong advocate of the mayoral combined authority model, and it has clearly brought benefits in areas such as Tees Valley and the west midlands, we need to be respectful of district councils and the structure of local government in those parts of the country that do not—and, indeed, need not or should not—move towards that model. I look forward to engaging with him and the Association of District Councils on how we can make sure that our devolution drive is in keeping with the best traditions in local government.
As my hon. Friend reminds the House, the devolution proposals outlined in the Bill extend the range of areas that can benefit from combined authority powers, and they strengthen scrutiny. One criticism that has sometimes been made of the exercise of powers by Mayors in mayoral combined authorities is that there has been inadequate scrutiny, particularly by the leaders of district authorities within those MCAs. Our Bill strengthens those scrutiny powers, and in so doing strengthens local democracy overall. That is in line with the progress that the Government have made, including on the Elections Act 2022, which the Minister for Local Government, Faith and Communities, my hon. Friend the Member for Saffron Walden (Kemi Badenoch), brought in.
When we talk about levelling up, and particularly when we think about changes to our planning system, we absolutely need to focus on effective measures to regenerate our urban centres. One challenge that the country has faced over the last three or four decades has been the decline in economic activity and employment in many of our great towns and cities. We need to make sure that people’s pride in the communities where they live is matched by the resources, energy and investment that they deserve.
I saw some of that energy on display when I was in Stoke-on-Trent just three weeks ago, under Abi Brown, the inspirational Conservative leader of Stoke-on-Trent City Council. Real change is being driven to ensure that all the six towns that constitute Stoke-on-Trent have their heart strengthened, their pride restored and investment increased.
Jonathan Gullis (Stoke-on-Trent North) (Con)
Will my right hon. Friend give way?
Michael Gove
I am just about to refer to my hon. Friend. In order to ensure that people have the tools they need, we need to tackle some of the things that generate urban blight. We need to deal with the problem of empty shops, vacancies and voids on our high street, which not only depress economic activity but contribute to a lower footfall and less of a sense of purpose, buzz and energy in our communities. That is why, following on from the ten-minute rule Bill introduced by my hon. Friend, we will be bringing forward compulsory rental auctions, so that lazy landlords who leave properties void when they should be occupied by local community trusts, businesses or entrepreneurs will be forced to auction those properties, to ensure that we have the entrepreneurs that we need and the small businesses that we want on the high streets that we love.
Jonathan Gullis
May I personally thank the Secretary of State? He came to the great towns of Tunstall and Burslem to see at first hand the regeneration of brownfield sites to create hundreds of new homes, and to look at the blight of rogue and absent landlords on our high streets in the town of Tunstall. He has sat down and met me on many occasions to look at this legislation, and it is a big win for the city of Stoke-on-Trent, as well as for Members from across this House. I want to put on the record a “Thank you” on behalf of the people of Stoke-on-Trent North, Kidsgrove and Talke.
Michael Gove
The communities of Tunstall, Burslem and Kidsgrove could not have a better advocate than my hon. Friend, and I could not have a better ally in shaping measures on urban regeneration. To drive urban regeneration, we will be increasing the council tax surcharge on empty homes. That is a means of making sure that we deal with that scourge and bring life back to all our communities.
Critically, we will also reform the compulsory purchase rules, because the way those powers operate often thwarts the desire of Homes England and others involved in the regeneration business to assemble the brownfield land necessary to build the houses and to get the commercial activity that we want in those communities. The reform in the Bill will ensure that the assembly of land required for urban regeneration becomes easier, so more of the homes that we need are built in the communities that need them in our towns and cities, rather than on precious green fields. The legislation also introduces new measures to facilitate the creation of the urban development corporations that have been integral in the past in driving some of the changes that we wish to see.
A significant part of the Bill seeks to reform the planning system, which I know is an issue of concern across the House of Commons. We all recognise that we have a dysfunctional planning system and a broken housing market. There is a desperate need for more new homes to ensure that home ownership is once more within the reach of many. It is more than just the planning system that needs to change: as my right hon. Friend the Prime Minister will outline later this week, changes need to be made to everything from the mortgage market to other aspects of how Government operate to help more people on to the housing ladder. Planning is part of that.
As well as making sure that we have the right homes in the right places, we must recognise, as the Bill and my Department do, why there has been resistance to new development in the past. Five basic and essential factors have led to resistance to development and our Bill attempts to deal with all of them. First, far too many of the homes that have been built have been poor quality, identikit homes from a pattern book that the volume of housebuilders have relied on, but that have not been in keeping with local communities’ wishes and have not had the aesthetic quality that people want.
One of my predecessors in this role, Nye Bevan, when he was the Minister responsible for housing in the great 1945-51 Government, made it clear that when new council homes are built, the single most important thing should be beauty. He argued that working people have a right to live in homes built with the stone and slate that reflect their local communities and were hewn by their forefathers, so that when someone looks at a council home and a home that an individual owns, they should not be able to tell the difference, because beauty is everyone’s right. I passionately believe that that is right and there are measures in the Bill to bring that forward.
Ruth Cadbury (Brentford and Isleworth) (Lab)
The Secretary of State rightly references the important role of local people in new developments, but the Osterley and Wyke Green Residents’ Association and Brentford Voice have expressed their concerns that the national development management policies in the Bill give the Secretary of State powers to overrule local people and the local plan, and that unlike for national policy statements, there is no requirement for parliamentary approval. In reality, is the Bill not the latest in a long line of power grabs by this Government?
Michael Gove
I am allergic to power grabs. I am entirely in favour of relaxing the grip of central Government and strengthening the hand of local government, which is what the planning reforms here do. The reference to the national development management policies is simply a way to make sure that the provisions that exist within the national planning policy framework—a document that is honoured by Members on both sides of the House, of course—do not need to be replicated by local authorities when they are putting together their local plans. It is simply a measure to ensure that local planners, whose contribution to enhancing our communities I salute and whose role and professionalism is important, can spend more time engaging with local communities, helping them to develop neighbourhood plans, and making sure that our plans work.
Sir Desmond Swayne (New Forest West) (Con)
May I suggest some powers that the Secretary of State might like to grab?
Sir Desmond Swayne
I suggest that the Secretary of State addresses a problem to which national parks are particularly prone, where a historic lawful development certificate is acquired because a caravan was previously located there, affording huge development on the basis of permitted development rights over which the national park authority and the planning authority have no control. That is a power that needs to be grabbed and given back to local authorities.
Michael Gove
I hear the important point about national parks, and the echo from my hon. Friend the Member for Isle of Wight (Bob Seely) with reference to areas of outstanding natural beauty. The environmental protections in the Bill should meet that need, but I look forward to working with my right hon. Friend and my hon. Friend in Committee to ensure that the protections are there.
Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
My right hon. Friend has referred to the national development management policies. There is great concern that they will override local planning authorities, which spend a great deal of time preparing their local plans that are then approved by Government inspectors. It would be quite wrong if national Government overrode them, and it would destroy the careful balance that has existed since the Town and Country Planning Act 1947, in which planning was devolved to local authorities.
Michael Gove
My hon. Friend gives me the opportunity to reassert that the NDMPs will not override local plans. Local plans have primacy—that is perfectly clear in this legislation. As a result of strengthening the plan- making system, we will make sure that we deal with the issues and questions that have led particular communities to resist development in the past.
I mentioned the importance of beauty. Specifically, for example, we will strengthen the role of design codes in local plans. Through our new office for place, which is a successor in some respects to the Commission for Architecture and the Built Environment but even better in its drive, we will be in a position to ensure that beauty is at the heart of all new developments. In particular, I pay tribute to my predecessors in this role, my right hon. Friend the Member for Newark (Robert Jenrick) and the late James Brokenshire, who worked to ensure that beauty, quality and higher aesthetic standards were at the heart of new architectural developments and did so much to reset the debate away from where it has been in the past and towards a brighter future.
Theresa Villiers (Chipping Barnet) (Con)
Will the Secretary of State give way?
Mr Betts
On a point of order, Madam Deputy Speaker. I am sure that the Secretary of State would not want to inadvertently mislead the House. In response to the question from the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) about the conflict between local plans and national policies, he made a comment—
Madam Deputy Speaker
I thank the Secretary of State. The hon. Gentleman is a senior Member of the House. It does not seem to be a point of order for me, but a point of argument with the Secretary of State, who is willing to give way. Will the hon. Gentleman withdraw his point of order so we can allow the Secretary of State to continue?
Madam Deputy Speaker
I thank the hon. Gentleman for withdrawing his non-point of order. I hand the Floor back to the Secretary of State.
Michael Gove
I understand that the hon. Gentleman wishes to intervene; I am delighted to give way.
Mr Betts
I thank the Secretary of State for giving way. Clause 83(2) proposes a new section 38(5C) to the Planning and Compulsory Purchase Act 2004, which says:
“If to any extent the development plan conflicts with a national development management policy, the conflict must be resolved in favour of the national development management policy.”
That is what it says—it overrides the local plan. It is in the Bill.
Michael Gove
It has always been the NPPF’s function to have those national policies, which have been agreed and which ensure that plans are in conformity with what this House wills our overall planning system to be. It is no more than a more efficient way to make sure that the existing NPPF and any future revisions of it are included in local plans.
Another reason why we sometimes see opposition to development is infrastructure. One of the critical challenges that we must all face when we contemplate whether new development should occur is the pressure that is inevitably placed on GP surgeries, schools, roads and our wider environment. That is why the Bill makes provision for a new infrastructure levy, which will place an inescapable obligation on developers to ensure that they make contributions that local people can use to ensure that they have the services that they need to strengthen the communities that they love.
Of course, section 106 will still be there for some major developments, but one of the problems with section 106 agreements is that there is often an inequality of arms between the major developers and local authorities. We also sometimes have major developers that, even after a section 106 has been agreed—even after, for example, commitments for affordable housing and other infra- structure have been agreed—subsequently retreat from those obligations, pleading viability or other excuses. We will be taking steps to ensure that those major developers, which profit so handsomely when planning permission is granted, make their own contribution.
Marsha De Cordova (Battersea) (Lab)
On the issue of viability that the Secretary of State has just raised, how does the Bill seek to prevent developers from going back and using viability as an angle to, say, reduce the number of affordable homes that they are expected to build in any new development?
Michael Gove
The reason for the infrastructure levy is that it ensures a local authority can set, as a fixed percentage of the land value uplift, a sum that it can use—we will consult on exactly what provisions there should be alongside that sum—to ensure that a fixed proportion of affordable housing can be created. The hon. Lady is quite right to say that there are some developers that plead viability to evade the obligations that they should properly discharge.
Andrew Selous (South West Bedfordshire) (Con)
The Secretary of State will be aware that, at the moment, someone can build tens of thousands of houses but people wait years and years for increased general practice capacity. Those from the Rebuild Britain campaign whom I met this morning tell me that they believe that integrated care boards and trusts will be prevented from requesting section 106 money to mitigate the impact of new housing, and medical facilities are but one of 10 types of infrastructure that there is no duty on local authorities to provide. Is he really confident that this will be better under the current Bill?
Michael Gove
I am absolutely confident it will be better, but my hon. Friend makes a very important point, which is that section 106 agreements—sometimes they work, and in many cases they do not—do need to be improved, and the proposals for our new infrastructure levy should do precisely that. However, the way in which the infrastructure levy will operate is something on which we will consult to ensure that it covers not just the physical infrastructure required but, as he quite rightly points out, the provision of critical healthcare.
Michael Gove
I am anxious to make just a wee bit more progress, because I am conscious that there are lots of folk who want—[Interruption.] Oh, all right then.
Rachel Hopkins
The Secretary of State is being generous with his time. This is about the infrastructure levy and the timing of its payment. At the moment, it appears that payment is going to be on completion, which benefits developers, but not the local authorities and place makers that will need to put in the infrastructure up front.
Michael Gove
The way the levy is going to operate will mean that, if the development value—the value uplift—for the developer is greater over time, local communities can get more of it. It is a way of making sure that there is appropriate rebalancing. Again, one of the things I want to stress, because it is important to do so, is that there are strengthened powers in the Bill to deal with some of the sharp practices we sometimes see in the world of development and construction. There are stronger enforcement powers, stronger powers to ensure that we have build out and stronger powers to deal with the abuse of retrospective planning permission within the system. I look forward to working with the hon. Lady and others to ensure that all those enforcement powers are fit for purpose.
Michael Gove
Ah, yes—brilliant! I give way to my hon. Friend the Member for Runnymede and Weybridge (Dr Spencer).
Dr Spencer
I thought there was going to be a bit of a fight there over who would intervene. I thank my right hon. Friend for giving way, and I welcome the provisions on planning enforcement. A key intervention, however, is to break the business model of rogue developers. Would he look again at the debate we had last year on my Planning (Enforcement) Bill, so that we can enhance these important powers to break this model and ensure that people cannot profit from gaming the planning enforcement system?
Michael Gove
Yes. The reason I was so pleased to be able to give way to my hon. Friend and constituency neighbour is that I think his legislation and the arguments he made were incredibly powerful. I am a bit wary about criminalisation, but I am keen to explore with him and others how we can have effective tools—real teeth. We have some proposals in the Bill, but they may not go far enough, which is why I hope we can discuss in Committee exactly what we need to do to ensure that enforcement is stronger.
I should say—I touched on the environment briefly earlier—that as well as making sure we have new development that is beautiful, that is accompanied by infrastructure and that is democratically sanctioned, we need to make sure we have new development that is appropriately environmentally sensitive. Let me repeat—
Mr Robertson
I am very grateful to my right hon. Friend for giving way. Just before he entirely leaves the issue of infrastructure, to which he is right to draw attention, one of the big problems is that the water companies do not provide adequate drainage systems when new builds are being proposed, so should they not have such systems in place before new developments actually start?
Michael Gove
My hon. Friend is getting me on to a subject that I have often touched on in the past, which is the role of water companies overall. When I was fortunate enough to be Secretary of State for Environment, Food and Rural Affairs, I was able to talk to the water companies about the way in which they have privileged financial engineering over the real engineering required to ensure that new developments are fit for purpose, and in particular about how we deal effectively with a lack of investment in infrastructure, such as a lack of effective treatment of waste water. The way in which some of the water companies have behaved, frankly, is shocking, which is why my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs will be bringing forward more proposals to ensure that the water companies live up to their proper obligations, because it is a matter of both infrastructure and the environment.
I mentioned earlier that the environmental outcome reports, which the Bill makes provision for, will strengthen environmental protection, and of course the Department for Environment, Food and Rural Affairs is helping to ensure that biodiversity net gain is integrated fully into the planning system to make sure we have the enhanced environment that all of us would want to pass on to the next generation.
As we recognise the need to develop homes in the future that are beautiful, with the right infrastructure, democratically endorsed and with the environmental externalities dealt with appropriately, we also want to ensure that they are parts of neighbourhoods, not dormitories. That is why it is so critical that we deal with one or two of the flaws—I will put it no more highly than that—within the current planning system. Such flaws mean, for example, that we can have developers that, because they do not build out, subsequently exploit the requirement for a five-year housing land supply to have speculative development in areas that local communities object to. We will be taking steps in this legislation and in the NPPF to deal with that.
We will also be taking steps to ensure that the Planning Inspectorate, when it is reviewing a local plan and deciding whether it is sound, does not impose on local communities an obligation to meet figures on housing need that cannot be met given the environmental and other constraints in particular communities. There are two particular areas, I think, where the Planning Inspectorate —and it is simply following Government policy—has in effect been operating in a way that runs counter to what Ministers at this Dispatch Box have said over and over again. That has got to change, and it is through both legislation and changes to the NPPF that we will do so. We will end abuse of the five-year land supply rules, and make sure that, if local authorities have sound plans in place, there cannot be such speculative development. We will also make sure that, even as we democratise and digitise the planning system, we are in a position to make sure that the Planning Inspectorate ensures not that every plan fits a procrustean bed, but that every plan reflects what local communities believe in.
Several hon. Members rose—
Michael Gove
Wow! Yes, I give way to my right hon. Friend the Member for North Somerset (Dr Fox).
Dr Liam Fox (North Somerset) (Con)
Will my right hon. Friend go further for the sake of clarity, and make sure that there is, if not an equation, at least a clear mechanism by which local authorities can net off the contradictory elements—floodplain, green belt—so that they are not asked to build houses in inappropriate numbers simply because of a national target?
Michael Gove
Exactly right—my right hon. Friend is spot-on. We do need to have a more sophisticated way of assessing housing need, and that is something we will be doing as part of revisions to the NPPF, but the protections my right hon. Friend quite rightly points out are integral to ensuring that there is democratic consent for development.
Jane Stevenson (Wolverhampton North East) (Con)
In Wolverhampton, we have developed right up to my northern boundary, which borders South Staffordshire. That land is currently under proposal for housing, and my residents in Wednesfield and Fallings Park really object to losing their beautiful green space and green belt. Could the Secretary of State reassure them that their views will be taken into account, even though this crosses local authorities and is at the edge of the West Midlands mayoralty?
Michael Gove
Absolutely. First, my hon. Friend’s constituents could not have a better champion. Secondly, green belt protection is critical. Thirdly, we will ensure that a local plan protects those areas of environmental beauty and amenity. Fourthly, we will also end the so-called duty to co-operate, which has often led some urban authorities to offload their responsibility for development on to other areas in a way that has meant that we have had not urban regeneration but suburban sprawl.
Several hon. Members rose—
Michael Gove
I am happy to give way to my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst) and then my hon. Friend the Member for Bosworth (Dr Evans) and my hon. Friend the Member for Isle of Wight (Bob Seely).
Kelly Tolhurst (Rochester and Strood) (Con)
On the issue of constraints, can my right hon. Friend give us some further detail about whether the local authority could argue for constraints on the basis of economic areas, for example? Could that be an opportunity to save my dockyard from closure, following a proposal for flats to meet a housing target?
Michael Gove
Again, a variety of factors can be part of a sound local plan. Indeed, at the moment, permitted development right provisions that allow us to move from commercial to residential are capped at a certain size to ensure that we recognise that some commercial sites should not be moved over to residential. In a way, that is often sensible, but not always, and certainly not when we are thinking about an historic dockyard that has existed since the days of Samuel Pepys.
Dr Luke Evans (Bosworth) (Con)
The Secretary of State is making a great argument on solving some of the flaws in the system. He may not have been privileged enough to be at the debate that I held yesterday on neighbourhood planning. One of the problems that came out was that, if a council does not have an up-to-date local plan—my Liberal Democrat-run borough council does not have one—neighbourhood plans get ridden roughshod over. What can my community do to stop and prevent the sprawl that happens in my constituency?
Michael Gove
I am shocked—shocked, I tell you—that a Liberal Democrat authority does not have a plan in place and, as a result, housing numbers are spiralling out of control. Imagine what would happen in other beautiful parts of our country such as Devon, in a community such as Tiverton, or Honiton, if Liberal Democrat politicians were in charge. I reassure my hon. Friend that this legislation will ensure that if you have a local plan in place—preferably one put in place by Conservative councillors—you will safeguard your green spaces and natural environment, and you will not have those developers’ friends—the Liberal Democrats—concreting over the countryside.
Bob Seely
On the Isle of Wight, we are separated by sea from the mainland. Our local building industry builds between 200 and 300 homes a year, and we cannot really build more. The standard methodology gives us ridiculous targets of 700-plus, and the nonsense of the mutant algorithm would have given us 1,200-plus. Even in the current consideration, we are forced to offer targets that realistically we cannot hope to build. What reassurance can he give the Island?
Michael Gove
My hon. Friend makes an important point. I think it is the case that the thinker who coined the phrase “mutant algorithm” is my hon. Friend the Member for Harborough (Neil O'Brien), who is now an Under-Secretary in the Department and working with me and the Minister for Housing to address precisely the concerns that he outlined. We need to build more homes, but we also need to ensure that how we calculate need and how plans are adopted is much more sensible and sensitive.
Michael Gove
Talking about sensible and sensitive, I give way to my right hon. Friend.
Theresa Villiers
The Secretary of State is saying much that suggests that he believes we should rein in the Planning Inspectorate and give back to local authorities more control over planning, but that is not in the Bill. So is he today at the Dispatch Box saying that he will table amendments to the Bill along those lines?
Michael Gove
I will say two things. First, I hope to work constructively with Back Benchers across all parties to ensure that the Bill is strengthened. I have never seen a piece of legislation introduced to the House that could not be improved in Committee, and I know that this Bill will be. I also look forward to good ideas, if they come, from Opposition Front Benchers.
Secondly, it is also the case that the publication of a revised NPPF and NPPF prospectus will help us to appreciate what the nature of the further amendments should be. As my right hon. Friend knows, in one or two areas of the Bill, there are placeholders, where more work requires to be done. I am frank about that and I look forward to working with her.
Several hon. Members rose—
Michael Gove
I am conscious that lots of people want to speak in the debate. I will accept interventions from the four people who are standing up, but I fear that I cannot take any more interventions. I will then briefly end.
Madam Deputy Speaker (Dame Eleanor Laing)
Order. The Secretary of State has just said what I was hoping he would say, so I do not have to say it. Sixty-two Members wish to speak in the debate. The time limit will be very short for each speech, and every intervention made is stopping somebody from getting to speak later. I have noted who has made the most interventions.
Michael Gove
I give way to the hon. Member for Warwick and Leamington (Matt Western).
Matt Western (Warwick and Leamington) (Lab)
The Secretary of State is being generous. On housing and the constraint of local authorities, in my constituency, we have an over-supply of 4,000, which a previous Housing Minister described as “very ambitious”—in other words, too much development. May I bring him back to the lack of GPs in infrastructure supply through development? Will he make NHS Providers a statutory consultee in any of these developments?
Andrew Gwynne (Denton and Reddish) (Lab)
I am interested in what the Secretary of State has said about the re-emphasis on the environmental protections. Of course, in urban areas, that is often urban green space rather than green belt. I have a case in Haughton Green in my constituency where the council closed Two Trees high school. When it closed the school, it said that there would be housing on the footprint of the school but that the fields around the school, in a heavily urbanised area, would be protected, so there would be a green doughnut. It now says that it has to build on the entire site to meet the Government’s housing targets. With what he just said, does he give hope to the people of Haughton Green that the council can look at Two Trees again?
Michael Gove
I cannot comment on a specific planning application for reasons that the hon. Gentleman knows well, but I appreciate the strength of his point and will ask the Minister for Housing to engage with him more closely on both that specific issue and the broader policy points that he raised.
Rachael Maskell (York Central) (Lab/Co-op)
As the Secretary of State knows, York also has a Liberal Democrat-run council, and the challenge we have is that the council is not building the tenure of housing that my local residents can afford either to rent or to buy. So how will this legislation really shift the dial on affordability?
Michael Gove
I have a lot of sympathy for the hon. Lady and the situation in which she finds herself. I know that she is a doughty champion for York—it is a beautiful city, and a potential home for the House of Lords if it does not want to move to Stoke—and that York needs the right type of housing and commercial investment. I look forward to working with her and with Homes England, and also to consider what we can do in the Bill to deal with some of the consequences of some of her constituents foolishly having voted for Liberal Democrats at the local level.
Munira Wilson (Twickenham) (LD)
The Secretary of State was asking for good ideas on things that have been missed in the Bill. On building more social and affordable housing and GP surgeries, there is a missed opportunity here to ensure that public sector-owned assets such as land and buildings, including police stations, can be sold for slightly below market value where a GP surgery is needed or housing associations want to build social housing. He is aware that I have been campaigning for that on Teddington police station in my constituency, which the Labour Mayor wants to sell to the highest bidder for luxury housing, even though the community wants a new GP surgery and more affordable housing. Will he put that provision in the Bill?
Michael Gove
Well, this is a first. It is the first time—certainly in the last seven years—that there has been a Lib Dem policy proposal that makes sense. I am nostalgic for those coalition years when, every so often, there was a Lib Dem policy proposal that made sense—they normally came from people who are no longer in the House—and that one does. Yes, she is absolutely right.
Madam Deputy Speaker, I should probably quit while I am ahead. We have consensus on one particular area where reform is needed. I stressed earlier, in introducing the Bill, that it sets out to ensure that urban regeneration becomes a reality, that our planning system is modernised, that the missions we have to level up this country are on the face of the Bill and that we are accountable to this House. There are so many colleagues who want to contribute, because that mission is so important. I beg leave to ask the House to give the Bill its Second Reading. With that, Madam Deputy Speaker, I will sit down.
The Minister for Housing (Stuart Andrew)
It is my pleasure to deliver the closing speech on Second Reading of the Government’s Levelling Up and Regeneration Bill. I begin by thanking hon. and right hon. Members from all parts of the House for their thoughtful contributions to this afternoon’s debate. Before I address some of the points that have been raised, I should say that accompanying each of the 12 missions in our levelling up White Paper, enshrined in law by this Bill, is a clear commitment from this Government to work with all political parties, across all four nations and all tiers of government, to build a stronger, fairer and more united country after covid.
Despite the negativity we have heard from the Opposition Front Benchers, I am pleased to report that when I go around the country, I find that Mayors and leaders of all political persuasions are keen to work with us to deliver this mission. I believe that the Bill will help us to make this shared vision a reality by supporting local leaders to take back control of regeneration, end the blight of empty shops and deliver the quality homes that communities need. It is about giving them the tools that they need to deliver, along with the other major pieces of work that Government are doing in this area. I am grateful to hon. Members who continue to engage constructively with us on the provisions of this Bill so that it delivers the transformative change that we all want.
Liam Byrne
Could the Minister say a word about how he will use the missions to drive the reduction of inequalities in our country? One approach that the Labour Government tried was the use of floor targets in neighbourhood renewal funds. He may have a different approach, but that detail is terribly important.
Stuart Andrew
The right hon. Gentleman will have seen that, as the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien) just reminded me, we have a whole annexe with the measures on that and we will be held to account by Parliament. That is the right thing to do. I cannot recall there ever being missions like this before Parliament so that every single Member of the House can challenge the Government on whether they have reached those objectives; it is a real opportunity for Parliament to hold the Government to account on those missions.
I echo the sentiment of my right hon. Friend the Secretary of State when he said in his opening remarks that we will continue to work closely with right hon. and hon. Members to further hone and refine the legislation before it is put on the statute book. We want to build on our £4.8 billion levelling-up fund which, as hon. Members know well, is supercharging connectivity by building the next generation of roads, bridges, cycle networks and digital infrastructure. Through the UK shared prosperity fund, more than £2.6 billion is being spent to help people in the most deprived parts of the country to access more opportunities and pursue better careers. With more than £2 billion pledged by my Department over the next three years, we are helping local authorities to redouble their efforts to tackle homelessness and rough sleeping, building on the incredible achievements in the pandemic.
I will turn to some of the issues that were raised today. One issue that hon. Members on both sides of the House spoke about, including my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon) and for Stoke-on-Trent South (Jack Brereton)—I understand that they are calling themselves “levelling-up central”—and the hon. Members for Denton and Reddish (Andrew Gwynne) and for York Central (Rachael Maskell), and my hon. Friends the Members for Gosport (Dame Caroline Dinenage) and for Don Valley (Nick Fletcher), is the importance of breathing new life into our high streets, towns and city centres, all of which were especially hard hit by the covid pandemic and now require investment and support to adapt and thrive.
Many hon. Members spoke about the importance of entrusting councils, which know their areas best, to get on with the job and to green light regeneration schemes in their areas. We agree, which is why the Bill liberates councils to more easily redesign and regenerate their communities. The Bill allows local authorities to hold high street rental auctions so that landlords are encouraged to put empty buildings to good use. It makes the temporary freedoms around al fresco dining permanent, so that we can create more buzzing vibrant high streets. I have listened carefully to my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) and I will take her thoughts further—well, I would not be allowed not to do so.
Most importantly, the Bill makes it much easier for councils to issue compulsory purchase orders so that they can repurpose boarded-up shops and derelict sites. All those changes are accompanied by a series of common-sense reforms that will mean that no council has to pay over the odds in hope value to landowners when it issues compulsory purchase orders—a small change that will deliver big savings for the public purse. We will publish further details on how we intend to use those powers in the Bill. It should hopefully go without saying that we are more than willing to engage with hon. Members in the process.
One issue that is guaranteed to provoke lively debate in this place is planning reform, as we have seen today. I was going to list all the hon. Members who have raised planning concerns with me, but I suspect that I would run out of time. I am extremely grateful to all hon. Members who have engaged with the Government and with me on that issue over many months. We have listened intently to their feedback, and that is reflected in the fresh reforms that we have set out in the Bill.
Some may defend the status quo and question whether there is still a case for planning reform amid everything else that is going on, but let us look again at the facts. It currently takes on average seven years for councils to prepare a local plan, and, in some cases, five years before a spade even hits the ground. Response rates to a typical pre-planning consultation are around 3%, and that drops to less than 1% in local plan consultations. I say to hon. Members that we cannot deliver the homes that this country needs without planning reform, and we cannot level up communities without the improvements set out in the Bill. As my hon. Friend the Member for South Norfolk (Mr Bacon) rightly pointed out, we need these homes. I commend him for his excellent report and the proposals he has made to help people to build their own homes.
This Bill will simplify the content of local plans and standardise the process in a much shorter time, with improved local engagement. With more local plans in place, there will be far less speculative development, giving communities transparency and a real voice to influence what is built in their area. Our digital reforms will also move us beyond the days of laminated notices on lamp posts to fully accessible planning applications that people can view on their iPads and smartphones at home.
I am, of course, still continuing to listen to hon. Members. On the issue of local housing need and the targets, I should make it clear that they are not targets. They are there to inform the development of a plan, but in reality we know from listening to colleagues that they have been treated rather stringently. As my right hon. Friend the Secretary of State said in his opening comments, we need a more sensible approach and we are looking at that at pace.
Ben Bradley
My right hon. Friend rightly points out that planning often leads to a heated debate in this Chamber and can be quite a complicated issue. He also knows that the other elements of the Bill such as devolution, locally-led development corporations and all the other factors can have a huge beneficial impact on our areas. Can he assure me that the complicated planning debates and discussions among colleagues will not be allowed to delay the outcome on those other much more straightforward and well-supported parts of the Bill?
Stuart Andrew
My hon. Friend is challenging me to expose my parliamentary expertise, but this is really in the hands of the Committee, so I would ask him to kindly lobby members of the Committee to help me get the Bill through, and I can help him with his aim.
Let me mention a key element that people have been raising, which is the issue of the five-year land supply. If an area has an up-to-date local plan, it will no longer need to demonstrate such a land supply, and that is so that we can stop speculative development.
Chris Grayling
Part of the problem we face—for example, in an area where there are small local district councils in charge of planning—is that, however much Ministers may say that targets are not targets, the local officers see them as such and see their task as being to implement a number that has landed on their desk. It is really important during this process that we break free of that. One of the reasons that councils are taking so long to form their plans is, frankly, that it takes so long for them to work out what on earth to do with the targets. Can my right hon. Friend please bear in mind, as he takes the Bill through, how we send clear messages to councils about what they are and what they are not expected to do?
Stuart Andrew
I thank my right hon. Friend for that intervention. He knows—we have had a number of conversations on this very issue—that these are the things we are looking at. I look forward to bringing them forward as part of the Bill.
I want to touch on the issue of build out. I have heard loud and clear from colleagues, and so has my right hon. Friend the Secretary of State, about the issue of developers seeming to take a long time from approval to build houses. These commencement orders and an agreed rate of delivery will, we hope, help us to get such permissions built out much more quickly.
A number of Members—my right hon. Friend the Member for Chipping Barnet (Theresa Villiers), my hon. Friend the Member for Buckingham (Greg Smith) and others—have raised their concerns about the national development management policies. One of the key aims of the Bill is to reduce the administrative burden on local councils so that they can concentrate on delivering high-quality, locally-led plans. That is why, through this Bill, we hope to shift the onus of delivering on national priorities to central Government through introducing a set of national development management policies. These policies will cover the most important national planning issues facing the sector, including net zero, tackling climate change and making sure that we are also dealing with heritage issues and protections of green belt.
To those who are concerned that these provisions will somehow override local plans, I would say that that is not the intention. The intention is to produce swifter, slimmer plans to remove the need for generic issues that apply universally, which will help us to reduce time-consuming duplication, and to ensure that local plans are more locally focused and relevant to the local communities. I hope that, during the passage of this Bill, we will be able to give more assurance on that.
Andrew Gwynne
The Minister will know that Stockport, which is one of the two councils that covers my constituency, pulled out of the Greater Manchester spatial framework, largely because even though Manchester and Salford were taking a large chunk of its housing allocation, its councillors were against green belt development.
Stockport is a very tightly constrained borough surrounded by green belt. It is now in the process of developing a local plan, but it will have to meet even higher housing targets. Will the Minister guarantee that if Stockport develops a local plan that meets the needs of Stockport but saves and protects the green belt around Stockport, he will support it?
Stuart Andrew
The hon. Member knows that I cannot comment on individual plans. [Interruption.] The hon. Member for Wigan (Lisa Nandy) would be the first to apply for an urgent question asking me to explain why I prejudged a local plan. What I would say, in general terms, is that it is clear that local authorities can argue the constraints that they may have, and his local authority may be planning to do that; I do not know.
Let me move on, because I am conscious of time. I turn to second homes, because, if I did not, my hon. Friend the Member for North Devon (Selaine Saxby), as well as my hon. Friends the Members for St Ives (Derek Thomas) and for Penrith and The Border (Dr Hudson) and others, would be rather angry with me. We have put provisions in the Bill to try to help on that, and I know that she wants us to go further. I have made a commitment to come down to the south-west to hold a series of roundtables and see the issues for myself. We will see what else can be done as we go through the Bill’s passage.
Rachael Maskell
In addition to second homes, we have the challenge of Airbnbs, which of course the Bill does not mention, and yet they are blighting our communities as they take out existing stock and dominate new stock that is being built. Will the Minister look again—it is urgent—to put an amendment into the Bill to address that serious issue?
Stuart Andrew
In fact, I had a meeting just this morning to talk about that very issue. I will report back in due course, if that is okay.
Tim Farron
The Minister is being very generous in giving way. I concur with the hon. Member for York Central (Rachael Maskell), but will he also carefully consider introducing an amendment in Committee that would make second home ownership a separate category of plan and use? That is obviously the clearest way in which we could control second home ownership in communities such as mine and in other parts of the country. Will he at least consider that in the coming weeks?
Stuart Andrew
I am keen to ensure that we get it right. Of course I will consider it, because I want to ensure that we consider all aspects. There could, however, be unintended consequences in other parts of the country. We will want to ensure that we get it right, but I will look at all options. I have made that commitment to numerous colleagues who have raised the issue with me.
I turn to infrastructure. I want to mention in particular my hon. Friend the Member for South West Bedfordshire (Andrew Selous) , who seems to secure a Westminster Hall debate on this issue every other week. I congratulate him on that. Many have asked what the Bill means for our infrastructure: our roads, bridges, schools, GP surgeries and so on. This is where I believe communities stand to really benefit from our reforms. All of us know that, without new infrastructure, when people see new homes going up in their community, too often they fear the worst. They fear that it will result in more congested roads, busier trains and fewer services to go around.
I hope that the proposals that we have set out in the Bill will go a long way towards allaying those fears for good. I am determined to continue working with hon. Members on both sides of the House to do so. That starts with sweeping away the old, opaque section 106 agreements and replacing them with one simple infrastructure levy that is set and raised by local authorities. The new levy will be fairer, simpler and more transparent, and it will be imposed on the final value of a development. It is important to stress that, with the housing market as buoyant as it is, the levy will easily be able to respond to market conditions. Put simply, when prices go up, so will the levy.
Crucially, our Bill also requires councils to prepare an infrastructure delivery strategy, setting out how and when the levy receipts will be used. That means new development will always bring with it the new schools, nurseries and GP surgeries that communities want and need. I have listened, in particular to the debates secured by my hon. Friend the Member for South West Bedfordshire. He knows that I will be meeting my colleagues in the Department of Health and Social Care next week to see what more we can do to ensure that local health services are more involved with the planning process.
We will run a test and learn approach. We are holding a series of roundtables with stakeholders because we want to get it right. It is important to remember that councils can borrow against the levy, so they can bring the infrastructure in as soon as the development is happening.
Sir Geoffrey Clifton-Brown
I am grateful to the Minister for giving way. He will have heard what I said in my speech about the gross added value method of charging for the infrastructure levy, which will act as a disincentive to developers to put added value on environmental and design matters. Will he please discuss that matter with me to see whether we can use a better method by capturing the increase in land value?
Stuart Andrew
I certainly make that commitment. My hon. Friend raised that point with me earlier this afternoon. There are some points there that I want to further explore, so I will ensure I meet him in the next week or so.
Richard Graham
Will the Minister say something in his summing up on the points that I and my hon. Friend the Member for Sevenoaks (Laura Trott) raised, and which we discussed earlier with his colleague the Secretary of State, to reassure us that there is no intention to devolve upwards and that the powers of district councils will remain as they are without being poached by some CCA?
Stuart Andrew
I hope my hon. Friend saw the enthusiastic nodding on the Front Bench, which will give him the reassurance he seeks.
The Levelling-Up and Regeneration Bill represents a major milestone in our journey towards building a stronger, fairer and more united country. As my hon. Friend the Member for Aylesbury (Rob Butler) said, it is for all parts of the country. It confers on local leaders a suite of powers to regenerate our high streets, towns and cities, and gives them unprecedented freedoms to build the homes and infrastructure that communities want and need, following all the BIDEN principles—that is, the Secretary of State’s, not the President of the United States. I also take on board the points raised by my hon. Friend the Member for Wantage (David Johnston) about the environmental standards of homes. I hope to do some more work on that in the coming weeks.
Marsha De Cordova
I thank the Minister for giving way. He has not responded to the point raised by my hon. Friend the Member for Nottingham North (Alex Norris) about publishing an impact assessment. Will he confirm that one will be published, and will he let us know when?
Stuart Andrew
Yes, there will be, and it will come at the second stage of Committee.
Munira Wilson
The Minister talked about building the homes that communities want and need, and he made a commitment to the hon. Member for Gloucester (Richard Graham) about not devolving powers upwards. Last year, central Government pushed through permitted development rights, which enable developers to put whole storeys on top of existing buildings, causing misery for leaseholders even when residents and local planning authorities have opposed them. Will he look at rescinding those powers in the Bill?
Stuart Andrew
No, I will not.
As I said, these new freedoms will help communities to repurpose and redesign old unused sites, and turn them into new vibrant communities. The Bill allows us to become a regeneration nation. It will support the housing and construction sector to play its part in growing our economy, creating well-paid jobs and levelling up. At the same time, the Bill brings our ageing analogue planning system into the digital age, with residents able to share their views at the touch of a smartphone. It places local people at the heart of a smoother, simpler more streamlined planning system using street votes, new design codes and community-led plans.
Most importantly, by enshrining the 12 missions of our levelling-up White Paper into law and offering every part of England a devolution deal by 2030, the Bill fulfils our promise to the British people—a fundamental promise upon which the Government were elected—to take power away from Whitehall and place it directly in the hands of communities, so that they can determine their future and realise their full potential. That is the pledge we made and that is what the Bill delivers. I commend it to the House.
Question put and agreed to.
Bill accordingly read a Second time.