Levelling-up and Regeneration Bill

(Limited Text - Ministerial Extracts only)

Committee stage
Wednesday 15th March 2023 Lords Chamber

I entirely endorse what the noble Baroness, Lady Hayman of Ullock, said about the tension—if not outright conflict—between the different layers of planning and what takes priority over what. I have an amendment later on to say that, if this way forward is adopted, we should make an exception for those neighbourhood plans that are in the process of being signed off in referendums and endorsed by their district councils. If the Government insist that those which are 99% finished have to go back and be ripped up because Clause 92 and the national development management plans take priority, they will completely crush the neighbourhood plan movement and undo all the good work they have done so far.

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

My Lords, before I respond to the amendments in this group, I want to say that the Government recognise that parish councils have an important role in improving the quality of life and well-being of their communities. They have a close understanding of what their communities want and can design and procure the services which best meet those needs. They are vital to levelling up. I just wanted to add that before turning to these amendments covering parishes and neighbourhoods.

On Amendment 159, tabled by the noble Baroness, Lady Scott of Needham Market, the fact that there is no provision in current legislation for a sanction to suspend a councillor was a deliberate policy decision at the time of the Localism Act 2011 to differentiate it from the previous Standards Board regime. That regime was considered to have allowed politically motivated and vexatious complaints. The Government’s position on this remains substantially unchanged, as referenced in our response to the Committee on Standards in Public Life’s review of local government ethical standards.

This clause to suspend a parish councillor found to have breached their code of conduct would introduce inconsistency in the local authority standards regime across the other tiers of local government. On the rare occasions when councillors display poor behaviour, local authorities have options to issue sanctions on parish councillors. Councillors can be barred from committees or representative roles and may be publicly criticised.

I turn to Amendment 160, also tabled by the noble Baroness. This Government are keen to ensure that local communities are well represented in local authorities and that all levels of local government are supported to create thriving local democracies. While I thank her for raising this amendment, it would result in unknown but likely significant costs and pressures on the modest finances of many parish councils. For that reason, the Government resist the amendment.

Turning to Amendment 161, tabled by the noble Baroness, as set out in the levelling-up White Paper the Government are committed to undertaking the neighbourhood governance review as one of the six drivers of levelling up. The review will make it easier for local people and community groups to come together to set local priorities and shape the future of their neighbourhoods. The Government are taking the appropriate steps to deliver the review within the next financial year, 2023-24, and will ensure that a programme with a bold new approach to community empowerment is put in place. The success of this will require the collaboration of all partners in local government and civil society, as well as central government.

Turning to Amendment 162, tabled by the noble Baroness, the Government recognise the important role that town and parish councils play in their communities. Parish councils have the power to raise funds through precept, which they can ask their local billing authority to collect through the council tax system. There are around 10,000 parish councils in England, and I am sure noble Lords will agree that it would be disproportionately bureaucratic for central government to give funding to all of them directly. It is much better for them to raise that funding locally, according to the needs of their local communities. As for bids for certain grants, PCs can always work with other local authorities and their partners in an area for funds, including such funds as the LURB’s.

Amendment 163 is important to government. The intention of the Local Government Act 1894 was to provide a clear separation between parochial church councils and the newly created civil parishes. While it does not allow parish councils directly to contribute to the maintaining or improving of church buildings, other powers, as has been said, such as the Local Government Act 1972, allow parish councils to contribute to the upkeep of such buildings if it is deemed to be in their local communities’ interest. Section 19 of the Local Government (Miscellaneous Provisions) Act 1976 enables parish councils to provide assistance in respect of buildings used for public meetings or for recreational facilities.

We are aware that there are different interpretations of the laws surrounding this issue which have not been tested in the courts. As independent bodies, it is for parishes to decide what works best for them in their local communities and to ensure they act within the relevant legislation, taking legal advice where appropriate. If the noble Baroness will forgive me, I will not go further into this issue at this time because I look forward to debating it much more fully when the amendments in the name of my noble friend Lord Cormack and the right reverend Prelate the Bishop of Bristol are before the Committee. For the time being, however, I note the intention behind the noble Baroness’s amendment.

Turning to Amendment 164, tabled by the noble Baroness, the definition in the Localism Act 2011 of local authorities covers a parish council and enables such a council to do anything an individual might do, apart from that which is prohibited, obviously. The intention of the 2011 Act is to give local authorities confidence in their legal capacity to act for both their communities and in their own financial interests, in addition to providing them with more freedoms to innovate and work with others to run services and manage assets for the benefit of the local communities they serve. Parish councils vary in their ability and capacity to take on the enhanced roles and responsibilities of an authority with the general power of competence.

To make it clear to noble Lords, the general power of competence includes the council clerk having completed a course in local administration and two-thirds of the councillors having been elected. These are not easy things, they but are sensible when it comes to a general power of competence. The 2011 Act therefore makes extension of powers to parish councils conditional.

Regarding the concerns of the noble Baroness, Lady Taylor of Stevenage, about Clause 92, before a neighbourhood plan or development order can be put to a referendum, the local planning authority must be satisfied that it complies with certain legislative tests known as “basic conditions”. The purpose of Clause 92 is to update the existing list of basic conditions to ensure that neighbourhood development plans and orders complement the reforms to the wider development plans framework and meet future environmental assessment requirements.

More broadly, and to make the position clear to the noble Baroness, Lady Hayman of Ullock, and others, the Bill will strengthen neighbourhood planning. In future, decisions on planning applications will be able to depart from plans, including neighbourhood plans, only if there is a strong reason to do so. In addition to neighbourhood plans, as we have heard, communities will also be able to prepare neighbourhood priority statements, making it easier and quicker for them to determine the priorities and preferences for their local areas. These will feed into the local plan process and the local planning authority will also be required to consider them.

Clause 92(1) removes the historic inclusion of paragraph (e) under paragraph 8(2) of Schedule 4B to the Town and Country Planning Act 1990, which stated that a neighbourhood development order must be in general conformity with the strategic policies of the local authority’s development plan. It replaces paragraph (e) with paragraph (ea), which makes it clear that a neighbourhood development order cannot prevent housing development taking place in a location that has been proposed within the local authority’s development plan.

Clause 92(1) also introduces paragraph (fa) under paragraph (f) of paragraph 8(2) of Schedule 4B to the 1990 Act. This requires that neighbourhood development plans and orders comply with the environmental outcomes report framework that the Bill is introducing to replace the EU processes of environmental impact assessment and strategic environmental assessment.

In addition, Clause 92(2) introduces a new basic condition for neighbourhood plans, which sets out that they must not result in the development plan for the area proposing less housing development than would have occurred if the neighbourhood plan were not being made.

[Lord Stunell (LD)]

I thank the noble Baroness for her explanation. It is certainly helpful as far as the first parts of Clause 92 are concerned, but new paragraph (ea) is precisely the point I was raising: it requires a neighbourhood plan not to reduce housing allocation compared to the local plan, which is the current context. Bearing in mind that quite a few neighbourhood plans are being made in areas that do not have local plans, that raises another question, which we will park for the moment. If you put that floor at the level at which neighbourhood plans have to perform—in other words, you want everything to be above average compared to what we have now—does the noble Baroness not see that it undermines the flexibility that is the strength of neighbourhood plans?

[Baroness Scott of Bybrook (Con)]

No, I do not. One of the main issues that this or any Government will face is building houses, and allowing a neighbourhood plan to deliver fewer houses than a local plan is not acceptable.

On Amendment 506, tabled by the noble Baroness, Lady Taylor of Stevenage, the Government recognise the important role that parish councils play in improving the quality of life and well-being of their communities, which are at the heart of the Government’s six drivers of levelling up. The Government believe that the current provisions are adequate in addressing issues faced by the sector. These provisions provide tools and flexibilities to allow town and parish councils in England to adapt to local needs and circumstances. In Scotland and Wales, the devolved Governments also already have the tools to conduct a review of the provisions in this Bill and to make changes in relation to community councils. Noble Lords will agree that it is important for local people and community groups to come together to set local priorities and directions. I hope that the noble Baroness will feel able to withdraw her amendment.