Levelling-up and Regeneration Bill

(Limited Text - Ministerial Extracts only)

Committee stage
Wednesday 22nd March 2023 Lords Chamber

I hope I have given a good summary of what noble Lords have said. It has been a very interesting debate and we retain our concerns about the centralising tendency of this planning section of the Bill. I hope the Minister has heard the strength of feeling in the Committee on these matters and I look forward to hearing her comments.

[Baroness Scott of Bybrook (Con)]

My Lords, this might take a little bit of time. It was quite an in-depth and complicated group of amendments. I want to try and give it as much time as I can. I will go through Hansard, but if I miss anything out, I ask noble Lords to come back to me and I will make sure they get a Written Answer as soon as possible.

I want to start where the noble Baroness, Lady Taylor of Stevenage, started: why are we having a national development management policy in legislation? Why are we having this change? The case is fivefold. First, it will do what a number of noble Lords have said that it will not do—it will do completely the opposite. It will help local authorities produce swifter, slimmer plans by removing the need to set out generic issues of national importance. It will make those plans more locally relevant and easier for communities and other users to digest and to get involved in developing, through consultation and communications with local communities.

It will be easier for applicants to align their proposals with national and local policy requirements and, where they wish, to go beyond them. We expect that this will be particularly valuable for SMEs. It will provide greater assurances that important policy safeguards which apply nationally or to significant parts of England, such as protections for areas at risk of flooding, policy on climate change and policy to protect the green belt, will be upheld in statutory weight and applied quickly across the country, including when any changes are made. It will mean that this framework of common national policies can guide decisions, even if the local plan is significantly out of date and cannot be relied on. For example, where there is no up-to-date local plan, it will ensure that the national protections for things safeguarded solely through the planning policy—local wildlife sites, for example—have clear statutory status equivalent to an up-to-date plan. I hope that gives some context for what I am going to go through in relation to the amendments.

Amendment 183 in the name of the noble Baroness, Lady Taylor of Stevenage, seeks to require local authorities to review and update their development plan at least every five years. I reassure noble Lords that we recognise that if local plans are to be effective, they must be kept up to date. Currently, plans must be reviewed to assess whether they need updating at least once every five years and should then be updated as and when necessary. The Government made it clear in the policy paper published alongside the Bill introduction in May 2022 that we intend to require through regulation that authorities commence an update of their local plan every five years. They do not consider it; they do it. Although I fully understand the spirit of the amendment, these procedural matters have traditionally been addressed via regulations and it is our intention to maintain this approach. Consequently, we cannot support this amendment.

The noble Baroness, Lady Taylor of Stevenage, mentioned the right to be heard, or not heard, in an inquiry. No right of appearance at an examination applies only to the strategic-level spatial development strategies. This is already a well-established practice and the only spatial development strategy that exists at the moment is the London plan. That one is very specific.

I turn to my noble friend Lord Young of Cookham’s Amendments 184A and 187B, which aim to ensure that decisions on planning applications are taken in line with an up-to-date plan, which is defined as one less than five years old. As previously mentioned, we know that, for local plans to be effective, they must be kept up to date. Currently, plans must be reviewed to assess whether they need updating every five years, and they should then be updated as necessary. As I said, we will replace the current review requirement, which is a source of confusion and argument, with a new, clearer requirement in regulation for authorities to commence an update of their local plan every five years. However, it is important that we do not create in law a cliff edge that forces important aspects of plans to be out of date for decision-making purposes just because they are more than five years old. This would, for example, very considerably weaken green-belt protections.

I make it clear to noble Lords that we are retaining the current provision that gives precedence to the most up-to-date development plan policy, should conflicts occur. For example, where the local plan is out of date but a more recently approved neighbourhood plan is in place, the latter would take precedence, which I think is good. I fully understand the intention behind these amendments—they would certainly focus authorities’ minds on plan-making—but I believe that our legislation and policy provisions for keeping plans up to date strike a better balance. As a result, we do not feel we can support these amendments.

My noble friend Lord Young of Cookham also asked what happens if a local authority does not produce a local plan. The Bill retains and updates local plan intervention powers, which have been an important safety net to enable the Secretary of State to take action in certain circumstances in order to ensure that communities can benefit from a plan-led approach to growth.

My noble friends Lord Lansley and Lord Young of Cookham asked about local plans and whether government reforms would close what was referred to as a “loophole”. We intend to introduce this requirement for local authorities to commence the update of their local plans at least every five years, which will close that loophole in the future.

The question from the noble Baroness, Lady Pinnock, on the important issue of the five-year housing supply, probably relates to this group. To incentivise plan production further and ensure that newly produced plans are not undermined, we have made clear our intention to remove the requirements for local authorities to maintain a rolling five-year supply of deliverable land for housing where their plan is up to date—that is, adopted within the past five years. So, carrot and stick.

I move now to noble friend Lord Lansley’s Amendment 185, which tests the Government’s rationale for inserting “strongly” into the new decision-making test for planning applications. This is an important reform that seeks to provide greater certainty in decision-making, so I welcome the opportunity to explain our logic behind the change. Clause 86 reforms decision-making to strengthen the role of the development plan in practice. This includes strategic plans such as the London plan, as well as local plans and neighbourhood plans. Planning application decisions would be able to depart from the development plan and any national development management policies only where

“material considerations strongly indicate otherwise”.

It would no longer be enough for those other considerations merely to “indicate” otherwise.

Simply put, this will support the plan-led system by making it harder for planning decisions not to accord with the development plan and the national development management policies. The bar for developers will be higher if they wish to argue at appeal that their proposals should still gain planning permission even though they do not accord with the development plan and the relevant national development management policies. As a result, the changes are likely to reduce the number of planning appeals that local authorities face and the number of unanticipated developments that communities face on their doorsteps.

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[Baroness Taylor of Stevenage (Lab)]

I am sorry; I do not want to try the Minister’s patience, but we are not understanding how the various things sit together—the NPPF and the NDMPs. It is not quite clear to me how that will work, and it will make life very difficult for planning inspectors. We have talked before about a meeting to explain some of this in more detail, and that would be extremely helpful to those of us who are considering the Bill closely. If we could get a better understanding of that, it would be very helpful.

[Baroness Scott of Bybrook (Con)]

I am really happy to do that, because it is complex; there are a lot of acronyms and what have you. I do not think that this is the time of night to be discussing detail, so I am happy to put together a meeting as soon as possible, and we will go through it in detail.

I turn now to Amendment 189, also in the name of the noble Baroness, Lady Hayman of Ullock, which would allow Parliament to make national development management policies itself. Like national planning policy made at present through the National Planning Policy Framework, national development management policies will serve a broad purpose and will sit alongside policies in locally produced plans as a starting point in considering the suitability of development proposals. They will carry forward the role that successive Governments have played since the 1940s in setting high-level national policy that influences plans and decisions. This is a key function of government, which would be undermined by the creation of a dual-power system, as this amendment seeks to do. An effective planning system cannot be achieved if Ministers and Parliament could create contradictory policies by both having the vires to do so. Such a role for Parliament in planning has not been previously proposed, and I am afraid that it is not one that we can support.

Amendment 190, also in the name of the noble Baroness, would impose a legislative restriction on setting fixed standards through national development management policies, while retaining an ability for those policies to set floors which could be exceeded. Unlike building regulations, national planning policies are not used to set specific standards in most cases. Nevertheless, I understand the concern behind the amendment: that national development could, potentially, be used to constrain what locally produced plans are able to do.

The question about how national development management policies are to be used is one that we have consulted on recently. Through that, we were clear that our intention is that they will address planning considerations that apply regularly in decision-making across the country, such as general policies for conserving heritage assets and preventing inappropriate development, including on belts and in areas of high flood risk—the types of policy already contained in the National Planning Policy Framework. Our consultation also said that we were minded to retain the scope for optional technical standards to be set locally through plans so that local planning authorities can go above minimum building standards. The responses to the consultation are being assessed at present, as noble Lords know.

More broadly, it is important that we do not impose restrictions on the national development management policies, which could prevent sensible use of them. It may be appropriate to set absolute standards in one or two instances for reasons of consistency or to prevent harm—for example, in relation to pollution limits. This is best addressed through policy on a case-by-case basis rather than blanket restrictions in legislation. For these reasons, we do not think it necessary or appropriate to impose specific requirements or limitations of the sort that this amendment would entail, so I hope the noble Baroness will understand that we are not able to support it.

I move to Amendment 191, which seeks to probe the direction and modification powers of the Secretary of State to revoke and modify national development management policies. The power to revoke and modify the policies is bound by the same requirements as those to make them, including those on consultation. We recognise that, once the first suite of those policies is published, there must also be a clear legal framework for modifying and revoking them. Like the National Planning Policy Framework, national development management policies will need to evolve over time, reflecting new government priorities and changing economic, social and environmental challenges, as well as trends in planning practice. That is why the Bill gives the Secretary of State the power to revoke and modify these policies; without this power, they would become too rigid and potentially ineffective.

However, I would like to reassure noble Lords that the power to revoke and modify the policies will not be used lightly. It is not a mechanism to remove long-standing national planning policies, such as protecting the green belt or tackling flood risk. We want to see consultation, engagement and debate across the sector about potential changes to the policies, in the same way as happens now with the National Planning Policy Framework. Given that any revocation and modification must follow the same procedural requirements as the creation of the new national development management policies, we feel that this amendment is unnecessary and, therefore, not one we can support.

I turn to Amendments 191A and 191B in the names of the noble Baronesses, Lady Thornhill, Lady Jones of Moulsecoomb and Lady Taylor of Stevenage, and the noble Lord, Lord Shipley, which seek to change the requirements for making national development management policies so that they more clearly mirror those for national policy statements. National policy statements are used to set out the policy for nationally significant infrastructure projects—planning decisions that are made by Ministers. National development management policies will serve a broader purpose than this and will sit alongside policies in locally produced plans when local decision-makers consider the suitability of development proposals. As previously mentioned, they will carry forward the role that successive Governments have played since the 1940s in setting high-level national policy that influences plans and decisions.

Clause 87 already imposes an obligation on the Secretary of State to ensure that consultation and participation take place as appropriate, and our recent consultation on the future of the NPPF and the NDMP confirms that public consultation will be carried out before they are designated.

The requirements in this Bill set out that the Secretary of State must explicitly consider public consultation when determining what consultation is appropriate. This is similar to the approach for national policy statements, which also require consultation as the Secretary of State thinks appropriate, although they do not include explicit consideration of “public” consultation as in the existing clause.

I acknowledge that the existing clause uses the phrase “if any” in relation to consultation. It includes this as there may be rare occasions where it would be appropriate not to consult on a draft national development management policy, such as if urgent changes are needed in the national interest. For example, during the pandemic, the Secretary of State was able to issue an urgent Written Ministerial Statement in July 2020 to temporarily change national planning policy so that theatres, concert halls and live music performance venues could be given a degree of protection where they were temporarily vacant due to Covid-19 business disruption.

The changes that we discussed earlier to the decision-making test in Clause 86, which strengthen the weight given to the development plan over material considerations, mean that such a policy would have had significantly less weight in planning decisions today, unless it was made a national development management policy.

I hope I have reassured noble Lords that we have developed a proportionate framework for creating national development management policies, and explained why we have taken a different approach from that for national policy statements, meaning that we do not feel able to accept this amendment.

Amendment 196, in the name of the noble Baroness, Lady Hayman of Ullock, would require the Secretary of State to publish a strategy for public consultation and parliamentary scrutiny of national development management policies within 120 days of the Bill’s passage. As I have set out, the Bill makes appropriate provision for consultation, which is reinforced by the clear commitment in our recent consultation that we will consult on these policies. Against this backdrop, we believe that a legal obligation to publish a strategy for consultation is unnecessary, and so this is an amendment that we feel unable to support.

I turn next to Amendment 194, also in the name of the noble Baroness, Lady Hayman of Ullock, which would require the Department for Levelling Up, Housing and Communities to publish annual reports reflecting the cost of producing and maintaining national development management policies and any support given to local planning authorities. I reassure the noble Baroness that national development management policies will not create a new financial burden for local planning authorities or central government. The cost of producing national development management policies as a function of the Secretary of State will fall to the Department for Levelling Up, Housing and Communities. We expect that the cost of preparing and maintaining national development management policies—in Civil Service resource and specialist expertise—will be similar to that for producing and maintaining the National Planning Policy Framework. We will also ensure that the Planning Advisory Service, which my department funds, provides local planning authorities with training and support to help manage the practical transition to using national development management policies when they are making decisions.

Against these upfront costs, local planning authorities will financially benefit from national development management policies, as they will not need to develop or justify these policies themselves when their plans are examined by the Planning Inspectorate. As our impact assessment makes clear, national development management policies will provide greater certainty to developers and communities, potentially providing significant savings for businesses. Our impact assessment estimates that the benefits of increasing certainty in the planning system due to the measures in the Bill will be just over £2.8 billion over a 10-year appraisal period. For the reasons that I have set out, while I thank the noble Baroness for her amendment, it is not one that I am able to support.

Amendment 216, in the name of the noble Baroness, Lady Taylor of Stevenage, and Amendment 220, in the name of the noble Baroness, Lady Hayman of Ullock, would remove the requirement for local plans to be consistent with national development management policies and prevent such a requirement in regulations. These amendments would fundamentally diminish the ability of our reforms to make local plans easier to prepare and to create more certainty for applicants, communities and local planning authorities. Through the Bill we are strengthening the role of the development plan in decision-making by changing Section 38 of the Planning and Compulsory Purchase Act 2004 so that planning applications must be decided in accordance with the development plan and the national development management policies unless material considerations strongly indicate otherwise.

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[Lord Lansley (Con)]

I hope my noble friend will forgive me for interrupting. I understand the point she is making about Amendment 216, and why she is resisting removing the idea that local plans must not be inconsistent with national development management policies, but it also says, “or (in substance) repeat”.

I am trying to understand. Let us take the chapter in the NPPF on green belt. The first part is about plan-making for the green belt, and the second part is about proposals coming forward within green belt land and the criteria that should be applied as to whether or not an application would be accepted. On that latter part, is my noble friend saying that the local plan cannot repeat that—that it must therefore refer to it but not repeat it? Is that the point she is making?

[Baroness Scott of Bybrook (Con)]

The whole idea of moving national policies away from local policies is that we do not have to repeat them. I will reflect on what my noble friend says about how it is referred if an area has a particular issue with something such as the green belt and come back to him, because I think he has a point.

Amendment 221, in the name of the noble Lord, Lord Best, seeks to require older people’s housing needs assessments to be included in the evidence for local plans and would require local authorities to consider the needs for older people’s housing when preparing such plans. While I entirely understand the sentiment behind this amendment, the proposed approach is not needed. National policy already sets strong expectations, and we recently consulted on strengthening this further. The existing National Planning Policy Framework makes clear that the size, type and tenure of housing needed for different groups in the community, including older people, should be assessed and reflected in planning policies. In 2019, we also published guidance to help local authorities implement the policies that can deliver on this expectation.

I also make it clear to noble Lords that, to further improve the diversity of housing options available to older people and to boost the supply of specialist elderly accommodation, we have proposed to strengthen the existing policy by adding a specific expectation that, when ensuring the needs of older people are met, particular regard is given to retirement housing, housing with care and care homes. We know these are important types of housing that can help support our ageing population.

Furthermore, there is already a provision in the Bill that sets out that the Secretary of State must issue guidance for local planning authorities on how their local plan and any supplementary plans, taken as a whole, should address housing needs that result from old age or disability. These are strong legislative and policy safeguards which should ensure that the needs of older people are taken fully into account. For that reason, I hope the noble Lord, Lord Best, will understand why we do not support this amendment.

I note that there is a question from my noble friend Lord Young and the noble Lord, Lord Best, on the task force. I will go back to the department and ask for an update. I can assure noble Lords that I will give them one in the next couple of days—certainly before Recess or Report.

I hope I have said enough to enable the noble Baroness, Lady Taylor of Stevenage, to withdraw her Amendment 183 and for the other amendments in this group not to be moved when reached.