Levelling-up and Regeneration Bill

(Limited Text - Ministerial Extracts only)

Report stage
Wednesday 6th September 2023 Lords Chamber

Can combined county authorities politely decline that invitation if it is extended? I can imagine a number of reasons why they might do that. Chief of those is resource constraints: many combined county authorities, or components of them, are on the brink of bankruptcy and they might not wish to take on an additional challenging function for which they have no capacity or capability. The authorities into whose territory they would trespass are also often in a parlous situation as far as resources go. Not everyone wants to take over Wilko and it is quite understandable that this “may invite” provision will be regarded askance by not just the district councils but the combined county authorities. I would like to understand more clearly what the Minister intends the process to be. If she says, “They could decline or politely refuse”, then what is the alternative plan? This is a new power that has unforeseen consequences, most of which seem to point in a damaging direction. More uncertainty about this “may invite” provision seems to compound that. I look forward to hearing what the Minister says.

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

My Lords, Amendments 193 and 194 in the name of my noble friend, Lord Lansley, seek to require plan-making to include the strategic priorities of the authority and to ensure that a local plan can include policies relating to achieving sustainable economic growth. The Government want the planning system to be truly plan-led, to give communities more certainty.

The Bill provides clear requirements for what future local plans must include. This replaces the complex existing framework, which includes the requirement at Section 19(1B) of the Planning and Compulsory Purchase Act 2004 for authorities to

“identify the strategic priorities for the development and use of land”

in their areas. There is nothing in the Bill to stop authorities including strategic priorities and policies in future local plans. Indeed, our recently published consultation on implementing our plan-making reforms proposes that plans will need to contain a locally distinct vision that will anchor them, provide strategic direction for the underpinning policies and set out measurable outcomes for the plan period. Likewise, on the specific subject of sustainable economic growth, we are retaining the current legal requirement in Section 39 of the Planning and Compulsory Purchase Act 2004 for authorities to prepare plans with the objective of contributing to the achievement of sustainable development.

My noble friend Lord Lansley asked why the distinction between strategic and non-strategic was removed and whether the NPPF will be redrafted to reflect this. That distinction derives from previous legislation on plans, which the Bill will replace with clearer requirements to identify the scale and nature of development needed in an area. The NPPF will be updated to reflect the legislation, subject to the Bill gaining Royal Assent. In light of this, I hope that my noble friend will feel able not to press his amendment.

I turn now to Amendment 193A in the name of the noble Lord, Lord Best. This amendment seeks to require local plans to plan for enough social-rented housing to eliminate homelessness in the area. National planning policy is clear that local plans should, as a minimum, provide for objectively assessed needs for housing. In doing so, local authorities should assess the size, type and tenure of housing needed for different groups in the community, including those who require affordable housing. This should then be reflected in their planning policies. The Government are committed to delivering more homes for social rent, with a large number of new homes from the £11.5 billion affordable homes programme to be for social rent. We are also carefully considering the consultation responses to our proposal to amend national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes.

Tackling homelessness and rough sleeping is a key priority for this Government. That is why we will be spending more than £2 billion on homelessness and rough sleeping over the next three years. The Homelessness Reduction Act, which the noble Lord, Lord Best, was so influential in bringing forward, is the most ambitious reform to homelessness legislation in decades. Since it came into force in 2018, more than 640,000 households have been prevented from becoming homeless or supported into settled accommodation. We know that the causes of homelessness are complex and are driven by a range of factors, both personal and structural, and I fear that creating a link between local plans and homelessness reduction would add more complexity.

The noble Lord, Lord Best, asked why we cannot recognise housing need in local plans, particularly homelessness and affordable housing. The Bill already requires that plans set out policies for the amount, type and location of the development needed. I feel that it is a local issue, and the best way to ensure that we get the amount of particular housing needed in a particular area is for it to be put into local plans by local councils talking to local people. The noble Baroness, Lady Thornhill, asked how local needs are going to be assessed in the future and how they will be defined. This is another matter that will be considered when we update national policy. We need flexibility to address changes in circumstances, which is why policy is the best approach to this, rather than looking for definitions in legislation.

I move now to Amendment 199 in the name of the noble Lord, Lord Berkeley, and my noble friend Lord Young of Cookham. I thank the noble Lords for their amendment on this important matter. We recognise the importance of walking and cycling, and the role the planning system plays in enabling the infrastructure which supports active forms of travel. National planning policies must be considered by local authorities when preparing a development plan and are a material consideration in planning decisions. The Bill does not alter this principle and would strengthen the importance of those national policies which relate to decision-making. The existing National Planning Policy Framework is clear that transport issues, including opportunities to promote walking and cycling, should be considered from the earliest stages of plan-making and when considering development proposals. Proposals in walking and cycling plans are also capable of being material considerations in dealing with planning applications, whether or not they are embedded in local plans. Indeed, the decision-maker must take all material considerations into account, so there is no need to make additional provision in law as this amendment proposes.

The Government are delivering updates to the Manual for Streets guidance to encourage a more holistic approach to street design which assigns higher priorities to the needs of pedestrians, cyclists and public transport. We are also working closely with colleagues in the Department for Transport to ensure local transport plans are better aligned with the wider development plan.

The noble Lord, Lord Young, asked if the NPPF policy requiring a high bar to refuse proposals on transport grounds will be changed. As he knows, we have committed to a full review of the NPPF, part of which will need to look at all the aspects of policy, including how best to provide for walking and cycling.

I move now to government Amendments 196C, 196D, 201B, 201C and 201D. These are consequential on Clause 91 and Schedule 7 to the Bill which, when commenced, will introduce a new development plans system. They amend and supplement consequential amendments to Schedule A1 to the Planning and Compulsory Purchase Act 2004 made by Schedule 4 to the Bill relating to the creation of combined county authorities. The Schedule 4 amendments will mean that combined county authorities will be in the same position as the Mayor of London, county councils and combined authorities are currently in relation to the ability of the Secretary of State to invite those bodies to take over plan-making where a constituent planning authority is failing in its plan-making activities. The noble Lord, Lord Stunell, asked what will happen if they do not want to do so. I do not think we can force them, but there are a couple of things we can do if local authorities are not producing local plans in a timely manner or at all. For example, the Secretary of State will be a commissioner who could take over the production of the plans, or the local secretary of state could take that into his own hands. We are not going to force them, but it will be an offer they can make in order that their county combined authorities have the correct plans in place to shape their communities in the correct way.

In light of the new plan-making system being introduced by the Bill, a number of consequential amendments to Schedule A1 to the 2004 Act are already provided for by Schedule 8 to the Bill. Broadly speaking, they will update Schedule A1 to ensure that the provisions can operate within the new plan-making system. As such, in light of these wider reforms, these further amendments are needed to ensure that the new provisions which Schedule 4 to the Bill will insert into Schedule A1 are updated accordingly when the new plan-making system comes into effect. I hope noble Lords will support these minor and consequential changes.

Finally, the Bill ensures that neighbourhood plans will continue to play an important role in the planning system and encourage more people to participate in neighbourhood planning. For example, it will mean that future decisions on planning applications will be able to depart from plans, including neighbourhood plans, only if there are strong reasons to do so. While the Bill retains the existing framework of powers for neighbourhood planning, it will also provide more clarity on the scope of neighbourhood plans alongside other types of development plan. It amends the list of basic conditions set out in Schedule 4B to the Town and Country Planning Act 1990 which new neighbourhood development plans and orders must meet before they can be brought into force.

Amendment 197 would make corresponding changes to the basic conditions set out in paragraph 11(2) of Schedule A2 to the Planning and Compulsory Purchase Act 2004 so that the same conditions apply when an existing neighbourhood development plan is being modified. These changes are necessary to ensure that these neighbourhood plans receive consistent treatment.

[Lord Lansley (Con)]

I am most grateful to all noble Lords who participated in this rather important debate. From my point of view, in considering whether strategic policies should be distinguished from non-strategic policies in plan-making, I asked my noble friend a question and I got a reply. It is an interesting reply because by simply asserting that the local plan must include, in effect, all policies, my noble friend is saying that that is clearer than the present structure which distinguishes between strategic policies and non-strategic policies.

Noble Lords may say that we are all dancing on the head of a pin—I do not think so. The noble Baroness, Lady Taylor of Stevenage, made an extremely good point: identifying strategic priorities in a local planning authority’s local plan is a key component of creating spatial development strategies in a broader area. That would be extremely helpful.

None the less, what my noble friend has told me is going to be an interesting conclusion for people to draw. We are now told that the consultation draft of the National Planning Policy Framework, which was published on 22 December following the passage of this Bill in the other place, did not take account of what is in the Bill. This is rather interesting. It means that if we change the Bill, we can change the NPPF—which, from the point of view of my noble friend’s and other amendments, is a very helpful thought that we might take up. I do not think that the revisions that will follow to the NPPF will be as wide ranging as my noble friend implied, because that would mean that they would do away with much of what is written presently into the chapter on plan-making.

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12:04

Division 1

Ayes: 173

Noes: 156

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Moved by

[Baroness Scott of Bybrook]

194A: Schedule 7, page 347, line 38, at end insert—
“(6A) The local plan must take account of any local nature recovery strategy that relates to all or part of the local planning authority’s area, including in particular—(a) the areas identified in the strategy as areas which—(i) are, or could become, of particular importance for biodiversity, or(ii) are areas where the recovery or enhancement of biodiversity could make a particular contribution to other environmental benefits,(b) the priorities set out in the strategy for recovering or enhancing biodiversity, and(c) the proposals set out in the strategy as to potential measures relating to those priorities.”Member’s explanatory statement
This amendment requires a local plan to take account of any local nature recovery strategy that relates to any part of the area of the authority preparing the plan.

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Then there is the issue that we have forgotten about: currently, more than 1 million homes with planning consent are not being built. In my small ward, planning consent for nearly 800 homes has been there for two or three years. The homes are not being built because it does not suit the developers to do so. Unless we also overcome the issue that there is too much power in the hands of developers, we miss the whole point about top-down targets. I repeat: top-down targets do not build homes. We need to talk to communities, discussing how inward investment and housebuilding will help them thrive and help their high streets come to life. That is why, if the noble Lord, Lord Young, is moved to press his amendment to a vote, we will be unable to support him. We will abstain. We agree that more houses are needed, which is where I started. There is complete agreement on that, but we disagree on how you achieve it.

[Baroness Scott of Bybrook (Con)]

My Lords, I am grateful for the contributions made on this important issue. I reiterate at the outset that delivering more homes remains a priority for this Government, as the Prime Minister and the Secretary of State made clear in the long-term plan for housing, which they set out at the end of July.

Local plans play a crucial role in enabling new homes to come forward, which is why the National Planning Policy Framework is clear that all plans should seek to meet the development needs of their area. Nothing we consulted on at the end of last year changes that fundamental expectation. There will, however, be limits on what some plans can achieve, which is where I must take issue with Amendment 195, in the names of my noble friends Lord Lansley and Lord Young, the noble Lord, Lord Best, and the noble Baroness, Lady Hayman of Ullock.

Amendment 195 would place local plans under a legal obligation to meet or exceed the number of homes generated by the standard method prescribed by the Government. Amendment 200, in the name of the noble Baroness, Lady Hayman of Ullock, is designed to have a similar effect. While this is well intentioned, it would be unworkable in practice. Ever since the National Planning Policy Framework was introduced in 2012, it has been clear that plans should meet as much of their identified housing need as possible, but there are legitimate reasons why meeting or exceeding that need may not always be appropriate. For example, an authority with very extensive areas of green belt or which is largely an area of outstanding natural beauty or a national park may not be able to meet its identified housing need in full if we are also to maintain these important national protections. In these cases, there will be a need to consider whether any unmet need can be met elsewhere, which is something that our policies also make clear.

It is for this reason that our standard method for calculating housing need—or, indeed, any alternative method which may be appropriate in certain cases—can be only a starting point for plan-making, not the end. Mandating in law that the standard method figures must be met or exceeded in all cases would do significant harm to some of our most important protected areas and could conflict with other safeguards, such as the need to avoid building in areas of high flood risk.

It is also right that local communities should be able to respond to local circumstances. The changes to national policy which were consulted upon at the end of last year are designed to support local authorities to set local housing requirements that respond to demographic and affordability pressures while being realistic, given local constraints. However, let me make it clear: the Secretary of State’s Written Ministerial Statement, published on 6 December 2022, confirmed that the standard method for assessing local housing need will be retained. To get enough homes built in the places where people and communities need them, a crucial first step is to plan for the right number of homes. That is why we remain committed to our ambition of delivering 300,000 homes per year and to retaining a clear starting point for calculating local housing needs, but we know that the best way to get more homes is by having up-to-date local plans in place.

Amendment 196, in the name of my noble friends Lord Lansley and Lord Young, takes a different approach, obliging local planning authorities to have regard to any standard method and any national housing targets when preparing their local plans. I will put this more bluntly still: there is no question that we are about to let local authorities off the hook in providing the homes that their communities need. They need to have a plan, it should be up to date, it needs to do all that is reasonable in meeting the needs of the local area and, in response to the question asked by the noble Baroness, Lady Pinnock, it needs to look at different types of housing. They need to know how much housing is required for older people, younger people, families and disabled people. That is what their plan should have. We have discussed this with local authorities and will be working with them to ensure that that will happen.

A need to have regard to the standard method is already built into the Bill, as Schedule 7 requires local planning authorities when preparing their local plan to have regard to

“national policies and advice contained in guidance issued by the Secretary of State”.

That includes the National Planning Policy Framework, its housing policies, including those relating to the use of the standard method, and associated guidance. Adding a specific requirement to have regard to the standard method would have no additional effect as planning authorities will already take it into account and draft plans will be examined against it.

A legal obligation to take any national housing target into account, which this amendment would also create, poses a different challenge as it is unclear how plans at the level of an individual local authority could do so. This could create unintended consequences by creating an avenue for challenges to emerging plans on the basis that they have not done enough to reflect a national target and so could slow down the very plans that we need to see in place.

I hope that, taking these considerations into account, my noble friend Lord Lansley is persuaded not to move his amendment.

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13:19

Division 2

Ayes: 129

Noes: 164

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Moved by

[Baroness Scott of Bybrook]

196A: Schedule 7, page 350, line 20, at end insert—
“(5A) The minerals and waste plan must take account of any local nature recovery strategy that relates to all or part of the relevant area, including in particular—(a) the areas identified in the strategy as areas which—(i) are, or could become, of particular importance for biodiversity, or(ii) are areas where the recovery or enhancement of biodiversity could make a particular contribution to other environmental benefits,(b) the priorities set out in the strategy for recovering or enhancing biodiversity, and(c) the proposals set out in the strategy as to potential measures relating to those priorities.”Member's explanatory statement
This amendment requires a minerals and waste plan to take account of any local nature recovery strategy that relates to any part of the relevant area.

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Moved by

[Baroness Scott of Bybrook]

196F: Clause 92, page 98, line 35, at end insert “, and
(b) take account of any local nature recovery strategy, under section 104 of the Environment Act 2021, that relates to all or part of the neighbourhood area, including in particular—(i) the areas identified in the strategy as areas which—(A) are, or could become, of particular importance for biodiversity, or(B) are areas where the recovery or enhancement of biodiversity could make a particular contribution to other environmental benefits,(ii) the priorities set out in the strategy for recovering or enhancing biodiversity, and(iii) the proposals set out in the strategy as to potential measures relating to those priorities.”Member's explanatory statement
This amendment requires neighbourhood development plans to take account, so far as appropriate, of any local nature recovery strategy that relates to all or part of the neighbourhood area to which the plan relates.

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Moved by

[Baroness Scott of Bybrook]

197: Clause 93, page 99, line 33, at end insert—
“(3) In paragraph 11(2) of Schedule A2 to PCPA 2004 (modification of neighbourhood development plans: basic conditions)—(a) for paragraph (c) substitute—“(ca) the making of the plan would not result in the development plan for the area of the authority proposing that less housing is provided by means of development taking place in that area than if the draft plan were not to be made,”; (b) after paragraph (d) (but before the “and” at the end of that paragraph) insert—“(da) any requirements imposed in relation to the plan by or under Part 6 of the Levelling-up and Regeneration Act 2023 (environmental outcomes reports) have been complied with,”Member's explanatory statement
This amendment updates the basic conditions which must be met for a modification of a neighbourhood development plan, so that they correspond to those that will apply for making a neighbourhood development plan once the amendments already included in Clause 93 are made.

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13:32

Division 3

Ayes: 176

Noes: 178