Neighbourhood Planning Bill

Debate between Baroness Cumberlege and Lord Greaves

Committee: 1st sitting (Hansard): House of Lords
Tuesday 31st January 2017 Grand Committee

[Baroness Cumberlege]

My Lords, this is my swansong; this is the last time that your Lordships have to endure me. I have an amendment coupled with this one, but I say to the noble Lord, Lord Beecham, that I so agree with him. It is really important that we do not try—to use an expression appropriate for a planning Bill—to make bricks without straw, because it does not work; we need resourcing.

My amendment is a little different, being about the community infrastructure levy, which it would increase. It is a probing amendment, but if it is intended to continue the direction of travel towards localism and the greater empowerment of parish and town councils, we have not only to find some financial incentives for communities to accept development—although many of them do at the moment—but to encourage planning permissions for the building of houses. That was a significant feature of the coalition Government’s housing and planning reforms and a source of funding to principal councils.

One such initiative was the community infrastructure levy, which came into force in April 2010. It allows principal councils to raise funds from developers undertaking new building projects in their area and to fund a wide range of infrastructure needed as a result of the development. The community infrastructure levy-charging authorities are required to transfer to the parish or town councils 15% of the levy receipts arising from development that takes place in their area, rising to 25% for areas with an adopted neighbourhood plan.

Unfortunately, research suggests that local councils have been passed only 1% of the community levy receipts—just £92,000 despite principal councils collecting more than £9 million between April 2013 and June 2014. That is largely because it is not mandatory for principal councils to have a community infrastructure levy scheme in place and it has the effect of communities accepting development but not benefiting from the share of the levy to invest in local infrastructure needs and priorities.

It is vital that communities which are pro-growth benefit financially from policy incentives such as the community levy so as to invest in locally identified infrastructure needs and other community priorities. The first part of my amendment would address this issue by requiring local planning authorities to introduce the community infrastructure levy within 12 months of the day on which this Act is passed. I am sure my noble friend the Minister has more recent and up-to-date information about how this policy is being delivered, so I look forward to his response.

Paragraph (b) of my amendment is simply intended to increase the incentive for communities to embark on the development of a neighbourhood plan. At present, areas with an adopted neighbourhood plan are entitled to 25% of the levy. However, it does not happen everywhere. I should like to see neighbourhood planning grow, and for more communities to get involved and take a positive approach to future development in their area. To accelerate the uptake, I think a further range of measures is needed to build on efforts to date and, in particular, to ensure that communities benefit financially from development. Increasing the amount of the community infrastructure levy would provide an enhanced incentive. It would also have the added benefit of relieving some of the pressure on the parish precept as the principal means of income to invest in local projects, assets and infrastructure. I am sure my noble friend has other ideas as to how some of this could be achieved. This is a probing amendment and something that I think is worthy of discussion.

[Lord Greaves]

My Lords, I understand the reasons behind this amendment and I sympathise very much with them. However, to force all local authorities to impose a community infrastructure levy—a CIL—is actually not practical. I speak as a member of one authority that does not impose a CIL, and there are quite a lot. There are parts of the country where the viability of development is marginal. Whether it is infrastructure, commercial or housing development, the difficulty is making it stack up financially. In my part of the world, there would be more development allowed, promoted—and welcomed to some extent—if it were financially viable. If it is not financially or only marginally viable, imposing a CIL would simply result in less development. It cannot be imposed everywhere, nor should we look at areas that can impose CILs with green eyes—as we look at a lot of the country with green eyes on financial matters. We have to survive in the environment that we are in. From that point of view, I cannot support the first part of this amendment although, where CILs are imposed, the second part might well be reasonable.