Residential Leasehold for Flats

Baroness Taylor of Stevenage Excerpts

Thursday 30th November 2023 Lords Chamber

[Lord Kennedy of Southwark]

To ask His Majesty’s Government what plans they have to abolish residential leasehold for flats.

[Baroness Taylor of Stevenage (Lab)]

My Lords, on behalf of my noble friend Lord Kennedy and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.

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

My Lords, I declare my interest as a leaseholder.

The Government are extending the benefits of freehold ownership to more home owners. Reforms in the Leasehold and Freehold Reform Bill will help leaseholders to buy their freeholds and will end the sale of new leasehold houses so that, other than in exceptional circumstances, all new houses will be freehold from the outset. For flats, the Government remain committed to reinvigorating commonhold to give developers and home owners a viable alternative to leasehold should they choose it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the Minister for her Answer. Of course, we welcome the reform of leasehold, but with 5 million leasehold properties in England, 70% of which are flats, there is disappointment that they are not included in the Bill. Also, it does not appear that the Bill bans the sale of leasehold houses, either. The Times is reporting that the Minister’s department did not have time to include the leasehold ban before the Bill was introduced this week. Can she please clarify whether it is the Government’s clear intention to ban leasehold? If so, when will we see the relevant clauses?

[Baroness Penn (Con)]

My Lords, I can reassure noble Lords that it is the Government’s intention to bring forward clauses to ban the sale of new leasehold houses within this Bill. We intend to bring forward those clauses during the Commons stages. When it comes to flats, on the other hand, reform is more complicated. They have shared fabric and infrastructure and therefore require some form of arrangement to facilitate management. This has traditionally been facilitated by a lease. Therefore, banning leasehold flats is inherently more complicated. We will be taking forward, at a later date, reforms to the commonhold system to allow that to replace the leasehold system.

General Elections: Party-political Spending

Baroness Taylor of Stevenage Excerpts

Wednesday 29th November 2023 Lords Chamber

[Baroness Penn (Con)]

My noble friend is absolutely right that the procedure for uprating spending limits has to be done through multiple statutory instruments because different procedures are attached to different limits for different elections. I know that he has been a great advocate for simplifying and consolidating electoral law. I am sure that he will continue to advocate that, and I very much look forward to engaging with him on it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the Government’s rejection of amendments to the National Security Act means that foreign donations can still be made to political parties here in the UK. If the department is going to consider reviewing political financing, does the Minister agree that it is time to end this security loophole to prevent covert foreign donations to political parties?

[Baroness Penn (Con)]

My Lords, I believe that as a result of the debates on that Act the Government took forward a commitment to ensure information sharing between the police and other relevant authorities with a view to finding a way to improve that process. The sharing of information could improve the ability of relevant authorities to identify any individuals making or facilitating donations from foreign powers and sanction them. We have a commitment to report back to Parliament next year on that work.

Levelling Up

Baroness Taylor of Stevenage Excerpts

Wednesday 22nd November 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, there are 51 cities, 935 towns and 6,000 villages in the UK, hundreds of which suffer from considerable inequalities. Although we were delighted for 55 of those places that were successful in this announcement made on Monday, they have been singled out, as before, from many other areas that have equal or more need of funding to support their economic growth, and which will be wondering whether the Government’s approach to them is more like giving up than levelling up.

However, we welcome that the Government have recognised that the Hunger Games approach they were taking to funding has failed. We believe this approach resulted in millions of pounds being spent on consultants to put bids together, and that it was actually perpetuating inequalities between areas by further lining the pockets of those who spent the most on their bids. What discussions took place with the sector about the new methodology of the allocations this time, and what account has been taken of the inflationary factors that may have impacted on their viability in the time since the bids were submitted? What does the funding simplification doctrine, quoted by the Minister in the other place on Monday, actually mean? Does this new doctrine apply across government, or just to DLUHC? If the latter, how has the sector been engaged in its creation? How quickly does the Minister expect that the pilots taking place in relation to this will be evaluated?

Compared with the devastating cuts that local authorities have suffered, these grants to just 55 local authorities feel to the rest of the sector like crumbs from the table. With authorities facing the burden of £1.6 billion of increased housing and homelessness spend and £1.125 billion just for special educational needs, and with £15 billion of cuts from their funding already and the LGA estimating that there will be a £3.5 billion shortfall this year—that may have changed slightly today, but I have not had a chance to look yet—surely, as we asked during our discussions on the now Levelling-up and Regeneration Act, it is time for a radical overhaul of local government funding.

Can the Minister comment on the National Audit Office’s report last week, which found, as did the Public Accounts Committee, that no impact assessment had been carried out on levelling-up funding and that just 7% of the first two rounds had been spent so far, with 89% still held in Whitehall? Why has DLUHC not been able to agree the necessary funding arrangements with local authorities? Can we be assured that this process will be simplified so that the money gets to where it needs to go and projects are not held up by departmental delays? What will happen next for the hundreds of projects that have been submitted and not yet funded? We believe that this is the last round of this funding.

I am sure that my noble friend Lady Ritchie will come in on this, but why have councils and people in Northern Ireland been left out of this process? Whatever is happening in Stormont, councils will want their communities held in at least an equal process with the rest of the UK.

The projects funded through this round of levelling-up funding will have been thought through, fought for and, I am sure, welcomed by the successful authorities. However, in the context of cuts to local government funding of 60p in the pound between 2010 and 2020 and a fall in real-term spending power of 27% up to this year, they are a drop in the ocean compared with assessed need. Councillors and their communities watch as their high streets decline and their budgets are torn away from universal services that touch everyone, everywhere, all the time, to the specialist demand-led services that are there only for those with the most complex needs. Our residents are still reeling from the cost of living crisis. Surely it is time for a radical devolution of powers and resources and the flexibility to take the decisions that they know will be in the best interest of their areas. Surely it is time for Labour’s plan, which will genuinely enable that and truly let people take back control.

[Lord Stunell (LD)]

My Lords, this is a sad and disappointing Statement. It is another signal that levelling up, which was the flagship policy of the last Prime Minister but one, is on its dying breath. The Statement was delivered by a junior Minister in the other place. It rehashes announcements that have already been made. It glosses over failures of process and delivery, and it trumpets success when it is in full retreat. It starts with a boast about the £13 billion allocated to the levelling-up task, which is the same £13 billion that had already been announced five times before. But it overlooks what the National Audit Office said in its report published this week: much of the money will never be spent because of the overweening departmental bureaucracy and long ministerial delays in signing off projects with sponsors.

In fairness, the Statement does contain a sort of “sorry, not sorry” section about changing the process in the future, establishing a long-overdue but non-specific “funding simplification doctrine”, of which the noble Baroness just spoke. I am sure it will be a belter when it comes, but the benefit of the new doctrine will be lost by what is perhaps the most gobsmacking piece of double-speak in the Statement. Apparently rounds 1 and 2 have gone so well that, after learning from their successes, round 3 has been cancelled. Usually, back in the real world, if a project goes really well in its first two stages, everyone is eager to get on and do the third stage—but not this time. Instead, the approval threshold for projects is to be lowered and schemes previously rejected in rounds 1 and 2 will be reconsidered. There will be no round 3 and no chance for further bids to be submitted.

The National Audit Office reports that rounds 1 and 2 generated 834 bids, but three-quarters of them were rejected. I have no doubt that there will be some very good schemes among those rejected before that fully justify their approval now. Like the noble Baroness, I welcome the announcements made, but that has been done by pumping money originally intended for round 3 bidders back into the original pool for round 1 and round 2 bidders. This clearly demonstrates that the contention of these Benches was exactly right that the overall size of the pot was always minuscule compared to the need.

That leaves some of the most deprived councils, and the smaller and less well-resourced ones, stranded. They are the ones who did not bid in earlier rounds because they could not afford to take the risk of investing time and money in a bid that had only a 1:4 chance of success. Encouraged by the July announcement that a new and simpler process was ready to come into play, they have been ready to step forward and do so, but their chance has now gone. There will be no round 3, no new bids, and no levelling up for them.

I have two questions for the Minister. Will she publish the list of local authority areas that did bid in rounds 1 and 2 but will still not benefit from any funds from any of their bids, despite the clawback of round 3 money to help? I will call that list A. It would give a good map of where the Minister thinks that levelling up is not really needed. Secondly, will she publish a list of those local authority areas from which no levelling-up bids at all have yet been received? I will call that list B. That, I fear, would give a good map of small, under- resourced local authorities that have been left stranded by the cancellation of round 3 and are left out of the picture altogether. Publishing lists A and B would be a long-overdue first step to restoring transparency and trust to what, up to now, has been an opaque and desperately underfunded bureaucratic disaster. I look forward to the Minister’s answers.

[Lord Young of Cookham (Con)]

My Lords—

[Baroness Taylor of Stevenage (Lab)]

My Lords, before the Minister sits down, can I ask her some very quick questions? I am happy to take answers in writing.

[Noble Lords]

Oh!

[Baroness Taylor of Stevenage (Lab)]

There is time. I asked questions about Northern Ireland, about inflation and about impact assessments. May I have a response to those in writing?

[Baroness Penn (Con)]

My apologies; I think I answered about the impact of inflation and the fact that we have adjusted the project delivery processes to help take that into account with local authorities. The pathfinders are under way and we will assess the outcomes of those as soon as we can, but I also said that we will seek to learn the lessons as we are implementing, not just waiting for the final evaluation at the end of the process.

On Northern Ireland, the noble Baroness is absolutely right that there were no allocations in round 3 of the fund; I reassure noble Lords that this funding has not been reallocated to other parts of the UK and will remain reserved for and be provided to Northern Ireland. We will continue to work closely with the projects that have already been awarded the £120 million in the first two rounds of the fund. We are working towards the restoration of the Northern Ireland Executive and will work with a restored Northern Ireland Executive to find the best approach for them going forward.

I am happy to have another look. If there are any points that I have missed, I will make sure that I write to both noble Lords on them.

Local Government Finance

Baroness Taylor of Stevenage Excerpts

Tuesday 21st November 2023 Lords Chamber

Asked by

[Baroness Taylor of Stevenage]

To ask His Majesty’s Government what assessment they have made of the impact on local government finance of increasing demand for emergency and temporary accommodation.

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

Local authorities deliver vital homelessness services and we recognise that the increasing demand for temporary accommodation places pressures on councils. That is why, taking together the 2022-23 and 2023-24 local government finance settlements, we have increased the funding available to local government in England in real terms. In addition, we are providing over £1 billion to councils over three years through the homelessness prevention grant.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I welcome the Minister to her new role and greatly look forward to working with her. Please can we express our very best wishes to the noble Baroness, Lady Scott, for her continuing recovery?

There has been a rapid and dramatic increase in homelessness, with over 104,000 households currently in temporary accommodation—the highest number since records began in 1998. This created a budget pressure of £1.6 billion for councils in 2021-22. So many well-respected sector experts, including the Local Government Association, the District Councils’ Network, Citizens Advice, Crisis and London Councils, have made representations to the Chancellor in advance of the Autumn Statement, pointing out that the key drivers of this increase are the failure to upgrade local housing allowance in line with inflation and a spike in Section 21 evictions. What assessment have the Government carried out of the impact of the freeze on local housing allowance?

[Baroness Penn (Con)]

My Lords, as with all benefits, we keep the local housing allowance under review. The noble Baroness also mentioned Section 21 evictions, which, as she knows, are being reformed through the forthcoming Renters (Reform) Bill that is making its way through the other place and which we will see here shortly. I return her welcome and look forward to working with her across the Dispatch Box. I also look forward to my noble friend Lady Scott joining me back on the Front Benches soon.

Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

[Lord Thurlow (CB)]

My Lords, I declare my interests as a former chartered surveyor. The current CPO guidance attempts to deal fairly with owners who are caught up in the process of having land acquired under compulsory purchase, but it remains a blunt instrument. This amendment requires the Government to provide a duty of care, which is an excellent proposal. It is also appropriate, as we heard from the noble Earl, Lord Lytton, that compensation under CPO is paid on transfer, as it is when any citizen in this country buys or sells any of their private property. I see no reason at all why it should not also be the case under compulsory purchase. I support the amendment.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the powers introduced by this section amend and clarify powers and procedures for using compulsory purchase and have been extensively consulted on—unlike some other parts of the Bill. The LGA’s view is that the introduction of measures that would genuinely make the CPO process more efficient for councils is an encouraging step, as it has previously lobbied on the need to reduce the time taken to use the CPO, and it also believes that these changes will make the valuation of change in this context closer to a normal market transaction.

In fact, the LGA view is that the Bill could have gone further. It would also like to see the ability to tackle sites which have had planning permission for a long time but which have not been built out through stronger compulsory purchase powers, and the removal of the requirement for permission from the Secretary of State to proceed with a CPO, which would expedite the process for local authorities. Of course, the Secretary of State could always retain the right to call in in circumstances where it would be necessary to do so.

I listened carefully to the noble Lord, Lord Carrington, and the noble Earl, Lord Lytton, and I am sympathetic to the specific issues they raised, particularly the issue about prompt payment for purchases of land. Perhaps I have had an unusual experience of the CPO process but the conditions are already stringent, both in setting out the process for a site qualifying for a CPO and in the requirement for valuation of that site. Therefore, while I appreciate the thinking behind the amendment, it seems that there is already guidance in place—indeed, the amendment refers to it. I look forward to the Minister’s response.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 246, tabled by the noble Lord, Lord Carrington, would place a requirement on the Government to publish by regulations a new duty of care for all acquiring authorities undertaking compulsory purchase. The proposed duty of care would involve obligations on acquiring authorities to acquire only land necessary for their schemes and to mitigate the impacts of their schemes, as well as to pay compensation to landowners at the date of entry or date of vesting and ensure that all communication with claimants is conducted in accordance with government guidance. I reassure noble Lords that the Government understand the concerns behind this amendment. However, the Government consider the proposed duty of care to be unnecessary for the following reasons.

First, whatever the underlying scheme, a guiding principle of compulsory purchase is that acquiring authorities should include within the boundary of a CPO only land which is required to facilitate the scheme. It is for acquiring authorities to demonstrate that there is justification and a compelling case to support the inclusion of land within a CPO boundary. Where they cannot, a CPO is likely to fail.

Secondly, another principle is that the use of a CPO is lawful only providing that acquiring authorities compensate landowners for the loss of their interests, whether the land is acquired following notice to treat or is vested in the acquiring authority. Where an acquiring authority takes possession of land before compensation has been agreed, it is obliged to make an advance payment of compensation to the landowner if requested.

--- Later in debate ---

[Lord Shipley (LD)]

In moving Amendment 247YYE, I will speak also to Amendment 288B; both are in my name and that of my noble friend Lord Foster of Bath and relate to second homes. They would give a power to the Secretary of State by regulation to permit local authorities, through a licensing scheme, to set a limit on the proportion of dwellings which, at the point of sale, become second homes for council tax purposes.

We have heard about deal on Report on the Bill about the housing crisis, not least a crisis in the availability of truly affordable homes. Government data shows that 7,644 social homes were built in England in 2021-22, while 24,932 were sold under right to buy and 2,757 were demolished. The crisis is particularly bad in rural and coastal areas.

In 2019, the Rural Economy Select Committee, chaired by my noble friend Lord Foster of Bath, noted that, in rural areas, house prices—and so, in turn, rents—are higher than in urban areas, while incomes are lower. That disparity is widening. In Cumbria, for example, average house prices are 12 times average household incomes. As a result, it is ever harder for people of working age to live and work in rural and coastal areas, with an inevitable impact on their local economies.

There are three principal causes: too few genuinely affordable homes being built; second homes taking over full-time residential homes; and, the most rapidly increasing problem, short-term lets taking over the long-term private rented sector. In Cumbria, for example, there are currently 232 long-term rental properties available, compared with 8,384 short-term lets.

My noble friend Lord Foster of Bath, who is unable to be here today, lives in Suffolk, close to the popular seaside town of Southwold. With the recent growth in second home ownership and the rapid rise in short-term lets, of the 1,400 properties in Southwold, only 500 have full-time residents, while 500 are second homes and 400 are short-term lets. Two-thirds, therefore, are not permanently lived in.

House prices and long-term rents have risen steeply. Local families are being forced out and those working in the local tourism industry cannot find or afford local accommodation. As a result, many of the bars, restaurants and hotels now have staff vacancies. As a local councillor said recently, soon people will not

“want to visit the soulless toy town where no one lives any more”.

In Committee, my noble friend Lord Foster of Bath and I proposed amendments to address the issues of short-term lets and second homes. In particular, we proposed separate use categories for both. Other noble Lords also addressed these issues, with a range of similar proposals. In response, the Government promised to take action. Indeed, as a result, consultation has been taking place on proposals to introduce a short-term let registration scheme, which would allow councils to apply health and safety regulations across the guest sector.

Consultation has also been taking place on establishing a separate use class, C5, for short-term lets. I welcome these proposals and the intention of using permitted development rights so that areas of the country where short-term lets are not an issue are not impacted. Where they are, a planning application will be required for change of use to a short-term let and councils can decide whether, given local circumstances, it should be approved.

Clause 218 of this Bill provides for the implementation of the registration element of these proposals. These Benches welcome the proposals and hope they will be implemented quickly. However, this completely ignores those second homes not being used as short-term lets. They should be known as “second homes for council tax purposes”. On the latest figures, there are some 257,000 such properties in England; although not as rapidly as short-term lets, the numbers are growing year on year.

I expect that the Minister will point to the way in which neighbourhood plans can be used to address this issue and the new power for councils to further increase council tax on second homes. While undoubtedly welcome, these measures do not give affected local councils sufficient powers to address the problem. Can the Minister explain why the Government, having belatedly agreed to address the short-term lets problem, are failing to do the same for the second home problem?

The two amendments in this group in my name and that of my noble friend Lord Foster of Bath propose a solution. We could have adopted a similar approach to the one the Government have proposed for short-term lets and if, in response, the Minister suggests the Government plan to explore that route, we will be happy to support it. However, following a substantial discussion with local councils and councillors, we propose a new approach: a licensing approach available for those councils which choose to adopt it.

It is a simple approach. By restricting its application to the point of sale, it does not impact existing homes. We recognise that it would require a person seeking to buy a property to be used as a second home—not intended to be a short-term let—to conduct inquiries into the likelihood of a council agreeing to a licence. That is no more onerous than many other pre-purchase searches and no different to that required for a use class order change to short-term let. But it would give much-needed powers to councils which face problems caused by second homes. I hope the Minister is in listening mode on this matter.

Finally, on second homes and council tax, can the Minister explain what steps the Government will take to resolve their failed attempt to close the tax loophole? For some years many of us have been drawing attention to the situation whereby second home owners avoided paying either council tax or business rates. They did this by claiming their property was available for rent—and so eligible for business rates—but then ensured that little rental took place and so the business income fell below the threshold, so no tax was paid.

Last January, so-called tough new measures were introduced for eligibility requirements: making the property available for rent for 140 days a year and proving it had been for at least 70 days. However, as the Daily Telegraph reported earlier this month:

“Holiday let council tax crackdown backfires—costing local authorities millions”.


The tough measures have not prevented more and more second home owners registering as a business and then claiming 100% business rate relief. Two years ago, 73,000 such properties were on the business rates list in England; the figure now stands at over 85,000. Can the Minister tell the House what further steps will be taken to address this problem? I beg to move.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the percentage of second homes in so many parts of the country has had such a devastating impact on communities. We heard about that in great detail in Committee and had many examples from all sides of the House. We noted that it particularly impacts on rural and coastal communities. I am also concerned about the tax loophole and that so many second home owners avoid paying either council tax or business rates. This is clearly an anomaly and needs to be resolved.

The amendments in the names of the noble Lords, Lord Foster and Lord Shipley, would be an important next step in tackling this. We too welcome the licensing steps already taken but, if we are going to tackle this, we need to go one step further. We look forward to hearing the Minister’s response to the amendments proposed.

[Earl Howe (Con)]

My Lords, Amendments 247YYE and 288B, in the name of the noble Lord, Lord Foster, and spoken to by the noble Lord, Lord Shipley, bring us to the often sensitive issue of second homes. We recognise that large volumes of second homes or short-term lets can become an issue when they are concentrated in particular areas. That is why the Government have taken decisive action. We committed to introduce a registration scheme for short-term lets in England through this Bill and consulted on the design of the scheme earlier this year. At the same time, we also consulted on proposals for a new short-term let use class with associated permitted development rights. Further announcements on both consultations will be provided in due course.

We introduced higher rates of stamp duty for second properties in 2016 and a new stamp duty surcharge for non-UK residents in 2021, and new measures to strengthen the criteria for holiday lets to be eligible for business rates came into effect in April. Furthermore, this Bill will give councils the discretionary power to apply a council tax premium of up to 100% on second homes.

The noble Lord, Lord Shipley, asked why we are not making further changes in respect of second homes. Through the Levelling-up and Regeneration Bill and other measures, the approach we are taking is to boost housing delivery more broadly to make more homes available, including in those areas where there are high concentrations of second homes. Second homes that are additionally let out may fall within the short-term let use class that I mentioned where they meet the definition.

It might be helpful if I say a little more about the Government’s approach to first-time buyers in particular. We recognise the hardship people face when they cannot find a home of their own. Our £11.5 billion affordable homes programme will deliver thousands of affordable homes to rent and buy right across the country. The Government are committed to helping first-time buyers to get on to the housing ladder. We operate a range of other government schemes, including shared ownership and the lifetime ISA and we continually keep options to support first-time buyers under consideration. We are also committed to ensuring that enough homes are built in the places where people and communities need them and our first homes scheme is providing new discounted homes prioritised for local first-time buyers.

The noble Baroness, Lady Taylor, referred to the common perception that some second homeowners may pretend to let out their property in order to benefit from small business rate relief. That is why the Government introduced, from April this year, new criteria for holiday lets to show that they have been let for at least 70 days and have been available for at least 140 days in the previous year. If they are entitled to receive small business rate relief as a holiday let operator, that is perfectly appropriate. If a property cannot demonstrate those criteria, it will be liable for council tax.

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, this may be the fourth occasion in the House on which I have debated pavement licensing. There is obviously a reason for that; we have not got the regulations quite right. As the noble Lord, Lord Holmes, raised in his amendment, there is a natural conflict between the use of the public highway as an extension of a licensed premises, restaurant or café, and the use of it by the public to get from A to B. I totally agree. At the very earliest iteration of these regulations about pavement licensing, both he and I proposed that barriers ought to be in place to restrict the use of the highway so there would be plenty of room for pedestrians and those in wheelchairs or pushing buggies to get through safely. I am still concerned that that regulation is not part of the licence for use of the public highway.

The second important issue is about smoke free. All I will say is this: it needs to be smoke free. This is a health issue. We need to take every opportunity we can to ensure that there are no opportunities for people who do not wish to inhale somebody else’s smoke to do so. I agree with all noble Lords—bar one—who have spoken on this issue.

Lastly, I will repeat the question that I have raised before. If we are permitting businesses to use the public highway, will the local authority that has to maintain the public highway have the right to require a rent for its use? This would enable continued good maintenance of pavements for people.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am very grateful to the noble Lord, Lord Holmes, for his great persistence and determination regarding common-sense regulation of the use of pavement licences. He spoke powerfully on this issue in Committee and has done so again today. We all recognise the significant boost that new uses of our pavements have given to our high streets and we support that, but it is of course important that the balance is right. Indeed, most of the amendments in this group do give some balance.

Amendments 249 and 250 relate to charging for maintenance and cleansing of high streets. We very much support the principle that the applicant should contribute—it goes along with the “polluter pays” idea—but we should think about the fact that this should really be for local determination. For example, where a local authority is trying to encourage regeneration, it may not want to implement that as part of its process of encouragement, but we certainly support the basic principle behind the noble Lord’s amendment.

New Homes

Baroness Taylor of Stevenage Excerpts

Tuesday 12th September 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The noble Baroness is right: we need more local plans. That is how we will deliver more houses. We know from evidence that local planning authorities that have local plans deliver more houses. That is why we have the Levelling-up and Regeneration Bill, are changing and simplifying making local plans and will insist that local authorities deliver local plans. If they do not, we have measures to push them to do so.

[Baroness Taylor of Stevenage (Lab)]

My Lords, in her response to the debate on housing targets during the Report stage of the Levelling-up and Regeneration Bill, the Minister stated:

“To get enough homes built in places where people and communities need them, a crucial first step is to plan for the right number of homes”.—[Official Report, 6/9/23; col. 426.]


The National House Building Council’s statistics show a dramatic decline in registrations in quarter 2 across most regions, compared with the same quarter last year; it was down 67% in the north-west, for example. It is going in the wrong direction. What is the Government’s plan to ensure that local targets meet that 300,000 homes target?

[Baroness Scott of Bybrook (Con)]

As I said to my noble friend Lord Young of Cookham, we are in an economic situation that is not as favourable for housebuilding as it was, and therefore we have to work with Homes England, developers and local planning authorities to ensure that we give all the support we can, reinvigorate the housing market and get these houses built.

Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, before I make a few comments about swift bricks, I thought I would address my remarks to the two amendments in the name of the noble Lord, Lord Lansley. He is making a case for large sites that take a number of years to build out and where, because of a change in circumstances, there may need to be a substantial change in the nature of the remainder of the site.

I have a bit of sympathy with that amendment, in that the principle has been agreed for developing the site. The question the noble Lord, Lord Lansley, is asking is whether it then matters if what goes on in the rest of the site does not comply entirely with the original planning consent. I then thought about the practical implications of his suggestion. For instance, if it changed from large executive four-bed properties to a higher density housing development for starter homes and so on for families, that would have potential implications for school places. They would not be funded under the planning conditions of the original application where a Section 106 agreement or an agreement under CIL would have enabled funding to be made available for school places, health facilities, play areas or transport requirements. Although I have sympathy with the approach that he has taken, there needs to be a new application if there is a substantial change. I will listen carefully to what the Minister says in response.

On buildout, I get frustrated by developers starting a site but not proceeding to complete it in a timely way. There is nothing worse in a community than seeing a site that has been started but not finished. It will not be like this now, but there was a fairly notorious one in the area of West Yorkshire where I live: the planning consent was derived in the 1940s and the first earth movements were made and tranches dug, but nothing substantial happened on that site until the 1990s. So I encourage buildout and, again, it would be good to hear what the Minister says about it.

That leads me to swift bricks—very swiftly, as one might say. I have an interest, as a member of the Royal Society for the Protection of Birds. Having said that, noble Lords will be able to tell that I favour and love watching birds, and I visit the RSPB sites as often as I can, because it is a joy. Over the years, I have seen a decline. Swifts are summer migrants, as everyone will know. I always look forward to seeing swallows and house martins when I am out delivering for the May elections—that is when I see my first swallow or swift. If it is a joy for me, it is a joy for many other people.

So swift bricks and nesting sites that have been lost, and swift bricks being an answer to the loss of those nesting sites, is important, and there has been a passionate argument in favour of the amendment in the name of the noble Lord, Lord Goldsmith. Obviously I obviously support swift bricks—who would not? I remember watching a “Countryfile” programme about them on the BBC, and about an individual, whose name I obviously do not remember, who made thousands of these swift bricks—perhaps they were swift boxes—because of his passion for that bird. So let us hear what the Government have to say; it is over to them to make a decision.

My final point is on Amendment 244 in the name of the noble Baroness, Lady Taylor of Stevenage, which would reduce barriers for SME builders to get contracts and to be part of the development process in localities. That has to be positive for the economy and local businesses. So I will support the amendment when the noble Baroness moves it, and I urge the Government to accept it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I will speak to my Amendment 244 in this group and I will then make brief comments on the other amendments. Amendment 244 is designed to cover an issue that arises almost at the intersection of planning and procurement. It can be the case that, where local authorities undertake major development, the nature of the planning system is such that the subsequent tender process will be enacted only for the totality of the development. Of course, the major contractors can subcontract works out, but this process does not always accrue maximum benefit to the local economy. Our amendment aims to ensure that whatever can be done at the stage of granting planning permission is done, to enable SME participation in, and engagement with, those contracts being achieved.

Amendment 217, from the noble Lord, Lord Lansley, applies a provision for “drop-in permissions”. We note that this is an acknowledged problem that may or may not require an amendment to planning law. I absolutely take the good point made by the noble Baroness, Lady Pinnock, about the provision of infrastructure where there is a drop-in permission, and we look forward to hearing the Minister’s view on whether the existing wording is sufficient to enable the necessary change to unblock buildouts on large sites.

In relation to Amendment 219, proposed by the noble Lord, Lord Lansley, we would of course support refusing permissions to those who have not made buildout applications previously; that is a welcome change. We greatly sympathise with the noble Lord’s point that doing this to someone with an undefined connection with the previous applicant is way too unspecific in terms of planning law, and who that undefined connection would be. We agree that this needs to be either tightened up or taken out altogether, because it could have unintended consequences if it is left in the Bill as it is.

Amendment 221, proposed by the noble Lord, Lord Carrington, recommends splitting planning applications into two stages for the purpose of encouraging rural economic development. We fully support the notion that anything that can be done within the planning system to encourage rural economic development should be done. But it is difficult to see how, in practical terms, a two-stage permission would work. There is already very strong provision and encouragement in the planning system for outline permissions to be submitted and then followed by detailed permissions for major developments. This is common practice, and I am sure rural areas are not excluded. I wonder whether that would be the type of process, or if there are things I am missing in the noble Lord’s amendment.

We were delighted to see Amendment 221A, proposed by noble Lord, Lord Goldsmith, relating to the provision of swift bricks. We very much enjoyed his enthusiastic and passionate advocacy in his introduction, and all speeches made by noble Lords in favour of this. The noble Lord’s amendment follows extensive public interest in introducing this step, which led to the public petition debate to which the noble Lord referred, and to very strong cross-party support. We note also that the Wildlife and Countryside Link is in favour of this measure, as are many recognised experts.

We believe that specifically including swift bricks as a measure in the Bill, to be incorporated in planning law, is justified because of the unique nature of these precious birds’ nesting habits. They add to the biodiversity of urban areas, and I am particularly keen that we support that. I grew up as a townie and the swifts and house martins were a real feature of my childhood growing up in a town. Their decline has been very visible and sad to see. If there is anything we can do to either halt that decline or hopefully turn it around, we should certainly do so. There is definitely a clear and present threat to these species. We hope the Government will accept this relatively a small step, which could make a world of difference to protecting our swift population, and that it will not be necessary for the noble Lord, Lord Goldsmith, to divide the House—but I hope he knows he has our full support in this amendment.

Amendment 282, in the name of the noble Lords, Lord Northbrook and Lord Bellingham, may relate to issues the Minister referred to in Committee. We comment only that, while we accept that notices published on local authority websites would usually be appropriate, of course there are other ways of drawing the public’s and stakeholders’ attention. We have some concerns about stating that anything must remain permanently on a website, but we understand his point.

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

My Lords, Amendment 217, tabled by my noble friend Lord Lansley, would allow regulations to permit variations to an existing permission, without rendering that permission void. We recognise that there is concern in the sector about the impact of recent case law, particularly for large-scale phased development. This is an issue which we have looked at very carefully.

Clause 104 already introduces a new, more flexible route to vary permissions: Section 73B, where the substantial difference test can cover notable material changes. To assist the understanding of the new provision, we propose to amend the headings in the clause to make this clearer and avoid misapprehension. Existing powers in the Town and Country Planning Act 1990 would allow us to deal with this issue through secondary legislation, so we do not consider that a further power would be required. Instead, we propose to engage and consult the sector as part of the implementation of Section 73B and, if further action were needed, we would consider the use of our existing powers if warranted. I hope my noble friend is sufficiently reassured not to press his amendment on this.

Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I just wish to speak to Amendment 199 in the name of the noble Lord, Lord Berkeley. I repeat my relevant interests at the outset: I am a councillor and a vice-president of the Local Government Association.

Unfortunately, our wonderful expert on all things transport, my noble friend Lady Randerson, is unable attend this morning but what I shall say comes after having discussed this with her. On this side, we totally support Amendment 199. It is reasonable and filled with sensible caveats such as “so far as relevant” and “must … have regard to”. It is something that local planning authorities can work with but should stimulate to them to ensure that they think of travel from the start and incorporate it into their strategic policies and the local plan. Tacking it on later is never as effective. Doing it that way also ensures that there is integration between different layers of local government, which do not always work perfectly together, as we have heard throughout discussions on the Bill.

Something has to be done. At the moment Governments are failing on the targets. We will have a further discussion on targets in another group but this is about travel targets—cycling and walking targets. The target set in 2017 is for 46% of urban journeys to be walking or cycling, but all activity levels are now lower than when the target was set. For instance, the number of children who walk to school has fallen below 50%. Public rights of way, referred to by the noble Lord, Lord Berkeley, are constantly under threat from developers who regard them as an obstacle rather than—as they should be—a benefit. PROW diversions created by developers are often far less attractive than the original. That, too, is discouraging for those who want to walk. Urgent attention is needed—not more targets but practical steps such as those proposed in this amendment to incorporate active travel into the fundamental fabric of urban and rural planning for the future.

[Baroness Taylor of Stevenage (Lab)]

My Lords, Amendments 193 and 194 from the noble Lord, Lord Lansley, introduce sensible additions to Schedule 7 on the content of plans. As the noble Lord, Lord Deben, reminded us on Monday, just because Ministers assume that something will happen, that is no reason for leaving it out of the Bill. One would assume that any local planning authority would include such vital matters as meeting housing need and the economic, social and environmental needs of its area in its plan, as well as identifying appropriate sites. I agree with the sentiment expressed by the noble Baroness, Lady Thornhill, in that regard. Putting this in the Bill makes sure that it happens.

The noble Lord, Lord Lansley, was right to draw attention to the distinction between strategic and non-strategic priorities, which will become ever more important as these strategic policies are considered by a potential combined authority for the joint strategic development strategies. If they are not set out clearly in plans, how will the combined authorities identify them and make sure that they take account of them in the wider plan?

Amendment 193A in the name of the noble Lord, Lord Best, goes to the heart of a huge lost opportunity in the Bill, as currently structured, to make a real difference in addressing the housing emergency we face in this country. The figures have been much debated in this Chamber, in Committee on the Bill and in many other debates on housing, but it is a scandal that over a million families are still on social rented housing registers around the UK. With the current rate of building—just 6,000 a year according to Shelter—few of those families stand a chance of ever having the secure, affordable and sustainable tenancy they need.

This problem is now exacerbated by rising mortgage interest rates resulting in many private landlords deciding to sell the properties they were renting out and their tenants coming to local authorities to seek rehoming. Commentators in the sector say that this could affect as many as one in three privately rented properties. The figures are stark. Worked examples show that rents may have to increase by at least £300 a month. For landlords and tenants also facing other elements of the cost of living crisis, this kind of increase in costs is untenable.

The amendment from the noble Lord, Lord Best, proposes that local plans should link the provision of social housing to the provision of adequate housing for those registered with the local authority. This should be a minimum. I think the noble Lord described it as a duty to be clear about the scale of the housing problem and I totally agree. As we all know only too well, the unmet need for social housing also includes many families not on those registers. We will have a later debate about the definition of “affordable housing”, but social housing in particular merits special treatment in how it is addressed by local plans. For some families, it is the only form of tenure that will ever meet their needs. We agree with the noble Lord, Lord Best, about the importance of putting social housing priorities into the planning process, so if he chooses to test the opinion of the House on this matter, he will have our support.

Government Amendment 197 is a helpful clarification that neighbourhood plans cannot supersede the local development plan in relation to either housing development or environmental outcome reports. I was very pleased to see Amendment 199 from my noble friend Lord Berkeley and the noble Lord, Lord Young. As a fortunate resident of a new town designed with the great foresight to incorporate 45 kilometres of cycleways, thanks to the vision of Eric Claxton and our other early designers, I can clearly see the importance of incorporating this infrastructure at the local plan stage.

The experience of Stevenage is that, unless the infrastructure makes it easier to cycle and walk than to jump in a car, the latter will prevail. Our cycleways are only now coming into their own and being thought of as the precious resource that they are, so the vision to include them was very much ahead of its time. It is important that careful thought is given, in all development, to the relative priorities of motor vehicles and cycling and walking.

As my noble friend Lord Berkeley outlined, this amendment is well supported by the Better Planning Coalition and the Walking and Cycling Alliance, which says that embedding cycling and walking in development plans would

“help safeguard land … that could form useful walking and cycling routes, while ensuring that new developments are well-connected to such routes, and securing developer contributions for new or improved walking and cycling provision”.

It cites examples—they were adequately quoted by my noble friend Lord Berkeley, so I will not repeat them—of how this has not been the case in the past. I agree with my noble friend that the consultation on the NPPF makes no mention of, never mind giving priority to, local cycling and walking infrastructure plans. It makes no mention at all of rights of way improvement plans.

On Monday, the noble Earl, Lord Howe, mentioned the new role for Active Travel England as a statutory consultee in planning matters, but surely this amendment would strengthen its role by ensuring that cycling and walking are considered for every development, so that it can focus on the detail of those plans.

Government Amendments 201B, 201C and 201D are very concerning. They represent sweeping powers for combined county authorities to take over the powers of local councils in relation to making and/or revising local plans. Alongside the government proposals that the representatives of local councils will have no voting rights on combined county authorities, this represents yet another huge undermining of the role of local democratically elected institutions in favour of combined county authorities, which are indirectly elected, which may have voting representatives who have no democratic mandate at all and which operate at a considerable distance from the front line of the communities that will be affected by the decisions they are making.

In the debate on Monday, the Minister said that these new powers will be used only in extremis, but one can envisage situations where they could be used for political purposes. I raise the importance of this issue from a background of long experience of plan-making in two-tier areas and the complexities that that brings. On Monday, I mentioned that it was our local MP who held up our local plan for over a year by calling it in to the Secretary of State. Would this, for example, give a CCA grounds to initiate its power grab for the planning powers? If that were the case, you could see this being a very slippery slope indeed. What discussions has the Secretary of State undertaken with the sector on these proposed powers? These powers, like so much else in the Bill, seem to move us ever further away from the devolution and agency for local people that were espoused at the introduction of the White Paper.

[Lord Stunell (LD)]

My Lords, the noble Lord, Lord Lansley, has done a tremendously good forensic job of disclosing the fact that there is an omission—possibly accidental—connecting the whole planning process as far as non-domestic strategic direction is concerned. I look forward to the Minister’s explanation for that and perhaps to her coming back with a correction at a later stage.

The Liberal Democrats will certainly support the noble Lord, Lord Best, if he puts his proposition to the House. There is no doubt at all that it is absolutely necessary to tackle the severe problem of the lack of affordability in the rented sector. It is understood clearly by all that developing the social rented sector is the way to go—this surely must be taken into account in all plan-making. The noble Lord made a valid point about those who are homeless. This is a rising number of people and there is a reluctance among many local authorities to undertake the formidable task of dealing with the circumstances that they face.

Certainly, the points made by the noble Lord, Lord Berkeley, and my noble friends Lady Randerson and Lady Pinnock about active travel are important. I await the Minister agreeing that the connection on this between policy and the NPPF, and between policy and plan-making, needs to be corrected in the direction that this amendment sets out.

--- Later in debate ---

[Lord Lansley (Con)]

My Lords, I am grateful to my noble friend Lord Young and the noble Lord, Lord Best —he is also my noble friend in this context—for introducing Amendment 195 so very well.

I want to add my threepennyworth in relation to not only Amendment 195 but Amendment 196; one might think of them as a package. They would require local planning authorities to meet or exceed the Government’s housing target—in so far as the Government have a housing target; we have debated the figure of 300,000, which is what the Government tell us their target is, but it could of course be different if they chose a different target because of their assessment of the demographic and other requirements—and to do this by reference to the standard method. I emphasise that this means whatever standard method is applicable at the time. Personally, I do not regard our current standard method as fit for purpose. There will need to be change. I have said before—let me repeat it briefly—that the relationship between the standard method process and the prospective increases in employment in an area should assume a greater weight in relation to the objectively assessed housing need.

These amendments are a package. Remember, in addition to Amendment 195, which we are debating first, Amendment 196 would require local planning authorities to have regard to the housing target or a standard method respectively. Of course, if Amendment 195 were to go to the Commons, Amendment 196 would go with it as a consequential amendment. The House of Commons would then have an opportunity to consider the questions of whether local planning authorities should have regard to the Government’s target and standard method—that is a bit of a no-brainer; of course they should—and of whether, in addition, they should be required to meet or exceed the resulting figure of objectively assessed housing need for an area. This is the debate that the House of Commons needs to have.

There are two groups of people who should vote for Amendments 195 and 196. There are those who just agree with the policy; I am among them. My noble friends have well set out the policy objective, which fundamentally comes down to this: if a Government have a target, they need to have a mechanism for delivering it. I have had these conversations, for which I am grateful, with the Housing Minister, my noble friend and the Secretary of State. Unfortunately, the Secretary of State in particular—I love him dearly—is trying to run with the hare and hunt with the hounds. He is trying to give local planning authorities, in the minds of a minority of Conservative Members in the other place—I emphasise that it is not a majority but a minority—the freedom to have a different method and to think, “It’s a starting point but we can go south from this instead of north”. It is an opportunity for them to say, “We’ve got green belt, areas of natural beauty, sites of special scientific interest and sensitive areas. We don’t have to have the houses; they can all be somewhere else”.

In some cases, that will be true. Let me pick a place at random. If you were in Mid Bedfordshire and you knew that Milton Keynes, Bedford and Luton wanted development—and, indeed, Tempsford, which is on the new east-west rail link and faces the possibility of taking on a large new settlement of 20,000 homes—you might well conclude that, in Mid Bedfordshire, taking account of the development in all the neighbouring areas, you do not need much development. That would be perfectly reasonable. Actually, the standard method and the way in which the guidance is constructed would allow that to happen because that is precisely what joint spatial development strategies should deliver in an area such as Bedfordshire.

As I say, my right honourable friend the Secretary of State wants those who feel that they have relaxed all these requirements to feel comfortable with that, yet he wants to maintain his target. When challenged, he says, “Well, there’s still an objectively assessed housing need and, if people do not meet it and do not show that they are going to meet that housing requirement, their plans will not be sound”. I have to say, this is not the way in which to conduct the planning system, whereby local planning authorities produce plans and inspectors throw them out. That way lies madness. What we need is for local planning authorities to have the kind of guidance that enables them to produce in the first instance sound plans that are the basis on which local people can rely. That is what we are aiming for: a plan-led system. However, what the Government are moving towards is not a locally plan-led system. In my view, we need to change this.

That is the first set of people who should vote for this amendment, in this case because it is the right the policy. There is a second group of people for whom there is another, different argument. It goes, “How is this supposed to work?” This Bill was in the other place last year. It completed its Third Reading on 13 December. As far as I can tell, there was effectively no substantive debate on the provisions in this Bill relating to the housing target and standard method. Nine days after the Bill completed its passage through the other place, the Government published their consultation draft of the National Planning Policy Framework. In it, they relaxed the housing delivery test; they made the housing targets and standard method an advisory starting point, in effect; and they allowed local planning authorities to have an alternative approach.

As my noble friend Lord Young demonstrated so clearly, all of that added up to local planning authorities thinking that they had been let off. However, none of that was in the Bill. It was not debated by the House. It was not voted on by the House of Commons in any fashion. Today, if we do not send Amendments 195 and 196 to the other place, no such debate will take place in the House of Commons. The issue will go through by default. I agree with my noble friend: the world has moved on and sentiment has changed. He used to be a Chief Whip; I used to run national election campaigns. I used to look carefully at the salience of issues. The salience of housing as an issue has risen and continues to rise. I must advise my Front Bench that the salience of housing as an issue is rising not because we are building too many houses but because we are building too few. The Government may argue, “Well, they’re just in the wrong place”. There are ways of dealing with that but we do need more, which is what the standard method is intended to help us achieve.

We are having this debate today because these amendments are here on Report. If we do not send them down to the other place, the debate will not take place in the Commons. I know that there are colleagues on our Benches in another place who want to have this debate. They think that the Bill needs to show what Parliament thinks about housing targets—the standard method—and how an objectively assessed housing need should be established, and by whom. We need to give them that opportunity. I encourage noble Lords, in looking at these amendments, to realise that this is about not just the policy but the question of whether the Commons should have a chance to look at this matter. I do not mean making them think again, which is our conventional constitutional job; in this case, I mean them looking at this issue for the first time. If we do not send these amendments back, they will not even look at it a first time. We need to give them that opportunity.

I hope that noble Lords will support Amendment 195 on that basis.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords who have spoken so eloquently on this subject already. Amendment 200, in the name of my noble friend Lady Hayman, recognises the need to reinstate the provision for housing targets through the NPPF and associated guidance, and through the housing delivery test, which, I agree with noble Lords who have spoken already, is incredibly important. Similarly, Amendment 195, in the name of the noble Lords, Lord Lansley, Lord Young and Lord Best, and my noble friend Lady Hayman, and Amendment 196, in the names of noble Lords, Lord Lansley and Lord Young, see the essential part that local plans have to play in the delivery of housing need. It is, as the noble Lord, Lord Young, said—rightly, in my view—one of the most important amendments to the Bill that we have discussed on Report.

The much-respected organisation Shelter reports that there are 1.4 million fewer households in social housing than there were in 1980. Combined with excessive house prices making homes unaffordable, demand has been shunted into the private rental sector, where supply has been too slow to meet needs. That means above-inflation increases in rents.

On the affordable homes programme, the National Audit Office reports that there is a 32,000 shortfall in the Government’s original targets for building affordable homes. It goes on to say that there is a high risk of failing to meet targets on supported homes and homes in rural areas. Progress will be further confounded by double-digit inflation, soaring costs of materials and supply disruption, yet the Government seem to have no clue how to mitigate those factors, and in those circumstances the decision to scrap housing targets last December seems even more bizarre.

The National Audit Office is not the only one with concerns about the delivery of the programme. In December last year, the Public Accounts Committee outlined that DLUHC

“does not seem to have a grasp on the considerable risks to achieving even this lower number of homes, including construction costs inflation running at 15-30% in and around London”,

although that is not far off what it is in the rest of the country.

We had extensive debates about the housing crisis during Committee on this Bill, but there was nothing in the Minister's responses to reassure us that the vague promises to deliver 300,000 homes a year by the mid-2020s would feed through into the planning process—points made very clearly by noble Lords who have already spoken. I do not need to point out to your Lordships’ House that we are just 18 months away from that deadline and the target has never been met. It is being missed by almost 100,000 homes a year, and more in some years. If they are not in the planning process, what chance is there of them being delivered? According to one estimate commissioned by the National Housing Federation and Crisis from Heriot-Watt University, the actual number needed is around 340,000 new homes in England each year, of which 145,000 should be affordable.

Let us consider the latest figures from the National House Building Council. The number of new homes registered in quarter 2 in 2023 was 42% down on 2022. The number of new homes registered in the private sector in quarter 2 in 2023 was 51% down on 2022. The number of new homes registered in the rental and affordable sector was down 14% in quarter 2 2023—declines across most regions compared to the same quarter last year, with the north-west experiencing the sharpest decline of 67%, followed by the east of England at 56% and the West Midlands at 54%. Only London and Wales bucked this trend.

The consequences of not delivering the right number of homes of the right tenures that people actually need are devastating. Those of us who are councillors or have been councillors all know that our inboxes, surgeries and voicemails are full of families with horrible experiences of overcrowding, temporary and emergency housing, private rented homes that are too expensive for family budgets and insecure resulting in constant moves, more young people having to live with their parents for longer, impaired labour mobility, which the noble Lord, Lord Lansley, mentioned and which makes it harder for businesses to recruit staff, and increased levels of homelessness. All this is stacking up devastating future consequences for the families concerned, and no doubt a dramatic impact on public funding as the health, education, social and employment results of this work down the generations.

There is increased focus on addressing affordability as distinct from supply—subjects that we discussed in the earlier group. In the foreword to a 2017 Institute for Public Policy Research report, Sir Michael Lyons said:

“We would stress that it is not just the number built but also the balance of tenures and affordability which need to be thought through for an effective housing strategy”.


With local authorities charged with the responsibility for ensuring that their local plans drive economic development in their areas, we simply cannot afford to overlook the place that housing development plays in local economies.

Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly, having attached my name to Amendment 192 in the names of the noble Lord, Lord Lansley, and the noble Baroness, Lady Bakewell. The case has comprehensively been made by the noble Lord and the noble Baroness, Lady Thornhill, so I shall be extremely brief. I note that representations from the County Councils Network over the recess led me to attach my name to this amendment, because I thought that it too comprehensively made the case. At this point, I declare my position as a vice-president of the Local Government Association and the NALC.

I wanted to make a link to some of our earlier debates before the dinner break. In the last group, we were focusing on the need to tackle the problems of unhealthy communities and making communities healthier, and the mood all around your Lordships’ House was very clear, including from Government Benches and even the Front Bench. Of course, health is a county council responsibility. We talked about part of that being walking and cycling networks, for example, and about things being joined up. We also talked very much, in an earlier group, about the need for planning to consider the climate emergency and nature crisis. Local nature recovery networks are very much a growing area that needs to be absolutely joined up.

It is worth saying that this is not a political amendment; it is an attempt to make things work, to make this Bill hang together and to make sure that it works for local communities. I join others in very much hoping that we will get a positive message from the Minister.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I, too, remember the days of the regional spatial strategies, and long debates in EELGA over housing numbers particularly. Like the noble Baroness, Lady Thornhill, I did not celebrate when they got the kibosh, because I thought that there was a lot of good in them—particularly in meeting the housing needs in the east of England but also on the economic development side, which was as important. A great deal of very good work was done in pulling together data and information for the whole region, in order to look at where and how best to develop particular clusters and where they would work well. So there was a lot of merit in that very strategic-level thinking.

It has moved on a bit since the days of the noble Baroness, Lady Thornhill, in Hertfordshire, with the Hertfordshire Growth Board looking at issues outside the remit of the straightforward local planning authority. For example, there is the mass rapid transit system that south and south-west Hertfordshire was looking at, which covers a number of different local authorities. Then, there is working with the local enterprise partnerships, as we did on the Hertfordshire Growth Board. There was a clear drive towards the consideration of travel-to-work areas, which was why I spoke so strongly in favour when we discussed this issue before.

I am convinced that we need to work jointly, with joint authorities, involving them in particular in the early stages, as the noble Lord, Lord Lansley, said. It is no good waiting until a draft strategy has been produced and, if there is a major game-changer in there, expecting local authorities to pick it apart and change it. It is much better for them to be engaged and involved from the very start.

The noble Lord, Lord Lansley, mentioned government Amendment 201B, which we will debate on Wednesday, which will allow combined authorities to take on planning powers. I am not going to start the whole discussion now, but we were very concerned about this. We will have a debate about it, but it seems like a very slippery slope indeed. It is far better to include local authorities and all the component parts that make up the combined authority and their neighbours in the discussion from the early days of the joint spatial development strategy.

I absolutely support the points made by the noble Baroness, Lady Thornhill, on the inclusion of districts and councils in a very real way in the decision-making on JSDSs. I think it emphasises the points we made in earlier debates, in Committee and on Report, about the importance of the full membership of combined authorities—for both tiers in two-tier areas. Those organisations are then involved right from the start, and they have a democratic mandate to be so involved.

The noble Baroness, Lady Bennett, made the important point that there are elements that will be included in joint spatial development strategies that do not stop at boundaries, and so it is very important that we work across those boundaries on such things as climate change, healthy homes, sustainable transport and biodiversity. All those things do not come to an end when you get to the end of your local plan area, so we all need to work together on how we tackle those key issues.

We are very supportive of the amendment put forward by the noble Lord, Lord Lansley. I am interested to hear the Minister’s answer as to whether the part of the schedule that covers this would stretch to make sure that this very important early-stage consultation could be included as a requirement within the Bill.

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

My Lords, let me first say that the aim of Amendment 192 in the name of my noble friend Lord Lansley is sensible and I understand its intention. Other authorities, such as county councils, will be essential for a successful plan, given that they are responsible for delivering a range of critical services such as highways and transport, flood risk management and waste management. Of course, county councils will also have the role of a statutory consultee for the joint spatial development strategies.

We expect engagement with other authorities to be typical good practice for any group of local planning authorities preparing a joint spatial development strategy—an SDS. Indeed, it would appear unlikely that any joint SDS that did not engage appropriately with other local government bodies could be found sound at examination. Let me make it clear that county councils are going to play an important role in the plan-making process. We envisage them not just as consultees but as being closely involved with the day-to-day production of any joint SDS. The Government have set out our intention to introduce an alignment policy via the National Planning Policy Framework to address cross-boundary and strategic issues such as travel to work areas, and this policy will be consulted on in due course.

Both my noble friend Lord Lansley and the noble Baroness, Lady Taylor of Stevenage, brought up the government amendments in the next group. Just to make it clear, Schedule 4 amendments will mean that combined county authorities will be in the same position that the Mayor of London and county councils and combined authorities are in currently in relation to the ability of the Secretary of State to invite those bodies to take over plan-making, but where a constituent planning authority is failing in its plan-making activities. It is not that they can just walk in and take over, but if the local plan is not being delivered by the planning authority then they have the right to ask the Secretary of State if they can take it over. I just wanted to make that clear, but I am sure we will have the discussion again on Wednesday.

My noble friend brought up the Secretary of State’s powers in relation to the role of county councils. I do not know that, legally. I will make sure that I find out tomorrow and I will write to my noble friend and send a copy to those in the Chamber tonight.

I am not convinced that this amendment is needed to make local planning authorities work with other authorities, notably county councils, on joint SDSs. I hope that my noble friend Lord Lansley feels he is able to withdraw his amendment at this stage.

Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, the noble Lord, Lord Lansley, has raised a very important point about the effectiveness of a plan-led system if local plans are not up to date. The noble Lord, Lord Deben, has enhanced that argument by saying that people need to know where they are. If this is only in guidance, but we require there to be local plans—as we do in a plan-led system—why is it not incorporated in statute? I hope the Minister will answer this question.

The noble Lord, Lord Lansley, has raised a fundamental issue. Local plans are at the very heart of a plan-led system. As well as setting out local planning policies, the local plan allocates land for new housing developments; it allocates land for business development, thereby allocating land for jobs; and it allocates land to be protected, such as the green-belt land allocation.

If local authorities are not preparing, or do not have, an up-to-date local plan, then land is not being allocated for development. We will later have debates about housing targets, but one of my concerns about housing targets is that, if local authorities do not have an up to date local plan, land is not being allocated or set aside for housing development. If land is not being set aside for housing development, it is very likely that new houses are not going to be built.

The government website helpfully has an alphabetical list of authorities and the status of their local plans—although it is unhelpful in being able to look at them more carefully. The vast majority do not have an up-to-date local plan. In fact, one or two on the list do not appear to have updated their local plan for several years. What that tells me is that, currently, the expectation is that local authorities will develop a local plan and have it agreed, with a full review after five years. Helpfully, my own authority is not one of those that does not have an up-to-date plan, and it is currently beginning a review a year ahead of expectation.

If land is not allocated for housing, how on earth do we expect housebuilding to take place? I hope the Minister will be able to help me with this, because some time ago in a previous debate on this, I thought I recalled the Minister stating that a five-year supply of land will no longer be a requirement and will be waived by the Government. As I understand it, at the moment that is the only stick to encourage—or force, even—local authorities to allocate land for housing in a local plan. Currently, although it may be waived—and I am waiting for the Minister to respond to that—as I understand it, if a local authority does not have a sufficient supply of land for a five-year allocation according to government housing targets, then developers can choose where to develop. It is open season for housebuilding. If that one stick is being waived—and I hope I have remembered that correctly—then I would like to hear from the Minister on how they will encourage local authorities to have up-to-date plans, because without them, I do not see how we will meet housebuilding targets.

The issues that the noble Lord, Lord Lansley, raised, are fundamental. When he replies, will he say whether he wishes to test the opinion of the House on this? Without an up-to-date plan, all the Government’s housing targets approach—which my party does not necessarily agree with—comes to nothing. Only the authorities that do the right thing, having difficult discussions with communities about allocating land for housing and other development, will supply the houses that need to be built. Everyone across parties accepts the importance of building more houses; how we get there is the issue. However, I would love to hear from the Minister how that will be enforced without an up-to-date local plan. If the noble Lord, Lord Lansley, in responding wishes to push this further, we will support him.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is good to be back in your Lordships’ House. I remind the House of my interests as a serving councillor on both a district and a county council, and as a vice-president of the District Councils’ Network. I say for the record that, in spite of the considerable difficulties in doing so, not least the local MP calling our local plan in and it sitting on the Secretary of State’s desk for 451 days, my local authority has an up-to-date local plan.

During my several recent visits to Mid Bedfordshire—for reasons of which many Members of this House will be aware—it has become clear that the public are becoming increasingly aware of the key role that the planning system plays in determining the future of their area. This is very healthy, and I hope it will continue. That makes it even more important that local plans are up to date and meeting the current challenges of local areas and their communities. The importance and precedence of local plans within the new planning system envisaged in the Bill will be even more diminished where local authorities do not take responsibility for updating their local plans seriously. The figures we heard in Committee, that only 39% of local authorities have an up-to-date plan in place, and that there are around 60 local planning authorities whose plans are paused or stalled, already expose those areas to developers who want to take advantage of the absence of clear local direction. They are destined under the new regime in the Bill to see the views of local people overridden by NDMPs and other government direction. Our fear is that this will just reduce the incentive for local government to keep its plans up to date.

We have also seen that, in order to keep pace with rapid changes to local economies, it is vital that local authorities work with their business community to ensure that their local development plan is up to date and fit for purpose for that reason, as well as due to all the issues around land use.

The CPRE’s review of the impact of local plans led to its conclusion that

“the government needs to give councils more support and consider how to redefine the test for plans being ‘up-to-date’ in order to reinvigorate democratically accountable locally-led planning”.

For fear of misinterpretation, this does not mean the kind of centralisation of plans we see via proposed NDMPs or removing the powers to higher tiers, which we see in a government amendment that will be debated later today. Those options simply remove the connection between the local plan and engagement in its development by local people and communities.

I agree with and support all the comments that were made by the noble Lord, Lord Lansley, about the weight that is given to out-of-date and emerging plans. They need to have that statutory weight, and that needs to apply to all plans that are considered. On recent issues, the development industry, for example—the noble Lord, Lord Deben, mentioned this—has been very keen to stress the importance of it having more certainty in the planning system. Therefore, without clarifying even this element of plan making, about what is out of date and what is not, we leave the “how long is a piece of string” theory in place, which will hold sway in planning. Placing all these matters into guidance, as the noble Lord, Lord Lansley, said, does not give Parliament any role in this; on many occasions recently we have seen what happens when that occurs.

The noble Earl, Lord Lytton, mentioned that the uncertainty about the weight placed on an out-of-date or emerging plan, how out of date it has to be before it is actually out of date, and what a judge is going to say is and is not out of date, damages confidence in and the coherence of our planning system. The noble Lord, Lord Deben, referred to the huge need for people to know where they are, and I could not agree more. If we think we are going to do it anyway, what is the harm putting it in the Bill so that we can all refer back to it? I also thank the noble Baroness, Lady Pinnock, for talking about effectiveness of a plan-led system and the impact that out-of-date plans can have on the delivery of housing targets and the amount of housing needed in local areas.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

My Lords, way back in March, when we had our lengthy discussions on the planning section of the Bill, we explained that although our amendments necessarily covered the detail of the various clauses, there was huge concern in local government about some of the fundamental principles that underlie the proposed changes in the Bill.

We must ensure that local plans, with the input of local people and democratically elected representatives, retain their primacy over anything that is drawn up centrally in Whitehall. Now that we are on Report, I feel that the amendments in this group reflect that these concerns remain and that the issues we raised in Committee have still not been resolved.

The amendment tabled by the Minister, in relation to determining matters under planning law in accordance with the development plan and any national development management policies, taken together, do nothing to reassure those of us whose concern was about how conflict between national and local policy will be resolved. Therefore, we have tabled Amendment 186 in the name of my noble friend Lady Hayman of Ullock, which asks for consideration of which policy has been most recently adopted, approved and published, what liaison has taken place with local authorities, the importance of adequate housing supply and the protection of the natural environment. In all those areas, it is vital that the latest information and data should take precedence over policies which may be years out of date. I reiterate the ongoing concerns of the Local Government Association in this regard that

“in reality, local plans will be constrained in the event that they conflict with National Development Management Policies, in which case the latter will take precedence. We have previously sought an amendment to reverse this proposal so that local plans will take precedence in the event of conflict. This is critical to ensure that that one of the key principles of the planning reforms—‘a genuinely plan-led system’—is enshrined in the Bill”.

Amendment 188 in my name reflects our continued concern that the relative weight of various key planning documents and guidance, when taken into consideration with the centrally determined NDMPs, is still not clear enough. When we discussed this in Committee, the NPPF was still out for consultation, but that does not alter the fact that the whole sector must have some clarity before the Bill completes its progress.

In the Minister’s explanation in March, in which she gave the rationale to introduce NDMPs, she stated:

“It will help local authorities produce swifter, slimmer plans by removing the need to set out generic issues of national importance”.


She just repeated that statement in the last group. In Committee, she continued:

“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”.—[Official Report, 22/3/23; col. 1839.]


However, if local authorities do not have the clarity they need about what lies in the hands of their locally elected members working in consultation with the public and what is determined nationally, the whole system could quickly be mired in conflict and litigation.