Non-Domestic Rating (Lists) (No. 2) Bill

Baroness Thornhill Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Monday 18th January 2021 Lords Chamber

[Baroness Thornhill (LD) [V]]

I remind the House that I am a vice-president of the Local Government Association. As my noble friend Lord Shipley and others have so ably stated, we have few issues around the specifics of the Bill and the most pertinent points have already had a good airing during this excellent debate. Like many others speaking today, I believe that the time for tinkering with and tweaking the business rates system has long passed. I eagerly await the outcome of the review and urge the Government to be both bold and radical.

During my years as the elected Mayor of Watford, in any discussion with businesses in the town, business rates would crop up. I had a set patter about how we, the local authority, did not set business rates, nor did we get all the money into our coffers; we were merely the collector. Interestingly, that fact was always greeted with incredulity. The first complaint was that the rates were too high, of course, and the next that the system of exemptions and reliefs was too complicated; it is. Then, a matter of which I knew nothing at first was the long gap between valuations and the real problems that led to. They clearly felt that such valuations were out of kilter with local economic realities and should be more frequent. In previous iterations of the Bill, as was mentioned by the noble Lord, Lord Bourne, a period of three years was proposed, but it has now gone back to five years, while many groups press for annual valuations. Perhaps the Minister could explain the thinking behind that.

There is no doubt that the Bill, in kicking back the revaluation by a further year, will give businesses some stability, which has been broadly welcomed. But I fully agree with the noble Lord, Lord Naseby, on the AVD, and I too would like the Minister to explain the rationale for the next valuation to be based on April 2021 costs and rentals. That is surely too early for the full impact of the pandemic to hit, and yet it will not be implemented until April 2023. As my noble friend Lord Stunell said, businesses that get a valuation downwards have to pay more rates for a further two years, at an already difficult time.

If I really wanted to see sparks fly in the conversations I mentioned earlier, I only had to mention transitional relief schemes. This is but one of a number of examples in which the current web of reliefs hinders the system and, more importantly, contributes to further unfairness. It needs serious reform. There was also always “Don’t get me started on appeals,” usually with a look towards the heavens. Appeals have already been mentioned by several noble Lords, as well as the backlog of 50,000 cases for the 2010 and 2017 lists. Minister, is there a closing date for the appeals from the 2017 list yet? Within the forthcoming reforms, is there consideration for a much shorter window of time following a revaluation—say, six months—in which to appeal?

It has long been recognised that the Valuation Office Agency is not agile enough to keep up with and adapt to changes in demand within sectors, such as the shift towards online, which has been much mentioned this afternoon. The case could be made that delayed devaluations have, in fact, acted as a subsidy for online retail. While logistics space has massively increased as a result of this trend, it is not taxed anywhere near as heavily as retail shop space. Are the Government looking to address this particular unfairness in their upcoming reforms? The VOA has been criticised for being difficult to deal with and cumbersome, and its valuations as often opaque and inconsistent. Minister, will any consideration be given to local government being the responsible authority for valuations, working in genuine partnership with local experts who know their patch and can respond to change more quickly? This happens successfully in some other countries, often alongside annual revaluations. It can be done.

The principle behind the local retention of business rates is good but, unfortunately, in reality it has meant that local authorities are now competing with each other, not only to attract inward investment, but even to outbid each other in the now controversial commercial entrepreneurial investments. I feel that, particularly in a two-tier system, economic areas are just too small to be really effective and local enterprise partnerships lack the powers and finance to make a difference.

Combined authorities, however, are showing what can be done to drive improvement across larger economic areas. Minister, to encourage and incentivise councils to work together on economic development, which is surely needed, would the Government consider allowing areas that agree to work in this pooling system to keep 100% of their business rates? Finally, can the Minister at least hint at whether it is the Government’s intention, eventually, to transfer the powers and freedoms around businesses rates that are currently available to elected mayors in combined authorities to all local authorities?

National Planning Policy Statements: Climate Change

Baroness Thornhill Excerpts

Thursday 3rd December 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, there is a tremendous commitment to the objective that my noble friend—well, not my noble friend; sorry, I am not good on the protocol yet, but I consider the noble Lord a friend, even though I cannot say so. The Prime Minister set out his ambitious Ten Point Plan for a Green Industrial Revolution. It covers clean energy, transport, nature and innovative technologies. There is a real ambition in this Government to ensure that we meet our climate change commitments, and we will continue to work on delivering that plan. It is no good having a plan unless you implement it.

[Baroness Thornhill (LD)]

I too am a vice-president of the Local Government Association. The White Paper proudly proclaims to be sweeping away red tape and simplifying requirements for environmental assessment and mitigation. How will the Minister guarantee that this deregulation will not lead to a rollback of environmental standards? What will be the role of the local authority—if at all—with regard to monitoring and enforcing new standards when they eventually arrive? They do not appear to be involved in the drawing up of them, according to what I can read in the White Paper.

[Lord Greenhalgh (Con)]

My Lords, that is a misrepresentation of the thrust of the planning reforms. We need to engage with communities. The idea of the planning reforms is to ensure that engagement happens up front and that it works within a framework to make sure that we get sustainable development and that we also hit the objectives that we have set as a Government.

Town and Country Planning (General Permitted Development) (England) (Amendment) (No. 2) Order 2020

Baroness Thornhill Excerpts

Tuesday 27th October 2020 Lords Chamber

[Baroness Thornhill (LD)]

I am delighted to be sharing the Chamber today with our two new Members, who are clearly going to bring to it the considerable expertise for which we are known and renowned—but, I expect, from very different perspectives.

My noble friend Lord German was right to table his Motion as it seems there is much disquiet about these and previous SIs, as well as the proposals in the Government’s current White Paper. Our concern is that taken together these constitute, in the words of a government Minister, the most significant changes to the planning system in 20 years and, in the words of another, a complete overhaul of the planning system. Thus, we feel there has not been sufficient consultation, or opportunities to really know and understand the cumulative impact of the Government’s legislative changes.

I too question the premise on which the current policy direction appears to be based: that the underdelivery of homes is largely the fault of the planning system. It has been mentioned many times in this Chamber that 90% of permissions are actually granted and that close to a million permissions have still not been built out. I wonder if there is something in the Government’s new proposal to take care of that, but I do not believe there is. The Letwin report also made it clear that the financial model on which the construction industry is based is far more significant in affecting the actual delivery of homes. I hope that we can have another debate on this issue, as in my experience it is a very complex one and government agencies also play their part in planning delays.

Permitted development rights were rightly introduced to reduce bureaucracy in specific and clearly understood circumstances, but these SIs drive a coach and horses through the normal system of judging and determining a proposed development. Together, the changes represent a significant shift in control away from local authorities and the communities they represent towards a significantly less regulated environment. I believe that nationally prescribed development rights disempower communities and local councils. Is it too cynical of me to suggest that that is the intention?

It is also clear that the Government’s current White Paper foreshadows the possibility of further changes to the entire planning system over the coming months, and it may well be that further permitted development reforms follow. This is perhaps why there is considerable disquiet and concern in many quarters. Alan Jones, president of the Royal Institute of British Architects, said of the Government that the arrogance and lack of understanding was “breathtaking.”

It is not just RIBA that thinks the extensions to permitted development are a bad idea. They are opposed by the Royal Town Planning Institute, the Royal Institute of Chartered Surveyors, the Chartered Institute of Building, the Chartered Institute of Housing, the Town and Country Planning Association, and more. Uniting all of these organisations, which are far from always being in happy harmony, is a remarkable achievement and a sign of the real problems of this approach that need to be looked into. Apart from those who seek to make serious money from these changes, it is hard to see who supports them.

The reputable planning consultancy, Lichfields, has stated that the changes are very significant, but are only the tip of the iceberg for potential planning changes on the immediate horizon. Hence the collective concern that the Government have failed to allow adequate time and scrutiny for these SIs and we have had no concrete reassurances as to how they will be evaluated in their totality. That is a concern which appears to be justified when you consider that the Government’s independently commissioned work on permitted development rights was damning. The report of the Building Better, Building Beautiful Commission’s notes that permitted development rights for office-to-residential change of use has led to much criticism for diminishing quality, delivering lower levels of affordable housing and reducing developer contributions. Those are three key issues. The Commission concludes that PDRs

“have inadvertently permissioned future slums … allowing sub-standard homes to be built with little to no natural light and smaller than budget hotel rooms.”

Can the Minister offer any serious reassurance that these concerns have been addressed?

The Housing, Communities and Local Government Select Committee produced a report in 2019 on the future of the high street which said:

“The Government should suspend any further extension of PDRs, pending an evaluation of their impact on the high street.”


Yet in these SIs we see significant changes to class uses that we have heard little about but which I have no doubt will have some concerns.

Do the Government intend to do a cumulative impact assessment of these and other recent SIs in tandem with the current proposals in the pipeline? If not, why not, and if yes, whoopie, but when?

Housing Delivery Test

Baroness Thornhill Excerpts

Tuesday 13th October 2020 Lords Chamber

Asked by

[Baroness Thornhill]

To ask Her Majesty’s Government what assessment they have made of the efficacy of the Housing Delivery Test.

[Baroness Thornhill (LD) [V]]

I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a vice-president of the Local Government Association.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

The housing delivery test plays an important role in providing transparency about where housing is or is not being delivered. It helps to identify the reasons behind underdelivery through action plans, which are required when delivery falls below 95%. Through these, we can see that, on the whole, authorities are taking the right steps to identify the causes of reduced housing delivery and are working proactively to address these issues.

[Baroness Thornhill (LD) [V]]

I thank the Minister. I understand what he said, but what powers do the Government believe that a council has for the delivery of a scheme once planning permission has been granted? This annual test not only monitors but also judges and punishes a council for the developer’s failure to deliver. Should this inequitable test finally be scrapped altogether or, given the uncertainty that the pandemic is causing in the construction industry, should it at least be suspended for this current year?

[Lord Greenhalgh (Con)]

My Lords, speaking as a former council leader, I know that planning permissions are only extant for a certain period. The policy appears to be working. We have seen an uptick in the numbers of homes built; there have been more than 241,000, which is a greater number than before the introduction of this housing delivery test.

Devolution in England

Baroness Thornhill Excerpts

Tuesday 22nd September 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I will take a careful look at the No More Tiers paper published by Policy Exchange some 14 years ago. I can assure my noble friend that there will be no blanket abolition of districts and that we will take a locally driven approach and ensure that decision-making is taken as close as possible to the people we are serving.

[Baroness Thornhill (LD)]

I am glad to hear the Minister say that, because my question is around unitary authorities. Obviously, the rumour mill is rife at the moment that this is causing some delays. The Minister will be aware that many councils are already working on plans for this, either with a positive frame or negatively, and that any delay or uncertainty is unsettling and demoralising. It has financial and practical implications. If we take recruitment, who wants to move to an authority that might not exist in two years’ time; and who wants to waste taxpayers’ money working up economic models that are never going to happen? Can the Minister reassure us that the Government recognise that this is a real issue for local government, and that these very important decisions will be made swiftly, as soon as possible?

[Lord Greenhalgh (Con)]

My Lords, the noble Baroness makes the important point that we need to move quickly and make decisions so that we are clear about the future. I have assured the House that unitarisation will not be a topdown, blanket approach and we will not see the wholesale abolition of districts.

Planning

Baroness Thornhill Excerpts

Wednesday 16th September 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, there is absolutely no intention to divert funding to prosperous areas from more deprived communities. I am meeting with the National Housing Federation later this week and I will take this up and make relevant representations to the department, but that is certainly not the policy intention of the proposed reforms.

[Baroness Thornhill (LD)]

My Lords, I declare my interest: I too am a vice-president of the Local Government Association. The Minister referred to building beautiful and quality. The reality is that every single day, planning officers encourage, argue with, and even go to battle with developers to produce high-quality schemes according to their local policies. Will the Minister explain how things will be different with the nationally proposed, one-size-fits-all design codes? Does he not agree that the answer might be not government-devised design codes, but giving local councils more power to enforce their own?

Town and Country Planning (Permitted Development and Miscellaneous Amendments) (England) (Coronavirus) Regulations 2020

Baroness Thornhill Excerpts

Thursday 10th September 2020 Lords Chamber

[Baroness Thornhill (LD) [V]]

I also thank the Minister for giving his time generously this week in the meeting that has already been mentioned. I certainly appreciated it. I give my wholehearted support to the two opening speeches, which said it all.

The ability to add two storeys to a block of flats is already happening. It is happening in urban centres, it is certainly possible, and it is certainly lucrative, as the noble Baroness, Lady Andrews, outlined. Planning guidance issued over recent years has promoted greater densities, and developers have certainly not missed that trick. The Government believe this might yield 800 new homes a year—a very small contribution to the housing total for such an unpopular policy.

If this is already happening under a full planning permission, what is the Government’s rationale for bringing it into the permitted development regime at all? It is a serious question because under this updated PDR, most of the responsibilities for the local authority remain the same, including site notices and the length of the consultation period. Planners must also take into account certain aspects set down by government. To residents and the untrained eye, this looks, feels and acts like a planning application, yet it is not. Residents will not appreciate the difference.

What are the differences and why have the Government made them so? There is a lower planning fee, there are no internal space standards and no contribution to affordable housing. However, the most significant difference is that for a prior approval, what councils can and cannot consider is very tightly defined in statute. Government decides it knows best. That is in contrast to planning applications, where councillors and communities have their input about their place, in that full planning applications are determined in accordance with the council’s own development plan and with its locally adopted policies.

In short, under this PDR, the council has the same responsibilities but cannot apply policies that take into account the specifics of its place. It is the difference between building beautiful and having little choice but to approve whatever developers think they can get away with—and, regrettably, that happens. From the developer’s point of view, they are being relieved of having to match the space standards of the flats below—that is, creating substandard housing—they do not need to contribute to much-needed affordable housing, they pay a lower fee, and face much less council “interference” in the shape of local policies.

When such schemes are already being permitted while ensuring that standards are maintained and community benefit captured, can the Minister say why and for what developers are now being let off the hook and residents short-changed?

Housing: New Homes

Baroness Thornhill Excerpts

Tuesday 8th September 2020 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, my noble friend is right in highlighting the importance of boosting the use of modern methods of construction, and we are helping to create a pipeline of opportunities to give confidence to the sector and investors. We are providing financial support for the sector through our £4.5 billion home building fund, and a further £450 million was announced for the home building fund this summer in response to the coronavirus crisis.

[Baroness Thornhill (LD)]

My Lords, in my experience of local government, I found the public to be very resistant to new development, changing from nimbys into BANANAs—build absolutely nothing anywhere near anybody. Planning for the Future further reduces their ability to object, preferring instead to front-load the process involving residents in master planning and the local plan. From the Minister’s own experience, how realistic is that assertion? Given that even Conservative MPs are now concerned about the proposals, how will imposing more top-down targets result in more homes and a happier public? How do we actually engage with the public in this very serious issue?

[Lord Greenhalgh (Con)]

My Lords, I recognise the antipathy for development in some places that the noble Baroness has pointed out, but two-thirds of local authorities are building in line with their housing need. The current approach and the consultation on housing need to take into account a number of factors and provide a start point for a dialogue about the number of homes that are needed to be built in next decade.

Planning Rules

Baroness Thornhill Excerpts

Tuesday 28th July 2020 Lords Chamber

Asked by

[Baroness Thornhill]

To ask Her Majesty’s Government, further to their announcement on 21 July about changes to planning rules, how they intend to measure the impact on communities of (1) any further relaxation of planning rules, and (2) any increase in permitted development rights.

[Baroness Thornhill (LD) [V]]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and remind the House that I am a vice-president of the Local Government Association.

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

The new permitted development rights and changes to the use classes order that we announced on 21 July will reduce planning bureaucracy, speed up housing delivery, support homeowners and families, and help to renew our town centres. We keep all new policies under review, including in respect of their impact on housing delivery and the wider community.

[Baroness Thornhill [V]]

I thank the Minister for that Answer. Does he share any of the concerns expressed by a wide range of professional bodies, including the LGA and others, that the cumulative impact of these PDRs is to create the slums of the future? That is evidenced most recently by research from the noble Lord’s own Government which shows that four out of five units already created in this way do not meet the very low national minimum space standards? Can the Minister say what action the Government are taking to ensure that this does not continue in the absence of local planning permissions? Can he see how the continuous erosion of local councils’ plans and policies is undermining public confidence in the planning system, as any councillor will confirm?

[Lord Greenhalgh]

My Lords, I point out that permitted development has yielded 60,000 homes that would not otherwise have been available. On the point on quality, the report raises some concerns about the quality of some of the schemes developed under permitted development rights. We have made changes in respect of requirements for adequate natural light, and that should deal with some of the issues raised in the report.

Business and Planning Bill

Baroness Thornhill Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Monday 13th July 2020 Lords Chamber

[The Earl of Clancarty [V]]

My Lords, I will be very brief indeed. I support the amendment from the noble Baroness, Lady Bowles. It seems a matter of common sense that, certainly in the shorter term, there might be a need to use other spaces. The LGA supports such measures, and I hope the Government take notice and clarify the position.

[Baroness Thornhill (LD) [V]]

My Lords, I support my noble friend Lady Bowles of Berkhamsted’s Amendment 24. Her speech shows that there is much confusion around aspects of the licensing laws. This is also abundantly clear from contributions by other noble Lords today, which is why I echo what the noble Baroness, Lady Kennedy of Cradley, said at Second Reading: a review of our licensing laws is long overdue.

It seems very likely that there will be areas not currently within the so-called red lines of the licence that may be better used for external drinking than the obvious pavement areas, for reasons outlined by the previous speakers. I absolutely agree with the noble Lord, Lord Lucas, that local authorities, which know their area, pubs and landlords best, should have maximum flexibility.

This amendment seeks to expand the opportunities for creating such outdoor spaces. For example, can the Minister clarify whether councils can license parking bays that have been suspended—naturally, subject to safety and local considerations, as always? This would enable businesses to take advantage of pavement licences that they otherwise would not be able to because of the limited width of the pavement, for example. Can the Minister also clarify whether new pavement licences are exempt from the public space protection orders in the same way that licences under the Highways Act 1980 are—or are the powers already there but not explicit, in which case can guidance be amended?

[Baroness Pinnock [V]]

My noble friend Lady Bowles has raised detailed issues about the use of alternatives to pavement licences that may be of more value to pubs and cafés and less disruptive to residents. This is eminently sensible and promotes business. I am confident that the Minister will be constructive about the way forward in response to this thoroughly sensible amendment.

--- Later in debate ---

[Lord Whitty (Lab) [V]]

I will also be brief. The Minister has successfully taken the wind out of our sails on this one. I look forward to what she will say at the end of the debate. This is strictly about off-sales. It is not an anti-pub move; it is a way of avoiding the kind of disorder that the police have experienced and many of us have seen on our screens. It is solely to do with off-sales beyond 11 pm; obviously the noble Lord, Lord Cormack, goes to bed slightly earlier than the rest of us. If the Minister comes up with an 11 pm cut-off, I will listen to the details, but I certainly do not want to detain the Committee any longer.

[Baroness Thornhill [V]]

I, too, have been asked to be brief. It is worth saying that obviously there are serious concerns about the cumulative impact of these issues where premises are gathered together. Certainly, from my experience of running a local authority with, at times, too lively and vibrant a nightlife, saturation must be looked at.

I am grateful that we had a good response on the timing but the overriding principle for me is that, in collaboration with operatives—often through good Pubwatch schemes and the local police—local authorities have come up with conditions to put on these licences. The Bill suspends those and throws them out the window, when they have been put on for good reason and through good collaboration. In principle, I feel that this is an unwelcome move.

My daughter was glassed in the face as a 27 year-old when out with her friends on a normal Saturday night. It can, and does, happen. If only that glass had been plastic. I still think that we have to have that debate on Report.

Amendment 45 in the name of my noble friend Lord Shipley is about the late night levy, which is a curious anomaly that he will expand on. I totally support any change that will allow a local authority to refund pubs for services that they have not received during lockdown while they have been obliged to pay this additional tax. I call my much-shortened remarks to a close.