Levelling-up and Regeneration Bill

Debate between Lord Foster of Bath and Baroness Scott of Bybrook

Report stage
Tuesday 11th July 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, I am not aware that the advisory council is publishing papers, because it is advisory to the Government. I will make further inquiries and come back to the noble Lord and others in the Chamber.

[Lord Foster of Bath (LD)]

To save the House time later, I remind the Minister that rural-proofing is not about giving a list of good things you have done in rural areas. To quote the Government’s own document:

“Rural proofing aims to understand the intended outcomes of government policy intervention in a rural context and to ensure fair and equitable policy outcomes for rural areas”.


If the Minister is correct that this legislation has been rural-proofed, will she commit to publishing the specific report for this Bill, which would achieve what my two amendments are seeking to do?

[Baroness Scott of Bybrook (Con)]

My Lords, a number of proofings have been done on the Bill. I will ask for those and make sure that they are brought forward. It is not about giving money; it is about knowing where money is required in rural areas to make life better for people, as well as making sure that policies are rural-proofed. If we find out through that rural-proofing that some policies are not delivering as well as they could for rural areas, we have to do something about it, and that is what the Government are doing.

Levelling-up and Regeneration Bill

Debate between Lord Foster of Bath and Baroness Scott of Bybrook

Committee stage
Thursday 18th May 2023 Lords Chamber

[Lord Foster of Bath (LD)]

I am sorry to interrupt the Minister. She has given a number of examples. Will the biodiversity net gains required in the Environment Act 2021 be included in the exceptions she has just listed?

[Baroness Scott of Bybrook (Con)]

I think I have just said that we are currently consulting on what will be in those. I would prefer to wait until after that consultation and then we will know what is going to be in them.

Amendments 332 and 333 seek to require a local authority to prepare an assessment of its affordable housing need and for the infrastructure levy rates to be set at a level that will meet this need in full. We must recognise that the total value that can be captured by the levy, or indeed any system of developer contributions, will not necessarily match the costs of meeting the entire affordable housing need of an area. Revenues will depend on the value of development that comes forward, and that will not always match need.

Nevertheless, new Section 204G(2) in Schedule 11 requires that charging authorities, when setting their rates, must have regard to the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. That will ensure that affordable housing need is accounted for when levy rates are set. Furthermore, charging schedules will be subject to scrutiny by public examination to ensure that it does.

I want to make it clear that the list of infrastructure issues is not in priority order. Although affordable housing may be seventh on the list, that does not make it a priority. That list is also not necessarily complete.

As noble Lords will no doubt be aware, strategic housing market assessments or similar documents are currently part of the evidence base used to prepare a local plan. These are required as a result of national policy contained in the National Planning Policy Framework, rather than in primary legislation. Under the new system for preparing local plans, local authorities will continue to be required to prepare evidence regarding different types of housing need, including affordable housing. That will inform not only the local plan but the infrastructure delivery strategy.

I agree that it is important that the levy is based on up-to-date evidence of affordable housing need. It is the intention that local plans, charging schedules and infrastructure delivery strategies are prepared together. However, during the transition period, this may not always be possible. That is why our preferred approach is to use regulations and guidance to set out how evidence-based documents, including evidence on different types of housing need, should be considered. I hope I have given reassurance to the Committee that the provisions in the Bill will enable levy rates to be set with proper regard to affordable housing need, and that the noble and learned Lord, Lord Etherton, will feel able not to press his amendment.

Amendments 334 and 334A have the commendable purpose of ensuring that the levy meets its aims of delivering at least as much affordable housing as the current system, if not more, or otherwise addressing locally identified need for affordable housing. The Bill allows regulations to make provision about matters to be considered by charging authorities when setting rates, including the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. This will ensure that affordable housing need is accounted for when rates are set but, if the Government are overly prescriptive about requirements, the development of an area could become unviable. That is because affordable housing need may exceed what can be captured through the levy. In such circumstances, rates would need to be set at such high levels that neither affordable housing nor market housing would come forward.

The Bill has been drafted carefully to enable local authorities to find the right balance when setting rates and capture as much value as they can while maintaining viability. As I have said, local authorities’ infrastructure levy charging schedules will be subject to public examination, meaning thorough scrutiny of how and why levy rates are set at a particular level. The infrastructure delivery strategy will also be subject to examination, alongside either a local authority’s charging schedule or its local plan. We envisage that the infrastructure delivery strategy will set out the proportion of levy payment that an authority will require to be delivered in kind as affordable housing. I hope that this provides the noble Baronesses, Lady Warwick and Lady Taylor, with sufficient reassurance not to press these amendments.

Amendments 340, 341, 344, 344A, 349 and 350 are all concerned with how local planning authorities should spend levy proceeds. With regard to Amendment 340, the infrastructure levy is an important tool to support sustainable development objectives at the local level. There is an existing requirement for local authorities, when exercising any function in relation to local plans, to do so with the objective of contributing to the achievement of sustainable development. This is set down in Section 39 of the Planning and Compulsory Purchase Act 2004 and will remain in the new plan-making system.

To create sustainable development and successful places, it is important that the infrastructure is appropriately planned for. Contributions from developers are a key tool in mitigating the impacts of new development, alongside wider government funding. The Bill provides a flexible framework to allow local authorities to decide which infrastructure projects they spend the proceeds on. When making such decisions, the Government expect local authorities to fulfil their functions by having regard to all their legal requirements in the round—for example, contributing to the achievement of sustainable development.

I turn to Amendments 341 and 344. As I hope that I have impressed on the Committee, we have designed the levy with the aim of delivering at least as much affordable housing as the current system of developer contributions, if not more. Should the levy generate more revenues than at present, local authorities would be able to choose to direct those additional revenues to meeting their local affordable housing need. Nevertheless, local authorities will need to balance this objective of affordable housing delivery with the levy’s other objectives, such as supporting the development of new roads and medical facilities. We think it is right that local authorities, which know their areas best, are best placed to make local decisions in balancing funding for matters such as affordable housing and other local infrastructure need. I hope noble Lords will therefore feel able not to press these amendments.

Levelling-up and Regeneration Bill

Debate between Lord Foster of Bath and Baroness Scott of Bybrook

Committee stage
Wednesday 3rd May 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I will be very brief. I speak only because of the words of the noble Lord, Lord Bellingham, just now. Like him, I am very keen to see, and as a Minister had some responsibility for, the improvement of high streets. The noble Lord is quite right that on a high street these changes could take place without the significant problem to local residents that he described might happen in a more residential area.

We are very supportive of the principle of Amendment 312, but I say very gently to the Minister that if, as I suspect, she is going to suggest that there is no need for this amendment, I would encourage her to remind herself of the earlier debate on the agent of change principle. That too was apparently not necessary. Frankly, it seems that one or the other will be necessary in the circumstances that the noble Lord, Lord Bellingham, described in a residential area. We need either a separate use classification or the agent of change principle to give local residents that protection.

[Baroness Scott of Bybrook (Con)]

Amendment 312, in the name of my noble friend Lord Northbrook, seeks to prevent the movement of premises being used as shops, banks, gyms, offices et cetera within (a) and (c) to (g) of class E to be used instead as cafés or restaurants in (b).

I take this opportunity to make clear to noble Lords that vibrant and diverse high streets and town centres are vital to communities, as places where local people shop, use services and spend their leisure time.

The Government introduced the commercial business and service use class in 2020 to support our high streets and town centres, enabling them to respond quickly to changes in consumer demands. This use class includes a wide range of uses commonly found on our high streets, such as shops, banks and offices, as well as services such as creches and health centres. Movement between uses within the class does not constitute development and therefore does not require planning permission. Thus, this class provides flexibility to move between such uses and allows for a mix of such uses to reflect changing retail and business models, and to avoid premises being left empty.

We believe that restaurants and cafés are an important part of our high streets and town centres. Such uses support high street vitality, attracting people to the high street to shop and spend their leisure time, and we would not want to limit them. My noble friend’s amendment seeks to restrict the flexibility of premises within the commercial, business and service use class to be used as cafés or restaurants. However, a permitted development right cannot be used in this way to limit movement within this use class. The legislative approach of this amendment is therefore flawed and we are unable to support it.

I turn next to Amendment 312F in the name of the noble Baroness, Lady Taylor of Stevenage, which seeks to require the Secretary of State to publish a review, within 12 months of the Bill achieving Royal Assent, of all permitted development rights. Permitted development rights are a national grant of planning permission that allow certain developments, including building works and changes of use, to be carried out without an application for planning permission having to be made. Permitted development rights have been a well-established part of the planning system for many years, supporting homeowners and businesses. In recent years, new permitted development rights have been used to support housing delivery. The rights are helping deliver much-needed additional new homes, including more than 94,000 homes in the seven years to March 2022.

In response to comments about the quality of some of the homes delivered, we commissioned research into the operation of the rights, published in July 2020. We subsequently legislated to ensure that all new homes delivered under permitted development must, as a minimum, meet the nationally described space standards and have access to adequate natural light in all habitable rooms. In addition, the current consultation on the infrastructure levy seeks views on the circumstances in which it may be appropriate to apply the infrastructure levy to permitted development.

We continue to keep permitted development rights under review, so this amendment is not necessary. It would also be impractical, as it would require a disproportionate review of 155 separate permitted development rights, all within the 12 months proposed. On these grounds, we will not be able to give this amendment our support.

Levelling-up and Regeneration Bill

Debate between Lord Foster of Bath and Baroness Scott of Bybrook

Committee stage
Thursday 20th April 2023 Lords Chamber

[Lord Foster of Bath (LD)]

I apologise for intervening at this late hour. On that point, since the Minister has promised she is going to write to people and has just said very clearly, on the record, that she shares the importance of economic development in rural areas, and given that I asked at Second Reading for evidence that the levelling up Bill had gone through the rural-proofing process, would she be kind enough to include in that letter details of how that process was carried out in relation to this Bill, because frankly, many of us think there is very little evidence of that?

[Baroness Scott of Bybrook (Con)]

I will certainly reflect on that question and see what we can do.

I thank the noble Lord, Lord Carrington, for his amendments, and I appreciate his concerns on a matter, which is close to his heart and to the heart of the noble Baroness opposite. While I support the intentions to lend further support to our rural economy, unfortunately I cannot accept this amendment, as it will not have the intended effect, and we believe it is unnecessary.

The permission in principle consent route is an alternative way of obtaining planning permission for certain housing-led development. When a proposed development is under consideration, it separates the matter of principle away from technical details. Our national planning policy framework strongly supports policies and decisions to promote sustainable development in rural areas. In particular, it states that to support a prosperous rural economy, local plans, neighbourhood plans and decisions should enable the development and diversification of agriculture and other land-based rural businesses.

Additionally, as set out in Section 58A of the Town and Country Planning Act, any economic development coming forward through permission in principle would have to be predominantly for housing development. Provision already exists to allow local planning authorities to grant permission in principle for economic development related to residential schemes within rural areas. Section 5A of the Town and Country Planning (Permission in Principle) Order 2017 also enables local planning authorities to grant permission in principle to any non-housing development if it is associated with residential development, and where the scale of the development and the use to which it may be put is specified.

I am aware that permission in principle is often used to test the principle of housing development within rural areas, rather than applicants going through the conventional planning application route, and these are assessed with our National Planning Policy in mind. It is a valuable tool in this respect, and I hope this provides reassurances to the noble Lord and the noble Baroness, and accordingly that she will withdraw his amendment on his behalf.

I turn now to Amendment 282, tabled by the noble Baroness, Lady Taylor of Stevenage, and put forward by the noble Baroness, Lady Hayman of Ullock, on the speeding up of the planning system. There are around 400,000 planning applications every year. The Government have heard many representations that the planning application process is too slow and inaccessible for some users—notably those without the expertise, such as everyday people. It therefore requires improvement and modernisation. The powers being brought forward in Clause 116 enable the Government to apply a more consistent, streamlined and digitally enabled approach to the way in which the applications are made, making it easier for everyday people to submit a planning application. This will also make planning data more accessible. My department is already working with local authorities to tackle the very issue that this amendment raises, working collaboratively with the local authorities through the Open Digital Planning project, which aims to increase efficiencies in the development management process through creating modern development management software. Local authorities using the software that we are trialling have seen an estimated 35% time saving in the pre-validation process, when an application is first submitted, and post-validation, when the process is to reach a decision.

Before enacting these powers, we will fully engage with the local planning authorities and the sector as a whole; given that one of the core aims of this power is to streamline the process, we will of course consider the impact on speed of decision-making. While I support the intention of this amendment, the Government are unable to support its inclusion and hope that the noble Baroness will not press it.

Lastly, government Amendments 260A and 260B provide for consequential amendments to Clause 102 to make consistent the legislation with respect to an application being made directly to the Secretary of State, in relation to new Section 73B and Section 73 of the Town and Country Planning Act 1990.

Housing: Conditions in Rented Sector

Debate between Lord Foster of Bath and Baroness Scott of Bybrook

Thursday 16th March 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I thank the right reverend Prelate. If he looks at the LUR Bill, he will see that we are dealing with this exact problem at the moment. It will probably be debated next week in this Chamber and I look forward to being able to tell him further about what we are going to do.

[Lord Foster of Bath (LD)]

My Lords—

Levelling-up and Regeneration Bill

Debate between Lord Foster of Bath and Baroness Scott of Bybrook

Committee stage
Wednesday 22nd February 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I do not know, but the council is already in train and working. On the fact that it has not come to Parliament, I will ask what the remit has been for the past year. It may have been a remit just to get together on some early work, but I will get an answer to my noble friend on that.

[Lord Foster of Bath (LD)]

I am sorry to interrupt because I know that the Minister wants to get on, but can she tell us at least whether the advisory board has expressed any view on the levelling-up Bill before us, and whether she will make that public?

[Baroness Scott of Bybrook (Con)]

I do not know whether it has any views on it at the moment, but I will ask that question.

Alongside this, my department has also established a new deep-dive team, to take a new place-based approach to policy-making. This is quite important. This team gets to know specific places. To date, these places have included Blackpool and Grimsby. It combines the granular data that we are beginning to put together with local knowledge, to identify a set of policy interventions to make a noticeable difference to the people living there.

The noble Baronesses, Lady Taylor of Stevenage and Lady Young of Old Scone, brought up individuals. We go down to council wards, but there are people. We are talking about people. The levelling-up White Paper is a plan for everyone. The focus is on the left-behind places, but the ultimate goal of levelling-up policies is to improve the living standards and quality of life of the people living in those places. This means that where individuals with certain protected characteristics are disproportionately affected, they will benefit from the whole levelling-up programme policies and systems change. For example, some ethnic minority groups have, on average, poorer health outcomes. They are more likely to be living in non-decent homes. By aiming to reduce these disparities across the UK and in places where they are most stark, levelling up will have a positive impact on the places and, as importantly, on the people.

There were a number of questions or comments on the levelling-up fund, which I would suggest are probably for the sixth group of amendments. However, I will answer a couple of them; they were all more or less the same views. The levelling-up fund index identifies those places in greatest need, as we have heard, of this type of investment. In this round 2, 66% of funding has gone to category 1. Those are the places of greatest need. Over rounds 1 and 2, 69% of funding has gone to category 1. I can also say that in investment per head of population, the highest investment went to Wales, followed by the north-west and then the north-east. The money is going to the right places but that is just as an aside because this will come up again in group six.

This approach, set out in the Bill, sets a clear, uncluttered and long-lasting framework for measuring the progress of levelling-up missions. I hope that this provides the noble Lord sufficient assurance to withdraw his amendment.