Levelling-up and Regeneration Bill

Debate between Lord Foster of Bath and Lord Bishop of St Edmundsbury and Ipswich

Committee stage
Wednesday 3rd May 2023 Lords Chamber

[The Lord Bishop of St Edmundsbury and Ipswich]

My Lords, I will speak—briefly again, I hope—in support of Amendments 326, 327 and 334 in the name of the noble Baroness, Lady Warwick, and Amendments 344 and 350 in the name of the noble Lord, Lord Best, which have also been supported by my right reverend colleague the Bishop of Chelmsford.

The Church of England is committed—as noble Lords have just heard—to working to increase the provision of social housing, and these amendments would greatly improve the infrastructure levy to ensure that it is working to generate a good supply of truly affordable housing.

As we have heard, in its current form the infrastructure levy risks a serious reduction in the delivery of affordable housing and homes for social rent through the planning system. Despite this concerning impact, detail on how the proposed levy would work remains very thin. There are a number of fundamental issues that need to be addressed. These amendments would be a step in the right direction to doing so.

Amendment 326 introduces a mechanism for the delivery of onsite affordable housing and an in-kind levy payment, which would allow local authorities to ensure that their local housing needs are met. Amendment 327 excepts developments that contain 100% affordable housing from liability to pay the infrastructure levy, which would allow for the provision of affordable housing to go unimpeded by any diversion of funds, and also incentivise developers to invest in affordable housing plans.

Amendments 344 and 350 in the name of the noble Lord, Lord Best, would introduce critical improvements to the infrastructure levy. Tying the application of the infrastructure levy to the level of affordable housing requirement identified in the local development plan, as Amendment 344 would do, is a necessary step to ensure that the levy truly addresses local housing needs. Linked to this, Amendment 350 would ensure that at least 75% of the levy would be used to meet such local affordable housing needs as identified by local development plans. As we have heard, there are currently 4.2 million people in need of social housing in England. It is crucial that the infrastructure levy and the accompanying changes to the planning system improve the delivery of new affordable housing.

[Lord Foster of Bath (LD)]

My Lords, I begin by congratulating the noble Baroness, Lady Taylor, on her tour de force in going through all these amendments. I have no doubt that the Minister will attempt to do exactly the same at some future point as she goes through all our deliberations, and I have no intention of attempting to match either of them. I wish merely to say how important Amendment 322 in the name of the noble Baroness, Lady Armstrong, and Amendment 323 in the names of the noble Baroness, Lady Hayman, and my noble friend Lord Shipley are, and how supportive we are of them. They seek to define “affordable housing” for the purposes of the infrastructure levy as social rent. We are also very supportive of the amendment so ably spoken to by the noble Baroness, Lady Warwick—as is illustrated by the fact that my noble friend Lady Thornhill has added her name to it—and the whole issue of affordable housing, which we have touched on so many times. It is great that she has spoken to her amendment, and we are fully supportive of it.

I raise two amendments solely to hear the Minister’s response to them, because that is what we are interested in hearing. On behalf of the noble Lord, Lord Carrington, and with his permission, I will speak to Amendment 330, which, in effect, proposes the removal of agricultural buildings from the infrastructure levy. The infrastructure levy now being proposed is not exactly but in part a replacement for the community infrastructure levy. I am sure that many noble Lords will be aware that the application of the community infrastructure levy to agricultural property was somewhat hit and miss. Frankly, nobody knew whether they were in or out; some councils did, some did not, and so on. The Minister is nodding in agreement. The problem is that we do not have the proposed secondary legislation, so we have no idea quite how agricultural buildings will apply under the proposed infrastructure levy. Of course, we recognise that many of them—such as livestock buildings, grain storages, slurry tanks and farm reservoirs—are quite large but have very little structure; however, they may be very heavily hit. Given that your Lordships have recently debated the importance of farmers and the difficult times they are going through at present, it may be a good idea to put on the record a clear determination that such properties be excluded from the infrastructure levy. That is what the noble Lord, Lord Carrington, is proposing.

The only other amendment I want to raise is Amendment 356 in the names of my noble friends Lord Teverson and Lady Bakewell. It suggests that it should be possible to retain within the new system Section 106 agreements in certain circumstances. When looking at the whole area of biodiversity-type measures, you recognise that the great advantage of Section 106 agreements is that, unlike the infrastructure levy proposals, they are directly tied to the actual land where the development takes place, rather than being a payment for improvements that may happen somewhere in the neighbourhood. The second advantage is that they are not a one-off payment, as the infrastructure levy is proposed to be; they can be payments made over a long period.

Therefore, if you are seeking to develop some sort of wildflower arrangement, some meadowland or a biodiversity scheme of one sort or another, it is recognised that those will take a very long time to develop and they are on a particular site. The benefit of this amendment is that the Section 106 agreement can be kept because it is tied directly to the specific land and can be funded over a long period to ensure that the development is successful. On behalf of my noble friend Lord Teverson, I make the case for Amendment 356.