Neighbourhood Planning Bill

Lord Greaves Excerpts

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

[Lord Shipley (LD)]

My Lords, I should remind the Committee at the outset that I am a vice-president of the Local Government Association. I want briefly to express my support for the objectives set out by the noble Baroness, Lady Cumberlege, in her amendment, which provides a foundation for and gives a clear sense of direction to the Bill. The crucial word of course is “duty” in that the amendment seeks to place in the Bill a duty on the Secretary of State to undertake certain actions, one of which is to uphold neighbourhood development plans and not simply to think that such a plan can actually be overwritten because a planning inspector or the local planning authority suddenly feels that the neighbourhood plan is out of date or may no longer apply. This is important because if the duty does not exist, it means that local people cannot have confidence in the fact that the neighbourhood plan they have produced will actually stand the test of time. The second duty on the Secretary of State would be to ensure that local planning authorities had sufficient resources to enable them to own, implement and defend—a very important word—neighbourhood development plans.

This amendment is important and I hope that discussions may be held prior to the Report stage at which the Minister might give us some indication of what the Government are prepared to do to give greater force than is provided by the Bill to the development of neighbourhood plans which can stand the test of time. One problem we have had to date is that local planning authorities have not been as supportive as perhaps they ought to be, and as I said at Second Reading, there has been a problem about the creation of a five-year land supply. A neighbourhood plan, where it has been adopted in advance of the local plan being agreed, then finds itself under pressure which may, in the view of the Secretary of State, lead to it having to be revised.

The noble Baroness, Lady Cumberlege, has said many wise things, one of which was to express her concern about poor-quality development in defiance of good planning principles. This Bill is about building communities, not just building houses. The noble Baroness reminded us of how the roles are confused between the Secretary of State, and through the Secretary of State the Planning Inspectorate, the local planning authority and the neighbourhood plan. This needs to be sorted out and I hope very much that the Minister will be agreeable to trying to find a way to do so that gives even greater weight to the statutory importance of neighbourhood plans.

[Lord Greaves (LD)]

My Lords, I should declare my interests again as we begin a new stage of the Bill. I am the deputy leader of Pendle Borough Council and a member of a development control committee. I am also a member of the neighbourhood planning steering group for the parish of Trawden Forest, which may provide an interesting view of the planning situation from different sides, not the least of which is discussing a new piece of legislation about it today.

Neighbourhood planning is new, which I suppose is why the Government are feeling their way along with everybody else and why we seem to get an annual Bill to fettle the legislation a little. Although some 1,800 projects have been started, and some finished, around the country, it is still very much a minority pursuit throughout England—that is something I want to return to on another amendment.

It seems more and more important for local planning authorities and neighbourhood planning bodies, whether forums or parishes, to work closely together and have good working relationships. It is becoming clear that in some places where difficulties are occurring in getting neighbourhood planning off the ground or carrying it out it is because those relationships do not exist. From the planning authority point of view—the district, the borough, the unitary authority or whatever it is—there is not an openness and a willingness to change the way they work and to accommodate the whole idea of neighbourhood planning, which can make things a great deal more complicated.

[The Deputy Chairman of Committees]

My Lords, there is a Division in the Chamber. This Committee stands adjourned for 10 minutes.

--- Later in debate ---

[Lord Greaves]

My Lords, this issue is complicated. I think I was referring to the fact that for local authority planning departments the system is much more complicated if they have a series of neighbourhood plans taking place after their local plan has been dealt with, at the same time as it is being dealt with, or whatever. I think we have 18 parishes in Pendle—we are completely “parished”—three of which have their neighbourhood plans under way and at least two more which are making a serious start on them. This process requires a different kind of relationship between a local planning department, local planning committees and people on the ground in neighbourhoods. The amendment would be extremely useful in getting things going. It refers to the, “provision of additional housing”. I am not clear whether this is additional to that set out in a local plan or is the additional housing required by a local plan. Either way, changing housing needs are at the core of a lot of the problems and difficulties that have arisen, and of this relationship. In our area the district council is just starting the second half of the local plan, which concerns site allocations.

Those of us working on neighbourhood plans are fortunate enough to work with the local authority and, we hope, align the two documents. The local authority has set out the number of houses it expects to be given planning permission in each parish over the period of the local plan. That is extremely helpful because it means we know how many houses we have to plan for as a minimum. The difficulty comes not with the housing allocations in the plan but with the five-year supply. Whereas the plans themselves appear to give certainty, the five-year supply suddenly does not give certainty as it is a moving dynamic that goes on from year to year and can suddenly result in more houses being needed than people are planning for, as we have seen following some appeals.

The five-year supply is worked out in technical, complicated ways. It is very difficult for people to understand how it is worked out, how it is implemented and how it changes. If they have been working on the neighbourhood plan, or indeed an ordinary local plan, it is difficult for them to understand why things suddenly change. The Government need to pull back from the whole concept of five-year supply. It is not necessary, complicates the whole process and renders how the system works opaque for most people—certainly most people who may be interested in planning applications or putting neighbourhood plans together. If it is in a plan, and if it is set out that those houses are needed over a certain period, that gives certainty and clarity—so long as that is stuck to. Perhaps the planning could be revised, maybe after five or 10 years, or whatever. Nevertheless, it gives clarity. This is an important issue. The five-year supply is not appropriate for producing good neighbourhood planning.

The only other thing I want to pick up is the suggestion in proposed new subsection (2) to enable local planning authorities to own neighbourhood development plans. Again, it is very important that once a neighbourhood plan has been adopted the local planning authority thinks it owns it, and not just the neighbourhood that put it together. That again comes back to the relationship between the two and the need to change the culture and attitudes of planners. These neighbourhood plans are not just a nuisance, an awkward complication to be tagged on to the local plan; they are a fundamental part of the overall development plan. Talking to people round the country, that change in culture has not yet occurred in quite a few local planning authorities.

--- Later in debate ---

[Lord Greaves]

My Lords, this is the important, high-level stuff. I raise what might be called the low-level stuff about the nature of the relationship between the local planning authority and its staff, its members and the neighbourhood planners. Does the Minister agree with my assessment that in some places it works very well and in others there is quite a lot of tension, difficulties and resistance on the part of the local planning authority? Would he comment on what might be done, without being too heavy-handed, to get local planning authorities to change their attitude where necessary?

While I am on my feet, the amendment refers to resources. As I understand it, the resources that the Government make available to a neighbourhood planning group, and whether it is a parish or forum, as the Minister referred to, is the same whatever the size of the neighbourhood. The neighbourhood may be quite a small village or a town such as Colne, which I know, which is embarking on neighbourhood planning. It has about 18,000 people and is quite a big town. People in small places are saying that the available grant does not pay for the process, so funds have to be found locally by a parish council or in other ways. Clearly, if my information is correct, the grant available in bigger places will not begin to cover this process, given that everything that the Government set out must be done for a neighbourhood plan costs money, as consultants may have to be brought in and so on. Will the Government look at that to make neighbourhood planning more financially viable than it is at present?

[Lord Bourne of Aberystwyth]

Some of these points go well beyond this amendment. Nevertheless, I accept that they are important. The noble Lord gave examples of how this process works at the coalface. I suspect that he is much closer to the coalface than I am in that regard. We need to be a little careful about setting up a system that stresses the importance of localism and these things being done locally, and then have central government stepping in and saying, “Do it this way”. As I say, there are growing pains. We may indicate in guidance how better relationships can be achieved. That is what I seek to do through the dialogue I am offering.

On the neighbourhood groups that may benefit from money for the neighbourhood plan and for modifications, I think there is money available if a case is made for an extra sum. If I am wrong on that, I will write to noble Lords. However, if a case can be made, I think there is access to additional funding. As I have indicated, the White Paper will say more about funding and the financial side more generally.

--- Later in debate ---

[Baroness Finn]

I concede ignorance but my understanding is that a number of planning applications have been called in. Perhaps that can be clarified. Basically, there has been significant movement on this and taken together all the current measures give sufficient protection to neighbourhood plans. The amendment proposed is simply not required.

[Lord Greaves]

I have a question for the Minister about Amendment 6, which he spoke to some time ago, while I also support my noble friend with her more ambitious amendment. Amendment 6 would amend paragraph 8 of Schedule 1 to the Town and Country Planning Act, and is about notifying parish councils and so on of planning applications. The inclusion of neighbourhood forums here is extremely welcome, giving them the right to have this. However, parish and town councils already have this right. Reading the amendment, I cannot quite understand what would be different in practice for parish councils from the rights they already have to be told about planning applications when they come in and to have their views on them taken into account—in other words, to be consulted. What is the difference? Why is all this extra wording needed for parish councils over and above what is there already?

[Lord Shipley]

My Lords, I found this a very helpful debate and conclude that if not now at some point soon the Minister will have to define words. The noble Baroness, Lady Cumberlege, drew our attention to an important issue around the definition of the word “modification”. When I read the Bill for the first time, I assumed that it would be really very minor in practice. However, it may not be and I am not sure that we can wait until a month after the coming into force of Part 1 for that word to be defined. It is material to what is in the Bill.

Clause 3(2) states:

“After subsection (4) insert … A local planning authority may at any time by order modify a neighbourhood development order they have made if they consider that the modification does not materially affect any planning permission granted by the order”.


The word “materially” starts to become very important. What is the difference between affecting and materially affecting a planning permission? We need to get this sorted out so that we understand it, otherwise we will end up with a modification which I thought was minor actually having the potential to be much more substantial, as the noble Baroness, Lady Cumberlege, pointed out. In addition, I should like to be clearer about what a material effect would be on a planning permission granted by the order. I want to understand that before we reach the Report stage. However, the debate as a whole has been extremely useful.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, first, I will deal—in no particular order—with some of the points that were raised in relation to the government amendments. In relation to a point raised by the noble Lord, Lord Greaves, about Amendment 6, previously it has been open to neighbourhood forums and neighbourhood groups to ask for notification of planning applications. Amendment 6 makes it automatic. That is the difference: it will happen automatically; there is no need to ask. The concern has been that previously some things may have slipped through the net so that is the reason for that.

[Lord Greaves]

In relation to parishes, as opposed to forums, this is just a lot more words but it is no different from the present system.

[Lord Bourne of Aberystwyth]

It will be automatic notification. That is the key point.

--- Later in debate ---

[Baroness Cumberlege]

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

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

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

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

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

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

[Lord Greaves]

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

[Baroness Scott of Needham Market]

In the debate on the last amendment, I raised the question of the community infrastructure levy and Section 106 because that amendment was more about what the planning authorities can get. This amendment is about what the neighbourhood planning areas will get. I quite understand that the Minister will want to wrap up his responses, so there is the question that I raised on the earlier amendment about the impact of having to be directly attributable on the ability to access this money. I am also told there is a problem in that many developers insist on having specifically costed projects before they will sign an agreement for Section 106 or CIL. That is a problem if this is the first of a number of sequential developments. A local area may very well not have a detailed specific cost, but they are, in effect, building up a pot. In my local area we did that for a new relief road, though it took five years and something like four phases of development to reach it. Specifically, to the point of neighbourhood planning areas, I have also been told that some planning authorities are insisting that the neighbourhood planning areas have to have a general power of competence in order to be able to spend CIL money.

The points I have raised have all been raised with me by the National Association of Local Councils. Perhaps, rather than go into too much detail in his reply, it would be helpful if the Minister could undertake to meet that body again to go through those concerns and make sure that everybody is on the same page. It could then disseminate the information using its networks.

--- Later in debate ---

[Lord Beecham]

My Lords, I am grateful to the Minister for his constructive response. I was rather taken with his notion that the Government have a rigorous policy towards meeting new burdens. I would have thought “rigor mortis” might be a more appropriate description of their performance in that area but he is clearly well intentioned and we hope to see some evidence of that as the legislation goes forward.

Significantly, the figures he quoted on the community infrastructure levy were quite alarming in many ways. From what he said, authorities are not necessarily taking full advantage of what is currently available. Has the Minister considered talking to the Local Government Association about that? This matter should be taken forward in that way. I will certainly ensure that the points he made today are heard. I hope that process can be tackled. It is for the noble Baroness to comment more specifically on that subject since she raised it but there seems to be an issue here. One way or another, the system does not seem to be working adequately, yet apparently the goodwill is there on the government side to ensure it does. Perhaps after the event we could look at ways to promote the use of what should be a helpful instrument for both local authorities and the communities they represent.

[Lord Greaves]

We have had this discussion on previous Bills. In my authority, for example, it is not through lack of willingness or knowledge of CIL that we do not impose it. It is simply that if we impose it, it will make particular brownfield sites even less viable. On brownfield sites, we have to subsidise housing development to get it going and apply a kind of negative CIL, paid for by the council. That is the only way to do it. There is a mismatch here between different parts of the country.

[Lord Beecham]

I am not suggesting that all local authorities are able or would wish to impose the levy, for the very reasons that the noble Lord has just given. The question is whether there are authorities that could do so without the kind of impact the noble Lord described on his authority but have not yet taken advantage of it. It is pointless to speculate on the nature of those authorities but I suspect that some district councils, for example, might not have the officer resource to deal with what ought to be something that would benefit them. That matter should be looked at by the Government and the LGA together. I beg leave to withdraw the amendment.