Levelling-up and Regeneration Bill

Lord Greenhalgh Excerpts

Wednesday 3rd May 2023 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I rise to speak to Amendments 324, 329, 342, 346, 347, 351, 352 and 360 in my name. I have tabled them on behalf of the emergency services of England, including the following organisations: the Association of Ambulance Chief Executives, the Association of Police and Crime Commissioners, the National Fire Chiefs Council, the National Police Chiefs’ Council, the National Police Estates Group and the National Fire Estates Group. I should declare my interest as a vice-president of the Local Government Association.

As extraordinary as it sounds, the English planning system has never recognised the emergency services as critical infrastructure providers anywhere in primary legislation, national planning policy or statutory guidance. The result of this is that, while new development such as housing estates, bars, restaurants, nightclubs, theatres, warehouses, factories or even power stations place additional demands on the emergency services that stretch existing resources, it is rare for mitigation in the form of developer contributions from Section 106 and the community infrastructure levy to be put in place to alleviate this.

The failure to recognise the emergency services in legislation is a colossal blind spot in the planning system, which has had dire practical results when the emergency services seek to obtain funding for the essential ambulance, fire and rescue, and police infrastructure needed to support new development of all kinds. This is demonstrated by the following figures. The Section 106 system started in 1990. In the 33 years since it has been operating the emergency services of England have been awarded a combined total of £25.4 million, which is a paltry amount when DLUHC’s own figures show that other infrastructure types such as education receive hundreds of millions of pounds per year from the Section 106 system.

There are 10 ambulance trusts in England, but none has ever received a Section 106 contribution at all. In England, there are 39 territorial police forces, but of this total only 12 have ever been awarded a Section 106 contribution since the system started. Of this total, only four of the 12 forces still receive such contributions on a regular basis. Of the 48 fire and rescue services in England, only five have ever been awarded a Section 106 contribution and none has been a regular recipient.

The situation with respect to the community infra- structure levy, or CIL, is even worse than with respect to the Section 106 system. Since it started nearly 13 years ago, the emergency services in England have been awarded a combined total of only £1.5 million—a terrible contrast with the fact that the CIL system in England raises hundreds of millions of pounds for other infrastructure types every year.

The Government have accepted that these problems exist and that action needs to be taken to solve them, so that the emergency services have an equal seat with other infrastructure providers at the negotiating table. I am grateful for a letter to me on 16 March from Housing Minister Rachel Maclean, which points to the reference to the emergency services in proposed new Clause 204N(3) in Schedule 11 to the Bill, meaning that they are referenced for the new proposed infra- structure levy. The Minister has committed to include emergency service providers as a required consultee for the infrastructure delivery strategy through regulations. The Minister has also committed to reviewing the NPPF as part of a wholesale review and consultation once the Bill has received Royal Assent, to consider whether there can be explicit references made to the emergency services, putting them on an equal footing with other forms of infrastructure such as education. Finally, the Minister has committed to reviewing planning practice guidance to add reference to the emergency services with regard to the use of developer contributions.

The commitments from the Government are very welcome, and it has been helpful to have meetings with my noble friend the Minister, but these measures are not enough, for a number of reasons. The Government have confirmed that the new infrastructure levy will not be introduced fully for 10 years—that is, not until 2033. That means that Section 106 agreements and CIL will continue as the main sources of developer contributions for another decade, and possibly much longer in England. The definition in proposed new Clause 204N(3) refers only to the infrastructure levy. It will not apply to Section 106 and CIL. The new infrastructure levy will be a complex mechanism in its establishment, operation and application, and yet the Bill contains only a single reference that the emergency services may benefit from it, with no other provisions. The experience with CIL of the emergency services demonstrates beyond reasonable doubt that they would receive little or nothing from the new infrastructure levy in practice.

Even more seriously, without further amendments to the Bill, there could well be the inadvertent consequence that the current provision will be interpreted by the vast majority of local planning authorities and developers alike as confirming that the Government do not intend for the emergency services to access money raised through Section 106 and CIL. This would close what little access the emergency services have to these two systems, leading to the already paltry amounts being awarded being reduced to zero. That is why the chairs of the emergency services wrote to the Housing Minister on 31 March 2023, offering a way forward—to withdraw six of our eight amendments, provided that two key amendments to the Bill be agreed alongside the measures proposed by the Minister to address their concerns.

The first of those is Amendment 324, to provide a fuller definition of emergency and rescue services. This definition is needed in the absence of one for the emergency and rescue services within the primary legislation governing the planning system. The second is a modified version of Amendment 360, which clarifies that emergency services can receive money from Section 106 agreements and CIL while ensuring that local authorities have primacy of decision-making. This offer was made in a constructive spirit but, so far, we have had no response from the Minister. It would be helpful if my noble friend could provide an update.

We need to find a solution to deal with this issue. If we do not, the existing situation will continue and the thin blue, red and yellow lines will be reduced ever further, as the ambulance, fire and rescue, and police services spread themselves ever more thinly over a greater area to try to cover new developments of all kinds.

[The Lord Bishop of Exeter]

My Lords, I rise in support Amendments 324, 329, 342, 346, 347, 351, 352 and 360 in the name of the noble Lord, Lord Greenhalgh, and to which I have added my name. They concern planning reform and the emergency services.

A robust and effective planning process is essential for the flourishing of our communities. A key aspect of this is to ensure the adequate provision of emergency services. I welcome the fact that the Bill has included emergency services in the definition of infrastructure under Schedule 11, but, historically, this has not always been the case. It remains the fact that local authorities are not obliged to take into account the views and concerns of the emergency services.

Those living in new developments such as in Plymouth and Exeter, my own diocese, rightly expect to be provided with the same level of service and protection afforded to all citizens. The increased demands on the emergency services posed by new developments require additional funding. In this way, the emergency services are no different from any other infrastructure provider. However, the lack of recognition in legislation and national planning policy has made it extremely hard for emergency services to access funding from the infrastructure levy, Section 106 money and community infrastructure levy systems. The obvious result is that the services provided are diluted.

The Bill in its current form does not mitigate these problems and the thrust of these amendments seeks to address the historic disfranchisement of the emergency services in our planning processes. I am sure that all noble Lords will join me in recognising the vital contribution that those who work in the emergency services make to our common life. It should therefore be incumbent upon us to ensure that in the planning and formation of new developments, the emergency services have an equal seat at the planning table. I gladly support this.

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However, I am content to put on record that the department will happily engage with my noble friend Lord Greenhalgh and representatives of the emergency services to explore how revisions to existing national policy and statutory guidance could address the concerns he raised. I understand that the Housing Minister has already written to him to this effect. While it is not the aim of the Bill to introduce changes to the existing system, I appreciate that it is important that payments under Section 106 and the CIL be made at the appropriate time and that local authorities have the tools to negotiate the timing of infrastructure delivery at the right point. We keep the operation of the existing system under continuous review and my officials will continue to engage with the sector to see if anything else may be needed.

[Lord Greenhalgh (Con)]

I really appreciate that response, but the emergency services replied to the letter from the Housing Minister with a way forward. They are very concerned that the existing community infrastructure levy and Section 106 system is not working. Although, as the Minister pointed out, emergency services are mentioned in the schedule, the principal concern is how the historic system works, as it will take up to a decade for the new system to come into play. Will the Minister respond to the latest representations, so that we can agree a way forward?

[Baroness Scott of Bybrook (Con)]

I completely understand my noble friend’s issue and, as I have said, we are very happy to have a meeting to look at what can be done in the existing system. We know what is going on with the proposed system, but I understand the issues and we will meet further on this with the emergency services.

Turning to Amendments 331 and 346, I thank the noble Lord, Lord Shipley, for speaking on behalf of the noble Baroness, Lady Pinnock, and my noble friend Lord Greenhalgh for tabling these amendments. I agree that ensuring that development is accompanied by the timely provision of the right infrastructure is important to local communities where development is taking place. However, requiring a full payment of the levy up front would impact the viability of development and result in fewer homes, and therefore fewer affordable homes, being delivered. Large developments can be built out over periods of a decade or more, and it is not necessary for all mitigating infrastructure to be delivered in the early stages of that development.