Levelling-up and Regeneration Bill

Debate between Lord Lansley and Baroness Taylor of Stevenage

Report stage
Wednesday 6th September 2023 Lords Chamber

[Lord Lansley (Con)]

My Lords, I am grateful to my noble friend Lord Young and the noble Lord, Lord Best —he is also my noble friend in this context—for introducing Amendment 195 so very well.

I want to add my threepennyworth in relation to not only Amendment 195 but Amendment 196; one might think of them as a package. They would require local planning authorities to meet or exceed the Government’s housing target—in so far as the Government have a housing target; we have debated the figure of 300,000, which is what the Government tell us their target is, but it could of course be different if they chose a different target because of their assessment of the demographic and other requirements—and to do this by reference to the standard method. I emphasise that this means whatever standard method is applicable at the time. Personally, I do not regard our current standard method as fit for purpose. There will need to be change. I have said before—let me repeat it briefly—that the relationship between the standard method process and the prospective increases in employment in an area should assume a greater weight in relation to the objectively assessed housing need.

These amendments are a package. Remember, in addition to Amendment 195, which we are debating first, Amendment 196 would require local planning authorities to have regard to the housing target or a standard method respectively. Of course, if Amendment 195 were to go to the Commons, Amendment 196 would go with it as a consequential amendment. The House of Commons would then have an opportunity to consider the questions of whether local planning authorities should have regard to the Government’s target and standard method—that is a bit of a no-brainer; of course they should—and of whether, in addition, they should be required to meet or exceed the resulting figure of objectively assessed housing need for an area. This is the debate that the House of Commons needs to have.

There are two groups of people who should vote for Amendments 195 and 196. There are those who just agree with the policy; I am among them. My noble friends have well set out the policy objective, which fundamentally comes down to this: if a Government have a target, they need to have a mechanism for delivering it. I have had these conversations, for which I am grateful, with the Housing Minister, my noble friend and the Secretary of State. Unfortunately, the Secretary of State in particular—I love him dearly—is trying to run with the hare and hunt with the hounds. He is trying to give local planning authorities, in the minds of a minority of Conservative Members in the other place—I emphasise that it is not a majority but a minority—the freedom to have a different method and to think, “It’s a starting point but we can go south from this instead of north”. It is an opportunity for them to say, “We’ve got green belt, areas of natural beauty, sites of special scientific interest and sensitive areas. We don’t have to have the houses; they can all be somewhere else”.

In some cases, that will be true. Let me pick a place at random. If you were in Mid Bedfordshire and you knew that Milton Keynes, Bedford and Luton wanted development—and, indeed, Tempsford, which is on the new east-west rail link and faces the possibility of taking on a large new settlement of 20,000 homes—you might well conclude that, in Mid Bedfordshire, taking account of the development in all the neighbouring areas, you do not need much development. That would be perfectly reasonable. Actually, the standard method and the way in which the guidance is constructed would allow that to happen because that is precisely what joint spatial development strategies should deliver in an area such as Bedfordshire.

As I say, my right honourable friend the Secretary of State wants those who feel that they have relaxed all these requirements to feel comfortable with that, yet he wants to maintain his target. When challenged, he says, “Well, there’s still an objectively assessed housing need and, if people do not meet it and do not show that they are going to meet that housing requirement, their plans will not be sound”. I have to say, this is not the way in which to conduct the planning system, whereby local planning authorities produce plans and inspectors throw them out. That way lies madness. What we need is for local planning authorities to have the kind of guidance that enables them to produce in the first instance sound plans that are the basis on which local people can rely. That is what we are aiming for: a plan-led system. However, what the Government are moving towards is not a locally plan-led system. In my view, we need to change this.

That is the first set of people who should vote for this amendment, in this case because it is the right the policy. There is a second group of people for whom there is another, different argument. It goes, “How is this supposed to work?” This Bill was in the other place last year. It completed its Third Reading on 13 December. As far as I can tell, there was effectively no substantive debate on the provisions in this Bill relating to the housing target and standard method. Nine days after the Bill completed its passage through the other place, the Government published their consultation draft of the National Planning Policy Framework. In it, they relaxed the housing delivery test; they made the housing targets and standard method an advisory starting point, in effect; and they allowed local planning authorities to have an alternative approach.

As my noble friend Lord Young demonstrated so clearly, all of that added up to local planning authorities thinking that they had been let off. However, none of that was in the Bill. It was not debated by the House. It was not voted on by the House of Commons in any fashion. Today, if we do not send Amendments 195 and 196 to the other place, no such debate will take place in the House of Commons. The issue will go through by default. I agree with my noble friend: the world has moved on and sentiment has changed. He used to be a Chief Whip; I used to run national election campaigns. I used to look carefully at the salience of issues. The salience of housing as an issue has risen and continues to rise. I must advise my Front Bench that the salience of housing as an issue is rising not because we are building too many houses but because we are building too few. The Government may argue, “Well, they’re just in the wrong place”. There are ways of dealing with that but we do need more, which is what the standard method is intended to help us achieve.

We are having this debate today because these amendments are here on Report. If we do not send them down to the other place, the debate will not take place in the Commons. I know that there are colleagues on our Benches in another place who want to have this debate. They think that the Bill needs to show what Parliament thinks about housing targets—the standard method—and how an objectively assessed housing need should be established, and by whom. We need to give them that opportunity. I encourage noble Lords, in looking at these amendments, to realise that this is about not just the policy but the question of whether the Commons should have a chance to look at this matter. I do not mean making them think again, which is our conventional constitutional job; in this case, I mean them looking at this issue for the first time. If we do not send these amendments back, they will not even look at it a first time. We need to give them that opportunity.

I hope that noble Lords will support Amendment 195 on that basis.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords who have spoken so eloquently on this subject already. Amendment 200, in the name of my noble friend Lady Hayman, recognises the need to reinstate the provision for housing targets through the NPPF and associated guidance, and through the housing delivery test, which, I agree with noble Lords who have spoken already, is incredibly important. Similarly, Amendment 195, in the name of the noble Lords, Lord Lansley, Lord Young and Lord Best, and my noble friend Lady Hayman, and Amendment 196, in the names of noble Lords, Lord Lansley and Lord Young, see the essential part that local plans have to play in the delivery of housing need. It is, as the noble Lord, Lord Young, said—rightly, in my view—one of the most important amendments to the Bill that we have discussed on Report.

The much-respected organisation Shelter reports that there are 1.4 million fewer households in social housing than there were in 1980. Combined with excessive house prices making homes unaffordable, demand has been shunted into the private rental sector, where supply has been too slow to meet needs. That means above-inflation increases in rents.

On the affordable homes programme, the National Audit Office reports that there is a 32,000 shortfall in the Government’s original targets for building affordable homes. It goes on to say that there is a high risk of failing to meet targets on supported homes and homes in rural areas. Progress will be further confounded by double-digit inflation, soaring costs of materials and supply disruption, yet the Government seem to have no clue how to mitigate those factors, and in those circumstances the decision to scrap housing targets last December seems even more bizarre.

The National Audit Office is not the only one with concerns about the delivery of the programme. In December last year, the Public Accounts Committee outlined that DLUHC

“does not seem to have a grasp on the considerable risks to achieving even this lower number of homes, including construction costs inflation running at 15-30% in and around London”,

although that is not far off what it is in the rest of the country.

We had extensive debates about the housing crisis during Committee on this Bill, but there was nothing in the Minister's responses to reassure us that the vague promises to deliver 300,000 homes a year by the mid-2020s would feed through into the planning process—points made very clearly by noble Lords who have already spoken. I do not need to point out to your Lordships’ House that we are just 18 months away from that deadline and the target has never been met. It is being missed by almost 100,000 homes a year, and more in some years. If they are not in the planning process, what chance is there of them being delivered? According to one estimate commissioned by the National Housing Federation and Crisis from Heriot-Watt University, the actual number needed is around 340,000 new homes in England each year, of which 145,000 should be affordable.

Let us consider the latest figures from the National House Building Council. The number of new homes registered in quarter 2 in 2023 was 42% down on 2022. The number of new homes registered in the private sector in quarter 2 in 2023 was 51% down on 2022. The number of new homes registered in the rental and affordable sector was down 14% in quarter 2 2023—declines across most regions compared to the same quarter last year, with the north-west experiencing the sharpest decline of 67%, followed by the east of England at 56% and the West Midlands at 54%. Only London and Wales bucked this trend.

The consequences of not delivering the right number of homes of the right tenures that people actually need are devastating. Those of us who are councillors or have been councillors all know that our inboxes, surgeries and voicemails are full of families with horrible experiences of overcrowding, temporary and emergency housing, private rented homes that are too expensive for family budgets and insecure resulting in constant moves, more young people having to live with their parents for longer, impaired labour mobility, which the noble Lord, Lord Lansley, mentioned and which makes it harder for businesses to recruit staff, and increased levels of homelessness. All this is stacking up devastating future consequences for the families concerned, and no doubt a dramatic impact on public funding as the health, education, social and employment results of this work down the generations.

There is increased focus on addressing affordability as distinct from supply—subjects that we discussed in the earlier group. In the foreword to a 2017 Institute for Public Policy Research report, Sir Michael Lyons said:

“We would stress that it is not just the number built but also the balance of tenures and affordability which need to be thought through for an effective housing strategy”.


With local authorities charged with the responsibility for ensuring that their local plans drive economic development in their areas, we simply cannot afford to overlook the place that housing development plays in local economies.

Levelling-up and Regeneration Bill

Debate between Lord Lansley and Baroness Taylor of Stevenage

Report stage
Thursday 20th July 2023 Lords Chamber

[Lord Lansley (Con)]

My Lords, my intervention on this subject will be brief. I did not speak on development corporations in Committee, but I have been following the subject very carefully. In response to this very short debate, or perhaps more appropriately in a subsequent letter, might my noble friend explain to us a little more about how the various forms of development corporations are intended to be deployed?

As far as I can see, in addition to the mayoral development corporations—which are not much affected by this Bill—we will continue to have scope for urban development corporations initiated by the Secretary of State, we will continue to have scope for new town development corporations initiated by the Secretary and we will have locally led urban development corporations and locally led new town development corporations that may be established at the initiative of local authorities under this Bill. By my count, we have five different forms of development corporations.

There is a certain amount of speculation about under what circumstances, in what areas and for what purposes these development corporations may be deployed, and about the Government’s intentions. It would be reassuring to many to hear from the Government about that, and in particular about their presumption that they would proceed, particularly for new towns and new development corporations, by reference to those that are locally led and arise from local authority proposals, as distinct from continuing to use the powers for the Secretary of State to designate an area and introduce a development corporation at his or her own initiative. It would be jolly helpful to have more flesh on the bones of what these various development corporations look like and how they will be deployed by government.

[Baroness Taylor of Stevenage (Lab)]

My Lords, those who have heard me speak in this Chamber will know that I am a great fan of development corporations, having grown up in a town that, apart from our historic old town, was created and, for the most part, built by Stevenage Development Corporation. At that time, the innovation of development corporations took a great deal of debate in Parliament to initiate, and we have hopefully moved on a bit towards devolution since the middle of the last century.

If there is to be parliamentary scrutiny of the establishment of development corporations, it is absolutely right that it should be done by the affirmative procedure, so we welcome the movement on that in Amendments 146 and 147, to ensure that the establishment of locally led urban and new town development corporations is drawn to the attention of both Houses, in the same way as those that are not locally led.

We hope that it will be the intention of government to scrutinise only the technical aspects of governance, for example, as it would be entirely against the principles of devolution that the Bill sets out to promote for any Government to effectively have a veto on whether proposals for a development corporation go ahead. During the passage of the Bill, we have talked about a new relationship of mutual trust between local and central government, and we hope that such parliamentary scrutiny will not be used to undermine that.

I absolutely agree with the noble Lord, Lord Lansley, about the importance of determining the nature of parliamentary involvement in different types of development corporation. Of course, we would have concern about Parliament intending to have a veto on the locally led ones. The other amendments in this group are consequential on the Minister’s previous amendment on page 195. We look forward to her comments about the points raised.