Lord McKenzie of Luton
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Localism Bill
Lord McKenzie of Luton Excerpts(13 years ago)
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Lord Lucas
That is a nice illustration. There are bits of wording; as my noble friend Lord Deben said, if we are going to put something in legislation, then we must produce something that works in the courts. An authority must know that it is complying with the law and other people must be able to judge whether it has complied with the law. There are bits in here which are frankly impossible from that point of view. The words “of all” appear several times, and completely remove the definition from reality when it comes to deciding the matter in a court. There are things about future generations, where we cannot know or even begin to imagine. We hardly know what is happening to the economy next week, let alone what will be the effects of a future development on future generations. We can do our best to assess that, but we cannot be held accountable for whether it does or does not; one just produces an immediate morass in the courts if one goes down that route.
There is a lack, as several noble Lords have said, of development, or the understanding of development. If you are going to assess a sustainable development you have to look at it as a whole, as a picture of everything that is happening, and not its individual bits; as a picture of what will happen over time, and not at any particular instant. There is no recognition of that at all in this definition. You could trip up a development just because it is doing a bit of harm to something, even though looked at as a whole it was doing good.
Indeed, many developments harm things but do good in other ways, and some developments compromise the ability of future generations to meet their own needs. Every time you take a bit of coal, gravel or gas out of the ground, that is not available to future generations. It is inevitable that we are living with compromise and fuzziness in this area. It is up to us to do our best by some well designed guiding lights, but we should not try to pin down a legal definition to something which is not suitable for it.
Lord McKenzie of Luton
I thank the noble Lord, Lord Greaves, for moving this amendment. We have added our names to it and give it our full support. On a point of detail, I wonder if the reference to the Planning Act in subsection (3) of the amendment should be 2008 rather than 2004. I particularly commend the spelling out of the guiding principles rather than the adoption of the usual shorthand of the 2005 principles.
The amendment adopts the formulation of promoting sustainable development rather than contributing to it or furthering it, which we discussed in Committee. As the noble Lord said, this amendment would enshrine in primary legislation the duty to promote sustainable development at every tier of the process, including the Secretary of State, although the duty imposed on the Secretary of State relates only to the functions concerning applications for development consent, and this would not appear to cover, for example, the Secretary of State’s engagement with promulgating a national planning policy framework. We might just reflect on that.
There has been a divide in part of our debate today between those who say that these definitions should not be in primary legislation, those who say that it should be in the national planning policy framework and those who say that we should not necessarily seek to spell these out at all. We believe that it is right for it to be in primary legislation. I agree with the noble Baroness, Lady Parminter, on that. A number of noble Lords, including the noble Lord, Lord Deben, and my noble friend Lord Howarth, queried whether doing so in a sense gives litigants a chance to challenge every decision whichever way it goes. I would argue a corollary: that not having a reasonably sophisticated framework in which these things can be judged equally, if not creating a greater opportunity for litigation, which is one of the key issues with the national planning policy framework as it stands, is a lawyer’s charter.
The noble Lord, Lord Lucas, said that we cannot possibly live every part of our life by this wording. He is right. There will always be a balance, a judgment, to be made about future generations and the current, and about local and national. To do that within the context that this wording creates gives us a real opportunity of achieving what we would broadly all sign up to.
When we discussed this matter in Committee, I understood that the Minister had indicated no change to the Labour Government’s position on the meaning of sustainable development. I think that we had one exchange and I thought that that was confirmed. If this is correct, it is very hard to see how this is reflected in the draft NPPF, which might be interpreted as giving primacy to economic development and be a view that the noble Lord, Lord Deben, may support.
A number of inclusions or omissions suggest a move away from the definition reflected in the amendment in the name of the noble Lord, Lord Greaves. The abandonment of brownfield first, the lack of content around social justice or equality and weaknesses around affordable housing proposals do not seem consistent with no change to the definition of sustainable development. If this debate does nothing else, it gives us the opportunity to hear directly from the Front Bench whether that definition is something to which it adheres, however it may be expressed in legislation or be the framework itself.
The right reverend Prelate raised spirituality and the extent to which that is included. One might argue that it is encompassed within ensuring a strong, healthy and just society, which may be the root to addressing the issues identified by the right reverend Prelate. The noble Lord, Lord Deben, referred to sustainability as being what conservatism was all about. I read these principles and say that it is a fairly good description of what socialism is all about. I am not quite sure what conclusion we might reach from that. It will never be an all-encompassing definition. Certainly, it seems to me to be not inappropriate, if we can get this in the Bill, to spell it out, to expand it and to meet the aspirations of my noble friend about including cultural in the definition. It seems to me that a strong strand from this debate is that there does not have to be a conflict between growth and the environment. The two can be encompassed. There will always be a balance in that judgment.
I was as interested as ever to hear from the noble Lord, Lord Jenkin, about his earlier experience and his historical references. He was there right at the start, although perhaps there is a competing claim that it was the noble Lord, Lord Deben, who produced, via John Major, the term “sustainability” first. I do not mind who produced it first but we should seek to make sure that we encompass it in these important planning changes before us in the most appropriate way.
We would sign up to the definition and to it being in the Bill. Given where we are in this process, it is very important that we have a clear position from the Government certainly no later than Third Reading. Whether we get partial satisfaction today on this remains to be seen but we certainly cannot let it drift beyond Third Reading. If the Government are not able to bring something forward by then, I urge the noble Lord, Lord Greaves, to revisit this—we would support him—and test the opinion of the House.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)
My Lords, in the daily horoscopes sometimes I am a Virgo and sometimes a Librarian. Today I shall be a Librarian because they are hugely well balanced and see both sides of any discussion. That is precisely the position that I am in today. It has been a very helpful discussion with, as so often, real feelings behind it. From the outset, I shall say that I hear what everybody has to say about this. I may not be able to provide a definitive answer by the end but we are getting nearer to one.
The balancing act here is to do with the question of a definition. The noble Lord, Lord Howarth, put his finger on it: the more you define it, the more trouble you get into legally. This is something that we have to take into account. Indeed, what we have also learnt from the debate is that there are potentially still extras that people would like to put into the definition. I fully see why and accept the wish of the right reverend Prelate to see spirituality included, and what the noble Baroness, Lady Andrews, said about culture and heritage. I hear what my noble friend Lord Cormack says about the importance of development enhancing. However, with this we begin to string out a lot of things that sustainable development is meant to cover. This is a difficulty that perhaps both Governments have had over the period. We all believe in sustainability. We can all define it to our own satisfaction, but the question is whether through that definition you end up in a legal minefield. The comments and speeches today have been very helpful in that regard and will certainly take us forward.
The first thing that I want to say is that we support the principle that planning should promote sustainable development. Indeed, it is central to the approach that we have taken in the draft national planning policy framework. The framework, as presently structured, makes it clear that planning has three pillars: the environmental, the economic and the social. Those are the three pillars that contribute most to a planning decision. We fully recognise that we have to balance those three elements.
Secondly, we also believe that the objective of sustainable development is appropriate for statute. There is already a duty on those preparing local plans to do so with the objective of contributing to the achievement of sustainable development. That is already the situation. The Bill will introduce a new duty to co-operate in relation to planning for sustainable development, which will ensure that councils and other public bodies co-operate effectively on strategic planning matters, including sustainable development. Our Amendment 210D, which I will move formally at the end, would extend this principle to neighbourhood planning by placing on all neighbourhood planning proposals an explicit condition relating to sustainable development. This ensures that the principle of sustainable development runs through all levels of plan-making—strategic, local and neighbourhood.
Thirdly, I understand the desire to ensure that there is clarity and consistency in the meaning of sustainable development. We have heard this afternoon how difficult that is to achieve. Everybody sees just another little gate that they might open to put forward something that they feel strongly about. I recognise that there are strong views and, as I said at the beginning, I have heard clearly what has been said. I shall ask that we reflect on that when I come to the end.
“National Planning Policy Framework
(1) The Secretary of State must issue, designate and update a National Planning Policy Framework, which will establish policies to achieve sustainable development in the development and other use of land.
(2) Such policies should relate to mitigation of, and adaption to, climate change.
(3) Before designating a document as the National Planning Policy Framework for the purposes of this Act or before amending any such document, the Secretary of State must carry out an appraisal of the sustainability of the policy set out in the document or any amendments to it.
(4) A document may be designated as a National Planning Policy Framework for the purposes of this Act only if any consultation, publicity or parliamentary requirements set out by the Secretary of State have been complied with in relation to it.
(5) The requirements in subsection (4) above apply to any amendments to a National Planning Policy Framework.”
Lord McKenzie of Luton
My Lords, the purpose of this amendment is to impose a duty on the Secretary of State to produce and keep up to date,
“a National Planning Policy Framework, which will establish policies to achieve sustainable development … including mitigation of, and adaption to, climate change”.
This also requires a consultation process and a parliamentary process.
I am aware that some would argue against this proposition and that it opens the door to giving parliamentary sanction to a framework that they may consider to be flawed. However, given the potentially profound effect an NPPF can have, we consider that the better argument is for Parliament to be able to have its say. Obviously we welcome the opportunity for upcoming debates in your Lordships’ House—even two of them—but this is not a substitute for a proper parliamentary process.
I remind noble Lords that the coalition agreement said:
“We will publish and present to Parliament a simple and consolidated national planning framework covering all forms of development and setting out national economic, environmental and social priorities”.
As I said in Committee, if that commitment can be enshrined in the coalition agreement, why not in the Bill? To be clear, the amendment does not seek to put the NPPF in the Bill; it simply seeks the obligation for one to be produced and updated and to be subject to a consultation and parliamentary process, which can be determined by the Secretary of State.
When we debated this issue in Committee, we did so in the absence of an official draft of the NPPF. This of course we now have, although it did not see the light of day until we were embarking on the Summer Recess. Indeed, the announcement of the planning framework while Parliament was not sitting increased fears that Ministers were trying to steamroller through important changes without proper scrutiny or debate. An assurance of a proper consultation and parliamentary process could have lessened these fears and potentially obviated some of the more unpleasant exchanges that ensued via the national press.
This amendment does not seek to spark a debate on the merits or otherwise of the NPPF, but there can be no doubt about its significance, whatever its final form and interpretation.
Lord Jenkin of Roding
The noble Lord has accused the Government of trying to sneak through the framework document because it was published during the recess. I am quite sure that he will have had, as I have, a letter from my noble friend that says:
“We are keen to take every opportunity to consult on and improve the text of the draft framework. We are inviting the Communities and Local Government Select Committee to comment … and are seeking to secure time for both Houses to consider the draft framework in the autumn”.
Did he have that letter?
Lord McKenzie of Luton
Yes, I did. The point I was making was that the document came at the start of the recess and not everyone out there got that letter—and there are plenty of people out there with a very keen interest in the NPPF. We as parliamentarians may have done; others did not. If in fact the Government are happy and prepared to have these processes then let us get it enshrined in the legislation so that it can operate in the future as well. As I said, an assurance of a proper consultation and parliamentary process could have lessened those fears and potentially obviated some of those very unpleasant exchanges that took place.
The presumption in favour of sustainable development, the definitions of sustainability, the implications for the green belt and green space, the impact on housing, particularly affordable housing, and town centre policies are all matters that go to the heart of our national life. Planning is an important democratic means of mediating between different interests, in the public interest. There must surely be due process and a role for Parliament. Despite some misgivings, I understood that it worked for the national policy statements. I took it from our exchanges in Committee that the Government were not averse to this approach—indeed, if they are going to facilitate a process before Parliament, that would seem to support that conclusion. In the light of experience of the NPPF to date, I invite the Government to accept this amendment. I beg to move.
Lord Berkeley
My Lords, I would like to ask the Minister a simple question. Under the Planning Act 2008, the national policy statements—which I think everyone welcomed at the time—require parliamentary approval and debate. I do not think that there has been any problem with that. They require consultation and they have had it, although some of them are receiving it rather later than some of us would like to see, though I am sure that they will come eventually. It seems to me that the national planning policy framework is a sort of parallel document to the national policy statements for planning and in respect of other smaller developments which do not come within the scope of the NPSs. As the NPSs have a link to the planning legislation, it seems logical that the national planning policy framework also should have one. I welcome the consultation and the debates that we are going to have. It would, however, seem to make it a simpler and clearer structure if there was a reference in the Localism Bill to the NPPF—not what it should say or anything like that, but just a reference.
Lord McKenzie of Luton
My Lords, I thank the Minister for that reply. Parts of it, I am bound to say, I thought were a little strange. In terms of the comparison with the national policy statements, she suggested that the NPPF had a lesser impact because local plans only had to have regard to it. Given where the Government are on the presumption in favour of sustainable development and where they are so far on transitional provisions, is it not the fact, or the likelihood, that unless something else changes before we conclude with this legislation, the NPPF will be the key document for determining a whole range of development applications? This is because local plans may not be up to date or complete for all the reasons that we are going to discuss shortly. To make that distinction therefore seemed to me somewhat strange.
The noble Baroness also said that there was no statutory requirement to have a sustainability appraisal of the NPPF. But is there a statutory requirement—again we are pre-empting an amendment we will come to—to have a sustainability assessment associated with the revocation of regional spatial strategies? If the Government are doing an assessment for that on a voluntary basis, as I understand them to be, then that does not seem to be a very coherent argument for not having an appraisal of the NPPF.
We are partly looking back, and partly shutting the stable door after the horse has bolted on the first NPPF, but this is looking forward as well. It deals not only with the existing NPPF, but requires there to be some parliamentary process attached to it. Of course I accept that we have two debates, by one route or another, coming up in your Lordships’ House. I am not sure what the arrangements are at the other end; the Select Committee always has the opportunity to review a policy and hold the Government to account. However, that is not the same as having a formal process by which Parliament can have its say and express its opinion on this hugely important document before it is finalised. If the NPPF were so insignificant and something that people only had to have regard to, then why on earth has there been this great furore both inside and outside Parliament? It is partly because of trying to understand the Government’s intent, and I can see that that can be resolved in due course. I also accept that the Government are as a matter of fact involved in a lot of consultation and discussion, and that is to be welcomed. But what is so wrong in having that as an obligation written on the—
Lord Greaves
My Lords, I cannot avoid teasing the noble Lord, and I hope he will answer this question. The national planning policy framework will replace planning policy statements and such of the old planning policy guidance documents as still exist. Why was it not necessary to have a requirement for planning policy statements on the face of primary legislation if it is now necessary to have it for the NPPF?
Lord McKenzie of Luton
My Lords, an argument could be mounted to that effect. I prayed in aid my absence from those debates before, so I shall excuse myself. The question is a fair one, but that does not necessarily mean that the balance should come down in favour of not having this process for the NPPF. It is such a hugely important document. One has just to look at the impact assessment of some of the changes being proposed covering town centre and parking policies. These things are very important and really go to the heart of our national life in so many respects. It is about communities, how we conduct our lives and how we plan for the future. To take that formally outwith Parliament does not seem to be right. In the circumstances, I am inclined to test the view of the House on this matter.
Lord Beecham
My Lords, I was taken with the Minister’s venture into the area of astrology earlier. However, I think she called herself a “Librarian”. I think a librarian is someone who works in a library. I think she meant “Libran”, which is rather different. I hope she will forgive me if I assume the role of a scorpion when we look at this amendment, as Scorpio is my astrological sign.
I am slightly puzzled by the explanatory letter that the noble Baroness circulated a couple of days ago. Perhaps, in her reply, she will be kind enough to elucidate it further because the letter refers to,
“an environmental assessment of the regional strategy”.
I am not sure what that means. Are only the environmental aspects of regional strategies being assessed? Could she explain how the process of assessment is taking place? The letter also says that this is on a “voluntary basis”, which I take to mean that it is a non-statutory exercise and that the Government will be consulting on these documents shortly. I do not know whether those documents are yet available or, if so, where they might be obtained, but I would also be grateful if she could indicate the nature of the consultative process. For example, we now have local enterprise partnerships, so will those partnerships be consulted? I assume local authorities will be, but one could also assume that those partnerships would be involved in all that.
Like other Members of your Lordships' House, I regret the demise of all the regional development agencies, although I accept that in some areas they were not particularly effective or popular. However, I suspect that we may see, just as in health, the quiet restoration of something rather similar—perhaps more at the sub-regional level, but no doubt under another name. I hope that the Minister will be able to confirm that that approach of looking at sub-regions will be part of this assessment and will also take note of some of the other developments in policy over the past few months; for example, the creation of enterprise zones and the operation, such as it has been, of the regional growth fund. These matters are clearly relevant to the planning regime, but it is not clear whether and to what extent they will be part of this assessment.
This group also refers to the position of transitional arrangements. The noble Lord, Lord Best, will no doubt be speaking about that, and I do not want to anticipate what he will say, but I strongly support the terms of his amendment because there is a considerable danger of a gap which would create difficulties in the light of the arrangements that the Bill contains. I hope the Minister will consider sympathetically the amendment that the noble Lord will, no doubt, move shortly. I would be grateful if the Minister could clarify, if not today, then subsequently, the questions I have raised.
Lord McKenzie of Luton
My Lords, like my noble friend I was puzzled by this group of amendments, and I hope the Minister can help us on a range of points. This seems a further twist in the saga of regional spatial strategies. The Secretary of State sought to do this by diktat and was ruled out of order, then it was provided for in the Bill before us and now, according to the letter from the Minister to which my noble friend Lord Beecham referred, by a stand-alone order-making power. Along the way, the Government seem to have determined voluntarily that they wish to undertake an environmental assessment of the revocation of the regional strategies and the structure plan policy, so it is the process of revocation which is the subject of that assessment.
Can we hear a little more from the Minister about how this all came about? At what point was the decision taken to undertake an environmental assessment of the proposed actions? Who is conducting the assessment and what are its precise terms of reference? How long is it expected to take? What is the status of local development frameworks in the interim? Can the Minister explain how this fits together with the NPPF and, in particular, the presumption in favour of sustainable development? We know that there are local plans which, together with existing regional spatial strategies are, one might say, complete one day but not the next, unless the transition provisions are put in place. The statement that we want to do away with regional spatial strategies as soon as possible and then the caveat about “subject to the sustainability assessments” smacks a little of predetermination rather than predisposition. Does this hold out the prospect of some regional spatial strategies being revoked and others not? If so, how does this all fit together? Is there not a risk that all this just creates further uncertainties in the planning world? Will the order be subject to the affirmative or negative arrangements? The Minister may say that this is all code for having some fairly loose transitional provisions, but this seems a rather strange set of amendments. Like my noble friend, I would greatly appreciate some further explanations.
Baroness Hanham
I did not say that. I said that they will be put forward as soon as possible after Royal Assent. The consultation on the environmental assessment is taking place. You cannot do anything without having taken account of the consultation, so the revocations will be only after the consultation has been considered.
Lord McKenzie of Luton
I am sorry to ask the Minister again, but I think it is important we get to the bottom of this. Can she tell us why there is this change in approach? This was not the original plan, was it? If it was, this group of amendments would not be necessary. How does the presumption in favour of sustainable development work in the interim? For so long as those local plans and the regional spatial strategies which support them are in place, will they hold sway? That will obviously change the minute the plug is pulled, if it is, on the regional spatial strategies. I am interested to understand why and at what point it was decided to undertake these environmental assessments. Can the Minister confirm that what is being assessed is the consequence of the revocation of those strategies? It seems a fairly significant change in where we all thought we were heading and did not want to head.
Baroness Hanham
My Lords, I think I am right in saying that there was a legal challenge that required these environmental assessments to be carried out. It is a necessity to make sure that they are all carried forward properly. The noble Lord asked about the relevance to the presumption in favour of sustainable development. There will be no change to that until the local development frameworks are developed and the national planning framework comes in.
Lord McKenzie of Luton
If the noble Baroness would forgive me, I am trying to understand the status of the NPPF in the interim before—or if—these strategies are revoked. Where does that leave the presumption over that period? It seems from what she said that there has been a legal challenge which, essentially, has forced the Government to go down this route. I therefore presume that this is not just a cosmetic exercise but is real; and the consequence could be that some strategies might be revoked and others not. Is that right? It seems to me to leave an entirely chaotic situation. Does the Minister recognise that it could lead us into a situation which nobody has contemplated or to date recognised?
Baroness Hanham
My Lords, the national planning policy framework is being consulted upon and, once it is an approved document, it will be the document to which people will refer and will replace the regional strategies. The consultation on the environmental impact assessments is a consultation, as I have said, and we will need time to consider it. If all the orders can be dealt with at, or nearly, the same time, they will be. All I can say is that a consultation is a consultation and there are always results; you cannot ignore them so we will have to wait and see the response and the impact of it. I will not know that until the 12-week period is over and the consultation can be considered.
As for regional spatial strategies, their effect stays until they are revoked. The national planning policy framework will then either have been put forward just before that or very shortly afterwards. By that stage, anyway, it will be capable of being the primary document.
Lord McKenzie of Luton
I will not press the Minister again but, given what I think is a quite significant development, could I ask for the chance of discussions before Third Reading, so we fully understand all its ramifications?
Baroness Hanham
I am sorry that I have not succeeded in convincing the noble Lord but, yes, of course we are happy to discuss this issue further and we will make arrangements to do that.
Lord Greaves
My Lords, my noble friend has missed a little of the discussion this afternoon. I have to confess that I always thought that Essex was in East Anglia and I claim to be a geographer. I stand corrected and I will never make that mistake again. All I know is that all those places in that easterly bulge in the country are deplorably flat.
The serious point that I want to make on these amendments is simply to lend my support to the point made by the noble Baroness, Lady Young of Old Scone, and the noble Lord, Lord Deben. It would be good for the Government to use “development” and “sustainable development” in a rather more rigorous manner and not confuse them with each other quite so much.
Lord McKenzie of Luton
My Lords, my noble friend Lady Young’s amendments are entirely reasonable and I see the thrust of them, but I thought that they were about removing the term “sustainable” from provisions in the Bill and not adding it.
On the duty to co-operate, the noble Lord, Lord Deben, makes an interesting point about knowing how to be local. However, to be local on a sustainable basis in some respects needs co-operation and engagement not only with near neighbours but on a broader front. Some of us have ongoing concerns about the demise of regional spatial strategies. They were not necessarily the answer to everything and were perhaps not perfect, but with those gone the only thing that exists between the regional strategies that were there hitherto and local authorities is this duty to co-operate.
It seems to me that there should be requirements on local authorities to co-operate. Part of the problem is knowing how extensive that co-operation would and should be—for example, on transport or waste issues. Unless there is recognition that this must be an integral part of the way forward, then I think this really is going to be a recipe for isolationism, that we are going to draw up the barriers around our little location, irrespective of what happens around us. As regards definitions of the eastern region, I can say as somebody who lives in Luton—long since known as the urban bottom of the county—that Luton and the rest of Bedfordshire do not always do things the same way. I must apologise—I have been referring to the noble Lord, Lord Gummer, and it should be Lord Deben. I do apologise. Thank you for that correction.
I hope that I have made my point. It seems to me that my noble friend is addressing the strength and importance of the duty to co-operate, and in that we support her.
Baroness Hanham
My Lords, I, too, am guilty of the terrible solecism of not referring to the noble Lord as Lord Deben. I have known him so long as John Gummer that Gummer naturally slipped out. None the less, I apologise.
“(3) The scheme must contain—
(a) an assessment expressed in numerical terms concerning the present and projected levels of accommodation need and demand in the district of the housing market area within which the local planning authority falls; and(b) the authority’s proposals for addressing such needs and demands.(3A) The proposals referred to in subsection (3) shall include the authority’s plans relating to the provision of housing, including affordable housing, in its district.””
Lord McKenzie of Luton
My Lords, in moving Amendment 204A, I shall speak also to Amendment 204G. These amendments focus on housing and housing assessment.
A consequence to the change in planning, especially the demise of regional spatial strategies, means that local authorities will no longer be able to blame development on regional requirements. It is now down to them. This places particular emphasis on assessment of housing need, including, importantly, the needs of the vulnerable and affordable housing requirements. That is why, at the urging of the National Housing Federation among others, we seek to ensure that there is a clear and comprehensive statutory duty on local authorities to maintain an adequate assessment. The federation states that structurally the focus is on the planning system in the medium term at least being plan-led. Again, this is good, although it places a greater burden on housing associations to forward plan development programmes, since proposals may have to be made through the local plan process, given that local plans will be expected to identify the key proposed housing sites so that the plan can demonstrate that it is sustainable. In the short term, it is likely that there will be more appeals, as house builders try to take advantage of the presumption in favour of sustainable development where plans are out of date and a five-year plus land supply cannot be demonstrated.
The appeal process may raise issues about whether affordable housing policies are up to date, and some developers will argue that present policies fail to reflect the affordable rent regime or the changes in grant availability. They will also argue that viability prevents them providing full levels of affordable housing. Housing associations may need to monitor appeals to ensure that affordable housing levels are not squeezed, potentially offering support to local planning authorities to evidence need for affordable housing in the market area. Housing in its broadest sense—accommodation needs—must be robustly assessed in preparing local plans. With 1.7 million households on social housing waiting lists across the country, it is vital that this is laid down in law.
The reforms to the planning system outlined in the Bill offer a new opportunity for local people to play a more active role in shaping development in their area. However, in order for them to do this, it is vital that they have access to the information that they need. This will enable them to make informed decisions and hold their local authority to account. Hence these amendments will put a duty on local councils to outline in detail in their local plan how they will address housing need. To support this, councils will be expected to provide good-quality data on affordable housing need and demand. There are a number of benefits to this approach, such as transparency; by ensuring that local authorities undertake a robust assessment of housing need, residents will have the information that they require to fully understand local planning decisions. Then there will be comparisons; detailed information will allow residents to compare the performance of their local council to that of neighbouring authorities, which will allow local people to develop a better understanding of how their council is performing. In addition, there is accessibility, with complex data put in an accessible format. Local people without a formal planning background will be able to engage in the planning decisions that affect their local area.
These amendments will also put into law a clear requirement on councils to undertake a strategic assessment of housing and accommodation needs and demand in their local areas. While the national planning policy framework promotes this, we firmly believe that the issue is too important to leave to regulations and guidance alone. With millions of people on social housing waiting lists, many with complex care and support requirements, this duty will ensure that councils have the information that they need to appropriately house people in their communities. The information will be invaluable in determining the amount of accommodation required, including affordable housing.
In Committee, the Government said that they would be requiring an absolutely clear, transparent and robust numerical assessment of housing need. However, it was argued that Section 13 of the Planning and Compulsory Purchase Act 2004 already outlined the necessary duty, when that section does not require local authorities to consider future need and demand in their areas. For the sake of future generations, it is vital that councils are required to make and act on these projections. To avoid local plans concentrating narrowly on immediate housing need to the exclusion of future requirements, it is crucial that that duty is put into law. I beg to move.
Lord Beecham
My Lords, I congratulate my noble friend on tabling these amendments, which deal with one of the most crucial social issues that affect the country today. Looking round this Chamber, I almost regret to say that most of your Lordships will recall the famous television programme from the 1960s, “Cathy Come Home”, which really drew attention to the acute state of housing need at that time. We are not quite in that position, but we seem to be approaching it, and the lack of house building currently planned would seem to bring the day nearer when we would be back to the future in those terms. So these are very timely and relevant amendments, not least because there are some indications that already there is a willingness on the part of some local authorities to waive or reduce the proportion of affordable homes within developments. But even if that were not correct, we need a further elucidation of what is meant by affordable homes.
Affordability will vary from place to place, but more than that the issue of tenure needs to be addressed. While it may be perfectly reasonable to prescribe a proportion of homes for owner occupation, the demand for rented accommodation is still high. I can speak from the experience of the ward that I represent in Newcastle, where a significant regeneration scheme is under way, with a very modest element of affordable homes within it and, within that, an even more modest allocation of homes to rent. Yet given the socio-economic profile of the area, I suspect that there will be much greater demand for rented accommodation than there is likely to be in the course of this regeneration.
I am sure my noble friend and the Minister will agree that, whether or not these amendments are passed, attention needs to be given to assessing separately, as it were, the need for rented occupation and owner-occupied accommodation. That rented accommodation need not necessarily be in the form of social housing by local authorities or registered social landlords—it could be private rented accommodation but at rents which are affordable to the local community to meet that local demand. I hope that, as this matter goes forward, whether in the statutory form or otherwise, that further refinement of the concept of affordability can be taken into account and reflected in policy.
Baroness Hanham
My Lords, I thank noble Lords for their contributions. As one would expect, it ended up with a wider discussion on housing. We have had that on earlier parts of the Bill, which does not mean that we do not have to listen again to the important points that were made. Before I start on the amendments, two areas of thought were triggered in my mind. A concern was raised by the noble Lord, Lord Newton, that with localism and local neighbourhood planning, no one would accept having housing in their area and that they keep trying to shovel it off to somewhere else. That will not be possible because the neighbourhood plans will have to conform to the local development plans, which will have a clear indication of, first, the number of properties and housing they expect to be built and, secondly, the general area. The neighbourhood plans will be able perhaps to say, “Well, we would rather not have it there but we could have it there”. There will be no possibility that they will not deliver what the local development framework requires. That should be helpful.
The Government are committed to 150,000 new homes before the next election, which will be a great deal more than we have seen over the past few years. My honourable friend Grant Shapps at the other end is actively pursuing policies to ensure that housing is developed. The new house bonus is meant to contribute to and encourage both the building of new housing and the improvement of properties. It covers affordable rents and encourages other capital expenditure. The pressure to produce more housing will be there from the Government.
We are asked to talk here about the possibility of a mandatory housing assessment, which we have already discussed a couple of times. I have tried to persuade the House, so far without success, that it is unnecessary to put this in the Bill formally. As my noble friend Lord Greaves has just helpfully pointed out and as I was going to say, the draft national planning policy framework has very clear policies on how much housing must be built and what the local authority’s responsibility will be. That has been combined with the guidance on strategic housing market assessments, which already sets out a framework for local authorities to take account of need and demand for both market and affordable housing, and to keep this under review over the plan period.
Local authorities already need to prepare an annual monitoring report covering housing delivery, which they must publish locally and which sets the context for reviews of plan policies. Preparing evidence is part and parcel of the plan-making process that has its own robust requirements for publication and consultation. Making local authorities publish assessments prior to undertaking local plan preparation would add yet another layer of unnecessary bureaucracy. I fully agree that local authorities should understand and plan properly for housing and affordable housing requirements. However, since existing requirements perform the functions intended by these amendments, I cannot support them. They are already being carried out.
An important point was raised by the noble Baroness, Lady Whitaker, and much supported by my noble friend Lord Boswell, on Gypsies and Travellers. I am sure noble Lords are aware that local authorities have a statutory responsibility for assessing Travellers’ needs. Every local authority, when undertaking a review of housing needs for its district, is required to consider the needs of Travellers under Section 8 of the Housing Act 1985. Local authorities are also required to prepare a strategy to demonstrate how they will meet the accommodation requirements of Travellers. All the requirements are there; it is up to the local authorities to make sure that they fulfil them and carry out their obligations under the various aspects of legislation.
With the explanation that these amendments are not needed, and that there are good, robust policies to ensure that there is housing assessment as well as to make sure that affordable housing and other housing will be built, I hope the noble Lord will withdraw his amendment.
Lord McKenzie of Luton
My Lords, I am grateful to the Minister for her response, although I do not agree with some of what she said. More than 150,000 new homes a year—
Lord McKenzie of Luton
I am sorry—over four years. However, even 150,000 a year is less than what the previous Government achieved. If you go back a couple of years, the number of housing starts was the highest for around 20 years. The Government constantly quote a later figure, which was affected by the financial crisis. However, if you look at the data over the period you will see something else.
Lord Greaves
I wonder if there is confusion here between housing starts and affordable housing starts.
Lord McKenzie of Luton
Indeed, the noble Lord is absolutely right. However, I understand that the mechanism to achieve affordable housing is through 80 per cent of market rents being the primary funding source for it. Therefore, what the Government have done has slashed capital funding for affordable housing by driving an approach that jacks up rents, which for many people will be paid out of the housing benefit budget. It is difficult to see the logic of that approach from the Government’s point of view.
The Minister’s response to the noble Lord, Lord Newton, was to say that local development plans have to be adhered to. I thought that the noble Lord’s point was about what happens in adjoining local authorities and how they can be persuaded to provide affordable or other housing when a neighbouring authority is fully developed or has little room to develop further. As I have mentioned, that is precisely the situation in which we find ourselves in Luton, as do other local authorities. The noble Baroness says that the route is through the NPPF; I think the noble Lord, Lord Greaves, quoted from that. However, as we have debated, it is a question of having regard to that. We want to put something transparent in the Bill. That transparency will help the understanding of local people as well.
Lord Greaves
If the NPPF had only to “have regard to”, people might be less concerned about it. Is it not the case that local plans—core strategies—will not be approved by the inspection process unless they conform to the NPPF? They do not just have to have regard to it.
Lord McKenzie of Luton
That may be the case up to a point. How that works in practice remains to be tested, particularly given the pressures on the inspectors. We shall come to that point in a moment.
I say to the noble Lord, Lord Greaves, that I am old enough to have watched “Cathy Come Home”. I think I did; it was on a black and white television. It was a defining moment in our country. We are at risk of going back to that. These assessments must also be seen in the context of what is happening to housing benefit. We know that many people will be made homeless and that many will be uprooted from their current communities and forced into new ones. Following the point of the noble Lord, Lord Williamson, about how robust and up to date those assessments are, they would also need to take account of such movements, which could be very significant.
I very much warmed to the comments of my noble friend Lady Whitaker and the noble Lord, Lord Boswell. The Minister’s response was that there is already a statutory responsibility. However, the reality is that to date it has not delivered for Gypsy and Traveller families. It is right that we should focus on that. It was absolutely commendable of the noble Lord and my noble friend to do so in the course of this debate.
My noble friend Lord Beecham, in supporting the amendment, said that we should look not just at social housing or affordable housing—whatever description we apply to it—but at the private rented sector as well. That is absolutely right: we have to look at all areas, particularly the private rented sector. We know that the formation of households over the next decade will increase—certainly at a faster rate than new homes are projected to be provided. That is the source of some challenge.
The noble Lord, Lord Greaves, made the point that it is not just about whether somebody can afford a property but about what they are affording. What is the quality of the home that they are able to access? That is why, like him, I am a great supporter of the social housing sector. I am sure the noble Lord himself remembers council house-building when it took place and Parker Morris standards, with decent garden sizes. That may not be easy for us to return to but it was indicative of a time when we believed that people should be properly and decently housed.
Baroness Gardner of Parkes
My Lords, I was very involved in housing when Parker Morris standards were still used—
Lord McKenzie of Luton
I should be very interested to learn what the noble Baroness wanted to say about Parker Morris standards. Perhaps we can speak in the break.
My understanding is that the real difference between us here is whether this matter should be dealt with in guidance, through the NPPF or in the Bill. We believe that it is such a fundamental issue that it should be in the Bill. Indeed, if we are on the same page regarding what we want to achieve, I do not see why the Government cannot accede to having this as an integral part of the legislation. It is a key and fundamental—
Baroness Gardner of Parkes
I am told that I am not out of order and that I can therefore ask the noble Lord a question. Is he aware that when the Parker Morris standards were in force, the standard of all the local authority housing, as it was at that time—social housing has widened since then with housing associations —was way above that produced by any commercial developer? I have heard noble Lords in this Chamber say the reverse of that, but that is not the case. Parker Morris was the town clerk of Westminster City Council. His standards were too high and could not continue to be afforded. Is the noble Lord aware of that?
Lord McKenzie of Luton
Indeed. I am certainly aware of the challenges that that produced but I hang on to the point that it was a good period for the provision of housing, with people, whatever their means, having the chance to live in decent houses in good neighbourhoods. Indeed, for 20-odd years I had the privilege of representing a patch on Luton council built just after the Second World War to those standards and it was a great place. However, that is a bit of a diversion from the amendments before us, and that is my fault.
As I said, the difference between us is whether this matter should be in the Bill or otherwise. I accept that the Government are not going to be moved on this. We will continue to make the arguments but, for the time being, I beg leave to withdraw the amendment.