Localism Bill

Debate between Lord Reay and Lord Best

Wednesday 20th July 2011 Lords Chamber

[Lord Reay]

My Lords, I put my name down to oppose that Clause 124 stand part of the Bill. A report was issued in 2007 by BERR—as noble Lords will remember, it was a department which existed before BIS and DECC came into being—which was entitled Delivering Community Benefits from Wind Energy Development: A Toolkit. It included this statement:

“There is a strict principle in the planning systems in all parts of the UK that a decision about a particular planning proposal should be based on planning issues; it should not be influenced by additional payments or contributions offered by a developer which are not linked to making the proposal acceptable in planning terms … To put it simply, planning permission cannot be ‘bought’”.

Do the Government still stand by that statement?

I am grateful to the Minister for circulating the most recent, six-page, briefing from her department on Clause 124. That document states that whereas Section 106 payments, or planning obligation payments as they are called, must relate to the planning merits of the specific development to which they relate, CIL income can be used more widely. However, local planning authorities, it goes on to say, should not have regard to considerations that are not material, and if they do their decisions will be unlawful. Deciding on the scope of what, as a matter of law, could be material to a planning decision remains principally a matter for the courts.

So what has changed? The Government say nothing has changed, except that the current legal position has been clarified by putting it into statute, presumably by removing it from case law. The Government have not stated clearly what happened to make them take the step of suddenly producing this clause at Report stage in another place. I should be grateful to the Minister if he takes the opportunity today of stating why that is so. In doing so, perhaps he could explain why the Government wanted to remove decisions about what count as material considerations in planning matters from case law, and what he thinks the effects of doing that will be.

I should also like my noble friend to state that the Government stand by the BERR statement from 2007 that I quoted—that it is not the Government’s intention that planning decisions can be bought. I would also welcome it if the Government were able to support Amendment 166WA, which was moved by the noble Baroness, Lady Hamwee. Incidentally, I should also like the Minister to say when we can expect the national planning policy framework, as this is the last day before the Recess on which we can receive that information directly.

[Lord Best]

Perhaps I could speak before the noble Lord, Lord McKenzie, who will bring everything together thereafter. I know that opposition to Clause 124 relates to the effects on planning decisions of taking into account, in particular, the financial benefits from the community infrastructure levy and, very importantly, the newly formulated new homes bonus. In relation to the community infrastructure levy, I think the Government were absolutely right in reworking and reintroducing the CIL concept. I hope that planning decisions will take full account of the benefits that these levies can bring.

I shall now consider the potential impact of the new homes bonus. I am a supporter of the bonus, and I pay tribute to the Housing Minister, the right honourable Grant Shapps, for bringing forward this way of rewarding those local authorities that take their leadership role seriously, often in the face of considerable and vocal opposition, and seek to increase the number of new homes built in their areas. We know how important it is that acute shortages of decent housing, particularly in the southern half of England, should be urgently addressed. Planning can be the fundamental barrier to new homes getting built; but it can also be a positive force that facilitates badly needed new homes, even though the beneficiaries—the proposed new residents—have no voice in the local decision-making because they have not yet moved in.

The new homes bonus provides a mechanism for local authorities to give something back to the existing communities affected by new development: money to enhance local facilities, improve the local environment and reward those who are bound to be inconvenienced by building works close by and probably by increased traffic. Councillors can stand before the sceptics and protestors and declare that not only will the new housing serve the needs of young families seeking a home, but it will bring benefits directly or indirectly to the local community too. Some district councils in the Home Counties—exactly the places where opponents of new homes are often most vociferous—could gain significantly from the bonus payments by taking a pro-growth line. In these difficult times, these payments could mean that local authority services, which would otherwise have to go, may be retained. Conversely, those councils that succumb to every pressure and oppose new homes being built in their areas will lose out. I wish the new homes bonus every success and would hate to see planners ignoring the benefits it could bring.

My starting point, therefore, has been to look favourably at Clause 124’s intention that planners should recognise the positive financial considerations for their localities that a planning decision can achieve. However, the arguments from the noble Baronesses, Lady Hamwee and Lady Parminter, and the noble Lords, Lord Jenkin and Lord Reay, cause me to think again. If there is a danger that this measure could lead to accusations of planners selling planning permissions, to objectors being able to argue that financial incentives have improperly influenced decisions, and to legal challenges and long delays, then I can see that it would be much better not to tackle this through legislation. If reliance on existing legislation—with some extra guidance—is the safer option then, as a firm advocate for the new homes bonus who would not want to put it at risk, I would support the amendment and that the clause stand part.