Neighbourhood Planning Bill

Lord Shipley Excerpts

Report: 1st sitting: House of Lords
Thursday 23rd February 2017 Lords Chamber

I want to set out the context in which we are seeking to address concerns that have been brought forward. Work is continuing: the department has spent a lot of time with my noble friend, working very constructively together, and will continue to do so. I wanted to put that in context and I am grateful.

[Lord Shipley (LD)]

My Lords, I should declare at the start of Report that I am a vice-president of the Local Government Association. I pay tribute to the tenacity of the noble Baroness, Lady Cumberlege, and for her work on a range of amendments, but this one in particular because it is terribly important. It is about giving confidence to those engaged in neighbourhood planning that what they achieve will not be turned over by the actions of some other authority. We also know that where we have neighbourhood plans 10% more housing gets built, so having confidence in the system seems to me to matter a very great deal. It is just very important that neighbourhood planning groups understand that their neighbourhood plan can be defended from predatory actions by the local planning authority, the Secretary of State or the Planning Inspectorate.

A number of noble Lords know examples of where an adopted neighbourhood plan is under attack from the local planning authority. Therefore, making sure that we have the statutory position absolutely clear matters a great deal, and for that reason I am fully behind this amendment. I very much hope that the words of the Minister will assist us. There is probably a further conversation to have. I think the fact that the Government have withdrawn the Henry VIII clause, Clause 40, is material here. Although the Henry VIII powers in relation to compulsory purchase will stay, they will not apply any further to the planning parts of the Bill and that is therefore certainly a move in the right direction.

[The Earl of Caithness (Con)]

My Lords, I apologise to the House for not having taken part in the Bill so far: every time I wanted to take part I have been in the committee upstairs, and when one has such a clash it is quite right that one should not come in, but today is a different story. First, I congratulate my noble friend Lady Cumberlege on what she has done. She has taken up a point and run with it against very formidable odds and I commend her hugely for doing so. She has a very strong point in principle. I also think that it was very important that my noble friend Lord Bourne got up at the beginning of this debate and said what he did.

Before I go any further I declare an interest as a member of RICS, although I have not practised for many years. I was delighted when my noble friend said that RICS is flexible about this and about amending the instructions it gives. I can only add to what the noble Lord, Lord Shipley, said: neighbourhood plans are terribly important because they involve the neighbourhood. If people give their time freely and voluntarily to take part in putting these things together and they get kicked in the teeth, we will not get them to come forward a second time. It is hugely important for the Government’s policy, which I totally support, that the right support and instructions are given all the way down to the examiners and local authorities. This is not just about housing; in Hammersmith, there is a draft neighbourhood plan and a planning application which would drive a coach and horses straight through it.

These issues will affect the local community and if, having put all that work in, the community is seen to be ignored then the Government’s policy will fail. I hope that my noble friend Lady Cumberlege does not press this amendment because it is a very welcome sign that my noble friend the Minister said he is still considering it. I hope that the House will support the principle of the amendment but also support what my noble friend on the Front Bench is doing in giving this matter further thought.

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[Lord Shipley]

My Lords, I want just to add a brief comment, but not to repeat what the noble Baroness, Lady Cumberlege, has said, about the importance of this group. Broadly speaking, the impact of Amendments 3 and 4 is to get people talking, relating to each other and understanding the variety of views that they may have. In Committee, I was struck by the amount of discussion that we had around the tendency towards desk-based decision-making in the planning system, either in terms of examination or in terms of planning appeals by the Planning Inspectorate—and so I think that this will help. The wording in Amendment 3 of proposed new paragraph 12(c), encouraging the qualifying body and the local planning authority to have an,

“opportunity to attend and contribute to any meeting called by the examiner”—

the terms of how a meeting can be called are fairly well defined—will really help, I think. When people talk to each other it becomes much easier to understand points of view.

The other thing that I recall from Committee which relates to Amendment 4 concerns the use of language. It is very difficult for lay people who are constructing neighbourhood plans to understand fully the implications of some of the professional wording. The Minister has taken this problem on board. Having the assistance of the Royal Institution of Chartered Surveyors and other professional bodies will help in this regard. Through talking and listening we will get a better definition of neighbourhood plans that will stand the test of time.

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[Lord Beecham (Lab)]

My Lords, this is the second last amendment to Clause 7. It is striking that in a piece of legislation called the Neighbourhood Planning Bill only seven pages out of 49 relate to neighbourhood planning. Perhaps at Third Reading the noble Lord might care to move that the title of the Bill should be somewhat different, because most of it relates to a wider issue.

Having said that, Amendment 5 proposes that a series of issues should be reflected in development plan documents. In Committee, the Minister stated that all these matters are covered by the National Planning Policy Framework, but in fact they are not. There is no mention in the NPPF of social housing, although the word “affordability” comes into it, and there is no mention at all of education, so in that respect the noble Lord was mistaken.

In any event, I argue that it would be sensible to include within the development plan specific reference to these requirements. Members of the public will not be terribly familiar with the National Planning Policy Framework, and I venture to think that some Members of your Lordships’ House—including, I confess, me—are not necessarily fully au fait with its provisions. What is the problem with setting out in what is to be a local document the matters that ought to be considered and then dealing with them? That seems a perfectly sensible way to go forward. I hope the noble Lord will reflect on that and agree that, after all, it makes some sense.

I also want to speak to Amendment 8, which deals with two-tier authorities—a county council and a district council. The object of the amendment is to try to ensure that there is a good working relationship between the two authorities. Where a district council does not carry out its planning responsibilities, it is perfectly reasonable for the Secretary of State to have the power to invite the county council to get involved. However, the amendment sets out some conditions relating to that and, in particular, will protect the lower-tier planning authority provided it can demonstrate that it is dealing adequately and efficiently with the timetable for the preparation of the plan. Conversely, if it requires another planning authority to become involved, the provisions of the amendment will not be invoked.

I think we have to tread somewhat carefully around the relationships in two-tier authorities. I hope that the Minister will accept that the amendment will assist better relationships by ensuring that the position of the district council will be respected unless it demonstrates a failure to respond adequately to the requirements of the situation. I beg to move.

[Lord Shipley]

My Lords, I support Amendment 5, which contains an admirable list of the documents that a development plan should cover.

I shall speak to Amendments 7, 8 and 8A. Amendments 7 and 8A relate to the same issue in Clause 9 and Schedule 2. We had a longish discussion in Committee about the capacity of a county council to undertake the planning function where it was felt that a district council had not been fulfilling its obligations. I have thought very carefully about this and have concluded that Amendment 8, which stands in my name and that of the noble Lord, Lord Kennedy, and to which support has been given by the noble Lord, Lord Beecham, seems a reasonable compromise. It provides a procedure that can be followed and it would probably command broad support in the country. Therefore, I hope very much that the Minister will feel able to accept Amendment 8, or at least come back at Third Reading with something similar.

[Lord Lansley (Con)]

My Lords, perhaps I may interject on this group, although not in relation to Amendment 5. I am sure that the noble Lord understands that, if one were to incorporate that amendment as it stands, one would in effect create in statutory form a small subset of factors which might and should be taken into account in determining a local planning authority’s strategic priorities but which in no sense encapsulated what those strategic priorities might be. The alternative seems to be to incorporate pretty much everything in the National Planning Policy Framework into a statutory provision setting out what the strategic priorities should be. I think that the legislation is right as it is: it is the job of the local planning authority to set its strategic priorities, and those should be set out through the consultation and then through any subsequent process of approval of the development plan.

However, I want to talk about Clause 9 and Amendment 8 in particular. I would have thought that the Secretary of State would invite a county council to take over the development plan process from a district council only in extremis. I cannot quite see how the Secretary of State could enter into such a plan other than in the most extreme circumstances. The county council is not in any shape to do this. I think that my own county council would be horrified at the prospect of that happening. If district councils are told that if they do not get on with it, this will happen, they will regard that as an empty threat. There is even a fear that if district councils which resisted completing their development plan process—there are very few of those because they know how important the plan is for the local community—thought that they could hand the responsibility over to the county council, that might be an attraction rather than a deterrent.

Therefore, I am not sure that I see the purpose of Clause 9. If the Government feel that they need a toolkit, including a measure that they could take in extremis, it must be set out as that. However, your Lordships will recall that Schedule 2 says that the Secretary of State can do this in circumstances where he or she,

“thinks that a lower-tier planning authority are failing or omitting to do anything it is necessary for them to do in connection with the preparation, revision or adoption of a development plan document”.

That is far too sweeping. So I apologise to my noble friend on the Front Bench, but I rather like Amendment 8. It helps because it sets out straightforwardly that this should happen where the development plan process is not making, or could not make, progress because there is no timetable or capacity and the authority is not trying to attract the necessary capacity. I do not think that Amendment 8 could be incorporated into the Bill, not least because it should include the words “in the view of the Secretary of State”; otherwise the questions of whether the authority had a satisfactory timetable, or whether it was thinking of inviting a district authority to do the job, would become completely open to argument. The Secretary of State must have the power, and it must be the Secretary of State’s view that the local planning authority is not doing what it ought to do by reference to a timetable or to alternative capacity.

In responding to this short debate, will my noble friend say that he will at least take this amendment away and look at it with his colleagues to see whether there is a mechanism—acceptable to the Government at Third Reading—for demonstrating that the Government would enter into a process of this kind only in extreme circumstances?

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[Lord Bourne of Aberystwyth]

My Lords, in response to that last intervention, the answer is no. However, if my noble friend would like to table a debate on that issue, I am sure we would be only too delighted to respond.

I am very grateful to my noble friend Lord Porter for his advertisement of the LGA’s position on this. He is, I know, immensely pleased with what is in the White Paper on planning fees.

In response to the point on reimbursement, I do not think it is opening up a can of worms. Reimbursement is something everybody understands. However, when it comes to opening cans of worms, the noble Lord opposite is an expert.

Let me respond to the very valid points from my noble friend Lord Lansley. The power will be used only in extremis but I come back to the point that it is already an existing power for the Secretary of State to take. It is not new and did not come out of the blue. It will be used only in extremis and there will be discussions on that. All we are doing is extending the range of options the Secretary of State has. At the moment, he can intervene directly. This power would mean that he could intervene directly or ask a county council—I repeat: ask—whether it can carry out the plan using its local knowledge and expertise. If a county council has not got that local knowledge or expertise, I am sure that no Secretary of State would want to ask it and would take the power directly.

As I said, noble Lords and others can raise this issue as part of the consultation on the White Paper. We have no intention of altering the position in the Bill but it is open as to how this plays out in the regulations that will follow. The consultation is now open and I know all noble Lords will wish to advertise that. It would be good if people could respond to that by the deadline of 2 May.

[Lord Shipley]

My Lords, there was a brief debate a moment ago about who would pay the bills where a county council undertook the work. I raised this matter in Committee. On page 47, lines 31 to 40, the Bill makes it absolutely clear that the lower-tier planning authority must reimburse the upper-tier county council. The difficulty with this paragraph to the schedule is that nothing is said about who decides what is a reasonable level of costs, what is included in the costs and what costs the county council might be entitled to ask for.

Therefore, for the avoidance of later difficulty—presumably the Government plan to deal with this matter in guidance, or possibly in regulations more formally—it might be helpful to have the Minister’s reaction now as to who determines what is a reasonable charge for the district council to pay.

[Lord Bourne of Aberystwyth]

My Lords, I am grateful to the noble Lord, Lord Shipley, and I apologise to my noble friend Lord Porter and the noble Lord, Lord Kennedy. It is indeed the district council that pays for this—that is absolutely right—on the basis that they have been funded for it. Perhaps I may write to the noble Lord, Lord Shipley, on the issue of determining what is reasonable—it may be a matter of dispute but it happens all over the place—place a copy in the Library and send a copy to all Peers who have participated in the debate.

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We have to look at that, but that decision-making—that final thing—is not transparent or accountable enough, and the practice and behaviour of the inspectorate is not understood enough. This results in people feeling locally—both in neighbourhoods and in local authorities—that they are being overturned by unaccountable authorities, often at the behest of very powerful and, as they feel, well-connected developers. There definitely has to be a change somewhere, so I support the spirit of these amendments, but I think some of the wording needs to be negotiated and I hope that will be possible.

[Lord Shipley]

My Lords, my name is attached to all three amendments in this group; I will try not to repeat what other noble Lords have said because I think there is a degree of unity on a number of aspects. The aims of Amendment 6 are very important. Maybe the wording can be looked at, and maybe the Government can come back at Third Reading. The amendment would give people in local authorities confidence that the Secretary of State is not simply going to operate within the appeals system, which rides roughshod over a local planning authority and an area with a neighbourhood plan.

My noble friend Lady Pinnock made a very forceful case for Amendment 6A. I remain very concerned by the Government’s decision to have a three-year housing supply requirement where there is a neighbourhood plan area, but a five-year housing supply requirement where there is not. Can the Minister say something further about this? Had the proposals in this amendment applied, then in some of the instances my noble friend mentioned, a three-year housing supply requirement may have resulted in a different outcome to the planning application.

Amendment 40 is terribly important. I am very grateful to the noble Baroness, Lady Cumberlege, for her support for this amendment because it is extremely well drafted—I do not claim any personal credit for that at all. It defines what the problem is and what the solution may be. My noble friend Lady Parminter made it clear that it is a problem when a local planning authority goes against an adopted neighbourhood plan. I listened very carefully to the Minister’s reply to the first amendment. He made it clear—if I heard it right—that a local planning authority could make a decision which was contrary to the adopted neighbourhood plan, which forms part of the local development plan. I support my noble friend Lady Parminter in that the Government should monitor where this happens. However, I want to add one thing. Where the local planning authority owns the land in question, the Secretary of State should have an automatic right to call that application in. In other words, there is a subtle difference. Monitoring and notifying the local authority if it does not own the land and seeing whether the law needs to be changed is one thing, but where it does own the land, that should be a matter for automatic call in. I would be grateful for the Minister’s observations on that.

[Lord Bourne of Aberystwyth]

My Lords, I thank all noble Lords who have participated in a far-ranging debate on many important issues covered in this group. I turn first to Amendment 6, in the name of my noble friend Lady Cumberlege and the noble Lord, Lord Shipley. This is an area of importance. Planning inspectors are appointed by the Secretary of State to decide planning appeals on his behalf. They are not, as perhaps the impression was created at times, random individuals making arbitrary decisions. I wholly accept that there is an element of mystique here and that it would be good if we were able to demystify it. It is a bit like debates we have had recently in relation to judges: these people are taking decisions at arm’s length, based on a body of law and in accordance with legal procedure. They are properly qualified and should be supported. Planning inspectors make decisions in accordance with the national planning policy and the development plan, which includes, of course, any in-force neighbourhood plan, unless material considerations, which we touched on earlier, such as those relating to nationally significant infrastructure projects, indicate otherwise.

Amendment 6 would create a situation where all appeals which are contrary to the local development plan must be dismissed. Amendment 6A would prejudice proper consideration at appeal of how national and development plan policies should be applied. I do not accept that it is helpful for planning inspectors to be told, in advance of any deliberations, what their conclusion should be. I accept that that is probably not the intention of the amendment, but it is dangerously close to the effect the amendment would have. Nor should we tell planning inspectors how to exercise their discretion in terms of the weight attached to particular matters in the consideration of an appeal. I would also guard against what would appear, to some extent at least, to be the inconsistency of arguing, as at times we have been, understandably and correctly, for proper local planning procedures and localism and then, when we do not like it, saying that the centre needs to intervene and this is what the Minister must do. We have to consider a proper balance here. That said, I understand some of the issues that have been raised and I assure my noble friend Lady Cumberlege and the noble Lord, Lord Shipley, that the White Paper commits us to taking forward a proper procedure and giving proper weight to planning appeals. I accept that there is something to look at here and we are continuing to look at these issues with my noble friend.

I turn to Amendment 6A and some of the questions raised by the noble Baroness, Lady Pinnock, in relation to brownfield land and the green belt. She will know, because we discussed this in Committee, that there is a lot in the housing White Paper about the green belt. A lot of things are currently being processed in relation to brownfield land and I assure noble Lords that we are bringing in regulations this April—it may be later but I will correct that, if I am wrong, in a letter to noble Lords—for brownfield registers, which every local authority must complete and which will include appropriate brownfield sites identified for possible housing. We expect that housing to be delivered and there will be percentages, which, again, I will outline in the letter, that have to be delivered within this Parliament, up to 2020. So there is much happening there. We have provided loan funding for developers, through the home building fund, which has an emphasis on brownfield land as well.

Furthermore, as the White Paper makes clear, constraints on development on green belt land remain constant. The White Paper, which I do not have in front of me, says that before even looking at green belt land you have first to consider denser provision of housing which may be appropriate. We know that London, for example, is the least densely occupied capital city in western Europe. I think that Madrid is four times as densely populated. Denser housing does not sound attractive but in terms of where we are it could well be an attractive option that we should look at. Also, building on brownfield land is identified in the White Paper, as is co-operation with other local authorities to see whether something can be done if there is not sufficient housing supply in one area. So we do regard green belt land as sacrosanct. If I may, I will pick up more details on that in a letter to noble Lords, because I had not anticipated this and some of my figures may not have been absolutely accurate in relation to brownfield and green belt land.

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[Lord Shipley]

My Lords, I agree that Amendments 18 and 25 are important, although the comments of the noble Lord, Lord Lansley, largely related to Amendment 25, and perhaps to some others that we will deal with later, on the subject of pre-commencement conditions. Those comments were very similar to ones that I recall him making in Committee. I repeat what I said on that occasion, which is that I find the case exaggerated. I do not find the evidence base that the Government came up with for the problems requiring this solution to be as great as they imagine it to be, and I have heard nothing further to convince me that that is the case.

Clause 13 is simply one clause, but almost a third of the amendments tabled to date relate to it. Twenty-four amendments to Clause 13 have been tabled by noble Lords, and that suggests to me that there is something structurally wrong with it. Therefore, I hope that the Minister will feel that there is a great deal of merit in Amendments 18 and 25.

In response to another comment from the noble Lord, Lord Lansley, I would just say that I do not think that a local planning authority should have to negotiate a written agreement with a developer on a matter which is in conformity with the National Planning Policy Framework. It seems that there is a basic principle there that the Government should surely support, and it is spelled out in Amendment 18. I think that a local planning authority should have the right to impose a condition if it is in line with the National Planning Policy Framework. Therefore, I hope very much that, when he replies, the Minister will tell us that he agrees with the wording of the amendment.

[Lord Young of Cookham]

My Lords, I am grateful to all noble Lords who have taken part in this debate—particularly to the noble Lord, Lord Stunell, who may have endeared himself to me by saying that I could be trusted above every other noble Lord in the Chamber. However, I am not sure what the reaction of other noble Lords might have been to that. He also implied that I might not be in government for ever. That is a question which my wife sometimes asks me. I first joined the Government in 1979 and have left it four times, each time thinking it was the last time but each time, back I come. If the noble Lord, when he was a Minister in the DCLG, was given a one-line zinger to deal with any amendments, he was more fortunate than I am this afternoon.

Perhaps I may try to address some of the issues, which to some extent go broader than Amendments 18 and 25. First, I reassure noble Lords that this clause will not stop local authorities seeking to impose planning conditions that address any specific issue—the natural environment, heritage, archaeology or flood mitigation—where those conditions meet the policy tests in the National Planning Policy Framework. Those protections remain in place and changes to the Bill are not needed to maintain this position.

Housing and Planning Act 2016 (Permission in Principle etc) (Miscellaneous Amendments) (England) Regulations 2017

Lord Shipley Excerpts

Tuesday 21st February 2017 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, these regulations are necessary to ensure the effective operation of permission in principle when it is introduced later this year. Permission in principle is a new route to planning permission that will give developers up-front certainty that sites are suitable for housing-led development in principle, before they need to work up detailed and costly development proposals.

Permission in principle will make the planning process less risky and more efficient and, in doing so, will help tackle the undersupply of housing by increasing the amount of land, particularly brownfield land, with permission to build. We secured the primary powers through the Housing and Planning Act 2016 to bring permission in principle into effect. We consulted on the detailed operation of the policy and, taking account of the responses received, are now developing secondary legislation that we intend to lay shortly before this House. These regulations make a small number of minor consequential and miscellaneous amendments to primary legislation.

Regulation 2 amends paragraph 9 of Schedule 12A to the Local Government Act 1972, which prevents local planning authorities excluding information at a planning committee about an application for planning permission in relation to development on its own land. This amendment will require the local planning authority to comply with this requirement where an application for permission in principle is made in relation to local authority land, thereby ensuring an equal level of transparency.

Regulation 3 amends the Town and Country Planning Act 1990. Section 69 of that Act deals with entries on planning registers, which are public records of planning applications and permissions in the local area. Regulation 3 will ensure that records of permission in principle applications and consents are made publicly available on local planning registers, too. Section 75 of the 1990 Act ensures that a grant of planning permission enures for the benefit of the land. In other words, a grant of planning permission runs with the land and is not personal to the applicant. Regulation 3 applies this long-standing principle to grants of permission in principle, so that they also run with the land and not with the applicant.

Section 96A of the 1990 Act enables a non-material change, for example a correction to a spelling mistake, to be made to a grant of planning permission. This amendment will enable the applicant to follow an expedited process to make a non-material change to a grant of permission in principle. Without this amendment, the applicant would have to reapply for permission in principle to make such a change. The final change we propose to make through Regulation 3 is to amend Section 100 of the 1990 Act, which deals with revocation powers. This amendment will ensure that local planning authorities can revoke or modify a grant of permission in principle in the exceptional circumstances where such a course of action is necessary. This is consistent with the current arrangements for grants of full or outline planning permission.

Regulation 4 amends the Planning (Hazardous Substances) Act 1990 to ensure that in dealing with an application for hazardous substances consent, the hazardous substances authority shall have regard to any permission in principle that has been granted in relation to land in the vicinity. This change will ensure consistency with the arrangements for having due regard to grants of planning permission in relation to hazardous substances consent.

Finally, Regulation 5 will amend the Commons Act 2006 to ensure that when a local planning authority publicises its intention to grant permission in principle to a suitable site on a brownfield register, the right to apply to register that site as a town and village green is switched off. The right to apply is reinstated when a period of 10 weeks passes from when the local planning authority publicises its intention to grant permission in principle without the land being granted such permission. The right to apply is also reinstated when the grant of permission in principle expires. I commend these regulations to the Committee.

[Lord Shipley (LD)]

My Lords, I have two brief questions for the Minister. The first relates to the definition of housing-led development that the Government are currently using. We debated this during the passing of the Bill and, as I understand it, permission in principle can be obtained only in relation to housing-led development. However, questions were posed at the time regarding what happens when the housing element of a development is much smaller than the development as a whole, which may have commercial development at its heart and the housing element is consequential. In other words, can permission in principle be granted for housing on a site where less than half of the total development planned is for housing? A clear definition would be helpful.

The second matter is not so much a question as a request for the Minister to consider producing for the general public a plain-English guide to planning law. There are complexities around the Neighbourhood Planning Bill, which goes to Report on Thursday, and the changes it makes to the Housing and Planning Act, under which these regulations are being made. If one looks at, for example, permitted development regulations, permission in principle regulations and, probably in future, pre-commencement conditions, the question arises of whether there are any plans to consolidate all of them. Perhaps more importantly, it should be made easy for the general public, particularly those who are producing neighbourhood plans, to understand the statutory position of many of these policies in relation to themselves. In other words, it should be written in language that people can understand.

[Lord Jones (Lab)]

My Lords, I thank the Minister for his helpful, clear and brief exposition. I note that he is a compatriot with a truly Welsh title. I have a brief question on Regulation 4—“Consequential amendment to the Planning (Hazardous Substances) Act 1990”—in the knowledge that successive Governments have been encouraging the use of brownfield sites. There must be a relevance to that aspect of policy and this item. What is the consequence of this regulation for builders, local authority housing committees and housing associations? How have the Government reached conclusions affecting the use of brownfield sites? I note the helpful reference to Regulation 4 in the Explanatory Note and the mention of a “hazardous substances authority”. Can the Minister—during the debate, by letter or with help from officials—say what this authority is, who is chairing it and what sort of people sit on it? It is relevant in terms of a genuine debate.

Housing White Paper

Lord Shipley Excerpts

Tuesday 7th February 2017 Lords Chamber

[Lord Shipley (LD)]

My Lords, I agree very much with the noble Lord, Lord Kennedy of Southwark. I welcome some of the proposals in the White Paper but it is not the ambitious, radical plan that is needed to solve the housing crisis. At the outset, I will ask the Minister a specific question. There is no mention in the Statement of the 1 million net new homes commitment by 2020 and there seems to be no new money for investing in the homes we need—yet the Government have an ambition in the Statement for between 225,000 and 275,000 homes a year to be built. Exactly how are the Government going to deliver those numbers?

I agree with the Government that our housing market is broken and I think we should be grateful for that admission. We should be grateful, too, for the admission that the country has not built enough houses and that millions of “ordinary working people”, in the words of the Secretary of State, are saving hard but will not have enough for a deposit for almost a quarter of a century and that, if they are in the private rented sector, they are handing half their combined income straight to the landlord, if they are a couple.

It is true, and the Government are right to say, that we need action on many fronts simultaneously—but I believe that they are not working on as many fronts as they should. There is an acceptance, which I welcome, that brownfield sites must be developed before green belt site. There is, rightly, an acknowledgement that the Government should not be in the business of land banking and that we must free up more public sector land more quickly. There is also an acknowledgement of the need to make it easier for small and medium-sized builders to compete, to encourage off-site factory builds, to support housing associations to build more and to “explore options” to encourage local authorities to build again, including through accelerated construction schemes on public sector land.

I am not clear why the Government are still “exploring options”, because they have had months to get on with permitting local government to start building again—I declare to the House my vice-presidency of the Local Government Association, which has campaigned for years on this matter. Local authorities can borrow prudentially under the prudential code against their housing assets or, quite separately, against their overall assets. I would like to hear from the Minister that there will be government support for local authorities to get building again.

The noble Lord, Lord Kennedy, referred to the changes that the Government seem to be making to the Housing and Planning Act—which was, I hope it is now generally conceded, a very bad Act. We have seen U-turns. To cite just four: the Government introduced pay to stay for those in social homes and then abandoned it when they realised that it was impossible to manage, as they had been warned in your Lordships’ House; they extended the right to buy to housing associations and then made it voluntary; they refused to ban letting fees for renters because it was bad for the market and then changed their mind; and they cut funding for supported housing and then extended it for another year to think further about it. What other U-turns are on the way? What exactly is the position on the compulsory sale of high-value council homes?

Finally, the Government need to apply tests over the coming months to the White Paper. The tests I would apply are these: will it reduce homelessness? I remind the Minister of the Government’s own figures in December that almost 75,000 households are in temporary accommodation. Will it build more social homes for rent in the volume required? Will it make housing more affordable to those on low incomes, to enable those in work on the living wage to afford to live reasonably close to where they work? Will it definitely prioritise brownfield over greenfield development in practice, and will it get local authorities building in the volume they are capable of against their assets?

I have a final request. Not for the first time, I ask the Government to cease using the word “affordable” to describe housing that patently is not affordable for millions of people?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lords, Lord Kennedy and Lord Shipley, for their contributions, but I am rather amazed that neither of them welcomed many of the things that they have been asking for over the past three days in Committee which are contained in the White Paper. There is action on planning fees: a 20% increase for planning departments from the summer, with a further possible 20%, to which we are minded to agree, tied to performance. That is something that I am sure they would wish to welcome.

There are provisions on land banking, on which we were pushed continually in previous sessions on the Bill, and before that, as well as action on brownfield sites. It is also very clear, to answer the noble Lord’s penultimate point, that brownfield land is something that we specifically go for before greenbelt land in the White Paper.

I appreciate that noble Lords have probably not had long enough to study the White Paper, and therefore that some of these points may have been overlooked. They asked what we were doing in relation to councils. We intend to work with them, with all the levers that we possess. The reason there is no immediate action is that this is a White Paper that is out for consultation from today until 2 May. That is why this does not represent legislation. Noble Lords need to be careful what they wish for. There seemed to be an implied criticism from the noble Lord, Lord Kennedy, that there was too much legislation. Some of this we hope will result in legislation and some of it can be carried out without legislation—but this is not legislation but a White Paper.

Clearly, building 1 million new homes—to which the noble Lord, Lord Shipley, referred—is still very much our policy. It was in the manifesto and is still very much there. We are going for a mixture of tenure—again, the White Paper makes that very clear. We are putting fresh new emphasis on the private rented sector and, indeed, we are working with the social rented sector. We provided extra money in the autumn Budget last year for the social rented sector by allowing it to lift the cap. That is also a very positive point about this White Paper. So I am amazed that noble Lords do not wish to welcome some of the points in the White Paper.

The test that the noble Lord, Lord Shipley, applies is a fair one. Will the White Paper reduce homelessness? I believe that it will. Also, of course, other things are happening with relation to homelessness. As we know, with all-party support, the Homelessness Reduction Bill will be an important part of that panoply of measures, and that comes before us after our Recess, towards the end of February, when it will get its Second Reading in this House.

I was asked what we were doing in relation to rough sleeping. We doubled the grant for that recently, as noble Lords will be aware. Another measure that we have, quite rightly, been encouraged to provide for is woodlands. Again, woodlands are featured here. We want to protect woodlands with measures in the National Planning Policy Framework. Again, this is in the White Paper.

There is an awful lot of radical stuff which, quite rightly, Peers across the House have been calling for and which is in the White Paper. So I think that the welcome given to it—if welcome it were—was far too muted as regards the content of the White Paper.

West of England Combined Authority Order 2017

Lord Shipley Excerpts

Tuesday 7th February 2017 Lords Chamber

[Lord Beecham (Lab)]

My Lords, this part of the country owes a great deal to Conservative Governments. This is the third local government reorganisation that the Conservative Government have effectively imposed on the area in the last 40 years. We had the creation of Avon County Council in 1974, its abolition and replacement with a number of unitary authorities, and now we have the combined authority, while in addition of course we have an elected mayor in Bristol. It is an interesting case of an area being subjected to a number of experiments in local government.

As the Minister may have said, although I did not quite catch a reference to it, one council, North Somerset, ultimately declined to be part of the new organisation. It is interesting that the Secondary Legislation Scrutiny Committee has reported in some detail on the outcome of such consultation as did take place in the remaining three authorities. Bristol is a large and historic city with a population of around 400,000, and we also have South Gloucestershire and Bath and North East Somerset, with a total population of what I imagine probably runs to about 800,000 people, of whom something fewer than 1,700 responded to the consultation exercise—with rather different views. In Bath and North East Somerset, of those who did respond a small majority disagreed with the proposal to go ahead with the combined authority, but of course they were outvoted because the vote had been taken across the whole area by residents from Bristol and South Gloucestershire. In one sense there was a legitimate majority among the very small proportion of the electorate who voted.

This agreement is rather different from those we have discussed previously which have gone beyond the basic economic functions referred to here. There is definitely a good case for putting them together in any given area. In Greater Manchester, people are looking at health and social care as well as a whole range of issues that go further along the devolutionary model than this. However, I suppose that there is always the possibility of seeking further devolution in the future or, as is more likely, having it imposed upon them by the Government.

It is interesting to note that the pill, such as it is, is sweetened by the customary reference to additional funding over a 30-year period amounting to £30 million a year. This has been offered to a number of areas. It does not seem to alter very much in proportion to the number of residents in the area, or any other factor. It has to be seen against the background of what is happening to the finances of the local authorities that constitute the new combined mayoral authority. In Bristol, for example, an annual cut of £83 million a year was accumulated between 2014 and 2017. That will be doubled by 2020; that authority alone will lose £166 million a year from its budget and services. I do not have the figures for Bath’s losses to date, but it has projected a further loss of £37 million a year. South Gloucestershire had lost £56 million a year by the current year and will lose £27 million a year over the next couple of years. The total annual loss—annual cuts—imposed on these authorities, which are to be rewarded between them with £30 million a year, will be £280 million a year by 2020.

That is the background against which this wonderful devolution agenda is being progressed. It really is a three-card trick; I cannot find any other way of describing it. It is not to say that the bringing together of these authorities to work on strategic issues is not in itself valuable, but to describe this as a wonderful devolution of power is a grotesque misinterpretation, not by the Minister personally but by the Government as a whole, of the reality facing those councils and their communities under whatever system, mayoral or otherwise, they will have to live with. Frankly, the Government would do better to look at the main line funding of local authorities than by creating these structures with a fairly minimal contribution that in no way off-sets the problems they face.

Having said that, these Benches will not oppose the order. We cannot, because we have not tabled a Motion to that effect. This is a decision that has been taken locally. They think it is the best course for them and we have to accede to their view. The reality is that they will continue to suffer massively, notwithstanding the relatively small amounts the Government will provide by way of extra funding.

[Lord Shipley (LD)]

My Lords, the west of England has actually seen the strongest economic recovery outside London since 2008. Its economic output is reported by the Resolution Foundation to be 7% higher than its pre-crisis peak, while the output in many British cities has yet to return to pre-crisis levels. Its employment, at 76.8%, is higher than any other city region in Britain. That is the background to this combined authority order. I think that the order will enable the west of England to build on the success it has had in riding out the financial crisis—but we need to note that, according to the Resolution Foundation, rising house prices and rents are swallowing up the gains in living standards made from the strong economic performance of the three councils that comprise it.

I have three specific questions for the Minister. I understand that North Somerset has made a decision not to be part of the combined authority. However, given its very close proximity to Bristol, I have not understood how the transport investment decisions will be made and who will be responsible for what.

Secondly, will the Minister confirm that the powers of the mayor for the west of England combined authority will be the same as those of the other combined authority mayors in other places? The legislation is slightly different because it covers slightly different matters. Therefore, I seek assurance that the mayor does not have any form of enhanced power against a comparison with, say, Greater Manchester or any of the others.

Thirdly, the mayor for the west of England has the power to pay grants; there are other powers, but there is a specific power to pay grants. I would like to be reassured that the same involvement of the combined authority in reaching decisions and the same rights and powers for each council separately have to be considered by the mayor. In other words, this is not simply a mayoral order where a single person has an absolute power, subject to scrutiny and audit, to make a decision without the agreement, first of the combined authority and, secondly, of the constituent councils.

[Lord Cope of Berkeley (Con)]

My Lords, as the noble Lord said just now, this new authority covers most of the area of the former county of Avon. As it turned out, my time in another place neatly bracketed the existence of the county of Avon. It came into being under earlier Conservative legislation in April 1974, a month after I was first elected, and it was abolished in 1996, a few months before I left the House of Commons —involuntarily, I may say.

The county of Avon always made administrative sense in governing the area that it did, but it was much disliked from start to finish, and unlamented when abolished. That legacy lingers and was reflected in the consultation responses. Governments muck about with traditional loyalties at their peril. I do not think that this change runs the same dangers to the same extent, but it will require first-class leadership—and it will flourish only if the constituent councils co-operate. It could provide vision and the potential to pull together forces, both public and private, for the good of our area and to help it to continue to flourish—which, as the noble Lord from the Liberal Benches said, it is doing at the present time. I wish it every success.

Neighbourhood Planning Bill

Lord Shipley Excerpts

Committee: 3rd sitting (Hansard): House of Lords
Monday 6th February 2017 Grand Committee

[Lord True (Con)]

My Lords, I first declare an interest as leader of a local authority—a London borough council. I must apologise to my noble friend the Minister and to other Members of the Committee. I was unable to take part in Second Reading because we had a full council meeting that day and I could not stay until the end of proceedings. I am also afraid that when the Bill was in Committee last week, I was abroad on an unbreakable work engagement and so was unable to take part in the first two days. However, I have read the debate carefully and rise to speak with due humility. Having read the proceedings, I hope my noble friend Lady Cumberlege will not be disinclined to intervene—I enjoyed reading a large number of her interventions.

I say to the Committee how grateful I am to my noble friend the Minister for his openness and, through him, the willingness of his officials to discuss difficult issues. That needs to be put on record immediately. As my noble friend knows, I am a little concerned about where these proposals are intended to go—we could be bringing out a Dreadnought to deal with problems on the local public pond which, frankly, could be sorted out. I am grateful for the elucidation that my noble friend set out, but we need to understand a good bit more about how these regulations might work. For example, there is a requirement that the applicant must give written consent agreement. How many pages of regulations will there be to say in what terms that will be? Will it have to be legally sanctioned? When will it have to be delivered, et cetera? It says also that the Secretary of State must carry out a public consultation before an order is made. How long will that take? With whom will it be? Will it be in an individual area or across the nation?

We all want to get development going more quickly. But my concern is that, in some circumstances—perhaps the noble Baroness opposite pointed to one when she talked about fear of flooding—pre-commencement conditions actually enable development to happen more quickly and with more consent, rather than, as is assumed, every council necessarily trying all the time to deter. I want to look very carefully at the detail of these proposals.

I am puzzled by the statement in subsection (2)(a) of the new section, to which the noble Lord opposite has referred, that the condition must be,

“necessary to make the development acceptable in planning terms”.

Make it acceptable to whom—to the local community, to the neighbourhood, to the people who will be affected or to the planning inspectorate in Bristol?

On the other hand, I cannot follow the noble Lord opposite—even though I understand where he is coming from—in proposing in his Amendment 37 setting up a mediation process. I spoke about this on the previous planning legislation we had before us, in which the Government set up a sort of national arbitration service concept. If one does not define this very closely, there is a risk that everything would automatically go to some sort of statutory arbitrator. That in itself could also clog up the system. With all the good will in the world, it may be that the amendment in the name of the noble Lord opposite is as guilty of causing potential obstacles as overregulation would.

I am not going to support any proposal that this provision be struck out—I see there is an amendment to that effect. I understand the Government’s concern to get development but we have not seen enough evidence. Between now and Report, and perhaps when my noble friend replies, we might get to understand a little better where and when the steel of a Dreadnought will be seen emerging from the department. I am a passionate localist: so much in recent planning legislation is about centralism and making things harder in the guise of getting development. I do not accept the view that local authorities are always against development. I look forward to hearing more from my noble friend, today and between now and Report, on the justification for these proposals.

[Lord Shipley (LD)]

My Lords, I have serious concerns about Clause 12, particularly about subsections (2), (5) and (6) in new Section 100ZA on pages 10 and 11. The Government are going to have to rethink this very carefully because, as it stands, Clause 12 will cause more problems than it solves. We have heard many reasons for this, but I will go further. What discussions have been held with the Royal Town Planning Institute? I ask the Minister that because it has sent a briefing on the Bill which states, broadly speaking, that there are advantages to pre-commencement planning conditions:

“These have certain advantages to applicants who may not be in a position to finalise details of a scheme but wish to secure a planning permission as soon as possible. They have advantages to local authorities because councils may have in practice limited legal ability to enforce conditions once a scheme is underway. Conditions are useful to the development industry in general because they enable schemes to be permitted which otherwise might have to be refused”.


If they were refused it would take longer and, as the noble Lord, Lord True, said, you may get faster and better planning decisions as a consequence of having pre-commencement conditions. Refusal of planning permission should, in general, be avoided because of all the complexities which are then introduced.

In telling the Committee what discussions the Government have had with the Royal Town Planning Institute, will the Minister explain what consideration they have given to the 15th report of the Delegated Powers and Regulatory Reform Committee, which was written substantially on the subject of Clause 12? It points out that,

“the national policy framework confirms that planning conditions should only be imposed where they meet six tests. They must be: necessary; relevant to planning; relevant to the development to be permitted; enforceable; precise and reasonable in all other respects”.

So that already exists within the National Planning Policy Framework.

Paragraph 12 of the DPRRC report states that,

“the Government want to take this power because ‘there is evidence that some local planning authorities are imposing unnecessary and inappropriate planning conditions which do not meet the tests in national policy, resulting in delays to the delivery of new development’”.

There may well be such examples. If they do not meet the six tests, there is already a legal statutory requirement to demonstrate that the six tests are applied. But in paragraph 26 of the report, the DPRRC asked for,

“specific examples of pre-commencement conditions to help us understand the effect of subsection (5)”—

which my noble friend Lady Parminter talked about—because:

“None appeared to be included in the explanatory material accompanying the Bill”.


The committee had to ask the DCLG to provide a list of,

“details that developers have had to provide to local planning authorities before building works could begin”.

There are nine things on that list. With my long experience in local government, I can see a very good case for all nine of them. I will come back to this, with some practical examples of what goes wrong if you do not have pre-commencement planning conditions. But when I read that,

“installation of superfast broadband infrastructure”,

is not deemed to be required as a pre-commencement condition, I think this is wrong. We ought to have agreement on superfast broadband infrastructure, since within the next few years every part of the country is going to have it.

I will say more about this issue when we debate whether the clause should stand part of the Bill, but it seems to me that if that is the extent of the problem, the things listed are not in themselves significant problems. I am really starting to think that Clause 12 is not a good clause. We will look at this further on Report, but at present I have to say that this clause will cause more problems than it solves.

[Baroness Andrews (Lab)]

My Lords, I will follow the noble Lord, Lord Shipley, in his masterly demolition of Clause 12. My first point concerns the notion of relevance. Clearly, the committee really struggled with notions of relevance and found itself quoting, in paragraph 13, the memorandum, which illustrated,

“examples of the types of condition that the proposed power would prohibit. They include: ‘those which may unreasonably impact on the deliverability of a development, those which place unjustifiable and disproportionate financial burdens on an applicant, or those which duplicate requirements to comply with other statutory regimes’”.

That could probably cover every single impact of every aspect of development. These are vague and general in the extreme, so no wonder the important conclusion of the committee was that it would be,

“inappropriate for the Government to be given a power which could be used to go well beyond the stated aims of the Bill”.

Were these regulations to be enacted, the committee recommended that,

“the affirmative procedure should apply to the exercise of the powers”.

Do the Government agree that if this clause stands, the affirmative procedure will indeed be adopted?

The Delegated Powers Committee, on which I had the honour to serve for many years, does not make such recommendations lightly. This is a very serious indictment and a very serious conclusion. Do the Government intend to accept that the affirmative procedure should apply in this case?

--- Later in debate ---

[Baroness Cumberlege (Con)]

My Lords, I too oppose the question that Clause 12 stand part of the Bill. I have been tedious beyond endurance and I thank the Committee for its patience. At each stage I have tried very hard to ensure that there is a separation between the powers of the Secretary of State and the responsibilities of local authorities, working with their local communities. I share the deep concern of the Delegated Powers Committee, which the noble Baroness, Lady Andrews, and the noble Lord, Lord Shipley, mentioned. It has deep reservations. We must be careful not to brush away the work of that committee and the recommendations it makes, because it is the watchdog for our legislative processes and thoughts and what we bring forward. I was interested that my noble friend the Minister said that he will take real cognisance of what it has been saying and will try to meet those concerns.

One of the things that surprises me in all of this is that the legislation that the Neighbourhood Planning Bill is based on is the Localism Act. We know that this concept has been warmly welcomed by so many who have embraced neighbourhood plans, and we know that there are many more in the pipeline. In reply to an amendment last Tuesday, the Minister told the Committee that the Secretary of State’s,

“current policies for intervention strike the right balance between the national interest and local autonomy”.—[Official Report, 31/1/17; col. GC 176.]

I have to say that in my area the experience was to the contrary. There was no planning issue of national importance and yet the Secretary of State intervened, with devastating results.

However, I am encouraged by my noble friend’s reply to the noble Baroness, Lady Andrews, when the Committee met last Thursday. He quoted his honourable friend Gavin Barwell as having said that,

“as long as authorities have policies to address their strategic housing and other priorities, we want them to have more freedom in the type of plan that is most appropriate for their area. The Government have put local and neighbourhood plans at the heart of the planning system. We put local authorities and communities at the forefront of shaping a vision for their areas and deciding how to meet their development needs. The existing regime reflects the understanding that local planning authorities, together with local communities, are best placed to set out future development for their local area”.—[Official Report, 2/2/17; col. GC 261.]

I say amen to that. That is absolutely what we want. That is what we are trying to achieve through this Bill.

I have referred almost exclusively to the Secretary of State and sometimes the ministerial team. But this is not personal and I want to get on the record how much I appreciate my noble friend Lord Bourne’s approach to the handling of the Bill. He has said he will listen and—I have to say, with great patience—he has. He has said time and again, “We will work with noble Lords in an inclusive way”, and he has and is doing so. He has asked for positive engagement. We are willing. Like Barkis, we are more than willing. I sense my noble friend is also willing to negotiate worthwhile amendments to improve the Bill. I welcome that and I look forward to his useful amendments when we come to Report.

I turn to Clause 12 specifically. As I have previously said, seeking that a whole clause should not stand part of the Bill gives noble Lords an opportunity to see the clause as a whole. My concern with the totality of this clause is that, contrary to what I am trying to achieve and what my honourable friend Gavin Barwell has said in another place, it does nothing to separate the powers of the Secretary of State from the responsibilities of the local planning authorities. My noble friend Lord True, whom I thank for his kind comments, and the noble Lord, Lord Kennedy, said that the clause does not mention neighbourhood planning at all. In addition, the whole clause is about the Secretary of State’s determination to control the work of local planners. The tenor of this clause is therefore that the Secretary of State does not trust the people. He does not trust local planners, who know the area best.

New subsection (1) gives the Secretary of State unlimited powers to waive conditions that may be very inappropriate to particular areas and populations. Again, therefore, we see the heavy hand that continues through nine new subsections, and the point of the Bill is quietly buried; it has nothing to do with neighbourhood planning. Surely the imperative is for local planning authorities to deliver the strategic policies of the Secretary of State, but apparently that is not enough.

I very much respect people who are on local authorities at the moment. When I read about them and look at what they are doing, it seems that they are working their socks off to deliver what is needed. But apparently, this is not enough, and the Secretary of State says that he must come in and tell them what to do and how. Therefore, as the Minister is fully aware, in our area there is total disillusionment with the neighbourhood planning process and fury at the intervention—the interference—in the minutiae of local planning from above.

The Minister went through all the new subsections in Clause 12, and I thank him for his full explanation. However, he did not address the issue: why is this clause necessary? Why does the Secretary of State risk antagonising local planners on a whim, removing planning conditions? Why does this require intervention by the Secretary of State? Planning pre-commencement conditions are important. They ensure the quality of development and its empathy with the local area. The noble Baroness, Lady Parminter, put it so well, saying that this is the essence of planning.

I was involved in a case years ago, in which 171 identical houses were to be built along a snake-like road. We turned that down, fought appeals and won them. We now have a development that has open spaces and all sorts of different housing: bungalows, terraced housing, and detached four-bedroom houses. It is a lovely area, and so different to what it would have been like if we had agreed to the original application. Conditions are important, because those are the ones we put in and which we eventually managed to get.

It is therefore about the quality of development. I pay tribute to the forensic way the Minister took us through the different new subsections. However, it is not good enough. We are losing the whole principle of neighbourhood planning and localism. I very much look forward to the letter that my noble friend will send, and I sense that there is already some rethinking on how this clause and the new subsections need to be amended. However, I urge him to go further. Can he be brave, and in his letter give us some hope that this clause may be deleted altogether? It is irrelevant in the Bill.

[Lord Shipley]

My Lords, I have come to the conclusion that Clause 12 should be deleted from the Bill. I now see no grounds for it being continued with, because the evidence has not been satisfactorily produced. It comes down to this: developers want to build and sell houses, and residents want to enjoy living in them. Sometimes those two objectives are not compatible because builders can often not do what residents expected of them.

--- Later in debate ---

[Lord Lansley (Con)]

I apologise for interrupting the noble Lord, but I am confused. I thought the Committee was talking about pre-commencement planning conditions—which are required to be discharged before the building commences—not other conditions that may have to be complied with during the course of building.

[Lord Shipley]

I do not know whether the noble Lord has read paragraph 26 of the report of the Delegated Powers and Regulatory Reform Committee, but it says:

“We wanted to see some specific examples of pre-commencement conditions to help us understand the effect of subsection (5)”.


This was commented on by my noble friend Lady Parminter. The DCLG gave a list, setting out,

“details that developers have had to provide to local planning authorities before building works could begin”,

the first of which is,

“full details of a play area”.

I cannot see what the problem is with a builder telling the local planning authority where the play area will be and what will be on it. Secondly, there is a complaint—

[Lord Lansley]

It is not my job to defend what the DCLG is saying, but if that is treated as a pre-commencement planning condition then it would be objectionable. If it was simply a condition applied to the consent, to be pursued in the course of building, it would be perfectly okay.

[Lord Shipley]

As the noble Lord might understand, the problem is that once building has started it is much more difficult to get agreement on some of these details. The point that the Delegated Powers and Regulatory Reform Committee has drawn to our attention is that there is nothing to prevent a builder telling us what the full details of the play area are planned to be. Indeed, if I was buying the property I might want to know that, because I might have children who would be interested in using it.

The details of all lighting on the development, including siting, design and lux levels, are seen as unnecessary pre-commencement conditions. They are not. As I mentioned, the installation of superfast broadband infrastructure is central to a housing development. There are others. I noticed,

“the full details of soft landscaping”.

Yes please: these are important. When a developer has sold all the houses on a site, it is much more difficult to get the soft landscaping put in to the standard that it should be. Also,

“precise location of bin collection points for specific plots”,

is seen to be an unnecessary pre-commencement condition. If you are living there, it may be that no one told you that you would have to take your wheelie bin 50 metres to the collection point because the bin lorry cannot turn round. Some of these are real-life examples. We need to be very careful when criticising local planning authorities for having set conditions that they think matter.

Because this is based on the complaints of housebuilders, will the Minister, when he replies in the letter we will be sent, copy in the replies to the letter the department sent to all the local authorities about these complaints to get their view on whether they felt builders’ complaints were justified? I very much hope that the department has taken on board the views not just of builders, but of the local authorities concerned.

I do not wish to detain the Committee any further, but the case for Clause 12 is no longer proven. As things stand, I do not think this can form part of the Bill any longer.

[Lord Lansley]

First, I apologise to the Committee: like my noble friend I was unable to attend the Committee last Thursday because I was abroad, but last Tuesday, while noble Lords were meeting here, I chaired a workshop that the Cambridgeshire Development Forum —once again, I declare my position as its chair—held with planning officers from Cambridge City and South Cambs councils. It considered a wide range of issues. I thought it important to talk to planning officers directly, not least to inform some of my contributions to our debates.

I want to speak because built into the structure of Clause 12—I address my remarks in particular to new subsection (5)—is the intention that best practice should be consolidated in a way that is likely to help us in our objective of building more houses more successfully and more speedily. What it comes down to is this: my colleagues on the forum and I spent a lot of time last year finding out some ways the planning process could be improved. Of 30 areas this was just one—it was not necessarily even the most important one, but it was important. There was a recognition among those in the development sector locally that there are issues with the way planning conditions are constructed. Conditions are imposed that are often non-compliant with the test that they should be imposed only where they are necessary and relevant to planning and to the development to be permitted, and where they are enforceable, precise and reasonable. None of us wants to end up with unnecessary appeals because of excessive or inappropriate conditions. That delays everything and increases costs for everybody.

I am prompted also by the speech of the noble Lord, Lord Shipley. He talked about conditions generally. Here we are talking specifically about pre-commencement planning conditions. There is a considerable problem, which I can see in the evidence the Government have given, in that if one has too many unnecessary pre-commencement planning conditions, the risk is that the discharge of those conditions will add to the delay. In fact, when one asks developers, as I have, it is often the issues associated with the discharge of those conditions that create more problems for development than agreement to them in the first place.

However, best practice is very clear. Joint working is what everyone should aim at, so as to reach the point where the committee making the decision can see what the agreement between the developers, the applicants and the local planning authority is likely to look like. It is a necessary part of informing members of the character of the decision they should be making. What we do not want is to allow some of the things that inhibit best practice—arising, for example, from planning officers’ inexperience. It was made clear that inexperienced planning officers simply load in conditions because they think that is the way to cover their backs. Experienced planning officers get their conditions right in the first place, so we want to encourage a process in which experienced officers negotiate and agree conditions with applicants.

We want to encourage applicants, which this legislation would do, to take the initiative and propose draft conditions. Obviously, those conditions should in large measure be standard conditions, and the structure of the legislation will encourage the use of such conditions, which should expedite matters. It will also inhibit the prospect of some of kind of last-minute ambush in the committee, because the conditions must necessarily be agreed with the applicant or the application must be referred back. If they are not agreed they can be refused, so I am not sure I understand the argument that authorities would be hesitant about refusing an application where a pre-commencement planning condition has been sought that is supported by planning policy in the NPPF. Why would they not refuse it when it is their job to pursue the appropriate response to an application that does not meet those criteria?

Neighbourhood Planning Bill

Lord Shipley Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 2nd February 2017 Grand Committee

[Lord Tope]

I know there is a temporary cessation, but give it another year or two.

I strongly support what my noble friends have said in proposing the amendment. However, there is a particular problem, as my noble friend Lord Greaves said, in all larger urban areas—and Greater London is the largest urban area of them all. The problem is exacerbated because until comparatively recently Greater London was not allowed by law to have any parish councils. Since that became permissible under law—I think a little less than 10 years ago; I cannot remember exactly—there has been only one parish council formed in the whole of Greater London and no others. I do not know how many neighbourhood forums there are in London, and I do not suppose the Minister has this information at his fingertips, but, if it is available, I would be interested to know how many neighbourhood plans have been formed, or are in the course of being formed, in Greater London. Perhaps that will serve to illustrate—or, praise be, to deny—the point that the noble Lord, Lord Horam, and I are making. It is a difficult problem, and while I agree with my noble friends that parishing and parish councils are particularly useful and beneficial to neighbourhood plans, if we are to wait for the whole of Greater London to be parished then neighbourhood plans will be a very long time coming. Clearly, that is not the answer. It is a problem in other places too, but particularly in London.

In London, neighbourhoods are often named after former villages. So we know what a neighbourhood is, but it is a heck of a sight more difficult to decide where the boundaries of those neighbourhoods are. They are most certainly not the ward boundaries, because the wards, particularly in London, are based on arithmetic and not on community at all. For administrative convenience, a neighbourhood forum is likely to adopt ward boundaries, at least in part, but they are not necessarily the historic neighbourhoods. That is a particular problem in London.

I have supported parishing and parish councils all my political life, but while it may be desirable, it will not happen quickly enough for the purposes that we are debating today. Therefore, I would be very interested if the Minister is able to say something about the particular issues and problems in London, to which the noble Lord, Lord Horam, and I have referred.

[Lord Shipley (LD)]

My Lords, I hope the Minister will understand that this is a very important issue. The reasons for that have been extremely well explained in the speeches that have been made so far. The noble Lord, Lord Horam, made an extremely helpful and important point, as did others, about the problems that exist. In a nutshell, those problems can be explained as follows. On the first day of Committee, my noble friend Lord Stunell pointed out that emerging neighbourhood plans are showing a greater appetite for more housing, precisely because they have more say in the way in which they build their community. In other words, it is in all our interests to promote neighbourhood planning. However, the second problem is that only around one fifth of the country is engaged in neighbourhood planning. As we know, in those places that do not have parish councils, it is a slower process. But as we also know, you do not have to have a parish council to undertake the neighbourhood planning process.

I hope the Minister will be willing to look at this issue between Committee and Report, because we will be coming back to this on Report. The Bill says that neighbourhood planning is important and must become more important. But as a consequence of that, local planning authorities must do more to promote neighbourhood planning. It is for them to decide whether that is through the creation of more parish councils under the review procedures that exist or through the other means that exist. This is a very important issue. It is not going to help the Bill if we simply end up with not many more people engaged with the process.

[Lord Kennedy of Southwark]

My Lords, I have only a few brief remarks to make on this amendment. To go back again to my own ward, in Crofton Park, we have a neighbourhood forum and are tempted to set up a neighbourhood plan. We are one of the places in London that is trying to do this. It is a difficult process, but I certainly see the value of it. My fellow councillors and I, along with community members, are working towards that. We hope to get it approved and to put it to a referendum among local residents.

The noble Lord, Lord Tope, is right: there is only one parish council in London, and it is the Queen’s Park parish council in Westminster. It was set up in 2014 after a referendum, and it is based on the Queen’s Park ward of Westminster City Council, which is a Labour-held ward—there are not that many Labour-held wards in Westminster—but it is non-political. I do not think that parties contested the election there, so it very non-political, and by all accounts it works very well and is a very good thing.

The noble Lord, Lord Greaves, was right in what he said about parish councils and neighbourhood plans. They are largely in more rural areas. I know the east Midlands well, and I have come across the Deeping St James Parish Council in Lincolnshire very close to Peterborough. I have many colleagues and friends who are involved in that parish council, and it works very well. They certainly look at their rural area and are very conscious of the planning that takes place there. I accept that in many cases it is as the noble Lord described.

The only issue I have with the amendment is that this is a new duty for local government and perhaps funding should be addressed as well. Perhaps the Minister will address that when he replies.

--- Later in debate ---

[Baroness Andrews]

My Lords, in the absence of the noble Baronesses, perhaps I can speak to the amendment. This is completely spontaneous, but I feel quite strongly about it. The issue is one that surfaced very conspicuously in the Select Committee on the Built Environment; that is, the absolute necessity of planning places that essentially support and nurture the health and well-being of the whole community. Plans must explicitly include designs for such spaces, rather than spaces that, at their very worst, encourage criminal activity because they are small and narrow and do not allow for sufficient activity. It is very interesting that Milton Keynes, in its 50th year, has been praised for the quality of its environment and its particular ability to promote well-being through its green spaces. We can all agree that education and health are part of the fundamental infrastructure of our communities. Good schools, good health services and good health opportunities are part of what makes a community successful. I will leave it at that. The amendment deserves a longer debate, but in the absence of the noble Baronesses, I want to put my comments on the record.

[Lord Shipley]

My Lords, I thank the Minister for tabling Amendment 19, which lies in this group and derives from a lengthy debate in the other place. It seems extremely important to address specifically the housing needs that result from old age or disability, so I hope that the amendment will secure support. Regarding the other amendments in this group, a number of these issues are very important and will be debated elsewhere in our consideration of the Bill in Committee. But some of them will also depend on what is actually said in the housing White Paper, which will be published at the beginning of next week. In that sense, we have to reserve our positions with a view to waiting for Report.

[Baroness Cumberlege]

My Lords, my name is attached to that of the noble Lords, Lord Beecham and Lord Kennedy of Southwark, on Amendment 17. It is quite right that we should set our priorities in these documents so that the community knows exactly what is in our minds. Its provisions as set out in paragraphs (a) to (e) are really important.

First, Amendment 17 refers to affordable housing. In an earlier debate I think it was the noble Lord, Lord Tope, who said something quite true: that very often the conversion to offices does not allow for affordable housing. Some of the units being built really do not accommodate family-sized residences for people who want to live there, so affordable housing is critical.

Secondly, the amendment refers to,

“energy efficiency in dwellings and infrastructure”,

and we certainly want warm homes. Since I first got involved in planning, the building regulations have become very interesting. We built an office near to us and found the other day that the amount of insulation and everything that we have to put into it because of building regulations was really encouraging. We need to ensure that that continues.

Thirdly, the amendment refers to,

“flood protection for the local area”.

We sit between two towns. They were both seriously flooded and that caused anguish to those involved, so that is really important. More than that, when we design the sites and think about where housing will go, flooding really must be a consideration because to build on the flood plain is a disaster, as we have seen in these two towns. We should avoid it.

Lastly, the amendment refers to,

“green spaces and public leisure areas”.

In towns and cities, the green spaces are very often described as the lungs within an area. They allow people to breathe. I think of children desperate to get out of their houses and kick a football around or play, or do whatever they want. That also applies to young people and people of a certain age. It seems important that they also have that opportunity, so I strongly support this amendment.

I pay tribute to my noble friend Lord Bourne, who really has listened carefully to what people have said to him. I very much welcome his Amendment 19. I also thank very much the noble Baroness, Lady Andrews, for coming in on the spur of the moment to move Amendment 17A for the two noble Baronesses who are unable to be here. She is absolutely right that we need to ensure that what we build is healthy and will improve the quality of life for the people in those areas. It is important that we see the thing in the whole, not just bricks and mortar. I very much support these amendments.

--- Later in debate ---

[Lord Beecham]

I have some doubts and concerns about these provisions. How does Clause 7 relate to combined authorities? How does it fit with the devolution proposals if:

“The Secretary of State may direct two or more local planning authorities to prepare a joint development plan document”?


A number of areas are about to elect a mayor and become a combined authority. Within that combined authority, however, there will still be constituent local authorities. How does the provision in Clause 7(2) apply to those areas? Can the Secretary of State direct two or more of the authorities within that area to prepare a joint development plan document, when there is an elected mayor and a whole new structure is being created?

Clause 8, on the county councils’ default powers, states:

“Schedule 2 makes provision for the exercise of”,


those powers,

“in relation to development plan documents”.

That assumes a straightforward situation of a county and districts, but in at least one controversial area, I think I am correct in saying that a court case is proceeding about the proposals which affect some parts of Nottinghamshire County Council and the Sheffield-led new combined authority. That may not quite be its name but the Minister will understand what I am talking about: the mayoral authority that will encompass Sheffield and adjoining authorities, to which I think two Nottinghamshire districts wish to affiliate for some purposes. They will, however, remain part of the county council for other purposes—unless of course this is seen, as the noble Baroness implies, as a step towards a back-door reorganisation of local government. Some of us have concerns about that.

How would these default powers affect that area, assuming that the mayoral authority is created with these two district councils? I think I may have said Nottinghamshire, but Derbyshire is in fact involved in this, rather than Nottinghamshire. There may be a similar problem in Nottinghamshire. How would those arrangements be affected by the provisions of Clause 8? I quite understand that the Minister may not be able to answer that immediately but, if that is the case, he will no doubt write to me.

[Lord Shipley]

My Lords, I shall be very brief but want to ask the Minister four specific questions about Clause 8, which will help us when we come to Report. Clause 8 was a late addition to the Bill; it was not in the initial draft that went to the House of Commons. It would help if the Minister could explain why it was felt necessary to include it.

My first specific question is: can a county refuse to undertake the work and, in that case, what would happen? Secondly, can a county subcontract the work to somebody else, which would presumably include the use of consultants? Thirdly, if it does, how is local knowledge about the district in question going to be guaranteed in constructing the plan? Fourthly, with reference to Schedule 2, it looks to me as though a county can charge a district whatever it likes, so what action do the Government plan to ensure that cost recovery is reasonable?

[Lord Kennedy of Southwark]

Before the Minister responds, on the point raised by my noble friend Lord Beecham about difficulties with the Sheffield city region, my understanding is that it is North East Derbyshire District Council and Chesterfield Borough Council in Derbyshire which wish to join. I think that Bassetlaw District Council in Nottinghamshire may also want to join. The legal action is being taken by Derbyshire County Council, which of course partly comprises the north-east Derbyshire and Chesterfield areas. The problem is with three districts in two counties, but one county council has raised the legal action on the points that my noble friend outlined.

--- Later in debate ---

[Lord Kennedy of Southwark]

On that specific point, perhaps when the Minister responds he can tell the Committee how the policy has arisen. Where are the examples of the councils that do not have these plans? Why do the Government think it so necessary to take such a wide-ranging power, as the noble Baroness asked? Clearly, there must be some very serious problems that the Government want to address for them to take such wide powers. I would love to be informed about what those are.

[Lord Shipley]

The Minister kindly answered three of my four questions. The missing answer was on the right of a county to charge whatever fee it wishes to. It is an important issue and, if he prefers, the Minister can write to me, but in Schedule 2, lines 31 to 40 rather suggest that a county can charge a district whatever it wishes.

[Lord Bourne of Aberystwyth]

I shall take up those points. In response to my noble friend Lady Cumberlege, this power will be used sparingly, and the Secretary of State will have to give reasons. In preparing their joint plan, the authorities concerned can, if they wish, reject the plan—they are not obliged to adopt it. I repeat that there is absolutely no hidden agenda here. As my noble friend correctly said, it is certainly better where joint plans emerge. That is very much the view of the Government and the Secretary of State. We anticipate that that will be the case in the vast majority of circumstances. We know that, occasionally, local authorities do not necessarily have the capacity. There will be cases—even if there are not, we still have to guard against the possibility that there could be—in which the Government will have to have a backstop power in relation to these matters. That is what this is. The Secretary of State has to give reasons. The authorities concerned can turn down those reasons.

In relation to the point made by the noble Lord, Lord Shipley, I am advised that there is cost recovery for the work done. I hope that answers his question. If I am wrong on that, I will correct it in a letter.

[Lord Shipley]

I am happy for the Minister to write to me. Clearly, we need to define what cost recovery is, because the definition of necessary costs currently lies with the county and not the district. There has to be a system that everybody understands.

[Lord Bourne of Aberystwyth]

That is an entirely fair point. As I said, there is a system to ensure that costs may be recovered, but I will elucidate that, if I may, in my letter.

I apologise, but I have forgotten the point that the noble Lord, Lord Kennedy, made.

--- Later in debate ---

[Lord Shipley]

My Lords, I support the noble Lord, Lord Beecham, in his amendment. I simply ask for the Minister’s guidance, either now, in writing or at Report. I draw his attention to the Fixed Odds Betting Terminals All-Party Parliamentary Group, which launched a report earlier this week on the subject. It drew attention to the London Borough of Newham, which has succeeded in using cumulative impact assessments to curb the development of new bookmakers. Broadly speaking, the noble Lord’s amendment is about change of use and new betting offices and payday loan shops. The APPG report was about fixed-odds betting terminals, and I am not sure that it directly related to the location of payday loan shops. However, there is clearly a problem with cumulative impact. Newham Council has adopted policies to curb the development of new bookmakers. The APPG says that:

“While being a helpful mechanism to stop the expansion of future bookmakers, this would not, of course, provide a mechanism to deal with current bookmaker premises and clustering”.


There is, therefore, a very serious issue here and it would be helpful if the Minister could look at it before Report, with a view to having a further debate at that point.

[Lord Kennedy of Southwark]

I will make a couple of brief comments before the Minister responds, including one about payday loan shops. I should declare in this context that I am a director of a credit union—London Mutual Credit Union, which is based in London and covers four London boroughs: Southwark, Lambeth, Westminster and Camden. We are also the credit union to the Armed Forces: a number of our members are from the Armed Forces.

I was conscious that the most reverend Primate the Archbishop of Canterbury, and others, encouraged the Government to take action in the previous Parliament in respect of the interest rate, and that is very welcome. There is, however, an issue—we certainly get it because our main office is in Heaton Road in Peckham. About 10 doors along is The Money Shop. We often get 50 to 60 applications to join the credit union but also people walking in off the street. Often they have been to The Money Shop and, because of difficulties there, people have suggested that they go down to the credit union. They join, and the first thing that we do is try to find out what their problem is: how big their debt is—get it all out of them. Then, if we can, we will find them a loan. We want to pay that direct to The Money Shop, to end the problem there, not just give it to the people themselves.

There is, however, an issue with a number of these high street shops and how they operate. I would certainly like to see more action—more ability for a local authority to look carefully at its area and see whether there are enough such shops. Unfortunately, as we have all seen, the problem is not borrowing more money, it is getting a grip of your finances and controlling them. Credit unions are one type of organisation that can help with that, along with others such as money advice services.

Neighbourhood Planning Bill

Lord Shipley Excerpts

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

[Baroness Andrews (Lab)]

My Lords, I support the amendment. The account that we heard from the noble Baroness at Second Reading was pretty shocking. It seemed to be a failure of process but also of principle. The case she told us about then, and again today, seemed to contradict the basic assumptions on which neighbourhood planning is based. After the degree of detail that we went into when it was first proposed in this House and the expectations that were raised, it also raised issues about the nature of localism and its credibility—not only at a local level; I think it actually contradicts the core principles of the National Planning Policy Framework.

When you look at those core principles—of course, a neighbourhood plan, like a local plan, has to subscribe to the NPPF—the NPPF says that the Government are committed to a plan-led system,

“empowering local people to shape their surroundings, with succinct local and neighbourhood plans setting out a positive vision for the future of the area”.

Planning should,

“not simply be about scrutiny, but instead be a creative exercise in finding ways to enhance and improve the places in which people live their lives”,

and it should,

“proactively drive and support sustainable economic development”,

to deliver business and employment. All that should indeed be contained in the neighbourhood plan, rather than having a plan that is driven simply by housing requirements, however important they are. We know they are important—in that part of rural Sussex they are really important. But it is very important indeed that the principles are upheld, that the coherence and richness of the plan are upheld, and that local people are involved. From everything the noble Baroness said at Second Reading, it appeared that much of that had not happened but had in fact been ignored.

One of my questions to the Minister is: to what extent do we think that the sort of example that the noble Baroness, Lady Cumberlege, gave is happening in other parts of the country? What evidence does the department have that these sorts of things are happening in other places? Some time ago I asked a Question in the House about the number of appeals that had been made on housing decisions. There is a common phrase in circulation: “We’re having our planning by appeal rather than by local plan”. I would be very interested if the department could look at the figures for the number of appeals that have been made and let the Committee know so that we have some sense of whether that is a phenomenon.

When you look at the amendment, a lot of it is absolutely what we already expect to happen. Of course, there is a massive issue about resourcing. I do not think the problem that was identified in the noble Baroness’s example was an issue of resourcing but resources drive the capacity of the local authority to stand up for the local plan where there is a local or neighbourhood issue. The loss of experienced planners and conservation officers—the people who defend the principles, whether environmental or regarding sustainability—is significant when it comes to making the case against the inspector.

No amendment is perfect and I am sure the noble Baroness will understand if I raise a couple of issues. I am concerned, and have been concerned for a long time, that the definition of sustainability in the NPPF is not particularly strong. Therefore, it makes it relatively easy for forms of development to be pushed ahead outside the notions of sustainability. The role of the inspector and the planning authority is to get the balance right and to ensure that everybody makes the right judgment. Of course, that involves making the right judgment about the balance of housing, infrastructure and everything else. But I am slightly worried about the phrase,

“except in exceptional circumstances of national importance”,

because you can always make that case, especially in terms of housing. Is there a way of strengthening the local capacity to hold to its neighbourhood plan irrespective of such claims? I just put that into the debate.

The other point I want to make is about informing the local community. It should not need to be said because it is so fundamental to the whole democratic foundation of a neighbourhood plan, but I understand that in the case which we cannot discuss there was a considerable lack of information at the relevant stages and a positive exclusion, as it were. In that respect, if we are going to be consistent and logical, and if we believe in neighbourhood plans and want to make them work, the final subsection of the proposed new clause, which states that any agreed additional housing has to be decided by the local community, seems in all logic to be the beginning and the end of the conversation that a community would have about its neighbourhood plan and where it wanted new housing put—as well as about what sort of housing for what sort of community it had in mind.

[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.

--- Later in debate ---

[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.

[Lord Beecham]

My Lords, I declared my interest earlier as a vice-president of the Local Government Association, as I suspect are half of the Members present in this Committee, and as a member of Newcastle City Council, where 20 years ago I was for a couple of years the chairman of the planning committee. But I have to say that I defer absolutely to the noble Lord, Lord Taylor of Goss Moor, whose expertise is much more current than mine and, I would guess, more profound as well.

I want to raise just a couple of points. The noble Lord, Lord Greaves, referred to the provisions set out in Amendment 6 amending Schedule 1 to the Town and Country Planning Act 1990 by inserting new sub-paragraph (1B). I have a slightly different point to make. The provision states:

“The local planning authority must notify the neighbourhood forum of”,


a variety of matters. What I do not know is the extent to which a neighbourhood forum is under an obligation to notify residents about these matters. In an ordinary planning application, the usual practice is for the planning authority to notify the residents in an area within a reasonable range of a projected application of its existence. The assumption here seems to be that the neighbourhood forum itself constitutes the community for these purposes. While it may have a representative role, that does not imply that every resident will get to know of matters which would have been raised by the local authority with the neighbourhood forum. Perhaps, if not today then later, the noble Lord could indicate whether I am right in my assumption that the provisions of this new clause are meant simply to notify the neighbourhood forum and whether there is any further obligation on the neighbourhood forum or anyone else to notify residents and other people with an interest.

I turn briefly to the point made by the noble Baroness, Lady Parminter, about the remedy if things do not go well. Given that there is a statutory responsibility here if it is not carried out, I would have thought that the remedy is that of judicial review. That is not an inexpensive process, I am afraid, but I suspect that if there has been an omission in complying with the requirements of the legislation, it is the remedy available to those who have a grievance. Again, possibly after taking advice from those behind him, I hope that the noble Lord will clarify the position.

--- Later in debate ---

[Baroness Cumberlege]

My Lords, I accept the suggestion but my concern is that these things can drag on and on, and unless one has a cut-off time, I fear that while the issues continue to be talked about and worked on, nothing actually happens. I am quite anxious to have a deadline and times within which people have to deliver their responses.

[Lord Shipley]

My Lords, I express my support for the amendments in the name of the noble Baroness, Lady Cumberlege, but I want to speak in particular to Amendments 9, 10 and 11. They are important because once again they are about the definition of words. We discussed earlier the meaning of “modification” and “material”, and now we have to define “significant”, “substantial” and “exceptional”. The noble Baroness, Lady Cumberlege, has drawn our attention to the fact that these words can be interpreted in different ways.

First, paragraph 12(1) of new Schedule A2 refers to the “general rule”. If a rule is a general rule, it means that sometimes it is not. I think a rule needs to be rule. The elimination of the word “general”, which leads to doubt, seems the right thing to do. I hope the Minister will take the point that that word should be removed. Looking very closely at the Bill, paragraph 10(1) of the new schedule says that it is for the examiner to,

“determine whether the modifications contained in the draft plan are so significant or substantial as to change the nature of the neighbourhood development plan which the draft plan would replace”.

There we have the introduction of the words “significant” and “substantial”. However, it is then left with the examiner to proceed by the written representation route. So a substantial or a significant change is to be dealt with by the written route and, in paragraph 12(2), only the examiner can,

“cause a hearing to be held for the purpose of receiving oral representations … in any case where the examiner”—

but not anybody else—

“considers that there are exceptional reasons for doing so”.

So there are substantial and significant changes but unless the examiner thinks they are exceptional, there cannot be a formal hearing.

We need to get this right. I foresee a lot of trouble arising if those who have taken part in developing a neighbourhood plan are suddenly told that a substantial or significant change to it can be dealt with only by the written procedure, whereas they may have things that they wish to say and to be heard. If the process is to be sound, we should be encouraging more oral hearings where people can listen to the evidence and contribute to the discussion. I hope the Minister will take on board that these definitions really matter. Something that is significant or substantial should have an oral hearing; something less important than significant or substantial could have written representations. But simply to say that it must be exceptional in the eyes of the examiner does not seem right.

[Lord Cameron of Dillington (CB)]

My Lords, I support Amendments 6A and 6B. For the purposes of this Committee, I declare an interest as a farmer and landowner. Both amendments are about ensuring that the procedure governing an examiner’s report on a neighbourhood plan allows the neighbourhood to meet him halfway, as it were, or allows him to make helpful compromise amendments rather than full-scale deletions, which I gather is all too often the case.

As has been said frequently today, planning is a very complicated subject for the average lay man—that very definitely includes me. The noble Lord, Lord Horam, said that he was not a planning expert. If he is not a planning expert, I am a babe in arms. I have heard planning described as a minefield covered in a mist. In spite of this, villages, communities and neighbourhoods work really hard to master this misty minefield and over a long period of time—two years, five years, whatever it might be—they try to get to grips with the complications of the planning system, not to mention the complications of the diverse needs of their community and the divergent local views on how it should be developed, in line, of course, with the local plan and the NPPF. That point has been made several times and I thoroughly endorse it.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, perhaps I may say as I crawl across the minefields in the mist having been battered by iron fists and with my feet held to the fire, that I will try to deal with some of the issues that have been raised quite fairly by noble Lords relating to this group of amendments. It may help if I first try to put this in the context of what the Government have done to promote and improve neighbourhood planning—just so that we do not lose sight of what is important.

The measures introduced by the Housing and Planning Act have sped up and simplified a number of processes, with, for example, new time limits being imposed on planning authorities and more transparency in committee reports. We have provided £22.5 million-worth of support for neighbourhood planning groups and have provided more than 1,800 grants to the value of over £10 million. Also, some £13 million has been paid out to local planning authorities to help them meet their responsibilities. I have referred to the Written Ministerial Statement of December 2016, which was provided to address the issue raised by communities about the transition problems around the operation of the five-year land supply requirements. This Bill will put it beyond doubt that decision-makers must have regard to neighbourhood plans that have passed examination—it is important to nail that. It also makes clear the advice and assistance that local planning authorities are able to provide to neighbourhood groups and it will bring neighbourhood plans into legal force as part of the development plan at an earlier stage, all of which is important.

Before I turn specifically to the amendments tabled by my noble friend Lady Cumberlege, perhaps I may address a couple of points raised by the noble Lord, Lord Shipley, in the context of Schedule 1 relating to the procedure for examination as set out in new paragraph 12(1). The words “the general rule” replicate the language used in the Localism Act 2011 under the coalition Government. I appreciate that that is not the whole of the answer, but the phrase has been put in for good reason in that there is a substantial amount of case law that defines what “the general rule” is. I will endeavour once again in the compendium letter that I will send round to give examples of how it would operate.

I would also say to the noble Lord that new paragraph 12(2) makes it clear that it is not just the examiner who can initiate an oral hearing, or at least that it may be but he would be required to do so under new paragraph 12(2)(b),

“in other such cases as may be prescribed”.

It is not as if he has a totally unfettered discretion. Indeed, we may want to examine this heading when we discuss the specifics because it does provide for cases to be prescribed.

[Lord Shipley]

Can the Minister explain what and who it is who will do the prescribing?

--- Later in debate ---

[Baroness Cumberlege]

My Lords, I understand that the Grand Committee is a place where noble Lords cannot move a Motion that a noble Lord be no longer heard. Your Lordships have my sympathy and I apologise that I am again on my feet. This amendment is really important and is about a neighbourhood development plan including a phasing condition on development.

I have tabled this amendment because we have already seen communities being overturned, which can cause real social problems. Phasing is important to assimilate people coming into a community. However, on a practical level, the Bill is part of a vehicle to enable the Government to announce the building of a record number of houses. It will coincide with the inevitable changes that Brexit will bring, many of which we still know nothing about. They are incalculable. Some may be good, others may not be so good. We may see jobs leave the City, for instance. I was interested to read in the Times of 25 January a headline on financial clearing houses which stated that loss of clearing would cost the City 85,000 jobs. Of course, that may or may not be the case. However, if a loss of those jobs on anything like that scale occurs, it will make a huge difference to developments that are in train or have already been built.

We must also consider what will happen if we have fewer immigrant builders. What will be the effect of that on the housing market, which has traditionally had its ups and downs? We do not want new buyers to be plunged into negative equity or find they have new homes that they cannot sell. That would serve nobody well. Developers are business people and I am sure that they will not be seduced into building homes that they cannot sell. They would prefer a longer-term strategy, and I support them in that. At this very uncertain time, it is judicious not to try to break records for the sake of political expediency. I strongly believe that building cosy nests on a rotten bough can end in tears. The phasing of developments makes sense. I hope that my noble friend will agree that it should be incorporated in the Bill on Report. I beg to move.

[Lord Shipley]

My Lords, the noble Baroness, Lady Cumberlege, has moved a very wise amendment. I hope that the Minister will accept it in due course.

[Baroness Scott of Needham Market (LD)]

My Lords, I, too, support the noble Baroness. I assure her that she need not apologise for anything as she has raised some very interesting issues in the course of the Grand Committee, and has done so with great passion and commitment.

I raise a related, but perhaps slightly tangential, issue concerning the impact of having a lot of development all at once. Currently, developers argue that Section 106 or community infrastructure levy contributions should relate only and very specifically to the development they are undertaking. That may sound a reasonable argument but it is highly problematic as it completely fails to take into account the cumulative effect of a number of developments taking place around a village, or, indeed, taking place over time. It is very difficult to argue with legal certainty that the need for a new school, for example, is related simply to one development as opposed to the cumulative impact of a number of developments. Therefore, that issue needs to be looked at as it goes to the point about the acceptability of development to local communities. They also need to feel that the funding mechanism will be there. Furthermore, developers often argue that the money should be used only for very narrow purposes and not for the benefit of the wider community. The Government need to look at the acceptability of development in this regard.

--- Later in debate ---

[Lord Beecham]

My Lords, this amendment is in my name and that of my noble friend Lord Kennedy. It deals with referendums. We now have some experience of referendums in this country—perhaps rather regrettably. Of course, the position in the local scene is that it is an issue which would test the degree of support for local initiatives of the kind that the Bill envisages. I do not know but perhaps the noble Lord is in a position to say what kind of turnout has been engendered in the referendums that have been held. I understand that they are not required to be held and there are other means of consultation. However, it seems important to secure and recognise a substantial degree of public support, as reflected through a reasonably pitched turnout.

Forty per cent does not seem excessive, but it would show a degree of engagement and interest on the part of the local community which ought to be recognised. I suggest that it would give an incentive to local communities and their authorities to debate issues very fully. I should have said that the amendment has the support of the Local Government Association, as did the previous one. In the circumstances, I hope the Minister will acknowledge that this measure would be an incentive to authorities and local groups to engage fully with their communities to ensure a turnout that adequately reflects public engagement with an important process. I beg to move.

[Lord Shipley]

My Lords, I do not support this amendment as it implies that a huge amount of work in developing a neighbourhood plan could be lost if 39.9% of the electorate turned out to vote on it. We have in this country a history of assuming that those who do not vote are abstaining. It seems to me that the current system works perfectly well. If some people—perhaps a majority of the electorate—decide not to vote, that is their right. It would be very wrong if all the work of a lot of people over a substantial period of time could be lost because an arbitrary figure of 40% was imposed. The noble Lord, Lord Beecham, has not justified that figure. I would remind him that a large number of local councillors would not have been elected to local government if a 40% turnout figure had been imposed. Indeed, I remind him that he himself in 2014 was elected in the Benwell and Scotswood ward of Newcastle upon Tyne with a turnout figure of 32.1%. However, I do not think that anybody in your Lordships’ Chamber would wish to say that that result was not valid. I hope that the noble Lord will think very carefully about proposing a requirement that there should be a 40% turnout of the electorate on a referendum relating to a neighbourhood plan.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lords, Lord Beecham and Lord Kennedy, for raising this matter. I am not sure whether they believe in the 40% figure, 4% or 2% because that is not entirely clear. Perhaps I may say that I do not think that their hearts are quite in it. The most alarming thing about the debate is that on this basis, Newcastle would have been deprived of the noble Lord, Lord Beecham, and Lewisham possibly deprived of the noble Lord, Lord Kennedy, to the detriment of our national life. I would have thought that the presence of the noble Lord’s name on the ballot paper would have ensured a really high turnout. More seriously, this is not something that we can pursue.

[Lord Shipley]

Just to assist the noble Lord with further information. In fact, the noble Lord, Lord Kennedy of Southwark, was elected on a turnout of 40.61%.

[Lord Bourne of Aberystwyth]

My Lords, I think we now know why the figure of 40% appears in the amendment.

In all seriousness, clearly we would all want to see higher turnouts, but regrettably much of our national life turns on low turnouts. In May 2016 the overall turnout in English local elections was 33.8%—the noble Lord, Lord Kennedy, bucked the trend. The average turnout for neighbourhood planning referendums is 32%. The principles of neighbourhood plan and neighbourhood development order referendums are consistent with all referendums and elections in our country. People are given the right to vote but are not obliged to do so. With this in mind, we cannot support the 40% threshold. The Electoral Commission’s data show that the overall turnout in English local elections since 2007 has exceeded 40% in only three years.

As the Minister for Housing and Planning, Gavin Barwell, highlighted in the other place when a similar amendment was tabled in Committee, of the approximately 240 neighbourhood planning referendums that had been held at that point, around 170 had had a turnout of less than 40%. The amendment would drive a coach and horses through the legislation and could jeopardise the whole neighbourhood planning process and the hard work of so many people and communities to produce neighbourhood plans, which the Government support. With this clarification, I hope the noble Lord will withdraw his amendment.

National Policy for the Built Environment

Lord Shipley Excerpts

Tuesday 24th January 2017 Grand Committee

[Lord Shipley (LD)]

My Lords, first, I declare my vice-presidency of the Local Government Association. I congratulate the committee on its wide-ranging report and on the depth of its analysis. It demonstrates the need for the ad hoc committee to have been established. As a number of speakers made clear, it has been a long time—11 months—since the report was published and it took until November for the Government to reply. I hope that the Minister will be able to indicate why the delay occurred.

One benefit is the content of the Neighbourhood Planning Bill, which has clearly drawn on some of the committee’s conclusions, not least in strengthening the status of neighbourhood plans. I hope that the work of the committee will also be reflected in the forthcoming housing White Paper, which I understand is due next week, and which I hope will address issues of housing supply, type, tenure and genuine affordability. A number of the issues that we hope will be in the housing White Paper were clearly identified by the committee.

As someone who was not a member of the committee, I found the report particularly strong on drawing together all the elements and responsibilities needed for our built environment to be genuinely better. It has done it, for example, in its recommendations on design standards, lifetime homes, sustainable urban drainage, zero-carbon homes, our historic and cultural environment, and the future of town centres, among many others. It is particularly strong in its identification of the need to join up departmental thinking across Whitehall. The noble Lord, Lord Best, gave a very good explanation of the problems that can arise when you have the Department for Work and Pensions managing welfare policies and the Department for Communities and Local Government in charge of housing policies. The two need to be complementary.

The report challenged government policy in a number of areas. One example is the charging of VAT on repairs and maintenance but not on materials used in new buildings. I find that very hard to explain to people. The noble Lord, Lord Inglewood, identified very clearly how it can be a disincentive to maintaining buildings when costs are higher than they need be. A number of noble Lords spoke about the problems caused by short-term decision-making. This has bedevilled planning and development for a long time. Decisions tend to be driven by short-term political need, and when that happens, the problems tend to be solved on the cheap or more cheaply than they otherwise would be. This can lead to poorer-quality materials and design, negative impacts on public health, and buildings which are not sufficiently resilient. I hope that the Government will take on board the committee’s view that they need to think longer term because it is a huge problem when they do not. I was particularly concerned to hear from the noble Lord, Lord Best, about the report into the recent deterioration in quality standards in housing.

A big strategic problem that the committee identified is the confusion about the role of planning in terms of both place-based planning and the nature of the planning profession. Just over 40 years ago, I was first elected to Newcastle City Council. In those days, we had a chief planning officer and large number of professional planners whose job was to plan an area—a place—not simply to operate as gatekeepers for the appropriateness of planning applications. In the past decade or more, that concept of planning being about shaping a place seems to have been reduced in standing. I hope very much that we can get back to the concept of planning being a shaper of place. Given a number of the Government’s policies, one of which is the new industrial strategy based on places, I hope that the importance of planning will be well understood in delivering those new policies.

A few years ago, I chaired a commission on urban living on behalf of the University of Birmingham. There were a number of conclusions to our report, but one related to the role of planners as a profession. We said that:

“There should be a radical upgrade in the role of planners to promote creative, long-term, thinking on urban sustainability and resilience, and to enable more organic growth within that strategic framework. In this role planners should act as integrators of urban practitioners and other urban stakeholders”.


We added:

“To do this effectively, city planning departments will need greater skills and capacity, and the creative talent once prevalent in city planning departments needs to be attracted back”.


There is a whole range of proposals and recommendations in the committee’s report around bursaries to attract good planners, and so on. I was very struck by the comment of the noble Lord, Lord Howarth of Newport, that planning is an art, and when one goes back to medieval Europe, one can see the origins of that statement. I hope very much that the Minister may feel able to look more carefully at the future of the planning system.

We heard about the reductions in staffing levels. I am particularly concerned that those reductions, of around one-third of professional staff, are impacting on the ability of local planning authorities to do their work as well as they would wish. It is therefore very good to read the committee’s conclusion that there should be a localised planning fees regime to make up the underfunding of local planning authorities in respect of assessing planning applications—never mind the broader place-making role that local planning authorities should have.

The Planning Advisory Service and the Chartered Institute of Public Finance and Accountancy, working with the Local Government Association, have together estimated the deficit to be around £150 million a year. I think the Minister for Housing and Planning has indicated that the White Paper may address that funding gap, as the Minister here may do, but clearly, in the context of the cuts that are taking place to local government funding, finding alternative sources of income matters. If the planning service is to be done properly, in line with the recommendations of this report, the ability to raise additional fees seems very important.

Local areas want to do more for themselves. In this respect, the Local Government Finance Bill will lead to greater self-sufficiency and extra incentives to grow business rate income, since 100% of business rates will be kept locally, as opposed to 50% now. In addition, that Bill, which is now in the other place, will give some authorities, notably the Greater London Authority and mayoral combined authorities, the ability to raise a levy on business rates to help deliver infrastructure. There are important further measures to allow business improvement districts, after a vote, to levy property owners—not just occupiers—for the purposes of regeneration and growth. Business improvement districts across the country have demonstrated their worth, and as a system of voluntary taxation it is particularly commendable that so many have been a success. They enable investment in the public realm, in sustainability and design, in public access for all, and in a whole range of measures that would not otherwise have happened because of the financial problems of local authorities. Because there is a direct connection between the payment of the tax—after a vote—and the work undertaken, people feel much more inclined to contribute their money.

Finally, reference has been made to the briefing from the Royal Institute of British Architects, which I read this morning. I thought it was extremely helpful, partly because it confirmed some of my concerns. I agree entirely with what it said about CABE, which I recall being established. It was the Commission for Architecture and the Built Environment—those words matter. There clearly has been a downgrading of CABE, which is a bad mistake. It gave excellent value for money. When I led Newcastle City Council for a number of years, I valued the support and advice it gave us in development policy.

RIBA has given the Government recommendations on a chief built environment adviser, a design review, standards and ensuring that we do not have, as it says, a,

“fractured nature and inconsistent quality of design review across the country”,

which is what we seem to have. It has also raised the issue of viability assessments. I hope the Minister might pay particular attention to this. RIBA says that planning practice guidance encourages transparency but,

“developers may opt not to disclose their viability assessments to the public on grounds of commercial confidentiality”.

That is when they are required to build affordable housing and they claim it would make a new development financially unviable. RIBA’s recommendation that,

“the Government should legislate that viability assessments should be treated transparently, except where doing so would cause harm to the public interest to an extent that is not outweighed by the benefits of disclosure”,

should be taken very seriously.

I agree with a number of speakers who have said that the Government’s response is not enough. My noble friend Lady Parminter talked about this being about spaces for people to grow. The noble Baroness, Lady Andrews, talked about the report being a resource of clear thinking. It is indeed that.

Neighbourhood Planning Bill

Lord Shipley Excerpts

2nd reading (Hansard): House of Lords
Tuesday 17th January 2017 Lords Chamber

[Lord Shipley (LD)]

My Lords, I hope that all noble Lords, as I have done, have found this Second Reading debate extremely helpful. A number of issues have come to the fore in the course of our debate which I think that we will need to examine more closely in Committee. Before I go any further, I should add my name to the list of vice-presidents of the Local Government Association.

This Bill is part of a package of measures that includes financial support to boost housebuilding and the forthcoming housing White Paper. The Bill aims in particular to simplify and speed up the neighbourhood planning process and, in principle, that is a welcome intention. However, as the noble Baroness, Lady Cumberlege, and my noble friend Lord Greaves reminded us, neighbourhood planning is about a great deal more than building homes. It is about building communities. We will need to explore that in greater detail in Committee. Can the Minister confirm that there is nothing in the White Paper, which is due when Committee has been completed in your Lordships’ House, which will impact on the Bill that we do not already know about? It would be helpful to know when it will be published—and I suppose that I seek the Minister’s assurance that it will be published in very good time for consideration of the Bill at Report.

When we debated the Localism Bill in 2011, I and other colleagues were strongly supportive of the proposals to introduce neighbourhood planning. Since then, I have been very impressed, like so many in your Lordships’ House, by the commitment of so many communities to get involved in the process. The evidence of its success is there, in that 10% more houses are being built because neighbourhood plans exist. As my noble friend Lord Stunell reminded us, neighbourhood planning is seven years on, and this still has the potential to be a centralising Bill rather than a decentralising Bill. I hope that we will take steps in Committee to examine that in some detail.

More recently than the Localism Act 2011, during the passage of the Housing and Planning Bill, we argued that that Bill did not go far enough in ensuring a fuller role for neighbourhood planning bodies in planning matters that might impact on their area. We also argued that we needed greater promotion of neighbourhood plans in urban areas, which are mostly unparished and have many fewer neighbourhood plans than parished areas. My noble friends Lady Pinnock and Lord Greaves spoke in some detail about that. This matters. If neighbourhood planning is to be the future—and we want to see it expand—there need to be structures in unparished areas that are stronger than the structures that we currently have. I hope that we will explore how we might encourage neighbourhood planning to be strengthened in those urban areas.

My noble friend Lord Taylor of Goss Moor reminded us that professional help matters and that the process is a long one. He said that he was sceptical that all stages were necessary. Again, I wonder whether we might look further at that issue in Committee.

The reputation of neighbourhood planning has been damaged a little—and in some places more than a little—by the requirement for a local planning authority to have a five-year land supply even when a neighbourhood plan has been adopted in the absence of an adopted local plan. In other words, if the local planning authority has failed to produce a local plan with a five-year supply, the neighbourhood plan can be deemed out of date even if it is only recently adopted. The noble Baroness, Lady Cumberlege, reminded us of this but there are other examples, right across the country, where neighbourhood plans adopted in good faith and after a referendum suddenly find they have problems because the five-year land supply has not been produced by the local planning authority. I hope we will look at this issue further in Committee. However, it might help if the Minister, in replying, explained the impact in practice of the Statement made by the Minister for Housing and Planning on 12 December, which suggested that only a three-year supply was needed in some cases. What exactly will the practical outcome of that Statement be?

We welcome the fact that the Bill gives greater weight to neighbourhood plans earlier in the planning process and it is good that principal planning authorities are required to provide stronger professional support for neighbourhood planning. The Bill makes it easier to modify existing and future neighbourhood plans and, in the main, these are helpful and seem to command broad support. However, the Bill could be strengthened through amendments giving neighbourhood plans even greater weight in the planning system than is currently proposed, through the right to be heard. We were reminded of that by my noble friend Lady Parminter, and we can come back to it in Committee too.

I have a number of concerns about the Bill. It has been said—and it could be true—that it may not build enough homes. My noble friends Lady Maddock and Lord Greaves talked of direct commissioning and how this might help build yet more new homes towards the target which the Government have set but which is unlikely to be delivered. I am concerned about numbers but I am also concerned that there are no measures in the Bill to ensure that new homes are sustainable, low-carbon and protected from flooding risks through sustainable drainage in all cases. My noble friend Lady Parminter reminded us that we need to investigate those issues further in Committee. We shall look at the protection of ancient woodland. I hope an amendment will be forthcoming on this and that it will command all-party support. If it does, the Government might want to look more closely at the value of such protection.

Clause 7 gives the Secretary of State powers of direction over local plans. I hope we might explore this issue further to understand the intention better. At this stage, we need to reserve judgment on it, and the noble Baroness, Lady Cumberlege, gave us good reason to do so. A new clause, Clause 8, has emerged concerning county council default powers. I have not fully understood why this clause is deemed necessary. County councils do not have the local planning expertise required to discharge the function. To get it, they would have to employ consultants or staff or, maybe, district council staff. If a district council is deemed to be failing in its duty and the Secretary of State decides the county council should take over, it is not clear who would be legally responsible in the event of a challenge to an adopted local plan if it is approved through that route. The Minister may be interested in receiving amendments in Committee which might point a way through that problem and we will, I hope, come forward with some suggestions.

My noble friend Lady Pinnock and the noble Lord, Lord Thurlow, talked about the remediation of land, its financing and how we build more homes on more brownfield sites. The Government have made laudable attempts to do this but we need to look more closely at what financial barriers are in place as regards developers building on brownfield sites as opposed to greenfield sites.

The noble Lord, Lord Kennedy of Southwark, mentioned pubs and the amendment voted on in the other place on the need for permitted development rights to be imposed where pubs are closed and sold and then undergo a change of use without planning permission. Strong feelings were expressed in the other place on this matter, with 161 votes cast in favour of requiring a planning application to be made when it is proposed to demolish a pub or change its use. I think that is the right course and I hope that we will examine this further in Committee. Designating pubs as assets of community value is important. The last Government had a good record in that respect in creating the register of assets of community value. However, in this case we need to go a bit further.

The evidence we have heard suggests that the jury is out on pre-commencement conditions. The Minister will write to us on this matter but I hope that the Government are clear what the problem is they are trying to solve. I am willing to be convinced that there is a problem that must be solved given the way in which the relevant clause is written. As my noble friend Lady Parminter said, the difficulty with the argument put forward is that sometimes conditions can be useful because they tell you exactly what the problem is that needs to be addressed. If an applicant is not prepared to sign an agreement, you could end up with the local planning authority refusing planning permission when quite a lot of the relevant development would be very worth while. However, as my noble friend Lady Parminter pointed out, the other danger is that you could end up with poorer development. We have heard a little tonight about poor-quality development. In the rush to build and hit targets, you could well end up with poorer-quality development as a consequence of imposing a requirement to agree to pre-commencement conditions. We need to investigate that issue too. I think the Minister agrees that pre-commencement planning conditions must not be used as a way to cut corners on key matters such as protection for special environmental or heritage sites. I think that is a given. However, we need to be reassured that the means by which that will be delivered are not in danger.

I have come to the conclusion that there may need to be a thorough review of compulsory purchase powers in time. However, there is clearly much support for reforming the compulsory purchase system, and the Government are right to proceed with that now. The principle is that the public sector should be able to benefit to a greater extent from value uplift created by public projects. My noble friend Lord Taylor of Goss Moor reminded us of this in his contribution a little while ago.

Perhaps we need to clarify in Committee one or two issues concerning the detail of temporary possession as regards leasehold charges and changes to the provisions around compensation. One of the benefits of the Committee stage is that it enables us to discuss such provisions in detail.

My noble friend Lady Maddock made a very cogent contribution on resources and planning fees. In the summer of 2016, around 250,000 applications were recorded as not having been processed on time. The noble Earl, Lord Lytton, reminded us that central government can bear a responsibility for delays. It is all too easy to paint local government as the body responsible for delays, whereas there are often several reasons why they occur. That could be one, but another is the lack of resource. I am now pretty convinced by what the noble Lord, Lord Porter, told us: that councils—the Local Government Association tells us—are subsidising planning applications by £150 million a year. This is significant money. Even if that figure is only £100 million—and it could be £200 million—we need to look at how planning fees can be raised. I understand that there is a strong chance that this matter will be addressed in the housing White Paper, which is one of the reasons why the timing of the issuing of that White Paper matters. Indeed, if you read Clause 5, you see that delivering the clause requires more professional planning staff; obviously they have to be paid for, and more planners will need to be employed to enable high-quality planning to take place.

I understand from yesterday’s briefing that the Government will table amendments, which I expect will be before Committee—although the Minister also might wish to confirm that they will not come to us on Report. I understand that the Government are doing it on the primacy of neighbourhood plans, the right of parish and town councils to be consulted in drawing up local plans, and the housing needs of disabled and older people. Any further information the Minister can give us on that will be appreciated.

I draw to a close. When permitted development, which was basically seen as being about the conversion of offices to homes, was introduced, it was not anticipated that problems might be caused by the excess closure of offices—that is, places for people to work—in the interests of making a profit from the change of use from office to home. The annual register is therefore warmly welcomed, as it means that we will have some evidence of whether there is a major problem.

The Government are keen to speed up the planning process, and there is no doubt that the Bill will help to achieve that. However, I hope that the Minister will understand that there is a worry—we had it before we came to Second Reading but it has become more acute—which is whether the Bill is more of a centralising Bill of the one-size-fits-all policy-making type, as my noble friend Lord Greaves identified, or a liberating Bill that will enable neighbourhoods to take much greater control of their destiny. As I said earlier, on this matter the jury remains out.

Non-Domestic Rating (Chargeable Amounts) (England) Regulations 2016

Lord Shipley Excerpts

Wednesday 21st December 2016 Lords Chamber

[Lord Beecham (Lab)]

My Lords, it is no doubt timely to review the valuation of properties for the purposes of business rates. My recollection is that it is now 25 years since the valuation for council tax purposes was applied. Consequently, we still have the same number of bands and the same financial layout that was established all that time ago. If it is timely to revalue properties for the purposes of business rates, why is it not timely to review the basis of council tax and change the valuations there—and, indeed, possibly the number of bands?

[Lord Shipley (LD)]

My Lords, in the context of the existing system, the proposal that the Minister and the department have come up with is the right response. The amended version of option 2, which the documentation explains, is probably the right thing to introduce.

However, there is a lot of concern about the context of this and the impact of the revaluation. I was surprised to read in paragraph 10.3 of the Explanatory Memorandum:

“An impact assessment has not been produced for this instrument because it amends an existing local tax regime. Publication of a full impact assessment is not necessary for such legislation”.

I understand the overall reason for that but I suspect that the department is going to get many more appeals because of the significance of the changes, which, over the next few years, will cause some, who have very high increases in their bills, to wonder whether they could secure a reduction through the appeals system. We heard at Questions earlier about the impact of that on local authorities’ ability to plan their annual budgeting. I would appreciate anything that the Minister can say about how the Government might help to speed up the business rate appeals system.