Levelling-up and Regeneration Bill

Debate between Lord Young of Cookham and Baroness Parminter

Committee stage
Monday 24th April 2023 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, Amendment 267 is in my name and that of the noble Baroness, Lady Thornhill. This amendment has the support of the LGA and it would enable local authorities to charge planning fees that met the cost of providing the service, but would prevent them making a profit from it.

One of the themes of our debates on the Bill has been the importance of local authorities providing up-to-date plans. Indeed, my noble friend has made the point that up-to-date plans are more likely to produce the increases in housing that the country needs. But if we are to do that and have up-to-date plans, we need properly resourced planning departments. We also want to see planning applications promptly processed so that development can go ahead, again to meet housing need. That requires properly resource planning departments, but we know that they are all under pressure. Of the respondents to the Home Builders Federation’s recent SME development survey, 92% said that lack of resource in local planning authorities was a major barrier to growth—up from 90% in 2021.

Planning departments will also need to respond to proposals in the Bill, which has 47 clauses that relate to planning. They are going to have to get up to speed with that if they are to succeed in the Government’s ambition to improve the planning system. They are going to need to digitise and streamline the planning process. They will have to understand the implications of the NDMP and the new NPPF. They will have to deliver the new environmental assessment procedures and the new procedures on heritage and for neighbourhood plans, along with other changes to the planning system that we have been debating—not to mention the implication of street votes.

At the moment, planning fees do not cover the cost of processing planning applications. According to the LGA, council tax payers subsidise the planning system to the tune of £180 million per annum—money that could be spent on social housing. I know that the Government are consulting on an increase, but there are two problems. First, even if granted, the increase will not meet the gap or give us the well-resourced planning departments we need. Secondly, it will not enable individual local authorities that have active planning departments to set fees that cover their costs.

Recently, the Government have tabled Amendment 285C, but I am not sure that it addresses the problem. That amendment will allow certain bodies to charge fees for advice in relation to planning applications. My noble friend will explain what that means; I suspect that it is a response to Amendment 283 and will enable bodies such as the Environment Agency and Natural England to charge for advice on planning applications. In any case, the wording of the Government’s amendment would not cover the ability for local authorities to charge fees for the processing of planning applications, because it refers to the ability to charge fees for “advice” in relation to applications, and, of course, the authorities can already do that.

However, there is a wider principle at stake here. This Bill was going to be called the “Devolution Bill”. The Government want to decentralise and give local authorities the ability to respond to local needs, so here is a golden opportunity to put that policy into practice. I was rereading the foreword of the levelling-up White Paper published in February last year. It said:

“We’ll usher in a revolution in local democracy”.


It seems to me that here is a good opportunity to put that ambition into practice.

Finally, this central control sits uneasily with the freedom local authorities have to set building control fees, which are part of the same planning family. That is an anomaly I find difficult to explain. There is no central government control over parking charges, school meal costs, rents or swimming pool tariffs. Why are the Government so insistent on retaining control of planning fees? I ask my noble friend whether she is prepared to relax the Government’s vice-like grip on local authority. I beg to move.

[Baroness Parminter (LD)]

My Lords, in the absence of the noble Baroness, Lady Young of Old Scone, who cannot be here this week, I will introduce her Amendment 283, to which I and the noble Baroness, Lady Hayman of Ullock, have added our names. As it is her amendment, I will not do what I normally do and speak off the cuff. I have some notes from her, and I will, unusually, read from them.

A number of statutory consultees receive requests to provide expert information and opinion on planning applications and other planning cases. Indeed, the noble Lord, Lord Young of Cookham, just mentioned some of them. The main statutory consultees include Natural England, the Environment Agency, the Health and Safety Executive, Historic England and Highways England.

The volume of planning application requests has increased by 38% over the six years up to the financial year 2021-22. It is estimated that this trend will continue. Natural England alone received almost 18,000 requests in the last financial year. In 2019 the main statutory consultees estimated the total cost of providing this advice at approximately £50 million. Obviously, costs will rise with volume.

Amendment 283 inserts a provision into the Town and Country Planning Act. It would allow the Secretary of State to make regulations to allow statutory consultees to charge developers and others for the provision of such advice and information about planning applications and other planning cases put forward by developers and others to local planning authorities. This provision would bring the cost-recovery arrangements for the majority of planning applications under the Town and Country Planning Act, in line with the proposals in Clause 118, which will allow cost recovery in the case of nationally significant infrastructure projects.

Amendment 283 lays out what particular provisions the regulations may make, including who should pay, how much and when. It also defines an “excluded person” who cannot be charged, unless that person is the applicant for the planning permission. Broadly speaking, in at least the first instance, it seems that the charges would be for the planning applicant or developer to pay, and charges would not be levied on the planning authority. It is all very straightforward and essential if our hard-pressed statutory consultees are to provide a prompt and efficient service to both planning authorities and applicants in the face of the growing case load.

The Minister has ostensibly agreed, as the Government have laid what seems like a similar amendment, Amendment 285C. However, proposed new subsection (3)(b) in the government amendment could be interpreted as prohibiting a statutory consultee charging fees to a planning applicant in respect of the provision of advice to a local planning authority by any route. It could even prohibit current scenarios where a developer is willing to meet those costs under a voluntary agreement, for example under a planning performance agreement or a service level agreement. If that is not the intention in proposed new subsection (3)(b) in the government amendment, the ambiguity needs to be removed.

It would be good to have confirmation today from the Minister that the Government intend to ensure that the statutory consultees can recover their costs. I ask the Minister whether she might be prepared to meet the noble Baroness, Lady Young, and other interested Peers between now and Report to identify a mutually satisfactory and unambiguous version of these two amendments.