Localism in Planning

Andrew Turner Excerpts

Wednesday 17th July 2013 Westminster Hall

[Nick Herbert]

I agree with every word my hon. Friend says; he describes the problem precisely.

The first mistake is to believe that sending a signal and using the inspectorate in that way to reward speculative applications will contribute to getting construction going. It will not, because what is happening frequently is that developers are simply land banking permissions. They are not necessarily building. When they choose to build, it will be when they think that they can make a return and when there is demand for the houses that they wish to sell. What they are doing at the moment in many cases, in my constituency and elsewhere, is taking an opportunity to obtain a permission where they have absolutely no intention to build immediately.

The system is rewarding those developers by having insufficient regard to permissions that have already been granted. That is the second key concern. Given how the rules are set up in relation to the five-year land supply, the calculations that local authorities are required to undertake mean that they cannot include swathes of existing permissions that they have allocated, which places completely unrealistic targets on them.

In one district council in my constituency—Horsham—a rate of house building is now being required that has never been achieved in the area, even in the boom years. It is good news for the developers, who will not be developing for years but will secure planning permissions on greenfield sites. By setting up a formula that fails to give weight to unbuilt planning permissions, many of which are on brownfield sites, we are effectively moving not to the brownfield-first site policy that we should have but to a greenfield-first policy. That is an environmental disaster.

[Mr Andrew Turner (Isle of Wight) (Con)]

One problem on the Isle of Wight—and, I have no doubt, elsewhere—is that local people cannot afford housing because people from overseas come to the island.

[Nick Herbert]

More affordable housing is clearly needed, and there is strong support in local areas for that housing to be provided, to maintain the character of villages and ensure that communities remain strong. No one disagrees that more housing is needed, particularly more affordable housing, but as the policy is constructed with a five-year land supply requirement that pays insufficient attention to unbuilt planning permission and is effectively a greenfield-first policy, it will not deliver the affordable housing needed; it will simply enable developers to build their balance sheets.

There is disagreement about the number of unbuilt planning permissions nationally; the Minister has had an exchange about it. It would be helpful to have some up-to-date, reliable national figures. According to the four district councils covering my constituency and beyond, the total number of unbuilt planning permissions granted is well over 16,000 and the number of houses proposed to be built is 39,000. The number of unbuilt planning permissions granted is getting on for half the number of houses wanted, yet the councils are being told that those unbuilt permissions cannot really be taken into account when they set the number. That is the problem.

The practical effect of the policy is damaging to a principle that I know that the Minister adheres to strongly, as do I—neighbourhood planning underlying the publication of local plans. That was the most potent feature of the Localism Act 2011: neighbourhoods would be given the responsibility and incentives to plan for their own futures. In my constituency, some parish councils have stuck their necks out to prepare responsible neighbourhood plans, saying what amount of housing they can take. Some are taking an amount that they would not have dreamed of, and are now feeling considerably undermined. I cannot overstate how seriously I take that.

In my constituency, the parish councillors—good people—are all volunteers who have taken a considerable amount of local effort and, in some cases, risk to promote the plans, while speculative applications are coming in that are being granted either because the district council wants to grant them or, in many cases, because it fears that they will be upheld by the inspectorate. Such speculative applications are often completely contrary to what is wanted in the parishes under the neighbourhood plan. The consequence is that faith in the neighbourhood planning process, which could be so powerful and will deliver the local and affordable housing that we need, is in danger of draining away.

I have just forwarded to my right hon. Friend the Secretary of State for Communities and Local Government, copying the Minister, a letter from three chairs of parish councils in my constituency. They specifically asked me to draw the letter to Ministers’ attention. It says:

“Neighbourhood planning should encourage partnership working between parishes and districts. In truth, it is damaging the very fabric of these important tiers of local government. We also run the risk of damaging the trust of local people who have been allowed by government, and encouraged by parish councils, to engage in the neighbourhood planning process. To have their contribution disregarded will be damaging at resident, parish and district levels.”

Those are not party political elected councillors; they are volunteers of no party who are committed to the neighbourhood planning process, and they feel that it is being chucked back at them by the actions of the planning inspector.

I will conclude by suggesting some remedies, so that I do not simply criticise what is happening and because I believe that the current situation is retrievable. It is not so radical a suggestion to abolish the Planning Inspectorate entirely. The Conservatives used to believe that we would not hand decisions to quangos—indeed, that we would get rid of quangos. I note that the Conservative party manifesto at the election, entitled “Invitation to Join the Government of Britain”—an invitation that I have now declined—says:

“To give communities greater control over planning, we will abolish the power of planning inspectors to rewrite local plans”.

There it is. We set it out in those terms. I accept that that did not find its way into the coalition agreement, but that is the promise that this party made to local people, yet we are now effectively allowing the inspectorate to do exactly that.

We could also extend the moratorium on speculative applications as plans emerge. That approach is not necessarily the right way to go, as it would mean that there would be no way to incentivise areas that are not planning responsibly to continue.

I have three suggestions that I believe the Minister could follow, even if we are to continue reneging on our manifesto promise. First, we must give proper weight to emerging plans, not just pay lip service to them or produce written answers and say publicly that weight is being given to them. In particular, where applications are not supported by parish and district councils, the inspectorate should be required to take notice of that, yet it is doing exactly the opposite at the moment. That could be done by executive decision, and a signal could be sent from the centre.

--- Later in debate ---

[John Howell (Henley) (Con)]

Thank you, Mr Hollobone. It is a great pleasure to speak in this debate and to follow, if somewhat distantly, my right hon. Friend the Member for Arundel and South Downs (Nick Herbert). There was much in his speech with which I agree.

I have in my constituency the town of Thame, which has recently completed a neighbourhood plan. During completion of that neighbourhood plan, which took a year and a bit to come to fruition, the council’s district plan was the subject of an examination in public under the old rules, under which the inspector could have interfered in where the housing went in Thame, but he did not. He said that he would interfere in where the housing went in Wallingford, which had no neighbourhood plan, but because Thame had an embryonic neighbourhood plan—an emerging plan—he would not determine where the housing would go; he would leave that to the people of Thame to determine during the production of their plan.

I think that that is a clear model for how the inspectorate should take into account emerging plans. It has set a very good precedent and one that I urge the Minister to get the inspectorate to follow. I remember from my days as a mere Parliamentary Private Secretary in the Department that we frequently had to call in the Planning Inspectorate to stress the point of consistency in how it approached taking plans into account.

There is no excuse for a district council not having a local plan. It is a great shame that we could not have abolished the regional spatial strategies on day one of coming into office. We could not do that for a number of legal reasons: the challenges that it would have involved. It has taken quite a long time to get, on a rolling basis, the abolition of those regional plans. Nevertheless, councils that have looked at this have taken into account where the thing is going and have gone back, where they have had time, to look at the housing numbers. In many cases, they have found that the housing numbers now exceed those that were originally in the regional spatial strategy, but that is for them to decide.

The one thing that we have skirted around in this debate is not the housing targets, but the need for a robust five-year land supply. If we are going to say, “We have this number of houses to provide,” we need to show the mechanism by which we are going to provide it. By insisting on a robust five-year land supply, we should be able to do that. Neighbourhood plans have to be in general conformity with the district council’s plan, and that includes the five-year land supply, so there should be no difference at all between the two. There should be a great overlap between the two forms—

[Mr Andrew Turner]

I am rather concerned about this five-year provision in a country in which we are cutting migration. That means a significant reduction—a significant lowering—in demand.

[John Howell]

I understand my hon. Friend’s point, but in some ways it is irrelevant. That is an issue for district councils to take into account.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Communities and Local Government (Nick Boles)]

It is a pleasure to serve under your chairmanship once again, Mr Hollobone.

I congratulate my right hon. Friend the Member for Arundel and South Downs (Nick Herbert) on securing this important debate. He, as everyone here would attest, is one of the most effective campaigners in modern politics. There is probably no one to whom we owe more gratitude for the fact that we still have sterling rather than the euro, and no one who has more responsibility for the introduction of directly elected and locally accountable police commissioners. Furthermore, the passage of the Marriage (Same Sex Couples) Bill through Parliament just last night owes as much to him as to any other Member.

You can probably understand, Mr Hollobone, why it makes me a little nervous, therefore, that my right hon. Friend is now turning his sights on me and my portfolio, which is planning. If I were asked to rate my chances against him, I am not sure whether I would fancy my odds, but I will try to persuade him that he need not turn his sights on me or on our planning reforms, because although the reforms are clearly a work in progress and it is only a short time since the Localism Act 2011 was enacted and the national planning policy framework was brought into force, early signs are positive and it is worth being a little patient before rushing to conclusions.

I want to engage with all the points raised as best I can in the time available, but I will start with what I think is the big argument: what does localism mean? I want briefly to take everyone away from the question of meeting housing need, which seems to be the particularly vexed issue that taxes us today, to the other needs that we all recognise human beings and families have, and which in many cases local authorities have a responsibility to provide. There is the need for schooling. There is the need for environmental management for waste collection. There is the need for care for vulnerable children and adults. We all accept, respect and welcome the fact that local authorities have responsibility for deciding how to meet those needs, and in none of those cases do we think they should have the ability not to meet them. Localism means control over how the fundamental needs of the people who elect the authorities and reside in their communities are met; it is not about deciding whether the needs will be met.

We all must be clear about our corporate, collective failure, as a society, over not five or 15 years, or over the lifetime of the previous Government, but over several decades. We have failed to meet the legitimate housing needs of our population.

[Mr Andrew Turner]

Does the Minister believe that homes for local people are more important than homes for people from afar?

[Nick Boles]

I certainly think that in every local community we want, first and foremost, to provide housing for local people. However, in response to my hon. Friend’s question and to the points he raised in his previous interventions, it is not the case that our housing need chiefly derives from the levels of immigration over the past decade, of which I am as critical as he. Immigration explains only about 40% of the formation of new households; the remainder is explained by the fact that we are all getting older and not dying as quickly as we used to. I come from a family that has four generations in it, as do many right hon. and hon. Members, but that was not common 30 years ago. Now, people in their 80s and 90s are much more common to all of us than they were when we were growing up, and they all need houses.

We have failed as a society and as a country to meet the need, and the Localism Act and the national planning policy framework make it clear that every local authority has a duty, first and foremost, to meet objectively assessed housing need. We do not allow local authorities to determine whether they will provide primary and secondary school places, or social care for vulnerable adults and children. We expect them, as branches of Government, to meet the responsibilities passed to them, and meeting housing need is among those responsibilities.