Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, it is a pleasure to open the Second Reading debate of the Levelling-up and Regeneration Bill. For decades, successive Governments have failed to address the inequality of opportunity in our country. Economic growth has for too long been concentrated in a select few areas. This Bill creates the foundations for our long-term efforts to address entrenched geographic disparities across the UK. It does not purport to deal with every aspect covered in the levelling up White Paper, although noble Lords could be forgiven for thinking otherwise, given the scale of the Bill.

We all know the scale of the challenge that we face in levelling up our country. We see the consequences of geographic disparity across the country: in the unaffordability of housing for so many; in the hollowing out of our communities, as people leave for lack of local opportunities; and in the stark differences in educational attainment, health and quality of life depending on where you live.

The case for change is both economic and moral. Leaving parts of our country behind means opportunities are missed through underinvestment and overfocus on specific sectors. That costs us in terms of economic growth, of benefiting from our world-leading research and, most importantly, of each person who cannot achieve their potential through no fault of their own. We have a duty to support those already affected by geographic disparities, but we must also solve the underlying problems. To treat that support as the long- term solution is to fall into the same well-meaning trap which led to the current situation.

The Bill is intentionally designed to put in place the structures and tools to enable that long-term solution. The framework it creates will work with our efforts to support communities but it is deliberately focused on the wider objectives set out in the Government’s levelling up White Paper. It is for this reason that Part 1 creates a statutory framework for the setting, reporting upon and review of levelling-up missions. As noble Lords will be aware, the missions set out in the levelling up White Paper set out the Government’s 12 priorities for levelling up between now and 2030. I do not intend to relist the missions but as your Lordships will know, they range from health and well-being through transport and digital connectivity to devolution across England.

This ambitious programme for our country provides a mechanism for this House and the other place to hold the Government’s efforts to account and to scrutinise any changes in the missions or how they are measured. It is right, I hope noble Lords will agree, that missions should be adaptable to the needs of the country, but that any adaption should take place openly.

Part 2 builds directly upon the local leadership levelling-up mission and provides the means to simplify, expand and deepen devolution across England, to which the White Paper committed. It creates a new institutional model more suitable for devolution to whole county areas outside city regions which have more than one council—the combined county authority. Alongside this, we are improving the existing combined authority and local authority models for devolution. This work is creating a consistent architecture across local government for devolution in England, where it is led by local areas.

Part 3 reforms the planning system to improve planning authorities’ ability to shape their areas in accordance with the needs and wishes of their communities. Principally, this is achieved by giving greater weight to the development plan when decisions on applications are made, so that there must be strong reasons to override the plan, and by making a number of changes to aid the adoption of local plans. These include the introduction, through secondary legislation, of new gateway checks to help spot and correct problems and reduce the risk that local plans will fail at examination. We are also removing the pressure many planning authorities feel to duplicate national policy in their local plans to ensure it has sufficient weight in their decision-making. This will enable plans to be produced more quickly by streamlining the contents of plans to policies which are bespoke to the area, rather than those which apply across the country.

As at present, we will also produce some high-level policies on matters to be considered when preparing local plans. These will be separate from the new national development management policies, which will sit alongside the polices in the development plan. Part 3 makes a number of other changes to the planning system. This is a substantial part of the Bill and there are a few significant changes among the numerous technical improvements included in this part.

Chapter 1 enables the digitisation of the planning system, in support of which we are already working with planning authorities across the country. Our aim is to enable greater involvement at all stages in the planning system, but particularly to increase engagement in the production of the local plan, where local voices can be so important. We are also strengthening the regard of heritage within planning law and creating a new system of “street votes”, allowing additional development on existing streets, where it meets prescribed requirements and is supported at a referendum. The issue of build-out of planning permissions also remains of concern to communities, and I know that many noble Lords have raised this issue before. Part 3 therefore introduces measures which will improve transparency around the speed of build-out and delivery expectations, backed up by new and strengthened powers for local planning authorities to act against unreasonably slow development.

Part 4 provides for the replacement, in most cases, of negotiable development contributions with a locally set, non-negotiable infrastructure levy. Planning authorities can at present often feel themselves at a disadvantage in these negotiations, particularly with the larger developers. Similarly, your Lordships will know that uncertainty over the obligations which will be requested can be a barrier for some of our smaller developers.

The levy addresses these concerns. The legislation will allow the levy to be set locally, meaning that local authorities can set different rates according to the nature of development. This will allow authorities to set rates reflecting their priorities, including securing at least as much affordable housing as that secured under the existing system, if not more. The new levy will be implemented through a test and learn approach, by introducing it in some local authorities first before rolling it out nationally to support local authorities through the transition period. We will publish a technical consultation on the new levy very shortly.

Part 5 grants time-limited powers for community land auction pilots. These will test an innovative mechanism for securing value and infrastructure for the local area from the allocation of land for development in a local plan. The Secretary of State is required to report to Parliament on the results of those pilots.

I turn to Part 6. Following our departure from the European Union, we want to learn from the experience of the past 40 years to tailor environmental assessment to better reflect the current pressures on the environment and meet the nation’s environmental needs. The Bill will secure powers to address issues with the current system that have seen environmental assessment become less proportionate, less effective and more cumbersome. Even if nothing else were to change, the Government would need to take powers to avoid these regimes becoming outdated. As a core principle, we would not wish to see environmental protections eroded over time, and the Government wish to go further to ensure that these assessments deliver for the environment.

These assessments could and should be more effective, both in identifying the impacts which could occur and as tools for promoting environmental improvement. We want these reports to be an active means for pursuing environmental improvement and protection. It is this objective, building on the work of the Environment Act 2021, which we are pursuing through this part.

Further to Part 6, Part 7 puts into law a requirement for water companies to address nutrient pollution arising from wastewater treatment works by 2030. This, together with a nutrient mitigation scheme led by Natural England, will reduce the barriers to significant numbers of new homes while creating new and improved wetlands and woodlands, enhancing access to nature, improving the environment and helping to build much-needed homes.

Part 8 reforms development corporations in England to create a new, locally led form of development corporation to support local leadership of regeneration efforts. We are also updating other forms of development corporations to ensure that these valuable tools for co-ordinating large-scale developments can all benefit from the powers suited to their circumstances.

Part 9 makes changes to the system for compulsory purchase, including enabling its digitisation similarly to Chapter 1 of Part 3. The purpose of these changes is to allow authorities to make better use of powers in their areas, where they find that there is a case for their use in shaping and regenerating those areas.

Part 10 provides local authorities with a tool in their efforts to regenerate and protect their high streets. By means of a high-street rental auction, planning authorities will be able, where a property has been vacant for at least a year—or at least 366 days within a two-year period—to make arrangements for that property to be let on appropriate terms. This is a discretionary power for local authorities, and we will provide guidance to support them as to how and when to use this new power. However, we expect it to form a backstop position to assist in preventing the decline of those high streets at the hearts of our communities.

Penultimately, Part 11 provides for powers to acquire more information about land ownership and arrangements. These powers respond to calls we have often heard regarding the barriers for local authorities and others arising from the lack of transparency about who ultimately owns land and who has options and other interests in it. As noble Lords will know, the possible arrangements are myriad. The powers we are taking have been deliberately constructed to try to preclude the possibility that a form of interest in land might escape the transparency that we seek to create.

Finally, Part 12 makes a number of changes which seek in large part to tidy up various regimes and systems that interact with the main elements of the Bill. We are taking powers to create a scheme for the registration of short-term lettings, the proliferation of which can cause problems in specific communities. The register will improve consistency in standards across all types of guest accommodation and deliver much-needed evidence and data on the number and locations of short- term lets in England.

We are also making permanent the provisions, introduced during the pandemic, streamlining the application for pavement licensing for outdoor dining in the Business and Planning Act 2020. To make these provisions work, they will be taken forward with minor modifications to their previous form based on feedback on the operation of the temporary measures during the pandemic.

In connection with our wider improvements to the heritage regime, we are placing into statute the requirement for authorities to maintain a historic environment record for all their areas. We are also allowing the Secretary of State to commission a review of the governance of the Royal Institution of Chartered Surveyors and providing powers for fees to be charged in connection with monitoring, variations and transfers of marine licences.

The breadth of the subject matter I have outlined seems eclectic, but these measures are all connected by our desire to empower areas through both devolution and improvements to existing systems to take advantage of the opportunities that they see. Through the reforms in the Bill, we seek to make it easier for areas to agree to devolution suited to them and shape their areas to take advantage of new opportunities while supporting their communities and safeguarding and improving the environment.

For the majority of the measures in the Bill, we are making changes only in relation to England. In some areas, the Bill extends beyond England, such as on environmental assessment, where it extends across the UK. I hope to have more to say on that subject later during the passage of the Bill once discussions with the relevant devolved Governments have concluded.

The House will also have noted the delegation of powers which the Bill provides to Ministers. We recognise the legitimate concerns that noble Lords have on this topic. We have sought to ensure that the powers we take are justified and appropriate to the policy in its context. I hope to be able to reassure your Lordships and make our case in relation to each measure as the Bill progresses. We will, of course, listen carefully to any suggestions that noble Lords may have.

The Bill enjoyed extended scrutiny in the other place and emerged all the stronger for that consideration. Your Lordships’ expertise on the complex matters with which the Bill is concerned can only further assist, and I look forward to working with them on achieving its objectives.

I very much look forward to the maiden speeches of the noble Lord, Lord Jackson of Peterborough, and the noble Baroness, Lady Anderson of Stoke-on-Trent. I join the House in giving them a very warm welcome to this place. I also look forward to the valedictory speech of the noble Baroness, Lady Harris of Richmond, who will contribute virtually. I hope that she can hear me when I say how much she will be missed in this House. I commend the Bill to the House and beg to move.

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[Baroness Scott of Bybrook (Con)]

First of all, I give my sincere apologises to the noble Baroness, Lady Harris of Richmond. I am so pleased that she is not retiring, and I look forward to her further contributions well into the future. I hope that she can hear me.

I am grateful to all noble Lords who have spoken today and am encouraged by the level of interest prompted by the Bill. As we have heard from noble Lords across the House, the Bill offers a genuine opportunity to empower local leadership to tackle issues on which they are the experts. Local power, exercised accountably, is the only way we will extend opportunity throughout our country. Too often, Governments have erroneously thought that centralising power will make them more effective. The lessons of the past 70 years are clear: that approach does not work. We must trust local areas and provide them with the tools to build their own futures.

This has been a substantial and valuable debate with significant contributions from across the House. I will respond to as many points as I can within the time I have, but, with over 65 speakers listed, it will be challenging, to say the least. I hope noble Lords will excuse me if I do not list a number of Peers; I appreciate everything they have said and ask for their forgiveness if I do not mention everyone by name. I also hope that they will forgive me if I do not address every point raised. Where I do not address a point, I will follow up with an extensive letter which I will copy to all Members who have spoken; I will also put a copy in the Library. I also repeat my offer to all noble Lords across the House to meet to discuss any of these matters in greater detail. I will put together briefings on some of the themes that have come out of the debate. I implore noble Lords to get in touch with my private office, and I assure them that I have written every question in my little book and will ensure that we get them answered.

Before I start discussing the Bill, I congratulate my noble friend Lord Jackson of Peterborough and the noble Baroness, Lady Anderson of Stoke-on-Trent, on their maiden speeches today. They both made excellent contributions to our debate, and I look forward to working with them both in future, not only on this Bill but on other Bills in the years ahead—if I am still standing here at the Dispatch Box.

I turn now to the matters raised in the debate. First, we will work with the Delegated Powers and Regulatory Reform Committee and consider any recommendations on narrowing the powers in the Bill, where appropriate. I know that that issue is of keen interest to this House, as we have heard in many contributions, and I am committed to working through any issues raised by the Select Committee.

I turn now to the levelling-up missions. This Government’s defining mission is to level up our country to close the gap in productivity, health, incomes and opportunities between much of the south-east and the rest of the country. That is made all the more urgent given the current economic context, with places across the country affected in different ways by these headwinds.

As the levelling up White Paper sets out:

“Levelling up is a moral, social and economic programme for the whole of government”


to spread opportunity and prosperity more equally across the country. The Bill sets out the framework for delivering on that levelling-up mission and places a statutory duty on the Government to publish an annual report on our progress on those missions. The Bill is an enabling Bill; it creates the foundations for action to be taken to address entrenched geographical disparities and to level up the country.

The Government recognise that scrutiny and seeking expert advice will be important to ensuring that we deliver on our missions and level up the country. That is why we have established the levelling-up advisory council, chaired by Andy Haldane, who will provide the Government with expert advice to inform the design and delivery of all these missions.

The levelling-up missions are intended to anchor government policy and decision-making necessary to level up the UK. However, these missions should not be set in stone: as the economy adapts, so too might the missions, to reflect the changing environment and lessons learned from past interventions. As we become more ambitious, or as better metrics become available, we should be able to update missions to reflect that. Importantly, the Bill sets out that any changes to missions should be fully and transparently explained and justified through a Statement to Parliament when they occur.

Our approach to the missions is the same as the approach taken with fiscal rules: they are subject to debate in Parliament but are not in law. His Majesty’s Treasury publishes its fiscal rules in a non-legislative policy document, but that is laid in Parliament. This does not prevent the Government from being held to account for keeping to their fiscal targets. The missions will be published in a policy document laid before, and debated in, Parliament. The first example of this document will be based on the levelling up White Paper, and future iterations will include the headline and supporting metrics used to define the missions and measure progress towards them.

The 12 levelling-up missions are a tool to break down silos and encourage co-operation across the public, private and voluntary sectors. To ensure that missions deliver these benefits, we are improving the way in which departments work together across central government, with clear accountability through named individuals taking responsibility for progress on each mission and with structures to enable joint working on each mission. To facilitate the cross-departmental co-ordination of levelling up at the ministerial level, a dedicated inter-ministerial group on levelling up has been established, chaired by the DLUHC Secretary of State.

I turn to devolution. The Bill sets out the procedure for the Secretary of State to devolve local authority and public authority functions to a combined county authority. This is similar to the procedure conferring these functions on a combined authority and individual local authorities in the 2009 and 2016 Acts. In each case, this might follow the agreement of a devolution deal.

The Bill will also align the processes for establishing and amending mayoral combined authorities to the proposed combined county authority processes, which will simplify devolution for areas, enabling more rapid expansion. By amending the current statutory consent requirements around the expansion of combined authorities and the conferral of powers, the Bill will enable more local authority areas to join combined authorities, expanding devolution, and to gain greater powers, deepening devolution, while ensuring that combined authorities are able to remunerate constituent authority councillors for their role on overview and scrutiny committees, ensuring stronger accountability.

In line with our focus on supporting local leaders to drive better outcomes and levelling up, the Secretary of State may make such regulations only if they consider that doing so would be

“likely to improve the economic, social and environmental well-being of some or all of the people who live or work in the area”.

The Secretary of State must have such discretion to implement deals that they have agreed with areas based on a robust assessment of whether all parts of this statutory test have been met. It is essential that a statutory test is considered and met in all cases: there may be instances where the area concerned has demonstrated that conferral of functions would meet one criterion of the test but not another. As we say in the levelling up White Paper, devolution must reflect local areas’ differences; there cannot be a one-size-fits-all approach. Devolution is informed by the devolution framework, but this is not a standard offer of powers, and there is scope to agree further powers on a case-by-case basis.

There have been calls for greater fiscal devolution, down to parish and town council level. This Government trust local government and its strong and accountable local leaders. We are exploring further fiscal devolution, initially through the trailblazer devolution deals. We will consider putting power back in the hands of local people through greater fiscal freedoms. I thank the noble Baroness, Lady Scott of Needham Market, for her contribution; I know she works very closely with town and parish councils. We want to make sure that parish and town councils can protect the assets and amenities which matter to them locally. The Government have enabled this to happen through their £150 million community ownership fund, which was launched last year to support communities to save assets at risk. I know of a number of pubs and local shops for which investment has been used for this purpose. As part of the levelling up White Paper, we also look at the existing community asset frameworks and how they might be strengthened.

On national planning policy, this Bill reforms decision-making to strengthen the role of the development plan in practice. Decisions will be able to depart from the development plan and any national development planning policies only where

“material considerations strongly indicate otherwise.”

It will no longer be enough for those other considerations to merely “indicate otherwise”.

Giving national development management policies statutory weight will give greater clarity to the role of national planning policies in planning decisions. This is crucial to reducing the number of planning appeals local authorities currently face, therefore reducing the number of unanticipated developments communities face on their doorstep as a result. I think I can safely say this is an outcome that we all want to deliver.

National development management policies are intended to cover general planning considerations that apply regularly in decision-making, of the sort already found in the national planning policy. Giving these statutory recognition will promote greater consistency and certainty across the planning system and allow local plans to be shorter and more locally focused.

National development management policies will provide greater assurance that important safeguards such as protections for areas at risk of flooding, policy on climate change and policies to protect the green belt will continue to enjoy the strongest levels of protection, underpinning key national policy protections with statutory weight when the local plan policies go out of date. They will not impinge on local policies for shaping development, nor direct what land should be allocated for particular uses during the plan-making process. These will remain matters for locally produced plans.

Some local plans are woefully out of date. For example, some date from the 1990s. It would be wrong to say that these must supersede national policy in the event of conflict between a national development management policy and the development plan, when a planning decision must be made in accordance with both. This point is particularly crucial, because we wish to use national policy to drive higher standards, especially on good design, the environment and tackling climate change. It is important that these can take precedence in the event of conflict with out-of-date policies in certain plans. Nevertheless, I would expect such conflicts to be limited in future, both because we are making it easier to produce plans and keep them up to date, and because the Bill makes sure that new plans will be drawn up consistent with national policies, including the national development management policies.

The need to level up urban and rural areas has rightly received substantial attention in this debate, and we have considered the impact on rural areas. The Bill will benefit rural areas by giving communities more of a say on local plans by way of a new infrastructure levy that can deliver as much, if not more, affordable housing than at present, and a new requirement for infrastructure providers and other bodies to provide assistance to local authorities in drafting their local plans.

Through a discretionary council tax premium for second homes and the infrastructure levy, LPAs will be empowered with more money to address issues that matter to the people living in rural areas, such as infrastructure, housing supply and affordability and the sustainability of local communities. Our second rural-proofing report, Delivering for Rural England, published last September, showed what levelling up might look like in a rural area and set out what the Government were doing. The independent Levelling Up Advisory Council is also exploring how it can offer specific insights into the design and delivery of levelling up in rural areas.

On rural funding, we launched the £110 million rural England prosperity fund on 3 September 2022 to enable local authorities to provide small capital grants to support rural businesses and community infrastructure. This is replacing funding previously provided by the EU through the LEADER and growth elements of the rural development programme for England and is a rural top-up to the UK’s shared prosperity fund.

On housing, I have a list here of many, if not the majority, of noble Lords who spoke today on this issue, but I will not read it out. Noble Lords will be aware of our consultation, launched last December, which sets out in more detail our proposed approach to planning for housing in Chapter 4. We are retaining a method for calculating local housing need figures, but these will be an advisory starting point; it will be up to local authorities, working with their communities, to determine how many houses can actually be built, taking into account the needs and nature of their local area, such as green belt, the existence of a national park or a coast, and recognising that building should not wholly change the character of an area. We propose to make changes to the rolling five-year land supply, ending this obligation where planned strategic housing policies are up to date. Communities will have a powerful incentive to get involved in their local plan.

The new infrastructure levy has received a considerable amount of debate this evening. The levy, set and raised by local authorities, will seek to deliver at least as much affordable housing. The Bill ensures that local authorities take the desirability of delivering at least as much affordable housing into account when they set their rates; this will be achieved in part through the right to require, which will enable local authorities to require developers to build on-site affordable housing. We will shortly consult on the levy on how the right to require will operate.

The noble Lord, Lord Best, as well as speaking knowledgably on affordable housing, referenced the Letwin review. While that review found no evidence of systematic land banking, it found substantial scope to accelerate build-out rates, particularly through diversification. The Government are clear that new homes should be built out as soon as possible when build-out is delayed. It is for councils and developers to work closely together to overcome any barriers. Our robust package of build-out measures seeks to encourage this.

It was questioned whether the infrastructure levy would be able to mitigate the impact of specific development. The levy is proposed largely to replace the complex and discretionary Section 106 regime. Under the infrastructure levy, we intend that in all cases local planning authorities will be able to require developers on all sites to provide infrastructure integral to that site. That includes infrastructure crucial to that site to function, such as access roads or connections to drainage networks. These items of infrastructure will continue to be delivered by developers.

This Government’s commitment to building 300,000 homes a year has been a significant topic of discussion. Our planning reforms will help to deliver enough of the right homes in the right places, and we will do that by promoting development that is beautiful, that comes with the right infrastructure, that is done democratically with local communities rather than done to them, that protects and improves our environment, and that leaves us with better neighbourhoods than we had before. The Government remain committed to continuing to work towards our ambition of delivering 300,000 homes a year in England, as set out in the 2019 Conservative manifesto. We are making strong progress in this area. Since 2010, over 2.2 million additional homes have been delivered in England, including more than 632,600 affordable homes.

Finally, I come to the environment. The Government recognise the challenge of climate change. It is critical that the planning system must address this effectively. Through the Climate Change Act 2008 the Government have committed to reduce emissions by at least 100% of 1990 levels by 2050 and to produce national adaptation programmes every five years that respond to economy-wide climate change risk assessments. The Bill sets out that local plans

“must be designed to secure that the development and use of land in”—

the local planning authority area—

“contribute to the mitigation of, and adaptation to, climate change.”

Our new outcomes-based approach to environmental assessment will ensure that the ambitions of the Environment Act and the 25-year environment plan are reflected in the planning process, placing the Government’s environmental commitments at the centre of decision-making.

The National Planning Policy Framework is already clear that plans should take a proactive approach to mitigating and adapting to climate change, taking into account the long-term implications for flood risk, coastal change, water supply, biodiversity and landscapes, and the risk of overheating from rising temperatures, in line with the objectives and provisions of the Climate Change Act 2008. The National Planning Policy Framework must be taken into account in preparing the development plan and is a material consideration in planning decisions. This includes the framework’s current policies related to climate change mitigation and adaptation. Furthermore, as committed to in the net-zero strategy, we will carry out a full review of the National Planning Policy Framework to ensure it contributes to climate change mitigation and adaptation as fully as possible. This will be consulted on as part of wider changes to the National Planning Policy Framework to support the ambitions in the Levelling-up and Regeneration Bill.

I thank noble Lords for their continued assistance with and support of the Bill and I look forward to progressing our discussions in Committee. I single out the noble Lord, Lord Heseltine, for his contribution this evening, for the foundations he laid through his trail-blazing work on devolution, and for the wealth of knowledge he brings to this debate. I hope he will continue to take part as the Bill moves through this House.

I have not been able to respond to each point raised, and I apologise, but I think I am already over time. Given the hour at which we are wrapping up this Second Reading, I hope that noble Lords understand the approach I have taken. I reiterate my commitment to meeting any Member of this House who wishes to discuss the Bill further. I have noted the missions, housing numbers, environment issues and devolution as issues on which I shall try to put together some meetings very quickly—certainly before we get to Committee. I have noted each request for a meeting that has been made this evening and I will instruct my private office to reach out to noble Lords to get these meetings set up. I hope that is acceptable to the House. I commend the Bill to the House.

Bill read a second time.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

That it be an instruction to the Committee of the Whole House that they consider the Bill in the following order:

Clauses 1 to 13, Schedule 1, Clauses 14 to 25, Schedule 2, Clauses 26 to 31, Schedule 3, Clauses 32 to 54, Schedule 4, Clauses 55 to 77, Schedule 5, Clauses 78 to 86, Schedule 6, Clauses 87 to 90, Schedule 7, Clauses 91 to 94, Schedule 8, Clauses 95 to 101, Schedule 9, Clauses 102 to 104, Schedule 10, Clauses 105 to 124, Schedule 11, Clauses 125 to 154, Schedule 12, Clauses 155 to 158, Schedule 13, Clauses 159 to 162, Schedule 14, Clauses 163 to 169, Schedule 15, Clauses 170 to 186, Schedule 16, Clauses 187 to 191, Schedule 17, Clauses 192 to 211, Schedule 18, Clauses 212 to 223, Title.

Motion agreed.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 20th February 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook)]

My Lords, levelling up is at the heart of the Government’s agenda to boost economic growth and build back better after the pandemic. It was at the centre of the manifesto on which the Government promised to deliver for the people of the United Kingdom. The levelling-up White Paper was published in February 2022. The United Kingdom is one of the greatest countries in the world but not everyone shares its success. As the levelling-up White Paper set out, we know that where people live unfairly affects their chances of getting on in life. Only through improving social and economic opportunities across the country can we rebalance the economy and achieve maximum growth. Safer streets, pride in place and more empowered communities can help drive local growth, investment and a more innovative economy. The Government are committed to reversing this unfairness and levelling up the UK by boosting growth and spreading opportunity more equally across the country.

The levelling-up White Paper set 12 levelling-up missions to anchor ambition and provide clarity over the objectives of public policy for the next decade. Delivering on these missions will improve people’s lives by improving living standards, spreading opportunities, enhancing local economic growth, restoring local pride, spreading opportunity and empowering local leaders across this country. Missions will also serve as an anchor for the expectations and plans of the private sector and civil society. This stability and consistency of policy aims to unleash innovation, investment and collaboration with the private sector and civil society.

Many of the powers in the Bill are enabling measures to help level up and deliver the missions in a way which reflects the characteristics of different areas. Missions are intended to anchor government policy and the decision-making necessary to level up the United Kingdom. However, missions should not be set in stone. As the economy adapts, so too will the missions to reflect the changing environment and lessons learned from past interventions. The Bill sets out that any changes to missions should be fully and transparently explained and justified when they occur.

We begin our first debate in Committee with Amendment 1, in the name of the noble Baroness, Lady Pinnock. I thank her for making it clear, as I would have made it clear, that this is a complex Bill. Everything she said about levelling up is correct: it will mean a lot of things to a lot of people, and it is about people and places.

I begin by assuring noble Lords that by setting out the missions to level up the United Kingdom the Government are identifying their priorities for reducing significant geographical disparities within the United Kingdom. As I have said, the White Paper explicitly sets out parameters for the agenda through the six capitals, four pillars and 12 missions. There is no denying that levelling up encompasses a broad and ambitious set of objectives. The Government’s focus now is on making levelling up a reality for people and places across the United Kingdom through funding, place-based policy and devolution to local leaders. We recognise that there is much more to do, but we are making progress.

The noble Baroness, Lady Lister, asked whether it is about bridging the gap between the rich and the poor. It is; when you talk about education, skills, good jobs and the provision of those things, that is about addressing the gap. If children live in homes where their carers or parents have good jobs, they will not be as poor as children who live in homes with no jobs. It is about addressing all those gaps.

--- Later in debate ---

Again, I thank the noble Lord, Lord Foster, for this debate. It is extremely important, and I hope the Minister has some positive things to say to us.

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments addresses issues impacting rural and coastal communities across the United Kingdom. Amendment 3, tabled by the noble Lord, Lord Foster of Bath, considers the reduction of disparities between predominantly urban and predominantly rural areas. Amendment 5, tabled by my noble friend Lady McIntosh of Pickering, puts forward a new mission to a similar effect, reducing the disparities between rural and urban areas in the provision of public services.

The framework set out in this Bill provides ample opportunity to scrutinise the substance of missions against a range of government policies, including levelling up in rural areas and improving people’s access to green and blue spaces. I can reassure noble Lords that the Government are committed to spreading the benefits of levelling up to rural communities and that spending by the Department for Environment, Food and Rural Affairs helps to support the levelling-up agenda.

The Government are already committed to delivering an annual report on rural-proofing, led by the Department for Environment, Food and Rural Affairs, and examining how government policy considers rural issues. I hope this reassures noble Lords that such work is going on by this Government. I will say more about rural-proofing in a minute.

I agree with the sentiments of Amendments 11 and 12, tabled by the noble Lord, Lord Foster. More granular spatial data is crucial to ensure that policy fully recognises the different characteristics, opportunities and challenges of different places, including between large cities, small towns, and rural and coastal areas. Many people have talked about data. It is important to have the data, both historically and moving forward, in order for us to make the metrics correct for what we are trying to deliver.

I will give a little more information, which is a bit technical—well, it seems technical to me; it may not to noble Lords—on what is happening within government to better identify these geographical disparities. To tackle these data gaps and harness the potential of new data visualisation and experimentation techniques in support of levelling up, the UK Government are putting in place a transformative data analysis strategy at subnational level. The strategy has four elements: first, producing and disseminating more timely, granular and harmonised subnational statistics through the Government Statistical Service’s subnational data strategy; secondly, making granular data publicly available through a number of tools, including a new ONS interactive subnational data explorer; thirdly, harnessing data visualisation techniques and building capacity within the ONS to help decision-makers better understand and compare outcomes; and, lastly, increasing incentives to evaluate, monitor and experiment in levelling-up policies and programmes. From that, I think noble Lords can see that we agree that data is important in delivering what we want to deliver in this levelling-up legislation.

To complement the strategy I have just explained, we are establishing a new spatial data unit to drive forward the data transformation required in central government. The spatial data unit will support the delivery of levelling up by transforming the way the UK Government gather, store and manipulate subnational data so that it underpins transparent and open policy-making and delivery decisions. This will include improving how we collate and report on the UK Government’s spend and outcomes, including building strong capabilities on data visualisation and insights. To me, it is really important that, first, we always know what is being delivered and what we want to deliver and that we have all the metrics to do that.

The spatial data unit will also consider the differences between geographical areas, such as regions, counties, councils, and even down to council wards, according to the needs and objectives of specific missions or policy areas. This will be extremely important, particularly when we are talking about small rural areas.

There was a lot of discussion about transport, an area in which it is important to have the data before decisions are made. As a council leader, I had to make some very difficult decisions about bus services. Some of them were never used, so why keep them? You need the data in order to make sound decisions.

The LURB introduces a series of powers to enable the introduction of the infrastructure levy, which will be able to account for the needs of those living in rural as well as urban areas, helping to support the provision of infrastructure that the areas need most. The Bill also requires local authorities to prepare infrastructure delivery strategies. These will set out a strategy for delivering local infrastructure through the spending of levy proceeds. They will create a more transparent process, so that local people know how the funds will be spent and what infrastructure will be delivered to support development. The Government have also just announced £3 billion for local bus and cycle links, because we understand that local transport is important to people. We will work with local leaders to ensure that they can use their powers to improve the services in their area, set the fares and make transport far more accessible for their local communities.

Amendment 33, tabled by the noble Lord, Lord Carrington, would require that annual reporting on the levelling-up missions include an assessment of how each mission has met the principles of the rural-proofing policy. Amendment 36, tabled by the noble Lord, Lord Foster of Bath, states that reporting on missions must include the Minister’s assessment in relation to rural areas. Amendment 53, tabled by the noble Baroness, Lady Taylor of Stevenage, asks for a report assessing whether new legislation should be produced to establish new metrics for rural and coastal communities. Finally, Amendment 488, tabled by the noble Baroness, Lady Hayman of Ullock, suggests the publication of the assessment of infrastructure levels in coastal and rural communities.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I draw attention to my interests as a serving councillor on Stevenage Borough Council and Hertfordshire County Council, and as a vice-president of the District Councils’ Network.

At Second Reading, I said that to some extent the Bill fails to meet the aspirations of the White Paper, but even the White Paper has significant omissions in that some of the key challenges which impact on opportunity and aspiration in this country are missing. This cannot be a levelling-up Bill without them, and this group of amendments seeks to address that.

In his contribution, the noble Lord, Lord Stunell, said that the missions were not in the Conservative manifesto, so we cannot absolve the Government from parliamentary scrutiny of those missions. However, neither can that proscribe Parliament from consideration of missions that were not there at all, or prevent those missions being added.

I thank my noble friend Lady Lister of Burtersett for her fantastic speech and amendment on child poverty, along with the right reverend Prelate the Bishop of Durham, and I thank the right reverend Prelate the Bishop of Gloucester for delivering another powerful speech on that issue. I also thank the noble Baronesses, Lady D’Souza and Lady Stroud, for supporting the amendment.

My noble friend Lady Lister referred to an issue raised at Second Reading—that it was the Government’s stated intent that the Bill address child poverty, and yet it is not explicit in the missions. The powerful intervention of the noble Lord, Lord Bird, addressed, among other things, the contribution that social housing can make to tackling poverty. I completely agree, having grown up in a council house myself and seen how good-quality social housing benefited the people around me. That is very powerful. There is also no excuse for not including child poverty in the missions.

The right reverend Prelate the Bishop of Gloucester spoke about the difficulties in education when you are facing poverty. When I was growing up, providing things as straightforward as school uniform, ingredients for cooking lessons and sports equipment were all great worries for children growing up in poverty.

The statistics are startling, and my noble friend Lady Lister quoted some of them. Some 27% of children—that is, eight in every classroom of 30—live in poverty, and of course the figure is far worse in some areas. In part of the county council division I represent in Hertfordshire—one of the wealthier areas of the UK, let us remember—one in three children lives in poverty. I have seen at first hand the impact on those children’s life opportunities in terms of educational attainment, health, mental health, economic capacity and every aspect of well-being: cultural, physical, social and academic. To imagine that levelling up can happen at all without a real focus on child poverty dooms the whole endeavour to failure.

For those of us who witnessed the huge impact of Sure Start and the comprehensive strategy of investment in children between 1998 and 2010, as a result of which, the number of children living in poverty fell by 600,000, it was dreadfully disappointing to see that project abandoned and the figures start to rise again. This situation has been exacerbated by the further inequalities that Covid inflicted on deprived communities. The Bill has the potential to start the serious work of tackling child poverty again. Let us not miss the opportunity, simply by not including child poverty as a serious and specific mission. My noble friend Lady Lister rightly asked why it was not in the White Paper or the Bill, and the noble Lord, Lord Young, proposed a solution. There may be other ways of doing it, and I hope that the Minister has taken account of what she has heard in the Chamber this afternoon.

I am grateful to the noble Lord, Lord Holmes of Richmond, for his advocacy for our disability community—I am sorry he could not be in his place this afternoon. As he says, this should be considered through every policy aspect of the Bill. Despite successive Acts of Parliament attempting to drive equalities forward in this respect, one has to spend only a very short period in the company of anyone with a disability to see just how far we still have to go. Access to transport, public buildings, education and the workplace, and the ability to participate in the political process, simply must get better if we are to see real levelling up. These are spatial issues, planning issues, and I hope we will see some progress as a result of the Bill.

I am grateful to my noble friend Lady Hayman for tabling the amendment on increasing cultural infrastructure across the UK. Unfortunately, due to the vicious cuts in local government funding in recent years, we have seen local cultural assets closed or mothballed across the country just at a time when creativity, innovation and celebration of local heritage could be creating jobs, developing skills, supporting mental well-being, giving educational opportunities and underpinning social cohesion and collaboration. In an excellent report from the Local Government Association, Cornerstones of Culture, the noble Baroness, Lady Young of Hornsey, chair of the Commission on Culture and Local Government, sets out the incredible opportunities that supporting the development of cultural infrastructure can deliver in terms of levelling up. As a resident of Hertfordshire, which is rapidly becoming the Hollywood of Europe, with film, TV and creative studios driving our economy—there is always a commercial in my speeches—and creating huge opportunities for our county, in particular its young people, I can say that the benefits this cultural intervention could bring across the UK are clear to see.

We have amendments from the noble Lord, Lord Stunell, and the noble Baroness, Lady Parminter, on meeting net zero, which are very welcome. There was a huge discussion on this on Second Reading, and it was notable just how many noble Lords said that without a specific mission to drive the target of reaching net zero across our nations and regions and across all policy areas, the Bill would be significantly deficient and miss a valuable opportunity. It is difficult to understand why amendments tabled the other place that attempted to strengthen the Bill in this respect were not adopted. As far as I am concerned, the situation is quite simple: either the Government mean what they say on net zero and climate change mitigation, in which case, make it the subject of a specific mission, or they do not. The consequences of the latter are enormous and unthinkable. It absolutely must be a target of devolution that every place in the UK fulfil its role in delivering net zero, and that progress be monitored.

The noble Lord, Lord Stunell, pointed out that achieving net zero is most challenging in the areas most in need of levelling up. The south-east is improving in this regard while the north-east is continuing to decline. At COP 27 the Prime Minister made a commitment to honouring promises on climate finance. That must apply equally across our nations and regions, as it does to external funding support. Yet, at the moment we do not even have a commitment to financing, for example, the decarbonisation of public housing. I urge the Minister to take seriously the strongly held concerns of noble Lords across this House about leaving out net zero as a specific mission of this levelling-up Bill. I will be particularly interested to hear the Minister’s thoughts on how green jobs, new biodiversity targets and environmental planning challenges each relate to the levelling-up agenda, and how the Bill can be improved by incorporating these.

I thank the noble Baroness, Lady Willis, for her powerful speech on a healthy environment and for pointing out that access to green space is definitely an equalities and levelling-up issue. The link to health and mental health outcomes is clear from all the evidence the noble Baroness cited and that we see elsewhere. Can the Minister say why this cannot be dealt with in the planning frameworks? I was lucky enough to grow up in a new town, where green space such as parks was planned from the very start. It comes under increasing pressure as the cramming of urban areas is seen as a way of solving the housing crisis. That cannot be right, and we need to have a careful look at this from a planning point of view.

We have a group of amendments here that are intended to address serious omissions from the Bill and include missions that will make a significant and important contribution to the levelling-up agenda. I hope that the powerful words of the noble Lords who have contributed to this debate will receive a receptive hearing from both the Minister and the Secretary of State.

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments includes those related to new missions and metrics. The missions contained in the levelling-up White Paper are the products of extensive analysis and engagement; this analysis is set out in the White Paper. As I have made clear already, the Bill is designed to establish the framework for missions, not the content of missions themselves. The framework provides ample opportunity to scrutinise the substance of those missions against a range of government policies.

I start by addressing Amendments 4 and 9, tabled by the noble Baronesses, Lady Lister of Burtersett and Lady Hayman of Ullock, which would require the levelling-up missions to include a mission on child poverty. Let me say that everybody in this Government accepts that child poverty is an issue that needs continually to be kept an eye on, managed and acted upon. However, the way we deal with it is perhaps the issue that we need to discuss. We believe that the best and most sustainable way of tackling child poverty is to ensure parents have opportunities to move and progress in the workplace. Setting targets can drive action that focuses primarily on moving the incomes of those just in poverty to above a somewhat arbitrary poverty line, while doing nothing to help those on the very lowest incomes or to improve children’s future prospects. We therefore have no plans to reintroduce an approach to tackling child poverty that focuses primarily on income-based targets. Ministers and officials engage extensively across government to ensure a co-ordinated approach to tackling poverty, and we will continue to do so in the future.

Moving into work is the best way to improve lives. In 2019-2020, children in workless households were over six times more likely to be in absolute poverty than those in households where all adults were in work. Since 2010, there are nearly 1 million fewer workless households; under the Conservatives, 1.7 million more children are living in a home where at least one person is working. However, that is not to be complacent. The issue for me—the noble Lord, Lord Best, brought it up—is good housing, good education, good skills and good jobs. All these things are covered by the missions, and they do not need to be one separate mission.

While I am talking about living standards, my noble friend Lord Young asked about the definition of living standards. The Bill seeks to raise the living standards of people in work and people who are able to work, or whom we can get into work:

“By 2030, pay, employment and productivity will have risen in every area of the UK,”


getting those who are not already in work into work. That is the definition in the White Paper.

The levelling-up White Paper highlights the challenges faced by children from disadvantaged backgrounds, and how these vary between and within places. It takes a systematic approach, through the missions, to address a number of factors which we believe contribute to child poverty. The levelling-up mission on living standards commits to increasing pay and employment in every area of the UK, which would in turn help to reduce child poverty. We are also committed in the White Paper to investing an extra £200 million to expand the Supporting Families programme in England, which will help to improve the life outcomes and resilience of vulnerable children and their families. Additionally, over £300 million in funding for family hubs and Start for Life has been allocated to 55 high-deprivation local authorities, supporting a focus on perinatal mental health and parent-infant relationships, infant feeding and parenting support. These are very important at the beginning of a child’s life, as we heard again from the noble Lord, Lord Bird.

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[Lord Stunell (LD)]

I appreciate what the Minister is saying, and it is not part of my case that investing in green jobs has been a failure. My point was that investing in green jobs has been very successful, but it has been more successful in the more prosperous regions. Consequently, the disparity between the rich region and the poor region is widening. Clearly a major redirection of thinking is needed to ensure that the green investment and the green jobs are channelled in the right way. The noble Lord, Lord Lansley, said that he did not want to see Cambridge levelled down. I do not want to see London levelled down. I want to see the north-east levelled up, up, up. The metrics will have to be adjusted to accommodate that.

[Baroness Scott of Bybrook (Con)]

That is exactly what I said. We need to look at where these jobs are. An example of that is the £1 billion funding to support new investment in carbon capture, utilisation and storage in four industrial clusters or super-places across the UK. The net-zero strategy announced the first two clusters, one in the north-west and north Wales and the other in Teesside and Humberside. We are working to take that investment across the country and to places that need it.

This Government are committed to reducing greenhouse gas emissions across the country to reach net zero by 2050. There is a statutory duty within the Climate Change Act 2008 on the Secretary of State for Business, Energy and Industrial Strategy to set a carbon budget for successive periods of five years and to ensure that the net UK carbon account for the budgetary period does not exceed the carbon budget that has been set. Section 16 of the Climate Change Act 2008 also requires the Government to publish an annual statement of UK emissions, already in statute.

In addition to all this, the Treasury has mandated the consideration of climate and environmental impacts in spending decisions. Through its updated green book, policies must now be developed and assessed against how well they deliver on the Government’s long-term policy aims, such as net zero.

[Lord Stunell (LD)]

I apologise to the Minister for intervening again, but can I press her? Of course, that is all worth while, but will that analysis be on a regional basis or simply on a whole-country basis? We need to know, or the Minister needs to know, whether year by year that gap is widening or narrowing because of that extra green investment.

[Baroness Scott of Bybrook (Con)]

I spoke earlier about data and the processes and policies that we are putting in place for data capture and analysis. These are the things that will come out of that. I expect that to be one of the outcomes that we will see in the reviews of the missions.

I am very sorry that my noble friend Lord Holmes of Richmond was not here, but I know what he would say because he is a huge voice for disabled people in this country. I thank him for that and for his Amendment 14. If the House agrees, I will respond to it. The objective of improving the lives of disabled people has been considered throughout the levelling-up White Paper. People with disabilities are less likely to be employed, and face additional challenges in workplace progression. The White Paper highlights the in-work progression offered to support better employment opportunities. We need to continue this. The disability employment gap is widest for those who have no qualifications, hence why we will continue to work closely with local authorities to improve their special educational needs and disability services where they are underperforming.

The Government are delivering for disabled people. We have seen 1.3 million more disabled people in work than there were in 2017, delivering a government commitment five years early. We have supported the passage of two landmark pieces of legislation—the British Sign Language Act and the Down Syndrome Act. We have also delivered an additional £1 billion in 2022-23 for the education of children and young people with more complex needs.

Amendment 16 tabled by the noble Baroness, Lady Hayman of Ullock, would require this Government and future Governments to include a mission to increase cultural infrastructure across the UK within mission statements. I agree with her that people’s lives are shaped by the social and physical fabric of their communities. The local mix of social and physical capital, from universities to good-quality green spaces and from libraries to local football clubs, gives areas their unique character and vibrancy and makes residents proud to live in that place. Recognising that in the levelling-up White Paper, the Government set a “pride in place” mission. The Government’s ambition is that, by 2030, people’s satisfaction in their town centre and engagement in local culture and community will have risen in every area in the United Kingdom, with the gap between top-performing and other areas closing. Increasing cultural infrastructure will be key to achieving this mission.

The Government have taken practical steps to support, protect and expand cultural infrastructure. The £1.5 billion cultural recovery fund rescue packages helped thousands of cultural organisations across a range of sectors to stay afloat during the Covid-19 pandemic, while the community renewal fund, the community ownership fund, the levelling-up fund and the UK prosperity fund have provided opportunities to enhance cultural arts, heritage and sporting infrastructure in places across the country. The mutual importance of cultural and place identity is recognised in the Government’s work with places, such as through the devolution deal and the pilot destination management organisation initiative in the north-east of England.

I hope that the extent of the Government’s action on these priorities, set out elsewhere in the policy, and the approach that has been set out—a clear, uncluttered and long-lasting framework for levelling-up missions—provides Peers with sufficient assurance not to press their amendments.

[Baroness Bennett of Manor Castle (GP)]

The Minister addressed climate mitigation but not climate adaptation and resilience. Can she write to me about the ways in which the Bill addresses those resilience and climate adaptation issues?

[Baroness Scott of Bybrook (Con)]

I will read Hansard, then write to her and put a copy in the Library.

[Baroness Lister of Burtersett (Lab)]

My Lords, this debate has shown the importance of some of the gaps in the Government’s levelling-up mission. It also shows how social and environmental justice are intertwined in terms of child poverty, the environment and disability, as we have talked about. They gel together well as a set of amendments.

I am very grateful to noble Lords who spoke in support of Amendment 4. Some powerful speeches have enriched the case for adding a child poverty mission to the list of missions. I am very grateful to the noble Lord, Lord Young of Cookham, who looked for a way through without an extra mission but looking at how the current missions could be adapted. It was very disappointing that the Minister rather rejected that olive branch—that way out or way through—and has not even agreed to take it away and consider it as an option.

I thank the Minister for engaging with the issues raised, but, needless to say, I found her response very disappointing. I think she said that the Government accept that child poverty is an issue that we must keep an eye on, manage and act on—but where is the Government’s child poverty strategy? There is none. It is simply not good enough to say that it is all about getting parents into paid work, without even acknowledging the growth of in-work poverty and the number of children in families who have someone in paid work and yet are in real, serious poverty.

The Minister said that she did not want to have targets that would just take people above the poverty line. That is one of the reasons why the amendment talked about deep poverty, not simply getting those just below the line over it. It is a shame that the noble Baroness, Lady Stroud, could not be here, because her Social Metrics Commission has done a lot to draw attention to the increasingly serious issue of the depths of poverty. We now have organisations such as the Joseph Rowntree Foundation talking about destitution. In our modern-day society, this is really not something to be complacent about.

The Minister said, “we are not complacent”, but she then went on to repeat all the wonderful things that the Government are doing, none of which is reducing child poverty—they may be managing it but are not reducing it. It is irrelevant to this amendment to say that we are doing this and that, because those things are not serving to reduce the level of child poverty. I am afraid that, for me, that smacks of complacency.

I do not want to keep people from their dinner. The Minister said that she hoped that we would be reassured by what we had heard and withdraw the amendment. I will of course withdraw, but do not take that as me being in any way reassured. I am not. We will have to consider whether we want to come back on Report with an amendment on child poverty. But, for now, I beg leave to withdraw.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 22nd February 2023 Lords Chamber

[Baroness Pinnock (LD)]

I want to know who measured that.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, as I have set out in earlier debates, it has always been the Government’s intention that the first statement of levelling-up missions would contain the missions from the levelling-up paper. I want to repeat what I said yesterday about why we are not putting the missions on the face of the Bill. The missions will be published in a policy document laid before, and debated in, Parliament. The first example of this document will be based on the levelling-up White Paper and future iterations will include the headline and supporting metrics used to define the missions and measure progress towards them.

If we put them in the Bill, it would make this part of what we want to do—and what we think it is right to do—very inflexible. This way, Parliament and the public will have the opportunity to scrutinise progress towards the missions, including annually when the report is published. This is comparable to other key government objectives documents such as the Charter for Budget Responsibility, which is laid before Parliament for scrutiny. That is why we are doing it this way, and I thank my noble friend Lord Lansley for supporting that way forward for the second day running.

I now move to the amendment tabled by the noble Baroness, Lady Hayman of Ullock, which inserts the Government’s levelling-up missions into the Bill. As I have said, that is not what we are going to do, because we do not feel that there would be flexibility if anything changes—for example, economics, data, pressures and issues in particular areas of the country. We would not have the flexibility to change the missions and scrutinise them, as I have said.

The 12 levelling-up missions are the product of extensive analysis and engagement. They cover the areas that require improvement to achieve an increase in the six capitals in the White Paper—human, physical, intangible, institutional, social and financial—and are needed to reduce the geographic disparities that we discussed today and that are identified in the White Paper. They are designed to be ambitious but achievable. They are necessarily spatial in their nature and definition, and they are neither national nor aggregate.

The missions are supported by a range of clear metrics, used to measure them at an appropriate level of geography. These metrics take account of a wider range of inputs, outputs and outcomes needed to drive progress in the overall mission. The metrics cover a wide range of policy issues but are all clearly linked to the drivers of spatial disparities.

I reiterate that the Bill is designed to establish the framework for missions, not the content of the missions themselves. The framework provides ample opportunity to scrutinise the substance of the missions against a range of government policies.

The noble Baroness, Lady Hayman, brought up the allocation of levelling-up funds being made according to government priorities, rather than local need. Places are invited to submit bids—under the themes of the regeneration of town centres, local transport and culture —that they feel best meet the levelling-up needs of their area. Part of our strategic fit assessment test is on how far a place’s bid locks into its wider levelling-up plans and how well it is supported by relevant local stakeholders and community groups.

My noble friend Lord Holmes of Richmond is not here and will therefore not move Amendment 13, but a number of noble Lords brought it up and I felt I ought to respond to it quickly. The levelling-up White Paper highlights the importance of the educational attainment of primary schoolchildren and sets out a clear mission to significantly increase the number of primary school- children achieving the expected standards in reading, writing and mathematics. In England, this will mean that 90% of children will achieve the expected standard, and the percentage of children meeting the expected standard in the worst-performing areas will have increased by over a third. As we know, reaching the expected standards in these subjects is absolutely crucial for children to succeed at secondary school, which paves the way for success in later life. Ensuring that as many children as possible have these skills, regardless of their location or the current quality of their school, is an ambitious target, particularly as we work to recover lost learning from the pandemic.

We are already starting on that. The Education Endowment Foundation, which gives guidance and support to schools, has a £130 million grant. Importantly, we are supporting 55 education investment areas, including starting interventions in schools with successive “requires improvement” Ofsted ratings. We are also delivering a levelling-up premium—a tax-free additional payment to eligible teachers in priority subjects—which is very much weighted to those education investment areas. We have started already, with over 2 million tutoring courses, particularly for young people who were affected by the lack of education during the pandemic.

From Second Reading, I know that many noble Lords are interested in health inequalities in this country—we heard that again today. I am sorry that the right reverend Prelate the Bishop of London is not here, but her Amendment 15 was nobly spoken to by the noble Lord, Lord Best. It puts forward that the missions must include reducing health disparities. I note Amendment 59 from the noble Baroness, Lady Hayman of Ullock, and Amendment 30, tabled my noble friend Lord Holmes of Richmond, who is not here, although it was mentioned by noble Lords. All of these would mean that geographical disparities include health outcomes.

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[Baroness Pinnock (LD)]

My Lords, three issues have been raised by this small group: defining geographies—we talked a lot about geographies and spatial disparities— and granularity; independent scrutiny, which is really important; and then funding allocation and how that happens. I am beginning to think that the Government and the Minister may regret the publication of the levelling-up White Paper because it is a fountain of really good information.

On geographies, we need to understand what we mean by “geographies”. The noble Baroness, Lady Young, talked about very small pockets of multiple deprivation, and largely we have been speaking in the previous debates, yesterday and today, about big, regional or county-wide differences across the country. We need to understand at what level—or is it at all levels?—levelling up will take place. The levelling-up White Paper is quite handy in that regard—the Minister is nodding, so that is a good start. It has not taken IMD—the index of multiple deprivation—but it has a great map; I love maps which are mapped out according to datasets of this sort. It is figure 1.13 in the book, if noble Lords want to know. It has mapped, across local authority areas, gross value added, weekly pay, healthy life expectancy and level 3+ equivalent skills in the adult population. It is very revealing.

The map shows where there are all four of those indices in the lowest quartile of the measures. Where are they? According to this map, it is not always where you suspect. One of the areas is north Norfolk— I would never have thought that. Another area is where we would expect: the north-east, shown as a great, dark blob where that is a problem. Then there is the area down the Yorkshire coast and then obviously on the Lancashire coast, where you would expect—and then central Devon. So this is a very important sort of dataset to use. That is on a big scale. However, when my noble friend Lord Shipley introduced this, he talked about being able to go below that level of dataset to understand where the highest levels of multiple indices are occurring on a regular basis and how that can be tackled.

So that is the first point: it is not defined in the Bill, and we need a definition of what we are tackling in terms of geographies. So I totally agree with my noble friend Lord Foster about the granularity and importance of the data, and I agree with my noble friend Lord Scriven on supporting the amendment in the name of the noble Baroness, Lady Hullock—I am so sorry, I always do that; I meant the noble Baroness, Lady Hayman of Ullock—on the importance of independent scrutiny.

Finally, on the allocation of levelling-up funding to date, if this is a symptom of how it is going to occur in the future, we may as well abandon levelling up. The House of Commons Library has a report on the funding to date and where it has gone. The Government have put local authority areas into priorities 1, 2 and 3, with 1 being the most needy. I would expect that, unless there were exceptional circumstances, the money would go to priority 1. But no: 59%, only just above half the money, has gone so far, in the first two rounds of funding, to priority 1 areas. Some has even gone to priority 3 areas, which, by the Government’s own definition, are doing okay. So what is this about levelling up?

In response to the question about the cost of bids, I know, because I spoke to the chief executive of Leeds City Council, that it spent a third of a million pounds on drawing up bids for level 2 and got not a penny piece in return. When local government across the country, or certainly where I am, is cutting its budgets—£43 million has to be found in my own budget in Kirklees because of rising energy prices, inflation and all the rest of it—local government cannot afford to spend a third of a million pounds on making bids that then get turned down because the Government decide to hand the money to local authorities in priority 3 areas. It is not right, it is not levelling up and it needs to change.

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments addresses the assessment of levelling up. Amendment 10 was tabled by the noble Lord, Lord Shipley, and supported by the noble Lord, Lord Foster, with whom I am more than happy to have a teach-in on data for anybody who would like to come and learn more about the technicalities—please just let me know. The amendment would define criteria that could be used to evaluate levelling-up policies that aim to address geographical disparities.

As I set out in detail to noble Lords in our first day of Committee, the missions contained in the levelling-up White Paper are a product of extensive analysis and engagement. The missions are supported by a range of clear metrics, used to measure them at the appropriate level of geography, and these metrics take account of a wider range of inputs, outputs and outcomes needed to drive progress in the overall mission. These metrics cover a wide range of policy issues but all are clearly linked to the drivers of spatial disparities. This has been set out in the White Paper.

I turn to Amendment 48, tabled by the noble Baroness, Lady Hayman of Ullock. This amendment would require an assessment by the independent evaluating body to be included in any review of statements of levelling-up missions. We have accepted in this Chamber that scrutiny and seeking expert advice will be important in ensuring that we deliver on our missions and level up the country. That is why we have established the Levelling Up Advisory Council to provide government with expert advice to inform the design and delivery of the missions. The council includes voices from different parts of the UK.

I know that the noble Lord, Lord Scriven, might not have been here for the debate on a previous group but I should say that the advisory council is chaired by Andy Haldane and its membership was published in the White Paper. The council members are not tied to government views and the council is made up of renowned independent experts in their field, such as Sir Tim Besley, professor of economics and political science at the London School of Economics; Cathy Gormley-Heenan, a former deputy vice-chancellor of research and impact at Ulster University; Sacha Romanovitch, the CEO of Fair4All Finance; and Sir Nigel Wilson, chief executive at L&G. All are independent experts in their field. We welcome the challenge and expert advice that the council provides and have been clear that we want it to provide us with candid views and challenging recommendations for how the Government are delivering levelling-up policy.

[Lord Scriven (LD)]

The noble Baroness read out a list of eminent people and said that their voice is important. If that is the case, why cannot their assessment and report be in the Bill, as the amendment seeks, and part of the Government’s independent assessment of geographical disparity? Under the present Bill, there is only the Minister’s assessment of whether the missions are narrowing geographical disparity. If these people are so eminent and important, why cannot that be part of the report to both Houses of Parliament?

[Baroness Scott of Bybrook (Con)]

No one has said that those views cannot be taken when the missions are scrutinised by both Houses of Parliament. However, we will not put it in the Bill, as in our opinion that would not be appropriate.

Amendment 58, tabled by the noble Baroness, Lady Hayman of Ullock, would change the definition of disparities in the Bill. The amendment is right to note that geographical disparities may include differences between regions, counties, councils and council wards. However, in the course of our work on the levelling-up White Paper, it has become clear that the appropriate unit of comparison will vary depending on the mission or policy area.

To help us tailor analysis and policy to the UK’s complex economic geography, timely and robust spatial data have been made a foundational pillar of the new policy regime for levelling up. More granular spatial data is crucial to ensure that policy fully recognises the different characteristics, opportunities and challenges of different places—including, as we heard from the noble Lord, Lord Foster, on two occasions now, rural and urban areas.

[Baroness Hayman of Ullock (Lab)]

That is really important but I should like clarification on who is collecting the data, how it is analysed and what the timescales are. That would be really helpful.

[Baroness Scott of Bybrook (Con)]

There may be more questions but I am coming on to some of that.

That is why my department has established a new spatial data unit, transforming the way in which the UK Government gather, store and manipulate subnational data so that it underpins transparent and open policy-making and delivers decisions. This will include improving how we collate and report on UK Government spend and outcomes, including building strong capabilities on data visualisation and insights. Working closely with other departments, the unit will consider differences between geographical areas, such as regions, counties, councils, council wards and so on, according to the needs and objectives of specific missions or policy areas. I am more than happy to have a teach-in about this, as it is important.

[Lord Stevens of Birmingham (CB)]

Is the Minister willing to consider her department publishing for each local authority area the gap between the need for and availability of adult social care? That data is available already, and if the department started to publish it, it would build confidence across the House that the department would advance this agenda without the need for placing requirements in the Bill.

[Baroness Scott of Bybrook (Con)]

I would like to go back on that specific issue because we would need to work with the Department of Health and Social Care and get its agreement. We are quite early in the establishment of the unit in order to do that, but I will take back that issue and come back to the noble Lord.

[Lord Lansley (Con)]

I am sorry to interrupt my noble friend. I am coming back to a point that she raised a moment ago on the Levelling Up Advisory Council, which I mentioned on Monday but did not at that time get an answer on whether it had met, what it discussed, what it said and to whom. I now discover that on 14 February a Minister in the department wrote to Clive Betts, the Select Committee chair, to say that the council had met several times, had met Ministers and was engaging in a research programme. It was interesting, because the letter said that the council had

“engaged in discussions on levelling up policy with stakeholders externally, including members attending an event with Carsten Schneider … Minister of State for East Germany and Equivalent Living Conditions, hosted by the German Embassy”.

Might the council engage at all with Parliament? We are told that the council has been around for a year, but I have had no engagement—no one from the council has come anywhere near me to suggest that it might talk to us about the levelling-up missions.

[Baroness Scott of Bybrook (Con)]

I do not know, but the council is already in train and working. On the fact that it has not come to Parliament, I will ask what the remit has been for the past year. It may have been a remit just to get together on some early work, but I will get an answer to my noble friend on that.

[Lord Foster of Bath (LD)]

I am sorry to interrupt because I know that the Minister wants to get on, but can she tell us at least whether the advisory board has expressed any view on the levelling-up Bill before us, and whether she will make that public?

[Baroness Scott of Bybrook (Con)]

I do not know whether it has any views on it at the moment, but I will ask that question.

Alongside this, my department has also established a new deep-dive team, to take a new place-based approach to policy-making. This is quite important. This team gets to know specific places. To date, these places have included Blackpool and Grimsby. It combines the granular data that we are beginning to put together with local knowledge, to identify a set of policy interventions to make a noticeable difference to the people living there.

The noble Baronesses, Lady Taylor of Stevenage and Lady Young of Old Scone, brought up individuals. We go down to council wards, but there are people. We are talking about people. The levelling-up White Paper is a plan for everyone. The focus is on the left-behind places, but the ultimate goal of levelling-up policies is to improve the living standards and quality of life of the people living in those places. This means that where individuals with certain protected characteristics are disproportionately affected, they will benefit from the whole levelling-up programme policies and systems change. For example, some ethnic minority groups have, on average, poorer health outcomes. They are more likely to be living in non-decent homes. By aiming to reduce these disparities across the UK and in places where they are most stark, levelling up will have a positive impact on the places and, as importantly, on the people.

There were a number of questions or comments on the levelling-up fund, which I would suggest are probably for the sixth group of amendments. However, I will answer a couple of them; they were all more or less the same views. The levelling-up fund index identifies those places in greatest need, as we have heard, of this type of investment. In this round 2, 66% of funding has gone to category 1. Those are the places of greatest need. Over rounds 1 and 2, 69% of funding has gone to category 1. I can also say that in investment per head of population, the highest investment went to Wales, followed by the north-west and then the north-east. The money is going to the right places but that is just as an aside because this will come up again in group six.

This approach, set out in the Bill, sets a clear, uncluttered and long-lasting framework for measuring the progress of levelling-up missions. I hope that this provides the noble Lord sufficient assurance to withdraw his amendment.

[Lord Shipley (LD)]

My Lords, I am very grateful for the Minister’s response, but the more I learn, the more worried I get. I have learned tonight that the independent assessors have met several times. I have not seen any public report about what they are doing. Parliament has a role in this. It is reasonable in the context of this Bill proceeding that more information is provided to us.

We have learned that we have a spatial data unit in the department, and that we have a deep-dive team, but what this team is doing is ill defined. I have said several times in this Chamber that you cannot run England, with its 56 million people, out of London. It is simply too much. Therefore, the question will be: what exactly is the spatial data unit doing and what exactly is the deep-dive team doing? To whom are those bodies speaking at a local level so that they are properly informed?

I was encouraged that the Minister did talk about councils and council wards. I was aiming at postcode areas, and the noble Baroness, Lady Hayman of Ullock, was aiming at councils and council wards, so at least we have some progress. There is an offer of a teach-in. A seminar, at the very least, has become fundamental. As the noble Lord, Lord Stevens, said, how about the Government starting by publishing the gaps in social care? I had not realised that those gaps have not been published, even though they are available.

There is a fundamental set of issues here about the public’s right to know. If this is a Bill which is levelling up, surely the metrics of that must be discussed by us before it gets very much further. So I repeat my suggestion that the Minister takes all the missions and metrics away, takes account of everything that noble Lords have said in this Chamber in the two days in Committee so far, and rewrites the missions and the metrics so that we can produce the outcomes that a levelling-up Bill should be producing. Having said that, I will come back to this on Report.

[Baroness Scott of Bybrook (Con)]

On the deep-dive teams, of course they are working with local people. I have said that this combines the granular data that we have with local knowledge, and works with local organisations, local councils and other organisations in areas to identify those interventions. Surely this is what your Lordships would want a good Government to do.

[Lord Shipley (LD)]

I would be very happy with that, but I did not know about, and I think that no one else in this Chamber was aware of, the deep-dive team. That raises another set of questions. Perhaps the Minister can write to us about this, explaining exactly what this deep-dive team is doing and where it is working. I have a fear that we are going to see the regional directors for levelling up appointed at some point. There has been mention of having regional directors. Can you imagine in a country of 56 million people having regional directors for levelling up? It is an absurdity as a concept. I hope that the Minister is willing to tell us that this will not be actioned. That was reported in the i newspaper about 10 days ago. However, somebody has decided where the deep dives are taking place. It may well be that all kinds of bodies are being talked to, but this information needs to be more publicly shared. With that, I beg leave to withdraw my amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 22nd February 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments is related to the levelling-up fund, which directly supports the mission set out in the White Paper through investment in the infrastructure that improves the everyday lives of local residents across the country, focusing on regenerating town centres and high streets, upgrading local transport and investing in culture and heritage assets. The second round of the levelling-up fund announced by the Government will invest £2.1 billion in 111 local infrastructure projects across the UK, helping to create jobs and spread opportunity right across the country, from the higher education skills campus in Blackpool to the ferry infrastructure in Shetland.

Amendment 50 in the name of the noble Baroness, Lady Taylor of Stevenage, would require government to explain how allocations from the levelling-up fund support the levelling-up missions. I will not speak about Amendment 56 in the name of the noble Lord, Lord Berkeley, as he is not here; we will wait for that to come later. Amendment 57 in the names of the noble Baronesses, Lady Valentine and Lady Hayman of Ullock, and the noble Lord, Lord Stunell, would require government to follow set distribution criteria when allocating levelling-up funding and publish a statement explaining how funding allocations meet these criteria.

--- Later in debate ---

[Baroness Valentine (CB)]

Can I clarify my involvement with the various areas I have been talking about? I work some of the time with Business in the Community to persuade businesses to get involved in levelling up in all sorts of places across the country, including Blackpool, Bradford, Rochdale, Sheffield and many other places.

[Baroness Scott of Bybrook (Con)]

I thank the noble Baroness for that and for the work she is doing in encouraging the private sector to get involved.

[Baroness Pinnock (LD)]

We have had a bit of a discussion about priority areas 1, 2 and 3. I would be grateful if the Minister could write and let us know what criteria the Government use to categorise areas and how, between the first and second round, some moved into category 1. I do not know whether any moved down. It would be useful to have that information.

[Baroness Scott of Bybrook (Con)]

I will be very happy to provide that information.

[Baroness Taylor of Stevenage (Lab)]

I thank noble Lords for the debate on the levelling-up fund. It is a key issue to discuss as we go into the Bill because, clearly, none of the levelling-up project will happen without proper funding, and most of us in local government certainly feel that the levelling-up fund has not been the way to do it.

I want to start with the issue of categories 1, 2 and 3. Those categories deterred some authorities from applying because people felt that, if they were in a higher-banded category, they would not have any chance of getting any funding. It was very disappointing when they did not bid because they thought they were not going to get any and then found that others in the same category, and some in higher categories, were allocated funding. So I support the request from the noble Baroness, Lady Pinnock, for some explanation of how that banding works.

My second point is about how the Treasury is feeling about round 3. I am not clear on what the Treasury has done in terms of the levelling-up fund: whether it has stopped round 3 for the time being, whether it has delayed it or what it is doing with it. It would be interesting to know how that is going to happen going forward.

The Minister mentioned match funding, and I am sure that she is as aware as I am that the various places that it used to come from are scarce and in very short supply these days. So match funding can also deter people from bidding for things. I know that it is not compulsory to have it, but, if you think you will not achieve your bid without it, it may deter people from bidding in the first place. It seems almost certain that the areas that need match funding the most are the least likely to have access to it, so it goes against the principles of levelling up.

I was pleased to hear the Minister talk about the recognition of the need to address the complexities in the funding landscape, which is vital. Moving forward, as the delivery of the missions gets more complex, we absolutely need to be clear about a straightforward mechanism for funding.

I was pleased to hear the speech of the noble Baroness, Lady Valentine, which was helpful. I am grateful for the work that Business in the Community does across the country in helping to move the levelling-up agenda forward. I was impressed and pleased that she mentioned the issue around capital funding and having revenue funding to support it. Too often, funding pots are allocated and things are built and delivered—because that is what ticks the box for the department concerned—but the ongoing revenue for that project is not considered and ends up being a local burden that can, in some instances, result in the original project never being delivered properly, because there is not the revenue to deliver it. So I hope that future funding pots will take that into consideration.

I was shocked about the Blackpool project being funded but then going into a period in which it is not. You cannot stand these projects up and down at very short notice: they take a lot of planning, and the disappointment for young people engaged in something when the tap is turned off and that project stops is almost worse than doing nothing at all, because it adds to their feelings of having things taken away from them.

On the short timescales and short delivery times, if levelling up is going to work properly, it must work with a great spirit of co-operation and collaboration between those tasked with delivering it—there may be more than one public agency doing that. Having these very short bidding times and delivery times in some instances is not at all helpful, and I hope that that can be taken into consideration.

We heard information about the town deals and the towns fund. I have been quite close to one of them, and, although there is an equal lack of transparency in allocation, there was very serious scrutiny of what the outcomes would be before the bidding and allocation. That is something that we should look to for the future.

I was pleased to hear the remarks of the noble Lord, Lord Stunell, about the serious lack of credibility in the scheme. I talk to my colleagues in local government all the time, and there is no doubt in my mind that there has been a great loss of credibility in the scheme. The Minister referred to a feedback process; it may be that that has got going fairly recently, because the second-round funding has only recently been announced. But those who were involved at the time certainly felt that they had not had an adequate opportunity to receive any feedback. Of course, they want to learn because, if there will be multiple rounds of this, people want to know what they did wrong and, equally, the ones who got it right want to know what they did right.

The noble Baroness, Lady Pinnock, referred to the reason we have been pressing so hard on these definitions of geography, missions and metrics, and how they will be used: because of how they will be used to determine funding. Even if funding for levelling up were to be considered for a completely different model—such as one much more like the sort of model I would like to see, which is local government being given the funding and being allowed to get on with it—surely we must have a method which determines how funding follows need, rather than just whoever puts in the shiniest bid at the time.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 13th March 2023 Lords Chamber

Finally, I agree with the noble Lord, Lord Carrington, on the issues he raised. One of the challenges of combined authorities, which I see happening even in my own combined authority in West Yorkshire, which everybody will think is a big urban area but is not—it has substantial rural areas—is that the rural areas and issues are largely ignored, because of the challenges of economic development, housing and transport in big urban areas. A proposal or suggestion—in this case, an amendment—to enable specialist sub-committees of a CCA to focus on rural issues is very positive, and I certainly support it. With those comments, I look forward to the Minister’s response.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, the amendments in this group relate to scrutiny of combined county authorities. I think that we all agree that effective scrutiny of a combined county authority, as with any other local authority, is a key aspect in providing the strong accountability that we all wish to see. The noble Baroness, Lady Pinnock, is absolutely right: it is about not just scrutiny after the event but overview before the event as well, as any good local authority would be doing at the time. I also say this to her: the Bill makes provision for payments of allowances to local authority members who sit on overview and scrutiny, and audit, committees.

Noble Lords will be aware that Schedule 1 provides the underpinning processes for holding a combined county authority to account. Through Amendment 77 the noble Lord, Lord Shipley, wishes to put provisions in the Bill requiring a combined county authority to publish a report of an overview and scrutiny committee if that committee believes that publication of that report is in the public interest.

I reassure the noble Lord that Part VA of the Local Government Act 1972 provides powers to require the publication of reports of a committee or sub-committee of a principal council, including overview and scrutiny committees. Schedule 4 to the Bill amends Part VA of the Local Government Act 1972 to apply these provisions to combined county authorities. I hope that this provides sufficient reassurance to the noble Lord that further amendments in this area are not necessary.

Amendment 78 was tabled by the noble Baroness, Lady Taylor of Stevenage. We absolutely agree on the importance of overview and audit, as I have said. We recognise that it could be appropriate for representatives from district councils within a combined county authority’s area to be members of a CCA’s overview and scrutiny committee. However, our approach is that this issue of representation is best decided locally. The Bill provides for combined county authorities to invite representatives of district councils, along with other appropriate persons, to be members of their overview and scrutiny committees. The powers are already available to achieve what she seeks.

I recognise that the noble Baroness is perhaps seeking to place a requirement on combined county authorities to ensure that chairs of overview and scrutiny committees of district councils in the CCA areas have to be members of the CCA overview and scrutiny committees. As we have said many times, we prefer a localist approach of enabling those in the area the ability to form their scrutiny committees, rather than dictating this from central government.

Amendment 79 tabled by the noble Lord, Lord Shipley, seeks to prevent a combined county authority restricting the work of an overview and scrutiny committee without good reason. The provisions in this schedule mirror exactly for the combined county authorities the overview and scrutiny arrangements in place for combined authorities. It is important to ensure consistency in approach to robust accountability across all those authorities that have functions and funding conferred to them from the Government.

As with combined authorities and local authorities, combined county authorities are public bodies required by public law to act reasonably in making decisions. It is only right that each combined county authority should be able to decide its own overview and scrutiny committee operational arrangements which best match its local circumstances. This is what this provision in the schedule does.

These operational arrangements will be set out in a combined county authority’s local constitution, to which it and all its members are bound. As such, there is no requirement for this amendment. A CCA cannot withhold an overview and scrutiny committee’s powers. Without such proposals in place that have been consented to by all parties, overview and scrutiny committees will not be able to undertake their role effectively.

Amendment 80 was tabled by the noble Lord, Lord Carrington, who I thank for being the voice of rural committees, which are extremely important. This amendment seeks to give combined county authorities’ overview and scrutiny committees the ability to establish a rural sub-committee. I see that is very important for many county authorities, and I can confirm that the existing provisions enable a combined county authority’s overview and scrutiny committee to do this, should it wish. Paragraph 2(1) of Schedule 1 allows a CCA’s overview and scrutiny committee to appoint one or more sub-committees, and they could, of course, be rural sub-committees.

Amendments 82 and 83, tabled by the noble Lord, Lord Shipley, are about the chairs of overview and scrutiny committees and sub-committees. Schedule 1 sets out that a chair of a combined county authority’s overview and scrutiny committee has to be of a different political party than the mayor in the case of a mayoral CCA and of a different political party to the majority of members in the case of a non-mayoral CCA or an independent person. These amendments seek to provide an additional criterion that the chair cannot have been a member of the same political party as either the mayor or majority of members for a non-mayoral combined county authority for a period of five years prior to appointment.

While we agree with the noble Lord that overview and scrutiny committees are an important part of the accountability process, we believe this amendment to be an unnecessary extra hurdle. Potential chairs’ credentials should be treated on the basis of their current political membership, or lack of it in the case of an independent chair. This is a consistent approach throughout local government. There are no requirements to look back over previously political membership, and we do not think there should be one in these new arrangements.

Amendment 84, tabled by the noble Lord, Lord Shipley, looks to increase the minimum number of independent members of a combined county authority’s audit committee to three. The Government believe that devolution should be locally led, as I have said many times, and recognise that greater functions and funding must come with strong accountability. The Government’s policy approach is to allow each combined county authority the flexibility to decide its own operational arrangements for its audit committee to best match the arrangements to local circumstances. Currently, this allows CCAs to decide how many independent persons should be appointed to an audit committee, providing that there is at least one independent member.

The noble Lord, Lord Shipley, and the noble Baroness, Lady Taylor, brought up the issue of who will be the members of audit committees. The regulations that will establish combined county authorities will set out audit committee arrangements. They will provide that, where practical, the membership of an audit committee reflects the political balance of the constituent councils of the combined county authority. Membership may not include any officer from the combined county authority or the combined county authority’s constituent councils. We await that further information on membership. The amendment that the noble Lord seeks to introduce would take away some of this flexibility, which might not best fit the local circumstances of the combined county authority.

Finally in this group, the noble Baroness, Lady Taylor of Stevenage, tabled Amendment 85, which would place a duty on the Secretary of State to facilitate the sharing of best practice between overview and scrutiny and audit committees of combined county authorities. We recognise that sharing best practice makes an important contribution to the delivery of effective scrutiny functions across the local government sector as a whole. However, we believe that this works best where best practice sharing is locally led rather being a diktat from above.

When they are established, combined county authorities will become part of a broader local government framework and will receive support in developing and improving scrutiny functions. The existing combined authorities are already working together to share best practice between their organisations, including considering effective scrutiny. This includes via the M10 network, which is led by the combined authorities but which government engages with regularly.

Combined authorities are also supported in their work on scrutiny by the Centre for Governance and Scrutiny, which looks at specific challenges across all local government, including combined authorities, and works with them to enhance the effectiveness of their scrutiny. Once established, combined county authorities will also be able to operate and share best practice in a similar way to those authorities already in place. I hope the noble Baroness agrees that—

[Baroness Taylor of Stevenage (Lab)]

I hope the Minister will excuse me. I find that response about the sharing of best practice a little confusing. What we were trying to understand was how the work across the CCA picture nationally would be shared. I am not clear how that will work across the piece—across the country. There will, clearly, be the development of good practice in audit and scrutiny. Is it intended that that will sit within a framework such as, for example, the Local Government Association? Where will it sit, and how will those authorities be able to share what they are doing properly and effectively?

[Baroness Scott of Bybrook (Con)]

For a start, they will still be members of the Local Government Association, I assume, as will their members; so there is that route. As we have said, the combined authorities already in existence are already joining together themselves and sharing good practice. I would imagine that the CCAs and further combined authorities will also be doing that sort of sharing of best practice. The department will obviously keep a close eye on a new structure, work with those local authorities and be able to share any good practice from that as well. As usually happens with change, everybody wants to get together to see how it is going. I can give your Lordships an example of when I took a local authority to a unitary authority, and other authorities were going to unitary authorities at the same time. We all joined together and shared best practice. It did not have to be imposed on us; we did it as a matter of course. I think local government is good at doing that and will continue to do so into these new ways of working.

I hope the noble Baroness will agree that, as the work currently undertaken elsewhere should be locally led, there is no need to place a duty on the Secretary of State to facilitate the sharing of best practice between combined county authorities.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments covers a number of matters relating to combined county authorities, combined authorities and local authorities, including NHS functions, the conferral of additional functions on combined authority mayors, the fair funding review, trade union liaison and bus services.

I start with Amendments 89 and 90, tabled by the noble Lord, Lord Hunt of Kings Heath. Together, they would require the Secretary of State to publish reports on proposals for the devolution of health functions to authorities and subsequent reports at 24-month intervals. I hope I can reassure the noble Lord and other noble Lords that the existing provisions for reporting on the conferral of health functions on to a local authority, combined authority or combined county authority are sufficient. The regulations that would confer health functions on to a local area would be accompanied by an Explanatory Memorandum setting out why the functions are to be conferred. The regulations also require parliamentary approval, giving Parliament the opportunity to consider the impact of such a conferral of functions. Also, under Section 1 of the Cities and Local Government Devolution Act, the Secretary of State has to publish an annual report about devolution, including listing any functions—including health functions—devolved to areas in the preceding 12 months.

The noble Lord’s explanatory statements say that these amendments are intended to probe our

“commitment to transferring NHS responsibilities to local government”.

To clarify, our devolution legislation is enabling legislation. Where an area is interested in the conferral of health functions on to a combined authority, local authority or combined county authority, it is possible to do this via secondary legislation. To date, the only area that has taken up this opportunity is the Greater Manchester combined authority, as we have debated; however, in principle, other devolution bids can include these same requests.

Section 18 of the Cities and Local Government Devolution Act 2016 sets out which health functions can and cannot be devolved. As noble Lords have mentioned, the kinds of functions that can be devolved include the joint local commissioning of health services. In contrast, the kinds of functions that cannot be devolved include, as noble Lords might expect, health service regulatory functions vested in national regulatory bodies responsible for such functions. Let me be clear: the devolution of health functions does not alter the Secretary of State’s core duties in relation to the NHS. As this Government have consistently made clear, they are and remain a priority for us.

Amendment 91, tabled by the noble Baroness, Lady Hayman of Ullock, would require the Government to co-operate with trade unions representing employees of combined county authorities that have responsibilities for transport. I support the noble Baroness’s sentiment here that it is important that we engage with trade unions representing transport employees of CCAs. It will, however, be the combined county authority itself as the employer that will be involved in recognising and collectively bargaining with any trade union representing staff at that workplace.

The Secretary of State will not be party to that relationship. Therefore, placing an additional requirement on the Secretary of State to co-operate with a trade union representing those staff risks undermining the relationship between the combined county authority, as the employer, and the trade union. I do not think that this would be appropriate; it is for local agreement. More generally, the Secretary of State consults with a large number of groups, including trade unions, on issues that affect local transport in combined county authority areas.

I shall move on to the Clause 58 stand part debate. Turning to the issues raised by the noble Lords, Lord Hunt of Kings Heath, Lord Shipley and Lord Bach, and other noble Lords, including the noble Baroness, Lady Hayman of Ullock, Clause 58 introduces a new process enabling mayors of combined authorities to take on new public authority functions via a request to the Secretary of State to deepen devolution, in order to remove barriers and give our local leaders more powers to drive the economic, social and environmental improvements locally that their residents, businesses and areas need. It is, however, deliberately limited in scope.

The provision relates only to the transfer of other public authority functions; namely, those currently carried out and funded by organisations other than local authorities such as government departments or their agencies. It makes no change to the consent regime for the transfer of local authority functions, as set out in the Cities and Local Government Devolution Act 2016, because we fully recognise that local agreement is key to successfully transferring such functions either to be delivered across a wider geographical area by a combined authority or, in some circumstances, to be exercised by the mayor individually.

We have also included an additional safeguard on the use of this provision to make sure that the voice of local authorities is still heard. In making any request for new functions to the Secretary of State, mayors will need to set out the views of their constituent councils and then provide a rationale for proceeding, if any of them disagree. More broadly, this clause also retains the long-established principle that we have had for all combined authority legislation that deepens devolution through new powers; that is, that it must be subject to what has often been referred to as to the triple-lock of consents. It must be consented to locally—in this case, by the mayor with the input from the constituent councils—agreed by the Secretary of State and approved by Parliament. I hope my explanation provides noble Lords with further information such that they could reconsider their opposition to this clause.

On Clause 59, raised by the noble Lords, Lord Bach, Lord Hunt of Kings Heath and Lord Shipley, and many others, the levelling up White Paper, which was consulted on widely, included reference to mayors of combined authorities taking on police and crime commissioner functions where policing boundaries were coterminous with those of the combined authority. It also committed the Government to taking steps to remove the barriers to more combined authority mayors taking on PCC functions. Clause 59 amends the existing provision by removing the requirements of consent from the combined authority and its constituent councils to the transfer of the PCC functions to be exercised by the mayor. This will enable the Secretary of State to make an order providing for a combined authority mayor to take on PCC functions for the combined authority’s area, subject to mayoral consent only.

PCC functions can be exercised only by the mayor. Combined authorities and their constituent councils have no role in the exercise of PCC functions. Therefore, the clause makes it clear that only mayoral consent is required for a transfer. These changes are designed to enable more mayors to take on PCC functions where this has been agreed; for example, within a devolution deal, in line with our White Paper commitment. The transfer of PCC functions to a combined authority mayor would not only preserve the democratic accountability established by the PCC model but can also offer wider levers to prevent crime. Powerful local mayors—

[Lord Bach (Lab)]

I am sorry to interrupt the Minister. I thank her for what she has said so far, but I want to ask her why there is no need for consultation of any kind under Clause 59. She praised the consultation that was necessary under Clause 58 and made it part of her argument. Why is there none in Clause 59?

[Baroness Scott of Bybrook (Con)]

My Lords, that is because, as I said, the role of the PCC does not impinge on the roles of the constituency councils. It is purely a role for the mayor. When you are looking at things to do with health, you are probably including the care roles of many councils.

[Lord Bach (Lab)]

Each district council has to have a community safety committee, which is made up of district councillors, others and the local police—it is very much involved in policing. As has been said earlier, and used as an argument by the Government, every police and crime panel must have someone from each district council in the police force area. There is a clear link between the constituent councils. Given that link is so important, how can the Minister really argue that on Clause 58 consultation is necessary but on Clause 59 it has nothing to do with the districts or the county?

[Baroness Scott of Bybrook (Con)]

I did not say it has nothing to do with the districts or the county—

[Baroness Pinnock (LD)]

I apologise to the Minister. I just thought I would add to the questions now and not interrupt further.

Is this an admission by the Government that the current system of independently elected police and crime commissioners has not been effective? I cannot think of any other reason why the two separate roles should be combined unless it is felt that the separate role of the police and crime commissioner has not been as effective as the Government wished.

[Baroness Randerson (LD)]

In the interests of making life easier for the noble Baroness, perhaps I could add my question. What assessment have the Government done of the crossover of funding between local authorities and police services for community safety work and partnerships? That is a frequent model. When the noble Baroness says that the police and crime commissioner role has no impact on local authorities, surely, that funding flow is relevant.

[Baroness Scott of Bybrook (Con)]

I did not say that the councils do not have any concerns or interest in the role of the PCC. Of course, they do, as we have heard, with community safety committees et cetera. What I said was that the councils do not deliver any of the services required by the PCC. That is the job of the local police. Therefore, there is no crossover in that way.

[Baroness Taylor of Stevenage (Lab)]

I do not know where that information has come from about councils not delivering community safety-related services. It is just not the case. We look at anti-social behaviour; we look at domestic abuse. In my own local authority, we have a very big and effective domestic abuse service, and we work with our colleagues in the police. We have issues related to local area policing. We set our priorities with our local policing teams and deliver services jointly to address those priorities. I could go on—I know the noble Baroness will know some of this from her own experience in local government. It is just not the case that local government does not deliver community safety services in the same way that we deliver health prevention services and so on.

[Baroness Scott of Bybrook (Con)]

I think we are going to disagree on this, and there is a fine line. I also want to answer the questions from the noble Lord, Lord Bach, that I did not answer at Second Reading, for which I apologise—I am conscious of that—but because the amount of information I have is not sufficient to answer them today, I will write to him and talk to Home Office colleagues as well, because I think it is important we get their views. I will also write more about the responsibilities of the PCC and the local authorities, because it is important that we get this right and that noble Lords understand the reasons why we are doing this.

--- Later in debate ---

[Baroness Pinnock (LD)]

I am struggling with this logic. The combined authority mayor can appoint a deputy to be responsible for police and crime, but the elected mayor will take the accountability if things go wrong. Why, then, can we not have an elected police and crime commissioner? That is the logic of what the Minister is saying.

[Baroness Scott of Bybrook (Con)]

That is not the logic. It is an opportunity for the directly elected mayor to be able to join up all these issues within their geographic area and deliver more joined-up services by working with others.

[Lord Scriven (LD)]

Do the Government therefore suggest that, at a local level, a council leader could appoint their own cabinet rather than taking from elected councillors? That is the logic of what the Minister is saying.

[Baroness Scott of Bybrook (Con)]

That is not the logic. It takes the whole issue too far. Cabinet members will come from the elected members. That is required in the legislation.

[Baroness Hayman of Ullock (Lab)]

The one thing that this has not answered is the issue of the politics, looking at the West Midlands. Does the Minister not think that, if a mayor can appoint a deputy mayor to take over the PCC functions and the existing PCC is then not there, that deputy should be of the same political persuasion as the elected PCC? The people voted for someone from that party, that part of the spectrum. Should it not be specified if that is the direction that the Government are going in?

[Baroness Scott of Bybrook (Con)]

No, I do not think so. I will make it very clear: these amendments are nothing to do with the West Midlands. These amendments were in the White Paper a number of years ago and were fully consulted on. I will take the noble Baroness’s point, but that is not what normally happens. You would normally have one of your team as a deputy mayor responsible for one thing or another, as you do in London. In this case, it could be for police and crime. I do not know what West Yorkshire will do.

I would also add that Parliament’s approval is needed for a combined authority to take on any new function. PCC functions can be conferred on a combined authority mayor by secondary legislation only, which needs parliamentary approval before it can be made.

Finally in this group is Amendment 469, tabled by the noble Baronesses, Lady Pinnock and Lady Randerson. This would confer new powers on local authorities to run their own bus services, which we believe is premature. The national bus strategy states that the Government would review whether it remains right that local authorities cannot set up new bus companies. Any consideration of change to the operation of the local bus market needs to be conducted in an orderly manner, with all views and potential impacts, positive and negative, considered. We therefore intend to wait until the review of the bus strategy comes out.

[Baroness Pinnock (LD)]

Following the Minister’s earlier remarks about the mayor being able to appoint a deputy to be responsible for policing, I was wondering: are there powers for them to appoint a deputy to be responsible for buses?

[Baroness Scott of Bybrook (Con)]

I do not know about buses, but I imagine that there may be the ability for a mayor to appoint somebody to be responsible for transport in a large area. I will check that, but I am sure that it is within their powers. It is probably a very good thing to have in large geographical area, as the mayor cannot do everything in detail there. I hope that that satisfies noble Lords.

[Baroness Taylor of Stevenage (Lab)]

I have a question on the issue of buses. We have seen millions of bus miles removed from the system altogether. The noble Baroness, Lady Randerson, has very carefully and thoroughly articulated why they are so essential. It is really important that we get this bus strategy as quickly as possible so that we can start to get a sense of how local authorities can play a part in restoring some of the bus services that we have lost. Can the Minister give us any idea of how quickly that will come about? It would seem that the Bill is an ideal opportunity to put that into place. Otherwise, we will have to go through the same discussions again in a few months, a year or two years’ time to give local authorities that power. Why not use the Bill as the ideal opportunity to reinstate what we used to have back in the day? I remember a very good bus service in my own area before the powers were taken away from councils.

[Baroness Scott of Bybrook (Con)]

This is the responsibility of the Department for Transport. I will be in touch with the relevant Minister to explain the Committee’s deep concern about the issue of bus services and say that an early solution to this would be considered appropriate by the Committee. I will also find out how long it will be before we get this strategy in place. I will write that at the end of the letter, which will go to all noble Lords in Committee. I hope that noble Lords will withdraw their amendments.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this has been an interesting debate. The Minister made an interesting comment at the end when she said that basically a lot of the services we are talking about are the responsibility of other government departments. That seems to me to go to the heart of one of the problems of this legislation: is it not about devolution at all. If it were really about devolution, the Government would have a concerted approach to widespread devolution, which of course would involve bus services. It is a ludicrous proposition that under this grand new devolution and regeneration system you cannot run your own buses.

On health, what the Minister said was helpful up to a point in that she said there is no legal impediment to what is happening in Greater Manchester being extended, but I do not see any drive whatever. What I see is her own department taking a depressingly narrow view of what local government should do instead of embracing the whole government machinery to say, “We are serious about this.”

The clarification on Clause 58 was very helpful, and I am very grateful to the Minister. On Clause 59, I am pretty speechless. I spoke for the Opposition when the concept of police commissioners was coming through. We opposed it. Frankly, I still have great reservations about the system. My noble friend was an excellent example but, my goodness me, the evidence of poor behaviour by some police and crime commissioners is legion. None the less, we were promised directly elected police commissioners, that the public would decide who was going to be the police commissioner and there would then be accountability through the ballot box, but it seems that this is not to apply now in a number of places. From what the Minister said, it seems that the principle of coterminosity applies to many parts of the country in terms of future mayors and police commissioner areas.

I shall make two points. You cannot exclude local authorities. They form the police and crime panel. They have a direct interest in the precept which is set and have to consult on it. It is a big move to get rid of the police and crime commissioner and simply give it to the mayor—we know the mayor will appoint a deputy and will not really be accountable because the mayor has got other things to do—without consulting the constituent local authorities which play an important role in this whole area, not just in sitting on the police and crime panel. If we are serious about wanting our criminal justice system to be more effective, the local authority has a pivotal role to play in working with the police at local level.

I urge my noble friend on the Front Bench to bring this back on Report because I believe we should take out this clause. Having said that, I beg leave to withdraw the amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 13th March 2023 Lords Chamber

[Baroness Pinnock (LD)]

I thank my noble friend Lord Shipley and the noble Baroness, Lady Taylor of Stevenage, for raising issues in detail regarding mayoral names—or not—and some aspects of elections and powers, because that points to the fact that although we have a very long Bill with a huge number of clauses, a lot of the detail is insufficient for us to understand completely what the Government seek to do and how they hope these new CCAs and mayors—or not mayors—will operate.

An important issue is in Amendment 103, about what happens if the current mayor stands down for whatever reason. That would be worth knowing for all of us who live in combined authorities.

The second important thing is about the scrutiny of deputy mayor appointments. One would hope that a panel of members who are not of the same party as the mayor would interview and scrutinise the appointment of the person, who will have significant powers conferred on them simply because they are a mate of the mayor; that never seems appropriate. There are a number of other probing amendments in this group, including that of my noble friend about “governors”. It will be interesting to hear what the Minister has to say, but it points to the fact that the Bill has not been as well thought through as it might have been.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, this group of amendments relates to some detailed mayoral matters including by-elections, the scrutiny of mayoral appointments, police and crime commissioner functions, deputy mayoral roles and alternative titles for the mayor. I thank noble Lords who have taken part in this short debate.

Turning to Amendment 103 tabled by the noble Baroness, Lady Taylor of Stevenage, I assure her that there are provisions which will enable a by-election if the position of the mayor of a combined authority becomes vacant. Paragraph 3(d) of Schedule 2 provides that the Secretary of State may by regulations make provision about the filling of vacancies in the office of the mayor of a combined county authority. This would include provision for a by-election where that is the appropriate mechanism for filling the vacancy.

--- Later in debate ---

[Baroness Pinnock (LD)]

If I heard right, the answer to the question of what would happen if the mayoral position were vacant was that the Secretary of State would, by regulation, have the power to decide whether it would be filled by an election or not. What would the “or not” mean? Did I misunderstand that point?

[Baroness Scott of Bybrook (Con)]

No, the noble Baroness did not misunderstand. It is important that we wait for those regulations to come out. There could be a point where the mayor stood down a month before an election; there may be a period of time when there has to be a decision, as you would not have two elections close together. The regulations are what is important here. We will wait to see further detail that is being worked up, but I assure her that it is expected that there would be a by-election.

[Lord Stunell (LD)]

The Minister has mentioned that we should wait for the regulations. It might be helpful in this instance and several others if it were possible to bring forward some draft regulations to help us understand the direction of thought that the Government are taking. We are all well aware that, by the time regulations are laid before the two Houses, the opportunity for parliamentarians to make informed and useful comments will be very limited. A quick look at the Government’s direction of travel on this and, I may say, many other matters, in the way of draft or outline regulations would be helpful.

[Baroness Scott of Bybrook (Con)]

That is understood. I will take that back and do what I can; I will see what we have already.

On Amendment 115 tabled by the noble Baroness, Lady Taylor of Stevenage, I agree with her that the decisions of a mayor of a combined county authority should be—as I said earlier—subject to effective scrutiny, as should those of any leader of any council. Devolution should combine strong, empowered local leaders with strong accountability, but also transparency. The Government will publish a new devolution accountability framework to ensure that all devolution deals lead to local leaders and institutions that are transparent and accountable.

Schedule 1 provides that a combined county authority will be required to have at least one overview and scrutiny committee, as we discussed earlier, which can review and scrutinise decisions made or actions taken by the combined county authority and the mayor. The schedule provides that the Secretary of State may make regulations about the overview and scrutiny committee, including membership, voting rights, payment of allowances, chair, appointments of scrutiny officers, circumstances in which matters may be referred to the committee, and the obligations on persons to attend and respond to reports that the committee issues. This will ensure a robust framework within which overview and scrutiny committees will operate.

We think that this gives sufficient scope for local scrutiny on decisions taken by the CCA or mayor, such as the appointment of a deputy mayor by the mayor from among the combined county authority’s membership, if that is considered appropriate. I make it clear that the statutory deputy mayor will have to come from the members of the CCA—from those local authorities. It is not the same as a deputy mayor for police and crime, who could come from somewhere else, because they would possibly be required to have different experience and background. I hope that makes sense. It is quite important that we have those two deputies separated.

On Amendment 116, tabled by the noble Baroness, Lady Hayman of Ullock, we agree that information on funding should be available, and I can reassure the noble Baroness that that will be the case. Information on the funding available to a combined county authority and mayor will be in the public domain. The deal agreed between the Government and the area sets out both the funding arrangements and the powers to be conferred on the combined county authority and the mayor. The deal document is published and therefore publicly available. There must also be a public consultation locally on the area’s proposal to establish a combined county authority. We expect this to set out how the CCA will work and include the powers to be conferred on the CCA and the mayor and the funding available. The final proposal, which must be accompanied by a summary of the consultation, will constitute the formal submission to the Secretary of State seeking the establishment of the CCA.

In Amendment 117, the noble Baroness, Lady Hayman, probes whether there should be an annual summit of the CCA mayors. The existing combined authority mayors have themselves established the M10 group to enable them to work together. The Government engage with this group on a regular basis. We expect the M10 and the new combined county authority mayors to consider how best to work together. We think a locally led arrangement is better than a centrally imposed approach, and I expect it will evolve as more areas agree devolution deals.

In tabling Amendment 118 to Schedule 3, the noble Baroness, Lady Taylor of Stevenage, is seeking to prevent a combined county authority taking on part of the police and crime commissioner role. Schedule 3 provides further detail, setting out the matters on which the Secretary of State either may or must make regulations to enable a transfer of police and crime commissioner functions to a combined county authority mayor. It provides the framework and arrangements for the mayor to exercise these PCC functions on a day-to-day basis.

The amendment would limit the ability of the Secretary of State to determine an appropriate limited scope to the conferral of PCC functions to combined county authority mayors. Combined county authority and combined authority mayors should have parity where possible to ensure that all areas of England have the same options. The schedule achieves this consistency by mirroring the scope of regulations that govern the conferral and exercise of police and crime commissioner functions by combined authority mayors, as set out in Schedule 5C to the Local Democracy, Economic Development and Construction Act 2009. The amendment would create an inconsistency between the schedule governing the making of regulations related to combined county authority mayors’ exercise of PCC functions compared with its equivalent for combined authority mayors, leading to unnecessary inconsistency in the legislative framework for the PCC model.

[Baroness Taylor of Stevenage (Lab)]

I am still a bit confused about this. The Bill says that some mayors taking on police and crime commissioner powers can take certain powers to themselves and others can take others, so you end up with a picture around the country where they have different powers in different places. That was my concern, not that there would be an inconsistency between police and crime commissioners and mayors. What I wanted to understand with the amendment was whether, if the powers of the police and crime commissioner are transferred to the mayor, they will all be transferred. We do not want a different picture around the country depending on which powers of the police and crime commissioner have been moved over.

[Baroness Scott of Bybrook (Con)]

All the powers will go. There will not be half a PCC left. Does that make sense?

Amendment 119, tabled by the noble Baroness, Lady Taylor of Stevenage, seeks to allow the person appointed as statutory deputy mayor of the combined county authority to also be appointed as the deputy mayor for policing and crime. Schedule 3 prevents this because the deputy mayor and deputy mayor for policing and crime are two distinct, separate, and weighty roles. The role of the statutory deputy mayor is to step in and act as mayor should the mayor be unable to act or if the office of mayor is vacant for a time, as well as assisting across a whole range of general mayoral functions where applicable.

The deputy mayor of a combined authority is typically also a council leader, and we anticipate this will likely also be the case in combined county authorities. This would mean that this person is already accountable for the decisions and activities of the council they lead, in addition to their combined county authority responsibilities, where they will be accountable collectively, and possibly personally, for some of the CCA decisions, including personally for the mayor’s functions if the mayor cannot act. The role of the deputy mayor for policing and crime is to dedicate constant focus and attention to crime and policing and is usually a full-time role. Clearly, both the roles of deputy mayor and deputy mayor for policing and crime are significant and we believe that they should remain separate and distinct.

Amendment 124, tabled by the noble Lord, Lord Shipley, seeks to allow CCA mayors to be called by their choice of alternative title. Clauses 40 and 41 already enable mayoral combined county authorities to resolve or choose to use an alternative title to “mayor” for their directly elected mayor. They can choose from a shortlist of titles listed in the Bill, or a different title not on the list, having regard to other titles used in the area. I understand where the noble Lord is coming from regarding the fact that the title “mayor” is beginning to take on some level of credence within the country, but if you come from a particularly rural county area—I counted last night that where I was leader of a council, we already had 16 mayors—an elected mayor would be confusing for some people. The role of a mayor in some rural areas is seen as a civic role, rather than a leadership role, which is very different.

[Lord Shipley (LD)]

I say to the Minister that the problem applies in urban areas too; it is not specifically a rural issue. If you look at Merseyside and Liverpool, you will see a mayor, a ceremonial mayor and a combined authority mayor—you have three already. The public work with that, but what I am challenging is whether people being able to choose their own title for their area will not be more confusing, because if you use the word “governor” or a variation on that theme, the question then arises: “What are those powers?”. People at least have some idea what a combined authority mayor is actually about.

[Baroness Scott of Bybrook (Con)]

These decisions, as with many, have to be taken locally because local people will understand better than anybody what is right for their area. I have given the Committee my personal views from when we were considering mayors—I just thought it would be confusing.

[Lord Stunell (LD)]

I approached it from the opposite direction: if indeed it should be a matter for local people to decide because they are best equipped to understand what terminology might be appropriate, why does the Minister feel that it is sensible or suitable to have a defined list from which they must choose, rather than doing exactly as she said by exercising their discretion in relation to their own area and locality?

[Baroness Scott of Bybrook (Con)]

It is not a defined list, as I said. There is a list which I assume probably came from consultation on the White Paper, and things that people have already said they might like to use. They can choose from that shortlist, but they can also have a different title that is not on the list. The choice is theirs.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

I thank the Minister for her detailed responses and the other noble Lords who have taken part in the debate. The noble Baroness, Lady Pinnock, mentioned that the detail in the Bill is insufficient on how CCAs operate. That goes to the heart of a lot of these amendments. We have tabled a lot of probing amendments to try to find out some of the detail about how all this is going to work.

In relation to Amendment 103 and the appointment of deputy mayors, in local government we have an appointments committee, as the Minister will know, which oversees the appointment to local authorities of any senior post. When we tabled the amendment, we had not understood that it was going to be essential that the deputy mayor would be one of the councillor members of the CCA. I hope that we have been able to clarify that through the submission of this amendment.

Matters of governance and constitution are essential. I would normally say I understand that we have to wait for regulations, statutory instruments and so on, but as this will be such a major change for our areas, it is important that both the local authorities and the members who will enact this legislation—and the members of the public who are going to live in the new CCA areas—understand in great detail how it is going to work before we go into the new system. The noble Lord, Lord Stunell, made a comment about having some draft regulations in front of us before we get to the end of the Bill. That would be incredibly helpful.

On provisions for by-elections, I understand the Minister’s comments about that being in the schedule. However, it sounds as if it will be a little in the hands of the Secretary of State as to whether to call for an election. That gives me a bit of concern because if a local councillor resigns midterm, you have to hold a by-election if the members of the electorate call for it. Unless it is very close to an upcoming local election, you have to do that between elections. I do not see any problem with having something further in the Bill so that we could understand how that works. It would be the same process, in effect, as for a local councillor.

On Amendment 115, I understand the responses. But would the accountability include the PCC or the mayor as PCC? The Minister mentioned a whole raft of accountabilities that the mayor comes under. Would it include the PCC and the mayoral role as PCC? I would like to understand that a little better. Is the whole policing element of the mayor’s role going to be undertaken a bit under the radar, as it is now, by a local policing committee?

On Amendment 116, the noble Baroness said that the deal agreed sets out the funding arrangements and that it is a public document. It was helpful to have that clarified. Her response to Amendment 117 was that there is an existing body, the M10 group of CCA mayors, and it is helpful to know that the Government expect mayors to participate in some kind of forum.

On Amendment 118, the schedule sets out the functions. Thanks to the responses we have had, we now know that they would be the same options, whether it was going to be a police and crime commissioner or the mayor undertaking those duties. I want to just ask one further question: does that mean that the deputy mayor for crime and policing does not have to be a councillor member of the CCA? Could that person be just appointed from outside the CCA? We would take an interest if that was the case.

On the list of titles, we just disagree. The amendment states quite clearly that we think it should just be left to authorities to determine that; there is no need for a list of titles on the face of the Bill. We have been told over and again that we do not need so much detail in the Bill, but in this case we have a whole list on the face of the Bill that we think is entirely unnecessary.

I am grateful for the points about communication because it is really important that, with a new system like this, the public understand exactly what is happening. If there is to be change to the title that should be communicated. “Communicated” is not as effective as I would like it to be. I would like them to be consulted on it, but communication is better than nothing.

That said, I am happy to withdraw my amendment for now. I stress the point that the noble Lord, Lord Stunell, made about having some draft regulations in front of us so that we can understand very clearly exactly what the provisions are. If the noble Baroness could write to us about the issue of the deputy mayor with responsibility for police and crime functions and whether that person is going to be a councillor or not, that would be helpful.

[Baroness Scott of Bybrook (Con)]

I am happy to answer that straight away. That person does not have to be a councillor. The statutory deputy mayor needs to be a councillor and the police and crime one does not.

[Baroness Taylor of Stevenage (Lab)]

With that, I withdraw my amendment.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

104: Schedule 2, page 259, line 16, at end insert—
“(4) Until the coming into force of paragraph 5 of Schedule 8 to the Elections Act 2022 (amendment of paragraph 8(3) of Schedule 5B to the Local Democracy, Economic Development and Construction Act 2009 relating to candidacy rights of EU citizens), sub-paragraph (3) has effect as if for the definition of “qualifying citizen” there were substituted—““qualifying citizen” means a person who is a qualifying Commonwealth citizen or a citizen of the Republic of Ireland or a relevant citizen of the Union, within the meaning given in section 79 of the Local Government Act 1972;”.” Member's explanatory statement
This amendment reflects the fact that the definition of “qualifying citizen” in paragraph 7(3) of Schedule 2 follows the definition of that term in paragraph 8(3) of Schedule 5B to the Local Democracy, Economic Development and Construction Act 2009 as amended by paragraph 5 of Schedule 8 to the Elections Act 2022, which is not yet in force. It therefore ensures that the definition in the Bill tracks that in the 2009 Act while the amendment to the latter by the 2022 Act is not force.

[Baroness Scott of Bybrook (Con)]

My Lords, we have tabled a number of consequential, minor and technical amendments for combined county authorities. The consequential amendments are to existing legislation, to ensure that it applies to combined county authorities where necessary. This will mean that the CCA model can work in practice as a local government institution. It will also mean that CCAs have parity with combined authorities where it is required to make the model a viable alternative to areas with two-tier local government.

The other minor and technical amendments are to amend the Bill to update references to legislation that gained Royal Assent in 2022, including the Elections Act and the Local Government (Disqualification) Act, which will affect the combined county authorities. Though they amend other Acts, these amendments do not extend provisions any further than the remit of the previous clauses. Given their importance to enabling the combined county authority model to work effectively in practice, I hope noble Lords will support these amendments.

[Lord Stunell (LD)]

I will speak very briefly; I will certainly not debate with the Minister all 35 amendments. I am taking on a brief inspection that these are indeed just minor and consequential. I want to use this as the opportunity to say that the Minister has written to us today, advising us of a whole range of further amendments that the Government will table. While most of them flow from the debates we have had so far, one particular amendment relating to the building safety regulator is completely off-piste, as far as I can see. In responding, can the Minister—perhaps being grateful for me not debating all 35 amendments—assure us that sufficient time will be given for us to think through some of the new amendments the Government have tabled today?

[Baroness Taylor of Stevenage (Lab)]

I am sure that the Minister will be pleased to know that I too will not debate all 35 amendments. They are largely consequential and drafting amendments. I noted that, earlier in today’s debate, the noble Earl, Lord Howe, referred to the consultation provisions contained in Amendments 151 and 152, so we will have a closer look at those, and we may write to the Minister, the noble Baroness, Lady Scott of Bybrook, if we have any further concerns on that.

I have one tiny question—forgive me: I know that it is late—on Amendment 143. The proposed new paragraph 7ZB in Schedule A1 to the Planning and Compulsory Purchase Act 2004 states:

“If the Secretary of State … thinks that a constituent 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, and (b) invites the combined county authority to prepare or revise the document, the combined county authority may prepare or revise (as the case may be) the development plan document.”


I do not necessarily need an answer now, but I would be grateful if the Minister could write to me. Is it the Secretary of State or the constituent planning authority who invites the CCA to intervene in the preparation or revision of the document? That was not clear. The amendment also makes provision for the CCA to charge the non-constituent authority for work done on the development plan. Would those charges be agreed between both parties in advance, subject to a fee scale or limited fixed charges? I ask that question because it may be that the financial position of the constituent planning authority was the reason for the delay in the first place. It may be that, either in preparing the plan or if the recruitment of planning staff in the area is difficult, the authority is not in a position to increase salaries and so on, so if there were to be a massive charge to it from the CCA, that might be an issue. I am happy to take a written response to that question in due course.

Other than that, I have no questions or comments on the amendments.

[Baroness Scott of Bybrook (Con)]

I thank the noble Baroness for her offer; I would prefer to give a written answer to that question, because it was quite complicated, and I do not want to give the wrong answer.

On the question of sufficient time for the new government amendments, I will ensure that I talk to the usual people to give plenty of time for noble Lords to look into them, because they were more substantive than this group of amendments. Saying that, I beg to move.

Amendment 104 agreed.

Moved by

[Baroness Scott of Bybrook]

105: Schedule 2, page 259, line 24, leave out “regulations” and insert “order”
Member's explanatory statement
This amendment and the amendments in the name of Baroness Scott of Bybrook at page 259, line 25, page 259, line 27 and page 259, line 28 correct drafting errors, in that references to various kinds of regulations should be references to various kinds of order.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

121: Schedule 3, page 264, line 27, leave out “and 8” and insert “, 8 and 8A”
Member's explanatory statement
This amendment is consequential on the second amendment in the name of Baroness Scott of Bybrook at page 260, line 10.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 15th March 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, I completely understand why the noble Baroness, Lady Harris, has brought her concerns forward. This is clearly a really important issue in Yorkshire, where she lives. I also think it draws to your Lordships’ attention that much in the Bill is perhaps not as straightforward as it would appear at first glance, and that things affect different areas in different ways. Perhaps the Government should look again at some parts of the Bill where there will be different impacts from those perhaps originally envisaged. The noble Baroness, Lady Harris, has drawn attention to one of these areas.

The noble Baroness mentioned the National Fire Chiefs Council. This is an opportunity to put on record the National Fire Chiefs Council’s response to the Government’s recent review of police and crime commissioners, as that puts it in the context of these clauses and our discussions about how the Bill relates to fire services and PCCs. The Government’s review looked at fire services, policing, governance and voluntary and community organisations. There were certain specifics relating to fire. The Government said that they would further look at:

“Consulting on whether to mandate the transfer of fire and rescue functions to the Police, Fire and Crime Commissioner model across England where boundaries are coterminous, unless there is an option to transfer fire governance directly to an elected Mayor … Legislating to create operational independence for Chief Fire Officers and to clearly separate and delineate strategic and operational planning for fire and rescue … Considering options to clarify the legal entities within the PFCC model.”


They stated that

“the Government is clear that further reform of fire and rescue is required in order to respond to the recommendations from Phase 1 of the Grenfell Tower Inquiry, the Kerslake Review and to build on the findings from Sir Thomas Winsor’s State of Fire and Rescue Report”.

Any reform would

“focus on three key areas: people; professionalism; and governance”.

In response, the National Fire Chiefs Council said

“if fire services are governed by a Police, Fire and Crime Commissioner (PFCC)”—

we already know that some already are—

“it is imperative CFOs roles are safeguarded and have the same standing as a Chief Constable. Currently, Chief Constables … act as the employer and have operational independence. The same operational positioning for CFOs is vital, together with”

a wider status sitting alongside police forces. We know that fire services are driven by risk and risk factors; they are not as demand-led as police forces, and a number of key operational, organisational and cultural differences sit between the two services. When working with them, we need different approaches; there are different functions, and a different kind of political understanding needs to come with that.

We only need to look back over the last couple of years to see the response to the pandemic and how fire services were able to adapt quickly to the frequent challenges which emerged. However, it also showed that there are some areas that need reform to ensure that the public continue to receive the outstanding response they expect. We know that the public have huge respect and support for our fire services.

We must not forget the role of the fire services to serve communities, putting them first while reducing risk and saving lives. We must not lose sight of that when making reforms, because any reform that happens will be a pretty major undertaking and will need to be resourced appropriately. If changes come from the Bill to the way fire services are managed, we must not lose resources, and they must be carried out in a consistent, joined-up manner.

There also has to be proper clarity around the political leadership. How will that operate? With appropriate political oversight, CFOs will be well placed to deliver the operational running of services, using strong data and the evidence they need. However, if we are moving in the direction that the Bill is suggesting, there must be a democratic mandate, good governance, accountability and robust political decision-making, otherwise there is a risk of undermining the community’s trust in those services, which is critical.

We also need clear lines of responsibility, and we should have national guidance and standards on this for all forces, PCCs and fire services to follow. Any strategic direction of budgets has to be properly evidence-based, with clearly defined roles for the people who are part of those services.

To conclude, one of the things we are concerned about, which came across in the earlier contribution from the noble Baroness, Lady Harris, is the confusion presented by so many different models, both those which currently exist and those which will be expanded by the proposals in the Bill. So clarity going forward is critical.

I turn, very briefly, to Amendment 122A, tabled by the noble Lord, Lord Stunell. He is absolutely right to be concerned about the fact that the Secretary of State in this part of the Bill is basically being allowed to do whatever they like. The whole Bill has been pitched as devolving power, but this is centralising power, and it goes against the spirit of what we felt the Bill proposed to be. We need proper checks and balances on any powers given to PCCs and the Secretary of State, so we completely support the noble Lord’s amendment. Any Secretary of State should not be able to amend, revoke or repeal at a whim.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, this group of amendments relates to the ability of combined county authority mayors to take on fire and rescue functions. On issues raised by the noble Baroness, Lady Harris of Richmond—it is very nice to see her; we miss her in the House—Clause 32 enables the mayor of a combined county authority to exercise fire and rescue functions in the same way that a mayor of a combined authority can. We have seen this already in Greater Manchester, where the mayor has taken on the police and crime commissioner role and fire and rescue functions.

This allows public safety functions to be taken as a package where there is a local desire for this—we are not imposing it—and boundaries are co-terminous. It is worth noting that this is a choice for the local area, allowing the decision to be taken at the most local level, in line with the principle of localism. We are also keen to ensure that, whenever possible, the functions of combined authorities and combined county authorities should be the same. This starts to answer the noble Baroness opposite: we are trying to simplify things; we are not trying to add different complications. We are trying to make the combined authorities and combined county authorities—

[Baroness Pinnock (LD)]

I apologise for interrupting the Minister. She has said that the decision will be made only if it is supported democratically. Yet Clause 33(4)(b) says that

“at least two thirds of the constituent members of the CCA”

can indicate that

“they disagree with the proposal for the regulations to be made”,

and Clause 33(5) says that the mayor, in providing a report to the Secretary of State, must give their response to those same proposals. I thought that democracy was about winning the argument, not finding a way around it.

[Baroness Scott of Bybrook (Con)]

The Secretary of State would have an independent review of the decision and would make a decision taking all that into account.

We are also keen, as I say, to make sure that those combined authorities and combined county authorities operate in the same way to ensure this consistent approach to devolving these functions to mayors, whether they are leading a combined authority or a combined county authority. This clause achieves that for the exercise of fire and rescue functions by replicating the existing provisions in the 2009 Act.

I turn to issues raised by the noble Baroness regarding Clause 33. The single-employer model is just one option available to combined county authority mayors with both police and crime and fire and rescue authority functions, allowing the area’s chief constable to run both operational services. A mayor of a CCA could seek to utilise the model if they felt that doing so would deliver a more effective service. To go back to the noble Baroness, Lady Pinnock, if we are talking about fire and rescue and police and crime, an effective service is one that keeps people safe; that is their job and I suggest that, if it is effective, that is exactly what they are doing.

As far as York and North Yorkshire are concerned, the fire and rescue service and the police and crime functions are, as the noble Baroness said, already adjoined, but without the use of a single employer. That has not been taken into account in York and North Yorkshire, and there is no reason to think that the mayor will do that. At the moment, the combined authority still has to go through parliamentary approval, so that will be something for local people in the future.

Clause 33 sets out the process required for the mayor of a combined county authority to request fire and rescue functions. The clause is an important part of the procedure to be followed when fire and rescue functions have been conferred on a combined county authority mayor as part of the single-employer model. It ensures that there is sufficient scrutiny from both constituent councils of the CCA and the public because it requires the mayor to provide a report setting out an assessment of the benefits of the conferral and a summary of the public consultation carried out, along with a specific summary of representations from the constituent members of the CCA and the mayoral response to them.

This clause also contains further scrutiny to make sure that any proposal will deliver more effective services for an area. The Secretary of State has to obtain and publish an independent assessment of a proposal from a combined county authority mayor if two-thirds or more of the constituent members of the CCA oppose the transfer. The Secretary of State will then agree to transfer the functions only if they consider that doing so is in the interests of public safety for that area.

Removing the clause would remove key conditions for fire and rescue functions to be transferred to the mayor of a combined county authority and could therefore potentially lead to proposals going forward that have not been subject to either sufficient consultation or robust assessment. This in turn could lead to an ineffective implementation of the model and inconsistent application of it between areas.

I move on to issues the noble Baroness raised regarding Clause 34. This clause enables the Secretary of State to make provisions relating to the administrative operation of fire and rescue services, should a combined county authority mayor request these functions and transfer them to their chief constable to carry out on their behalf under the single-employer model. The clause is necessary because it enables there to be a scheme to transfer property, rights and liabilities as part of implementing the single-employer model. It also allows the chief constable to appoint staff as part of delegating their fire and rescue functions, subject to the necessary and important restrictions on who can carry out these responsibilities so that operational independence between policing and fire is maintained.

Removing this clause would make it very difficult for the chief constable to carry out their functions under the single-employer model, because they would not have access to key assets or be able to effectively resource their delivery. This would therefore lead to an ineffective implementation of the model and would hinder its day-to-day operation in a way that could ultimately impact on the successful delivery of these public safety functions for the area concerned.

On the issues raised by the noble Baroness on Clause 35, this clause sets out safeguards governing the exercise of fire and rescue functions where the single-employer model is being operated. These include a requirement on the chief constable to make sure that they secure good value for money, and an obligation on the CCA mayor to hold those exercising functions under the model to account. This clause is another important part of the process and procedure to be followed when these functions have been conferred on the mayor as part of the single-employer model. Where possible, the processes for handling the functions available to be conferred on combined county authority mayors are the same as those for combined authority mayors and subject to the same requirements.

Removing the clause would mean that the single-employer model would work less well in practice because important safeguards on the exercise of fire and rescue functions under the model would be lost. This in turn would lead to ineffective implementation of the model and inconsistent application of it between areas.

I turn to issues raised by the noble Baroness in relation to Clause 36. This clause enables the Secretary of State by regulation to make provisions corresponding to Part 2 of the Police Reform Act 2002 dealing with complaints and conduct matters. This clause is an optional power to be used when these functions have been conferred on a combined county authority mayor as part of implementing the single-employer model. It specifically relates to complaint and conduct matters for members of a police force and their civilian staff or members of staff transferred to a chief constable or appointed by them where they are exercising functions under the single-employer model.

Removing the clause would mean that the methods for dealing with complaints and conduct matters could not be specified for those carrying out functions under the single-employer model where a combined county authority mayor has decided to use it to exercise their police and crime and fire and rescue functions. Without this clause, it would be much more difficult for any complaints and conduct matters to be handled consistently and efficiently, thereby hindering the effective implementation and day-to-day operation of the single-employer model.

Clause 37 allows the Secretary of State to transfer the application of fire and rescue provisions under Section 32 to specified persons where regulations have transferred these functions to the chief constable of the area. Removing this clause would mean that the Secretary of State would not be able to make further provisions applying a fire and rescue enactment or new corresponding provisions in relation to chief constables to whom fire and rescue functions have been delegated as part of the use of the single-employer model. As such, removing this clause would hinder the effective implementation of the single-employer model.

Amendment 122A, tabled by the noble Lord, Lord Stunell, relates to powers under Clause 38.

[Lord Scriven (LD)]

I have listened very carefully both to the speeches that were made regarding the power of fire and rescue and police being together and the noble Baroness’s answers. I assume the purpose of this is not just an administrative difference but actually to improve the services of fire and police to people where this merger happens. Has the Minister looked at the four areas where this has happened, and His Majesty’s inspector of fire and police? Do those areas actually have a better service, an average service or a worse service than the national average?

[Baroness Scott of Bybrook (Con)]

I cannot answer the noble Lord in detail, but I will look into it and make sure he has those comparisons and knows what they are.

[Lord Scriven (LD)]

I can help the noble Baroness: having looked at the comparisons, I can say that they are actually below the national average. So, what is the purpose of going through this huge administrative issue if it does not improve the services to people on the ground?

[Baroness Scott of Bybrook (Con)]

Because this is localism. If local areas want to take on those responsibilities, the Government have been listening to local authorities and combined authorities and listening to the fact that they want to take these on. The fact that there are only a few of these combined police and crime responsibilities and fire and rescue responsibilities—at the moment, there are not very many—means that it is quite difficult to tell, but we need to keep an eye on it, obviously, and I will come back to that in a minute under Amendment 122A.

The Secretary of State has power under this clause, as we have heard from the noble Lord, Lord Stunell, to apply legislation relating to police and crime commissioners in relation to combined county authority mayors where the single-employer model—that is, the ability to make the chief constable the single operational head of both the police force and the fire and rescue service—has been engaged. Clause 38(4) provides a power to amend, revoke or repeal legislation consequential on that power. This is important because of exactly what the noble Lord opposite said: this is the power that could be used if any area has implemented the single-employer model but the chief constable is failing to manage the F&RS effectively. The Secretary of State may wish to revoke the implementation of the single-employer model and use this provision to do so. I think this is the power we have put in to ensure that exactly what the noble Lord opposite says need not happen.

[Lord Stunell (LD)]

I thank the noble Baroness for her response, which I am not sure entirely clarifies the situation. What she seems to be saying is that the Bill introduces a new scheme whose outcome is so uncertain that we need an extra provision for it to be changed if it goes wrong. That is in light of what my noble friend has just said, which is that the four actual examples that exist at the moment have all performed below average. So, in that sense, her caution about having such a power is perhaps quite sound, but does that not rather indicate that the model itself should not go ahead in this form until the Government are satisfied that it will achieve the objectives of improved performance, or at least not deteriorating performance, before she proceeds?

[Baroness Scott of Bybrook (Con)]

With the greatest respect to the noble Lord, I do not think we will not know exactly until we try it, but there will always be this power to say that, if those local people are not getting the service they require, the Secretary of State can revoke.

[Lord Stunell (LD)]

I think I am right on this, although the noble Baroness might correct me. I got through the first 38 clauses and I think this was the first time I saw this particular revocation and amendment power being given to the Secretary of State. I believe that would have the effect of that amendment being made without any further reference to Parliament, other than through a set of regulations that we cannot amend—so its absence would simply mean that, should something need to be corrected, it would come back to Parliament. Is that interpretation correct?

[Baroness Scott of Bybrook (Con)]

No, it is a power for the Secretary of State.

The amendment seeks to remove the power of the Secretary of State to make consequential amendments to such legislation. The effect would be that the Secretary of State could still apply police and crime commissioner legislation in relation to a combined county authority mayor or chief constable but could not make any necessary consequential amendments to reflect a change of circumstances. This limitation is undesirable and would result in flawed and inconsistent legislation in this area.

Finally, I will address the issues raised by the noble Baroness on Clause 38. This clause allows the Secretary of State to make regulations applying legislation that relates to a police and crime commissioner to a combined county authority mayor or a chief constable where the combined county authority mayor has adopted the single-employer model. Removing the clause would hinder the effective full implementation of the single-employer model because it would mean that the Secretary of State could not make further regulations applying local policing enactments or new corresponding provisions in relation to mayors of combined county authorities who have implemented the model.

I hope that my explanation will reassure the noble Baroness and the noble Lord of the importance of this group of clauses to the effective conferral of fire and rescue functions on combined county authority mayors, specifically on those opting to use the single-employer model to exercise these functions, and will therefore enable her to withdraw her opposition to them standing part of the Bill.

[Baroness Harris of Richmond (LD) [V]]

My Lords, I thank the Minister for her comments. All the clauses stand together, so I need to read Hansard carefully and go through her comments on each clause. I believe there was some contradiction in what she said, so it is important that I am quite clear going forward that I have understood absolutely what has been said this afternoon. I thank all noble Lords who have spoken. I will withdraw my opposition at this point to the clauses standing part, but we will come back to this on Report.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

I do not disagree that audit is required. We debated that earlier on the Bill. The authorities mentioned are Conservative authorities, as in Northampton, where my good friends in Corby lost their council because of the actions of a council of another political persuasion. That is a political point, which I probably should not make here.

A proper consideration of the role of further fiscal powers, with full engagement of local government— I am not suggesting that this is done to us because it would go against all the principles that we are talking about—could provide the basis for an empowered, innovative and dynamic shift for CCAs and their constituent members, sitting alongside the completion of the fair funding review, which has been outstanding for years now and which we have discussed previously.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 128 tabled by the noble Lords, Lord Scriven and Lord Shipley, relates to the potential fiscal powers of combined county authorities, although we were slowly moving into a debate on English devolution, which we should leave for another time.

As set out in the levelling-up White Paper, level 3 devolution deal areas can look to finance local initiatives for residents and businesses. These include regeneration through a mayoral precept on council tax, and supplements on business rates. The Government are already considering putting powers in the hands of local people through greater fiscal freedoms and are exploring this further fiscal devolution, initially through the trail-blazer devolution deals with Greater Manchester and the West Midlands combined authorities. Negotiations are ongoing and progressing well. It says in my notes that they are expected to conclude in early 2023, so I assume that it will be very soon.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

131: Schedule 4, page 266, line 6, at end insert—
“Landlord and Tenant Act 1954 (c. 56)
A1 In section 69(1) of the Landlord and Tenant Act 1954 (interpretation), in the definition of “local authority”, after “section 103 of that Act” insert “, a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023”.Trustee Investments Act 1961 (c. 62)
A2 In section 11(4)(a) of the Trustee Investments Act 1961 (local authority investment schemes), after “section 103 of that Act” insert “, a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023,”.Local Government (Records) Act 1962 (c. 56)
A3 The Local Government (Records) Act 1962 is amended as follows.A4 In section 2(6) (acquisition and deposit of records), after “section 103 of that Act” insert “, to a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023”.A5 In section 8(1) (interpretation), in the definition of “local authority”, after “section 103 of that Act” insert “, or a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023”.Leasehold Reform Act 1967 (c. 88)
A6 In section 28(5)(a) of the Leasehold Reform Act 1967 (retention or resumption of land required for public purposes), after “section 103 of that Act,” insert “any combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023,”.Transport Act 1968 (c. 73)
A7 The Transport Act 1968 is amended as follows.A8 (1) Section 9 (Areas, Authorities and Executives) is amended as follows.(2) In subsection (1)—(a) in paragraph (a)(i), after “a combined authority area” insert “or a combined county authority area”;(b) after paragraph (ab) insert—“(ac) any reference to a “combined county authority” is to an authority established under section 7(1) of the Levelling-up and Regeneration Act 2023 for an area which is or includes a metropolitan county;(ad) any reference to a “combined county authority area” is to an area for which a combined county authority is established;”;(c) in paragraph (b), after sub-paragraph (ia) insert—“(iaa) in relation to a combined county authority area, the combined county authority;”.(3) In subsection (2), after “a combined authority area” insert “, a combined county authority area”. (4) In subsection (3), after “a combined authority area” insert “, a combined county authority area”.(5) In subsection (5) for “or a combined authority area” substitute “a combined authority area or a combined county authority area”.A9 In section 9A (general functions of Authorities and Executives), in each of subsections (3), (5), (6)(a) and (b), (7) and (8), after “combined authority area” insert “, combined county authority area”.A10 (1) Section 10 (general powers of Executives) is amended as follows.(2) In subsection (1), after “a combined authority area” insert “, a combined county authority area”.(3) In subsection (3), after “a combined authority area” insert “, a combined county authority area”.(4) In subsection (5), after “a combined authority area” insert “, a combined county authority area”.A11 In section 10A(1) (further powers of Executives), for “or combined authority area” substitute “, combined authority area or combined county authority area”.A12 In section 12(1) (borrowing powers of Executive), after “a combined authority area” insert “, a combined county authority area”.A13 In section 14(1) (accounts of Executive), after “a combined authority area” insert “, a combined county authority area”.A14 (1) Section 15 (further functions of Authority) is amended as follows.(2) In subsection (1), after “a combined authority area” insert “, a combined county authority area”.(3) In subsection (6), after “a combined authority area” insert “, a combined county authority area”.A15 In section 16(1) (annual report by Authority and Executive), after “combined authority area” insert “, combined county authority area”.A16 (1) Section 20 (special duty with respect to railway passengers) is amended as follows.(2) In subsection (1), after “a combined authority area” insert “, a combined county authority area”.(3) In subsection (2A), after “a combined authority area” insert “, a combined county authority area”.A17 (1) Section 23 (consents of, or directions, by Minister) is amended as follows.(2) In subsection (1), after “a combined authority area” insert “, a combined county authority area”.(3) In subsection (2), after “a combined authority area” insert “, a combined county authority area”.(4) In subsection (3), after “a combined authority area” insert “, a combined county authority area”.A18 In section 56(6) (assistance by Minister or local authority towards expenditure on public transport), after paragraph (bc) insert—“(bd) a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023;”A19 (1) Schedule 5 (Passenger Transport Executives) is amended as follows.(2) In Part 2, in paragraph 2, after “the combined authority area”, in both places it occurs, insert “, the combined county authority area”.(3) In Part 3, in paragraph 11, after “a combined authority area”, insert “, a combined county authority area”.Local Government Grants (Social Need) Act 1969 (c. 2)
A20 In section 1(3) of the Local Government Grants (Social Need) Act 1969 (provision for grants), for “and a combined authority established under section 103 of that Act” substitute “, a combined authority established under section 103 of that Act and a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023”.Employers’ Liability (Compulsory Insurance) Act 1969 (c. 57)
A21 In section 3(2)(b) of the Employers’ Liability (Compulsory Insurance) Act 1969 (employers exempted from insurance), after “section 103 of that Act,” insert “a combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023,”.Local Authorities (Goods and Services) Act 1970 (c. 39)
A22 In section 1(4) of the Local Authorities (Goods and Services) Act 1970 (provision for grants), in the definition of “local authority”, after “section 103 of that Act,” insert “any combined county authority established under section 7(1) of the Levelling-up and Regeneration Act 2023,”.”Member's explanatory statement
This amendment inserts various consequential amendments relating to the provisions about combined county authorities in Chapter 1 of Part 2 of the Bill.

--- Later in debate ---

So while we could argue the relative merits of part of this amendment, it is again disappointing that, in setting out the Bill, we could not be more ambitious in addressing issues that are critical to overall devolution. It is rather a shame and a missed opportunity that the Bill did not include those vital issues.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 157, tabled by the noble Baroness, Lady Pinnock, seeks to enable each local authority to choose its own voting system. In doing so, the

“local authority must have regard to the benefits of reinvigorating local democracy in its area.”

We agree that a vigorous local democracy is vital; however, we take a different view as to how this will be best provided for.

First, we are clear on the merits of first past the post as a robust and secure way of electing representatives. It is well understood by voters and provides for strong, clear local accountability. It ensures a clear link between elected representatives and those who vote for them, in a manner that other voting systems may not. For those reasons, we have provided that, from this May’s elections, first past the post will also apply in voting for local authority and combined authority elected mayors, and for police and crime commissioners.

Secondly, we do not believe it would be right for the voting system to be a matter of local choice for particular councils. It is important that the voting system be clearly understood by electors and that they have confidence in it. Having different systems for neighbouring areas risks confusing electors, and any such confusion risks weakening public confidence in the electoral process.

A council being able to choose its voting system would also risk political manipulation. For example, the current controlling group on a council could seek to choose a system that it believes would favour it. While I accept that there could be various safeguards to mitigate that risk, I do not consider that it could be entirely removed.

Elections are the foundations of local democracy, which is central to our values and our being a free society; we should protect and nurture it. I recognise that all noble Lords in this Committee share that view, but I am afraid that what this amendment envisages would in practice be the kind of tinkering with the foundations of local democracy that I am clear we should avoid.

Finally, there are already relevant provisions in place under the local government and public health Act 2007 which enable district councils to change their scheme of elections. Those councils electing by thirds, where a third of council seats are up for re-election in each of three out of every four years, can move to whole-council elections, where all council seats are re-elected at once, every four years, and some councils currently holding whole-council elections, which formerly elected by thirds, can resolve to revert to electing by thirds.

Perhaps more importantly, experience has shown the merits of whole-council elections: facilitating stable, strategic local leadership, and delivering a clear programme for which the council can be held to account by the electorate. We encourage those councils still not holding whole-council elections to consider using the powers which Parliament has given them to switch to such elections. We would not wish to see councils which have not previously done so moving to elections by thirds.

Before I finish, I will just remind noble Lords that we had a referendum on changing first past the post in 2011, and 67.9% of the population voted against any change.

[Baroness Bennett of Manor Castle (GP)]

Would the Minister acknowledge that that was not giving the public the choice of a proportional representation voting system, where the seats would match votes?

[Baroness Scott of Bybrook (Con)]

But it was about a change in the type of election and there was a very clear result against it. I consider that to be a very clear result in support of first past the post.

Therefore, although I appreciate the intentions behind this amendment, for all of those reasons I hope I have said enough to enable the noble Baroness, Lady Pinnock, to withdraw her Amendment 157.

[Baroness Pinnock (LD)]

My Lords, I thank all noble Lords who have taken part in this debate so that we can explore the issue, because it is a sort of twin part of fiscal devolution. This is not an arcane debate for election geeks; it is really important if we are going to renew our local democracy. The amendment is not asking very much; it is simply asking for local authorities to be allowed—there is an example of control from Whitehall—to choose their own voting system.

My noble friend Lord Stunell raised two important issues about first past the post. If electors feel that the outcome of an election is a foregone conclusion, they do not bother to vote. You can see that in turnouts across the country. It leads to apathy and cynicism, which are the last emotions that we need to see in our voters when we know that we need to reinvigorate our local democracy. Change is going to be important if we are going to narrow inequalities, which is what this levelling-up Bill should be all about. However, change can be divisive, so if you have a broader representation of views and hear more voices, you have a better chance of drawing people together to agree to a change—not cutting down trees in the middle of the night, which is apparently what happened in Tory-run Plymouth council.

I will just say one or two things about the response from the Minister. I thank her for replying and claiming that first past the post is the only one that allows the link with electors. So what are the Government doing then allowing Northern Ireland to use STV, Scotland to use STV for its local elections and Wales to use different systems? If it is so bad and does not make a link, what is going on here? Local government is powerful in those countries, and we need to make it powerful here.

My last point is that the Minister, if I heard her right, said that if we introduce a system where local authorities can choose which voting system they wish to use, the current political makeup of a council would choose a system that suited them. But the whole point of a more proportional system is that you cannot do that. It is up to the voters to choose. Putting the power in the hands of the voters seems a jolly good idea. With that, I look forward to trying to change the Minister’s mind and I beg leave to withdraw the amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 15th March 2023 Lords Chamber

I entirely endorse what the noble Baroness, Lady Hayman of Ullock, said about the tension—if not outright conflict—between the different layers of planning and what takes priority over what. I have an amendment later on to say that, if this way forward is adopted, we should make an exception for those neighbourhood plans that are in the process of being signed off in referendums and endorsed by their district councils. If the Government insist that those which are 99% finished have to go back and be ripped up because Clause 92 and the national development management plans take priority, they will completely crush the neighbourhood plan movement and undo all the good work they have done so far.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, before I respond to the amendments in this group, I want to say that the Government recognise that parish councils have an important role in improving the quality of life and well-being of their communities. They have a close understanding of what their communities want and can design and procure the services which best meet those needs. They are vital to levelling up. I just wanted to add that before turning to these amendments covering parishes and neighbourhoods.

On Amendment 159, tabled by the noble Baroness, Lady Scott of Needham Market, the fact that there is no provision in current legislation for a sanction to suspend a councillor was a deliberate policy decision at the time of the Localism Act 2011 to differentiate it from the previous Standards Board regime. That regime was considered to have allowed politically motivated and vexatious complaints. The Government’s position on this remains substantially unchanged, as referenced in our response to the Committee on Standards in Public Life’s review of local government ethical standards.

This clause to suspend a parish councillor found to have breached their code of conduct would introduce inconsistency in the local authority standards regime across the other tiers of local government. On the rare occasions when councillors display poor behaviour, local authorities have options to issue sanctions on parish councillors. Councillors can be barred from committees or representative roles and may be publicly criticised.

I turn to Amendment 160, also tabled by the noble Baroness. This Government are keen to ensure that local communities are well represented in local authorities and that all levels of local government are supported to create thriving local democracies. While I thank her for raising this amendment, it would result in unknown but likely significant costs and pressures on the modest finances of many parish councils. For that reason, the Government resist the amendment.

Turning to Amendment 161, tabled by the noble Baroness, as set out in the levelling-up White Paper the Government are committed to undertaking the neighbourhood governance review as one of the six drivers of levelling up. The review will make it easier for local people and community groups to come together to set local priorities and shape the future of their neighbourhoods. The Government are taking the appropriate steps to deliver the review within the next financial year, 2023-24, and will ensure that a programme with a bold new approach to community empowerment is put in place. The success of this will require the collaboration of all partners in local government and civil society, as well as central government.

Turning to Amendment 162, tabled by the noble Baroness, the Government recognise the important role that town and parish councils play in their communities. Parish councils have the power to raise funds through precept, which they can ask their local billing authority to collect through the council tax system. There are around 10,000 parish councils in England, and I am sure noble Lords will agree that it would be disproportionately bureaucratic for central government to give funding to all of them directly. It is much better for them to raise that funding locally, according to the needs of their local communities. As for bids for certain grants, PCs can always work with other local authorities and their partners in an area for funds, including such funds as the LURB’s.

Amendment 163 is important to government. The intention of the Local Government Act 1894 was to provide a clear separation between parochial church councils and the newly created civil parishes. While it does not allow parish councils directly to contribute to the maintaining or improving of church buildings, other powers, as has been said, such as the Local Government Act 1972, allow parish councils to contribute to the upkeep of such buildings if it is deemed to be in their local communities’ interest. Section 19 of the Local Government (Miscellaneous Provisions) Act 1976 enables parish councils to provide assistance in respect of buildings used for public meetings or for recreational facilities.

We are aware that there are different interpretations of the laws surrounding this issue which have not been tested in the courts. As independent bodies, it is for parishes to decide what works best for them in their local communities and to ensure they act within the relevant legislation, taking legal advice where appropriate. If the noble Baroness will forgive me, I will not go further into this issue at this time because I look forward to debating it much more fully when the amendments in the name of my noble friend Lord Cormack and the right reverend Prelate the Bishop of Bristol are before the Committee. For the time being, however, I note the intention behind the noble Baroness’s amendment.

Turning to Amendment 164, tabled by the noble Baroness, the definition in the Localism Act 2011 of local authorities covers a parish council and enables such a council to do anything an individual might do, apart from that which is prohibited, obviously. The intention of the 2011 Act is to give local authorities confidence in their legal capacity to act for both their communities and in their own financial interests, in addition to providing them with more freedoms to innovate and work with others to run services and manage assets for the benefit of the local communities they serve. Parish councils vary in their ability and capacity to take on the enhanced roles and responsibilities of an authority with the general power of competence.

To make it clear to noble Lords, the general power of competence includes the council clerk having completed a course in local administration and two-thirds of the councillors having been elected. These are not easy things, they but are sensible when it comes to a general power of competence. The 2011 Act therefore makes extension of powers to parish councils conditional.

Regarding the concerns of the noble Baroness, Lady Taylor of Stevenage, about Clause 92, before a neighbourhood plan or development order can be put to a referendum, the local planning authority must be satisfied that it complies with certain legislative tests known as “basic conditions”. The purpose of Clause 92 is to update the existing list of basic conditions to ensure that neighbourhood development plans and orders complement the reforms to the wider development plans framework and meet future environmental assessment requirements.

More broadly, and to make the position clear to the noble Baroness, Lady Hayman of Ullock, and others, the Bill will strengthen neighbourhood planning. In future, decisions on planning applications will be able to depart from plans, including neighbourhood plans, only if there is a strong reason to do so. In addition to neighbourhood plans, as we have heard, communities will also be able to prepare neighbourhood priority statements, making it easier and quicker for them to determine the priorities and preferences for their local areas. These will feed into the local plan process and the local planning authority will also be required to consider them.

Clause 92(1) removes the historic inclusion of paragraph (e) under paragraph 8(2) of Schedule 4B to the Town and Country Planning Act 1990, which stated that a neighbourhood development order must be in general conformity with the strategic policies of the local authority’s development plan. It replaces paragraph (e) with paragraph (ea), which makes it clear that a neighbourhood development order cannot prevent housing development taking place in a location that has been proposed within the local authority’s development plan.

Clause 92(1) also introduces paragraph (fa) under paragraph (f) of paragraph 8(2) of Schedule 4B to the 1990 Act. This requires that neighbourhood development plans and orders comply with the environmental outcomes report framework that the Bill is introducing to replace the EU processes of environmental impact assessment and strategic environmental assessment.

In addition, Clause 92(2) introduces a new basic condition for neighbourhood plans, which sets out that they must not result in the development plan for the area proposing less housing development than would have occurred if the neighbourhood plan were not being made.

[Lord Stunell (LD)]

I thank the noble Baroness for her explanation. It is certainly helpful as far as the first parts of Clause 92 are concerned, but new paragraph (ea) is precisely the point I was raising: it requires a neighbourhood plan not to reduce housing allocation compared to the local plan, which is the current context. Bearing in mind that quite a few neighbourhood plans are being made in areas that do not have local plans, that raises another question, which we will park for the moment. If you put that floor at the level at which neighbourhood plans have to perform—in other words, you want everything to be above average compared to what we have now—does the noble Baroness not see that it undermines the flexibility that is the strength of neighbourhood plans?

[Baroness Scott of Bybrook (Con)]

No, I do not. One of the main issues that this or any Government will face is building houses, and allowing a neighbourhood plan to deliver fewer houses than a local plan is not acceptable.

On Amendment 506, tabled by the noble Baroness, Lady Taylor of Stevenage, the Government recognise the important role that parish councils play in improving the quality of life and well-being of their communities, which are at the heart of the Government’s six drivers of levelling up. The Government believe that the current provisions are adequate in addressing issues faced by the sector. These provisions provide tools and flexibilities to allow town and parish councils in England to adapt to local needs and circumstances. In Scotland and Wales, the devolved Governments also already have the tools to conduct a review of the provisions in this Bill and to make changes in relation to community councils. Noble Lords will agree that it is important for local people and community groups to come together to set local priorities and directions. I hope that the noble Baroness will feel able to withdraw her amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 20th March 2023 Lords Chamber

[Lord Shipley (LD)]

My Lords, my name appears on Amendment 428, together with that of my noble friend Lady Pinnock. I just want to say two things. First, I hope the Minister understands the seriousness of this issue. Proposals for the reform of business rates have been regularly promised in the past, and there is clear evidence that reform is needed.

Secondly, I draw the House’s attention to the announcement this morning, which will be furthered at a conference in Liverpool tomorrow, of the launch of the fiscal devolution report of the Northern Powerhouse Partnership. It makes five key recommendations: first, devolution of reform of the business rates system to all mayoral authorities; secondly, the creation of three new council tax super-bands; thirdly, devolution of stamp duty to local councils; fourthly, devolution of 1p of existing employers’ national insurance contributions for local transport services and infrastructure, as is done in France; fifthly, a tourism tax on hotel stays to support culture, protect the environment and improve visitor experiences.

There will be a debate about that and, as we have heard, consultation will be needed on how to reform business rates. The time has come for this to be taken very seriously and for proposals to be initiated. I hope the Minister can tell the Committee that that is what the Government intend to do.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank the noble Baroness, Lady Hayman of Ullock, for setting out in Amendment 168B her suggested redistribution of the income raised by the council tax premium from upper-tier councils to district councils. The proposed premium will provide all councils, including district councils, with the opportunity, where they set a premium at the maximum level of 100%, to raise double the revenue from each second home in their area.

Revenue from council tax is essential for a wide range of councils, providing them with funding to make available a range of public services which best fits the needs of the local area. Under this amendment, in an area with two tiers of councils the district council would be able to retain all the income raised by the council tax premiums. This would disturb one of the key components of the council tax system—that local authorities should calculate their council tax charge for local services on the same basis as each other, with equal access to the revenues generated. The long-term empty homes premium has been in place since 2013 and has followed this long-established principle. We trust councils to make their own decisions on where their funding should be spent, and we do not consider it appropriate to engineer the system to direct part of the proceeds of council tax to one particular type of authority in some parts of the country.

Different communities will have their own set of challenges and solutions to second home ownership and empty properties. For instance, this may be through additional funding for transport or education, which falls within the remit of county councils. The current approach provides flexibility for a range of councils and other authorities to generate additional income, which can be used as they see fit. If a council feels that funding should be put towards a particular goal such as housing, this should be discussed with the other authorities in the usual way.

A change in the distribution method for the council tax premiums would also create an imbalance between two-tier areas and areas covered by unitary authorities. For example, in a single-tier area with a high number of second homes, such as Cornwall, the council would be required to share the proceeds of the premiums with the other precepting authorities, such as the PCC or the fire and rescue service. However, in a two-tier area with a high number of second homes, such as Norfolk, the amendment would mean that all additional income was retained by the district council. Notwithstanding the second part of the noble Baroness’s amendment, there would be no obligation to enable precepting authorities to benefit from the increased income. This may be advantageous to the district but would prevent the income being spent on services provided by other authorities in the area that can benefit the local community, such as road maintenance and better care for the elderly.

I turn to Amendment 169, in the name of the noble Baroness, Lady Hayman. We discussed earlier in Committee that the purpose of Clause 76 is to provide councils with an opportunity to apply a council tax premium on second homes. As with all properties, second homes may be in a variety of different conditions. For the purposes of Clause 76, however, a second home would be caught by the provision only if the property was substantially furnished. Indeed, this is an important factor in differentiating such properties from those that might be impacted by the long-term empty homes premium, as set out in Clause 75. Where such properties are substantially furnished, I would not envisage that they are likely to be in a condition to require significant work as a result of dilapidation. Therefore, the premium council tax on a second home applies only where it is furnished. However, in specific circumstances the local authority has tax relief powers as well.

Notwithstanding that potential distinction, I can reassure the noble Baroness that the clause already makes provision for the Secretary of State to make regulations that exempt certain classes of property from the effects of the second homes premium. Similar powers are already in place for the long-term empty homes premium. Obviously, before making any regulations the Government would wish to consult on any exemptions and to provide everyone with the opportunity to say what should—and, perhaps, what should not—be exempt from the effect of the premium.

The noble Baroness’s amendment also proposes a right of appeal against the imposition of a second homes premium. I can reassure her that, under Section 16(1) of the Local Government Finance Act 1992, council tax payers already have the right of appeal against any calculation of amounts they are liable to pay, including any premiums.

Finally, Amendments 428 and 474 were tabled by the noble Baroness, Lady Pinnock, and the noble and learned Lord, Lord Etherton. The Government are of course aware of the pressures facing businesses, including those on the high street, and have acted to support businesses up and down the country. As noble Lords are no doubt aware, the Government have only recently concluded a comprehensive review of the business rates system. A final report on the review was published at the Autumn Budget 2021, alongside a package of reforms worth £7 billion over five years. The review recognised the importance of the system in raising funds for critical local services in England, worth around £22.5 billion in 2022-23, and concluded that there was no consensus on an alternative model that would be of sufficient scale to replace business rates.

At the Autumn Statement 2022, the Government went even further and announced a range of business rates measures worth an estimated additional £13.6 billion over the next five years. As part of that package the Government announced that the tax rate will be frozen for a further year. This is a real-terms cut to the tax rate, worth around £9.3 billion over five years.

In addition, the retail, hospitality and leisure relief will be extended for a further year and made more generous. In 2023-24, it will provide eligible businesses with 75% off their bills, up to a maximum of £110,000 per business. This is worth an estimated £2.1 billion to ratepayers, many of which are on our high streets.

Furthermore, in response to the concerns of businesses in England, the Government will, for the first time and subject to legislation, introduce a transitional relief scheme for the 2023 revaluation. This will be funded by the Government and is expected to save businesses £1.6 billion. This will mean that the 300,000 ratepayers—

[Baroness Pinnock (LD)]

I apologise to the Minister for interrupting her reply, but she seems to be listing all the ways in which the Government are providing help to businesses via different reliefs for their business rates payments. If the business rates system is so bad that it needs substantial relief from the Government for those businesses to survive—and the amounts that the noble Baroness referenced were substantial—I can only conclude that the business rates system, as it applies to businesses in town centres, is broken. That is the reason for the argument that I have made, and why I hope that the Government will accept that business rates need a fundamental change; otherwise, the Government will be continually asked to provide relief to enable businesses just to survive.

[Baroness Scott of Bybrook (Con)]

I think I explained to the noble Baroness that we went out for extensive review—the issue is that we and local services need business rates—and there was no consensus on how they might be changed and made different, such that a similar amount of money would be coming in so that local areas could provide services. We tried but came to no consensus.

[Lord Etherton (CB)]

The Minister referred to, and I think the Government are relying upon, a 2021 review. What was the public’s involvement in that review?

[Baroness Scott of Bybrook (Con)]

I am sorry; I cannot tell the noble and learned Lord that, but I will make sure that I look into who, including the public, was consulted as part of that review. I will make sure that I get an answer to him and will put it in the Library.

As I said, in response to the concerns of businesses in England, the Government will introduce the transitional relief scheme for 2023. This will mean that 300,000 ratepayers seeing reductions in their rateable value at the revaluation also see an immediate fall in their bills from 1 April this year, rather than seeing those changes phased in over the life of the list. This will make the rates system much fairer and more responsive, and ensure that ratepayers benefit from the revaluation as soon as possible.

The Government also announced a supporting small businesses relief scheme, which will ensure that ratepayers losing some or all of their small business or rural rate relief as a result of the revaluation see their increases capped at a maximum of £600 in 2023-24. This is worth more than £0.5 billion over the next three years and will protect an estimated 80,000 small businesses. This is again on top of generous existing packages of statutory support provided to small businesses through the small business rates relief, which ensures that over 700,000 of our smallest businesses pay no rates at all.

The Levelling-Up and Regeneration Bill provides additional measures to address empty properties on the high street, such as the high street rental auctions. These measures will empower places to tackle decline by bringing vacant units back into use and will seek to increase co-operation between landlords and local authorities. Auctions will make town centre tenancies more accessible and affordable for tenants, including SMEs, local businesses and community groups. A review has only recently concluded and the Government remain committed to delivering on its conclusions. The £7 billion reform package announced at the end of that review and the £13.6 billion package of support announced at the Autumn Statement 2022 will, alongside the 2023 business rates revaluation, deliver vital help to those most in need, such as our high streets, and rebalance the burden of our business rates. In the light of these explanations, I ask noble Lords not to press their amendments.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank everyone who took part in the debate. I have two specific amendments in this group, but the debate has focused mainly on business rates. The noble and learned Lord, Lord Etherton, was right when he said that we need to look at the system as a whole and that business rates are not negotiable. That is part of the problem. If the Government are looking to reduce business rates, and they say that quite often, they need to look at how local authorities are funded, because so many are reliant on business rates. The debate has also demonstrated that the appeals system does not work at all. The noble Lord, Lord Ravensdale, talked about the need for economic dynamism for high street regeneration and said that business rates are a problem to achieving it. I completely agree with this.

When introducing her amendment, the noble Baroness, Lady Pinnock, was right to refer to the mission to which this relates, which is about increasing pride of place. On that note, I point out that there is not currently any incentive for local authorities to improve their town centres and increase the business base, as they are subject to tariffs. This perverse system actually discourages proper investment.

Again, the noble Baroness, Lady Pinnock, talked about e-commerce’s advantage over town centre premises and said that we need a fair competition. I am sure that the Government accept that. The challenge for all of us is what to do about it—how do you make that level playing field? I do not think there are necessarily easy answers to that.

I also thank the noble Baroness, Lady Pinnock, for her supportive comments regarding my amendments. She asked a question on Amendment 169 around dilapidation and the grace period that councils can bring in. The Minister mentioned something along these lines. What I found, when I had constituents coming to see me who were in this position, was that you only got that reduction or grace period if the council agreed that there was an issue of dilapidation; they do not always do that. You can get people being unstuck if the council will not agree it—then that reduction does not happen, and people get stuck. That was one of the points that I was trying to make.

The noble Lord, Lord Shipley, rightly drew attention to the fiscal devolution document that is being published for the north. I think this is really important because we do not believe that levelling up is going to be successful without fiscal devolution.

I thank the Minister for, as always, her detailed and thorough response to my amendments; it is appreciated. I will make one final comment on business rates following the noble Baroness’s response. Rather than tinkering with reliefs and temporary measures, we believe the whole system urgently needs a complete overhaul. It needs replacing with a fairer system that actually works for business. The current system, unfortunately, does not. In the meantime, I beg leave to withdraw my amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 20th March 2023 Lords Chamber

In conclusion, toxic air is killing, or contributing to the deaths of, many thousands of people in the UK every year, and the Conservative Government have not tackled the problem yet—we had much debate about this during the passage of the Environment Act. While this is a matter for the Mayor of London, during his leadership he has taken action to tackle killer air pollution and to put the health of residents first. I am sure that noble Lords have worked out by now that we do not support the amendments in the name of the noble Lord, Lord Moylan. But we think it important to point out that, alongside the existing ULEZ, the mayor has supported Londoners, micro-businesses and charities to scrap or retrofit their non-compliant vehicles, so funds are available for the extension. We now need action from government and mayors across the country to do everything they can to stop the air pollution that is causing so much harm.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 176, tabled by my noble friend Lord Moylan, would change the local consents required for traffic emission road-charging schemes to be introduced, and apply these new requirements retrospectively. I reassure the Committee that this amendment is not necessary for regions outside London as it maintains the status quo. In London, the amendment as drafted could remove established devolved powers from an elected mayor and as we have discussed in Committee, this is not our intention for devolution.

In London, under the Greater London Authority Act 1999 the mayor has the authority to create a new road scheme that charges users, or vary one, so long as doing so will directly or indirectly facilitate the achievement of the policies and proposals in the mayor’s transport strategy. As drafted, this amendment could be in conflict with the Greater London Authority Act, and it would potentially create legal uncertainty and conflict between the mayor and the London borough councils.

The Department for Transport has not made statements in support of the ULEZ: Transport Ministers have been completely clear that this has been a matter for the mayor to decide. I understand that my right honourable friend the Secretary of State for Transport has been engaging and will continue to engage with MPs whose constituents may be impacted by the proposed ULEZ expansion.

Outside London, charging schemes have been introduced for addressing congestion issues, improving air quality and raising funds for investment in new transport infrastructure and improving transport quality. The Transport Act 2000 already sets out how road-charging schemes can be introduced. In combined authority areas, these powers are held between the combined authority and the local traffic authorities—that is, the constituent authorities of the CA. Therefore, outside London local authorities are already required to introduce schemes and existing legislation already delivers what this amendment seeks to achieve.

Additionally, the amendment would require the reconfirmation of a number of existing charging schemes and it would allow any local authority unilaterally to revoke them. These schemes have been introduced and agreed locally and, where they cover multiple local authorities, agreed jointly. Decisions on whether to amend or revoke these schemes would therefore also be made jointly, as the powers in the Transport Act 2000 already ensure. I nevertheless recognise how important this issue is not only to my noble friend but to many others, and not just in London. I am happy to meet with him to discuss these matters further.

Amendment 178B, also in the name of my noble friend Lord Moylan, seeks to lower the threshold for amending the Mayor of London’s final draft budget from two-thirds of assembly members present and voting to a simple majority. While the amendment would undoubtedly strengthen the power of the London Assembly and mirror the voting threshold applied at earlier stages of the assembly’s consideration of the mayor’s annual budget, it must also be balanced against the benefits of the current strong mayoral model in London. I agree with my noble friend that it is crucial in any of these systems that we have strong audit and scrutiny. That is why the Bill strengthens both audit and scrutiny committees in these new authorities.

I recognise my noble friend’s interest in and experience of London governance matters and I would be pleased, as I say, to engage with him not only on his earlier amendments but these. Perhaps we might review the operation of London’s devolution settlement separately from the Committee’s consideration of the Bill, and I ask my noble friend to withdraw his amendment at this time.

[Lord Moylan (Con)]

My Lords, I am very grateful for what was a very valuable debate and I shall briefly go through those who spoke.

The noble Lord, Lord Tope, put his finger on it by saying that this is really a question that will not go away: about the balance of powers in areas that have strong regional government—combined authorities, metropolitan mayors and so forth—with the local councils, the constituent councils. As my noble friend the Minister made clear, those arrangements differ in different parts of the country, but we have to learn lessons from them and apply those lessons in an evolving way to existing structures; we cannot just dig our heels in and say that what was good in 1999 is good for ever. We have to be able to improve things; we understood that. On the question of subsection (2), I had a strong sense, listening to the noble Lord, that we were actually in violent agreement, but I am going to speak to him afterwards to discover if there is a difference between us and what can be done to reconcile our understanding of the boundary issue.

I was very grateful for the support of the noble Baroness, Lady Bennett of Manor Castle. I give some credit to the Green Party here as an example of what can be achieved by a more democratic scrutiny of the mayor’s budget. Only a few weeks ago, in consideration of the mayor’s budget the Green Party put forward in the assembly a costed amendment that would have required the mayor to introduce lavatories at up to 70 London stations. It got a majority in the London assembly; it was supported by the Conservatives and the Liberal Democrats; of course, it fell. Having a majority is not enough in this sort of democracy. There is something very strange about that; however, I am grateful to the noble Baroness for her support.

The noble Baroness, Lady Fox of Buckley, was right to point out that the weakness of process and the rushing of air quality measures is provoking a backlash and cynicism among the voters. She also expressed very well the genuine and real suffering of those who face the prospect of the current proposed ULEZ scheme in London. I have to be honest: what I would expect if this amendment were passed is not that boroughs would actually block a mayoral scheme to introduce a ULEZ; they would moderate it, because they too are interested in better air quality, and so are local people. They would have their say, so it would be introduced in a slower and more manageable way, with more local consensus and better support for those who are in need of making what can be a very expensive transition.

The noble Baroness, Lady Pinnock, drew on a very long experience of local government again to put her finger on the question of the democratic deficit. The noble Baroness, Lady Hayman of Ullock, made it abundantly clear that the Labour Party stands four-square behind the Labour mayor’s proposal to impose a ULEZ on outer London; there was not one word of criticism.

She mentioned the estimate of 4,000 premature deaths in London. I do not dispute that figure, but it is difficult to know what it means: is a premature death 10 years before you would have died or a week before? These are difficult figures to interpret, but that figure I regard as reliable and I am not disputing it in any way. However, I want to point out is that when I was deputy chairman of Transport for London—a post that came to an end in 2016—and on the board, the figure was also 4,000. The measures are introduced—the local traffic neighbourhoods, the ULEZes—but the estimated figure never changes. So is it really doing any good?

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, I will comment briefly on the three amendments in this group, starting with Amendment 511 in the name of the noble Baroness, Lady Taylor of Stevenage, about capital finance controls in local government. All I would say is that every local authority is required to have an external audit by a professional audit company to undergo a thorough inspection of its finances. It seems to me that the easiest way round this issue is to extend the requirement of the external audit to include a detailed investigation of any capital financing arrangements. That would reduce or eliminate all the additional requirements in the Bill and put the requirement on the external audit company to do a thorough audit of the council’s finances. If problems are exposed, the issues can then be resolved. This would mean that other local authorities which behave prudently are not caught up in the fairly strict regime that is being proposed.

Turning briefly to the amendments in the name of the noble Lord, Lord Northbrook, I totally support his Amendment 177 on improving standards of consultation for public bodies, particularly local authorities. There ought to be—I am sure there is—a standard for consultations that every public body, particularly local authorities, ought to adhere to.

On business improvement districts, I say that it is shocking to me that they could be established without full consultation and understanding by local residents. I would say, just as a point of history really, that our local councils used to have a big voice from local business. Businesses used to want to be elected to serve on their local council, where their voices could be heard and they could influence decisions that were made. Sadly, that tradition has disappeared, and there are fewer and fewer businesspeople who seek election to local authorities. This has led to the use of another way of trying to engage businesses in improving small areas such as this by giving them powers through the business improvement districts. So, yet again, these districts bypass local democracy, which is why I support the proposals in Amendment 178.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friend Lord Northbrook for moving Amendment 177. I cannot respond on specific local authorities, as he may realise, but I think that noble Lords have had a good discussion about said local authorities.

Statutory frameworks and clear rules for consultation already exist in some service areas, such as planning, and provide guidance on the required length and scope of consultation. There is a statutory publicity code, which is clear that all local authority communications must be objective and even-handed. Councils can carry out non-statutory consultations to allow residents to shape local decisions and plans. Greater involvement for local people can only be a good thing, and local authorities should be free to adapt their approach based on local need and requirements for these non-statutory consultations. A requirement for all consultations to be carried out by third parties would impose additional costs on local authorities, which might encourage less consultation and engagement, rather than more. I hope that, in the light of this explanation, my noble friend will agree to withdraw his amendment and not press his other amendments in this group.

Amendment 178 concerns business improvement districts—or BIDs, as they are often called. It is best practice for a BID to promote its actions so that levy payers and the community can see what is being achieved. Many BIDs keep an up-to-date website and engage regularly via social media to discuss their work. BIDs are intended to be business-led, business-funded organisations. It is right that the businesses that will be required to fund the BID make the decisions on whether there should be consultations.

My noble friend Lord Northbrook asked about local authorities on BID boards. There are local authorities on BID boards in Birmingham, Bristol, London and Newcastle, as well as in other places.

Regarding the review of BID arrangements, as I have said, the legislation does not preclude residents and members of the community from being consulted on a BID proposal or represented on a BID board. Many authorities are on BID boards in their local areas. We are not looking to review business improvement districts; in fact, we are looking closely at work that is being done on community improvement districts, which include community groups, local people and businesses. That work is being run by Power to Change, and we are keeping a close eye on the pilots and following them with interest.

Amendment 511, in the name of the noble Baroness, Lady Taylor of Stevenage, would apply across the Bill and would require the Secretary of State to give local authorities advance notice where provisions creating new responsibilities for them are to be commenced. In any circumstances, those gaining new responsibilities should be aware of them in good time. However, we do not consider that this amendment is needed. As I hope has been clear from our responses earlier in the debate, the Government entirely agree on the importance of collaboration with local authorities for our reforms to be successful. We are already working with local authorities on many of our reforms and will continue to do so. I can therefore confirm that the Government have no intention of introducing responsibilities for local authorities without the appropriate preparation, including supporting them both to understand those responsibilities and to manage any transition. In many cases, this work will include further consultation with local authorities and others to shape regulations and inform supporting guidance.

The noble Baroness, Lady Hayman, asked a couple of questions. I will look at those and give her a written answer. I hope that noble Lords will withdraw or not press their amendments.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 22nd March 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Baroness for bringing this to our attention. As she knows, I know the Malvern Hills area very well; it is beautiful. It is important that the Boundary Commission respects local boundaries and allows organisations such as the Malvern Hills Trust to operate as they are intended.

Does the Minister agree that one problem we have at the moment is that the Boundary Commission cannot carry out interim or minor reviews, as it simply does not have the resources to do so? That means that any kind of review could take up to 20 years to look at a problem or something that is not ideal, which is clearly not an ideal situation. Perhaps the department could look into this.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendments 178C and 509ZA, tabled by the noble Baroness, Lady Stuart of Edgbaston, seek to enable any statutory body to amend by order its constitutional arrangements consequential on an electoral changes order made under Part 3 of the Local Democracy, Economic Development and Construction Act 2009. That legislation enables the Local Government Boundary Commission for England to implement by order recommendations for changes to an area’s electoral arrangements.

I am aware of the specific case at the moment where such a statutory body, the Malvern Hills Trust, considers that the new warding arrangements established by an electoral review order in respect of Malvern Hills District Council is incompatible with its constitutional and governance arrangements as provided for in several private Acts dating back to 1884. It is understandably concerned that such changes might raise questions about the ongoing legality of its constitutional and governance arrangements, and it wishes for something that it can address itself in a timely way.

I fully understand why the Malvern Hills Trust might wish to be granted powers to alter the constitutional or governance arrangements to ensure that they remain lawful and relevant to changing circumstances. However, I regret that we cannot support the amendments to the Bill. While they have the intention to resolve a specific local constitutional issue, the amendments are of general application to any statutory body affected by an electoral review carried out under Part 3 of the 2009 Act. In a practical sense, it is difficult for us to estimate how many bodies may be affected and wish to pass orders of this sort, or the impact on parliamentary time in dealing with them.

As drafted, the amendments would allow for secondary legislation to make amendments to primary legislation using the negative resolution procedure—the lower level of parliamentary scrutiny—and we do not think that this is appropriate. If the amendments were redrafted so that the orders were subject to the affirmative procedure, the potential would remain for significant impact on parliamentary business and on getting vital government business done.

More fundamentally, we cannot accept that it is right or prudent for the Bill to contain provision to allow for non-governmental bodies to be able to make orders that would amend primary legislation, as is the intention of the amendments. That must rightly be the role of government Ministers, except in exceptional circumstances, as with the Local Government Boundary Commission for England.

The commission is a parliamentary body accountable to the Speaker’s Committee. Such powers are appropriate in the case of the commission, given its status and vital independent role in ensuring fairness and confidence in the local government electoral system. Even if the scope of the amendment were narrowed so that any order could be made only by the Secretary of State, I am afraid that we could not accept it. While I understand that the purpose is to have a provision of general application, the concept used of the statutory body seems to be unclear. For example, does the definition of a statutory body include a local authority? On the face of it, this seems to be the case. If this is so, introducing this new provision would potentially create—

[Lord Hunt of Kings Heath (Lab)]

My Lords, I understand the Minister’s response, which seems to come in heavy on what is a pretty small objective. If it is difficult to do in this way, what could her department do to sort it out?

[Baroness Scott of Bybrook (Con)]

If the noble Lord can wait one minute, I shall say what the Government are prepared to do.

For all these reasons, I ask the noble Baroness to withdraw her amendment—but the Government have been talking to senior officials of the trust to understand the issues that they face as a result of the electoral changes order. We have discussed various options that they can pursue, which include the Charity Commission making a scheme under Section 73 of the Charities Act 2011 and for the trust itself to pursue a private Bill to make the amendments that it thinks necessary. We are also exploring whether the Secretary of State has the vires to make an order in consequence of an electoral changes order, to amend or modify primary legislation, such as the Malvern Hills Act 1924. So we are working with the group. In realisation of that, I hope that the noble Baroness will withdraw her amendment.

[Baroness Stuart of Edgbaston (CB)]

My Lords, I am grateful to the Minister for her response and grateful that the department is pursuing ways of resolving the problem. In the light of that, I am content to withdraw the amendment.

--- Later in debate ---

The difficulty here—this is where I am slipping over into a future debate on the national development management plan—is that this area is currently an empty space in legislation. If the Minister is able to fill that empty space with clear indications that climate change will be at the heart of national planning legislation and policy, we will have achieved the aim of the amendment in the names of the noble Lord, Lord Ravensdale, and others, with which I wholeheartedly agree.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 179 and 271 in the name of the noble Lord, Lord Ravensdale, seek to introduce a duty for planning authorities to consider climate change when developing planning policy and in making planning application decisions by adding a “purpose of planning” provision to the Levelling-up and Regeneration Bill and a complementary duty in the Town and Country Planning Act 1990.

The Government recognise the great challenge of climate change and that the planning system must address this effectively. Through the Climate Change Act 2008, the Government have committed to reduce net emissions by at least 100% of 1990 levels by 2050. We have also committed to leaving the environment in a better state than we found it. We passed the Environment Act, which sets ambitious, legally binding, long-term targets to restore nature. The Government published their second environmental improvement plan in January this year, setting out the actions that will drive us towards reaching our long-term targets and goals.

Section 19(1A) of the Planning and Compulsory Purchase Act 2004 already sets out that local planning authorities must design their local plans

“to secure that the development and use of land in the local planning authority’s area contribute to the mitigation of, and adaptation to, climate change”.

This is restated in the Bill and is found in proposed new Section 15C of the 2004 Act, to be inserted by Schedule 7 to this Bill. Similar requirements are included for other types of plans, such as waste and mineral plans and neighbourhood plans.

Alongside this, the National Planning Policy Framework is clear that planning policies and decisions should support climate change mitigation and adaptation, and that plans should be prepared in line with the objectives and provisions of the Climate Change Act 2008. The framework also makes it clear that plans and decisions should contribute to and enhance the natural and local environment more broadly. As a matter of law, the framework must be taken into account when preparing the development plan and is a material consideration in planning decisions. Its effect on decisions will be enhanced through this Bill, through the provision made for a suite of national development management policies that will have statutory force.

More broadly, the National Planning Policy Frame- work couches the role of the planning system quite firmly in the terms of contributing to the achievement of sustainable development, recognising the environmental, social and economic dimensions of this and the inter- dependencies between them. It is not clear that a statutory purpose for planning would add to this in any meaningful way. We recognise that more can be achieved, though, and that is why the Government recently consulted on immediate changes to the framework relating to renewable energy and sought views on carbon assessments and other changes, which would strengthen the framework’s role in this vital area. A full review of the framework, taking the responses to this consultation into account, will take place following Royal Assent, and we will review the strategic objectives set out in the planning policy to ensure that they support the Government’s environmental targets under the Environment Act, the net zero strategy and the national adaptation programme.

A number of noble Lords mentioned the Skidmore review. We will publish a response to it very shortly. As committed to in the net zero strategy, we intend to do a fuller review of the NPPF to ensure that it contributes to climate change mitigation. Therefore, while I appreciate the spirit of these amendments, the Government do not feel able to support them, given the existing legislative obligations and current and future requirements in national policy, which will be given added force as a result of other provisions in this Bill.

Amendment 179A in the name of the noble Baroness, Lady Taylor of Stevenage, looks to define the purpose of planning and the meaning of “sustainable development”. The National Planning Policy Framework is clear that the purpose of the planning system is to contribute to the achievement of sustainable development. At a very high level, this can be summarised as meeting the needs of the present without compromising the ability of future generations to meet their own needs. As part of achieving the three overarching objectives of sustainable development—economic, social and environmental—the framework sets out policies on good design, sustainable transport, an integrated approach to the location of housing, economic uses, and community services and facilities. It recognises the importance to health, well-being and recreation that open spaces and green infrastructure provide. It also contains policies for how to achieve healthy, inclusive and safe places.

So that sustainable development is pursued in a positive way, at the heart of the framework is a presumption in favour of sustainable development. This means that all plans should promote a sustainable pattern of development that seeks to meet the needs of the area, align growth and infrastructure, improve the environment, and mitigate climate change and adapt to its effects. It also means that the strategic policies should provide for housing needs unless protected areas or assets of particular importance provide a strong reason for restricting development—for example, green-belt land. To reiterate, the framework must, as a matter of law, be taken into account when preparing development plans and is a material consideration in planning decisions.

[Baroness Pinnock (LD)]

I accept what the Minister said about the presumption in favour of sustainable development. She listed the things that have to be balanced, but the issue is how that balance takes place. In my experience as a local councillor, climate change is often at the bottom of that balance; economic development and the need for growth and jobs are at the top, and housing development is there, but climate change is much less important in the eyes of planning policies, planning inspectors and local plans. Can the Minister explain how the climate change element will be given greater importance and priority?

[Baroness Scott of Bybrook (Con)]

My Lords, to begin with, I do not agree that local authorities across the UK are not taking net zero and sustainability seriously. We know that local authorities across the country are making great strides towards our net-zero future. There are some brilliant examples of local action, innovation and excellence in this area, so I do not agree with the noble Baroness. When we get national planning policies that make these issues important nationally, councils will have to take them seriously and align their local plans with them. I would not want anybody to think that local government is not taking this seriously, because it certainly is and it is doing a huge amount to deliver our net-zero targets.

In December we published a consultation on updating the national planning policy, focusing largely on changes to housing policy that we intend to make in spring. This consultation closed on 2 March this year. We also sought initial views on some wider changes, which we will take forward into a fuller review of the framework. This fuller review will consider the scope to go further on a range of areas, including ensuring that the planning system capitalises on opportunities to support the natural environment, respond to climate change and deliver on the levelling up of economic opportunity—so there is more to come.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the Minister for her response so far. Can she pick up the points that the noble Lord, Lord Ravensdale, and I made about the piecemeal nature of how this works and the legislation that informs planning? The Minister herself set out some of the many pieces of legislation that come together to drive forward the statutory framework instilling this in planning, but at the moment that makes for a fairly piecemeal approach that requires drawing together. These amendments were tabled to enshrine in legislation the overarching purpose of building sustainability into the planning system.

I think everybody who has spoken has made the point that the National Planning Policy Framework is not statutory; it is guidance. Different planning inspectors will interpret the local authority’s interpretation of that guidance differently. As the noble Baroness, Lady Pinnock, and others outlined, sometimes the most ambitious authorities find themselves coming into conflict with their planning inspectors in this respect, because they do not accept the ambition that has been put into their local plan. Can the Minister pick up those points?

[Baroness Scott of Bybrook (Con)]

A number of pieces of legislation from a number of different areas of government and beyond have an effect on net zero, sustainability and climate change. That is going to happen. I know that this was brought up in our meetings with noble Lords prior to the Bill, and it is a complex area. I will once again try to show your Lordships how this all fits together to ensure that we are all working in the same direction and delivering what we know we want for climate change, net zero and sustainability.

[Baroness Boycott (CB)]

The Minister said that everyone is moving in the same direction. Since the big building companies such as Barratt and Taylor Wimpey have not come up, can she enlighten the House on what kinds of conversations she has had with such companies about their willingness to adopt a statutory policy about net zero into their building targets?

[Baroness Scott of Bybrook (Con)]

I have certainly had no conversations with those people, and I do not know whether the Housing Minister has. I will make sure to ask and find out. That is the whole idea of planning: if the policy requires it, the developers need to act within planning policy in order to develop.

I reiterate that the Government will be reviewing the strategic objectives set out in planning policy to ensure that they support the Government’s environmental targets under the Environment Act, net zero, and the national adaptation programme. This comes back to what the noble Baroness opposite was saying: are we joining it up? Yes, we are checking it with the Environment Act to make sure that we will deliver through the planning system everything that we agreed to in it.

While I appreciate the essence of this amendment, it is not one that the Government feel able to support, given the clear purposes for planning already set out in national policy.

[Lord Ravensdale (CB)]

My Lords, I thank noble Lords for a very illuminating debate. As the noble Baroness, Lady Jones, said, this is all occurring against the backdrop of the recently issued UN climate report. That highlighted all the progress that has been made, but we need to do more to move further, faster. As the noble Lord, Lord Hunt, said, the planning system is one of the most powerful levers that we can pull in that respect, so we need to make sure that we make the most of it.

The noble Baroness, Lady Taylor, set out well the aspirations of local authorities and councils in wanting to help with declared climate emergencies. It is all about the tools to enable them to do that. Her Amendment 179A is very closely aligned with mine, so I look forward to working with her.

The noble Lord, Lord Hunt, set out many of the wider benefits to health and levelling up from looking at the planning system. The Minister set out all the various mentions of climate change scattered throughout the legislation and the various framework documents, but I think that noble Lords have strongly made the case for aligning all this and pulling it together in the legislation in the form of a net-zero test. I hope that she will consider that as we move towards Report. I look forward to further discussion with her but, for now, I beg leave to withdraw.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 22nd March 2023 Lords Chamber

I hope I have given a good summary of what noble Lords have said. It has been a very interesting debate and we retain our concerns about the centralising tendency of this planning section of the Bill. I hope the Minister has heard the strength of feeling in the Committee on these matters and I look forward to hearing her comments.

[Baroness Scott of Bybrook (Con)]

My Lords, this might take a little bit of time. It was quite an in-depth and complicated group of amendments. I want to try and give it as much time as I can. I will go through Hansard, but if I miss anything out, I ask noble Lords to come back to me and I will make sure they get a Written Answer as soon as possible.

I want to start where the noble Baroness, Lady Taylor of Stevenage, started: why are we having a national development management policy in legislation? Why are we having this change? The case is fivefold. First, it will do what a number of noble Lords have said that it will not do—it will do completely the opposite. It will help local authorities produce swifter, slimmer plans by removing the need to set out generic issues of national importance. It will make those plans more locally relevant and easier for communities and other users to digest and to get involved in developing, through consultation and communications with local communities.

It will be easier for applicants to align their proposals with national and local policy requirements and, where they wish, to go beyond them. We expect that this will be particularly valuable for SMEs. It will provide greater assurances that important policy safeguards which apply nationally or to significant parts of England, such as protections for areas at risk of flooding, policy on climate change and policy to protect the green belt, will be upheld in statutory weight and applied quickly across the country, including when any changes are made. It will mean that this framework of common national policies can guide decisions, even if the local plan is significantly out of date and cannot be relied on. For example, where there is no up-to-date local plan, it will ensure that the national protections for things safeguarded solely through the planning policy—local wildlife sites, for example—have clear statutory status equivalent to an up-to-date plan. I hope that gives some context for what I am going to go through in relation to the amendments.

Amendment 183 in the name of the noble Baroness, Lady Taylor of Stevenage, seeks to require local authorities to review and update their development plan at least every five years. I reassure noble Lords that we recognise that if local plans are to be effective, they must be kept up to date. Currently, plans must be reviewed to assess whether they need updating at least once every five years and should then be updated as and when necessary. The Government made it clear in the policy paper published alongside the Bill introduction in May 2022 that we intend to require through regulation that authorities commence an update of their local plan every five years. They do not consider it; they do it. Although I fully understand the spirit of the amendment, these procedural matters have traditionally been addressed via regulations and it is our intention to maintain this approach. Consequently, we cannot support this amendment.

The noble Baroness, Lady Taylor of Stevenage, mentioned the right to be heard, or not heard, in an inquiry. No right of appearance at an examination applies only to the strategic-level spatial development strategies. This is already a well-established practice and the only spatial development strategy that exists at the moment is the London plan. That one is very specific.

I turn to my noble friend Lord Young of Cookham’s Amendments 184A and 187B, which aim to ensure that decisions on planning applications are taken in line with an up-to-date plan, which is defined as one less than five years old. As previously mentioned, we know that, for local plans to be effective, they must be kept up to date. Currently, plans must be reviewed to assess whether they need updating every five years, and they should then be updated as necessary. As I said, we will replace the current review requirement, which is a source of confusion and argument, with a new, clearer requirement in regulation for authorities to commence an update of their local plan every five years. However, it is important that we do not create in law a cliff edge that forces important aspects of plans to be out of date for decision-making purposes just because they are more than five years old. This would, for example, very considerably weaken green-belt protections.

I make it clear to noble Lords that we are retaining the current provision that gives precedence to the most up-to-date development plan policy, should conflicts occur. For example, where the local plan is out of date but a more recently approved neighbourhood plan is in place, the latter would take precedence, which I think is good. I fully understand the intention behind these amendments—they would certainly focus authorities’ minds on plan-making—but I believe that our legislation and policy provisions for keeping plans up to date strike a better balance. As a result, we do not feel we can support these amendments.

My noble friend Lord Young of Cookham also asked what happens if a local authority does not produce a local plan. The Bill retains and updates local plan intervention powers, which have been an important safety net to enable the Secretary of State to take action in certain circumstances in order to ensure that communities can benefit from a plan-led approach to growth.

My noble friends Lord Lansley and Lord Young of Cookham asked about local plans and whether government reforms would close what was referred to as a “loophole”. We intend to introduce this requirement for local authorities to commence the update of their local plans at least every five years, which will close that loophole in the future.

The question from the noble Baroness, Lady Pinnock, on the important issue of the five-year housing supply, probably relates to this group. To incentivise plan production further and ensure that newly produced plans are not undermined, we have made clear our intention to remove the requirements for local authorities to maintain a rolling five-year supply of deliverable land for housing where their plan is up to date—that is, adopted within the past five years. So, carrot and stick.

I move now to noble friend Lord Lansley’s Amendment 185, which tests the Government’s rationale for inserting “strongly” into the new decision-making test for planning applications. This is an important reform that seeks to provide greater certainty in decision-making, so I welcome the opportunity to explain our logic behind the change. Clause 86 reforms decision-making to strengthen the role of the development plan in practice. This includes strategic plans such as the London plan, as well as local plans and neighbourhood plans. Planning application decisions would be able to depart from the development plan and any national development management policies only where

“material considerations strongly indicate otherwise”.

It would no longer be enough for those other considerations merely to “indicate” otherwise.

Simply put, this will support the plan-led system by making it harder for planning decisions not to accord with the development plan and the national development management policies. The bar for developers will be higher if they wish to argue at appeal that their proposals should still gain planning permission even though they do not accord with the development plan and the relevant national development management policies. As a result, the changes are likely to reduce the number of planning appeals that local authorities face and the number of unanticipated developments that communities face on their doorsteps.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

I am sorry; I do not want to try the Minister’s patience, but we are not understanding how the various things sit together—the NPPF and the NDMPs. It is not quite clear to me how that will work, and it will make life very difficult for planning inspectors. We have talked before about a meeting to explain some of this in more detail, and that would be extremely helpful to those of us who are considering the Bill closely. If we could get a better understanding of that, it would be very helpful.

[Baroness Scott of Bybrook (Con)]

I am really happy to do that, because it is complex; there are a lot of acronyms and what have you. I do not think that this is the time of night to be discussing detail, so I am happy to put together a meeting as soon as possible, and we will go through it in detail.

I turn now to Amendment 189, also in the name of the noble Baroness, Lady Hayman of Ullock, which would allow Parliament to make national development management policies itself. Like national planning policy made at present through the National Planning Policy Framework, national development management policies will serve a broad purpose and will sit alongside policies in locally produced plans as a starting point in considering the suitability of development proposals. They will carry forward the role that successive Governments have played since the 1940s in setting high-level national policy that influences plans and decisions. This is a key function of government, which would be undermined by the creation of a dual-power system, as this amendment seeks to do. An effective planning system cannot be achieved if Ministers and Parliament could create contradictory policies by both having the vires to do so. Such a role for Parliament in planning has not been previously proposed, and I am afraid that it is not one that we can support.

Amendment 190, also in the name of the noble Baroness, would impose a legislative restriction on setting fixed standards through national development management policies, while retaining an ability for those policies to set floors which could be exceeded. Unlike building regulations, national planning policies are not used to set specific standards in most cases. Nevertheless, I understand the concern behind the amendment: that national development could, potentially, be used to constrain what locally produced plans are able to do.

The question about how national development management policies are to be used is one that we have consulted on recently. Through that, we were clear that our intention is that they will address planning considerations that apply regularly in decision-making across the country, such as general policies for conserving heritage assets and preventing inappropriate development, including on belts and in areas of high flood risk—the types of policy already contained in the National Planning Policy Framework. Our consultation also said that we were minded to retain the scope for optional technical standards to be set locally through plans so that local planning authorities can go above minimum building standards. The responses to the consultation are being assessed at present, as noble Lords know.

More broadly, it is important that we do not impose restrictions on the national development management policies, which could prevent sensible use of them. It may be appropriate to set absolute standards in one or two instances for reasons of consistency or to prevent harm—for example, in relation to pollution limits. This is best addressed through policy on a case-by-case basis rather than blanket restrictions in legislation. For these reasons, we do not think it necessary or appropriate to impose specific requirements or limitations of the sort that this amendment would entail, so I hope the noble Baroness will understand that we are not able to support it.

I move to Amendment 191, which seeks to probe the direction and modification powers of the Secretary of State to revoke and modify national development management policies. The power to revoke and modify the policies is bound by the same requirements as those to make them, including those on consultation. We recognise that, once the first suite of those policies is published, there must also be a clear legal framework for modifying and revoking them. Like the National Planning Policy Framework, national development management policies will need to evolve over time, reflecting new government priorities and changing economic, social and environmental challenges, as well as trends in planning practice. That is why the Bill gives the Secretary of State the power to revoke and modify these policies; without this power, they would become too rigid and potentially ineffective.

However, I would like to reassure noble Lords that the power to revoke and modify the policies will not be used lightly. It is not a mechanism to remove long-standing national planning policies, such as protecting the green belt or tackling flood risk. We want to see consultation, engagement and debate across the sector about potential changes to the policies, in the same way as happens now with the National Planning Policy Framework. Given that any revocation and modification must follow the same procedural requirements as the creation of the new national development management policies, we feel that this amendment is unnecessary and, therefore, not one we can support.

I turn to Amendments 191A and 191B in the names of the noble Baronesses, Lady Thornhill, Lady Jones of Moulsecoomb and Lady Taylor of Stevenage, and the noble Lord, Lord Shipley, which seek to change the requirements for making national development management policies so that they more clearly mirror those for national policy statements. National policy statements are used to set out the policy for nationally significant infrastructure projects—planning decisions that are made by Ministers. National development management policies will serve a broader purpose than this and will sit alongside policies in locally produced plans when local decision-makers consider the suitability of development proposals. As previously mentioned, they will carry forward the role that successive Governments have played since the 1940s in setting high-level national policy that influences plans and decisions.

Clause 87 already imposes an obligation on the Secretary of State to ensure that consultation and participation take place as appropriate, and our recent consultation on the future of the NPPF and the NDMP confirms that public consultation will be carried out before they are designated.

The requirements in this Bill set out that the Secretary of State must explicitly consider public consultation when determining what consultation is appropriate. This is similar to the approach for national policy statements, which also require consultation as the Secretary of State thinks appropriate, although they do not include explicit consideration of “public” consultation as in the existing clause.

I acknowledge that the existing clause uses the phrase “if any” in relation to consultation. It includes this as there may be rare occasions where it would be appropriate not to consult on a draft national development management policy, such as if urgent changes are needed in the national interest. For example, during the pandemic, the Secretary of State was able to issue an urgent Written Ministerial Statement in July 2020 to temporarily change national planning policy so that theatres, concert halls and live music performance venues could be given a degree of protection where they were temporarily vacant due to Covid-19 business disruption.

The changes that we discussed earlier to the decision-making test in Clause 86, which strengthen the weight given to the development plan over material considerations, mean that such a policy would have had significantly less weight in planning decisions today, unless it was made a national development management policy.

I hope I have reassured noble Lords that we have developed a proportionate framework for creating national development management policies, and explained why we have taken a different approach from that for national policy statements, meaning that we do not feel able to accept this amendment.

Amendment 196, in the name of the noble Baroness, Lady Hayman of Ullock, would require the Secretary of State to publish a strategy for public consultation and parliamentary scrutiny of national development management policies within 120 days of the Bill’s passage. As I have set out, the Bill makes appropriate provision for consultation, which is reinforced by the clear commitment in our recent consultation that we will consult on these policies. Against this backdrop, we believe that a legal obligation to publish a strategy for consultation is unnecessary, and so this is an amendment that we feel unable to support.

I turn next to Amendment 194, also in the name of the noble Baroness, Lady Hayman of Ullock, which would require the Department for Levelling Up, Housing and Communities to publish annual reports reflecting the cost of producing and maintaining national development management policies and any support given to local planning authorities. I reassure the noble Baroness that national development management policies will not create a new financial burden for local planning authorities or central government. The cost of producing national development management policies as a function of the Secretary of State will fall to the Department for Levelling Up, Housing and Communities. We expect that the cost of preparing and maintaining national development management policies—in Civil Service resource and specialist expertise—will be similar to that for producing and maintaining the National Planning Policy Framework. We will also ensure that the Planning Advisory Service, which my department funds, provides local planning authorities with training and support to help manage the practical transition to using national development management policies when they are making decisions.

Against these upfront costs, local planning authorities will financially benefit from national development management policies, as they will not need to develop or justify these policies themselves when their plans are examined by the Planning Inspectorate. As our impact assessment makes clear, national development management policies will provide greater certainty to developers and communities, potentially providing significant savings for businesses. Our impact assessment estimates that the benefits of increasing certainty in the planning system due to the measures in the Bill will be just over £2.8 billion over a 10-year appraisal period. For the reasons that I have set out, while I thank the noble Baroness for her amendment, it is not one that I am able to support.

Amendment 216, in the name of the noble Baroness, Lady Taylor of Stevenage, and Amendment 220, in the name of the noble Baroness, Lady Hayman of Ullock, would remove the requirement for local plans to be consistent with national development management policies and prevent such a requirement in regulations. These amendments would fundamentally diminish the ability of our reforms to make local plans easier to prepare and to create more certainty for applicants, communities and local planning authorities. Through the Bill we are strengthening the role of the development plan in decision-making by changing Section 38 of the Planning and Compulsory Purchase Act 2004 so that planning applications must be decided in accordance with the development plan and the national development management policies unless material considerations strongly indicate otherwise.

--- Later in debate ---

[Lord Lansley (Con)]

I hope my noble friend will forgive me for interrupting. I understand the point she is making about Amendment 216, and why she is resisting removing the idea that local plans must not be inconsistent with national development management policies, but it also says, “or (in substance) repeat”.

I am trying to understand. Let us take the chapter in the NPPF on green belt. The first part is about plan-making for the green belt, and the second part is about proposals coming forward within green belt land and the criteria that should be applied as to whether or not an application would be accepted. On that latter part, is my noble friend saying that the local plan cannot repeat that—that it must therefore refer to it but not repeat it? Is that the point she is making?

[Baroness Scott of Bybrook (Con)]

The whole idea of moving national policies away from local policies is that we do not have to repeat them. I will reflect on what my noble friend says about how it is referred if an area has a particular issue with something such as the green belt and come back to him, because I think he has a point.

Amendment 221, in the name of the noble Lord, Lord Best, seeks to require older people’s housing needs assessments to be included in the evidence for local plans and would require local authorities to consider the needs for older people’s housing when preparing such plans. While I entirely understand the sentiment behind this amendment, the proposed approach is not needed. National policy already sets strong expectations, and we recently consulted on strengthening this further. The existing National Planning Policy Framework makes clear that the size, type and tenure of housing needed for different groups in the community, including older people, should be assessed and reflected in planning policies. In 2019, we also published guidance to help local authorities implement the policies that can deliver on this expectation.

I also make it clear to noble Lords that, to further improve the diversity of housing options available to older people and to boost the supply of specialist elderly accommodation, we have proposed to strengthen the existing policy by adding a specific expectation that, when ensuring the needs of older people are met, particular regard is given to retirement housing, housing with care and care homes. We know these are important types of housing that can help support our ageing population.

Furthermore, there is already a provision in the Bill that sets out that the Secretary of State must issue guidance for local planning authorities on how their local plan and any supplementary plans, taken as a whole, should address housing needs that result from old age or disability. These are strong legislative and policy safeguards which should ensure that the needs of older people are taken fully into account. For that reason, I hope the noble Lord, Lord Best, will understand why we do not support this amendment.

I note that there is a question from my noble friend Lord Young and the noble Lord, Lord Best, on the task force. I will go back to the department and ask for an update. I can assure noble Lords that I will give them one in the next couple of days—certainly before Recess or Report.

I hope I have said enough to enable the noble Baroness, Lady Taylor of Stevenage, to withdraw her Amendment 183 and for the other amendments in this group not to be moved when reached.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 27th March 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, this has been an excellent debate on the conflicts that will inevitably exist between the national development management policies and local plans. I thank my noble friend for pointing out in great detail the difficulties that may arise.

At the heart of this is the fact that, at the moment, we have no idea what will be included in the NDMP. Frankly, that is fairly critical as to whether or not there will be conflict. It will depend on whether these will be very high-level national policies, as in the current National Planning Policy Framework. It will depend on whether they will set standards, as the noble Baroness, Lady Bennett, has suggested. It will depend on whether they will simply reflect what is currently national planning policy but put it into a statutory situation for local planning authorities and local councils to agree to.

In Committee on the Bill last Wednesday, the Minister suggested that we would have a round table to try to tease out the detail and meaning behind the Government’s proposals in the Bill. It is absolutely vital that that happens as soon as possible. Throughout our debate on the plan-led process, it became clear that, if the intentions of the Government for the national development management policies are not understood, there will be conflict—as this group of amendments makes clear—around the degree to which local people have power and influence over local plans at this stage, and around the degree to which planning inspectors who are set to look at the local plans that are drawn up have power and influence over local plans. That is why it is really important that we hear from the Minister as soon as possible. What sort of policies are going to be included in NDMPs? At the moment, it is a fairly blank screen.

I have only one other thing to say, which has been raised by my noble friend. New subsection (3) inserted by Clause 87, which is about revoking or changing the NDMP, says that

“the Secretary of State must ensure that such consultation with, and participation by, the public or any bodies or persons (if any) as the Secretary of State thinks appropriate takes place.”

I hope the Minister will be willing to take away “if any” in that clause and reflect how important it is for local plans to be accepted by local residents. That means that the NDMP has to be acceptable to and accepted by local residents, as it is going to dictate the content or the direction of travel of local plan decision-making. There is a lot that hangs on the content of the NDMP, so I hope that when the Minister replies she is able to give us some hints as to what it will be.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I begin by addressing Amendments 185A and 192 in the names of the noble Baronesses, Lady Taylor of Stevenage and Lady Hayman of Ullock, which seek to remove or reverse the precedence given to national development management policies over the development plan in planning decisions where there is a conflict between them. I welcome this further opportunity to explain the objectives behind this aspect of the Bill.

As I indicated in our debate on this issue last week, national development management policies are intended to bring greater clarity to the important role that national policy already plays in decisions on planning applications. A clear and concise set of policies with statutory weight will make sure that important safeguards, such as protections for designated landscapes and heritage assets, are taken fully into account, without these basic matters having to be repeated in local plans to give them the statutory recognition they deserve.

These amendments deal specifically with what to do in the event that there is a conflict between national development management policies and the development plan when a planning decision must be made in accordance with both. The amendments would remove the certainty created by the Bill that up-to-date national policies on important issues, such as climate change or flood protection, would have precedence over plans that may well have been made a long time ago.

Some local plans are woefully out of date; for example, some date back to the 1990s. Only around 40% of local planning authorities adopted a local plan within the last five years. It would, in our view, be wrong to say that, in the event of a conflict, national policy does not take precedence over out-of-date policies in these plans, which is what these amendments would achieve. This point is particularly crucial because we wish to use national policies to drive higher standards, especially on good design, the environment and tackling climate change, and it is important that these take precedence in the event of a conflict with out-of-date policies in plans.

Nevertheless, I expect such conflicts to be very limited in future as we are making it easier to produce plans and keep them up to date, and because the Bill makes sure that new plans will be drawn up consistently with national policies, including the new national development management policies. Given the important role that national development management policies will perform and their benefits in providing certainty, I hope noble Lords understand that we are not able to support this amendment. I agree with my noble friend Lord Young of Cookham that few, if any, conflicts should arise under this new way of working.

Amendment 186 in the name of my noble friend Lord Lansley would give national development management policies precedence over the development plan only where there was a “significant” conflict between the relevant policies. Where a local policy and national development management policy are both relevant considerations but not in any conflict, it will still be for the decision-maker to decide how much weight is afforded to these policies based on their relevance to the proposed development. Our clause sets out only what should be done in the event of a conflict between policies where they contradict one another. My noble friend brought up the green belt. Policies controlling development in the green belt are standard nationally and will be set out in the NDMPs. Local plans could—will—define the boundaries of the green belt, as they do now, so I do not think there should be any conflict between those two issues.

We have explained why we believe it is important that NDMPs are prioritised in the event of such a conflict, and we expect such conflicts to be limited, as I have said.

[Lord Lansley (Con)]

I fear I was not clear enough about what I asked about last week and hoped to hear more about. Chapter 13 of the NPPF describes the green-belt policies. It forms two parts: the first relates to plan-making and the second, from new paragraph 149 onwards, to how these policies should be applied in relation to development in the green belt and the determination of planning applications. My assumption has been—partly answering the point made by the noble Baroness, Lady Pinnock, that we do not know what the NDMPs are; this is a good illustration—that the latter will be NDMPs, the former will not. There will continue to be guidance in the NPPF. If I am wrong, I would be glad to be advised; otherwise, it would be helpful to understand how these things divide up.

[Baroness Scott of Bybrook (Con)]

I am sorry. Obviously, I got the issue slightly wrong in the last debate. I thought that we were talking about a conflict between two green-belt policies. I will go back to Hansard. Obviously, my answer is not relevant, therefore, but I will check that out and give my noble friend a proper answer in writing. I think that is the best way to do it, as we got it wrong.

Additionally, the suggested wording of Amendment 186 would also generate uncertainty and associated litigation, because the term “significant” would be open to considerable interpretation. Therefore, as the amendment would cut across the greater certainty which we hope to bring to planning decisions, it is not one that we feel able to accept.

My noble friend Lord Lansley also brought up the decision-making role of the NDMPs being constrained by matters not covered by an up-to-date plan. NDMPs will focus on matters of national importance that have general application. This will enable the local plans to be produced more quickly so that they no longer move to repeat the things that are in the national plans. It is important that there should not be—as there is now—this duplication in plans. I think this makes it simpler and less open to conflict.

Amendment 187 in the name of the noble Baroness, Lady Hayman of Ullock, which relates to higher-tier authorities with planning powers, would give precedence to the development plan over national development management policies, where a mayor or combined authority has strategic planning powers, or where a group of local planning authorities have produced a joint spatial development strategy.

As I have set out, we believe that there are good reasons why, in certain cases, national development management policies may need to take precedence over those in the development plan. National development management policies will underpin, with statutory weight, key national policy protections in cases where plan policies, including spatial development strategies, become out-of-date.

I note that the Secretary of State already has powers to direct amendments that must be made to draft versions of spatial development strategies before they are published, where he thinks it is expedient to do so, to avoid any inconsistency with current national policies. These powers have been used sparingly in the past, although they have been used where important national policies were duplicated but inappropriately amended.

For these reasons, we believe it is right that national development management policies would be able to override the development plan in those cases where it is absolutely necessary, even where there is a strategic plan-making body in place. Thus, this is not an amendment that we feel able to support.

I think I answered my noble friend Lord Young of Cookham in a previous debate, but I will repeat what I said for those Members who were not here last time. Amendment 187B in the name of my noble friend Lord Young of Cookham aims to ensure that decisions on planning applications are taken in line with an up-to-date plan, with an up-to-date plan being defined as less than five years old.

As previously mentioned, we know that, for local plans to be effective, they must be kept up to date. Currently, plans must be reviewed to assess whether they need updating at least once every five years and they should then be updated as necessary. We intend to replace this current review requirement, which is a source of confusion and argument. It has been described in this place as a loophole and I have some sympathy for that characterisation.

In the Bill policy paper published last May, we committed to set out a new, clearer requirement in regulations for authorities to commence an update of their local plans every five years. It is, however, important that we do not create a cliff edge in law that forces important aspects of plans to be out of date for decision-making purposes just because they are more than five years old; this would, for example, have the effect of weakening green belt protections very considerably.

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[Lord Lansley (Con)]

I am sorry to interrupt again, but my point relates to having an up-to-date plan. My noble friend has made clear her rather compelling points about the national development management policies taking precedence over an out-of-date plan but, if there is in place an up-to-date plan that works and is both recent and relevant, why should an NDMP seek primacy over an up-to-date local plan?

[Baroness Scott of Bybrook (Con)]

What I am trying to explain to noble Lords is that there should be no conflict because they deal with different things. The national development management policies are likely to cover common issues that are already being dealt with in national planning policies, such as the green belt, areas at risk of flooding and heritage areas. They would not impinge on local policies for shaping development, nor would they direct what land should be allocated for a particular area. They are totally different things. Looking to the future, therefore, I cannot see what conflict there would be.

[Baroness Pinnock (LD)]

I just want to explore this further, if the Minister will agree to it. The question from the noble Lord, Lord Lansley, is at the heart of this issue. Where there is an existing, up-to-date local plan, why should that not have primacy over the national development management policies, because it will have taken cognisance of those in developing the local plan?

Can the Minister help me here? In the NPPF, there are 16 national planning policies. Does she anticipate that those will be translated into the NDMPs? It is at that level that we need to understand this because, when it comes to local plans, the NPPF is part of them; as the Minister rightly argued, it is put into local plans. But then they are then interpreted locally, for local reasons, which is why I am concerned about an NDMP having primacy over up-to-date local plans.

[Baroness Scott of Bybrook (Con)]

The national development management policies are dealing with the top-level issues. The noble Baroness is absolutely right that we are out to review those issues of consultation. These issues have come back. We have not got the list yet, but your local plan will accept those as being there and will then deal with issues that are local. As my noble friend said, there will be issues such as the green belt, but they will take into account the national policies on green belt and deal only with very localised policies on it, so there should be no conflict. I do not see where that conflict can be. But we are going to have a meeting on this to further discuss and probably have, not arguments, but strong debates—those are the words—on these issues.

[Lord Scriven (LD)]

My Lords, I am more confused than I was when the debate started. If there is no conflict, what is the point in having the clause?

[Baroness Scott of Bybrook (Con)]

The point is to make clear that there is no conflict.

Amendment 193, tabled by the noble Baroness, Lady Hayman of Ullock, would require the Secretary of State to

“lay a Statement before both Houses of Parliament”

if there is

“a conflict between the national development management policy and a development plan”.

As I have noted, actual instances of conflict between national development plan policies and those being included in the plans should be relatively unusual, as the Bill makes clear that planning policies should avoid such conflicts—something that will, in cases of doubt, be assessed transparently through public examination of those emerging plans as they are made. Should any conflicts arise when considering individual planning applications or appeals—for example, where the local plan has become very out of date—this will need to be made very clear through the report on the application, or the evidence before the planning inspector. These procedures will ensure transparency for communities. At the same time, it would be impossible for the Government to track every instance of such a conflict arising and to report to Parliament on it. Therefore, I hope that the noble Baroness, Lady Hayman, will understand that this is not an amendment we can support.

Amendment 195, also tabled by the noble Baroness, Lady Hayman of Ullock, would require the Secretary of State to consult county combined authorities if it is deemed that there is a conflict between the national development management policy and a development plan. As I have already explained, where any inconsistencies arise between an emerging plan and the national development management policies, these will be evident during the plan preparation and examination. We expect that any county combined authority will be engaged in this process at the local level. There is no need for an additional statutory requirement to be placed on the Secretary of State in the way the amendment would do.

I have also pointed out the impracticality of applying a requirement of this nature in relation to any inconsistencies which might arise in the handling of individual planning applications, the great majority of which will not be cases that the Government are party to. Consequently, I hope that the noble Baroness will understand that we are unable to support this amendment. I hope that I have said enough to enable the noble Baroness, Lady Taylor of Stevenage, to withdraw her Amendment 185 and for other amendments in this group not to be moved as they are reached.

The noble Baroness, Lady Thornhill, asked what intervention powers the Government will have to get involved. We think that local authorities know their area best and, unequivocally, are best placed to produce their own local plans. However, if local plans are not produced or are failing, or if something is absolutely wrong with that plan, the Secretary of State will retain the power to intervene if necessary.

[Baroness Taylor of Stevenage (Lab)]

My Lords, one of the problems that those of us who have been very involved in the planning system are having is that we cannot see how this all fits together and works in practice. In her last statement, the Minister said that local authorities know their area best, and those who have been involved in this system would certainly agree with that but, as we go through the process of looking closely at the Bill, it is getting more rather than less confusing.

We had a good discussion and some key issues have emerged, first around how little detail there is about the hierarchy of this new planning process. I accept that the Minister has offered to have a round table with us to discuss what that structure looks like and to listen to more of our concerns about how this is going to work in practice. There was a great deal of consideration of the issues around the strategic development plans for these new CCAs. A lot of work will go into the joint working on those strategic development plans, with their constituent members and partners. They reflect the significant new powers that they will have over transport, environment and issues relating to some other public bodies—potentially health, policing and so on. Some of us are struggling to understand why, after all the work that has gone in, there may be an intervention from the Government via the NDMPs to say that the planning process has to be intervened in or overturned. That is also of concern.

Another element was the consideration of whether this would be different depending on whether an up-to-date plan is in place or not. That is a key consideration and I accept the point from the noble Lord, Lord Lansley, that it may make a great difference as we go through the consideration of how these plans will work and what the review requirements are. We made the point in previous discussions, and I will make it again, that the big difference between the NPPF and the new NDMP is that the NPPF is guidance. As we have discussed previously, it can be flexible to local needs and often is, whereas the NDMP is going to be statutory. For example, how would it deal with applications made within the green belt? These are some of the practical issues with which some of us are wrestling, and I hope that a round-table discussion helps clear some of that up.

The noble Lord, Lord Lansley, gave a very clear exposition of how he sees the word “significant” making a difference. I appreciate that. Of course, lawyers will be lawyers—I know there are some in this Chamber, so I will not take this line too far—but they embrace any words that can be interpreted in different ways, as we know. Those of us who have been in legal battles around these things before have the scars to show for it. My concern about that amendment was simply that it would result in a great deal of litigation.

We were discussing the planning powers of constituent local authorities and, of course, the role of these new CCAs will be very different from the role of either district councils, when they are doing their local plan, or county planning authorities, when they do things such as mineral and waste plans. I think we need some careful consideration of how those much more strategic plans will relate to NDMPs.

I have commented on the point from the noble Lord, Lord Lansley, about up-to-date plans; I think, where we have one, they should take precedence. The Minister also talked about how, if the neighbourhood plan is more up to date than the local plan, the neighbourhood plan would take precedence. By logic then, if the local plan is more up to date than the NDMP and there is a conflict between them, the local plan should take precedence. I cannot see why one would apply and the other would not.

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[Baroness Pinnock (LD)]

My experience is that that was not quite how it worked. In West Yorkshire, Harrogate—which is just north of Leeds—was included, even though it is in North Yorkshire, because it is part of what they call the “golden triangle”. I think it is a challenge, and I hope the Government will just decide which boundaries they use—I presume it will be local authority boundaries, because that makes sense—and the others are just part of a negotiation.

Those are the key points I wanted to make. It is an interesting group to think about how it all works. I notice in the schedule it says that spatial strategies have to be mindful of, and consistent with, the national development management plans. I would like to hear from the Minister how spatial strategies will operate across a wider region, because if you are talking about transport—the noble Lord, Lord Lansley, picked up on this—you need to think in a wider area than just a small combined authority area.

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments concerns strategic planning and spatial development strategies. As these are to date a very rare form of plan, it might be useful to set out some background. The Government recognise that it is often desirable to plan over areas, as we have just heard, wider than a single planning authority in order to properly address the strategic and cross-boundary issues that have been brought up in this debate so far. However, it is important to stress that a spatial development strategy cannot allocate sites; instead, it can set broad indications of how much and what type of development should go where.

Once a spatial development strategy is adopted, local plans within its area must be in general conformity with it; that is, they must generally follow that strategy and its policies. Most of us will not actually have dealt with a spatial development strategy, because only one exists at the moment, and that is in London, which the mayor refers to as the London Plan. Other combined authorities are able to request the equivalent spatial development strategy powers as part of their devolution agreement. Three areas have done so already—Greater Manchester, Liverpool City Region, and the West of England, as noble Lords have heard—but for various reasons, none has produced a strategy as yet. Moreover, the Government have agreed to give a spatial development strategy power to the West Yorkshire Mayoral Combined Authority.

Through the Bill, we are extending the powers to produce a spatial development strategy, on a voluntary basis, to other local planning authorities, as we are aware that in other parts of the country—such as Hertfordshire, Essex, Leicestershire and around Nottingham—some of them have already sought to progress strategic plans over recent years. The Government would like to support and enable these efforts at more strategic planning.

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[Lord Deben (Con)]

My noble friend has just said how much she wants the counties to be involved, but why can they not just be part of it? I do not understand this—it seems that there is no reason for it, except that it is in the Bill.

[Baroness Scott of Bybrook (Con)]

I disagree. The district councils, about which we have been hearing, are the planning authorities in those areas, and the county council is not. So it is important that we make sure that this is district-led but that the county has the important role of statutory consultee. But that will be different in different counties, depending on whether they are unitary authorities; in which case, they will of course be the planning authority and therefore can lead on this spatial strategy.

[Lord Deben (Con)]

The county authority is the mineral planning authority, so how can we talk about spatial planning if we exclude the things for which the county authority is a planning authority. Making the distinction between being consulted—having a consultant role—and being part of the decision-making seems to me to be a false distinction. As the planning authority for minerals and similar things, it has to be part of such a spatial plan. I just do not understand the distinction.

[Baroness Scott of Bybrook (Con)]

I do not think that there is a distinction. They can be, and will be, part of it. I am sure that they will be part of whether that particular geographic area or group of councils will decide to go to a spatial strategy in the first place—that is how local government works. But I will give it some more thought; I am sure that we will come back to the issue on Report.

[Lord Lansley (Con)]

Before my noble friend moves on from this point about counties, can she confirm whether, when she says that they are a statutory consultee, she is referring to new Section 15A), to be inserted by Schedule 7, where they are consulted after the preparation of a draft, which is then deposited with various people? That is substantively different from securing the advice and participation of counties, related districts and others in the preparation of that draft spatial development strategy.

[Baroness Scott of Bybrook (Con)]

I will take the point back and consider it further, because some important issues have been brought up. I will make sure that, having given it some thought, we will discuss it further before Report.

[Baroness Taylor of Stevenage (Lab)]

Before we move on from this topic, I will add another observation: the county members are the ones that have the places on the combined authority. The districts do not have voting rights on those combined authorities. So I do not understand how it will work if the counties will not be included and cannot make decisions over planning when they are the constituent members with the powers to put the plan through. I think that this needs a little more thinking through.

[Baroness Scott of Bybrook (Con)]

I quite agree, and that is why I will take the point back and think further on it. As a county person myself, I have a lot of sympathy.

To make sure that our plan for a joint spatial development strategy happens, we are giving county councils the formal status of statutory consultee, as I said, so they can bring forward their expertise, particularly on matters relating to transport, highways, flood risk management, education, and minerals and waste, as noble Lords have said. Planning inspectors examining a joint spatial development strategy will want to see evidence that the work on these key issues has been done, and to make sure that any views expressed by the county council have been properly taken into consideration.

Amendment 199, tabled by the noble Baroness, Lady Taylor of Stevenage, would leave out new Section 15A(2)(b), which is inserted by Schedule 7. This would enable local planning authorities within a combined authority to be eligible to produce a joint spatial development strategy. In an area with elected mayors, we believe that it is vital that the mayor is formally involved in the production of a spatial development strategy to provide clear and accountable leadership for it. That is why the authorities within a combined authority should not be eligible to produce a joint spatial development strategy. In such cases, the mayor, with the support of the member authorities, can approach the Government to ask for the spatial development strategy powers to be conferred on them as part of their devolution deal. Obviously, we do not want to see competing spatial development strategies in any area.

Amendment 202 in the name of the noble Baroness, Lady Taylor of Stevenage, would extend the list of groups that local planning authorities must consult to include community groups. Although I understand the reasons for this, the list of bodies in new Section 15AB(3) that participating authorities should consider sending a draft joint spatial development strategy to is already comprehensive and can reasonably be assumed to include most community organisations. It is not, however, an exhaustive list, and authorities are free to send drafts to whichever organisations they feel necessary.

The noble Baroness’s Amendments 203 and 204 would give people a right to be heard at an examination in public in relation to a joint spatial development plan. The current procedure for the examination of a spatial development strategy is now well established and, although it is true that, unlike for local plans, there is no formal right to appear in person, we are confident that the current arrangements are fair, proportionate and effective. Experience shows that planning inspectors ensure that a broad range of relevant interests and views are heard at examinations for spatial development strategies.

The final amendment in this group in the name of the noble Baroness is Amendment 206. This would introduce a new clause mandating a duty to co-operate where no joint spatial development strategy exists. Unfortunately, the duty to co-operate is widely agreed to have been an ineffective mechanism for achieving co-operation. It has been criticised as an inflexible and burdensome bureaucratic exercise, causing significant delays to the production of local plans. We intend to replace the duty with a more flexible policy requirement within the revised National Planning Policy Framework, providing local planning authorities with greater flexibility.

Clause 93 introduces a new requirement to assist with plan making to ensure that the key stakeholders whose involvement is vital to production of plans, including the delivery and planning of infrastructure, are required to be involved. This places a requirement on specific bodies with public functions—an example would be Historic England—to assist in the plan-making process if requested by a plan-making authority. Taken together, these measures mean that there is no need to revert to the duty to co-operate in any circumstances.

[Baroness Hayman of Ullock (Lab)]

How does the Minister see the role of town and parish councils within all this? Clearly, they will have an interest, yet they are not mentioned anywhere.

[Baroness Scott of Bybrook (Con)]

I foresee that their views would go up through the stages, and any good district council would ask for their views. Also, of course, they would probably be involved in any neighbourhood planning that is happening as well, so those plans would also move on up into it.

Amendment 200A, tabled by the noble Baroness, Lady Hayman of Ullock, addresses the provision of sites for health and social care within a joint spatial development strategy. There is already broad provision for considering these needs in a joint spatial development strategy, through new Sections 15AA(1) and (2) which the Bill will insert into the Planning and Compulsory Purchase Act 2004. These provisions are written deliberately broadly to enable planning authorities to consider the full range of land use and infrastructure requirements that are important to an area. I hope, therefore, that the noble Baroness will accept that the current wording in the Bill continues to enable the consideration of issues relating to the provision of health and care services in an area.

Amendment 200, in the name of my noble friend Lord Lansley, is intended to ensure that any joint spatial development strategy includes provision for employment sites which are of strategic importance for the economic development of an area. I can reassure my noble friend that new Section 15AA(1) already provides that a joint SDS may include policy relating to

“the development and use of land in the joint strategy area”.

This is a flexible provision that allows the planning authorities to include whatever policies they feel are necessary, with some caveats relating to those policies being of strategic importance and relating to the characteristics or circumstances of the area. For this reason, I do not think that we need a more specific provision at this point.

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[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords for a good debate on these topics relating to spatial planning. They are very important issues, and this is a key part of the Bill.

There are some key themes that have emerged as part of this discussion. The first is the integration of plans and timetables and how important that is going to be as we move forward with these proposals.

Secondly, we have had long discussions around the services that county councils deliver and their engagement in the process of the strategic development strategies. As well as transport, highways, minerals, waste and so on, we had an earlier discussion in the Committee about healthy homes. Our county councils look after a huge range of services that relate to social care provision and so on, and that is another reason why it is essential they get involved in strategic planning at this level. I should have referred to my interests in the register as a county councillor and a district councillor; I wear both hats in this respect.

The third overall point was around the inclusion of combined authorities. I know it is late but I want to relate the experience in Hertfordshire. Without having any of the processes of the Bill in place, the 10 Hertfordshire authorities and the county council have got together, separating Hertfordshire into two clusters, to work on employment, housing sites, climate change, transport—including a new mass rapid transit facility that we have been planning for—community wealth-building, town centre regeneration, digital infrastructure and a number of other things. In Hertfordshire, we are helped by having coterminous boundaries with both the local enterprise partnership and policing. We do not have coterminous borders with health, but I do not think anybody does—that is a little more complicated. We do not necessarily need legislation to do this. However, I am anxious that, as a part of the Bill, we do not stop people doing things which are ambitious and have vision for their areas.

[Baroness Scott of Bybrook (Con)]

I think that is an important point. That is what I was saying: the Bill will not stop that; it will give the opportunity to do something. Many authorities do great things informally, but sometimes, if there is a formal agreement to it, other doors are opened. That is part of what we are trying to do.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the Minister for that reassurance.

We had some discussions around borders—I will say more about that in a moment—but Herts has boundaries with London in the south of the county and with very rural areas in Bedfordshire and Cambridgeshire in the north of the county.

The other key point we mentioned was the urban-rural split, on which the noble Lord, Lord Deben, spoke very powerfully, and the value of counties understanding how this helps move the development agenda forward for rural areas as well as urban ones. I echo the point that people feel that this is largely related to urban areas. It is important for us to make sure that people in rural areas feel that their interests are taken into account in both levelling up and regeneration.

The noble Lord, Lord Lansley, spoke about opportunities for the planning processes to be co-ordinated. I have referred to the points on healthy homes that the noble Earl, Lord Howe, made earlier in the debate. We need to give some more thought to that before Report and to how we can make sure that we take the opportunities the Bill might offer to better co-ordinate planning processes. The point about timetables is very well made. We have lots of different plans that run on lots of different timetables in local government and in other parts of the public sector, and it would be helpful if we could think about how we might bring some of that together.

The noble Baroness, Lady Jones, spoke about the very important potential of the Bill to enable us to tackle climate change and the housing emergency in a more co-ordinated way. I do not want to miss those opportunities, which is why these points about planning are so important. She mentioned the ability of county councils to convene councils to work together. That has certainly been my experience, and I hope we can find a way to develop that.

I have mentioned the points that the noble Lord, Lord Deben, made about making sure that we focus on rural as well as urban areas.

The noble Baroness, Lady Pinnock, spoke about the travel to work areas. The point is not that we do not want to make plans for boundaries, but you have to think beyond the boundaries and take them into account, particularly with employment sites—otherwise, for example, you will not be planning properly for your transport arrangements. We have to think about what we are doing in a wider sense than the boundaries of local authorities as they would appear on the Boundary Commission register.

To summarise briefly, we have to be careful. We could miss opportunities for combined authorities and for the ambition we all have for levelling up to reach right across the huge areas of our country that are covered by two-tier local government—or three tiers in some cases, as we know. I know the Minister wants to reassure us that rural areas will be included, but the picture in this planning realm can still be a bit confused, particularly with the way that there are different plans for different places, which do not seem to be particularly well co-ordinated. I hope we can give that some more thought.

I am very grateful to the Minister for her detailed answer to all our amendments. That said, I beg leave to withdraw Amendment 196A.

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Of course, I agree with the general thrust of what the noble Lord, Lord Young, said. With those comments, I look forward to hearing what the Minister has to say in response.

[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments addresses local plans: the critical planning documents that local planning authorities prepare with their communities to plan for sustainable growth.

Amendment 198, tabled by the noble Baroness, Lady Taylor of Stevenage, would require deliberative democracy forums to be involved in the early stages of plan-making. Yes, I have seen this work, and very successfully, but there are other ways of doing it as well so I do not think we would want to be too prescriptive. However, I thank the noble Baroness for this amendment because it provides me with the opportunity to talk about community engagement.

The English planning system already gives communities a key role so that they can take an active part in shaping their areas and, in so doing, build local pride and belonging. We are not changing this; in fact, we are strengthening it through the Bill. Communities must be consulted on local plans and on individual planning applications. However, we know that current levels of engagement can sometimes fall below our ambitions. That is why, through the Bill, we will be increasing opportunities for communities to get involved in planning for their area to ensure that development is brought forward in a way that works best for local people.

As I mentioned earlier, the Bill reforms the process for producing a local plan so that it is simpler, faster and easier for communities to engage with. A number of measures in the Bill will create wholly new opportunities for people to engage with planning in their communities. Neighbourhood priorities statements will make it easier and quicker for local communities to set out the priorities for their area. Similarly, mandatory design codes will ensure that communities will be directly involved in making rules on how they want the new developments in their area to look and feel.

Measures to digitise the planning system will also transform the way that information about plans, planning applications and the evidence underpinning them is made available. We have funded 45 pilots, including in councils that have some of the most disadvantaged communities in the country, to demonstrate how digital approaches to engagement can make the planning system more accountable, democratic and inclusive. We have also committed to producing new guidance on community, which will show the different ways in which communities and industry can get involved and highlight best practice, including the opportunity that digital technology offers.

I hope that I have made clear the work that we are already doing to drive forward progress in improving community engagement. With regard to the three pilots from DCMS, I will undertake to ask that department where they are and what they intend to do with them, including discussing them with the LGA. I will come back to the noble Lord when I have an answer.

On Amendments 209 and 211 in the names of my noble friends Lord Lansley and Lord Young of Cookham—I keep thinking that we are getting to the 2000s of these because we have been going so long—the Government want the planning system to be truly plan-led, to give communities more certainty that the right homes will be built in the right places. To achieve that, plans will be given more weight in decision-making. They will be faster to produce and easier to navigate and understand. We expect that future local plans should continue to provide a positive vision for the future of each area, and policies to deliver that vision. However, as was remarked in the other place, currently communities and applicants can face an alphabet soup of planning documents and terms, leaving all but the most seasoned planning professionals confused; so the Bill introduces a simple requirement for authorities to prepare a single local plan for their area, and provides clear requirements on what future local plans must, and may, include. Authorities may wish to include strategic priorities and policies in future local plans. There is nothing in the Bill to stop them.

There was quite a discussion provided by my noble friend Lord Young of Cookham on homes, and also the noble Baroness, Lady Pinnock, on things such as build-out. I have looked forward, and these issues will be discussed in much more detail in future debates, so if those noble Lords do not mind if I do not answer them today, I might answer them on Thursday. Perhaps we could wait for the relevant groups of amendments on those two things.

On the specific subject of local plan polices to deliver sustainable economic growth, I make it clear that we are retaining the current legal requirement at Section 39 of the Planning and Compulsory Purchase Act 2004 for authorities to prepare plans with the objective of contributing to the achievement of sustainable development.

I turn to Amendment 212, tabled by the noble Baroness, Lady Taylor of Stevenage. This amendment would amend Schedule 7 to the Bill to allow a local planning authority—

[Lord Lansley (Con)]

My noble friend said that there was nothing in the Bill that stops local authorities specifying what are strategic policies. My point is a completely contrary one to that. It is that the NPPF says that they should set out what their strategic priorities and strategic policies are; so why does the Bill not say that?

[Baroness Scott of Bybrook (Con)]

I do not think that we have got to the NPPF yet. It is out for review, and let us see what is in it.

[Lord Lansley (Con)]

My point is that we know what the Government are proposing to say in the NPPF. The Bill is inconsistent with that. Is my noble friend suggesting that she has already decided that the NPPF will not make a distinction between strategic and non-strategic policies? Frankly, that is not going to happen. If she looks at the green-belt section, the distinction between strategic and non-strategic policies in relation to green-belt designation is an absolutely central distinction.

[Baroness Scott of Bybrook (Con)]

No, I am saying that we have not made that decision yet, but this is as it is in this part of the Bill.

Amendment 212, tabled by the noble Baroness, Lady Taylor of Stevenage, would amend Schedule 7 to the Bill to allow local planning authorities to use their local plan to amend the details of existing outline planning permissions, so that they are in accordance with the adopted local plan. Our planning reforms seek to ensure that plans, produced following consultation with local communities, have a greater influence over individual planning decisions to ensure that development reflects what those local communities want. In particular, our new decision-making framework under Clause 86 will deliver to a more plan-led system, providing greater certainty for these communities.

Enabling local plans to effectively revise existing outline planning permissions, even where development has already started, undermines this certainty. It also runs counter to the long-standing position that the grant of planning permission is a development right that also provides the certainty that developers need to raise finance and implement the permission. I fear that small and medium-sized builders would be especially impacted by such a change and would face significant wasted costs and delays at a time when we need to support them.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Tuesday 18th April 2023 Lords Chamber

[Lord Best (CB)]

My Lords, I support Amendment 274A on small sites in the name of the noble Baroness, Lady Thornhill. Mine is slightly qualified support, but I am supportive. The amendment has been devised by the innovative people at Pocket Living, a company that specialises in imaginative developments on small sites, which are always difficult to develop. The amendment proposes a fast track through the planning system for smaller operators of this kind working on smaller sites—a quarter of a hectare and smaller—in return for delivering 50% affordable housing in every case.

It is a tempting proposition. We certainly need a boost for SME builders. In their evidence to your Lordships’ Built Environment Committee last year, the Federation of Master Builders explained that the output of SME firms had declined from about 40% of all new homes in the 1980s to around 10% today. One clear reason for this loss of their input has been the time and expense of trying to secure planning consents. My reservation is that the 50% affordable housing offer is not quite so tempting if all the homes are for shared ownership or the 80% of market rents of the so-called affordable rent variety. I would want to see half these new properties being for truly affordable social renting. Then we would have a really exciting proposition from the sector. With that reservation, I support Amendment 274A.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

First, I will respond to the first remarks of the noble Baroness, Lady Thornhill. Yes, I think everybody in this Chamber who has taken part wants the same thing: we want more of the right type of housing across our country. The difference is on how we deliver that, and that is what we are taking many hours and days to deliberate on—but it is important that we do that, because it is a really important issue for the country well into the future. The way the Government see it is that we need to give clear guidance on the big issues that need to be taken into account, but that we must ensure that local planning authorities start producing local plans that no longer need to take into account the national guidance, because that will be there anyway, but that work with all the data in their local area to ensure that what is in their local plan is what is required. That is not just numbers; it relates also to the view of the noble Lord, Lord Best, and others that we need to look at demography and the types of houses that we want to deliver.

If a local plan has strong evidence, I think it is then up to local leadership to stick to that plan. There may be some government work that needs to be done on the Planning Inspectorate, but we must stick up for what the evidence shows is required in our local area, reflected in our local plan. That is the way I see it; I wanted to get that off my chest.

I turn to the amendments in this group, which relate to planning and housing, starting with Amendment 208, tabled by the noble Baroness, Lady Taylor of Stevenage, and Amendment 274A, tabled by the noble Baroness, Lady Thornhill. These amendments both relate to the provision of small housing sites and are therefore considered here together.

The National Planning Policy Framework already sets out that local planning authorities should identify land to accommodate at least 10% of their housing requirement on sites no larger than one hectare, unless it can be shown, through the preparation of relevant plan policies, that there are strong reasons why this 10% target cannot be achieved.

The framework sets out that local planning authorities should use tools such as area-wide design assessments and local development orders to help bring small and medium-sized sites forward; and to support the development of windfall sites through the policies and decisions in the local plan, giving great weight to the benefits of using suitable sites within existing settlements for homes. Local planning authorities are asked to work with developers to encourage the subdivision of large sites where this could help to speed up the delivery of homes—we heard about that earlier.

The framework also sets out that neighbourhood planning groups should give particular consideration to the opportunities for allocating small and medium-sized housing sites. However, we have heard views that we could strengthen these policies to further support the Government’s housing objectives. This is why we invited views, as part of our recent consultation on reforms to the National Planning Policy Framework, on how national planning policies can further support developments on small sites, especially those that will deliver high levels of affordable housing and, particularly in urban areas, to speed up the delivery of housing, giving greater confidence and certainty to smaller and medium-sized builders, and to diversify the housebuilding market. The consultation ended on 2 March and responses received will help to inform our policy thinking on this important issue, as will this debate. We will look at the ideas that have been put forward, together with the responses. This is something on which there will be further consideration.

Amendment 213 tabled by the noble Baroness, Lady Taylor of Stevenage, seeks to create a legal requirement for local authorities to set policies in their local plans which ensure that housing needs are met in a way that secures the long-term health, safety and well-being of local people and ensures that such housing is affordable to those on average and lower incomes. We have, as she rightly said, debated this quite a lot. While I entirely understand the sentiment behind this, as I have said on previous groups, and consider the goal to be laudable, the Government are already committed to ensuring that new development, both market and affordable, meets high standards of quality. The National Planning Policy Framework is clear that planning policies in local plans should aim to achieve healthy, inclusive and safe places, and local authorities should ensure that they properly assess the needs of different groups when planning for new housing.

Ensuring that a sufficient number and range of homes can be provided to meet the needs of present and future generations is part of achieving sustainable development. Local planning authorities should set out an overall strategy for the pattern, scale and design quality of places, and make sufficient provision for housing. Furthermore, the framework is clear that planning policies and decisions should promote an effective use of land in meeting the need for homes, while ensuring safe and healthy living conditions. Local authorities are empowered to ensure that developers deliver a defined amount of affordable housing, including social housing, on market housing sites, unless exceptions apply. Our initial consultation on revisions to the NPPF seeks views on whether the role of social rent should be strengthened and whether we could go further to promote the delivery of housing for older people, as we discussed earlier.

Finally, under the community infrastructure levy, we will introduce a new “right to require” through regulations, in which local authorities can require that a certain amount of affordable housing is delivered in kind as a levy contribution. The noble Baroness, Lady Taylor, asked why the Government are not doing more to deliver this affordable housing. The Government are totally committed to increasing the supply of affordable housing. That is why, through our £11.5 billion affordable homes programme, we will deliver tens of thousands of affordable homes, both for sale and for rent, right across the country. The levelling up White Paper made a commitment to increase the supply of social rented homes. The affordable homes programme will respond to that commitment by increasing the share of social rent homes that will be delivered through the programme, helping those most in need. Since 2010 we have delivered over 632,000 new affordable homes, including 441,000 affordable homes for rent, of which 162,000 are homes for social rent.

Although there is a comprehensive legislative code within which local plans and decisions are made, the content of local plans is produced on the basis of national policy, which is flexible to allow updates to be made without new laws being passed. I hope this provides the noble Baroness with the clarification and assurances she needs to not press this amendment.

Amendment 504GJA tabled by the noble Baroness, Lady Hayman of Ullock, would require all local housing authorities in England to publish the contents of the database of rogue landlords and property agents. The Government have stated their commitment to improving standards in rented accommodation and driving out rogue landlords. We will legislate to amend the Housing and Planning Act 2016 and make certain landlord offence information public as part of the forthcoming renters reform Bill. Opening up this information will ensure that tenants can make informed rental decisions, leading to a better rental experience, as was asked for by the noble Baroness, Lady Bennett of Manor Castle.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Tuesday 18th April 2023 Lords Chamber

Presumably, you can design beautiful places which have devastating impacts on the environment, exclude users, and work only for humans, and possibly their pets, and do nothing for biodiversity. I could be mischievous and say that we have had too many decades of that already, so it is time we built into both the planning legislation and the design codes the key principles that buildings must be designed to take account of all the issues that the amendment of the noble Lord, Lord Lansley, mentioned and all the principles of inclusivity that the amendment of the noble Lord, Lord Holmes, sets out. I hope that if these amendments are not accepted today, something like them will find their way into the Bill eventually.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, this group of amendments concerns requirements relating to design, as we have heard. Ensuring that the planning system creates more beautiful and sustainable buildings and places is a key objective of this Government. I quite accept that beauty is in the eye of the beholder, but it will be for local people to decide on design, and I think local people know their area better than anybody. This is demonstrated through the measures set out in the Bill for mandatory design codes, as well as those measures undertaken in response to the findings of the Building Better, Building Beautiful Commission, which include updates to the national design policy and new guidance on how to prepare design codes in 2021.

I begin by addressing Amendments 217 and 302, tabled by my noble friend Lord Holmes of Richmond, which focus on the principle of inclusive design. Amendment 217 would introduce a legal requirement for local plans to conform with the principle of inclusive design. It would also require local planning authorities to modify their local plans where they have received relevant observations or advice in relation to this from a person appointed by the Secretary of State. Amendment 302 would introduce a legal requirement for local planning authorities to ensure that planning and development must be predicated on the principle of inclusive design.

The Government agree that ensuring that development is designed to be inclusive for all is essential to meeting the aims for sustainable development. That is why the National Planning Policy Framework already makes clear that local planning policy should ensure that developments create places that are healthy, inclusive and safe. This means local planning policies and decisions that promote social interaction and accessibility, and which enable healthy lifestyles.

This is supported by the National Design Guide and the National Model Design Code, which illustrate how well-designed, inclusive and healthy places can be achieved in practice. Both documents advise local authorities on how the 10 characteristics of well-designed places can inform their local plans, guidance, design codes and planning decisions to create successful neighbourhoods that contain a rich mix of people, including people with physical disabilities and those with mental health needs. Through local design codes, local authorities should consider a wide variety of housing tenures and types in the design of new developments to meet a range of different needs, such as housing for older people, as we have spoken about at length today, and supported housing to meet the needs of vulnerable people.

Furthermore, the Bill will require all local planning authorities to prepare local design codes at the scale of their authority area, either through their local plan or as a supplementary plan, giving them significant weight in decision-making. The national model design code asks that, in preparing design codes, consideration must be given to how new development can promote inclusive design by creating buildings and spaces that are safe, social and inclusive, with an integrated mix of uses that are acceptable for all.

My noble friend Lord Holmes of Richmond was particularly interested in shared spaces. The national model design code recognises that streets should be designed to be inclusive and should cater for the needs of all road users as far as possible, in particular considering needs relating to disability, age, gender and maternity. However, there is also the Manual for Streets, which seeks to ensure that streets are designed to be accessible and inclusive. The DfT is updating this guidance, which will form part of a suite of guidance across DfT and DLUHC to secure better outcomes for communities. I hope that my noble friend Lord Holmes of Richmond will understand that we are clear that this is already being addressed through national planning policy and supporting guidance on design, and that this is not an amendment that we feel is necessary.

Before discussing Amendment 222, tabled by my noble friend Lord Lansley, I want to make it clear that I have heard the concerns of a number of noble Lords, over most of the afternoon, around the publishing of the NPPF. All I can say at this time is that it has been out to consultation, as we all know, with the public and stakeholders, and more details and more announcements will be made in due course. I have heard the views of the Committee and I will take them back and discuss this further with officials.

[Lord Stunell (LD)]

I remind the Minister that, on day two, she made similar noises about a draft of the statement of levelling-up missions. She did not make a promise but said that she had heard the call for those too to be in front of noble Lords before Report. I hope she can add that to her shopping list when she talks to officials after today’s session.

[Baroness Scott of Bybrook (Con)]

I will. I will look back at Hansard and ensure that we get exactly what the noble Lord wants. To tell the truth I thought he had already got it, but I believe what he says and will see that he gets it.

The Levelling-up and Regeneration Bill would require all local planning authorities to prepare authority-wide design codes as part of their development plan, either as part of their local plan or as a supplementary plan, as I have said before. The Bill already includes the obligation, found in the new Sections 15C and 15CC of the Planning and Compulsory Purchase Act 2004, as inserted by Schedule 7, that local plans and supplementary plans must be designed to secure that the development and use of land in the authority’s areas contributes to the mitigation of, and adaption to, climate change.

In addition, the National Planning Policy Framework sets the policy expectation that plans take a proactive approach to adapting to and mitigating climate change. It makes it clear that local plans and decisions should contribute to and enhance the natural and local environment. The national model design code provides guidance on how local design codes can be prepared to ensure well-designed places which respond to the impacts of climate change, through ensuring that places and buildings are energy efficient, minimise carbon emissions and contribute to the implementing of the Government’s biodiversity net gain policy.

I understand and agree with the importance of this subject matter. We are clear, though, for the reasons I have set out, that this is already being addressed through the Bill, national policy and design guidance. I hope that the noble Lord, Lord Lansley, will understand that this is not an amendment that we feel is necessary.

I hope I have said enough to enable my noble friend Lord Holmes of Richmond to withdraw his Amendment 217, and for other amendments in this group not to be moved when they are reached.

[Lord Holmes of Richmond (Con)]

My Lords, I thank all noble Lords who participated in this group of amendments. I particularly thank my noble friend the Minister for her full response. Green spaces, inclusive places: we can achieve this and deliver it through statutory design if we so choose. I think we will certainly return to some of these issues, and more, when we get to Report in the autumn, but for now I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, my noble friend Lord Stunell is the expert on neighbourhood planning, and there is nothing I can add to what he has just expounded. I also agree with what the noble Baroness, Lady Hayman of Ullock, said. In particular, my noble friend raised important questions about the statement by the Secretary of State last week about future planning proposals that will affect this Bill.

Finally, my Amendment 227 is just an extension of Amendment 231 in the name of the noble Baroness, Lady Hayman of Ullock, about development plans within national parks and areas of outstanding natural beauty. The amendment in my name would enable neighbourhood development plans to limit housing development in those vital areas of the country entirely to affordable housing—and affordable housing in perpetuity—so that there is a stream and supply of new housing in those areas that is appropriate, relevant and affordable, if “affordable” is the right definition. In this case, it means affordable for local people who live and work in those areas; evidence of that has already been given by the noble Baroness, Lady Hayman of Ullock.

[Baroness Scott of Bybrook (Con)]

My Lords, neighbourhood planning has been a great success story. I went into it with my council, probably at the same time as the noble Lord, Lord Stunell, and it was difficult to begin with, because it was very new and communities did not understand it. What I think is good about neighbourhood planning now is that all that groundwork has been done by many councils across the country, working with many communities. Therefore, for new councils and new communities coming on, I think it is going to be a lot easier as we move forward.

I thank noble Lords, particularly the noble Lord, Lord Stunell, who is obviously a guru on neighbourhood planning, for their support. As I say, I am also fully in favour of it, as can be seen by what has happened in Wiltshire. It has been a great success story; it has given many communities a much greater role in shaping development in their local areas and ensuring they meet their needs.

The Bill retains the existing framework of powers for neighbourhood planning while at the same time providing more clarity on the scope of neighbourhood plans alongside other types of development plan. However, we recognise that the take-up of neighbourhood planning is low in some parts of the country, and we would like to see more communities getting involved. This is why the Bill introduces neighbourhood priorities statements. These are a new tool, and they will provide a simpler and more accessible way for communities to participate in neighbourhood planning.

On Amendment 225 in the name of the noble Baroness, Lady Hayman of Ullock, perhaps it would be helpful if I set out some detail about the intended role of neighbourhood priorities statements in the wider system. A neighbourhood priorities statement can be prepared by neighbourhood planning groups and can be used to set out the community’s priorities and preferences for its local area. The provisions in the Bill allow communities to cover a range of issues in their statements, including in relation to the use and development of land, housing, the environment, public spaces and local facilities.

Neighbourhood priorities statements will provide a formal input into the local plan. Under new Section 15CA of the Planning and Compulsory Purchase Act 2004, inserted by Schedule 7 to this Bill, local planning authorities will be required to “have regard” to them when they are preparing their local plans. This will be tested at examination. While some communities will use them solely to feed into the local plan process, we also expect that they will operate as a preliminary stage to preparing a full neighbourhood plan or a neighbourhood design code. In these ways, neighbourhood priorities statements will feed into the planning process. Furthermore, they may also act as a springboard for other community initiatives outside the remit of the planning system.

Amendments 227, 229 to 232 and 234 deal in different ways with the scope of neighbourhood plans. On Amendments 227 and 231 in the names of the noble Baronesses, Lady Pinnock and Lady Hayman of Ullock, we acknowledge that delivery of affordable housing within national parks and areas of outstanding natural beauty can be a challenge and that neighbourhood plans can play an important role in supporting provision. However, I do not agree that these amendments are necessary. Clause 91 specifies what matters communities can choose to address within their neighbourhood development plans. It does not prevent communities including policies relating to the provision of affordable housing in the plan area. All policies in neighbourhood plans, however, must meet the statutory tests, known as the basic conditions, before they can be adopted, including that they must have regard to national policy.

I draw the Committee’s attention to specific measures we have taken to address this issue. Paragraph 78 of the National Planning Policy Framework sets out a rural exception sites policy. This allows for affordable housing to be delivered on sites that would not otherwise be developed in order to meet specific local need for affordable housing, the majority of which will be required to remain permanently available to those with a local connection. In 2021 the Government published planning practice guidance to further help bring forward more of these sites in future.

Furthermore, I point to our decision to allow local authorities and neighbourhood planning groups in designated rural areas to set and support policies to require affordable housing from a lower development threshold. The threshold can be five units or fewer, compared with the threshold of 10 units in other areas. We will consult on how the small sites threshold should work in rural areas under the infrastructure levy.

I turn to Amendment 229 in the name of the noble Baroness, Lady Hayman of Ullock. Under the reformed planning system, it will continue to be the role of the local planning authority to set a housing requirement number for neighbourhood plan areas as part of its overall development strategy. As under the current system, where neighbourhood planning groups have decided to make provision for housing in their plan, the housing requirement figure and its origin would be expected to be set out in the neighbourhood plan as a basis for their housing policies and any allocations that they wish to make. The allocation of housing has not changed; the neighbourhood takes the planning housing requirement from the local plan. As the noble Lord, Lord Stunell, has said, across the country we have seen neighbourhoods adding to that number rather than taking away from it.

[Lord Stunell (LD)]

I thank the Minister for responding very positively. I wonder whether the Minister could say, if that is the case, why she feels it is necessary to have such a prohibition on dropping below that threshold when local circumstances might very well dictate that a sensible outcome is to drop that total—not out of nimbyism but because, for instance, you do not want the houses to be underwater?

[Baroness Scott of Bybrook (Con)]

I listened to the noble Lord’s example of them being underwater, but my response would be that they would not be in the local plan if it was on a flood plain, and it would not have been allowed through national planning policy either. So, I cannot see that there needs to be a conflict and, as we have mentioned throughout the many hours we have spent discussing this Bill, housing numbers are critical, and I think it is correct, as it is at this time, that neighbourhood plans can add to the number of houses but they do not take away from those numbers.

Moving on to Amendment 230, also in the name of the noble Baroness, I do recognise that many communities want to use their neighbourhood plans to protect their local environment. Existing legislation and the changes within Clause 91 of this Bill already allow neighbourhood planning groups to include policies in their plans to ensure that development in areas of historical, cultural or environmental sensitivity is in keeping with the surrounding environment; therefore, this amendment is not necessary.

Moving on to Amendment 232 in the name of the noble Lord, Lord Stunell, Clause 91 will provide more clarity about what communities can address in their neighbourhood plans. The changes in subsection 3(2C) of Clause 91 specifically will ensure that the requirements that apply to neighbourhood plans are consistent with our approach to local and strategic plans in that they must not repeat or be inconsistent with national development management policies set by the Government—I hope that is clear.

The introduction of national development management policies is designed to help plan makers produce swifter, slimmer plans by removing the need to set out generic policies concerning issues of national importance. National development management policies are likely to cover common issues already dealt with in national planning policy, such as green belt and flood risk management. National development management policies would not impinge on local policies for shaping development, nor direct what land should be allocated for particular use.

Turning to Amendment 234, also in the name of the noble Lord, the purpose of subsection (2) of Clause 92 is to ensure that neighbourhood plans complement and widen the plans framework. In particular, it means that neighbourhood plans cannot include policies that reduce the amount of housing development—as we have said—proposed in the development plan as a whole. For example, a neighbourhood plan could not include a policy that, if followed, would prevent development coming forward on a housing site allocated in a local plan. This is consistent with how the current system operates but makes it more explicit in legislation.

Turning to Amendment 233 in the name of the noble Baroness, Lady Taylor of Stevenage, I fully agree with the noble Baroness that more can be done to increase the uptake of neighbourhood planning, particularly in urban and deprived areas. However, I do not agree that this amendment is necessary to achieve this goal. The Government are already taking action to increase uptake in these areas. As I have previously mentioned, new Section 15K inserted by Schedule 7 to the Bill introduces neighbourhood priorities statements, which will provide communities with a simpler and more accessible way to participate in neighbourhood planning. This new neighbourhood planning tool will be particularly beneficial to communities in urban and more deprived areas, which may not have the capacity to prepare a full neighbourhood plan at that particular time. It may also provide a stepping stone to preparing a new full neighbourhood plan.

Furthermore, noble Lords may be interested to hear that we are currently running a pilot in underrepresented areas, including Birmingham and Chorley, to test whether giving more support to neighbourhood planning groups in the early stages of the process can help to get more neighbourhood plans in place. We are seeing encouraging results from this pilot, and this will inform our thinking on future support for neighbourhood planning.

Turning to Amendment 235 in the name of the noble Lord, Lord Stunell, while I appreciate that he is keen to see local planning authorities play a positive and supportive role in the neighbourhood planning process, existing law and government guidance already set clear requirements and expectations on their role in supporting neighbourhood planning groups and the communities they represent. Paragraph 3 of Schedule 4B to the Town and Country Planning Act 1990, as amended, states that a local planning authority must give such advice or assistance to neighbourhood planning groups. Furthermore, the Government’s planning guidance makes it clear that local planning authorities should fulfil their duties and take decisions as soon as possible, within statutory time periods where these apply, and should constructively engage with the community throughout the whole process.

Turning finally to Amendment 236, also in the name of the noble Lord, we agree with the need for transitional arrangements to limit any disruption to communities preparing a neighbourhood plan. As part of the Government’s recent consultation on our proposed approach to updating the National Planning Policy Framework, we set out proposed transitional arrangements for introducing changes to neighbourhood plans. We propose that neighbourhood plans submitted for examination after 30 June 2025 will be required to comply with the new legal framework. This will provide communities preparing a plan under the existing framework with a generous amount of time to get their plan in place. “Made” neighbourhood plans prepared under the current system will continue to remain in force under the reformed system until they are replaced.

With those explanations, I ask the noble Baroness, Lady Hayman of Ullock, to withdraw her Amendment 225 and for the other amendments in this group not to be moved when they are reached.

[Baroness Hayman of Ullock (Lab)]

Before the noble Baroness sits down, she has not mentioned the lovely Secretary of State.

[Baroness Scott of Bybrook (Con)]

No, I have not. I did listen with interest to the noble Baroness, Lady Hayman of Ullock, on the issues of Airbnb and short-term lets. I think that was a little out of scope of this group of amendments. I do not have as much detail as I would like on this because it was in an earlier pack on short-term lets, and actually things have moved forward, so I suggest that I write and we have a meeting, which I will open to any other interested Peers at the time.

[The Deputy Chairman of Committees (Lord McNicol of West Kilbride) (Lab)]

Baroness Hayman of Ullock?

--- Later in debate ---

[Lord Kennedy of Southwark (Lab Co-op)]

I just want to make one final point—I am going down memory lane now. When I was a very young councillor, one of my first roles was as chair of Southwark Council’s highways committee. There were various issues to deal with, such as the work of the statutory undertakers. I found it very frustrating. The council would resurface a road, and along came the water board to dig the whole road up and put the new water infrastructure in. That was a very small thing, but even so, you would spend all this money, and it all went to ruin.

The Horne report, as I think it was called, came out in the 1980s. It tried to deal with this matter, and legislation followed to try to achieve better co-ordination. That was at a very local level, whereas the noble Lord, Lord Lansley, was talking about bigger stuff. But at all levels, different bodies have different responsibilities and should co-ordinate the work they do where they can in order to bring things together.

I look forward to the Minister’s response.

[Baroness Scott of Bybrook (Con)]

This has been a very interesting debate. I remember when I was a council leader how frustrating it was when utilities dug up my lovely roads the week after and did not tell me they were doing it. However, things have probably changed slightly since we were in those positions.

I thought it might be interesting to reflect on what Clause 93, which is where this comes from, and which introduces a requirement to assist in plan making, actually says. The Explanatory Notes state:

“The clause is intended to support more effective gathering of the information required for authorities producing”


a range of plans, including local plans. It achieves this through placing

“a requirement on specific bodies”

with public functions

“to assist in the plan-making process, if requested by a plan-making authority”.

This could consist, for example, of providing information to the relevant authority, or assisting in identifying appropriate locations for infrastructure. That is important, because that is the first push by government to require these companies to work with us.

Amendment 239A addresses legislating for subsequent regulations regarding the link between infrastructure providers who become aware of significant implications for their services as a result of plan-making activities, and a requirement to inform the relevant regulator in order to make provision for any necessary investment. I applaud my noble friend Lord Lansley for raising this issue, as it is an important aspect of joining up the planning system and the provision of suitable infrastructure. However, we believe the amendment is not necessary—wait for it—because the relevant regulations could already consider matters such as notifying regulatory bodies of infrastructure providers. Those regulations will, of course, follow after the passage of the Bill.

Regarding the amendment’s provision for meeting the reasonable requirements identified in a plan, we must be careful in drawing up such regulations that provisions do not cut across or duplicate the provisions of the other multiple legal and regulatory frameworks that govern the operation of the kind of infrastructure providers that my noble friend has in mind. Therefore, while I have a good deal of sympathy with the general point raised, the Government cannot accept the proposed amendment, but will want to be mindful of these considerations while drafting any relevant regulations. I hope that, with that explanation, my noble friend will withdraw the amendment.

[Lord Lansley (Con)]

I am grateful to my noble friend, because thinking about those regulations is exactly the right thing to do. If my noble friend is correct and the scope of Clause 93 will allow such regulations to extend beyond the infrastructure providers to the relationship between those providers and the regulatory bodies, that would be extremely helpful.

I am grateful to all who took part in the debate. The noble Baroness, Lady Pinnock, illustrated with her reference to PR24, the current water price review just published, that this does not necessarily relate to the structure of local plan-making. Water companies might say, “This is all very well, but we know what our price constraints enable us to fund in the period 2024-25, and the local authority is presently consulting on a local plan process that extends to 2040”.

Interestingly, PR24 has a broader structure for the water companies and their investment programmes out to 2050, because of the net-zero implications. I have been reading carefully and rather laboriously through PR24 and all its component parts. What you do not find is an appreciation of what the infrastructure requirements would be linked to, mapping the potential scale and location of development, because generally speaking local authorities have not done that; generally they map their development plans out to 2030 or 2035, and occasionally 2040, but not 2050. I remind the Committee of my role as a chair of the Cambridgeshire Development Forum. We said to all these bodies, “Why don’t you now structure your plan up to 2050, because otherwise you are not really thinking about the whole thing?” I can get away with saying that because the noble Baroness, Lady Bennett, is not in her place; she would tell me off for treating 2050 as the target, when it should clearly be 2025.

For the moment, we have the alignment of planning, which is absolutely critical here, but when it comes down to it, very often the local authorities are already in an awkward position. They would like to make specific allocations of potential development sites but they are constrained from doing so because infrastructure providers cannot guarantee that they would be able to meet a requirement in that location and on that timescale. So should they do it or should they not? If my noble friends says that regulations might be able to unlock the potential for that pledge of investment by utility providers, I would be immensely grateful for that. On that basis, I beg leave to withdraw the amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Thursday 20th April 2023 Lords Chamber

[Lord Thurlow (CB)]

I thank the noble Lord for his comment. I agree entirely with what he says. Without being able to challenge line-by-line a financial viability appraisal, it becomes an impossible task. A lot of the elements of financial appraisals are subjective, and value is therefore very much in the eye of the beholder. I absolutely agree with the noble Lord’s comment. However, until developers are required to provide sufficient social housing, together with the contribution from government sources, I unconditionally support the amendment tabled by the noble Lord, Lord Best.

[The Parliamentary Under-Secretary of State, Department for Levellin Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank my noble friend Lord Young of Cookham for his explanation of the difficult decisions that social landlords must navigate through with the competing requirements on their rental amounts. That is really important; it is not just about building other properties—there are many other pressures that we continue to put upon them.

Amendment 241A, and Amendments 242 and 242ZA, tabled by the noble Lord, Lord Stunell, relate to the definition of affordable housing. It is right to raise the importance of ensuring that affordable housing meets the needs of those who require it. Before addressing the amendments specifically, I assure noble Lords that the Government recognise the need to increase the supply of the most affordable type of affordable housing—that is to say, let at social rent. That is reflected in our commitment in the levelling-up White Paper to increasing the amount of social housing available over time to provide the most affordable housing for those who need it. A large number of new houses to be delivered through our £11.5 billion affordable homes programme will be for social rent.

The consultation that we published before Christmas on the NPPF also recognised the need for more social rent homes. Subject to the outcome of that consultation, we are proposing to make changes to the NPPF to make it clear that local planning authorities should give greater importance in planning to social rent homes when addressing their overall housing requirements in their development plans and making planning decisions. However, we also recognise that local authorities need flexibility to deliver exactly what is needed in their area, and this may vary depending on local circumstances. We want to ensure that, when there is innovation in models for the delivery of much-needed housing to meet the needs of those who require it, we can flex the system to incorporate such innovation.

So, we are aiming for a “Goldilocks zone”. If we define affordable housing too strictly either within the Bill or the NPPF, we risk stripping local authorities of their flexibility to decide what is appropriate in their area. But, if we leave the definition of affordable housing entirely to local authorities, we risk losing the levers to drive important government ambitions, including those relating to the increased delivery of social rent. That is why we are keen to maintain the existing approach, in which the Government set the direction through policy and regulation, while also allowing space for local authorities to shape this approach to best meet local need.

It is for that reason that I am concerned that Amendments 241A, 242 and 242ZA, which are all concerned with linking the definition of affordable housing to a specific measure of income, would be too restrictive. In the National Planning Policy Framework, affordable housing is described as housing for sale or rent to those whose needs are not met by the market and which complies with one or more specific definitions. Those specific definitions encompass several different types of accommodation, to meet the housing needs of a range of people in different circumstances and housing markets.

This includes affordable rent as well as social rent homes. Affordable rent was introduced in 2011 to make it possible to deliver a larger number of affordable homes for a given amount of public investment. This has helped to support the delivery of over 632,600 affordable homes since 2010. Of that total, more than 440,000 were homes for rent and, of these, more than 162,000 were for social rent.

The definition in the National Planning Policy Framework, to be read alongside relevant Written Ministerial Statements and guidance, also encompasses a range of options, including shared ownership and First Homes, that offer routes into home ownership for households whose needs are not met by the market. These options are typically available at a price below market value. Eligibility can also be assessed in relation to overall household income, or in reference to local incomes and house prices.

In relation to shared ownership specifically, the Government understand the need to maximise the scheme’s affordability both at the initial point of purchase and over the longer term. That is why shared ownership is specifically designed to enable prospective buyers to purchase the right percentage share of their home for them, based on an affordability assessment conducted by an independent financial adviser. By linking shared ownership status as a form of affordable housing to a specific measure of income, we would be removing this much-needed flexibility to tailor the scheme to the individual circumstances of prospective buyers.

In relation to compulsory purchase orders and the community infrastructure levy—and its replacement, the infrastructure levy—the definition of affordable housing is linked to the definition of social housing in the Housing and Regeneration Act 2008. This definition encompasses both “low-cost rental accommodation” and “low-cost home ownership accommodation”. There is flexibility to add other descriptions of housing via regulations.

This ensures that regulations can then be amended so that definitions for the purposes of the community infrastructure fund can also be updated. This approach has been maintained in the Bill for those areas which touch on developer contributions: the infrastructure levy, street votes and community land auctions.

It is right to preserve this flexibility, alongside our proposal that national planning policy should place much greater value on homes for social rent. I therefore hope that the right reverend Prelate and the noble Lord, Lord Stunell, will not press their amendments.

I turn next to Amendments 262 and 500 in the names of the noble Baronesses, Lady Pinnock and Lady Taylor of Stevenage. These amendments seek to enable local authorities to mandate that new housing under their jurisdiction be affordable; to define “affordable” for that purpose; and to enable Ministers to set legally binding targets for the construction of social housing.

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[Lord Stunell (LD)]

The Minister is being extremely thorough. She has emphasised very much that she does not want to constrain local authorities exercising their decisions as is appropriate for their area. Can she give us some assurance that when the NDMPs and the revised NPPF are published that we will not find that they are being constrained via a different route?

[Baroness Scott of Bybrook (Con)]

I cannot give that assurance because we have not yet published them, but from everything I know of where the Bill is going with planning, we are encouraging local authorities to make those local decisions within the national framework, and I do not expect any further constraints on local authorities in that regard.

This is probably the right time to also bring up the issue that the noble Lord, Lord Thurlow, raised about transparency and viability. We agree with many of the criticisms of the misuse of viability assessments. That is why we are introducing the infrastructure levy, which removes the need for viability assessments as part of the planning permission process. If we take it out of the process, I hope we will not have this argument in the beginning. I have had many arguments over viability in the past. If we take it out of the system, I hope that will stop in future.

Moving to Amendment 438, in the name of the noble Lord, Lord Best, I understand why he has put forward his amendments. While I appreciate totally the sentiment behind them, we do not believe this would be the correct legislative vehicle for this policy. The Government have provided public assurances that they will not require local authorities to make a payment in respect of their vacant higher value council homes in the social housing Green Paper and stand by that commitment. The Levelling Up and Regeneration Bill does not address the topic of social housing, and the Government do not wish further to complicate such a complex set of legislative measures. However, the Government remain committed to legislating on this issue at an appropriate time in the future. I can provide assurances at the Dispatch Box to the noble Lord that the provisions laid out in Chapter 2 of Part 4 of the Housing and Planning Act 2016 have not been brought into effect and this Government have no intention of doing so. The provisions lack a regulatory framework to underpin the policy, and therefore there is no risk of local authorities being subject to them before we are able to legislate in the future. I hope this reassures the noble Lord that the Government remain committed to the decisions set out in the social housing Green Paper and that provisions will be made in future for this revocation to be issued. I hope the noble Lord will feel able not to move the amendment.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords for such an interesting debate on a crucial topic central to the Levelling Up and Regeneration Bill. As a result of the discussions we have had, the National Housing Federation’s figure for people in need of social housing is now 3.8 million—that is 1.6 million households. That is around 500,000 more households than the 1.16 million that are on official waiting lists. We all know the reasons for that: not everybody who is in need of housing will necessarily want to spend the next 20 years on a housing waiting list. In so many areas it is impossible to see people ever being housed as a result of those housing lists.

I thank the right reverend Prelate the Bishop of Leeds for his important comments, particularly about us needing to understand what genuinely affordable housing means. It certainly does not mean the definition that is used in planning at the moment. I agree with his comment that we are under an illusion that housing built under the “affordable homes” category will resolve the housing crisis—it will not. I totally support his comments about unfreezing local housing allowance levels, which would be an important step. Over many decades, we have seen sticking-plaster approaches to tackling the housing situation in this country, which consequently continues to deteriorate.

The noble Lord, Lord Stunell, rightly said that all of the amendments in this group are aimed at the same destination. Neither in renting nor in homes for sale does “affordability” mean what it says on the tin. We are all trying to make sure that we do what we can in the Bill to change that to some extent.

It is misleading to say that the Help to Buy schemes, which the noble Lord, Lord Stunell, mentioned, will tackle the issue for those most in need of housing. Taking a little risk, I will mention a conversation I had with a former Conservative Minister, who said, “I don’t know why you keep banging on about social housing, Sharon. Everyone can afford to buy a house under our Help to Buy scheme”. That is clearly not the case. The noble Lord, Lord Stunell, quoted his noble friend who said that, in Southwold, the affordability ratio is 17:1, and 13:1 after a 20% discount. That is the case in quite a lot of the country, although not everywhere.

More than 50% of social homes have been transferred into the private rented sector, which is a great grievance to those of us who deal with the impact of that. Where that rent is paid by universal credit or other benefits, instead of DWP paying—I shall use the figures I quoted earlier—£110 a week rent for those properties, the public purse now pays £235 a week for them. That does not make any sense at all, so we need to do all we can to address this situation.

As ever, I was pleased to hear from the noble Lord, Lord Best, about his amendment. I thank him for reminding us about the Affordable Housing Commission report, which is very good and we all need to take account of it. I am afraid I found the Minister’s comments on the amendment proposed by the noble Lord, Lord Best, a bit disappointing. None of us, including the Government, want this measure. The noble Lord, Lord Best, called it an “obnoxious” and “offensive” legislative provision, which it is. He pointed out that it has hung over local government since 2016. We could use this legislation to get rid of it. Why do we not do that? Under that legislation, local authorities were expected to raise the rent to market levels where tenants improved their financial situation. When that happened, it greatly concerned me that this would not benefit local communities or our housing stock but would tip into the bottomless bucket in the Treasury. It is time that that provision was scrapped. I absolutely support the comments of the noble Lord, Lord Best, about local decisions being taken on right-to-buy discounts. That measure is way past time, and we should absolutely have it.

The noble Lord, Lord Young, spoke about unfreezing local housing allowance, which I agree with. He also mentioned discretionary housing payments. In many local authorities, the allocated amount of discretionary housing payment runs out in Quarter 1, and then various bodies, including government advisory bodies and Citizens Advice, often send tenants to their councils to request discretionary housing payment, when in fact it has run out in the first three months of the year. That is simply because of the cost of living crisis and the level of rents that are putting so much pressure on those discretionary housing payments.

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Moved by

[Baroness Scott of Bybrook]

242A: Schedule 8, page 327, line 9, at end insert—
“Local Government Act 1972
A1 In section 138C of the Local Government Act 1972 (application of sections 138A and 138B to other authorities), in subsections (1)(s) and (2)(c), for “an order under section 29” substitute “regulations made under section 15J”.”Member's explanatory statement
This amendment inserts an amendment to the Local Government Act 1972 which is consequential upon Schedule 7 to the Bill.

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Moved by

[Baroness Scott of Bybrook]

248A: Clause 99, page 109, leave out lines 12 to 16 and insert—
“(i) an Authority election, where any part of the street area to which the street vote development order would relate is within the City of London, or(ii) an election of councillors of any relevant council (other than the City of London) any part of whose area is within the street area to which the street vote development order would relate,”Member's explanatory statement
This amendment amends the conditions for an individual to be part of a “qualifying group” for the purposes of new section 61QB of the Town and Country Planning Act 1990 (as inserted by clause 99), to remove the overlap in cases where any part of the street area to which the street vote development order would relate is within the City of London (which is also a “relevant council” for the purposes of the 1990 Act).

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Moved by

[Baroness Scott of Bybrook]

256A: Clause 99, page 117, line 22, leave out subsections (3) to (13) and insert—
“(3) Schedule (Street votes: minor and consequential amendments) contains minor and consequential amendments in connection with this section.”Member's explanatory statement
This amendment introduces a new Schedule which makes minor and consequential amendments in connection with Clause 99 (street votes).

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Moved by

[Baroness Scott of Bybrook]

257A: After Clause 100, insert the following new Clause—
“Street votes: modifications of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017The Secretary of State may by regulations make provision modifying the application of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 (S.I. 2017/517) in relation to the grant of planning permission by a street vote development order.”Member's explanatory statement
This amendment provides a power to modify the application of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 in relation to the grant of planning permission by a street vote development order.

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Moved by

[Baroness Scott of Bybrook]

258A: Before Schedule 9, insert the following new Schedule—
“ScheduleStreet votes: minor and consequential amendmentsTown and Country Planning Act 1990
1 (1) TCPA 1990 is amended as follows.(2) In section 5 (the Broads), in subsection (3), for “61Q” substitute “61QM”.(3) In section 56 (time when development begun), in subsection (3)—(a) after “(7),” insert “61QI(8),”;(b) for “108(3E)(c)(i)” substitute “, 108(3E)(c)(i), 108(3DB)(c)(i)”.(4) In section 57 (planning permission required for development), in subsection (3), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(5) In section 58 (granting of planning permission: general), in subsection (1)(a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(6) In section 62 (applications for planning permission or permission in principle), in subsection (2A)—(a) at the end of paragraph (a) omit “and”;(b) after paragraph (b) insert “, and(c) applications for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1).”(7) In section 65 (notice of applications for planning permission or permission in principle), in subsection (3A)—(a) at the end of paragraph (a) omit “and”;(b) after paragraph (b) insert “, and(c) any application for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1) or any applicant for such consent, agreement or approval.”(8) In section 69 (register of applications etc)—(a) after subsection (1)(cza) insert—“(czb) street vote development orders or proposals for such orders;”;(b) in subsection (2)(b), after “Mayoral development order,” insert “street vote development order or proposal for such an order,”.(9) In section 71 (consultations in connection with determinations under section 70), in subsection (2ZA)—(a) at the end of paragraph (a) omit “and”;(b) after paragraph (b) insert “, and (c) an application for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1).”(10) In section 74 (directions etc as to method of dealing with applications), in subsection (1ZA)—(a) in paragraph (a)—(i) at the end of sub-paragraph (i) omit “and”;(ii) after sub-paragraph (ii) insert—“(iii) a consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1), and”;(b) in paragraph (b)—(i) at the end of sub-paragraph (i) omit “and”;(ii) after sub-paragraph (ii) insert “, and“(iii) applications for consent, agreement or approval where that consent, agreement or approval is required by a condition or limitation imposed under section 61QI(1).”.(11) In section 77 (reference of applications to Secretary of State), in subsection (1), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(12) In section 78 (right to appeal), in subsection (1)(c), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(13) In section 88 (planning permission for development in enterprise zones), in subsection (9), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(14) In section 91 (general condition limiting duration of planning permission), in subsection (4)(a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(15) In section 94 (termination of planning permission by reference to time limit: completion notices), in subsection (1), after paragraph (d) insert “; or(e) a planning permission under a street vote development order is subject to a condition that the development to which the permission relates must be begun before the expiration of a particular period, that development has been begun within that period, but that period has elapsed without the development having been completed.”(16) In section 108 (compensation)—(a) in the heading, for “or neighbourhood development order” substitute “, neighbourhood development order or street vote development order”;(b) in subsection (1)—(i) in paragraph (a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”;(ii) in the words after paragraph (b), for “or the neighbourhood development order” substitute “, the neighbourhood development order or the street vote development order”;(c) in subsection (2), for “or a neighbourhood development order” substitute “ , a neighbourhood development order or a street vote development order”;(d) in subsection (3B)—(i) in paragraph (ba), at the end omit “or”; (ii) after that paragraph insert—“(bb) in the case of planning permission granted by a street vote development order, the condition in subsection (3DB) is met, or”;(e) after subsection (3DA) insert—“(3DB) The condition referred to in subsection (3B)(bb) is that—(a) the planning permission is withdrawn by the revocation or modification of the street vote development order,(b) notice of the revocation or modification was published in the prescribed manner not less than 12 months or more than the prescribed period before the revocation or modification took effect, and(c) either—(i) the development authorised by the street vote development order had not begun before the notice was published, or(ii) section 61QI(8) applies in relation to the development.”(17) In section 109 (apportionment of compensation for depreciation), in subsection (6), in the definition of “relevant planning decision”, for “or the neighbourhood development order” substitute “, the neighbourhood development order or the street vote development order”.(18) In section 171H (temporary stop notice: compensation), in subsection (1)(a), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(19) In section 264 (cases in which land is to be treated as not being operational land), in subsection (5)(ca), for “or a neighbourhood development order” substitute “, a neighbourhood development order or a street vote development order”.(20) In section 324 (rights of entry), in subsection (1A)—(a) the words from “the reference” to the end become paragraph (a);(b) after that paragraph insert “, and(b) the reference to a proposal by the Secretary of State to make any order under Part 3 includes a reference to a proposal submitted (or to be submitted) to the Secretary of State for the making of a street vote development order.”(21) In section 333 (regulations and orders)—(a) after subsection (3) insert—“(3ZZA) Subsection (3) does not apply to a statutory instrument containing regulations made under any of sections 61QB to 61QJ or section 61QL if a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”;(b) after subsection (3ZA) insert—“(3ZZAA) No regulations may be made under section 61QC(3), 61QH(2) or 61QI(5) unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.”(22) In Schedule 1 (local planning authorities: distribution of functions), in paragraph 6A, at the end insert “or any of sections 61QA to 61QM (street vote development orders)”.Planning (Listed Buildings and Conservation Areas) Act 1990
2 (1) The Planning (Listed Buildings and Conservation Areas) Act 1990 is amended as follows. (2) In section 66 (general duty as respects listed buildings in exercise of planning functions), in subsection (4), after “orders” insert “or street vote development orders (except as provided by SVDO regulations within the meaning given by section 61QM of the principal Act)”.(3) In section 72 (general duty as respects conservation areas in exercise of planning functions), in subsection (4), after “orders” insert “or street vote development orders (except as provided by SVDO regulations within the meaning given by section 61QM of the principal Act)”.Elections Act 2022
3 In section 34 of the Elections Act 2022 (campaigners), in subsection (6), in the definition of “local referendum”, after paragraph (d) insert—“(e) section 61QE of the Town and Country Planning Act 1990 (referendums on street vote development orders);”.The Conservation of Habitats and Species Regulations 2017
4 (1) The Conservation of Habitats and Species Regulations 2017 (S.I. 2017/1012) are amended as follows.(2) In regulation 75 (general development orders)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in the opening words, after “2017” insert “or a street vote development order”.(3) In regulation 76 (opinion of appropriate nature conservation body)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in paragraph (1), after “order” insert “or a street vote development order”;(c) in paragraph (6), after “order” insert “or a street vote development order”.(4) In regulation 77 (approval of local planning authority), in the heading, after “orders” insert “and street vote development orders”.(5) In regulation 78 (supplementary)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in paragraph (3)(b), after “order” insert “or development order”.(6) In regulation 85B (assumptions to be made about nutrient pollution standards)—(a) in the heading, after “orders” insert “and street vote development orders”;(b) in paragraph (1)(a) after “orders” insert “and street vote development orders”.”Member's explanatory statement
This amendment inserts a new Schedule which makes minor and consequential amendments in connection with clause 99 (street votes).

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[Lord Stunell (LD)]

I just want to briefly say that I very strongly support the plea put in by my noble friend in relation to a rural strategy. I am also interested to understand the Minister’s response to the queries that the noble Baroness on the Labour Front Bench has raised about subsection (7); it requires some further explanation. I wait to see what the Government’s amendments look like. With that, I am happy to sit down and let proceedings continue.

[Baroness Scott of Bybrook (Con)]

Amendment 258B tabled by my noble friend Lord Lansley touches on the very specific matter of drop-in applications—not a legal term but one that is used a lot in planning circles. I know he will be well-versed in these matters, and I am grateful to him for exposing me to such technical but none the less important aspects of the planning process at this time of night. I thank my noble friend.

As we have heard, this amendment has been brought forward in response to the judgment handed down last year by the Supreme Court on Hillside Parks Ltd v Snowdonia National Park Authority. My noble friend has given much more detail, but this case considered how far new planning permissions for development that would affect existing planning permissions make these earlier planning permissions unlawful to complete.

I would like to assure my noble friend that my department is already engaging with the development sector to understand the implications of the Hillside judgment for existing and future development practices. As he will know, the matter of drop-in permissions whereby a developer seeks a separate, new permission to overlap part of an existing planning consent has been highlighted as a concern, particularly given their role in supporting the delivery of large-scale developments, which can take several years to build out.

I recognise that the intent of my noble friend’s amendment is to provide legal clarity about the validity of existing planning permissions where a new, overlapping permission is brought forward. However, I must stress that the case law in this area is now quite clear that, unless expressly severable, an existing permission must be interpreted as an integrated whole, and that where a new, overlapping permission comes forward that materially departs from that earlier permission, such that it is impossible to deliver that earlier development, it would be unlawful to carry out further works under that earlier permission. Of course, where the existing permission is clearly severable, or where a new, overlapping permission is not material, it will still be possible for developers to make a drop-in application.

New Section 73B, as introduced by Clause 102, provides for a new, alternative way to make amendments to development proposals and enables minor variations to be made to existing planning permissions. This will allow for changes to be made to existing development proposals, such as to the descriptor plans or conditions, accounting for any amendments already made, providing that the cumulative effect of those amendments does not represent a substantial difference to the original permission. It will be for the local planning authority, in exercising its planning judgment, to decide what constitutes a substantial difference on a case-by-case basis. We anticipate, therefore, that the new Section 73B will provide an alternative route for making changes for many large-scale developments, rather than them having to rely on drop-in applications. We will continue to work closely with the sector to consider whether more guidance about varying permissions would be helpful, and I would be very happy to discuss this further with officials and my noble friend if he would find that useful. With that assurance, I ask my noble friend to withdraw his amendment.

Amendment 259 tabled by the noble Baroness, Lady Taylor of Stevenage, and moved by the noble Baroness, Lady Hayman of Ullock, is intended to probe the purpose of new subsection (7) in Clause 102. This amendment was also tabled in the other place, with the concern that the provisions as drafted would require applications under new Section 73B to be considered in accordance with the framework in place at the time of the original grant of planning permission. New subsection (7) requires that the local planning authority limits its consideration only to the difference in effect that could arise between the original permission and any subsequent grants to vary or remove conditions under Section 73 or the new route, as a result of granting planning permission under the new route.

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[Lord Foster of Bath (LD)]

I apologise for intervening at this late hour. On that point, since the Minister has promised she is going to write to people and has just said very clearly, on the record, that she shares the importance of economic development in rural areas, and given that I asked at Second Reading for evidence that the levelling up Bill had gone through the rural-proofing process, would she be kind enough to include in that letter details of how that process was carried out in relation to this Bill, because frankly, many of us think there is very little evidence of that?

[Baroness Scott of Bybrook (Con)]

I will certainly reflect on that question and see what we can do.

I thank the noble Lord, Lord Carrington, for his amendments, and I appreciate his concerns on a matter, which is close to his heart and to the heart of the noble Baroness opposite. While I support the intentions to lend further support to our rural economy, unfortunately I cannot accept this amendment, as it will not have the intended effect, and we believe it is unnecessary.

The permission in principle consent route is an alternative way of obtaining planning permission for certain housing-led development. When a proposed development is under consideration, it separates the matter of principle away from technical details. Our national planning policy framework strongly supports policies and decisions to promote sustainable development in rural areas. In particular, it states that to support a prosperous rural economy, local plans, neighbourhood plans and decisions should enable the development and diversification of agriculture and other land-based rural businesses.

Additionally, as set out in Section 58A of the Town and Country Planning Act, any economic development coming forward through permission in principle would have to be predominantly for housing development. Provision already exists to allow local planning authorities to grant permission in principle for economic development related to residential schemes within rural areas. Section 5A of the Town and Country Planning (Permission in Principle) Order 2017 also enables local planning authorities to grant permission in principle to any non-housing development if it is associated with residential development, and where the scale of the development and the use to which it may be put is specified.

I am aware that permission in principle is often used to test the principle of housing development within rural areas, rather than applicants going through the conventional planning application route, and these are assessed with our National Planning Policy in mind. It is a valuable tool in this respect, and I hope this provides reassurances to the noble Lord and the noble Baroness, and accordingly that she will withdraw his amendment on his behalf.

I turn now to Amendment 282, tabled by the noble Baroness, Lady Taylor of Stevenage, and put forward by the noble Baroness, Lady Hayman of Ullock, on the speeding up of the planning system. There are around 400,000 planning applications every year. The Government have heard many representations that the planning application process is too slow and inaccessible for some users—notably those without the expertise, such as everyday people. It therefore requires improvement and modernisation. The powers being brought forward in Clause 116 enable the Government to apply a more consistent, streamlined and digitally enabled approach to the way in which the applications are made, making it easier for everyday people to submit a planning application. This will also make planning data more accessible. My department is already working with local authorities to tackle the very issue that this amendment raises, working collaboratively with the local authorities through the Open Digital Planning project, which aims to increase efficiencies in the development management process through creating modern development management software. Local authorities using the software that we are trialling have seen an estimated 35% time saving in the pre-validation process, when an application is first submitted, and post-validation, when the process is to reach a decision.

Before enacting these powers, we will fully engage with the local planning authorities and the sector as a whole; given that one of the core aims of this power is to streamline the process, we will of course consider the impact on speed of decision-making. While I support the intention of this amendment, the Government are unable to support its inclusion and hope that the noble Baroness will not press it.

Lastly, government Amendments 260A and 260B provide for consequential amendments to Clause 102 to make consistent the legislation with respect to an application being made directly to the Secretary of State, in relation to new Section 73B and Section 73 of the Town and Country Planning Act 1990.

[Lord Lansley (Con)]

I am grateful to my noble friend, particularly for the opportunity to have further discussions with a view to coming back to this issue positively at Report. Drop-in permissions have played a significant part in enabling development to go ahead as people need it to do. The case law may now be clear, but it has become clear in the form in which it has developed only because there is no statutory basis for undertaking drop-in permissions in the way that they have been done for a number of years—and that is what we need to achieve. With her very kind response, I beg leave to withdraw Amendment 258B.

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Moved by

[Baroness Scott of Bybrook]

260A: Clause 102, page 132, line 7, leave out from “section” to “after” on line 8 and insert “62A (applications that may be made directly to the Secretary of State)—
(a) in subsection (2),”Member's explanatory statement
This amendment paves the way for the second amendment in the Minister’s name to Clause 102.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

For me, those are the issues at the heart of this. We have an urgent need for new housing in this country. The Government are not using the levers that the country needs to enable housebuilding to occur and to provide for the needs of our communities, rather than the needs of commercial construction and development companies.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 261 tabled by the noble Baroness, Lady Taylor of Stevenage, proposes two fundamental changes to Clause 104, which modernises the procedure for serving completion notices in England. While I appreciate the intention, I remind your Lordships that completion notices—when served by a local authority or the Secretary of State—must provide the recipient with an opportunity to complete development. It is a “use it or lose it” power. Removing this opportunity for the developer to use the permission, as this amendment does, raises the prospect that compensation from the loss of the permission will be necessary as it is a revocation of a planning permission. I believe this would make completion notices less appealing to local planning authorities.

The second proposed effect of the amendment relates to the removal of finished parts of a development where a site could not be completed in full. Local planning authorities already have the power to require the removal of unfinished developments by order under Section 102 of the Town and Country Planning Act 1990.

The noble Baroness, Lady Pinnock, brought up one or two important issues. In the clauses already in the LURB, we have introduced two further provisions to ensure a better buildout rate of planning permissions in this country. First, the Government will require housing developers to report annually to local authorities on their actual delivery of housing. This will enable them to identify where sites in their area are coming forward too slowly. It will also help to inform whether to sanction a developer for failure to build out their schemes promptly. Secondly, the Government have introduced a new power that will allow local planning authorities to decline to determine planning applications made by developers that failed to build out at a reasonable rate earlier permissions on any land in the authority’s area.

To strengthen the package further, we will publish data on developers of sites over a certain size in cases where they fail to build out according to their commitments. Developers will be required to explain how they propose to increase the diversity of housing tenures to maximise development schemes’ absorption rate, which is the rate at which homes are sold or occupied. The NPPF will highlight that delivery can be a material consideration in planning applications. This could mean that applications with trajectories that propose a slow delivery rate may be refused in certain circumstances. We will also consult on proposals to introduce a financial penalty against developers that are developing out too slowly.

I disagree with the noble Baroness, Lady Pinnock, on houses that are not what a particular local authority wants. I believe that is up to the local authority. If the local authority has a local plan saying that it needs specific types of housing in the area, it needs to make sure that the planning applications that go through will have that in them. Local authorities know their area best, so it is up to them to make sure that their local plan is up to date and reflects what is required.

[Baroness Pinnock (LD)]

I thank the Minister for the information she has provided about sanctions and so on. I wait to see how firm those sanctions are. On the issue of local planning authorities having the power, basically, to dictate to a commercial enterprise what is developed on a site that the commercial enterprise owns, I would love to hear what powers the LPA will have in that regard.

[Baroness Scott of Bybrook (Con)]

The whole system is designed, after the LUR Bill, to be plan led. Therefore, planning applications should be in accordance with, first, national policies and, as importantly, local policies. If local policies say that you need, for example, houses for older people or disabled people, one should be agreeing only those planning applications that have those types of tenure within the developments that are coming forward through planning. If the system is plan led, I would have thought that the inspector should stick to the locally produced plan. On that basis, I hope this reassures the noble Baroness opposite that Amendment 261 is not necessary.

Amendment 269, tabled by the noble Lord, Lord Best, seeks to ensure that the development of large housing sites—defined as sites of 500 or more dwellings or more than five hectares in size where the predominant use will be housing, or designated as a large housing site within a development plan—is diversified in such a way that it provides a mix of new housing that reflects local needs, including social housing, in line with a local authority’s local plan requirements and national development management policies. While we agree with the sentiment of this amendment, we believe that there are better ways of achieving its objectives. The Government are of the view that diversification is best achieved by making this a stronger material planning consideration in the assessment of any housing application, and by requiring a buildout and diversification statement in all prescribed applications. We believe that this is best achieved via a new national development management policy, as that can be applied more flexibly compared to legislation and therefore address the different planning circumstances and housing needs that occur across the country, and that such a measure should not necessarily be limited to larger housing sites.

That is why the Government announced in December 2022—as part of the consultation Levelling-up and Regeneration Bill: Reforms to National Planning Policy—that developers will be required to explain how they propose to increase the diversity of housing tenures to maximise a development scheme’s absorption rate, which is the rate at which homes are sold or occupied. We invited views on the design of this policy, which will help to inform our thinking as part of our fuller review of national planning policy later this year. In these circumstances, while I very much agree with the objective of this amendment, there is a better way to achieve it via national planning policy, and I believe that it should be applied to a greater range of housing sites. This will ensure faster buildout rates and the diversification of those housing sites.

Government Amendment 261A will amend Clause 105 to strengthen the existing powers and hold developers more to account for unreasonably slow delivery or non-implementation of planning permissions. Currently, Clause 105 gives local planning authorities the power to decline to determine planning applications made by a person connected to an earlier planning permission on that same land which was not begun or has been carried out at an unreasonably slow rate. This amendment will enable authorities to exercise the power where an applicant is connected to an earlier permission on any land in their area which has not begun or has been built out unreasonably slowly. This change will send the message to developers that local planning authorities, as well as the communities they serve, expect new residential developments to come forward at a reasonable rate before new planning permissions are considered. This amendment will give greater powers to local areas to tackle cases of slow buildout.

[Lord Best (CB)]

I am encouraged by the tone with which these issues are being approached. As regards the placing of penalties upon those who are not getting on with the job by refusing future applications from that firm, I can see some hazards here, not least if the delay is happening in one area and the applications for further schemes are somewhere completely different. Is this new power of withholding permission for new applications because you have been so slow in building out the ones you already have to be transferred from one local authority to another, or is it confined to a local authority acting only with regard to interests within its own boundaries?

[Baroness Scott of Bybrook (Con)]

I believe it is in one local authority, but I will check that. I will let the noble Lord know and make sure that everybody else in the Committee is aware.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords who have taken part in the debate and to the Minister for yet another thorough and thoughtful answer in response to the amendments.

When I moved my amendment last week, I said that I was pleased to see that the government amendment seemed to be complementary to my amendment, and therefore it was good to hear that some new steps are coming forward as regards placing some more requirements on developers in this respect. The Minister outlined some of those, such as publishing data on developers and diversity, the proposal on slow delivery and how it results in turn-downs, and financial penalties that we would be able to impose from local government, and so on. However, it would be good to see the details of those and how they are going to be incorporated. I assume they may go into the National Planning Policy Framework, but again, to echo the point we made several times, so far we have not seen that.

I remind noble Lords that the Local Government Association has said that it did not believe that “tangible powers” had been brought forward in the Bill to enable councillors to encourage developers to build out. I hear what the Minister said about secondary applications from those builders, but local authorities need powers to deal with current applications, where the buildout is slow too, so I hope some more thought might be given to that. The noble Lord, Lord Best, referred to the fact that builders may operate across different areas, which is a good point. However, if we take action on developers in the first instance, perhaps they will be encouraged not to go and apply elsewhere if they think that there will be action and that financial penalties will be imposed where they are too slow to build out.

I reiterate our strong support for Amendment 269 in the name of the noble Lord, Lord Best. On the issue of diversification in larger developments, I take the Minister’s point that that might also apply to other developments in terms of making sure they include all types of accommodation. We have had long debates in your Lordships’ House around supported accommodation, but it can also apply to student accommodation—I have a particular passion for social housing. That is important. I also wanted to make the point that those types of accommodation being requirements, whether it is through the local planning authority or as part of the National Planning Policy Framework, would also help encourage the development of specialist builders and help us to get a wider picture across the country with specialist builders who have great experience in developing for those particular areas.

The noble Baroness, Lady Pinnock, spoke about the viability issue, which I am sure has and will be the subject of discussions. On the Islington example she gave, those questions have arisen across the country. It is important we continue to debate that as part of the Bill, because I believe it is an opportunity to try to crack some of these issues around viability that we have been trying to wrestle with.

The noble Baroness, Lady Pinnock, gave examples of the huge failure to build out, which means that 2.8 million permissions have been granted since 2011 but only 1.6 million homes have been built. We desperately need those homes, so we need to do whatever we can to push that forward and end the delays in the system—from land banking but also from other issues.

I come back to the issue of diversification of property. If we are not going to have a proper diversification strategy built in, we need a proper definition of affordable housing, because the current definition just does not work; that has been a theme throughout discussion of the Bill. As the noble Lord, Lord Best, said, the affordable housing definition does not work for lots of people in our communities, as we have discussed many times in this House. For the moment, I beg leave to withdraw the amendment.

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Moved by

[Baroness Scott of Bybrook]

261A: Clause 105, page 137, line 29, leave out “all or any part of the land” and insert “land all or any part of which is in the local planning authority’s area at the time the current application is made”
Member's explanatory statement
This amendment enables a local planning authority to refuse to determine an application for planning permission in certain cases where there was a previous application relating to land within the authority’s area and the development was not begun or has been carried out unreasonably slowly. The current power in the Bill would only be available if the previous application related to all or part of the same land.

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[Baroness Hayman of Ullock (Lab)]

My Lords, this has been an interesting debate; I thank the noble Baroness, Lady McIntosh of Pickering, for bringing it forward. I also thank the licensing committee and its members for their considerable work on this. Listening to the debate, one thing that comes over very clearly is that it is time to review the status and look at the current situation. As the noble Baroness, Lady McIntosh, said, we now have the change of use from office to residential space in town centres, and my noble friend talked about the many empty town centre premises. There will be a lot of change in ways that we have not seen before and new challenges, especially for the night-time economy, as has been discussed.

As I said, the agent of change principle has been with us for some years now, which, again, is why it is time to look at this. We know that it is in the National Planning Policy Framework, but what strikes me from the debate is the question of whether it is fit for purpose. I have a number of questions for the Minister following on from this. Is the agent of change principle having a meaningful impact at the moment? Does the licensing guidance reflect the principles in the NPPF itself? We need to ensure that the NPPF is fit for purpose, as well as the agent of change principle within it. The question on my mind is: will the NPPF, when we get to see it, reflect the likely focus of future planning decisions? How will it all fit together?

As my noble friend Lady Henig said, this is an opportunity to enshrine this principle in legislation. We need to make sure that we get this right—that it is fit for purpose and does what it is supposed to do: work to protect both sides. It is important that the Minister is able to assure us on that matter.

My noble friend Lady Henig also asked about the current status of the consultation that took place in 2017 on the housing White Paper in relation to this issue. Not to have heard back from that consultation in 2017, six years ago, is a bit concerning. Since then, as my noble friend Lord Brooke mentioned, we have had the pandemic and so much has changed, so is that consultation even still relevant? Perhaps the Government need to revisit that completely. I would appreciate the Minister taking that back to her department.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 266, tabled by my noble friend Lady McIntosh of Pickering, tackles the important issue of the agent of change principle in planning and licensing—that is, the principle that existing businesses should not be negatively affected by restrictions on them resulting from new development in their area. National policies and guidance already provide strong support for that principle, and we will continue to make sure that authorities have the tools needed to deliver it. The Government therefore do not consider the amendment necessary.

I agree with my noble friend that preventing this happening is important to so many businesses, especially in the night-time economy, where these issues most regularly occur. That is why we amended the National Planning Policy Framework in 2018 to embed these principles, with paragraph 187 of the current framework saying:

“Existing businesses and facilities should not have unreasonable restrictions placed on them as a result of development permitted after they were established”.


In answer to the noble Baronesses, Lady Henig and Lady Hayman of Ullock, that came after the consultation, so it was partly a response to it. The framework goes on to highlight that, where there could be “a significant adverse effect”, the onus should be put on the agent of change proposing the new development to provide suitable mitigation before it has been completed.

We are also introducing national development management policies through the Bill. In future, and subject to further appropriate consultation, these will allow us to give important national planning policy protections statutory weight in planning decisions for the first time.

We believe that the proposed requirement for a noise impact assessment to be undertaken for relevant development would duplicate existing guidance for local planning authorities. Planning practice guidance published by the department is clear that the agent of change will need to clearly identify the effects of existing businesses that may cause a nuisance to future residents or users of the development proposed.

The guidance also sets out that the agent of change is expected to define clearly any mitigation that is proposed to address any potential significant adverse effects, in order to try to prevent future complaints from new residents or users. Many local planning authorities also make this assessment of effects a part of their local lists of information required to be submitted alongside relevant planning applications. After such assessment of the effects, reasonable planning conditions can be used to make sure that any mitigation by the agent of change is completed, as agreed with the local planning authority when planning permission is granted.

Importantly, the Government agree that co-ordination between the planning and licensing regimes is crucial to protect those businesses in practice. This is why in December 2022 the Home Office published a revised version of its guidance, made under Section 182 of the Licensing Act 2003, cross-referencing the relevant section of the National Planning Policy Framework for the first time. Combined with our wider changes in the Bill, we will make sure that our policy results in better protections for these businesses and delivers on the agent of change principle in practice.

I hope I have demonstrated that the Government’s policies embed the agent of change principle and that we will continue to make sure it is reflected in planning and licensing decisions in future.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

My Lords, Amendment 267 in the names of the noble Lord, Lord Young, and the noble Baroness, Lady Thornhill, was music to my ears; Amendment 287 from the noble Baroness, Lady Pinnock, is very similar. I have never understood why the public purse—the hard-pressed local government public purse at that—has to subsidise the development industry even for the very largest and most profitable developments. We have long spoken about a “polluter pays” principle in discussions on the environment; perhaps it is time we had a “profiter pays” principle in planning.

This issue has long been debated in local government. It is the subject of general incredulity that, at this time of financial crisis for local government, it is still allowed to continue. The Local Government Association has lobbied consistently on this point, stating in its recent response:

“We welcome the proposal to increase planning application fees, as it has for a long time been our position that there is a need for a well-resourced planning system. However, the Government should go further by allowing councils to set planning fees locally.”


I do not think it is a surprise to any noble Lords that local authority planning departments are at full stretch already. The noble Lord, Lord Young, referred to how they will respond to the 47 clauses in this Bill, never mind the issue of street votes—they will have plenty of work to do, that is for sure. It is an area of specialism where there are considerable shortages of professionals. In spite of a great deal of work being done to encourage young people to consider planning as a career and increase the number of routes into the profession, there remain difficulties in recruitment and retention. This is even worse in areas surrounding London, where it is almost impossible for local authorities to compete with the packages offered to planning officers in London.

This is exacerbated by the pressure of work; I know that many noble Lords in the Chamber will have sat through contentious planning application hearings, and I do not think any of us would be surprised to learn that our officers subject themselves to considerable stress. Therefore, it is only right that the industry makes a fair contribution to the cost of processing applications where it will reap substantial developer profit. This will enable local authorities to ensure that their planning teams are resourced adequately.

We also strongly support Amendment 283 in the name of my noble friend Lady Young, and so ably moved by the noble Baroness, Lady Parminter. She is absolutely right that statutory consultees, often hard-pressed themselves, should be able to recover the costs from applicants. I understand that of the £50 million bill for this, cited by the noble Baroness, Lady Parminter, 60% was incurred by Natural England and the Environment Agency as the two statutory consultees dealing with the greatest number of planning consultations. It was as far back as 2018 that the top five statutory consultees came together to form a working group to identify potential alternative funding mechanisms to address the increasingly critical and unsustainable position. They made recommendations to DLUHC in March 2019. This work highlighted the need for a change in primary legislation to provide a broad enabling power under which statutory planning consultees could pass on the costs incurred in providing statutory advice to applicants, either as part of the existing planning fees or as an additional separate charge.

We welcome the inclusion of a power in the LURB to enable statutory consultees to recover costs incurred in providing advice on nationally significant infrastructure projects. That alone, though, makes only a modest contribution to addressing the challenge of establishing the sustainable funding model. I believe for Natural England, approximately 70% of the statutory consultation work will continue to be reliant on grant in aid. Will the Government introduce a power that will help us? If not, the Government are, in effect, committing to rely on the Exchequer as the primary means of funding the essential role that statutory consultees play in support of the operation of the planning system.

There is also the danger that we will create an inconsistent funding model between NSIP cases and non-NSIP cases that are of a comparable size or impact, such as large-scale housing developments. That could result in the need to prioritise resources for NSIP work over non-NSIP work, create inconsistency in service levels and potentially disadvantage large housing developments, which would be the exact opposite direction to the way we want to go. I hope that the strength of my noble friend Lady Young’s amendment will be taken into account.

Consideration should also be given to other statutory agencies. We have seen similar pressures on colleagues in the National Health Service, for example, where they have to comment on planning applications. There is also pressure on the resources of county councils to respond to matters relating to highways, flood risk, education and adult and children’s care provision—to name just a few—which is required on almost every major application and some smaller applications. It is simply not right that those costs should fall on public agencies whose funding is limited. If they were adequately recompensed, their ability to respond to applications in a timely manner might be improved.

Government Amendment 285C is similar to that proposed by my noble friend Lady Young—I hope we can at least agree on that—but, as the noble Lord, Lord Young, pointed out, this may not refer to charging for local authorities. We would want to see both local authorities and statutory consultees able to charge something like the recovery of the costs they incur in relation to the planning system.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 267 and 287 have been tabled by my noble friend Lord Young of Cookham and the noble Baroness, Lady Pinnock, respectively. I assure your Lordships that the Government understand the concerns about stretched resources in local planning authorities. However, we do not believe that enabling local planning authorities to vary fees and charges is the way to answer resourcing issues, and it does not provide any incentive to tackle inefficiencies. Local authorities having different fees creates uncertainty and unfairness for applicants and, if set too high, could risk unintended consequences by discouraging development.

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, the Grenfell fire tragedy of June 2017 has rightly ensured that many of us in this Chamber have put our minds to the outrageous way in which the construction industry failed to meet existing building safety regulations and how material manufacturers knowingly sold flammable cladding materials to be put on high-rise blocks of flats. That is not me saying that; the inquiry into the Grenfell fire said that.

We have over the past six years in this House tried two ways, so far, to address those issues, first through the Fire Safety Act and then through the longer, more detailed Building Safety Act. Right from the outset, I and others have said quite clearly that, whatever happens in putting right the wrongs of 20 years or more, the leaseholders are the innocent victims in this situation. They have done everything right in their lives and nothing wrong, and they should not be asked to pay a penny piece towards putting right the wrongs that have been done to them, which were concealed from them when they entered into a contract for their property.

We have, with the Government, tried hard to put this right. We have heard from the noble Earl, Lord Lytton, and the noble Lord, Lord Young of Cookham, who have been on this route march, as it seems, from the beginning, trying to find the answer to the question, “As the leaseholder must not pay, who must?” The noble Lord, Lord Young of Cookham, asked the right question—of course, he always does—which is, “Has the Government done enough?” Some of us, including him at the time, said we did not think so, and so it is proving.

Not only we in this Chamber but thousands of leaseholders are saying that the Government have not done enough. Not only is the construct in the Building Safety Act of the waterfall of responsibilities failing to ensure that remediation takes place promptly or at all, but, meanwhile, as we heard from the noble Earl, Lord Lytton, many leaseholders have awful tales to tell about anxiety caused, mental health that has broken down, financial burdens that cannot be met, ensuing bankruptcy and life chances blunted—and no responsibility of theirs.

Why would any of us involved in legislation allow thousands of our fellow country men and women to be put in this position, where they are being seriously adversely affected, in emotional, financial and social ways, and not do anything—or enough—about it? The noble Lord, Lord Young of Cookham, rightly said again that the Building Safety Act, despite our best efforts, excluded certain groups of leaseholders: those living in blocks under 11 metres, enfranchised leaseholders and, indeed, some buy-to-let leaseholders. That is clearly not acceptable, because those leaseholders are suffering immensely; the noble Lord, Lord Young of Cookham, gave a vivid example of that.

So the challenge to the Government and to the Minister, which I hope she will take up and respond to, is: what, then, can be done? The Government have tried to put in place a series of funding mechanisms and responsibilities, but that is clearly failing to help thousands upon thousands of leaseholders.

The Minister was unfortunately—or fortunately, for her—was not part of the long discussions on what became the Building Safety Act. We were promised at the time that leaseholders would not be expected to pay, but that is clearly not bearing out in practice. Therefore, I hope the Minister will go back to her department and ask those fundamental questions. The Government’s purpose, as expressed by the Secretary of State Michael Gove, was that it was morally reprehensible for leaseholders to pay. If that is the case, let us put that into practice and find a route through, so that no leaseholder pays anything. They have done nothing wrong and they should not be expected to pay.

In his proposed new schedule to the Bill, the noble Earl, Lord Lytton, has made a very detailed proposal about the polluter pays principle. I concur with the principle that those who cause the damage—the construction companies and the materials manufacturers—must pay. We have to find to find a way for that to work in practice. I am hoping that the Minister will come up with some answers.

Finally, the noble Baroness, Lady Hayman of Ullock, has once again raised the issue of second staircases in high-rise buildings and houses in multiple occupation, which we debated during the progress of what became the Fire Safety Act and also the Building Safety Act. Most of us said that, yes, that was the expert advice from the fire service chiefs and that is what we should do; but, unfortunately, that was not accepted by the Government.

I agree with the noble Baroness’s amendment, but I go back to the key to all this. My view—and that of all who have spoken, through all the outcomes that followed the Grenfell fire tragedy—is that, however the remediation of these buildings, of all heights, is resolved, when it comes to the leaseholders, whether enfranchised or unenfranchised, whatever happens, they must not pay. I look forward to the Minister’s response.

[Baroness Scott of Bybrook (Con)]

My Lords, in his Amendments 274, 318, 320 and 325, the noble Earl, Lord Lytton, returns us to subjects that we debated extensively this time last year in what was then the Building Safety Bill. I say to the noble Earl, with the greatest of respect, that this House and the other place considered his arguments carefully last year and rejected them. I really do not think that this Bill is an appropriate place to try to reopen these issues.

Last year, the Government opposed the noble Earl’s scheme and proposed an alternative, the leaseholder protection package, which was agreed by your Lordships and the other place. As your Lordships will be aware, the leaseholder protections in what is now the Building Safety Act 2022 have been in force since June 2022 and form part of the Government’s response to the need to fix defective buildings, alongside a number of other measures that my right honourable friend the Secretary of State set out recently in a Statement in the other place, which was repeated for your Lordships.

Those protections are complex. I would be very happy to have a meeting with interested Peers to discuss the Government’s actions in detail if that would be helpful. If any noble Lord would like to do that, they can get in touch with me or my office and we would be very happy to set that up. But, as I said, the protections are complex and it is true that it has taken time for the various professionals working in this space to get to grips with them. None the less, there is now progress on getting work done, getting mortgages issued on affected flats and moving the conversation forward with the insurance industry to ensure that remediation can be undertaken and that building insurance premiums, which had been excessively high, reflect this reduction in building risk.

I want to be clear with your Lordships: the leaseholder protections are working. The first remediation contribution order to get money back for leaseholders has been made by the tribunal and is being enforced now. In response to my noble friend Lord Young of Cookham, I can say that there have been a further 12 applications for remediation orders to the First-tier Tribunal and nine for contribution orders; that is up to the end of December—we do not have any further updated figures.

The Government’s recovery strategy unit is litigating against large freeholders, and leaseholders have the peace of mind that the remediation bills they were facing—sometimes for more than the value of their home—are no more. I emphasise to your Lordships that changing the basis on which leaseholders are protected would set back by months the progress of remediation work, which is finally happening at pace, and would create further uncertainty in the market.

In addition to the inevitable delay to remediation that would be caused if the noble Earl’s proposals were adopted, I must emphasise that the objections set out by my noble friend Lord Greenhalgh, when he spoke from this Dispatch Box last year, are still relevant. The building-by-building assessment process that he proposes would be both costly and time-consuming, which would not be in anyone’s interest.

While the noble Earl says that his scheme seeks to avoid litigation, our experience shows that the level of complexity and the sums at stake in this field mean that litigation is inevitable—and will necessarily take place in the High Court, rather than the expert tribunal already dealing with disputes under the leaseholder protections, increasing costs and the time taken to resolve cases. I should also make it clear that the Government’s package of measures in this space goes much further than the leaseholder protections set out in the Building Safety Act.

At this point, I would like to answer a few questions. Both my noble friend Lord Young and the noble Earl, Lord Lytton, brought up the point of “under 11 metres”, which I know has been an issue raised. I think I have said many times at this Dispatch Box that the views of the independent experts are clear: there is no systematic risk in buildings under 11 metres. However, we continue to look at these on a case-by-case basis and provide any help to those leaseholders accordingly. If my noble friend Lord Young of Cookham would like to let me have the letter that was sent to him, I would be happy for the team to look at it.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

281CB: Clause 115, page 148, line 30, at end insert—
“(aa) after subsection (5) insert—“(5A) Regulations may make provision specifying descriptions of planning permissions or permissions in principle that are, or are not, to be treated as development permission for the carrying out of self-build and custom housebuilding for the purposes of this section.”;”Member's explanatory statement
This amendment allows the Secretary of State to specify descriptions of planning permissions or permissions in principle that will count as development permissions for the purpose of a local planning authority complying with its duty to meet the demand for self-build and custom housebuilding in its area.

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I absolutely agree with the noble Lord, Lord Moylan, that it makes sense to review progress and for that to be part of keeping things moving forward. However, if it is down to capacity issues, the Government really need to look at how that affects delivery of DCO consent—that is what we are talking about—and how the numbers of qualified staff and staff training can help to increase capacity so that local authorities and statutory agencies have the right people, and enough right people, to move this forward.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank my noble friend Lord Moylan for tabling Amendment 284. I shall not be commenting on any individual planning case at all. Obviously it would not be correct for me to do so.

Amendment 284 seeks to ensure that the progress of applications, in circumstances where a Section 35 direction has been made, is monitored and kept under review by the Secretary of State. I agree that developments, especially nationally significant infrastructure projects, should enter our planning system efficiently, and doing so is crucial for ensuring that local communities and businesses can express their views on the real impacts that these projects can have on them.

The NSIP consenting process has served the UK well for more than a decade for major infrastructure projects in the fields of energy, transport, water, waste and wastewater, and has allowed these projects to be consented within an average of around four years. Some of these projects enter the NSIP planning system under a Section 35 direction. This is the beginning of the planning process for some projects and offers prospective applicants certainty that they can take their projects through the NSIP consenting process. This consenting mechanism has been used successfully by 18 developers and allowed them to capitalise on the benefits that the NSIP regime offers.

Very occasionally, applications for development consent can be delayed or even withdrawn. This applies to applications that either automatically qualify as an NSIP under Part 3 of the Planning Act or are directed in through Section 35. This often occurs to allow developers time to ensure that applications entering the system are of the standard needed to efficiently and robustly undergo the scrutiny required. I acknowledge that this can translate into uncertainty for some communities, businesses and investors that have the potential to be affected by such projects.

Under Section 233(2) of the Planning Act, the Secretary of State already has the power to revoke a direction to treat a project as an NSIP, and thus no longer allow the project in question to enter the NSIP planning system through these means. The Secretary of State may consider using this power, for example, if it becomes clear that the rationale or basis on which the Section 35 direction was made has changed, so this is no longer the correct and appropriate consenting option for the project in question. I appreciate why my noble friend has raised this amendment, and I hope he will withdraw it following the reassurances I have provided.

The noble Lord, Lord Stunell, and others brought up the interesting issue of oversight. We are currently working to set this up. Minister Rowley is setting up an IMG which will look at the cross-cutting issues on projects, but he cannot get involved in the specifics on projects, in order not to prejudice, obviously, future decision-making, particularly as a Planning Minister. I will also take on board the issue that the noble Baroness, Lady Hayman of Ullock, brings up about the capacity within local planning authorities to deal with these very big projects. I think it is something we can feed back in and I will do so.

[Lord Stunell (LD)]

I thank the noble Baroness for a very helpful answer. Will she say something about the actual timeline for this group formally starting work? She suggested that it was going to start work in the fairly immediate future: perhaps some sort of timescale could be provided.

[Baroness Scott of Bybrook (Con)]

I do not have a timescale tonight, but I will talk to Minister Rowley and try to get one for the noble Lord and let him know. As I say, I hope my noble friend will withdraw the amendment following the reassurances I have provided.

[Lord Moylan (Con)]

My Lords, I am grateful to noble Lords who have taken part in this short debate. I shall start briefly with the noble Lord, Lord Kennedy of Southwark, being keen to fly. He said at the end about Heathrow expansion, “We should get on with it”. I am not necessarily a believer that textual exegesis is the right way to approach a winding-up speech, even in your Lordships’ House, but this question of what “we” is in that sentence is at the heart of this. If it were purely a private planning application, it would mean the developer, but I do not think that is what he meant when he talked about Heathrow. He meant either “we” as a Government or “we” as a nation: we, somehow bigger than just the private sector developer, should be getting on with it, and it is that blend that is involved in nationally significant infrastructure projects, where, as I say, the Government make themselves a co-partner with private sector developers in the case both of Heathrow and the other example I gave. It is that confusion about who is responsible that I am trying to get to.

We know the Government are responsible, to some extent, with a project such as Heathrow expansion, but what are their responsibilities in relation to the consequences of it and are they actively monitoring? That is really my question. The noble Baroness, Lady Hayman of Ullock, I am sure understood that I was not in anything I said criticising the process as such or saying that there was not the need for a process that would speed large applications through the system, although it is undoubtedly the case that the speed with which the DCO process is handling applications is getting slower and slower, and everybody involved in it knows that. It may well be that the time for a refresh is coming. I do not think it is simply skills; it is also demand for additional up-front information and so forth: this is something the Built Environment Committee, which I chair, may well look at again.

I do not know why the noble Lord, Lord Stunell, said that he was only three-quarters in support of my amendment, as I thought he gave a 100% endorsement. I do not know what reluctance prevented him from coming out wholeheartedly, because he also put my purpose very well. Although I invited my noble friend to accept the amendment, the noble Lord recognised—as I am sure my noble friend does—that it is essentially a probing amendment to try to find out what the Government do and how they take their responsibilities for these projects forward.

I welcome my noble friend’s response, but it was slightly on the disappointing side. Of course, it is wonderful that an inter-ministerial group is being set up to look at these issues—I did not know that—but she slightly took away from the benefit of that in saying that it should not look at individual projects, which are precisely what I would like Ministers to look at. I appreciate that a Planning Minister, who may have to take planning decisions—

[Baroness Scott of Bybrook (Con)]

It will look at cross-cutting issues on projects but cannot get involved with the specifics of a project, in order not to prejudice decision-making. I did not say that it could not look at individual projects, just their specifics.

[Lord Moylan (Con)]

I am grateful for that but, thanks to a judgment—I cannot remember the name—in the courts a year or two ago on the Holocaust memorial, local planning authorities have been required in the past year or two to put in place rigorous separations, called Chinese walls, between those officers who work on developing councils’ own applications and those assessing them, in a way that always existed to some extent but is now very much more rigorous. If Ministers, including the Planning Minister, are understandably inhibited from getting into the details of why a project is not happening, perhaps a similar arrangement could be achieved within government; maybe someone in the Cabinet Office or wherever could take on the responsibility for getting into the weeds of projects that are not happening and either helping them to do so or cancelling them.

I am grateful to my noble friend for acknowledging that Ministers have the power to remove an NSIP designation. I would like to think that they could remove it on grounds more expansive than the one she mentioned—that it was no longer an appropriate designation—such as it simply not happening and therefore being, in practice, an irrelevant designation. She did not say that but perhaps it was implicitly encompassed in what she did say. I would like to think that any ministerial involvement now getting going, which I wholly welcome, could be structured in such a way that Ministers could get involved in the weeds.

I am very grateful for this debate. It has flushed out some issues that we would not otherwise have debated and I am grateful to my noble friend. With the leave of the Committee, I beg leave to withdraw my amendment.

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Moved by

[Baroness Scott of Bybrook]

285A: After Clause 122, insert the following new Clause—
“Power for appointees to vary determinations as to procedureIn paragraph 2 of Schedule 6 to TCPA 1990 (powers and duties of appointed persons), in sub-paragraph (10)—(a) for “does not apply” substitute “applies”;(b) at the end insert “only for the purposes of subsection (4) of that section”.”Member's explanatory statement
This amendment inserts a new Clause into Chapter 6 of Part 3 of the Bill to amend the Town and Country Planning Act 1990 to enable a planning inspector (as an appointed person) to vary the procedure of certain proceedings under section 319A of that Act.

[Baroness Scott of Bybrook (Con)]

My Lords, planning appeals are currently decided by three potential routes: written representations, hearings or public inquiries, or a combination of all three. Government Amendment 285A will enable an appointed planning inspector, rather than a case officer, as is currently the case, to change the mode of procedure for a planning appeal. The Government believe that an appointed inspector is best placed to decide the most appropriate mode of procedure for an appeal case as they will be familiar with the facts of the case and the views of all parties. The new clause will facilitate a more streamlined procedure and have a positive impact on the operational delivery, leading to more efficient and timely appeal decisions. I therefore request that the amendment is supported. 

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I know it is not the practice in your Lordships’ House to have long discussions on government amendments. I do not intend to do that, but I want to make some comments on these amendments, because I think they are interesting.

On Amendment 285A, I make the point that varying proceedings should always be the subject of very effective communication, not only because we have professionals engaged in these processes but because the public are involved and need to understand exactly what is happening. Where there are changes, even more effort should be made to communicate why they have been made. I raise again the issue of resourcing of PINS. A lot of clauses in the Bill are putting another heavy burden on the Planning Inspectorate, and those issues need to be taken into account.

Secondly, as we have heard, Amendment 285B indicates that the Government wish the planning process to allow people to participate remotely in planning proceedings at the grant of the Planning Inspectorate. If the Government can see the value of this—I am very pleased that they can—I ask the Minister why what is good for planning proceedings is so inappropriate for the rest of local government? We have had debates on this previously in the Bill.

The Minister made the point that participating virtually increases diversity of participation, which I completely agree with. It also saves unnecessary travel; we have had those discussions on previous clauses. We are all trying to get down to net zero, and people do not have to travel if they can participate virtually. In addition, it helps those who live in bigger geographical areas. My borough is very small geographically, so it is not really a great hardship for anyone to have to come to the town hall for a discussion on a planning application or anything else. However, if you live in some of the parts of the country where that is not such an easy journey, particularly at certain times of the year, it can be much more difficult. So, I am confused about why we seem to think that this is a really helpful process for one part of local government activity but not for the rest of it. I also probe why the amendment says, “require or permit”. I am concerned about “require” and whether the planning inspector is going to be able to insist that this happens virtually, and how that is going to work.

The noble Baroness, Lady Pinnock, referred to feeling the mood in planning meetings. That is a variable experience, from my experience in local government. Sometimes it can be useful to do that, and sometimes you would not want to be anywhere near feeling the mood in a planning meeting—but that is another matter. I echo the question from the noble Baroness, Lady Pinnock, about whether the intention is that this should apply to local planning inquiries. That is a whole other issue that needs further consideration.

By the way, I know that the noble Earl, Lord Howe, responded quite extensively on the ability to have local government proceedings virtually, and that is on the record. I would just appreciate a response from the Minister on why this is right for planning but so wrong for everything else in local government.

[Baroness Scott of Bybrook (Con)]

Let me respond to a couple of those points. On the difference between a case officer and a planning inspector and how you bring in the appellant, at the moment the case officer handles the administration of a planning appeal case, which includes the appointment of a planning inspector, but they also determine the mode of the procedure after seeking input from the parties and the inspector. Therefore, at the moment it is the case officer who talks to the parties and the inspector, and who then makes a decision taking all of that into account. We are suggesting that the planning inspector, who is the decision-maker or recommendation maker for called-in and recovered cases, will assess the details of the case and representations received from all parties in just the same way, so they would be seeking input from all parties before they made that decision.

On local plans, the major party in that will be the local planning authority or the local authority, and I cannot see those discussions being taken online. I suppose a local authority could ask for that, but those are usually quite long and arduous meetings that sometimes go on for weeks, so I am pretty sure they would be public.

[Baroness Pinnock (LD)]

My understanding, then, is that in the instance of a local plan hearing, the local planning authority would decide whether it should—the Minister is shaking her head, so I have misunderstood. Therefore, the appointed planning inspector makes the decision whether it will be in public or online.

[Baroness Scott of Bybrook (Con)]

Yes.

[Baroness Pinnock (LD)]

I therefore seek assurance that those members of the public—and in some cases members of the council, presumably—would be able to ask for it to be held in person if that was more relevant and appropriate.

[Baroness Scott of Bybrook (Con)]

That is exactly what I was saying. Although the decision would be made by the inspector, it would be taken only after speaking to the person asking for the inspection, which would be the local planning authority. So it is important that it has a large input into that, just as any appellant in a normal planning appeal would have input into the discussion on how it was going to be dealt with. However, I cannot see a local plan inspection being held online. As I said, as with the current procedure, the appellant will be asked and the council will have a chance to comment on the appellant’s choice of procedure. That is because we need to make sure there is fairness to all parties, but the inspector will have the final decision.

On how Planning Inspectorate meetings, hearings or inquiries differ from local authority meetings—I think that is the question the noble Baroness, Lady Taylor, asked—the measure clarifies the Planning Inspectorate’s existing practice of operating in-person and virtual proceedings as appropriate. This is necessary just to reduce the risk of challenge. We are not changing anything in the legislation; it can do this anyway without us changing anything. That is unlike some local authority meetings; Planning Inspectorate events through hearings or inquiries do not represent decision-making forums but allow interested parties to make representations. Hearings and inquiries enable planning inspectors to gather evidence, which they use to inform their approach to a case with a view to issuing either a decision or a recommendation to the Secretary of State, whereas planning meetings are decision-making meetings.

Amendment 285A agreed.

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Moved by

[Baroness Scott of Bybrook]

285B: After Clause 123, insert the following new Clause—
“Participation in certain proceedings conducted by, or on behalf of, the Secretary of State(1) The Secretary of State may, to the extent not otherwise able to do so, require or permit a person who takes part in relevant proceedings conducted by the Secretary of State to do so (wholly or partly) remotely.(2) The references in subsection (1) to the Secretary of State include references to a person appointed by the Secretary of State.(3) “Relevant proceedings” means any inquiry, hearing, examination, meeting or other proceedings under an Act (whenever passed or made) which relate to planning, development or the compulsory purchase of land.(4) Relevant proceedings include, in particular—(a) any proceedings to which section 319A of TCPA 1990 applies (see subsections (7) to (10) of that section);(b) any proceedings under section 20 of, or paragraph 6 of Schedule 3 to, the Planning (Listed Buildings and Conservation Areas) Act 1990;(c) any proceedings under section 21 of, or paragraph 6 of the Schedule to, the Planning (Hazardous Substances) Act 1990;(d) any proceedings under section 13A of, or paragraph 4A of Schedule 1 to, the Acquisition of Land Act 1981;(e) any proceedings under Part 10A or Part 11 of the Planning Act 2008;(f) an examination under Part 2 of PCPA 2004;(g) an examination under Chapter 2 or 3 of Part 6 of the Planning Act 2008 (including any meetings under Chapter 4 of that Part) in relation to an application for an order granting development consent;(h) an examination under Schedule 4B to the TCPA 1990 in relation to a draft neighbourhood development order.(5) For the purposes of this section a person takes part in relevant proceedings remotely if they take part through—(a) a live telephone link,(b) a live television link, or(c) any other arrangement which does not involve the person attending the proceedings in person.”Member’s explanatory statement
This amendment inserts a new Clause into Chapter 6 of Part 3 of the Bill. The Clause confers a power on the Secretary of State to require or permit a person who takes part in certain proceedings relating to planning, development or the compulsory purchase of land to do so wholly or partly remotely. The power can be exercised by a person appointed by the Secretary of State and it is intended that the Planning Inspectorate will be appointed for this purpose.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank noble Lords for that debate. Short it may have been, but it was full of some interesting facts.

Amendment 288 tabled by the noble Baroness, Lady Pinnock, would impose a duty on the Secretary of State to publicly consult on changes to the planning system to establish the impact on women’s safety. The amendment would also require local planning authorities, when determining a planning application for public development, to establish a view on how that proposed development would impact women’s safety.

The Government recognise public safety for all as a priority, and that it is critical that the planning system plays an important part in addressing that effectively in new development. The National Planning Policy Framework is already clear that a council’s planning policies and decisions should aim to create safe and inclusive places for all. It explicitly states that both planning policies and decisions should promote public safety. This is in line with the Government’s strategy on tackling violence against women and girls.

The Government have recently consulted on the proposed approach to updating the National Planning Policy Framework. The consultation acknowledges that this important issue is already addressed within national planning policy. However, it sought views on whether to place more emphasis on making sure that women, girls and other vulnerable groups feel safe in our public places including, for example, policies on lighting and street lighting. As we have heard, the consultation closed on 2 March this year. We expect to consider this subject area in the context of a wider review of the National Planning Policy Framework, to follow Royal Assent to the Bill. The Government will consult on the details of these wider changes later this year, reflecting responses to the prospective consultation.

The supporting planning practice guidance on healthy and safe communities spells out that planning provides an important opportunity to consider the security of the built environment and those who live and work in it. This specifically references Section 17 of the Crime and Disorder Act 1998, which requires all local, joint and combined authorities to exercise their functions to do all that they

“reasonably can to prevent … crime and disorder”.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 3rd May 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 292, tabled by the noble Lord, Lord Carrington, would place a new statutory duty on all acquiring authorities to act fairly towards anyone involved in the compulsory purchase process and would require the Secretary of State to issue a compulsory purchase code of practice setting out how the statutory duty to act fairly must be discharged by acquiring authorities.

I assure noble Lords that the Government understand the concerns raised on ensuring there is a fair balance between the interests of a body exercising compulsory purchase powers and the person whose interests are being compulsorily acquired. Used properly, compulsory purchase powers can contribute to effective and efficient regeneration, essential infrastructure, the revitalisation of local areas and the promotion of business leading to improvements in quality of life and the levelling up of communities. However, acquiring authorities should only use compulsory purchase powers where there is a compelling case in the public interest and the use of the powers is clearly justified. The justification for a CPO must provide sufficient evidence to demonstrate that the benefits of the compulsory acquisition of land outweigh the harm to any individuals. It is for the acquiring authority in each CPO to determine how best to do this.

The Government’s guidance on compulsory purchase is clear that negotiations should be undertaken by acquiring authorities in parallel with preparing a CPO to build relationships and demonstrate that the concerns of landowners and further claimants are treated with respect. The guidance sets out that a benefit of an acquiring authority undertaking early negotiations is to identify what measures it can take to mitigate the effects of the scheme on landowners. It also requires that, when making and confirming an order, both acquiring and authorising authorities should be sure that the purposes for which the CPO is made justify interfering with the human rights of those with an interest in the land affected. For these reasons, the Government consider the proposed duty is unnecessary. The existing compulsory purchase legislative and policy framework has safeguards in place to protect individual interests and ensure a fair balance is maintained between an acquiring authority and the person whose land is being acquired.

Amendment 410, tabled by the noble Baroness, Lady Taylor of Stevenage, would insert a new subsection into Clause 165 to provide that the Secretary of State may define by regulations the meaning of “regeneration” in new Section 226(1B) of the Town and Country Planning Act—inserted by Clause 165—providing that local authorities have been consulted. I thank the noble Baroness for raising this constructive amendment as it allows me to clarify to the House the reason for the introduction of Clause 165 of the Bill.

Local authorities have a wide range of existing powers to compulsorily acquire land in support of their functions. Clause 165 adds “regeneration” to the planning compulsory purchase power under the Town and Country Planning Act to put it beyond doubt that local authorities can use these powers for development with a clear regeneration benefit. The Government are making it clear through Clause 165 that local authorities’ existing planning compulsory purchase powers for facilitating development, redevelopment and improvement also include regeneration activities. The term regeneration is not specifically defined in legislation to not overly restrict use of the broad planning compulsory purchase power.

However, the Government’s guidance on compulsory purchase indicates how regeneration can be achieved through CPOs: for example, bringing land and buildings back into effective use; encouraging the development of existing and new industry; creating attractive environments; and ensuring that housing and social facilities are available to encourage people to live and work in the area.

The Government believe that setting out in regulations a definition of the meaning of regeneration risks unnecessarily constraining and narrowing use of the planning compulsory purchase power, which could limit its effectiveness for local authorities. This would run contrary to the Government’s objective of encouraging use of CPO powers by local authorities where there is a compelling case in the public interest to bring forward development, including for housing, regeneration and infrastructure. I trust I have given the Committee reassurance that the purpose of Clause 165 is to provide local authorities with suitably broad compulsory purchase powers enabling the delivery of regeneration benefits.

Amendment 411, tabled by the noble Baroness, Lady Bennett of Manor Castle, would insert a new clause which would amend Section 226(1) of the Town and Country Planning Act to extend use of the CPO power under that section to where a local authority wishes to compulsorily acquire land to facilitate the provision of affordable housing or social housing. I thank the noble Baroness for bringing this amendment. As alluded to in my response to the previous amendment, local authorities have a wide range of existing powers to compulsorily acquire land to support their functions, and Clause 165 of the Bill is making it clear that the CPO power under Section 226 of the Town and Country Planning Act may be used for regeneration purposes too.

Use of this extended power by local authorities could, among other things, involve the construction of affordable or social housing forming part of a large-scale regeneration scheme or the reconstruction of buildings to deliver affordable or social housing. Local authorities also have compulsory purchase powers available to them under the Housing Act 1985. These powers may be used to compulsorily acquire land, houses or other properties for the provision of housing accommodation which must achieve a quantitative or qualitative housing gain. This could include, for example, the provision of affordable or social housing.

I hope I have given the Committee reassurance that Clause 165 of the Bill gives local authorities a broader compulsory purchase power which may be used to facilitate affordable or social housing forming part of a regeneration scheme. Also, local authorities already have powers available to them to compulsorily acquire land or properties to support their housing functions.

Amendment 412, tabled by the noble Baroness, Lady Taylor of Stevenage, would insert a new clause which would add a new subsection to Section 226 of the Town and Country Planning Act. I thank the noble Baroness for raising this amendment as again it allows me the opportunity to outline to the House the existing compulsory purchase powers available to local authorities to increase the number of residential properties in their areas. As I have said, under the Housing Act 1985 local authorities have specific compulsory purchase powers which, when used, must achieve a quantitative or qualitative housing gain in their areas. These powers may be used by local authorities to compulsorily acquire land, houses or other properties for the purpose of increasing housing accommodation in their areas.

Under the Town and Country Planning Act, local authorities have further compulsory purchase powers to deliver a range of types of development and infrastructure. Requiring local authorities to deliver replacement and extra housing in addition to the main purpose for the compulsory purchase is likely to increase the costs of providing essential infrastructure and beneficial development. This will discourage the use of compulsory purchase and run contrary to the Government’s objective of encouraging use of CPO powers by local authorities where there is a compelling case in the public interest to bring forward development, including, as I say, for housing, regeneration and infrastructure. I hope I have given the Committee reassurance that local authorities already possess specific compulsory purchase powers for the purpose of increasing the quantity and quality of residential development in their areas.

I move now to the question of whether Clause 174 should stand part. Perhaps I could begin by directing the Committee’s attention to the provisions of Clause 174 in the round, which are in the technical area of compulsory purchase compensation, and to respond to concerns raised by the noble Lord, Lord Carrington. The Land Compensation Act 1961 contains the principal rules for assessing compulsory purchase compensation. Under the current rules, when assessing the open market value of land to be acquired, there are statutory assumptions which must be taken into account. This includes discounting the effect of the compulsory purchase scheme, known as the no-scheme principle. The landlord receives a value for the land which they would have received if the CPO and associated investment had not existed. The Government want to ensure that the improvement of land enabled by a transport project is equally able to benefit from the definition of the scheme under Section 60 of the 1961 Act and the scope of the no- scheme principle, as the regeneration and redevelopment of land currently can. There is no reason why the improvement of land should be excluded from the scope of this definition, and the Government are seeking to achieve this through Clause 174.

Clause 174 amends Section 6D of the 1961 Act by inserting a definition of development which includes redevelopment, regeneration and now the improvement of land. The change further aligns the wording of Section 6D with the amendment the Government are making to local authority CPO planning power under Section 226 of the Town and Country Planning Act 1990, at Clause 165, for English local authorities to use consistent terminology. I understand government officials have met the noble Lord, Lord Carrington, to discuss his concerns with Clause 174, and I hope my explanation of the clause’s purpose has given the Committee reassurance that its focus is on the consistent application of the statutory no-scheme principle to the improvement of land, alongside the redevelopment and regeneration of land.

I move now to the question of whether Clause 175 should stand part. Clause 175 is another clause in the technical area of compulsory purchase compensation. As I outlined in my response to the noble Lord, Lord Carrington, on the previous amendment, the Land Compensation Act 1961 contains the principal rules for assessing compulsory purchase compensation. Under the current rules, when assessing the open market value of land to be acquired, there are statutory assumptions which must be taken into account. Not only does this include discounting the effects of the compulsory purchase scheme, known as the no-scheme principle, but it requires that the planning prospects of the land being acquired must be considered. One method of assessing the planning prospects of land is to establish appropriate alternative development; namely, development which would have got planning permission if the acquisition of the land through compulsory purchase was not happening. Where appropriate alternative development is established, it may be assumed for valuation purposes that planning permission is in force. This is known as the planning certainty, and, assuming the value of the appropriate alternative development is greater than the existing use value, it creates an uplift in the value of the land.

The 1961 Act allows parties concerned with the compulsory purchase to apply to a local planning authority for a certificate to determine whether there is development which, in its opinion, would constitute appropriate alternative development. These certificates, known as CAADs, are used as a tool to establish whether there is an appropriate alternative development on the site, and thus planning certainty for valuation purposes—namely maximum uplift in value attributed to the certainty that development would be acceptable and granted permission in the no-scheme world. Under current rules, there is no requirement to apply for a CAAD to establish planning certainty and secure any resulting uplift in the value of land. The purpose of Clause 175 is to ensure that the compulsory purchase compensation regime does not deliver elevated levels of compensation for prospective planning permissions, which would result in more than a fair value being paid for the land.

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[The Earl of Caithness (Con)]

My Lords, I am grateful for that very full reply from my noble friend, which I will want to read, but a number of points in it concern me. I hope that she will find time for a meeting between now and further stages, because there are some quite serious issues which are unclear.

My noble friend was absolutely right when she spoke about the need for the local authority to build relationships. All I can say to her is that these proposals are shattering relationships. A lot of work will have to be done to try to get them back.

Does a CPO override a conservation covenant? If my noble friend has a conservation covenant on her stud with her horses and the local authority wants to pinch a bit of land with state theft for some affordable houses, who is going to win? Perhaps she might have to write to me on that one. I have some more questions—

[Baroness Scott of Bybrook (Con)]

I just want to make sure that the Committee knows I own no land and rent no land. Certainly, on a question such as that, I would rather give a written answer to my noble friend.

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[Lord Bellingham (Con)]

My Lords, I rise very briefly to support my noble friend Lord Northbrook. It is a very simple and straightforward amendment, but it raises some important principles. As my noble friend pointed out, the BSI is a well-resourced organisation—a commercial, not-for-profit body established under royal charter. I had a look at its website, although I did not look at its accounts. It would be wrong to say that it is awash with money, but it has plenty of money to carry out the excellent work it does on behalf of many different parts of industry in our society. There is no reason whatever why it cannot publish these matters, and it would make a huge difference to residents to be able to know exactly what is going on.

Maybe the Minister can look at one particular point —my noble friend did not mention this, though he mentioned a number of other bodies that are mentioned in statute and different legislation that do make reports and other information available free of charge. I gather that in Ulster such documents are online completely free of charge, and that is a precedent that our Government could follow.

I hope that if the Minister cannot promise to accept the amendment, she will at least undertake to talk to the British Standards Institution about this, because it is a problem that could be solved very easily.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 311 in the name of my noble friend Lord Northbrook would require the Government to make all standards that relate to all planning Acts, or local authority planning policy, online and free of charge.

Our national standards body, the British Standards Institution or BSI, publishes around 3,000 standards annually, and these standards are the product of more than 1,000 expert committees. The BSI is independent of government and governed by the rights and duties included in its royal charter. This includes the obligation to set up, sell and distribute standards of quality for goods, services and management systems. About 20% of the standards produced are to support the regulatory framework. This will include a minority of standards made to support planning legislation and local authority planning policy.

To ensure the integrity of the system and support the effective running of the standards-making process, the funding model relies on the BSI charging customers for access to its standards. As a non-profit-distributing body, the BSI reinvests its income from sales in the standards development programme. In some circumstances, the Government will fund BSI standards to make them available. For example, last year the then Department for Business, Energy and Industrial Strategy made available 100,000 copies of one of the energy management systems standards to UK SMEs.

I hope that this provides sufficient reasoning for my noble friend Lord Northbrook to withdraw his amendment. I am very happy to discuss this further with noble Lords and the BSI.

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[Lord Foster of Bath (LD)]

My Lords, I will be very brief. I speak only because of the words of the noble Lord, Lord Bellingham, just now. Like him, I am very keen to see, and as a Minister had some responsibility for, the improvement of high streets. The noble Lord is quite right that on a high street these changes could take place without the significant problem to local residents that he described might happen in a more residential area.

We are very supportive of the principle of Amendment 312, but I say very gently to the Minister that if, as I suspect, she is going to suggest that there is no need for this amendment, I would encourage her to remind herself of the earlier debate on the agent of change principle. That too was apparently not necessary. Frankly, it seems that one or the other will be necessary in the circumstances that the noble Lord, Lord Bellingham, described in a residential area. We need either a separate use classification or the agent of change principle to give local residents that protection.

[Baroness Scott of Bybrook (Con)]

Amendment 312, in the name of my noble friend Lord Northbrook, seeks to prevent the movement of premises being used as shops, banks, gyms, offices et cetera within (a) and (c) to (g) of class E to be used instead as cafés or restaurants in (b).

I take this opportunity to make clear to noble Lords that vibrant and diverse high streets and town centres are vital to communities, as places where local people shop, use services and spend their leisure time.

The Government introduced the commercial business and service use class in 2020 to support our high streets and town centres, enabling them to respond quickly to changes in consumer demands. This use class includes a wide range of uses commonly found on our high streets, such as shops, banks and offices, as well as services such as creches and health centres. Movement between uses within the class does not constitute development and therefore does not require planning permission. Thus, this class provides flexibility to move between such uses and allows for a mix of such uses to reflect changing retail and business models, and to avoid premises being left empty.

We believe that restaurants and cafés are an important part of our high streets and town centres. Such uses support high street vitality, attracting people to the high street to shop and spend their leisure time, and we would not want to limit them. My noble friend’s amendment seeks to restrict the flexibility of premises within the commercial, business and service use class to be used as cafés or restaurants. However, a permitted development right cannot be used in this way to limit movement within this use class. The legislative approach of this amendment is therefore flawed and we are unable to support it.

I turn next to Amendment 312F in the name of the noble Baroness, Lady Taylor of Stevenage, which seeks to require the Secretary of State to publish a review, within 12 months of the Bill achieving Royal Assent, of all permitted development rights. Permitted development rights are a national grant of planning permission that allow certain developments, including building works and changes of use, to be carried out without an application for planning permission having to be made. Permitted development rights have been a well-established part of the planning system for many years, supporting homeowners and businesses. In recent years, new permitted development rights have been used to support housing delivery. The rights are helping deliver much-needed additional new homes, including more than 94,000 homes in the seven years to March 2022.

In response to comments about the quality of some of the homes delivered, we commissioned research into the operation of the rights, published in July 2020. We subsequently legislated to ensure that all new homes delivered under permitted development must, as a minimum, meet the nationally described space standards and have access to adequate natural light in all habitable rooms. In addition, the current consultation on the infrastructure levy seeks views on the circumstances in which it may be appropriate to apply the infrastructure levy to permitted development.

We continue to keep permitted development rights under review, so this amendment is not necessary. It would also be impractical, as it would require a disproportionate review of 155 separate permitted development rights, all within the 12 months proposed. On these grounds, we will not be able to give this amendment our support.

[Baroness Taylor of Stevenage (Lab)]

I am grateful for the response, but it seemed a bit equivocal around permitted development rights and the infrastructure levy. Can the Minister give us some more clarity? Is it under consultation still? One of the important problems with permitted development is that is has not attracted any infrastructure support whatever or any percentage of affordable housing. For example, if an office building is converted into luxury flats, there is no infrastructure provided and no requirement to provide affordable housing that sits alongside it. This is a very important message for the infrastructure levy that it should incorporate permitted development.

[Baroness Scott of Bybrook (Con)]

It is in the current consultation. I assure the noble Baroness that we will be taking account of the consultation responses on this.

I turn next to Amendment 312J, in the name of the noble Baroness, Lady Hayman of Ullock, which seeks to require the Secretary of State, within 60 days of the Bill achieving Royal Assent, to make a statement on the use of Article 4 directions by local authorities, and to explain the reasoning behind occasions when they may be modified by the Secretary of State and their resulting consistency.

It may be helpful if I briefly explain Article 4 directions. Permitted development rights are a national grant of planning permission. These allow certain building works and changes of use to be carried out without having to make an application for planning permission. Where it can be clearly evidenced that a permitted development right will cause unacceptable harm to a particular area, local authorities can make an Article 4 direction. This stops development proceeding under the permitted development right and requires that a planning application is submitted.

While Article 4 directions are consulted on and made locally, the Secretary of State has the power to modify or cancel an Article 4 direction. He will intervene where he considers that there are clear reasons for doing so, most particularly where he considers that they do not comply with national policy, as set out in paragraph 53 of the National Planning Policy Framework. This policy requires that all Article 4 directions should cover the smallest geographic area possible. Where they relate to a change from non-residential to residential use, they should be made only to avoid wholly unacceptable adverse impacts. All other Article 4 directions should be necessary to protect local amenity or the well-being of an area. Local authorities must notify the Secretary of State when they make an Article 4 direction.

When it is considered that an Article 4 direction as made by a local authority does not comply with national policy, officials have worked with the local authority to agree a revised Article 4 direction. Between 1 July 2021, when there was a change in national policy, and 3 May 2023, modifications have been made to Article 4 directions from 10 local authorities to ensure that they comply with national policy. I hope that noble Lords will be reassured that there is consistency in Article 4 directions that is ensured by the statutory process, policy and guidance. The Secretary of State exercises his power to intervene where there are clear reasons to do so, and in a consistent and measured way. With these reassurances, I hope that noble Lords will agree that Amendment 312J is not necessary.

To conclude, I hope that I have said enough to enable my noble friend Lord Northbrook to withdraw his Amendment 312 and for the other amendments in this group not to be moved when reached.

[Lord Northbrook (Con)]

My Lords, I listened carefully to the Minister’s reply. I should like to say straightaway that I applaud the useful overall relaxation in permitted development rights. I take her point and that of my noble friend Lord Bellingham that there could be problems in high streets with my proposed permitted development BB1. I still believe that in residential areas it is important to propose change. I am noting some support from the Benches opposite. I should like maybe to recraft the amendment so that perhaps residents’ associations could have a say in residential areas.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Thursday 18th May 2023 Lords Chamber

[Lord Lansley (Con)]

I want briefly to refer to the clause stand part notice tabled by my noble friend Lord Young of Cookham and I for a probing purpose. Clause 126 has the effect of retaining the community infrastructure levy in London and Wales, but I will not talk about Wales. We are leaving Wales out of it for these purposes. The clause retains the community infrastructure levy in London, alongside the introduction of the infrastructure levy. I understand that that is essentially because the mayoral CIL has been used for the provision of Crossrail and is expected to do so for years to come.

However, it has raised in our minds a question to ask my noble friend the Minister about whether the community infrastructure levy, which of course does not provide for affordable housing, can live alongside the infrastructure levy for a number of years. The technical consultation, which is to be concluded on 9 June, does not explain how the respective contributions are to be assessed in a combined fashion because they apply to different parameters of the development. That leads to the assumption that with a 10-year transition we are looking at many places across the country with a combination of community infrastructure levy obligations that have arisen in relation to developments over a number of years and past developments, alongside the introduction of the infrastructure levy. The technical consultation, to my reading, does not help us understand how these two things are going to be meshed together. Of course, many noble Lords tabled their amendments in this group before the technical consultation was published. It answers some of the questions, but not all of them, and I think this is one question that it does not quite answer.

Another question occurred to me while reading the technical consultation in relation to affordable housing. It does not yet provide certainty about whether contributions under the infrastructure levy may be regarded as an improvement on the situation where developers are able to negotiate or renegotiate their liabilities under Section 106. Developers are not engaging in negotiations simply because they can and therefore they do and local authorities do not give way simply because they ask for it. Circumstances change.

I am always burned by the fact of the October 2008 crash. In the space, literally, of weeks, the economic viability of many large-scale development projects changed dramatically. If you look at any system, including this system, and it cannot meet the test of what you would do under those circumstances, I am afraid it does not help. Renegotiation of the contributions is one solution. It might be said that if the market price and the gross development value of a large site crash in the way they did in October 2008, the infrastructure levy crashes as well. The problem then is: how is the affordable housing going to be funded? How is the other infrastructure to be funded?

I do not have answers to all these things, but my noble friend and I will perhaps have an opportunity in the next group to talk a bit more substantively about the infrastructure levy and what we might do about it, but that does not answer the question. If affordable housing presently often suffers by being a residual after other Section 106 obligations have been met, and if under the infrastructure levy it becomes, in effect, a right to require and it is elevated above other requirements, there will be a great deal of difficulty in local communities about the fact that there are many other obligations that the infrastructure levy has to meet that may not be able to be met if the gross development value comes down or if, for example, the affordable housing right to require and the tenures that have to be provided lead to a much higher cumulative discount needing to be paid. We have to have some flexibility built into the system, and the risk at the moment is that that is not presently available in the way that we have understood it in the past. We can strengthen local authorities, and in the next group I hope we can talk about how that might be possible.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendments 313 and 317 propose to make the levy voluntary for local authorities or to introduce it through a pilot system. I acknowledge that the reforms we are proposing will need to be implemented in a sensible manner. There are problems with the existing system, but it is important that we do not introduce new issues. We want to ensure that the new levy delivers at least as much affordable housing as the existing system, and that is why we are currently consulting on the levy and intend to consult again on the draft regulations. We want input from across the private and public sectors, and we will consider the feedback carefully as we proceed. As I mentioned previously, the new levy will be introduced through a process of test and learn and a phased-out programme. I hope that this will provide the noble Baroness, Lady Taylor, the reassurance that further piloting powers are not needed.

In terms of introducing the levy as a voluntary system, we are seeking to create more certainty across the whole system of developer contributions. We recognise that the levy must be introduced carefully to ensure that it will deliver the intended results. That is the purpose of the test and learn. However, if we do not aim for a unified system, we will dilute the potential benefits. I hope this provides the noble Baroness, Lady Hayman, with sufficient reassurances to withdraw Amendment 313.

Amendments 364 and 364A are concerned with how the Government will assess the delivery of affordable homes under the new infrastructure levy. Given the length of time of the proposed rollout, requiring an assessment of the levy 120 days after the Bill is passed, as proposed in Amendment 364, provides an insufficient amount of time meaningfully to assess the impacts of the levy, but I reassure the Committee that during the rollout the Government will work closely with stakeholders to monitor the impacts of the levy. That includes monitoring our commitment to deliver at least as much, if not more, affordable housing.

In addition, the department has commissioned a scoping study to develop an approach to the evaluation of the planning elements of the Levelling-Up and Regeneration Bill, which we expect to report following Royal Assent, and the full evaluation informed by the findings of the scoping study will then be commissioned. I hope this gives reassurance to the noble Baroness, Lady Taylor, and that she will feel able not to move her amendment.

On Amendment 364A, first homes were a 2019 manifesto commitment and are already successfully established in the market through a grant-funded early delivery programme. Outside that programme, the first homes discount is funded by developers as part of their contribution through planning obligations. The Government currently publish information about the delivery of first homes through both the early delivery programme and planning obligations in our annual affordable housing supply statistical release, and I reassure the noble Baroness, Lady Hayman, that we will continue to do so. We will work closely with local authorities throughout the phased test-and-learn implementation programme to monitor the Government’s key objective to maintain affordable housing supply. This will include but will not be limited to first homes. I hope I have provided the noble Baroness with sufficient reassurance not to press that amendment.

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[Lord Foster of Bath (LD)]

I am sorry to interrupt the Minister. She has given a number of examples. Will the biodiversity net gains required in the Environment Act 2021 be included in the exceptions she has just listed?

[Baroness Scott of Bybrook (Con)]

I think I have just said that we are currently consulting on what will be in those. I would prefer to wait until after that consultation and then we will know what is going to be in them.

Amendments 332 and 333 seek to require a local authority to prepare an assessment of its affordable housing need and for the infrastructure levy rates to be set at a level that will meet this need in full. We must recognise that the total value that can be captured by the levy, or indeed any system of developer contributions, will not necessarily match the costs of meeting the entire affordable housing need of an area. Revenues will depend on the value of development that comes forward, and that will not always match need.

Nevertheless, new Section 204G(2) in Schedule 11 requires that charging authorities, when setting their rates, must have regard to the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. That will ensure that affordable housing need is accounted for when levy rates are set. Furthermore, charging schedules will be subject to scrutiny by public examination to ensure that it does.

I want to make it clear that the list of infrastructure issues is not in priority order. Although affordable housing may be seventh on the list, that does not make it a priority. That list is also not necessarily complete.

As noble Lords will no doubt be aware, strategic housing market assessments or similar documents are currently part of the evidence base used to prepare a local plan. These are required as a result of national policy contained in the National Planning Policy Framework, rather than in primary legislation. Under the new system for preparing local plans, local authorities will continue to be required to prepare evidence regarding different types of housing need, including affordable housing. That will inform not only the local plan but the infrastructure delivery strategy.

I agree that it is important that the levy is based on up-to-date evidence of affordable housing need. It is the intention that local plans, charging schedules and infrastructure delivery strategies are prepared together. However, during the transition period, this may not always be possible. That is why our preferred approach is to use regulations and guidance to set out how evidence-based documents, including evidence on different types of housing need, should be considered. I hope I have given reassurance to the Committee that the provisions in the Bill will enable levy rates to be set with proper regard to affordable housing need, and that the noble and learned Lord, Lord Etherton, will feel able not to press his amendment.

Amendments 334 and 334A have the commendable purpose of ensuring that the levy meets its aims of delivering at least as much affordable housing as the current system, if not more, or otherwise addressing locally identified need for affordable housing. The Bill allows regulations to make provision about matters to be considered by charging authorities when setting rates, including the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. This will ensure that affordable housing need is accounted for when rates are set but, if the Government are overly prescriptive about requirements, the development of an area could become unviable. That is because affordable housing need may exceed what can be captured through the levy. In such circumstances, rates would need to be set at such high levels that neither affordable housing nor market housing would come forward.

The Bill has been drafted carefully to enable local authorities to find the right balance when setting rates and capture as much value as they can while maintaining viability. As I have said, local authorities’ infrastructure levy charging schedules will be subject to public examination, meaning thorough scrutiny of how and why levy rates are set at a particular level. The infrastructure delivery strategy will also be subject to examination, alongside either a local authority’s charging schedule or its local plan. We envisage that the infrastructure delivery strategy will set out the proportion of levy payment that an authority will require to be delivered in kind as affordable housing. I hope that this provides the noble Baronesses, Lady Warwick and Lady Taylor, with sufficient reassurance not to press these amendments.

Amendments 340, 341, 344, 344A, 349 and 350 are all concerned with how local planning authorities should spend levy proceeds. With regard to Amendment 340, the infrastructure levy is an important tool to support sustainable development objectives at the local level. There is an existing requirement for local authorities, when exercising any function in relation to local plans, to do so with the objective of contributing to the achievement of sustainable development. This is set down in Section 39 of the Planning and Compulsory Purchase Act 2004 and will remain in the new plan-making system.

To create sustainable development and successful places, it is important that the infrastructure is appropriately planned for. Contributions from developers are a key tool in mitigating the impacts of new development, alongside wider government funding. The Bill provides a flexible framework to allow local authorities to decide which infrastructure projects they spend the proceeds on. When making such decisions, the Government expect local authorities to fulfil their functions by having regard to all their legal requirements in the round—for example, contributing to the achievement of sustainable development.

I turn to Amendments 341 and 344. As I hope that I have impressed on the Committee, we have designed the levy with the aim of delivering at least as much affordable housing as the current system of developer contributions, if not more. Should the levy generate more revenues than at present, local authorities would be able to choose to direct those additional revenues to meeting their local affordable housing need. Nevertheless, local authorities will need to balance this objective of affordable housing delivery with the levy’s other objectives, such as supporting the development of new roads and medical facilities. We think it is right that local authorities, which know their areas best, are best placed to make local decisions in balancing funding for matters such as affordable housing and other local infrastructure need. I hope noble Lords will therefore feel able not to press these amendments.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Lansley, for initiating this clause stand part debate, because in the way we do business in your Lordships’ House, amending existing Bills, it is always worth taking a step back and asking whether we need to do this at all. He has generated a very interesting debate, and in the other groups on the infrastructure levy, it has always been worth holding in our minds whether this is the right way to do it, or whether we should go back to what we have already. That is always worth doing.

The local government community would welcome some clarity on the whole issue of developer contributions. The LGA has been quite supportive of the infrastructure levy, with some qualifications, but wants clarity on what quantum we are expecting to get from it, as well as what is expected to be achieved by it, because we are in danger of making it into the motherhood and apple pie of local government funding, and it certainly will not achieve that.

This is even further complicated in two-tier areas—I have the scars on my back to prove it—where the district council is the housing authority and is looking for substantial contributions to housing, but the upper-tier authority has a duty to press for funding for education, highways, flooding and all the other things that upper-tier authorities look after. It is important we understand the weighting of those various voices in the infrastructure levy process, because otherwise all the pressure on infrastructure will raise viability questions once again. The noble Lord, Lord Greenhalgh, who is not in his place today, previously raised issues about emergency services and whether they warrant consideration for infrastructure levy. These are questions we are rightly looking at as we go through the Bill.

Our provision in the first group was for pilots, and we would have preferred that they were carried out before the Bill came to the House, which would have enabled some testing of the efficacy of the infrastructure levy before we went down this route, but that is shutting the stable door. I should be interested to hear the Minister’s responses on how long the transition period will be and what will be done to test this out as we go through the process.

The noble Lord, Lord Lansley, asked why, if what the Government are trying to achieve is a minimum contribution levy, they do not just do that. I should be interested to hear the Minister’s answer to that question. It is a really good point that, if we must assess this at planning, post-commencement and at final adjustment, what happens if there is significant inflationary pressure, a market crash or whatever between those stages? If it works one way and the final adjustment ended up being a further contribution in cash from developers to make up the difference, that is one thing; if it goes the other way, however, and the viability at the planning stage is greater than what is achieved at the final adjustment, what happens then to the difference? There is quite a lot still to be thought through on this.

I am grateful to the noble Lord, Lord Lansley, for raising the question, but the local government community is quite keen now to have the issue of developer contributions resolved. If the infrastructure levy is going to do that, that would be a good thing, but there are many more questions to answer before that happens.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friend Lord Lansley for tabling these amendments.

As we have discussed, infrastructure delivery strategies will help local authorities to plan for the vital infrastructure that is needed to support sustainable development in their area. The infrastructure levy is designed to be a more effective and streamlined system than CIL and planning obligations. Unlike CIL, the new levy will be a mandatory charge which all relevant authorities will be required to adopt. This is an important step in reducing the complexities of the existing system and ensuring uniformity. Also, it ensures that all local authorities benefit from the levy receipts for their local area over time. The levy will be designed to be responsive to market conditions, meaning that local authorities get a fairer share of the uplift in land value that often occurs between the grant of planning permission and site completion to fund local infrastructure.

My noble friend Lord Lansley asked what happened if there was a 10% reduction in GDV which resulted in a 40% reduction in developer profit. As the final liability is based on the gross development value, if the sales value falls, the levy liability will also reduce—that happens similarly at the moment anyway.

The infrastructure levy will be able to fund the provision of affordable housing, largely replacing the operation of the Section 106 agreement. At the moment, the Section 106 agreement is what delivers most of the affordable housing and is often hard fought by local authorities. This will be a much more stable way of delivering affordable housing. The new right to require will mean that local authorities can stipulate the affordable housing that they require to be delivered in kind as part of that levy liability.

My noble friend Lord Lansley also asked about regional inequalities. We can only capture the land value uplift that is there. We expect to capture more in high-value greenfield areas, obviously, and this is what happens in the existing system—you cannot do that any other way.

The noble Baroness, Lady Pinnock, also brought in the point about the infrastructure delivery strategy and existing local plans, which is an important issue. We must accept that we are making a big change here. An assessment of infrastructure need will be undertaken alongside the local plan. In the long term, we expect these two parts of the delivery strategy will be brought together, but during transition they may have to be undertaken separately. We are talking about long-term here, and we expect those two plans to be together eventually and as soon as possible.

[Baroness Taylor of Stevenage (Lab)]

The issue about regional inequalities is really important. This is supposed to be a levelling-up Bill. If there will be more inequalities in the infrastructure levy in different parts of the country, then it is hard to see how it will help the Bill to do its job in terms of levelling up. It will exacerbate inequalities, not help to level them up.

[Baroness Scott of Bybrook (Con)]

I am not sure that is right. To take affordable housing, in an area with lower housing-cost needs and where housing is of lower value, you cannot expect the same infrastructure levy for houses and land of £150,000 to £350,000, so you must get that balance right. However, with levelling up, we would expect the values to come up and level as we go through the levelling-up procedure.

[Lord Stunell (LD)]

The noble Baroness makes a very interesting point, but the problem is that construction costs are not as widely differentiated as land costs. This means that an area with a low level of levy will not be able to build an equivalent number of homes to an area with a high levy. The mismatch between costs and income will be the problem.

[Baroness Scott of Bybrook (Con)]

I take that point. We have talked about the different rates from different development typologies, and we expect local authorities to set different rates. As the noble Baroness said, they do that with COUNCIL for different development types. We have published research that shows the range of possible rates for different case study areas, and I have put the results of that research in a letter.

For all these reasons, the Government are introducing the new infrastructure levy through the Bill and it is the correct thing to do for the country. There are too many local communities that, with the CIL system and the Section 106 system, are not getting what they deserve from the developments in those areas. So a new system, however difficult it is or however long it takes to deliver, has to be the right way to go.

[Baroness Pinnock (LD)]

The Minister makes a very important point about the infrastructure levy, as opposed to Section 106 and CIL. Could she provide us with some evidence that the infrastructure levy will raise more money than the existing system?

[Baroness Scott of Bybrook (Con)]

I will look to the evidence but, as I have clearly stated many times, we are expecting the same if not more housing, particularly affordable housing, from this infrastructure levy. I just say to my noble friend Lord Lansley, as I have said before, that we are not getting rid of Section 106 agreements, but will use them only in very restricted circumstances. The main issue from this is that affordable housing comes out of the Section 106 system and into the infrastructure levy system. When the whole country moves to the infrastructure levy, it will make affordable housing a much more important issue when it comes to how we use developer contributions in the future.

I move on now to government Amendment 361A. This makes three consequential changes to other Acts of Parliament to ensure that the new infrastructure levy will be treated in the same way as CIL in relevant legal contexts. First, Section 101(6) of the Local Government Act 1972 requires that a local authority’s functions in relation to levying rates may be exercised only by that authority—in other words, those functions may not be delegated—but CIL is not a “rate” for this purpose. This means that a local authority may delegate its CIL functions.

Amendment 361A replicates this approach in respect of infrastructure levy functions. I emphasise, however, that the Bill contains important safeguards for democratic accountability. For example, new Section 204K(6) makes it clear that a local authority may approve its infrastructure levy charging schedule only at a meeting of the authority and by a majority of the members present.

Secondly, Section 70 of the Town and Country Planning Act 1990 provides that “local finance considerations” can be a material consideration when determining planning applications. Local finance considerations include CIL, which can therefore be a material consideration when a planning application is determined.

Government Amendment 361A treats the infrastructure levy in the same way, allowing infrastructure levy receipts—anticipated and received—to be taken into account when determining planning applications. This does not override the primary aims of the infrastructure levy to support the development of an area by providing infrastructure, including affordable housing, or its meeting of other purposes, as set out in regulations, in a way that does not make development of the area economically unviable.

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Moved by

[Baroness Scott of Bybrook]

355A: Schedule 11, page 365, line 22, at end insert—
“(ea) may make provision treating CIL as if it were IL,”Member's explanatory statement
This amendment enables IL regulations made under new Part 10A of the Planning Act 2008 (as inserted by Schedule 11 to the Bill) to make provision treating the charge known as the community infrastructure levy under section 205 of that Act to be treated as if it were the charge known as the infrastructure levy.

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Moved by

[Baroness Scott of Bybrook]

357A: Schedule 11, page 365, line 38, after “obligations)” insert “(including provision about obtaining sums under subsection (1)(d) of that section for use in connection with IL)”
Member's explanatory statement
This amendment enables IL regulations made under new Part 10A of the Planning Act 2008 (as inserted by Schedule 11 to the Bill) to make provision about the use of the power under section 106(1)(d) of the Town and Country Planning Act 1990 to obtain sums for use in connection with IL.

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Moved by

[Baroness Scott of Bybrook]

361A: Schedule 11, page 366, line 36, at end insert—
“Local Government Act 1972
1A In section 101 of the Local Government Act 1972 (arrangements for discharge of functions by local authorities), after subsection (6) insert—“(6ZA) Infrastructure Levy under Part 10A of the Planning Act 2008 is not a rate for the purposes of subsection (6).”TCPA 1990
1B In section 70(4) of the TCPA 1990 (determination of applications: general considerations), in paragraph (b) of the definition of “local finance consideration”, after “payment of” insert “Infrastructure Levy or”.Deregulation and Contracting Out Act 1994
1C In section 71(3) of the Deregulation and Contracting Out Act 1994 (functions excluded from sections 69 and 70), omit the word “and” at the end of paragraph (h) and after that paragraph insert—“(ha) sections 204R and 204S of the Planning Act 2008 (Infrastructure Levy: collection and enforcement); and”.”Member's explanatory statement
This amendment makes amendments to a number of Acts in consequence of new Part 10A of the Planning Act 2008, inserted by Part 1 of Schedule 11 of the Bill, which makes provision for a new Infrastructure Levy.

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Moved by

[Baroness Scott of Bybrook]

373A: Clause 139, page 170, line 36, at end insert—
“(aa) any proposals for increasing the extent to which a specified environmental outcome is delivered,”Member's explanatory statement
This amendment is consequential upon the second amendment in the Minister’s name to clause 139. It inserts a provision which is equivalent to the sub-paragraph removed by that amendment from clause 139(4)(b).

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Moved by

[Baroness Scott of Bybrook]

374A: Clause 141, page 173, line 16, after “(4)” insert “(aa),”
Member's explanatory statement
This amendment is consequential upon the first amendment in the Minister’s name to clause 139.

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Moved by

[Baroness Scott of Bybrook]

393A: Clause 153, page 187, line 18, leave out from “remediate” to end of line 19 and insert “environmental damage (within the meaning of those regulations) that is treated as occurring by regulation 9A of those regulations (nutrient significant sewage disposal works: environmental damage).”
Member's explanatory statement
This amendment is consequential on the Minister’s amendment at page 190, line 36.

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Moved by

[Baroness Scott of Bybrook]

393B: Clause 155, page 190, line 36, leave out from “Any” to “caused” in line 2 on page 191 and insert “excess nutrient pollution is to be treated for the purposes of these regulations as damage to the related habitats site that is environmental damage”
Member's explanatory statement
This amendment would change what is treated as environmental damage for the purposes of the Environmental Damage (Prevention and Remediation) (England) Regulations 2015 where a plant is in breach of a nutrient pollution standard to the excess nutrient pollution discharged (instead of the damage caused to a site).

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Moved by

[Baroness Scott of Bybrook]

412A: Clause 168, page 213, line 21, leave out subsection (4) and insert—
“(4) Schedule (Conditional confirmation and making of compulsory purchase orders: consequential amendments) contains, and makes provision in connection with, amendments in consequence of this section and paragraph 3 of Schedule 15.”Member’s explanatory statement
This amendment introduces the new Schedule in the Minister’s name before Schedule 15, and omits one of the provisions superseded by that new Schedule.

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Moved by

[Baroness Scott of Bybrook]

412B: Before Schedule 15, insert the following new Schedule—
“ScheduleConditional confirmation and making of compulsory purchase orders: consequential amendmentsLand Compensation Act 1973 (c. 26)
1 In section 33D of the Land Compensation Act 1973 (exclusions from entitlement to loss payments), for subsection (6) substitute—““(6) The relevant time is the time at which any of the following occurs in respect of the compulsory purchase order relating to the person’s interest in the land—(a) the order is confirmed, other than conditionally, under section 13 or 13A of the Acquisition of Land Act 1981;(b) the order is made, other than conditionally, under paragraph 4 or 4A of Schedule 1 to that Act;“(c) a decision is made under section 13BA(2)(a) of the Acquisition of Land Act 1981 (decision that conditions subject to which order was confirmed have been met);(d) a decision is made under paragraph 4AA(2)(a) of Schedule 1 to that Act (decision that conditions subject to which order was made have been met).”Compulsory Purchase (Vesting Declarations) Act 1981 (c. 66)
“2 In section 5(2) of the Compulsory Purchase (Vesting Declarations) Act 1981 (vesting declaration not to be executed before purchase order operative), for “26(1)” substitute “26”.Acquisition of Land Act 1981 (c. 67)
3 (1) The Acquisition of Land Act 1981 is amended as follows.(2) In section 7—(a) in subsection (3) (regulations subject to negative procedure)—(i) after “13A” insert “or 13BA”;(ii) after “paragraph 4A” insert “or 4AA”;(b) after subsection (3) insert—““(4) So far as anything is required or authorised to be prescribed as mentioned in subsection (2) in relation to orders that fall to be made or confirmed by the Welsh Ministers— “(a) the reference in that subsection to the Secretary of State is to be read as a reference to the Welsh Ministers, and“(b) the reference in subsection (3) to either House of Parliament is to be read as a reference to Senedd Cymru.”(3) In section 26 (date of operation of orders and certificates), for subsections (1) and (2) substitute—“(1A) A compulsory purchase order confirmed under Part 2 becomes operative—(a) if it is confirmed unconditionally, on the date on which a confirmation notice in respect of the order is first published as required by section 15(3)(a);(b) if it is confirmed conditionally, on the date on which a fulfilment notice in respect of the order is first published as required by section 15(4C)(b)(i).“(1B) A compulsory purchase order made under Schedule 1 becomes operative—“(a) if it is made unconditionally, on the date on which a making notice in respect of the order is first published as required by paragraph 6(3)(a) of that Schedule;“(b) if it is made conditionally, on the date on which a fulfilment notice in respect of the order is first published as required by paragraph 6(4C)(b)(i) of that Schedule.“(1C) Subsections (1A) and (1B) do not apply to an order to which the Statutory Orders (Special Procedure) Act 1945 applies.“(2A) A certificate given under Part 3 becomes operative on the date on which it is first published as required by section 22(a).“(2B) A certificate given under Schedule 3 becomes operative on the date on which it is first published as required by paragraph 9(a) of that Schedule.(3) This section is subject to section 24.”Housing Act 1985 (c. 68)
4 (1) The Housing Act 1985 is amended as follows.“(2) In section 582 (suspension of recovery of possession of certain premises when compulsory purchase order made)—(a) in subsection (2), for paragraph (b) substitute—“(b) any earlier date on which—(i) the Secretary of State notifies the authority that the Secretary of State declines to confirm the order,(ii) the order (having been confirmed conditionally) expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981, or(iii) the order is quashed by a court.”;(b) in subsection (6), for paragraph (a) substitute—“(aa) the Secretary of State notifies the authority that the Secretary of State declines to confirm the compulsory purchase order,(ab) the order (having been confirmed conditionally) expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981,(ac) the order is quashed by a court, or”.(3) In paragraph 3 of Schedule 5A (termination of initial demolition notices)—(a) in sub-paragraph (2), after “(3)(a)” insert “or (aa)”;(b) in sub-paragraph (3)—(i) omit the “or” at the end of paragraph (a);(ii) after paragraph (a) insert—“(aa) a decision under section 13BA(2)(b)(ii) of that Act that conditions subject to which the order was confirmed have not been met, or” (c) in sub-paragraph (4), after “(3)(a)” insert “or (aa)”;(d) after sub-paragraph (6) insert—“(6A) If—(a) a compulsory purchase order has been made as described in sub-paragraph (2),(b) the order expires by virtue of section 13BA(2)(b)(i) of the Acquisition of Land Act 1981, and(c) the effect of the expiry is that the landlord will not be able, by virtue of that order, to carry out the demolition of the dwelling-house,the notice ceases to be in force as from the date when the order expires.”;(e) in sub-paragraph (7), after “(2)” insert “or (6A)”.Town and Country Planning Act 1990 (c. 8)
5 (1) TCPA 1990 is amended as follows.(2) In section 137(7)(b) (discontinuance of compulsory purchase for purpose of blight notice exception)—(a) in sub-paragraph (i), after “order” insert “or the order (having been made conditionally) expires by virtue of paragraph 4AA(2) of Schedule 1 to the Acquisition of Land Act 1981”;(b) in sub-paragraph (ii), at the end insert “or (having been confirmed conditionally) it expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981”.(3) In Note (2) in paragraph 22 of Schedule 13 (land ceasing to be blighted by proposed compulsory purchase order)—(a) omit the “or” at the end of paragraph (a);(b) at the end of paragraph (b) insert “; or“(c) the order (having been confirmed or made conditionally) expires by virtue of section 13BA(2)(b) of, or paragraph 4AA(2) of Schedule 1 to, the Acquisition of Land Act 1981.”Planning (Listed Buildings and Conservation Areas) Act 1990 (c. 9)
“6 In section 48(6)(b) of the Listed Buildings Act (discontinuance of compulsory purchase for purpose of listed building purchase notice exception)—“(a) in sub-paragraph (i), at the end insert “or the order (having been made conditionally) expires by virtue of paragraph 4AA(2) of Schedule 1 to the Acquisition of Land Act 1981”;“(b) in sub-paragraph (ii), at the end insert “or (having been confirmed conditionally) it expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981”.Historic Environment (Wales) Act 2023
7 (1) In section 111(8)(b) of the Historic Environment (Wales) Act 2023 (discontinuance of compulsory purchase for purpose of listed building purchase notice exception)—(a) in the English language text—(i) in sub-paragraph (i), at the end insert “or (having been confirmed conditionally) it expires by virtue of section 13BA(2)(b) of the Acquisition of Land Act 1981”;(ii) in sub-paragraph (ii), at the end insert “or the order (having been made conditionally) expires by virtue of paragraph 4AA(2) of Schedule 1 to that Act”;(b) in the Welsh language text—(i) in sub-paragraph (i), at the end insert “neu pan fydd (ar ôl cael ei gadarnhau’n amodol) yn dod i ben yn rhinwedd adran 13BA(2)(b) o Ddeddf Caffael Tir 1981”; “(ii) in sub-paragraph (ii), at the end insert “neu pan fydd y gorchymyn (ar ôl cael ei wneud yn amodol) yn dod i ben yn rhinwedd paragraff 4AA(2) o Atodlen 1 i’r Ddeddf honno”.“(2) The Secretary of State may, by regulations, amend sub-paragraph (1) before it comes into force in consequence of the provision amended by that sub-paragraph being enacted other than as proposed in the relevant iteration of the Historic Environment (Wales) Bill.(3) In sub-paragraph (2)—“(a) the “Historic Environment (Wales) Bill” means the Bill of that name introduced in Senedd Cymru on 4 July 2022, and“(b) the “relevant iteration” of that Bill is the Bill as it stands after consideration by the Legislation, Justice and Constitution Committee of the Senedd on 13 February 2023.”Member’s explanatory statement
This new Schedule brings together various amendments in consequence of the introduction of conditional compulsory purchase orders (some of which are currently elsewhere in the Bill and some of which are new).

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Moved by

[Baroness Scott of Bybrook]

412C: Clause 171, page 216, line 3, at end insert—
““(4) In section 582 of the Housing Act 1985 (suspension of recovery of possession of certain premises when compulsory purchase order made)—“(a) in subsection (2)(a), for “third anniversary of” substitute “final day of the period of three years beginning with”;(b) after subsection (6) insert—““(6A) If the compulsory purchase order specifies a period longer than three years under section 13D of the Acquisition of Land Act 1981, the references in this section to the period of three years are to be read as references to the period specified in the order.””Member’s explanatory statement
This amendment adds consequential amendments to Clause 171.

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Moved by

[Baroness Scott of Bybrook]

412D: After Clause 175, insert the following new Clause—
“Power to require prospects of planning permission to be ignored(1) In the Acquisition of Land Act 1981—“(a) in section 7(3) (regulations subject to negative procedure), before “paragraph 4A” insert “section 15A(11) or”;“(b) in section 14A (confirmation by acquiring authority), after subsection (2) insert— ““(2A) Nor does it apply to an order directing that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (see section 15A).”(c) after section 15 insert—“Special provision about compensation
15A
Directions applying section 14A of the Land Compensation Act 1961
(1) Subsection (2) applies if—(a) an acquiring authority submits a compulsory purchase order for confirmation, and(b) the authorising enactment is listed in Schedule 2A.“(2) The acquiring authority may include in the order a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this section apply.(3) The acquiring authority must submit to the confirming authority a statement of commitments together with the order.“(4) A “statement of commitments” is a statement of the acquiring authority’s intentions as to what will be done with the project land should the acquisition proceed, so far as the authority relies on those intentions in contending that the direction is justified in the public interest.(5) If the authorising enactment is listed in any of paragraphs 1 to 6 of Schedule 2A, those intentions must include the provision of a certain number of units of affordable housing.“(6) The statement under section 12(1)(a) must include a statement of the effect of the direction; and paragraphs (ba) and (bb) of the same subsection apply in respect of the statement of commitments as they apply in respect of the compulsory purchase order.“(7) The confirming authority may permit the acquiring authority to amend the statement of commitments before the decision whether to confirm the order is made.(8) But the confirming authority may do so—“(a) only if satisfied that the amendment would not be unfair to any person who made or could have made a relevant objection for the purposes of section 13, and“(b) if the authorising enactment is listed in any of paragraphs 1 to 6 of Schedule 2A, only if the statement of commitments as amended will still comply with subsection (5).(9) If the confirming authority decides to confirm the order in accordance with the applicable provisions of this Part—(a) it may confirm the order with the direction included if satisfied that the direction is justified in the public interest;(b) otherwise, it must modify the order so as to remove the direction.“(10) If the order is confirmed with the direction included, a confirmation notice under section 15 must (in addition to the matters set out in subsection (4) of that section)—(a) state the effect of the direction,(b) explain how the statement of commitments may be viewed, and(c) explain that additional compensation may become payable if the statement of commitments is not fulfilled. (11) In this section—““the authorising enactment” means the enactment that confers the power to make the compulsory purchase to which the order in question relates;“the project land” means—(a) the land proposed to be acquired further to the compulsory purchase order, and(b) any other land that the acquiring authority intends to be used in connection with that land;“unit of affordable housing” means a building or part of a building that is—(a) constructed or adapted for use as a separate dwelling, and(b) is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or“(ii) housing of any other description that is prescribed.”;(d) after Schedule 2 insert—“Schedule 2AEnactments eligible for directions applying section 14A of the Land Compensation Act 1961Enactments authorising acquisitions for purposes including housing
1 Section 142 of the Local Government, Planning and Land Act 1980 (acquisition by urban development corporation).2 Section 17 of the Housing Act 1985 (acquisition by local housing authority).“3 Section 226 of the Town and Country Planning Act 1990 (acquisition by local authority for development or planning purposes).4 Section 333ZA of the Greater London Authority Act 1999 (acquisition by Greater London Authority for housing or regeneration purposes).“5 Section 9 of the Housing and Regeneration Act 2008 (acquisition by the Homes and Communities Agency).6 Section 207 of the Localism Act 2011 (acquisition by mayoral development corporation).Enactments authorising acquisitions for purposes of the NHS
7 Paragraph 46 of Schedule 4 to the Health and Social Care (Community Health and Standards) Act 2003 (acquisition by NHS foundation trust).8 Paragraph 27 of Schedule 4 to the National Health Service Act 2006 (acquisition by NHS trust).9 Paragraph 20 of Schedule 2 to the National Health Service (Wales) Act 2006 (acquisition by local health board).Enactment authorising acquisitions for educational purposes
10 Section 530 of the Education Act 1996 (acquisition by local authority for purposes of educational institution or function).”(2) In the Land Compensation Act 1961—(a) after section 14 insert—“14A Cases where prospect of planning permission to be ignored“(1) The following provisions apply in relation to an acquisition if the compulsory purchase order authorising the acquisition directs that compensation is to be assessed in accordance with this section.(2) Section 14 does not apply.“(3) In assessing the value of land in accordance with rule (2) in section 5, it is to be assumed that no planning permission would be granted for development on the relevant land (whether alone or together with other land). (4) Subsection (3) does not prevent account being taken of planning permission that has already been granted.(5) Subsection (3) does not apply in relation to development consisting of the use as two or more separate dwellings of any building previously used as a single dwelling.(6) Schedule 2A provides for the payment of additional compensation in respect of the acquisition in certain circumstances.”(b) in section 32 (interest from entry on land), after subsection (2) insert—““(3) This section does not apply in relation to additional compensation payable under Schedule 2A.”(c) after the second Schedule insert—“Schedule 2AAdditional compensation where section 14A appliedDirections for additional compensation
1 (1) This paragraph applies if—(a) an interest in land has been acquired further to a compulsory purchase order, and(b) the order directed that compensation was to be assessed in accordance with section 14A.“(2) The confirming authority must, on an application by an eligible person, make a direction for additional compensation if it appears to the confirming authority that the following conditions are met.(3) Those conditions are—(a) that the statement of commitments has not been fulfilled,(b) either—“(i) that the period of 10 years beginning with the date on which the compulsory purchase order became operative has expired, or“(ii) that there is no longer any realistic prospect of the statement of commitments being fulfilled within that period, and“(c) that the initial direction would not have been confirmed on the basis of a statement of commitments reflecting what has in fact been done with the project land since its acquisition.(4) In sub-paragraph (3)—“the statement of commitments” means the statement of commitments submitted in connection with the compulsory purchase order under section 15A(3) of the Acquisition of Land Act 1981 (and if the statement was amended after its submission, means the statement as amended);“the initial direction” means the direction referred to in sub-paragraph (1)(b) (and that direction was “confirmed” when the compulsory purchase order was confirmed with the inclusion of the direction);““the project land” means the land treated as the project land for the purposes of the statement of commitments;and that statement is “fulfilled” if what is done with that land after its acquisition is materially in accordance with the statement.“(5) The effect of a direction for additional compensation is that each eligible person may make a claim to the acquiring authority for any additional compensation in respect of the acquisition payable to the person under this Schedule.“(6) A person is an “eligible person” for the purposes of this Schedule if the person was entitled to compensation in respect of the acquisition (and see also paragraph 4(1)). Amount of additional compensation
“2 (1) Additional compensation in respect of an acquisition is payable to an eligible person only if, in relation to that person, the alternative amount is greater than the original amount.(2) The amount payable is the difference between the two amounts.(3) The “original amount” is the amount of compensation awarded or agreed to be paid to the person in respect of the acquisition.“(4) The “alternative amount” is the amount of compensation that would have been assessed as due to the person in respect of the acquisition had compensation been assessed without the application of section 14A.(5) If the original amount was agreed, the relevant valuation date for the purposes of the assessment imagined under sub-paragraph (4) is the date on which the agreement was concluded.“(6) In relation to the determination of an amount of additional compensation under this Schedule, section 17(2)(b) applies as if its reference to the amount of compensation were to the amount of additional compensation.“(7) A certificate issued under section 17 (or 18) after the award or agreement referred to in sub-paragraph (3) is to have effect for the purposes of the assessment imagined under sub-paragraph (4) as if it had been issued before that assessment.(8) Any amount of compensation that is or would be attributable to disturbance, severance or injurious affection is to be ignored for the purposes of sub-paragraphs (3) and (4).Time limit for application for direction
3 An application under paragraph 1(2) may not be made after the expiry of the period of 13 years beginning with the date on which the compulsory purchase order became operative.Mortgages
“(1) For the purposes of this Schedule an “eligible person” includes a person who would have been entitled to compensation in respect of the acquisition but for the existence of a mortgage (but the mortgage is in that case still to be taken into account in determining the original and alternative amounts under paragraph 2).(“2) An amount agreed or awarded to be paid to a mortgagee under section 15 or 16 of the Compulsory Purchase Act 1965 in respect of the acquisition is to be treated for the purposes of this Schedule as compensation in respect of the acquisition.“(3) The reference in sub-paragraph (2) to an amount paid under section 15 or 16 of the Compulsory Purchase Act 1965 (“the applicable section”) includes an amount paid under section 52ZA or 52ZB of the Land Compensation Act 1973 and taken into account by virtue of section 52ZC(7)(d) of that Act for the purposes of the applicable section.“(4) Additional compensation payable under this Schedule to a person in the person’s capacity as a mortgagee (or to a person exercising rights of a mortgagee) is to be applied towards the discharge of the sums secured by the mortgage.“(5) If there is no remaining sum secured by the mortgage, the additional compensation that would be payable as described in sub-paragraph (4) is instead payable to the person who is an eligible person by virtue of the interest that was subject to the mortgage. “(6) If the additional compensation that would be payable as described in sub-paragraph (4) exceeds the total of the remaining sums secured by the mortgage, the amount of the excess is instead payable to the person who is an eligible person by virtue of the interest that was subject to the mortgage.Successors-in-title
“5 (1) This paragraph applies if, had the compensation to which an eligible person was entitled in respect of the acquisition remained unpaid, the right to be paid it would now vest in some other person (assuming that it remained enforceable and any obligations in respect of the right had been complied with).(2) If the eligible person is still alive or in existence, the rights that the eligible person would have under this Schedule are exercisable by the other person and not by the eligible person.“(3) If the eligible person is no longer alive or in existence, the rights that the eligible person would have under this Schedule if that person were still alive or in existence are exercisable by the other person.“(4) The right exercisable by the other person under sub-paragraph (2) or (3) is subject to any restriction, condition or other incident to which the right vested in that person as imagined under sub-paragraph (1) would be subject.(5) Additional compensation paid to the other person by virtue of sub-paragraph (2) or (3) must be dealt with by the person in any way in which the person would have to deal with compensation paid to that person further to the right vested in that person as imagined under sub-paragraph (1).“(6) If a person is an eligible person by virtue of paragraph 4(1), the reference in sub-paragraph (1) to compensation to which the person was entitled is to be read as a reference to the compensation to which the person would have been entitled but for the mortgage.Consequential losses
(1) The relevant authority may by regulations provide for additional compensation payable on a claim under paragraph 1(5) to include (in addition to any amount payable under paragraph 2) an amount to make good qualifying losses.“(2) “Qualifying losses” are financial losses shown to have been suffered by an eligible person, or a person entitled to exercise the rights of the eligible person under paragraph 5, as a result of the compensation initially payable to the eligible person in respect of the acquisition being of the original amount rather than the alternative amount.“(3) In the case of an eligible person who is so by virtue of an interest that was subject to a mortgage, the reference in sub-paragraph (2) to compensation payable to the eligible person is to be taken to include compensation payable to the mortgagee of that interest.“(4) Regulations under this paragraph may limit the qualifying losses in respect of which additional compensation is payable under the regulations by reference to—(a) a description of loss,(b) an amount, or(c) any other circumstance.Procedure etc
7 (1) The relevant authority may by regulations make provision— “(a) about the procedure for applications under paragraph 1(2) or claims under paragraph 1(5) (including provision about the costs of such applications or claims);“(b) about steps that must be taken by the acquiring authority or the confirming authority for the purposes of publicising or giving notice of a direction for additional compensation;(c) for interest to be applied to amounts of additional compensation that are payable;(d) about how or when additional compensation (and any interest) is to be paid.(2) Regulations under this paragraph about costs of claims under paragraph 1(5)—“(a) may modify or disapply section 29 of the Tribunals, Courts and Enforcement Act 2007 (costs or expenses) or provisions in Tribunal Procedure Rules relating to costs;(b) may apply (with or without modifications) section 4 of this Act;and section 4 of this Act does not apply in relation to such a claim unless so applied.Regulations
8 (1) For the purposes of this Schedule “the relevant authority” is—(a) the Secretary of State, in relation to England;(b) the Welsh Ministers, in relation to Wales.(2) Regulations under this Schedule may make—“(a) consequential, supplementary, incidental, transitional or saving provision;(b) different provision for different purposes.(3) Regulations under this Schedule are to be made by statutory instrument.(4) A statutory instrument containing such regulations is subject to annulment in pursuance of—(a) a resolution of either House of Parliament, in the case of regulations made by the Secretary of State, or(b) a resolution of Senedd Cymru, in the case of regulations made by the Welsh Ministers.Interpretation
9 (1) In this Schedule—(a) “the confirming authority” means—(i) the person who confirmed the compulsory purchase order, or(ii) any successor to that person’s function of confirming compulsory purchase orders of the type in question;(b) references to “the acquisition” or “the compulsory purchase order” are to the acquisition or order by virtue of which paragraph 1 applies;(c) references to the acquisition of an interest in land include—(i) the creation of such an interest, and(ii) the acquisition or creation of a right in or over land;and references to interests in land are to be read accordingly.“(2) In the case of a compulsory purchase order made under section 10(1) of, and Part 1 of Schedule 4 to, the New Towns Act 1981 (compulsory acquisition by new town development corporation in usual cases), the reference in paragraph 1(4) to section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to paragraph 5A(2) of Schedule 4 to the New Towns Act 1981. “(3) In the case of a compulsory purchase order made under section 13(1)(a) of, and Part 1 of Schedule 5 to, the New Towns Act 1981 (compulsory acquisition by new town development corporation of statutory undertakers’ operational land)—(a) the reference in paragraph 1(4) to section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to paragraph 5A(2) of Schedule 5 to the New Towns Act 1981, and(b) the references in paragraph 1(4) and sub-paragraph (1)(a) to the confirmation of the order are to be read as references to the making of the order.(4) If—“(a) an interest in land is acquired further to section 154(2) of the Town and Country Planning Act 1990 (deemed compulsory acquisition further to blight notice), and(b) the land falls within paragraph 22 of Schedule 13 to that Act (land blighted by compulsory purchase order),“the interest is to be treated for the purposes of this Schedule as having been acquired further to the compulsory purchase order by virtue of which the land falls within that paragraph.”(3) In the New Towns Act 1981—(a) in Schedule 4 (procedure for compulsory acquisition by new town development corporation in usual cases), after paragraph 5 insert—“(1) A development corporation submitting an order to the Secretary of State under this Part of this Schedule may include in the order a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this paragraph apply.(2) The corporation must submit a statement of commitments together with the order.“(3) A “statement of commitments” is a statement of the corporation’s intentions as to what will be done with the project land should the acquisition proceed, so far as the corporation relies on those intentions in contending that the direction is justified in the public interest.(4) Those intentions must include the provision of a certain number of units of affordable housing.(5) The notice under paragraph 2(1) must—(a) state the effect of the direction, and(b) name a place where a copy of the statement of commitments may be seen at any reasonable hour.(6) The Secretary of State may permit the corporation to amend the statement of commitments before the decision whether to confirm the order is made.(7) But the Secretary of State may do so—“(a) only if satisfied that the amendment would not be unfair to any person who duly made or could duly have made an objection for the purposes of paragraph 4, and(b) only if the statement of commitments as amended will still comply with sub-paragraph (4).(8) If the Secretary of State decides to confirm the order under paragraph 3, the Secretary of State—(a) may confirm the order with the direction included if satisfied that the direction is justified in the public interest;(b) otherwise, must modify the order so as to remove the direction.“(9) If the order is confirmed with the direction included, the notice under paragraph 5 must— (a) state the effect of the direction,(b) explain how the statement of commitments may be viewed, and(c) explain that additional compensation may become payable if the statement of commitments is not fulfilled.(10) In this paragraph—“the project land” means—(a) the land proposed to be acquired further to the compulsory purchase order, and(b) any other land that the corporation intends to be used in connection with that land;“unit of affordable housing” means a building or part of a building that is—(a) constructed or adapted for use as a separate dwelling, and(b) is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or“(ii) housing of any other description that is prescribed.”;“(b) in Schedule 5 (procedure for compulsory acquisition by new town development corporation of statutory undertaker’s operational land), after paragraph 5 insert—““(1) A development corporation making an application under this Part of this Schedule may include in the application a request for a direction that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored); and if it does so the following provisions of this paragraph apply.(2) The corporation must submit a statement of commitments together with the application.“(3) A “statement of commitments” is a statement of the corporation’s intentions as to what will be done with the project land should the acquisition proceed, so far as the corporation relies on those intentions in contending that the direction would be justified in the public interest.(4) Those intentions must include the provision of a certain number of units of affordable housing.(5) The notice under paragraph 2 must—(a) state that the request has been made and what the effect of the direction would be, and(b) name a place where a copy of the statement of commitments may be seen at all reasonable hours.(6) The Secretary of State and the appropriate Minister may permit the corporation to amend the statement of commitments before the decision whether to make an order on the application is made.(7) But they may do so—“(a) only if satisfied that the amendment would not be unfair to any person who duly made or could duly have made an objection for the purposes of paragraph 3, and(b) only if the statement of commitments as amended will still comply with sub-paragraph (4). “(8) If the Secretary of State and the appropriate Minister decide to make an order on the application under paragraph 3, they may include the direction in the order only if satisfied that the direction is justified in the public interest.(9) If an order is made with the direction included, the notice under paragraph 5 must—(a) state the effect of the direction,(b) explain how the statement of commitments may be viewed, and“(c) explain that additional compensation may become payable if the statement of commitments is not fulfilled.(10) In this paragraph—“the project land” means—(a) the land proposed to be acquired further to the compulsory purchase order, and(b) any other land that the corporation intends to be used in connection with that land;“unit of affordable housing” means a building or part of a building that is—(a) constructed or adapted for use as a separate dwelling, and(b) is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or“(ii) housing of any other description that is prescribed.”“(4) In section 157 of TCPA 1990 (special provisions as to compensation for acquisitions further to blight notices), before subsection (1) insert—“(A1) Where—(a) an interest in land is acquired in pursuance of a blight notice,(b) the interest is one in respect of which a compulsory purchase order is in force, and(c) the order directs that compensation is to be assessed in accordance with section 14A of the Land Compensation Act 1961,“the compensation payable for the acquisition is to be assessed in accordance with that direction and as if the notice to treat deemed to have been served in respect of the interest under section 154 had been served in pursuance of the compulsory purchase order.””Member’s explanatory statement
This new Clause allows a Minister confirming a compulsory purchase order to direct, in certain cases involving affordable housing, health or education, that compensation should be assessed on the basis that no new planning permission would be granted for the land. It also allows the effect of that direction to be reversed if the land is not subsequently used as planned.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 22nd May 2023 Lords Chamber

Even if a high street has been fortunate enough to gain some of the money from the various bidding rounds in the several pots to spruce it up, the sad fact is that the key factor for a high street to be viable is that its residents have enough money in their pockets to go out and spend. Sadly, this is not the case for many towns where levelling up is needed, wanted and has been promised. As for vacant shops, full reform of business rates would be a bigger contributor to reducing empty properties than targeting landlords. I, for one, would be up for a little target practice, and I broadly welcome this part of the Bill.

[Baroness Scott of Bybrook (Con)]

My Lords, I start by addressing Amendments 415, 416 and 417 in the name of the noble Baroness, Lady Taylor of Stevenage. Clause 176 sets out the criteria and conditions that must be met before high street or town centre designation can be made. Local authorities are uniquely placed to make this designation based on their deep knowledge of their area and we must empower them to do so. The needs of both local people and local businesses may have also been considered by local authorities in the development of their local plans and regeneration programmes. These amendments add complexity and burdens for local authorities, so the Government are not able to support them, or Amendment 437, which is consequential on 415 and 417.

Amendment 418 in the name of the noble and learned Lord, Lord Etherton, seeks to clarify what is meant by “occupied” for the purpose of assessing the vacancy condition. Clause 178(4) is aimed at excluding occupation by trespassers or property guardians for the purpose of this assessment. Amendment 418 would refine that position so that this type of occupation can count where the landlord is taking steps to remove such occupiers through possession proceedings. The Government see these exclusions as necessary to ensure the policy aims of filling commercial premises for high street uses. We also consider it reasonable to expect landlords to keep their premises secure to prevent squatters, or to take court action where necessary. The Government recognise that there may be more complicated cases of trespassers, but we also consider that many local authorities are unlikely to conduct a high street rental auction on a property that has such complications. While the Government do not feel able to support this amendment at this time, I would add that we do recognise that there may be many challenges caused to landlords by trespassers. We trust local authorities to use these permissive powers sensibly where there are complications caused by certain types of trespassers. I have listened to the noble and learned Lord, and I will give his amendments further consideration.

Amendments 419 and 424, in the name of the noble Baroness, Lady Hayman of Ullock, seek to remove the Henry VIII powers for the Secretary of State to alter the circumstances of vacancy, and the flexibility within grounds of appeal, which are set out in Schedule 16. This power may be needed in future in the light of experience in operation: for example, to alter the vacancy period to ensure that it is targeting the right premises and can respond to changing market conditions; or, in the case of grounds of appeal, where there may be a need to increase the safeguards available to landlords, or to revise these grounds where they are found to undermine effectiveness. We appreciate the importance of parliamentary scrutiny regarding the grounds of appeal, and any amendment will be subject to the affirmative procedure. In the light of that, the Government are not able to support this amendment.

Amendment 420 amends the local benefit condition in Clause 179 so that a property can be let only if it supports regeneration. Currently, the local benefit condition will be satisfied if the local authority considers that occupation of the premises for a suitable high street use would be beneficial to the local economy, society or environment. The local benefit condition is framed by reference to aims that are usually associated with regeneration. Another statutory example demonstrating the use of similar language is Section 226 of the Town and Country Planning Act 1990. We wish to avoid introducing further considerations for local authorities, inadvertently narrowing the scope; so the Government cannot support this amendment.

Amendments 421 and 423 reduce the period after which an initial letting notice would expire and the period of time after which a final letting notice can be issued. We consider that making the process too quick will place an unreasonable strain on local authorities that are looking to exercise these powers. We also do not consider that these reduced timescales will provide the landlord with a reasonable amount of time to let the premises themselves and, in appropriate cases, to work with the local authority, increasing the risk that high street properties go through the auction process unnecessarily.

Amendment 422 would prevent landlords from transferring premises between related entities while an initial letting notice was in force. An initial letting notice is not affected by any change in landlord, as made clear by Clause 199(7). We do not want high street rental auctions to prevent landlords from selling their interest in the property, provided that the initial letting notice continues to bind.

Amendment 426, in the name of the noble Earl, Lord Lytton, would add a further ground for appeal against the use of a high street rental auction. Schedule 16 sets out the grounds on which a landlord can appeal against a final letting notice. The amendment would require local authorities to consider whether a landlord had taken reasonable steps to rent the property before undertaking a high street rental auction, preventing them from taking place where a landlord has done so. The amendment would introduce a complex test which could place significant burdens on a local authority and would likely discourage use and lead to it becoming ineffective. There is already a wide range of grounds for appeal, which ensures fairness for landlords. The amendment also raises matters that should feed into a ground of appeal, such as planning. These matters are already being given careful consideration by the Government. In the case of planning, the Government are currently consulting on extending permitted development rights.

Amendment 427 would require that regulations relating to the rental auction process were laid within 90 days of Royal Assent. Clause 188 sets out the principles of the rental auction process. Significant detail in relation to the process will need to be provided, which will be more appropriately dealt with through regulations. While we will make regulations as soon as possible, it is not possible to commit to a timeline of 90 days because the regulations will be informed by extensive engagement with the sector, which will then need to be reflected in the drafting of those regulations. The Government are therefore not able to support this amendment.

On Amendment 429, we consider it more appropriate to provide landlords with a general entitlement to seek compensation for damage where local authorities have exercised their power of entry and to let the Upper Tribunal decide whether there are any circumstances affecting the landlord’s entitlement to compensation, rather than providing specific exemptions. That is the approach adopted in other legislation, such as the compensation provisions in Section 176 of the Housing and Planning Act 2016, which relate to the power to enter and survey land. The Government do not feel able to support this amendment.

On Amendment 430, I assure noble Lords that high street rental auctions are being designed to minimise costs incurred by local authorities by streamlining the process and through distributing the costs across landlords and tenants. We agree with the intention of the amendment, which is why the high street rental auction consultation contains questions relating to the distribution of the associated costs and details of a standardised lease, and it would be inappropriate to pre-empt the result of the consultation. We are also making up to £2 million of funding available for support with the costs of rental auctions, and full details of this will be announced in due course. The Government are therefore not able to support this amendment.

On Amendments 431, 432, 433, 434, 435 and 436, the measures in the Bill seek to support lively high streets with activity that attracts people and businesses and avoids long-term vacancies, complementing existing government support that directly addresses the concerns raised in these amendments. There is support available to regenerate high streets, including £3.6 billion-worth of investment in the towns fund, a £4.8 billion investment in the levelling-up fund and a £2.6 billion investment in the shared prosperity fund. That is together with the £13.6 billion support package, announced in the Budget this year, to protect ratepayers facing bill increases over the next five years.

The High Streets Task Force continues to provide essential support to local leaders, with 123 local authorities having received expert advice in topics such as place-making and planning. I recognise that these amendments highlight key issues faced by many of our high streets, but I hope I have provided enough reassurance that these concerns are, or will be, addressed through current government actions.

Finally, in response to the noble Baroness, Lady Fox—

[Baroness Pinnock (LD)]

I apologise to the Minister for interrupting, but before she sits down, can she address this point? One of the key arguments made—in that group of amendments to which the noble Baroness referred—by the noble Baroness, Lady Hayman of Ullock, and by myself and my noble friends Lord Shipley and Lady Thornhill, was about the huge disparity in business rates between online retailers and high street town centre retailers. I will repeat a comparator that I have mentioned previously. A well-known online retailer—not many miles distant from me—pays £45 per square metre in business rates on its premises, whereas a small town high street shop near me pays £240 per square metre. It is that vast difference that is penalising our town centre shops. This is the heart of the problem that this clause is trying to address, and we are supportive of that—but unless we deal with this big difference, nothing much will change. I would be glad to hear from the Minister what the Government intend to do about business rates.

[Baroness Scott of Bybrook (Con)]

We are simplifying the issue of the high street. I have listened a number of times to what has been said about business rates, and I have explained how much the Government are putting in to supporting properties in the high street through the revaluation process, et cetera. The Government provide rate relief to help property owners all the time, but the issue of empty properties in the high street is much more complex than that, so there are a number of things we want to address, and one of them is what we are doing in this Bill.

I was saying that I will write to the noble Baroness, Lady Fox, because I would like some further information from the Department for Transport.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank all noble Lords who have taken part in this debate, which covered an important part of the levelling-up agenda. I am just thinking about the Minister’s comments. A number of times she said that it was not appropriate to accept the amendment at the moment because it pre-empted the findings of the consultation that was going on. I have said this before, but I think it would be helpful if legislation were brought forward after consultation, rather than during or before it, because that consultation could then inform the legislation. It just seems a bit backwards, as if it is around the wrong way.

Also, there are the levelling-up funds, the towns fund and various other funding pots, but they do not necessarily always go to the most needy or provide the long-term support that is needed. It is how we provide that long-term change that is important. Too often there are sticking plasters with bits of pots of money.

Workington is obviously a town near me; I used to be the Member of Parliament for Workington in the other place. An industry report by planning consultancy Marrons showed that Workington was near the bottom of the 360 provincial towns that it looked at. It has had some funding recently, for example from the levelling-up fund, and we are of course grateful for that, but the money is going to be spent on improving key routes, bringing in new cycling routes and building a new café. Well, that is lovely, but it will not solve the fact that Debenhams and Laura Ashley have gone. If people find they do not need to come into the town centre because those key shops have now closed, they are more likely to go somewhere else to shop. We really need to look at this in a much broader way. Again, that is why business rates are so very important and they are one of the main sticking points.

Again, on the issues around corporate landlords and pension funds, I absolutely agree with everything the noble Baroness, Lady Thornhill, said on those. We are pleased that the Government are looking to do something about empty shop units. As an example from where I used to live, two shops next door to each other are owned by the same landlady and have been empty for over 20 years, purely and simply because when her shops failed she did not want to let them out to anybody else. So the fact that the Government are trying to do something about this is important, but it has to be done with the support of local authorities and the local community and it has to be done in a way that genuinely makes a difference. It is also important, as other noble Lords have said, that we do not end up with exploitable loopholes or unintended consequences but do have proper oversight. Having said that, I beg leave to withdraw my amendment.

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Moved by

[Baroness Scott of Bybrook]

438A: Before Clause 204, insert the following new Clause—
“Power to require provision of certain classes of information(1) Regulations may require the provision of information that is within the scope of a permitted purpose.(2) So far as the regulations are to extend to England and Wales, the permitted purposes are—(a) the beneficial ownership purpose (see section (The beneficial ownership purpose)),(b) the contractual control purpose (see section (The contractual control purpose)), and(c) the national security purpose (see section (The national security purpose)).(3) So far as the regulations are to extend to Scotland or Northern Ireland, the only permitted purpose is the national security purpose.(4) Regulations under this section must, for each requirement they impose, specify—(a) the person on whom the requirement falls,(b) the occurrence or circumstances that gives or give rise to the requirement,(c) the time limit for complying with the requirement, and(d) the person to whom the required information is to be provided.(5) The occurrence or circumstances specified under subsection (4)(b)—(a) must, in the case of a requirement to provide information within the scope of the national security purpose, and(b) in any other case may,be (or include) the giving of a notice in accordance with the regulations to the person on whom the requirement falls.(6) In relation to such cases, the regulations may also make provision deeming notice to have been given at a certain time in certain circumstances.(7) The person specified under subsection (4)(d) must be—(a) the Chief Land Registrar, or(b) another person exercising public functions on behalf of the Crown.(8) Regulations under this section may—(a) make provision about how information is to be provided (including provision requiring it to be provided by electronic means specified in the regulations);(b) provide for, or make provision about, the application of the regulations to persons outside, or information held outside, the United Kingdom; (c) relate to things done or arising before the coming into force of this section.”Member's explanatory statement
This new Clause and the other new Clauses in the Minister’s name before Clause 204 recast the powers in Part 11 so as to make them exercisable only for stated purposes (along with other minor changes).

[Baroness Scott of Bybrook (Con)]

My Lords, I am pleased to introduce government Amendments 438A, 440ZA, 440ZC, 440B and 440E, which provide clarity and certainty about how the powers relating to interests and dealings in land can and will be used.

First, the Secretary of State will have the ability to require by regulations the disclosure of beneficial ownership information, where it is not already available. These changes will supplement and reinforce the current transparency regime. Secondly, the amendments give the Secretary of State the ability to create regulations to require information on certain arrangements which control land, short of outright ownership. This will enhance the available information on those arrangements. Thirdly, the amendments would allow regulations to enable the Secretary of State to require certain details of ownership and control about a property, where it appears to the Secretary of State that there is a national security threat linked to that property. That could apply, for example, to critical national infrastructure or sensitive sites.

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[Baroness Hayman of Ullock (Lab)]

My Lords, I have a couple of amendments in this group. We have heard that Part 11 sets out a framework for creating powers to require disclosure of certain relevant information relating to ownership and control of land in England and Wales, including transactional information. Of course, if this is implemented, it is another significant layer of disclosure around land ownership and control in England and Wales, supplementing the information that is currently held or is going to be held in a number of public registries. It appears that the Government’s ultimate goal here is to ensure transparency around land ownership and control in England and Wales. We would support this aim.

My Amendment 440 probes the retrospective application of this section. As drafted, the provisions could require the disclosure of information relating to events prior to the enactment of the Bill. Clause 206(4) says:

“Regulations under section 204 or 205 may relate to things done or arising before the coming into force of this Part”.


This amendment probes the benefits of doing this retrospective application and what the Government are aiming to achieve through this.

My second amendment, Amendment 439, probes how local communities can request land ownership information. It would be really helpful if the Minister could provide a bit more information for us to understand how communities are expected to access this information and how that fits in with the role of the Secretary of State.

I thank the Minister for her thorough introduction to the government amendments. Amendments 438A, 438B, 438C, 438D and so on insert clauses before Clause 204. They

“recast the powers in Part 11 so as to make them exercisable only for stated purposes”.

Do these provisions apply to government agencies, such as Homes England, as well? If conditions are attached, they can get in the way when regeneration schemes are being considered. It would be good to have some clarification on that point.

We would support the noble and learned Lord, Lord Hope of Craighead, in what he is trying to achieve in Amendment 440A. If the Minister could either provide clarification to the noble and learned Lord or look at tightening up the wording, as he suggests, that would be extremely helpful.

[Baroness Scott of Bybrook (Con)]

My Lords, in response to Amendment 439 in the name of the noble Baroness, Lady Hayman of Ullock, I confirm that it will be in the public interest for some of the information that is collected to be published. For example, we intend to publish data on arrangements such as option agreements that developers and others have over land. However, there is some information that we will not be able to publish, so we need to strike the balance between transparency, legitimate privacy, confidentiality and practical or security considerations. Therefore, some information will be shared only

“with persons exercising functions of a public nature, for use for the purposes of such functions”.

At this stage, I want to answer a couple of questions from the noble Baroness, Lady Pinnock. She asked why we need beneficial ownership. We believe that the property market in England and Wales should be fair and transparent. A lack of transparency can make it hard to identify rogue landlords, the owners of empty properties and those liable under the Building Safety Act, and it can leave the market vulnerable to criminal activity. We believe that this will deter individuals from using complex structures to obscure ownership of property, and it will provide criminal offences and sanctions for failure to comply.

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Moved by

[Baroness Scott of Bybrook]

438B: Before Clause 204, insert the following new Clause—
“The beneficial ownership purpose(1) Information is within the scope of the beneficial ownership purpose if it appears to the Secretary of State that the information would be useful for the purpose of— (a) identifying persons who are beneficial owners of land in England or Wales, or(b) understanding the relationship of those persons with the land that they beneficially own.(2) For the purposes of this section, a person beneficially owns land if either of the following subsections applies.(3) This subsection applies where—(a) the land is owned by a body corporate or partnership, and(b) the person is, in relation to that body corporate or partnership, a beneficial owner within the meaning given by regulation 5 of the Money Laundering Regulations.(4) This subsection applies where—(a) the land is owned as part of—(i) a trust, foundation or similar legal arrangement, or(ii) the estate of a deceased person in the course of administration, and(b) the person is, in relation to that trust, foundation, arrangement or estate, a beneficial owner within the meaning given by regulation 6 of the Money Laundering Regulations.(5) In this section—(a) expressions that are also used in regulation 5 or 6 of the Money Laundering Regulations have the same meaning as in that regulation;(b) references to ownership of land (except references to beneficial ownership) are to the legal ownership of a freehold or leasehold estate in the land;(c) “the Money Laundering Regulations” means the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692).”Member's explanatory statement
See the explanatory statement for the first new Clause in the Minister’s name before Clause 204.

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Moved by

[Baroness Scott of Bybrook]

439A: Clause 205, page 239, line 16, leave out “Regulations may require the provision of” and insert “The information that may (if it falls within the scope of a permitted purpose) be required to be provided under section (Power to require provision of certain classes of information) includes”
Member's explanatory statement
This amendment makes it clear that details of transactions involving land can be obtained under Part 11 (notwithstanding the recasting of the powers of that Part by the new Clauses in the Minister’s name before Clause 204).

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Moved by

[Baroness Scott of Bybrook]

440ZA: Clause 207, page 240, line 13, leave out “section 204 or 205” and insert “section (Power to require provision of certain classes of information)”
Member's explanatory statement
This amendment is consequential on the first new clause in the Minister’s name before clause 204.

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Moved by

[Baroness Scott of Bybrook]

440B: Clause 207, page 240, line 24, leave out “section 204 or 205” and insert “section (Power to require provision of certain classes of information)”
Member's explanatory statement
This amendment is consequential on the first new Clause in the Minister’s name before Clause 204.

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Moved by

[Baroness Scott of Bybrook]

440C: After Clause 207, insert the following new Clause—
“Offences(1) A person who, without reasonable excuse, fails to comply with a requirement imposed under section (Power to require provision of certain classes of information) commits an offence.(2) A person commits an offence if—(a) the person provides information in response to a requirement imposed under section (Power to require provision of certain classes of information),(b) the information is false or misleading in a material particular, and(c) the person knows that the information is false or misleading or is reckless as to whether it is. (3) But an offence under this section is committed under the law of a given jurisdiction only if the requirement in question is imposed by regulations extending to that jurisdiction.(4) A person who commits an offence under subsection (1) is liable—(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the maximum term for summary offences or a fine (or both);(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding level 5 on the standard scale (or both);(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding level 5 on the standard scale (or both).(5) In subsection (4)(a), “the maximum term for summary offences” means—(a) if the offence is committed before the time when section 281(5) of the Criminal Justice Act 2003 comes into force, 6 months;(b) if the offence is committed after that time, 51 weeks.(6) A person guilty of an offence under subsection (2) is liable—(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);(d) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).(7) If—(a) an entity within subsection (8) commits an offence under this section, and(b) a person who is, or is purporting to act as, a relevant officer of the entity authorises or permits, participates in, or fails to take all reasonable steps to prevent the commission of the offence,that person also commits the offence.(8) The entities within this subsection are those specified in the first column of the following table; and “relevant officer”, in relation to such an entity, means a person acting in a capacity specified in the corresponding entry in the second column.

Entity	“Relevant officer”
A company.	A director, manager, secretary or similar officer.
A partnership.	A partner.
A body corporate (other than a company) or unincorporated body whose affairs are managed by a governing body.	A member of the governing body.
A body corporate (other than a company) or unincorporated body whose affairs are managed by its members.	A member.

(9) An offence under this section committed under the law of Scotland by a person outside Scotland may be prosecuted in— (a) a sheriff court district in which the person is apprehended or in custody, or(b) a sheriff court district determined by the Lord Advocate,as if the offence had been committed in that district (and in that event the offence is for all incidental or consequential purposes deemed to have been committed in that district).(10) In subsection (9), “sheriff court district” is to be read in accordance with section 307(1) of the Criminal Procedure (Scotland) Act 1995.”Member's explanatory statement
This new Clause provides offences of non-compliance with regulations under Part 11.

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Moved by

[Baroness Scott of Bybrook]

440D: Clause 208, page 240, line 27, leave out subsections (1) and (2)
Member's explanatory statement
This amendment removes provision superseded by the new Clause in the Minister’s name after Clause 207.

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Moved by

[Baroness Scott of Bybrook]

440F: Clause 209, page 241, leave out lines 11 and 12
Member's explanatory statement
This amendment removes a definition that is no longer required as a result of the new Clauses in the Minister’s name before Clause 204.

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Moved by

[Baroness Scott of Bybrook]

440H: Clause 209, page 241, line 21, leave out “England and Wales” and insert “the United Kingdom”
Member's explanatory statement
See the explanatory statement for the second amendment in the Minister’s name to Clause 209.

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Moved by

[Baroness Scott of Bybrook]

467B: Clause 214, page 246, line 3, leave out “(6)” and insert “(6A)”
Member’s explanatory statement
This amendment is consequential on the amendment in the Minister’s name inserting new subsection (6A) into Clause 214.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 467B and 467C address consequential amendments to the marine licensing cost recovery powers. Clause 214 gives the Secretary of State fee-charging powers for post-consent marine licence monitoring, variations and transfers. We are now adding a consequential amendment to clarify the position where there is an overlap between the general post-consent marine licensing fees and oil and gas marine licensing fees for the same activity, to provide that the oil and gas fees will apply in those circumstances.

Amendments 467D, 467E, 504GK, 504M, 509D and 513 will support the Government’s response to the eventual recommendations from the Grenfell Tower inquiry. The Building Safety Act 2022 set up the building safety regulator and its functions within the Health and Safety Executive. We continue to support the Health and Safety Executive in delivering these new functions, and I take this opportunity to thank it for its work over the last two years. To future-proof the building safety regulator and its critical work and protect the other important work of the Health and Safety Executive, the Government consider it essential that we have the option to move the building safety regulator to an existing or new body in the future. This will allow the Government to respond quickly, if needed, to the Grenfell Tower inquiry, which we expect to be published at the end of this year. I recognise that there will be concerns about how broad these powers are. To provide reassurance, the powers are affirmative and include a 24-month sunset provision, which can be extended only if needed and only after Parliament’s consideration.

In speaking to Amendment 467F, which introduces a new clause after Clause 214, I will speak also to Amendments 509C, 504N and 514. This new clause addresses a concern of schools that occupy premises held on special trusts for the purposes of those schools. Local authorities have a discretionary power to provide premises for academies, but there is currently no requirement to transfer the land, as exists for maintained schools. Instead, the local authority tends to offer the academy trust company a lease. If trustees hold particular premises specifically for a school and the school moves to other premises, they cannot carry out the purpose of their charity if nothing else is done, as their premises end up without a school.

The new clause ensures more consistent treatment across the system, where the local authority must transfer the new premises it is providing to the charitable school trustees. In exchange, the trustees must pay the local authority the proceeds of sale from the existing premises—or, if the local authority agrees, the trustees can simply transfer the existing premises to it.

I turn to Amendment 504HA. In the light of the successful passage of the Historic Environment (Wales) Bill through the Senedd Cymru, the Government are giving further consideration to the approach to the power under paragraph 7(2) of the new schedule to be inserted after Schedule 15 by government Amendment 412B. As such, I do not intend to move Amendment 504HA at this time.

Lastly, I turn to Amendments 504K and 504L. The United Kingdom faces constant threats to its national security, as Russia’s invasion of Ukraine has made us all too aware. These amendments will ensure that Ministers can require information about properties that may be used to threaten national security, wherever they are in the United Kingdom.

I beg to move.

[Lord Stunell (LD)]

My Lords, I want to comment on and ask some questions about the amendments in this string that relate to the building safety regulator: Amendments 467D, 467E, 504GK, 504M, 509D and 513. The Minister somewhat skated over their significance; I have some serious questions to ask. It is worth pointing out that these amendments tabled by the Government are so out of scope that one of the amendments is seeking to extend the Bill’s scope so that they can be included.

Briefly, these amendments would give the Secretary of State powers to scrap the building safety regime set up by the Building Safety Act, which was passed just 12 months ago. That regime, with a new building safety regulator under the auspices of the Health and Safety Executive, was a specific and central recommendation of the Hackitt review, which the Government accepted in full at the time and which had the sustained support of your Lordships’ House at every stage of the Bill’s passage. There was criticism of that Bill as it went through this House but it centred on the inadequate compensation provisions and the uncertainty created by the delay in bringing the regulatory regime fully into force, which does not actually happen until later this year. No concerns were expressed about the regulatory mechanism being set up.

The 18-month delay in the coming into force of that regulator was said by the Government at the time to be necessary to allow time for the regulator to set up shop and because of the need for the construction industry to train up qualified personnel and then deliver, in accordance with the regulator’s requirements. Bringing the building regulation system under the Health and Safety Executive was warmly welcomed on all sides. Again, the criticism was that its reach was too limited and should not be confined to high-rise and high-risk buildings; it was said that the regulator’s remit should be expanded. No voice was raised that this was the wrong model, still less that it was unfit for the essential job of upgrading building standards drastically and rapidly following the Grenfell Tower fire.

Last year, the Government resisted the expansion of the regulator’s role on the grounds that it had to learn to walk before it started to run. Since the regulator was appointed, multiple workstreams and training programmes have begun throughout the construction industry in what is undoubtedly one of the most challenging catch-up operations that it has ever faced. The industry has faced up to it because of the unflinching, no-holds-barred approach of the regulator—strongly supported, of course, because of the certainty that primary legislation gives it—means that it had no choice. There is no risk—or, in some quarters of the construction industry, no hope—of the regulator going soft over time because it is there through primary legislation with a very strong remit.

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Lastly, I want to thank the Bill manager. He sent me a very helpful email explaining Amendment 504HA, so I put my thanks to him on the record.

[Baroness Scott of Bybrook (Con)]

I thank noble Lords for that interesting debate on the government amendments. The noble Lord, Lord Stunell, asked why this measure is necessary. The Health and Safety Executive has a strong identity and a regulatory background focusing on safety. That is why it was well positioned in 2020 to deliver the building safety regulator quickly, and why the Building Safety Act specified that the Health and Safety Executive—which, I say to the noble Earl, Lord Lytton, comes under the DWP—would be that regulator.

However, it is clear from the evidence given to the Grenfell Tower inquiry that the Government must provide stronger stewardship across the wider built environment, addressing safety alongside issues such as housing standards and the intergenerational impact of new buildings. That may require longer-term reform and could impact on building-related regulatory functions that are currently spread across multiple regulators and arm’s-length bodies. The Government must continue to consider the best vehicle to deliver that intent.

That does not affect the ambitious timeline for the building safety regulator. That is important work. We expect the regime to be fully operational by April 2024 and are determined not to impact on that programme. I say again that we are grateful to the Health and Safety Executive for all that it has done to bring this regime to life.

[Lord Stunell (LD)]

I ask the Minister to consider the timeline a little more carefully. If the current regulator is not going to be in full flow until April next year, and if the Grenfell inquiry’s final report comes—as she suggested it would—some time next year, are the Government confident that they can maintain a viable building safety regulatory operation using the existing structure based on the HSE, properly staffed and properly led, through that transition period? Is she further satisfied that a two-year window following the publication of the Grenfell Tower final report is sufficient to undertake the very wide-ranging review that she has just been outlining? Would it not make more sense to pause that process and, once the Grenfell Tower inquiry’s report is received, take a measured look at all those together and produce a further Bill in good time, with proper consideration by your Lordships?

[Baroness Scott of Bybrook (Con)]

No, my Lords, because we are not actually putting anything in place in this Bill. We are giving the Secretary of State the opportunity to do so if the Grenfell Tower inquiry comes out with something that it requires. I have no doubt that the building safety regulator will continue to work as it has always worked—with professionalism —to deliver that, and I am not hearing any issues from the building safety regulator.

The noble Lord, Lord Stunell, asked why these measures were not included in the 2022 Act. The Government recognised the need for major reform of the building safety regime to be delivered as quickly as possible, following the tragedy of Grenfell. The priority is now delivering this new regime effectively while remaining open to going further and faster wherever any evidence makes it clear that we should do so. We are just making sure that we are ready if the inquiry decides that we need to.

The noble Lord, Lord Stunell, mentioned transition, and of course it is important that, if there is to be another system, there is a good transition. The regulations will be taken through the affirmative procedure, as set out in these amendments, in close consultation with the HSE, and we will work with Parliament to ensure that they are delivered in a seamless and exemplary manner.

[Lord Stunell (LD)]

I am sorry to trespass on the time of the Committee, but can the Minister give a clear understanding that the existing complete independence of the building safety regulator will be maintained when the Government come up with their new alternative? I remind her that considerable time was spent in this Chamber safeguarding the professional independence of the regulator and freeing it from the possibility of interference, by either the Government or other bodies.

[Baroness Scott of Bybrook (Con)]

What I can assure the noble Lord of is that, if we do have to go down this route, both Houses of Parliament will have a say in that. I am sure that we will have long debates on it. The noble Lord also asked about accountability to the House. As I have said, the powers will be made under the affirmative procedure to ensure that the House is given full and proper opportunity to scrutinise any proposals if they come in due course.

The noble Earl, Lord Lytton, brought up the concerns raised by the Delegated Powers and Regulatory Reform Committee in its 31st report of this Session. I reassure noble Lords that the powers that we are seeking to take in Amendment 467D are intended to allow us to change only the home of the building safety regulator, as created by the Building Safety Act. There is no intention or plan for fundamental policy change in that.

Moving on, the noble Baroness, Lady Pinnock, asked whether Amendment 467F was entirely about schools with religious foundations. There are also non-religious schools that have these charitable site trustees. We are not talking about academy trusts here: we are talking just about the charitable site trustees. They are mainly religious, but there are others that are not.

The noble Baroness, Lady Pinnock, also asked whether the trust required proceeds from the original premises to fund—no, I am sorry, this is something that I asked. It might be interesting to the noble Baroness that, if the trust required proceeds from the original premises to fund new schools, I was concerned about that. It has been made clear to me that capital funds come from local authorities where there is a need to provide sufficient school places, so I hope that will also put the noble Baroness’s mind at rest.

I was asked where the local authority fits into this. It will be in no worse a position than if the same schools had relocated as maintained schools or as foundation and voluntary schools, where the local authority would be obliged to provide the new site and transfer it to the trustees. Land would be held for the purposes of the academy, with appropriate protections for public value, including that the land could ultimately return to the authority if in future it is no longer needed for a school, so the local authority is protected on that.

The noble Baroness also asked whether it is a compulsory swap and what local consultation there would be for the local authority on the swap. It would be a compulsory swap only if the trustees are being asked to surrender their interest in the current site in exchange. We would expect such arrangements to occur only after the usual processes for relocating a school, which would include consultation and a consideration of the impact of moving places from one site to the other. All those issues would have been looked at.

The noble Baroness, Lady Hayman of Ullock, asked whether—I cannot read this.

[Baroness Hayman of Ullock (Lab)]

Just send it to me.

[Baroness Scott of Bybrook (Con)]

It was about giving the HSE some other responsibility.

[Baroness Hayman of Ullock (Lab)]

I asked about resources.

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[Baroness Scott of Bybrook (Con)]

We are not placing further responsibilities on to the Health and Safety Executive. The intention is purely to allow the Government to move building safety functions from the HSE to another body in future, if that is needed. That is the important thing.

I think that I have answered all the questions but I will look in Hansard. If I have not, I will certainly write to noble Lords.

Amendment 467B agreed.

Moved by

[Baroness Scott of Bybrook]

467C: Clause 214, page 247, line 10, at end insert—
“(6A) In section 110A (fees: oil and gas activities for which marine licence needed), in subsection (4)—(a) after “67,” insert “72(3), 72(7) or 72A(2)(a) or (b),”;(b) after “67(2)” insert “or 72A(4)”;(c) after “67(5)” insert “or 72A(6)”.”Member’s explanatory statement
This amendment makes amendments to section 110A of the Marine and Coastal Access Act 2009 (“the 2009 Act”) to clarify the interaction between the different fee charging powers under the 2009 Act in consequence of the expansion of the Secretary of State’s fee charging powers under the 2009 Act by Clause 214.

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Moved by

[Baroness Scott of Bybrook]

467D: After Clause 214, insert the following new Clause—
“Power to replace Health and Safety Executive as building safety regulator(1) The Secretary of State may by regulations make provision for a body (“the new regulator”) to replace the Health and Safety Executive as the building safety regulator for the purposes of the Building Safety Act 2022.(2) The new regulator may be—(a) a body established by the regulations, or(b) another body specified in the regulations.(3) The Secretary of State may by regulations make further provision in connection with subsection (1), including provision—(a) conferring new functions on, or modifying existing functions of, the new regulator;(b) establishing or modifying the constitutional arrangements of the new regulator;(c) establishing or modifying the funding arrangements of the new regulator;(d) conferring a power on the Secretary of State to give directions to the new regulator.(4) Regulations under this section may amend, repeal or revoke any provision made by or under an Act.(5) No regulations may be made under this section after—(a) the end of the period of 24 months beginning with the day on which the final report of the Grenfell Tower Inquiry is presented to Parliament in accordance with section 26 of the Inquiries Act 2005, or(b) such later time as may be specified or described by the Secretary of State in regulations made before the end of that period. (6) In this section—“constitutional arrangements” , in relation to the new regulator, include matters relating to—(a) the name and status of the body;(b) the chair, members and staff of the body (including qualifications and procedures for appointment and functions);(c) the body’s powers to employ staff;(d) remuneration, allowances and pensions for the body’s members and staff;(e) governing procedures and arrangements (including the role and membership of committees and sub-committees);(f) reports and accounts (including audit);“funding arrangements” , in relation to the new regulator, include provision for it to be funded by a Minister of the Crown and the extent of such funding;“Grenfell Tower Inquiry” means the public inquiry into the fire at Grenfell Tower on 14 June 2017 as set up on 15 August 2017 for the purposes of section 5 of the Inquiries Act 2005;“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.”Member's explanatory statement
This new Clause provides a power for the Secretary of State to replace the Health and Safety Executive as the building safety regulator and a power to make further provision in connection with such regulations. The regulations must be made before the end of 24 months from the day the final report of the Grenfell Tower Inquiry is presented to Parliament, or such later time as may be specified in regulations made before the end of that period.

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Moved by

[Baroness Scott of Bybrook]

467G: After Clause 214, insert the following new Clause—
“Open access mapping(1) The Countryside and Rights of Way Act 2000 is amended as follows.(2) After section 9 (maps in conclusive form) insert—“9A Review of maps (England)(1) This section applies where a map has been issued in conclusive form for the purposes of this Part in respect of any area in England.(2) Natural England must before 1 January 2031, to the extent that they consider appropriate, carry out a review of whether—(a) any land shown on that map as open country or registered common land is open country or registered common land at the time of the review, and(b) any land in that area which is not so shown ought to be so shown.(3) Regulations may require Natural England to carry out subsequent reviews, in respect of such matters and in respect of such circumstances as may be prescribed.”(3) In section 10 (review of maps)—(a) at the end of the heading insert “(Wales)”;(b) in subsection (1), after “area” insert “in Wales”;(c) in subsection (2), for paragraphs (a) and (b) substitute—“(a) in the case of the first review, not more than ten years after the issue of the map in conclusive form, and(b) in the case of subsequent reviews, not more than fifteen years after the previous review.”(4) In section 11 (regulations relating to maps)—(a) in subsection (2), after paragraph (j) insert—“(ja) the procedure to be followed on a review under section 9A (including provision as to the period within which, and the manner in which, representations may be made to Natural England in relation to such a review),”;(b) after subsection (3) insert—“(3A) Regulations made by virtue of subsection (2)(ja) may make provision—(a) for appeals in relation to a review, including by making provision applying, or corresponding to, any provision of, or made under, Schedule 1A to the National Parks and Access to the Countryside Act 1949 (coastal access reports) (with or without modifications);(b) enabling Natural England to make a determination in preparing a map on a review that any boundary of an area of open country is to be treated as coinciding with a particular physical feature (whether the effect is to include other land as open country or to exclude part of an area of open country).””Member's explanatory statement
This amendment inserts a new provision into the Countryside and Rights of Way Act 2000 to make provision about when Natural England must carry out reviews following the issue of a map of any area in England in conclusive form, and the matters that such a review must cover. The amendment also makes provision for regulations to set out the procedure on a review and makes consequential amendments.

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I do not want to repeat all the arguments made by the noble Baroness, Lady Hayman of Ullock, in favour of regional banking, except to say that I agree with her. I hope that, when the Minister responds, she will be able to say how important it is for levelling up—which, funnily enough, is what this Bill should be about—to have a way in which there is better access to capital by a bank which understands the regional economy and understands the businesses that work within that region and how they can better perform by having access to capital on terms determined by an understanding of the geography, economy and society of that area.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 473, tabled by my noble friend Lord Holmes of Richmond, and ably moved by the noble Baroness, Lady Hayman of Ullock, would require the Secretary of State to report to Parliament—within three months of the day on which this Bill is passed—on the existing barriers to the establishment of regional mutual banks in the United Kingdom. I want to make it clear that the Government are supportive of the choice provided by mutual institutions in financial services. They recognise the contribution that these member-owned, democratically controlled institutions make to the local communities they serve and to the wider economy.

However, regional mutual banks are still in the process of establishing themselves here in the United Kingdom, with some now in the process of obtaining their banking licences. It is, therefore, too early to report on the current regime and any possible limitations of this for regional mutual banks. I know that my noble friend Lord Holmes was interested in how regional mutual banks have performed in other jurisdictions and how we could use these examples to consider the UK’s own capital adequacy requirements. In this instance, international comparisons may not be the most helpful to make. The UK is inherently a different jurisdiction, with different legislative and regulatory frameworks from those in the US, Europe or elsewhere.

Abroad, some regional mutual banks have been in existence for centuries and have been able to build up their capital base through retained earnings. In the UK, regional mutual banks are not yet established and are continuing to progress within the UK’s legislative framework. However, the Treasury is continuing to engage with the mutuals sector and other industry members to assess how the Government can best support the growth of mutuals going forward. I hope that this provides sufficient reassurance for the noble Baroness, Lady Hayman of Ullock—on behalf of my noble friend Lord Holmes of Richmond—to feel able to withdraw the amendment.

[Baroness Hayman of Ullock (Lab)]

I thank the Minister very much for her response. I suddenly thought that I probably should have declared my interests as a member of the Co-operative Party and as someone who believes very strongly in the benefits of the mutual model. I am sure that the noble Lord, Lord Holmes, will read Hansard very carefully. In the meantime, I beg leave to withdraw.

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[Baroness Pinnock (LD)]

I hope noble Lords will bear with me because there was some confusion over the position of this group in the list. Some of us had an earlier list, where it appeared much later.

I have tabled Amendment 504GJH, about the state of schools and hospitals. At the heart of levelling up is the need to provide good-quality education to young people across the country and that means good-quality buildings in which children can go to school. Where schools are in disrepair and cannot be used appropriately, children are at a disadvantage, particularly, say, in secondary education with science blocks that are out of date so that children will not be able to do modern science experiments.

The quality of school buildings in this country is very important and a department report from December 2022 highlighted the critical level of disrepair in many of our school buildings across the country. This prompted me to lay this amendment to this part of the Bill. The annual report said that officials have raised the risk level of school buildings collapsing to “very likely” after an increase in serious structural issues being reported, especially in blocks built in the post-war years, 1945 to 1970.

The type of structure used has led to the quite rapid deterioration of those buildings. I said earlier that I was a school governor for a number of years. The school had a science block built in the early 1970s that was condemned for these very reasons, so I know how accurate this is.

If we are talking about levelling up and regeneration, at its heart should be public services, school buildings and the quality of the education delivered within them. It is school buildings that I am pointing to today. The report said that the risk level for school buildings had been escalated, as I said, from “critical” to “very likely”.

The difficulty is that, because so many school buildings were built in the 1950s, 1960s and 1970s with this sort of metal structure, there is a huge call on government funding. It is called a light frame system, I think; it is a steel structure anyway. Every one of us will have buildings like that where we live. I want this Bill to focus on doing something about school buildings and hospitals that we know about. The Government have committed to 40 new hospitals—five more have just been added—because they are falling down. That is not right. We are talking about regeneration and levelling up. Having school buildings and hospitals collapsing shows the level of investment that will be needed if we are genuinely going to try to level up across this country.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 476, proposed by the noble Baroness, Lady Hayman of Ullock, looks to give a minimum height for letterboxes. It is important to ensure that doors in homes include letterboxes at a height that does not cause injury, risk or inconvenience. We have researched the safety and accessibility of letterbox heights to establish the evidence with which to amend existing statutory guidance applicable in England. The Government are committed to reviewing their building regulations statutory guidance and any references to third-party guidance on the position of letterboxes. We intend to include the recommended height for letterboxes in statutory guidance.

I turn to Amendment 487 in the name of the noble Baroness, Lady Taylor of Stevenage. Clause 124 and Schedule 11 to the Bill introduce the infrastructure levy in England. The new infrastructure levy will aim to capture land value uplift at a higher level than the current system of developer contributions, meaning that there will be a greater contribution from developers towards the type of infrastructure to which the noble Baroness referred. Under new Section 204Q in Schedule 11, local authorities will be required to produce infrastructure delivery strategies. These strategies will set out how they intend to spend their levy proceeds. In preparing these strategies, local authorities will be expected to engage with the relevant infrastructure providers to understand what infrastructure will be needed to support new development in their areas. In this way, local authorities will be able to take a more strategic view of the infrastructure that will be required to support development in their areas.

On Amendments 489, 490, 491, 493, 494 and 495, in the names of the noble Baronesses, Lady Taylor of Stevenage and Lady Hayman of Ullock, the Government agree that regeneration is important in our new towns, coastal towns and market towns and recognise the contribution that markets can make to the vibrancy and diversity of our high streets, which is essential to levelling up the country. In this legislation, we are committed to going further in supporting places to tackle blight and to revive our high streets within these areas. The legislation builds on a far-reaching existing support package for high streets and town centres, including £3.6 billion investment in the towns fund, £4.8 billion investment in the levelling-up fund and £2.6 billion in the shared prosperity fund, along with support from the high streets task force.

On Amendment 496 tabled by the noble Baroness, Lady Hayman of Ullock, this Government have recently set ambitious new targets for air quality through the Environment Act 2021. These will drive action to reduce PM2.5 where concentrations are highest—often within our busiest towns and cities—reducing disparities as well as reducing average exposure across the country. The Environment Act 2021 established a framework for setting these and any future environmental targets. There is already a comprehensive legal framework governing air pollution, which works in a coherent and complementary way with established national emissions ceilings and concentration targets for a wide range of air pollutants from a variety of sources.

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[Lord Shipley (LD)]

My Lords, I am very grateful to the noble Lord, Lord Young, for reminding us how we got to where we are. He was absolutely right on every single point he made. This is terribly important, and I am very grateful to the noble Baroness, Lady Taylor of Stevenage, for giving us the amendment. If I have one criticism, it is that I am not sure we are yet at a Bill stage. Although it says “draft legislation” in subsection (1) of the proposed new clause—I understand that—I personally favour a royal commission or something that would actually look at the nature of local government and central government powers.

The noble Lord, Lord Young, has rightly identified the difficulty of devolving and at the same time levelling up, which, as he said, requires a greater element of centralised control. I have said several times over the course of this Bill, and before, that you cannot run England out of London; with 56 million people, we are steadily learning that. One of the reasons we are having these constant changes in the Government’s intentions for Bills is that they do not know either what they want to do—so, in the end, the Civil Service carries on and Ministers carry on trying to move forward.

There are elements in the Bill which are very important in assisting us down the road of greater devolution, and they lie in the combined county authorities. The more we have combined county authorities—much though I do not like the centralisation which can result, because they do not have, for example, a Greater London assembly; they do not have a structure such as that to underpin them—the more we will have a move away from Whitehall.

I do not want to say any more about that; I welcome what the noble Baroness, Lady Taylor, has proposed in this amendment. I think we should note what the noble Lord, Lord Young, said about the overall situation that we are in, but I hope that the Government and the Minister will see the importance of trying to bring all this together, because inevitably we are going to come back to this on Report anyway, as we look at the first parts of the Bill that, in Committee, we debated many weeks ago. I welcome the amendment and I hope the Government will see that there would be benefit in moving us forward, not just with structures like the combined counties but actually with real devolution of real things.

[Baroness Scott of Bybrook (Con)]

My Lords, this amendment, in the name of the noble Baroness, Lady Taylor of Stevenage, seeks to place an obligation on a Minister of the Crown to publish draft legislation for a devolution Bill within 120 days of this Bill receiving Royal Assent. We support the principle behind this amendment—that combined county authorities can request further powers which would enable activity to help drive economic growth and support levelling up.

In fact, we have already gone further than this in the devolution offer set out in the levelling up White Paper. This sets out a clear menu of options for places in England that wish to unlock the benefits of devolution, whether that is moving towards a London-style transport system to connect people to opportunity, improving local skills provision or being able to act more flexibly and innovatively to respond to local need. Any area, including those considering a combined county authority, is welcome to come forward and ask government to confer local authority and public authority functions as part of devolution deal negotiations. The levelling up White Paper has confirmed that the devolution framework is not a minimum offer. These asks are typically made as part of devolution deal negotiations.

We recognise that our existing mayors are already playing a powerful role in driving local economic growth and levelling up. That is why the Government plan to deepen the devolution settlements of the most mature institutions. The White Paper committed to trailblaze deeper devolution deals with the Greater Manchester and West Midlands combined authorities. These agreements were announced on 15 March 2023 and include many areas which will support these regions to drive growth and prosperity, including on skills, transport, housing and net zero, alongside single funding settlements and stronger accountability focused on outcomes.

These deals will act a blueprint for other areas with mature institutions to follow. This will include combined county authorities, once established. Ultimately, our aim is to achieve the local leadership levelling-up mission: that, by 2030, all parts of England that want one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement.

I say to my noble friend Lord Young of Cookham that, actually, devolution is what we want to deliver the local leadership that is required to level up this country. Devolution is part of the levelling up in the Bill, along with many other things to enable the levelling up of the United Kingdom. As such, I hope the noble Baroness agrees that this amendment is unnecessary and feels she can withdraw it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am grateful to noble Lords for participating in the debate and to the Minister for her response. The noble Lord, Lord Young, was absolutely spot-on to point to the tension between devolution and levelling up. All the way through our discussions on the Bill, we have felt that tension; we kept coming back to it, because there is an essential tension there. He mentioned the number of funding streams—planning fees, bidding fees, pothole action funds, the towns fund—which are all funds that local areas have to bid for, and they are not a buoyant source of local revenue. They are not renewable: if you want more, you have to go back to government and ask for more. What we actually need are those local revenue-generating sources that would enable that economic regeneration in our own areas. The noble Lord, Lord Shipley, suggested that this might need some sort of a commission to run to in order to demonstrate what you need to do to shift this.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Wednesday 24th May 2023 Grand Committee

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I have made only one intervention in Committee, which was on my pet subject: leasehold. I will not do that today. First, I will get on the record a number of interests. I am a vice-president of the Local Government Association, the chair of a housing association in Kent, and a director of MHS Homes, as set out in the register.

I offer my full support to the right reverend Prelate in her amendments. This is one of these debates where all sides of the Committee are happy to come together. They can see the sense of the amendments and, as the noble Lord pointed out, they are easy amendments for the government to agree. There is no cost to the Government and they are passive—no one has to do anything at all. However, the amendments would allow people to do something if they want, which is the good thing about them.

I hope that, as the noble Lord, Lord Stunell, said, we will get a positive response from the Minister—at least a commitment to meet people, go back and talk to officials, and bring back a government amendment that deals with this issue and provides for clarity. That is what these amendments are all about: providing clarity on an unclear issue. I know that the Government would want to ensure that things are clear.

I should say that I was brought up a Catholic. I grew up in Elephant and Castle in south London. I would probably describe myself as a lapsed Catholic, but I was brought up as a Catholic and come from a large, Irish Catholic family. My two younger brothers and my sister regularly attended the youth club at St Paul’s, in Lorrimore Square, run by the Reverend Shaw—a wonderful man who retired a few years ago. He set up the youth club and a mental health drop-in centre. When he retired, I had become a local councillor. We went to his retirement do and you could not move in the place. There was a complete cross-section of the community—people of different faiths and of no faith. Everyone there knew what this man had done in that parish church in the Walworth area of south London. He had done everything. If you were a young person growing up in that part of south London, there was not really much else to do. This parish church had become the centre of the community. Why can it not be that if a local authority wants to support such a place, they can do so? It seems ridiculous that they cannot.

As we have said, this is about having clarity about what councils can and cannot do if they want to support different things. My experience as a councillor was many years ago, but I am conscious of the work that churches do now, as the right reverend Prelate set out herself. People in many different situations are going through difficult times and churches host different groups and organisations—people can go in just to have a cup of tea and be warm. Such places are really important in communities and, sometimes, all that is now there is the local parish church and the church hall.

I really hope that the Minister is convinced by what she has heard today. There have been many good arguments made around the Room. As the noble Lord, Lord Best, said, these amendments on their own would not do anything at all, but they would enable things to be done. I hope the noble Baroness will support them. I will leave it there.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, first, I thank the right reverend prelate the Bishop of Bristol, my noble friend Lord Cormack and the noble Lords, Lord Best and Lord Scriven, for raising these amendments. They highlight the confusion around the prohibition in the Local Government Act 1894 and therefore attempt to clarify the basis on which local authorities are able to provide support to churches and other places of worship.

Amendments 485, 505, 510 and 512 aim to do this by removing some of the wording from that Act. Amendment 504GJJ, which has been withdrawn from the Marshalled List, would have aimed to do that by providing that the powers in the 1894 Act could be used to provide support to places of worship to ensure that, where they are used to offer support and services that are of benefit to the wider community, the facilities could be maintained and operated safely and effectively by, for example, helping meet the costs of maintenance and repairs. However, the Government do not consider that these amendments would be effective in achieving these aims.

The intention of the Local Government Act 1894 was to provide a clear separation between the newly created civil parishes and what are now parochial church councils. However, the Government do not consider that it includes any general or specific provision that prohibits parish councils from funding the maintenance and upkeep of churches and other religious buildings. Parish councils have other powers that enable their contribution towards the upkeep of these buildings, if it were deemed to be within their local communities’ interest to do so. However, I understand the confusion and I thank the noble Lords who have raised these amendments. We have heard their concerns that the law may be ambiguous, and I know this is of great concern to parishes and noble Lords. I can assure them that we in the department are considering this issue carefully and will reflect on the comments made during this debate.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, that was, I think, half a good answer. It was not perfect, by any means.

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[Baroness Scott of Bybrook (Con)]

I am pretty sure the noble Lord opposite knows that I will not say anything further today, apart from the fact that we have had many talks with the National Association of Local Councils and interested churches, and we will continue to do so as we move to Report.

[The Lord Bishop of Bristol]

My Lords, I thank the Minister and my fellow sponsors for a useful and effective debate. I thank them for their support in clarifying the law. Rather naughtily, I wonder, if there is not yet enough commitment for the Government to bring their own proposals, whether the Government might fund the legal case that might otherwise be necessary to create clarity on this issue. I hope that the Minister hears that there is real confusion in localities about this and there is inhibition to supporting these ecclesiastical charities.

I hope very much that the Government will be persuaded to bring their own amendments on Report. My fellow sponsors and I stand ready to offer to help in any way. For instance, we could convene representatives of not just the Church of England but other denominations. I am grateful to the noble Lords, Lord Stunell and Lord Kennedy, for mentioning the ecumenical aspect of this. At this stage, it is necessary to achieve the clarity that the noble Lord, Lord Kennedy, very pointedly mentioned. I look forward to working with the Minister and her team ahead of Report; I hope that will be possible.

I conclude that these amendments are necessary, as I have stated. They would enable all Christian denominations, like all other faith communities, to continue to live out their calling and provide a space to support those in need in their communities. However, I beg leave to withdraw the amendment standing in my name on the Order Paper.

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We can talk about levelling up, but how can we do that when we still have an Act that forces us to belong in the age of Dickens? The Government should be concerned with the causes of homelessness and not wasting police time in arresting people who are sleeping rough. My question is a simple one: when are the Government going to commence the repeal of the Vagrancy Act? Those facing homelessness, especially those sleeping rough, are some of the most vulnerable people in our society, and surely we cannot level up if we do not put them at the centre of our conversations about housing.

[Baroness Scott of Bybrook (Con)]

My Lords, I am glad to address the important issue of no-fault evictions in response to Amendment 492 from the noble Baroness, Lady Taylor of Stevenage. The Government strongly feel that the threat of eviction means that renters cannot feel secure in their homes and that many do not have the confidence to challenge their landlords on poor standards.

For this reason, the Government have introduced the Renters (Reform) Bill, which will abolish Section 21 no-fault evictions. This was introduced in the other place on Wednesday 17 May. To answer the noble Lord, Lord Foster of Bath, that Bill has only just started and it has not begun substantive debate in the other place. Subject to that—and we anticipate that the Bill will proceed at the normal pace—it will be before your Lordships’ House in the next Session after the King’s Speech.

The Commons Levelling Up, Housing and Communities Select Committee recently published a report on the private rented sector. The Government are grateful for this and look forward to responding shortly. In the light of our upcoming response and legislation, we do not think that the review proposed in the amendment would add any further detail to the debate. I reassure noble Lords that the Government’s commitment to abolish no-fault evictions is unwavering and that there will be ample opportunity for scrutiny of this legislation.

In response to Amendment 504GJF, which the noble Baroness, Lady Taylor of Stevenage, spoke to, I assure her that the Government are clear that no one should be criminalised simply for having nowhere to live. We have committed to repealing the Vagrancy Act, which is outdated and not fit for purpose. However, we have been clear that we will repeal the Act once suitable replacement legislation has been brought forward. This is so we can ensure that the police, local authorities and other agencies have the tools they need to respond effectively to begging and rough sleeping, so that they can keep their communities safe, restore pride in place and direct vulnerable individuals to the support they need.

Last year, we consulted on options for replacement legislation. We have considered these responses alongside other feedback from stakeholders and continue to give these complex issues careful consideration. Provisions relating to the Vagrancy Act have therefore been removed from this Bill and replacement powers will be the matter of separate legislation.

In the meantime, the Government have made the unprecedented commitment to end rough sleeping within this Parliament. We remain steadfastly committed to that goal. In September, we published a bold, new rough sleeping strategy, backed by £2 billion, which sets out how we will end rough sleeping for good. The Government’s Anti-Social Behaviour Action Plan, published on 27 March, reconfirms this commitment. It also sets out our intention to bring forward new powers to tackle begging and rough sleeping, with the detail to be brought forward in future legislation, which will be subject to full parliamentary scrutiny.

I hope this provides reassurance for the noble Baroness, Lady Taylor of Stevenage, and that she will withdraw her amendment.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am not going to say that I am grateful for the reply on this occasion because it was really disappointing. We have here a mechanism that we can use to do two things that there is broad consensus about in your Lordships’ House, one of which has already been passed through legislation, which is to repeal the Vagrancy Act, and the other of which is subject to new government legislation but could be done much more quickly by using this Bill. On the Vagrancy Act, as the noble Lord, Lord Foster, and I mentioned, 1,000 people were arrested under it during the course of last year, and on no-fault evictions, families are living in misery now. Anyone who has been a councillor—I know the Minister has been—will have heard the terribly distressing stories from families when they get evicted and end up finding it very difficult to find somewhere else to live.

When we went through the Covid crisis, I was very pleased to see the Government taking immediate action with their “Everyone In” programme, getting people sleeping rough into accommodation as quickly as possible. We have the opportunity to build on that, but rough sleeping is already starting to go up again. Why not take the opportunity of this Bill to do something about it now? Can the Minister tell us how many people are sleeping rough tonight, or any night in the coming week? If you can do something about this, why would you not?

The noble Lord, Lord Best, rightly mentioned that a number of powers have been introduced in recent Acts, particularly the Anti-Social Behaviour, Crime and Policing Act 2014, that already allow the police to address anti-social begging, and there are powers for councils to set aside areas where they do not allow people to hang around. There are lots of powers already. We do not need any more powers; we need the Government to get on and scrap this 200 year-old Act that criminalises those who are sleeping rough. The postponement of this repeal for over a year is already far too long. I shall withdraw my amendment for today, but I am sure that we will come back to this on Report.

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Moved by

[Baroness Scott of Bybrook]

504GK: Clause 219, page 249, line 17, at end insert—
“(ja) under section (Power to replace Health and Safety Executive as building safety regulator);”Member’s explanatory statement
This amendment provides that any regulations made under the new Clause inserted by the amendment in the Minister’s name after Clause 214 (Power to replace Health and Safety Executive as building safety regulator) are subject to the affirmative procedure.

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Moved by

[Baroness Scott of Bybrook]

504I: Clause 221, page 250, line 25, leave out “section 123 extends” and insert “sections (Street votes: modifications of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017) and 123 extend”
Member’s explanatory statement
This amendment provides that the new power in the amendment in the minister’s name to make regulations to modify the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 extends to England and Wales, Scotland and Northern Ireland.

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Moved by

[Baroness Scott of Bybrook]

507: Clause 222, page 251, line 6, at end insert—
“(aa) in Schedule 4—(i) if a provision amended by any of paragraphs 51, 55, 56 and 57 has not come into force before the end of the period mentioned in paragraph (b), that paragraph comes into force when the provision that it amends comes into force (but otherwise it comes into force at the end of that period);(ii) paragraphs 59 to 63 come into force on such day as the Secretary of State may by regulations appoint;”Member’s explanatory statement
This amendment makes provision for the commencement of certain amendments made by Schedule 4 in cases where the provisions amended are not yet in force.

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Moved by

[Baroness Scott of Bybrook]

509A: Clause 222, page 251, line 31, after “sections” insert “(Street votes: modifications of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017),”
Member’s explanatory statement
This amendment provides that the new power in the amendment in the minister’s name to make regulations to modify the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 comes into force two months after Royal Assent.

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Moved by

[Baroness Scott of Bybrook]

513: In the Title, line 10, after “licences;” insert “for a body to replace the Health and Safety Executive as the building safety regulator;”
Member’s explanatory statement
This amendment amends the long title to reflect the new Clause inserted by the amendment in the Minister’s name after Clause 214 (Power to replace Health and Safety Executive as building safety regulator).

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Tuesday 11th July 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

That the Report be now received.

Relevant documents: 24th and 39th Reports from the Delegated Powers Committee. Scottish, Welsh and Northern Ireland legislative consent sought.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I beg to move.

[Baroness Hayman of Ullock (Lab)]

My Lords, before we begin Report, I want to make some points to draw the House’s attention to our concerns about the Government’s approach to the proper and timely legislative scrutiny of this Bill.

First, when we received the Bill into this House and prepared for Second Reading back in January, I and others were surprised to see that it contained three chapters that had not been scrutinised in the other place but had been added in after it had moved on to here. Then, following our debate in Committee, ahead of Report and with no prior warning, the Government added in a whole new schedule—nine pages in length—along with further amendments on childminding provisions, and altered the Long Title to reflect this.

I know that the Minister understands my concerns, and I thank her for arranging a meeting at short notice last week to discuss this. Can she now confirm, as we agreed in that meeting, that Committee rules will be used for the debate on the childcare amendments and any amendments to them on Report, and that, if deemed necessary, amendments will be accepted at Third Reading on this part of the Bill alone?

Finally, on Friday evening I had an email from the department apologising for the late tabling of further amendments, apparently to allow substantive discussions with the devolved Administrations prior to tabling as they relate to the devolution settlement and securing legislative consent for the Bill. Late discussions with the devolved Administrations unfortunately seem to have become a regular occurrence, but it would have been helpful if we had been made aware and alerted to any impact on timings in advance.

To be quite clear, I hold the Minister in the highest regard, I am not complaining about her as a Minister and we very much appreciated her apology. However, it greatly concerns me that the department has shown a lack of respect for the need to have proper legislative scrutiny from both Houses if we are to secure legislation of the expected highest standards.

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[Baroness Scott of Bybrook (Con)]

My Lords, I acknowledge that the Government have proposed a number of changes to this Bill ahead of Lords Report and that they deserve proper debate. Our amendments were tabled a week in advance of this stage commencing, as is usual, apart from the limited changes arising directly from our discussions with the devolved Administrations, where it was important to let negotiations conclude.

I have been very willing to meet noble Lords—I thank the noble Baroness opposite for accepting and appreciating that—from all sides of the House to discuss any aspects of the Bill, as have my officials, and I am grateful for the many conversations which we have had over the past week and previously. With a Bill of this complexity, we may not always get our engagement completely right, but our genuine intent has been to keep noble Lords well informed of our proposals, and I apologise once again to the House for any shortcomings in that.

The amendments we have proposed should also be seen in the context of the overall size of the Bill. A number of changes are being made in response to the report of the Delegated Powers and Regulatory Reform Committee. Where substantive additions to the Bill are proposed, principally on childcare, it is only right that we allow time for them to be discussed fully, and I assure the noble Baronesses that we will do that.

Report received.

Clause 1: Statement of levelling-up missions

Amendment 1

Moved by

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[Baroness Pinnock (LD)]

My Lords, I remind the House of my relevant interests: I am a councillor on Kirklees Council in West Yorkshire and a vice-president of the Local Government Association. This group of amendments focuses on the areas that have benefited, or not, from the initial round of the levelling-up fund. As we heard from the noble Baroness, Lady Hayman of Ullock, there are many examples of levelling-up funds failing to reach those parts that the Government’s own White Paper assesses as being in need of targeted funding over a sustained period.

Throughout our considerations of the Bill, I have said that this vast tome, the levelling up White Paper, should be at the heart of what we are discussing and what the legislation should be doing. As I said in Committee and at Second Reading, it seems to me that the Government have lost their way. The White Paper is not perfect, but it makes a good start in setting out what levelling up should be about. One of the phrases in it is that levelling up should be “broad, deep and long-term”—I agree. Experience of previous iterations of levelling up, from city challenge to neighbourhood renewal and several other policy interventions in between, has demonstrated that scattering plugs of funding is not sufficient to ensure that communities that have not shared in the nation’s prosperity begin to do so. The cycle is not broken without dedicated and long-term investment; that is what the White Paper says. The fundamental approach currently being pursued is inadequate to meet that challenge.

The Government have so far distributed funding via a bidding culture, which, as many noble Lords will know, the Conservative Mayor of the West Midlands has criticised, calling it a “begging bowl culture”. Such a bidding culture is also costly, in time and money, and leads to many more losers than winners. One example, which I think I have given before, is a major city in Yorkshire investing a six-figure sum in its bid for levelling-up funds only to receive a big fat zero. It seems to me that this process needs a fundamental rethink. The noble Baroness, Lady Hayman, was right to use the example of the House of Commons Select Committee on this very issue, but the National Audit Office has also raised concerns about the use of levelling-up funds and how the bidding culture has worked —or not.

If the Government were serious about levelling up, only those areas that are amply described in the levelling up White Paper would qualify for funding. The Minister may be able to tell us whether only those areas described in the White Paper will qualify for funding. If not, we are moving away from the purpose of levelling up.

The second element of change needs to be for local authorities. Those that qualify via the assessment and the metrics in the White Paper should be asked to produce plans that tackle the inequalities at the heart of their communities in a sustained way—that is what the White Paper says needs to be done. It would mean more emphasis, for example, on skills, access to employment, and barriers, such as lack of childcare and transport. However, given what the Minister said in Committee, I am not sure whether the Government are ready for such big changes.

The noble Baroness, Lady Hayman of Ullock, is right to pursue making the use of levelling-up funding more transparent and, as Amendment 3 says, ensuring that the funding is linked to the missions. For me, at the heart of levelling-up and regeneration legislation should be linking funding to the missions. If they are not linked, I do not know what the purpose of this Bill is.

At this point, the noble Lord, Lord Berkeley, raises a good example of what happens when there is an inequality of immense proportions. My noble friend Lord Teverson supported him in that, and he was right to do so. There are countless examples of such disparities across the country, which the levelling-up fund should be dealing with.

These amendments are fundamental to the effective levelling up of the many parts of this country that have suffered inequalities—some of considerable proportion compared with the rest of the country—over many years. If the noble Baroness wishes to move her amendment to a vote and divide the House, we on these Benches will support her.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 1, 17, 304 and 305 in the name of the noble Baroness, Lady Hayman of Ullock, are all linked to a proposed new requirement for government to lay a statement detailing the application process for round 3 of the levelling-up fund. That has already happened in the first two rounds of the fund. We published information on the impartial assessment and decision-making process, alongside a full list of successful applicants. We have also provided feedback to unsuccessful applicants in both rounds. We will continue to improve the process used to award funding, taking on board the feedback we have received, which will be reflected in our approach to the next round of the fund.

We have also published our monitoring and evaluation strategy, which makes clear how the fund will evaluate impact against a range of criteria, including healthy life expectancy, well-being and pride in place. On the timing of the statement of the levelling-up missions, which is mentioned in Amendment 1, we have committed in the Bill to publish this within one month of Part 1 of the Act coming into force. We argue that this is already an appropriate and prompt timescale.

Amendment 3, also in the name of the noble Baroness, Lady Hayman of Ullock, looks at how levelling-up funds are supporting the levelling-up missions. This Government are committed to transparency. The Bill will place a duty on the Government to publish a clear statement of their levelling-up missions and to report annually on their progress against them, including, where relevant, the contributions made by particular projects and programmes. We have also already published transparent criteria for assessing projects and initiatives to be funded via key levelling-up funds and have published all funding allocations made to places.

In relation to the levelling-up fund specifically, in round 2 of the fund we asked applicants to set out which of the 12 levelling-up missions their bid supported. Several of the criteria used in the levelling-up fund evaluation strategy align closely with our missions, including pride in place, health and well-being. Alongside that, transport forms one of the three investment themes, and more than £1.1 billion has been awarded to improve transport infrastructure in the first two rounds.

It might be useful to give some examples of what has happened. Torridge District Council made a bid for the Appledore Clean Maritime Innovation Centre. That will create North Devon’s first university research centre, which will help regional skills by providing a regional skills base, as the noble Baroness, Lady Pinnock, said. It will also establish the area as a leading research and development destination for clean maritime. Another example—I will not go on, because I could give noble Lords a large number—is the Porth transport hub, which will open later this summer. It will improve transport connectivity by providing seamless public transport connectivity for that town. These are the things that are happening.

The noble Baroness, Lady Hayman of Ullock, also asked about the rest of the money that the Government are spending and whether it will be spent in connection to the missions. I can say that £40 million from the DfE has gone into education investment areas, one of our priorities in the missions, while £2.5 billion has been allocated to the transforming cities fund and many billions more to the city region sustainable transport settlements and the bus service improvement plans. There is also £125 million from the Home Office for the safer streets fund. These are all connected to our very important missions.

The noble Baronesses, Lady Pinnock and Lady Hayman of Ullock, quite rightly asked about simplifying the funding landscape. We have already made significant progress in streamlining funds. Between them, the levelling-up fund and the UK shared prosperity fund consolidate what was previously a complex landscape. We are committed to publish a simplification plan setting out how we will go further, immediately and at the next spending review, to simplify the funding landscape far more.

The noble Baroness, Lady Hayman of Ullock, also talked about evaluation. We have an overall departmental evaluation strategy, which was published last November. Over the past 18 months, the department has significantly increased the resource dedicated to local growth evaluations, and that will continue—so we are looking particularly at including towns funds, the levelling up fund and the UK shared prosperity fund.

The noble Baroness also asked why it has taken so long to share information about the levelling up fund round 3. It is important that we have taken the time to reflect on the first two rounds, which is why things are changing. We have learned the lessons from those two, and we wanted to do that before committing to round 3. We will talk about it further in the near future. The Secretary of State signalled at the LGA conference last week that he intends to bring a completely new approach to the levelling up fund round 3, reflecting on everything that has happened up until now.

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[Lord Butler of Brockwell (CB)]

My Lords, before the Minister sits down: I have listened carefully to what she has said, and I think that what she has been explaining is that the Government are already committed to achieving the purposes of the amendment moved by the noble Baroness, Lady Hayman. Are there any disadvantages, in that case, of accepting the amendment?

[Baroness Scott of Bybrook (Con)]

The disadvantage is that we are already doing it, so we would not want to duplicate it. We have listened to the earlier rounds and we are looking at the simplification of funding streams to local government to deliver levelling up and to connect that to the missions. There is no point in duplicating that, as it is already in the Bill.

[Lord Lansley (Con)]

Prompted by the noble Lord’s intervention, I do not think that Amendment 1 is consistent with the Bill as it stands, because Part 1 comes into force, according to the commencement provision, two months after enactment, whereas Amendment 1 requires the statement to be laid one month after enactment—so the two are inconsistent, and Amendment 1 is probably not effective.

[Lord Berkeley (Lab)]

My Lords, before the Minister sits down, I thank her for what she said about the Isles of Scilly and my Amendment 11. I am grateful that she is happy to arrange a meeting with colleagues in the Department for Transport but, if it seems appropriate to have an amendment to the levelling-up Bill, would that be possible at Third Reading if she and the other Minister agree?

[Baroness Scott of Bybrook (Con)]

I think the House prefers not to have any amendments at Third Reading.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank noble Lords who have spoken in this brief debate, and the Minister for her, as always, very thorough response. However, I do not think that she has been able to demonstrate categorically that any future funding rounds are going to be properly tied to the delivery of the missions. The Government seem to have taken a bit of a scattergun approach to this, if I can put it like that. As I have already said, the Government’s approach is categorised by one-off, short-term initiatives which are insufficient if the geographic, economic, social and health inequalities are to be reduced and ultimately overcome, which is what the Bill aims to do.

To me, as I said before, getting the funding allocations correct, getting the analysis of the results of previous allocations of funding correct, and having that information and data at our fingertips to be able to properly target the funding to ensure that we get the outcomes we want, is critical to the success of the Bill. I take the point made by the noble Lord, Lord Lansley, but I have been informed by the clerks that my Amendment 17 is consequential on my Amendment 1. So I thank the Minister, but I am not satisfied with the Government’s future approach, so I would like to test the opinion of the House on my Amendment 1.

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I want to be brief, but it appears to those of us who live in far-flung parts of England that the further away you are from London and the south-east, the more acutely the disparities occur. Living in the north-east, as I and the noble Lord, Lord Shipley, do, we have a double whammy. We have the north/south divide, which is still a major concern, and the rural/urban divide. There is a double impact in terms of rural proofing that needs to be addressed. Only through well documented rural proofing and the proper engagement of different departments of government will we be able to identify what actions need to be taken to address these disparities. It is only through that evidence base that we will be able to successfully apply levelling up in rural areas. I support these amendments.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 2, in the name of my noble friend Lord Lansley, would require a Minister to withdraw the statement if either House of Parliament resolves not to approve it. The statements of levelling-up missions, the annual report, the revisions to the missions and revisions to the metrics supporting missions will already be laid before both Houses of Parliament. This already provides numerous opportunities for Parliament to scrutinise the activity of the Government on levelling up. Going further in this way could take up significant parliamentary time and giving a veto to Parliament on a statement of government policy, which is fundamentally different from legislation or guidance, would not in our opinion be appropriate. Of course, as my noble friend said in Committee, Parliament can at any time put a Motion for debate on any issue. That is always possible for both Houses to do.

Amendment 6, in the name of the noble Lord, Lord Shipley, would require the Government to publish an assessment of geographical disparity, with reference to defined criteria, alongside the statement of missions. But as set out in the levelling up White Paper, the missions are already supported by a range of clear metrics to assess different aspects of geographical disparities and measure progress in addressing these. These metrics take account of a wide range of inputs, outputs and outcomes and, in the vast majority of cases, they draw upon publicly available datasets. An additional assessment of geographical disparities risks being duplicative.

Further, as with the missions themselves, specifying reporting metrics in legislation would make reporting far too rigid. While disparities exist at regional, local authority, ward and even street level, the appropriate unit of comparison will vary depending on the mission or policy area. Governments must be able to adapt reporting to reflect changing contexts, without cumbersome revisions to primary legislation. The statement of levelling-up missions is intended as a statement of government policy, which will set out those admissions and metrics, while the annual report will report against those metrics. Having requirements to assess disparities according to specific criteria in the statement would pre-empt that annual report.

Amendment 10, in the name of the noble Lord, Lord Foster of Bath, would require the Government to publish a rural-proofing report alongside the first statement of levelling-up missions. The noble Lord is right to highlight the challenges facing rural communities, as are the noble Lords, Lord Curry of Kirkharle and Lord Carrington, but the annual rural-proofing report is the key tool in highlighting this work. The second of those reports, Delivering for Rural England, is out. It sets out further details on the Government’s approach to levelling up rural areas.

In addition, last month the Government published an action plan detailing their ongoing work and future plans to support rural areas. The noble Lord, Lord Foster of Bath, mentioned that, coming out of that, we are providing £378 million in ring-fenced grants for rural areas, to fund energy-efficiency and clean heating upgrades for low-income households living off the gas grid in England. We also announced a £2.5 million fund to boost the supply of new affordable housing to rent or buy in rural areas, by creating a network of new rural housing enablers. As noble Lords said, we are also supporting community ownership of vital rural assets, such as pubs and shops, through the £150 million community ownership fund. These are areas across government where we are supporting the rural economy and rural England, and this will come out of those rural- proofing issues. I will mention more of this in a minute.

Amendment 12, in the name of the noble Baroness, Lady Hayman of Ullock, seeks the publication of a report by an independent advisory body on progress against the levelling-up missions. Through the provisions we seek to put in statute in the Bill, we are committed to enabling Parliament, the public and experts to scrutinise our progress against our missions and in reducing geographic disparities, and to hold the Government to account. Many think tanks and academics are already scrutinising our performance on levelling up. Through my department’s spatial data unit, we are embracing and seeking to build on this engagement, including through work to improve the way in which government collates and reports on spending and outcomes and considers geographical disparities in its policy-making. That is not just in my department but across government.

As noble Lords will know, we also established the independent Levelling Up Advisory Council, chaired by Andy Haldane. The council, which provides very candid advice to Ministers and conducts independent research for the levelling-up agenda, has met nine times already. I am confident that these provisions and commitments will ensure transparency, scrutiny and accountability on the levelling-up missions, and on the way in which geographical disparities are defined, measured and addressed, without adding any unnecessary proliferation of public bodies.

Amendment 14, in the name of my noble friend Lord Holmes of Richmond, would oblige the Government to publish a report that considers establishing a task force to help increase the effective use of robotics and automation and to consider the impact on regional disparities. The Government are hugely committed to reducing barriers to innovation, which is why we committed almost £200 million in funding to manufacturers through the Made Smarter programme, and we are already convening a Robotics Growth Partnership with leaders across academia and industry. The Levelling Up Advisory Council is considering how to improve the uptake of productivity-enhancing technologies. Given the work that is ongoing already, we do not believe that a task force is necessary. Should government find it desirable to establish a task force in the future, I assure my noble friend that it will not be necessary to legislate to establish one.

Amendment 303, in the name of the noble Lord, Lord Foster, would require a rural-proofing report on how

“the measures contained within the Act will address the needs of rural communities”.

As I highlighted, the Government already have extensive rural-proofing mechanisms which ensure that the unique challenges of rural communities are considered in all our policy-making. The Government undertake robust impact assessment processes when introducing any new policy. The Bill is subject to the same scrutiny and therefore has been assessed accordingly to ensure that all communities, including rural ones, are sufficiently considered. Given the existing mechanisms in place, we do not believe it is necessary to impose a further condition on the provisions of the Bill.

I hope that this provides the necessary reassurance for my noble friend Lord Lansley to withdraw his amendment and for the other amendments to not be moved.

[Lord Shipley (LD)]

Before the Minister sits down, perhaps she might explain a little further about the Levelling Up Advisory Council. I think I heard her say that is has now met nine times. Is the advisory council publishing its papers and the minutes of its meetings? I am led to believe that it has not been doing so. Is that the case and, if so, would it not be better if the papers and minutes of its meetings were published?

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[Baroness Scott of Bybrook (Con)]

My Lords, I am not aware that the advisory council is publishing papers, because it is advisory to the Government. I will make further inquiries and come back to the noble Lord and others in the Chamber.

[Lord Foster of Bath (LD)]

To save the House time later, I remind the Minister that rural-proofing is not about giving a list of good things you have done in rural areas. To quote the Government’s own document:

“Rural proofing aims to understand the intended outcomes of government policy intervention in a rural context and to ensure fair and equitable policy outcomes for rural areas”.


If the Minister is correct that this legislation has been rural-proofed, will she commit to publishing the specific report for this Bill, which would achieve what my two amendments are seeking to do?

[Baroness Scott of Bybrook (Con)]

My Lords, a number of proofings have been done on the Bill. I will ask for those and make sure that they are brought forward. It is not about giving money; it is about knowing where money is required in rural areas to make life better for people, as well as making sure that policies are rural-proofed. If we find out through that rural-proofing that some policies are not delivering as well as they could for rural areas, we have to do something about it, and that is what the Government are doing.

[Baroness Hayman of Ullock (Lab)]

Before the Minister sits down, if the policies have been rural-proofed, what happened to the metrics? Clearly, they have not been rural-proofed. I raised public transport, which I think needs looking at.

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When the Procurement Bill comes back, we will have fun reminding the Cabinet Office of the Front Bench’s objection in principle to Parliament debating the policy statement of Ministers and to Ministers being required to withdraw it if Parliament objects. That is precisely what is in the Procurement Bill in another place, as put in the Bill by Ministers themselves. I am afraid that my noble friend’s argument of principle against my amendment does not hold much water beyond this convenient moment. None the less, I take her point. I have explained the flaws in my amendment and, on that basis, I will not press it. I beg leave to withdraw Amendment 2.

[Baroness Scott of Bybrook (Con)]

I have an update for the House: I have been advised that the independent advisory board has a public blog that noble Lords might like to look at.

Amendment 2 withdrawn.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I draw attention to my interests, as I am still a serving councillor in both Stevenage and Hertfordshire.

It is always a huge privilege to follow Members of your Lordships’ House with such great expertise and passion for their subjects as my noble friend Lady Lister of Burtersett and the noble Baroness, Lady Finlay of Llandaff, supported by the noble Baronesses, Lady D’Souza and Lady Benjamin, and the right reverend Prelate the Bishop of Durham. I shall speak to their amendments in a moment.

First, I have tabled Amendment 5 to highlight a number of missed opportunities in the Bill. Some of the many issues we have raised relate to the deficiency of the Bill in clearly setting out a definition of what levelling up actually means to the Government and, as importantly, how it will reach every area—we have a later set of amendments on regional disparities—how it will be funded, how it will measure outcomes rather than outputs, and how in key areas it will start to turn the agenda from acute interventions, which are expensive and complex, to preventive work, which will be more effective and save costs in the long run. I am grateful to my noble friend Lady Hayman for setting out so clearly our concerns around funding; I will not comment any further on that subject.

It seems to us that the levelling-up missions are nowhere near ambitious enough to take this country forward in the wake of Brexit, the pandemic and climate change, and with economic changes that need a clear strategic approach to ensure that the United Kingdom keeps pace with scientific development, tackles productivity challenges and is a place where everyone has the opportunity and encouragement to play their part in growing the economy.

What we see in the levelling-up Bill is, too often, the sticking-plaster politics of the last few years, which will do little to tackle the long-term challenges. Our missions indicate our ambition and determination that our country will face those long-term challenges that really matter to citizens and society; keep focused on them in spite of day-to-day pressures; ensure that everyone—business and trade unions, private and public sector, and government departments—works together; and, key to the consideration of this Bill, make sure that local and national government work together in partnership to ensure that action happens at the right level and combines national strategy with local knowledge and expertise. Strong missions must be focused on tackling the long-term and complex problems that need long-term thinking and recognise that there is no silver bullet to solve them, only key partnerships worked at and sustained over time.

We must be more ambitious, like our mission to secure the highest sustained growth in the G7, which is aimed at tackling the consistent underperformance in our economy that sees Britain still trailing behind our partners rather than powering ahead. ONS statistics show that the UK’s GDP growth between the final quarters of 2019 and 2022 was the lowest in the G7, which means that the UK is the only G7 country in which the economy remains smaller than it was before the pandemic. Being as ambitious for our economy as the people in our country are for their families must surely be the launch pad of levelling up.

There can be no levelling up while people and communities still feel unsafe in the places they live, work or spend their leisure time. There can be no levelling up while we treat the challenge of producing clean energy with a lack of ambition. We need a mission to make Britain a clean energy superpower, creating jobs, cutting bills and dealing with the crisis in energy security.

The noble Baroness, Lady Finlay, clearly set out the reasons why tackling health inequalities, which have beleaguered the UK for generations, must be part of the mission to level up our country in order to break the cycle. My local area is home to some of the most exciting cell and gene therapy developments in the world, so it is ironic that if you live in parts of my borough, you will live 10 years less than if you live in St Albans, 12 miles away.

In the United Kingdom we have 7 million people languishing on NHS waiting lists, waiting for surgery or procedures that could be life changing, never mind life saving. We must include in the missions for this country a stated aim to harness the life sciences to reduce preventable illness, speed up access to treatments and cut health inequalities. For that reason, if the noble Baroness, Lady Finlay, chooses to test the opinion of the House on this subject, she will have our support.

Lastly, I come to the powerful words of my noble friend Lady Lister, who has been such a strong advocate for children, particularly disadvantaged children, in your Lordships’ House. It is a shameful indictment of this Government that the situation relating to child poverty has gone backwards since 2010. As the right reverend Prelate the Bishop of Durham said, it should be central to levelling up. The Child Poverty Action Group figure of 4.2 million children living in poverty, which has been widely cited in the debate, is a shameful indictment. As the noble Baroness, Lady Benjamin, said, the situation is far worse for black and ethnic-minority children, and working is not the answer for everyone, with 71% of children in poverty living in a home where at least one person works. The figure cited that between 1998 and 2003 the number of children living in poverty fell by 600,000 shows that it can be done, but the figures are now climbing rapidly again.

The combination of low pay, poor housing and steep rises in the costs of food and energy is taking a terrible toll on the life chances of too many children and young people across our country. We heard recently from the National Housing Federation that too many children are in poor accommodation where they still have to share beds with their parents well into their teenage years. The generational change needed here requires breaking down the barriers to opportunity at every stage, for every child. That needs reform of the childcare and education systems to raise standards and prepare young people for work and life.

None of this can happen unless we all—across the political spectrum and society—make it our ambition to drive out the child poverty that blights lives, drains self-confidence, squashes opportunity and ambition, and continues the cycle that sees so many of our young people unable to make their full contribution to our country. It is unthinkable that we will see any long-term levelling up in our country without tackling child poverty. Indeed, the in-depth study on child poverty carried out by the University of Newcastle put at the top of its list of priority actions

“putting tackling child poverty at the heart of future devolution deals”.

That is a clear example of why it is entirely appropriate to have a statement of intent at national level—a mission—to drive bespoke action at local level. If my noble friend Lady Lister decides to test the opinion of the House on whether this must be included as a mission, she will have our strong support.

We would, of course, like to see Labour’s missions at the heart of the Bill, but even an optimist like me realises that this might be a little premature. However, the amendments on health inequalities and child poverty deal with aims that surely we all share and issues without close attention to which levelling up just cannot happen or be successful. I reiterate our support for them and urge all noble Lords to support those amendments.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 4 in the name of the noble Baroness, Lady Lister of Burtersett, would require the Government to set out a levelling-up mission to reduce child poverty. Amendment 5 in the name of the noble Baroness, Lady Taylor of Stevenage, would compel the Government to relate their missions to the Labour Party’s five priorities. What I am interested in is why child poverty is not in her amendment. Amendment 7 in the name of the noble Baroness, Lady Finlay of Llandaff, would require the Government to set out a mission on health disparities and healthy life expectancy. Amendment 8 in the name of the noble Baroness, Lady Pinnock, would require the Government to include the missions and headline metrics from the levelling up White Paper in their first statement of levelling-up missions.

I have made our approach to levelling-up missions extremely clear in this House. They are subject to debate in Parliament, but the specifics of the missions are not written into law. Missions may need to evolve over time—including to make them more stretching as goals are met and to adapt to policy relevant to the day. We will not put any missions in the Bill. Missions are intended to anchor government policy and decision-making necessary to level up the United Kingdom. Missions should not, however, be set in stone. As the economy adapts, so will the missions reflect the changing environment and lessons learned from past interventions.

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Moved by

[Baroness Scott of Bybrook]

13: Clause 2, page 3, line 19, at end insert—
“(5A) In the course of preparing a report on the delivery of the levelling-up missions, a Minister of the Crown must carry out such consultation as the Minister considers appropriate with the devolved authorities.”Member’s explanatory statement
This amendment requires a Minister to consult the devolved authorities in the course of preparing a report on the delivery of the levelling-up missions.

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Moved by

[Baroness Scott of Bybrook]

15: Clause 4, page 4, line 19, at end insert—
“(4) Before making any revisions under subsection (2), a Minister of the Crown must— (a) have regard to any role of the devolved legislatures and devolved authorities in connection with the levelling-up mission to which the revision relates, and (b) carry out such consultation as the Minister considers appropriate with the devolved authorities.”Member’s explanatory statement
This amendment requires a Minister, before making a revision to mission progress methodology and metrics or a target date, to have regard to any role of the devolved legislatures or devolved authorities in connection with the mission to which the revision relates and to consult the devolved authorities.

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Moved by

[Baroness Scott of Bybrook]

16: Clause 5, page 5, line 5, at end insert—
“(5A) In the course of carrying out a review under this section, a Minister of the Crown must—(a) have regard to any role of the devolved legislatures and devolved authorities in connection with the levelling-up missions in the statement, and(b) carry out such consultation as the Minister considers appropriate with the devolved authorities.”Member’s explanatory statement
This amendment requires a Minister, in the course of carrying out a review under Clause 5, to have regard to the role of the devolved legislatures and devolved authorities in connection with the levelling-up missions and to consult the devolved authorities.

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[Baroness Pinnock (LD)]

My Lords, Amendment 18 is a new probing amendment, because we all assumed that, if the Government are committed to levelling up and understand, as they will, that it is dependent on long-term capital investment, that would therefore be available.

The noble Baroness, Lady Hayman of Ullock, quoted the Financial Times, and I too did a bit of research on what capital was around. The Financial Times raised this issue earlier this year, reporting that John Glen, who was then Chief Secretary to the Treasury—perhaps he still is—has

“now stepped in to prevent DLUHC from signing off spending on any new capital projects, because of concerns about whether the department is delivering value for money. Such interventions are typically reserved for departments about which the Treasury has particular financial concerns”.

The Financial Times report went on to say:

“The decision to rein in Gove’s expenditure, taken last week, means that any new capital spending decision ‘however small, must now be referred to HMT before approval and the department is not allowed to make any decisions itself’”.


It is a fairly damning indictment of the spending already undertaken by DLUHC if that is the Treasury’s view of its value for money. As I said at the start, levelling up depends on capital investment. It is difficult to interpret the Government’s—the Treasury’s—decision to have tight controls on capital spending as anything other than putting a big brake on levelling-up funding, to the detriment of communities that are desperate for investment.

A House of Commons Select Committee also reported on levelling-up funds, which we referred to in debates on earlier groups today. It made the salient point that the Department for Levelling Up, Housing and Communities is apparently not able to demonstrate how the funding fulfils the aims of the White Paper for sustained investment to tackle long-standing inequality—these are the points that I have made today and throughout the debates on the Bill. That was a cross-party committee. The National Audit Office also published a report, making a similar, stark plea to the department to urgently increase the capacity to assess and manage levelling-up funds.

So here we are, with a significant Bill carrying one of the Government’s key objectives, set out in a detailed report, and before it has really got going the Treasury is saying, “Well, you can’t spend anything without us first checking and signing it off”. We also have researched reports from the House of Commons Select Committee and the National Audit Office, both pointing to funding not being spent in perhaps the best possible way.

So the noble Baroness, Lady Hayman, has posed an important question. We ought to hear from the Minister that the Government are prepared to continue to invest significant sums in levelling up because, without that, levelling up will not occur. You can tell that from the White Paper, which I keep pointing to—it has done its job. Unless there is investment, levelling up will not happen. If the Treasury is putting a big brake on it, how are we going to level up? Perhaps the Minister can give us some pointers.

[Baroness Scott of Bybrook (Con)]

Amendment 18 in the name of the noble Baroness, Lady Hayman of Ullock, relates to officials publishing an assessment of the impact of the requirement that the Department for Levelling Up, Housing and Communities seeks consent from His Majesty’s Treasury for all capital spending on the delivery of Part 1 of this Bill when it becomes an Act.

Noble Lords will be aware that the department is working within a new delegation approach, which involves Treasury sign-off on new capital spend. However, there has been no change to the budgets of the Department for Levelling Up, Housing and Communities, and no change to our policy objectives. It is reported that the Department for Levelling Up, Housing and Communities requires approval from His Majesty’s Treasury for new capital projects, but this will not impact the levelling-up agenda. The recent change relates only to new projects; there is no change to the decision-making framework for existing capital programmes and no change to the department’s budgets. Moreover, noble Lords will be aware that, in the usual course of departmental business, the majority of programmes would require HMT approval in any case, so there is little change with this new capital spending approach.

The noble Baroness, Lady Hayman of Ullock, asked what implications the new spending control would have on the levelling-up agenda. The amendment to capital delegations referred to in press coverage has absolutely no implications for the Government’s policy agenda. The Government’s central mission remains to level up every part of the UK by spreading opportunity, empowering local leaders and improving public services. There has been no dilution of levelling up. There have been no changes to the size of DLUHC budgets, both capital and revenue, or to its policy objectives; neither does this impact how large programmes already agreed are being delivered—for example, the towns fund or the levelling-up fund.

I hope this gives the noble Baroness, Lady Hayman of Ullock, enough reassurance that she will not press her amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Baroness, Lady Pinnock, for her comments in this debate and the Minister for her response. Although I am not absolutely and entirely convinced by everything she said, I beg leave to withdraw my amendment.

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[Baroness Pinnock (LD)]

My Lords, this group of amendments from the noble Baronesses, Lady Hayman of Ullock and Lady Taylor of Stevenage, concern the cost of living, based on regional variations that could exacerbate the challenges in the very areas already defined by the Government as suffering multiple inequalities. The noble Baroness, Lady Taylor, made a case for investigating geographical disparities in relation to the cost of living, which was the theme of my noble friend Lord Shipley’s amendment that was agreed earlier today.

The cost of living crisis is hitting some families and some parts of the country much harder than others. The Centre for Cities has done an investigation into the differences in the impact of the cost of living crisis on different parts of the country. What it discovered, which is not surprising, is that some areas of the north, the Midlands and the West Country are harder hit than cities in the south and the south-east. That mirrors the geographical inequalities we have been debating today.

I picked out these figures because they are from west Yorkshire. Bradford is already a significant area of child poverty and family deprivation. The Centre for Cities study, which has data from as recently as May this year, shows that on average a family household in Bradford is poorer by £111 a month. Huddersfield, in my own council area—a similar area for child poverty and deprivation—was also poorer by £111 per month. Every household in every part of the country will be worse off as a result of the cost of living crisis and all that goes with it. But when I looked at towns in more southern parts of the country, I found that they were worse off by, for example, £61 a month, £59 a month and £65 a month—about half the hit that families in Bradford and Huddersfield have had.

There is an issue here that I hope that the Government are thinking about in considering levelling up. The arguments we have heard in earlier debates demonstrate that areas with existing poverty and a further impact on family finances are harder hit than others where family finances are more resilient to a cost of living crisis. That leads me to conclude that those same areas should be the focus of the Government’s levelling up. It is no good saying, as the Government have done through the towns fund and the levelling-up funds, that Newark and bits of North Yorkshire are in need of levelling up. I am not denying that they would benefit from investment, but the places to which I am referring are multiply deprived and multiply under the hammer of the cost of living crisis, because of their earlier multiple deprivations.

If the Government are serious about levelling up, those are the places that need a laser focus of help, investment, planning and strategies to lift them out of the doldrums, so that they can experience the quality of life that more financially well-off areas experience. That is why this series of amendments is important. It underlines the fact that more financial troubles heap additional burdens on to these already deprived households. I look forward to seeing whether the Minister agrees with me. I live in hope.

[Baroness Scott of Bybrook (Con)]

My Lords, I am really pleased to address the important issue of the cost of living, dealt with in Amendments 19 and 274, proposed by the noble Baroness, Lady Hayman of Ullock. The Government absolutely understand that people are worried about the cost of living challenges ahead. That is why decisive action was taken at the Spring Budget this year to go further to protect struggling families. Taken together, support to households to help with higher bills is worth £94 billion, or £3,300 per household on average across 2022-23 and 2023-24. This is one of the largest packages in Europe.

His Majesty’s Government allocate cost of living support on the basis of the needs of cohorts, rather than location. We are committed to helping those who need it most, wherever they are. There are existing mechanisms in place to monitor and evaluate regional, economic and social disparities, and these mechanisms are effective and ongoing, making the amendment, I suggest, redundant.

The UK2070 Commission leads an independent inquiry into city and regional inequalities in the United Kingdom, while the Office for National Statistics routinely produces a range of datasets with a regional and local breakdown, including on inflation. This, alongside the Government’s spatial data unit, which is transforming the way the UK Government gather, store and manipulate subnational data, means that these amendments, we believe, are not necessary.

Amendments 20 and 285, also in the name of the noble Baroness, Lady Hayman of Ullock, seek to establish an independent board to assess geographical disparities in England, and would allow for its parameters to be specified by regulations. I have already been very clear that we are committed to enabling scrutiny of our progress on levelling up. Through my department’s spatial data unit, we are embracing and seeking to build on this engagement, including through work to improve the ways in which the Government collate and report on spending and outcomes and consider geographical disparities in our policy-making. As noble Lords will know from my responses to earlier groups in this debate, we have also established the independent Levelling Up Advisory Council, chaired by Andy Haldane, so we do not believe we need any further, unnecessary proliferation of public bodies in this space.

Amendment 22, in the name of the noble Baroness, Lady Taylor of Stevenage, considers the appropriate granularity of data. We agree with her that for certain missions and policy areas, this is extremely important. The spatial data unit in my department is already working closely with the Office for National Statistics to improve the granularity of place-specific data and strengthen published local statistics. For example, it published local neighbourhood area estimates of gross value added earlier this year, enabling comparisons of economic output to be made between very small geographical areas.

I hope I have convinced and reassured the noble Baroness, Lady Hayman of Ullock, and that she will not press her amendment and others will not press theirs.

[Baroness Taylor of Stevenage (Lab)]

I am very grateful to the Minister for her answers. Once again, she gave the figures for the support the Government are offering. I am sure that people who are struggling with the cost of living crisis were grateful for that, but of course, they have had another massive hit recently with the rapidly increasing mortgage rate. As people come to the end of their fixed-term mortgages, they are suddenly getting the awful shock of seeing their mortgages go up. Along with a drop in the support the Government are giving on such things as energy costs, that will be an awful combination to really hit people’s budgets once again.

I welcome the Government’s assurance that there will be a great deal of scrutiny of the levelling up data; that is welcome and we look forward to seeing how it works out over time. I particularly welcome the focus on granularity of data. There is a tendency to focus always on what is sometimes described as the north/south divide, but of course, it is never as straightforward as that. There are areas right across this country with serious poverty and deprivation, and we need to make sure that we look at those and provide appropriate support. I am very pleased to hear about the local area neighbourhood analysis now coming forward from the unit, and I am therefore happy to beg leave to withdraw the amendment.

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Moved by

[Baroness Scott of Bybrook]

21: Clause 6, page 6, line 12, at end insert—
““devolved authorities” means—(a) the Scottish Ministers,(b) the Welsh Ministers, and(c) the Northern Ireland departments;“devolved legislatures” means—(a) the Scottish Parliament,(b) Senedd Cymru, and(c) the Northern Ireland Assembly;”Member's explanatory statement
This amendment defines the devolved authorities and devolved legislatures for the purposes of Part 1.

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Moved by

[Baroness Scott of Bybrook]

23: Clause 6, page 6, line 14, at end insert—
““His Majesty’s Government” means His Majesty’s Government in the United Kingdom;”Member's explanatory statement
This amendment makes it clear that references to His Majesty’s Government in Part 1 are to His Majesty’s Government in the United Kingdom.

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[Lord Shipley (LD)]

Governor-General of the West Midlands—there, my Lords, is a thought. We are now starting to laugh, and I think there is a danger here that the general public will just not understand what all these titles are for. I would immediately say a school governor, a prison governor or the governor of a US state. We can think of various possibilities, but a governor of a combined county? I really do not think that fits with the structure of local and subregional government that we are talking about.

Under Clause 40(2)(c) the title could be “elected leader”. This is very strange, because councils have leaders and those leaders are elected—so I am not clear what the difference is between the “elected leader” of a CCA and the leader of a council. The constituency may be different: that is, it is the whole electorate for the mayor, but for the leader it is the councillors of that council who have to vote to elect that person as the leader of the council as well as leader of the group. This is getting too confusing.

The next thing could well be that if a mayoral CCA is entitled to call its mayor something else, can other combined authorities that have been in existence for a number of years change the title of their mayor? I just do not know why we are going down this road at all. I just say all that to the Minister. There may be something that I have not thought of that she can alleviate my concerns with, but I just wish that this clause and the associated clauses would just go away. It is not something that I want a vote on; I just hope that I will not have to stand up when the statutory instrument comes through for the creation of a CCA and ask why it is that the name has altered to something like a “county commissioner”, which the general public do not comprehend.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 25, 27, 35 and 53, tabled by the noble Baroness, Lady Hayman of Ullock, regard the boundaries and memberships of CCAs and combined authorities. The Bill includes our intended criteria for establishing and changing boundaries of CCAs and CAs in Clauses 44, 46, 62 and 63.

Proposals to change the area of a combined county area are generated locally in line with our principle of locally led devolution. The process to propose a boundary change must include a public consultation being undertaken. The Secretary of State has to assess any such proposals, including the results of the consultation, against a set of statutory tests and will consent to making the requisite secondary legislation only if they are content that the statutory tests are met. The legislation is therefore subject to a triple lock of agreement from the Secretary of State, the consent of the local area and parliamentary approval. I think it is important that we look at that as a triple lock.

Any proposal from the local area has to demonstrate that it will improve the economic, social and environmental well-being of some or all of the people who live and work in the area, suitably reflecting their identities and the interests of local communities, and will deliver effective and convenient local government. As such, the expansion of a CCA or CA cannot be pursued for political advantage. It must benefit the local area.

[Baroness Hayman of Ullock (Lab)]

I want to ask for clarification. The test is to carry out a consultation. When the Secretary of State takes that consultation with the local community into account, can he make a decision against what the majority of that community voted for?

[Baroness Scott of Bybrook (Con)]

It is more complex than that. It is not a referendum but a consultation. Therefore, there will be many views for, against, in the middle and all over the place, but he will obviously have to take account of views. If everyone said they did not want something, I am sure the Secretary of State would take note of that; it is part of those tests.

The main focus of the Local Government Boundary Commission for England, which the noble Baroness brought up, is a rolling programme of electoral reviews of local authorities; this is where its skills and experience mainly lie. It would not be appropriate to consult it on the proposed boundaries of CCAs and CAs. The requirement for public consultation and statutory tests for regulations provide, we believe, sufficient protection that further consultation is unnecessary. For these reasons, I hope the noble Baroness will not press her amendments.

Amendments 37 to 39 in the name of the noble Lord, Lord Shipley, seek to remove Clauses 40 to 42, which set out the process to allow the mayor of a CCA to change to a locally appropriate title that resonates with local stakeholders. Some areas are reluctant to adopt a mayor governance model as they feel the word “mayor” would be confusing and inappropriate for their area, preventing access to a strong devolution deal.

We had this discussion in Committee. There are many areas in this country where every town in a county, or even a district, will have a local mayor. That has been an issue for some authorities when they look into a CCA for the future. The noble Lord talked about directly elected leaders. Some authorities have said to us that they would prefer to call the person who leads—doing the same job as a mayor in a county authority—a “directly elected leader”. It is just a name; the job itself is the same.

To minimise confusion, the clauses include the protection of a shortlist of possible titles—it does not have to be used; it just gives some ideas—as well as a mechanism for areas to use any other title they choose, providing they have regard to other public officeholders’ titles in the area of that authority. We are trying to give as much local flexibility as possible to allow for local circumstances, so that the name of the directly elected person to lead that combined authority is the best name to use in that area.

Amendment 52, also in the name of the noble Lord, Lord Hunt of Kings Heath, regarding the timing of an order changing a combined authority’s area, would add further inflexibility to the process. An MCA can be expanded only at the time of a mayoral election, for reasons of democratic accountability; those affected by the mayor’s decisions will have had the opportunity to take part in that mayor’s election. Consequently, it can already be several years between an area expressing an interest in joining an MCA and such expansion coming into force. Introducing additional inflexibility would impede and potentially further delay—

[Lord Hunt of Kings Heath (Lab)]

My Lords, I will not delay the House for long but, with the greatest respect, this was a twinkle in the eye of Mayor Street a few months ago when the Wolverhampton Express & Star reported it. People in Warwickshire were innocently going about their own business, then along came Mr Gove to put pressure on them to make this application. The Minister is indulging in a fantasy that this is somehow driven by Warwickshire people desperate to join the West Midlands.

I joke about Wiltshire but the Minister will know about the sensitivities of shire counties and their relationship with urban metropolitan districts, which I well understand. My noble friend Lady Anderson’s Staffordshire would be another case in point; it would not wish to be ruled, in a sense, from Birmingham. It really is too much: the rules are being changed to allow for one gerrymander, in a foolish attempt to save Mr Street’s political career. That really will not do.

I am not going to go on because we have two other groups. In the next—

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[Baroness Pinnock (LD)]

My Lords—

[Baroness Scott of Bybrook (Con)]

May I answer the noble Lord first? I am not talking about the West Midlands or Warwickshire; I am talking about what is in the Bill and why we are doing what we are doing. I will come on to the Warwickshire issue in a bit, but this has nothing to do with it as far as I am concerned. What I am saying now is about the Bill and not about Warwickshire.

[Baroness Pinnock (LD)]

I thank the Minister for giving way. Do the Government have any limit for the expansion of mayoral combined authorities? If Warwickshire is allowed to accede to the West Midlands —Worcestershire is nearby and Staffordshire is next door. What is on the other side? I am thinking of between Coventry and Birmingham. It could get very large, so I want to know if there is a limit. This is a serious question, because when the West Yorkshire Combined Authority was created, we were not permitted to include parts of North Yorkshire, which had always been part of that combined authority before it had mayoral status. This is an interesting question for me in West Yorkshire, as well as for those who live in the West Midlands area.

[Baroness Scott of Bybrook (Con)]

My Lords, as we have said before, there are clear regulations that the Secretary of State will look at when he considers any bid. We have made it clear that they have to be geographically sensible economic areas, so I cannot think of anything growing and growing, because it will not. But it will be local people who put forward the bid; the Government will not be saying to any local area, “You have to join”. These are locally led bids for areas that local people think are the right economic areas to do business in and to deliver for them. How big will they be, realistically? They will not be what the noble Baroness suggests, of course, because those would be too big to be really good economic areas, but it is up to local people to do this, as I keep saying.

One of the principles that underpin our devolution agenda is that devolution deals are agreed and implemented over a sensible geography. We want to remove any barriers to neighbouring local authorities joining a combined authority where there is a strong economic, social and environmental rationale for doing so. The new local consent arrangements under Clause 57 mean that the decision would be given to the mayor and council wishing to join the CA. The mayor is democratically accountable to the whole existing CA area, so it is right that they should be the decision-taker for decisions on changes to that whole area.

The arrangements proposed in this amendment could mean that an expansion of a CA area that evidence shows would be likely to improve outcomes for the proposed whole new area could end up being vetoed by just one existing constituent council if the CA’s local constituency requires unanimous agreement from its members on this matter. This has been an issue in the past. This potential impediment to furthering devolution cannot be right; one small authority cannot stop a larger area that wants to grow to be more economically viable.

In his explanatory statement for Amendment 53A, the noble Lord references

“reports that areas may be added to the West Midlands Combined Authority prior to the 2024 Mayoral Election”.

Warwickshire County Council’s plans are part of a local process for the area—county and district councils—and it is up to it to apply to join the WMCA. If Warwickshire decides to pursue this, it will undertake a public consultation, following which it may submit its proposals to the Government. The Government will carefully consider any such proposals, as statute provides. No decisions have been taken by the Government. With these reassurances, I hope that the noble Lord feels able to not move his amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for her response to quite a charged debate. I thought I was quite good on the geography of the West Midlands, but I learned a bit tonight. We are not entirely satisfied with where the Bill is on this issue at the moment. I beg leave to withdraw my amendment, but, as my noble friend Lord Hunt said, I feel sure that we will return to this.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Thursday 13th July 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

34: Schedule 2, page 286, line 39, at end insert—
“(5A) The requirements in sub-paragraphs (4) and (5) may be satisfied by things done before the coming into force of this paragraph.”Member's explanatory statement
This amendment enables the consultation and recommendation requirements relating to regulations made under paragraph 12 of Schedule 2 to the Bill (conduct and questioning of elections for the return of mayors) to be met by steps taken before those provisions come into force on Royal Assent.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, in moving government Amendment 34, I shall also speak to Amendments 40 to 42, 44 to 50, 55 to 57, 290, 297 and 306.

Amendments 34 and 306 give those preparing for and running the proposed east Midlands CCA mayoral elections in May 2024 early clarity as to the rules. Amendment 306 commences Clause 25 and Schedule 2, which contain the relevant powers upon Royal Assent. Amendment 34 enables the statutory consultation with the Electoral Commission, and the commission’s recommendations as to candidate expense limits, to occur before commencement in the east Midlands.

Amendment 50 amends Schedule 4, the current drafting of which provides only for mayoral combined authorities and mayoral combined county authorities to input on local skills improvement plans covering any of their area. However, the devolution framework in the levelling up White Paper states that this will be available to all CAs and CCAs and individual local authorities with a devolution deal. This amendment will allow all CAs and CCAs, including those without mayors, as well as local authorities with devolved adult education functions, to have their views on the relevant local skills improvement plans considered by the Secretary of State. These alterations will allow devolution deals in areas with devolved adult education functions to be fully implemented.

Amendments 55, 56, 57, 290 and 297 seek to amend Clauses 65 and 231. In its 24th report, the Delegated Powers and Regulatory Reform Committee recommended that any regulations regarding the membership of CAs and CCAs, as made through powers confirmed by Sections 104C and 107K of the Local Democracy, Economic Development and Construction Act 2009 or this Bill should be subject to the affirmative resolution procedure rather than the existing mixed resolution procedure, whereby only the initial statutory instruments made are subject to the affirmative process. I thank the committee for its work in relation to the powers in the Bill. These amendments accept that recommendation and will ensure that an appropriate level of scrutiny is achieved for regulations relating to membership of CAs and CCAs.

The remaining government amendments in this group are all consequential, amending the Equality Act 2010 and the Localism Act 2011 to apply provisions in these Acts to CCAs to allow the model to work in practice. Given their importance in allowing CCAs to operate as a local government institution, and to enable the first CCA mayoral election, I hope that noble Lords can support these amendments.

[Baroness Pinnock (LD)]

My Lords, I begin, as I generally do, by reminding the House of my relevant interests as a councillor and a vice-president of the Local Government Association.

I wish particularly to speak to government Amendment 34. I was quite astonished when I read it; it brings to the Bill a new issue that has not been discussed previously either at Second Reading or in Committee. I was also astonished because the amendment attempts to bypass the independence of the Electoral Commission. The commission was established to improve trust in our electoral arrangements. That is its function, and we rely on it to provide its stamp of approval for the arrangements made for elections.

To use a strong word, this is quite a pernicious amendment because it attempts to bypass the independent consultation of the Electoral Commission. I will tell the House what it says. The Bill, in its Schedule 2, currently expects the Electoral Commission to be involved in setting the arrangements for mayoral elections. On page 286, paragraph 12(4) states that

“the Secretary of State must consult the Electoral Commission”

and in sub-paragraph (5) that

“the power of the Secretary of State to make regulations … is exercisable only on, and in accordance with, a recommendation of the Electoral Commission”.

Government Amendment 34 states that the requirements in the two sub-paragraphs I have just quoted

“may be satisfied by things done before the coming into force of this paragraph”.

In other words, the Government are going to bypass those requirements. That cannot be right.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, most of these amendments are technical and non-controversial, so I would love to have repeated the famous 10-word speech given by my noble friend Lady Hayman on Tuesday and simply agreed with them. However, we share with others on these Benches some concerns with government Amendment 34. The Bill currently allows the Secretary of State to make regulations for the conduct of mayoral elections, such as regulations relating to the registration of electors and election expenses. While we do not oppose this power and see it as an inevitable part of the process for mayoral elections, the Government should absolutely involve the Electoral Commission as part of this.

We therefore welcome that sub-paragraphs (4) and (5) state that before making these regulations

“the Secretary of State must consult the Electoral Commission”.

It was widely assumed that such consultations would take place following Royal Assent, but Amendment 34 means that the consultation can begin prior to commencement. Can the Minister explain why this is necessary and confirm that it will not reduce the Electoral Commission’s vital role in this process, as rightly set out by the noble Baroness, Lady Pinnock?

It would also be helpful if the Minister could make clear exactly how the Secretary of State intends to exercise these powers. I hope she will understand the concerns that the expedited process is being introduced to facilitate a certain mayoral election—I am not referring to the east Midlands. I look forward to hearing the Minister’s response.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Baronesses for their input on these government amendments. These amendments, particularly Amendments 34 and 306, will ensure that those tasks we are planning for in running the May 2024 election for the east Midlands combined county authority mayor have real early clarity as to the rules for the conduct of the election.

The Government are absolutely clear about the role of the Electoral Commission. It has an important role in scrutinising all draft electoral legislation. It is therefore essential that it has sufficient time to undertake this role without causing unnecessary delay to the legislation itself. I will make it very clear: consultation with the Electoral Commission will still take place in full, and will still bind the regulation making. This amendment is just changing the timings for that.

Amendment 34 agreed.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Baroness, Lady Hayman of Ullock, for outlining her rationale for tabling Amendment 36: to clarify the relationship between PCCs and mayors, and their respective roles and responsibilities. She asked if the Government want to phase out PCCs. There is no intention to do so. The intention is to allow mayors only in some areas to exercise PCC functions. Some areas will never have mayors who do so because only in coterminous areas can mayors take those functions.

The levelling up White Paper set out the Government’s aspirations for—

[Baroness Pinnock (LD)]

The noble Baroness said that you could have a combined police and crime commissioner and mayor only where there is coterminosity. If combined authorities are now able to expand, will that undo that requirement?

[Baroness Scott of Bybrook (Con)]

No. I hate to bring up the West Midlands—I know the noble Lord opposite will be very pleased that I am—but the Mayor of the West Midlands has a choice: he can either agree to pursue the expansion to include Warwickshire, which has its own PCC, so he could no longer take the PCC role, or he can take the PCC role and therefore not Warwickshire. That is the reality of what we are doing. I hope I have explained that.

[Lord Hunt of Kings Heath (Lab)]

I think that is right, because you cannot be PCC over two police forces; I fully understand that. What I would say is that if I were in Warwickshire, I would think, “At some point, they will merge West Midlands Police with Warwickshire”. That is just an option for the future, but the Minister is absolutely right about the fact that the mayor cannot oversee two forces.

[Baroness Scott of Bybrook (Con)]

I hope I have clarified that point. What happens in the future happens in the future; we are talking about this Bill, and the Bill does not change that at all. As I said, the levelling up White Paper set out the Government’s aspiration for, where policing and combined authority boundaries align, combined authority mayors to take the lead on public safety and take on the role of the PCC—and to take steps to remove the barriers to more CA mayors taking on PCC functions.

In an area where a devolution deal is agreed and the policing and CA boundaries are not coterminous, the Government wish to encourage close co-operation between the combined authority mayor and the PCC. While it is important for the area to shape exactly what strong partnership looks like in practice, one way of achieving this would be to use the non-constituent or associate membership model being established via provisions in the Bill. This could allow the PCC a seat at the table and allow the combined authority to confer voting rights on the PCC on matters relevant to public safety. The information and clarifications sought by this amendment are, we believe, already available, and we do not agree that there is any need for a further statement.

I turn to Amendment 54. Clause 59 amends the existing provisions concerning the local consent requirements for the combined authority mayors to take on the functions of a PCC. This reflects that this transfer is merely a process whereby functions are transferred from one directly elected person to another, without any implications for the local authorities in the area. Clause 59 maintains the triple-lock model for conferring functions. That triple lock is that any transfer or conferral of powers needs local consent, the agreement of the Secretary of State and approval by Parliament.

The change which Clause 59 makes is that in future, local consent will be given simply by the mayor, who is democratically accountable across the whole area. The transfer of PCC functions to a mayor in no way diminishes the role of local government in community safety. The local authority’s role in community safety partnerships remains the same and the police and crime panel will still exist, being responsible for scrutinising the mayor as the PCC in the same way it scrutinised the PCC.

A mayor having PCC functions will, we believe, be able more successfully to pursue their other ambitions and secure better overall outcomes for their community. A deputy mayor for policing and crime is appointed who can take on certain day-to-day responsibilities for this role, ensuring that the mayor can continue to focus on all their other priorities. The Government are clear that we expect mayors to discuss any proposal seeking a transfer of a PCC function with their combined authority in advance of submitting a request for such a transfer to government. This is in line with the existing expectation that mayors seek the views of the relevant PCC, whose consent is not required in legislation.

There is evidence of the considerable benefits that a mayor having PCC functions brings. For example, in Greater Manchester, following Greater Manchester Police’s escalation to “Engage” by His Majesty’s Inspectorate of Constabulary and Fire and Rescue Services, and the resignation of its former chief constable, the mayor appointed a new chief constable to develop and lead the force’s transformation programme, the result of which has been to ensure that the force focuses on getting the basics right and improving outcomes for the region. Under the leadership of the chief constable and with oversight and support from the mayor, Greater Manchester Police is now responding faster to emergency calls, and the number of open investigations has halved since 2021, and the inspectorate released the force from “Engage” in October 2022 on the strength of the confidence in its improvement trajectory. The Mayor of Greater Manchester, Andy Burnham, was clear that he, as the PCC for Greater Manchester, was accountable if things did not improve and that he should be held to account at the ballot box.

And finally, my Lords—although I think that says it all—government Amendment 307 provides for early commencement of Clause 59, which would allow for the statutory requirements that enable a transfer of PCC functions to CA mayors to be undertaken from the date of Royal Assent. This will enable the timely implementation of secondary legislation required for PCC function transfers to mayors to take place in time for the May 2024 elections.

The Government’s intention is to align as far as possible with the Gould principle relating to electoral management, which would suggest that any statutory instruments transferring PCC functions to mayors for May 2024 should be laid six months ahead of the elections in early November to provide notice to candidates, the electorate and the electoral administrations of any changes. It is for these reasons that the Government are unable to accept Amendment 307A proposed by the noble Lord, Lord Bach. It would time out any PCC transfers in time for mayoral combined authority elections in 2024 where there is a local desire for this.

I hope that noble Lords will feel able to accept the early commencement amendment for Clause 59 and that, following these explanations, the noble Baroness will feel able to withdraw her amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for her response. I beg leave to withdraw my amendment.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

40: Clause 43, page 39, line 27, leave out subsection (9)
Member's explanatory statement
This amendment removes Clause 43(9) on the basis that it overlaps with the power in Clause 231(1)(c) for regulations under the Bill to make consequential etc provision.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

41: Clause 44, page 40, line 23, leave out “Part” and insert “Chapter”
Member's explanatory statement
This amendment means that the definition of “local government area” in Clause 44(6) has effect for the purposes of Chapter 1 of Part 2 rather than Part 2 as a whole.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

42: Clause 45, page 41, line 28, leave out subsection (10)
Member's explanatory statement
This amendment removes Clause 45(10) on the basis that it overlaps with the power in Clause 231(1)(c) for regulations under the Bill to make consequential etc provision.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

44: Schedule 4, page 296, line 6, leave out “(1)” and insert “(1F)”
Member's explanatory statement
This amendments corrects a cross-reference in the amendment to insert subsection (1G) into section 101 of the Local Government Act 1972.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

55: Clause 65, page 63, leave out lines 4 and 5
Member’s explanatory statement
This amendment is consequential on the amendment to Clause 65 in the Minister’s name which provides for any regulations made under section 104C(1) or (4) of the Local Democracy, Economic Development and Construction Act 2009 (as inserted by Clause 61 of the Bill) to be subject to the affirmative resolution procedure.

--- Later in debate ---

[Lord Cashman (Lab)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Burt of Solihull. I will not repeat the arguments that she has laid out before your Lordships.

I have not spoken before, so I apologise to your Lordships, but I have been motivated to do so by what I believe is potentially an unfair subsidy to one of the wealthiest landowners in the country, the Church of England, with, as the noble Baroness, Lady Burt, outlined, assets that are currently valued at £23 billion. I also believe it is discriminatory. If we are going to do this for churches, can we equally support mosques, the rather beautiful Buddhist temples around the country, the amazing synagogues and, equally, the Quaker meeting rooms? What applies to one should apply throughout.

If, as we have heard and has been accounted through the recent census, church attendance has diminished severely and churches are not being used, the parishes should be conserved as local hubs and the churches handed over to local authorities. There is a really good model that I know personally: St Matthias, the oldest church in Poplar, east London. It was deconsecrated and handed over to the local community. I am a trustee. Neighbours in Poplar and others have turned it into a thriving hub that serves those of all religions and none. That is a really good model, and it is why I am speaking against government Amendment 60. This is a potentially unfair subsidy that discriminates, and there should be no place for that in a Bill that is about levelling up.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 59, in the name of the noble Baroness, Lady Scott of Needham Market, and introduced by the noble Baroness, Lady Thornhill, seeks to allow parish councils to pay allowances for dependants’ care costs to their councillors. I am grateful to the noble Baroness for raising this important issue again, and I recognise the admirable aim of her amendment.

It is important that local communities are properly represented by their local authorities at all levels, including parish councils. Giving parish councils the option of paying these allowances, though, would create an expectation that they would be available to all their members, and that would place an unknown, unfunded and potentially significant burden on the modest finances of parish councils. It is not the policy of the Government to place such burdens on local authorities at any level, and we believe it would be irresponsible to do so.

We do not have, and have not been provided with, any evidence of the scale of the demand for care allowances by parish councillors, nor of the likely costs to their councils, and we cannot be confident that the benefits here would outweigh the costs to the local taxpayer. We have a responsibility to ensure that we take action that could increase council tax further, and put extra pressures on residents, only where absolutely necessary. But I am happy to have further discussions with any noble Lords or noble Baronesses and to consider any evidence that they may have at a later date. However, until we understand this issue better, the Government cannot support the amendment.

Weymouth was brought up. Weymouth council came to the Government, as was said, but there was insufficient information for Ministers to make an informed and substantive decision at the time. Our concerns about the impact on parish councils’ finances remain, and we will respond shortly to Weymouth town council’s proposal.

Moving to government Amendments 60 and 308, we have listened carefully to the concerns that were expressed in Committee that some parish councils believe that they are prohibited from providing funding to churches —to answer the noble Lord, Lord Cashman—and other religious buildings. I pay tribute to the right reverend Prelate the Bishop of Bristol, my noble friend Lord Cormack and the noble Lord, Lord Best, for bringing this issue to the House’s attention. I am pleased to say that the Government wish to move this amendment to clarify that there is no such prohibition.

We have heard that stakeholders’ confusion comes from the Local Government Act 1894. That Act set out a clear separation of powers between the newly created civil parishes, which exercised secular functions, and what are now parochial church councils, which exercise ecclesiastical functions. In setting out the scope of the powers conferred on civil parishes, the Act gave parish councils powers over

“parish property, not being property related to the affairs of the church or being held for an ecclesiastical charity”.

Some stakeholders appear to see this wording as a general prohibition which prevents parish councils doing anything in relation to church or religious property, even under their powers in other legislation. The Government did not agree with this interpretation. Their view was that this wording simply sets out what is and is not a parish property for the purposes of the powers of the 1894 Act. This is supported by the Hansard record for 1 February 1894, when the then right reverend Prelate the Bishop of London explained why he had proposed including this wording by way of amendment.

The Government do not think that there is any general or specific provision in the 1894 Act which prohibits parish councils funding the maintenance and upkeep of churches and other religious buildings. Therefore, this amendment does not seek to make any substantive changes to the existing legal provision. Instead, it clarifies that the 1894 Act does not affect the powers, duties or liabilities of parish councils in England under any other legislation. This will give councils the comfort that, even if they disagree with the Government’s interpretation of the 1894 Act, it cannot prohibit them using their other powers to fund repairs or improvements to local places of worship, if they choose to do so. Government Amendment 308 makes provision for this new clause to come into force two months after Royal Assent.

I listened very carefully to the noble Baroness, Lady Burt of Solihull, and the noble Lord, Lord Cashman. In reality, this is going to allow something that in many areas is happening already, and we have heard examples of that. In churches and other religious buildings across this country many community activities are taking place, from coffee mornings to luncheon clubs, knitting circles and toddler groups. I think it is correct that we make it very clear as a Government that parish and town councils are legally able to support those sorts of activities and can help such facilities along a bit—often the only community facility is the church or another religious building—if the parish council or the town council agrees that it is the right thing to do on behalf of that community.

[Baroness Thornhill (LD)]

I thank the Minister for her considered response. However, it saddens me that the Government feel that this is not a decision that a parish council can make for itself. I will be blunt and say that it is stunningly patronising. It has been dressed up as an overwhelming regard for a parish council’s budget when, on a daily and weekly basis, the Government take decisions that increase council tax. That is another debate for another day. We are just asking for parish councils to have the power to make their own decisions.

What evidence do the Government feel would be acceptable? Lots of parish councillors might say, “We can’t get people unless we do this”, or, “Actually, there’s only one or two that ever need this but they’re really good people and we’d like to be able to give it to them”. Can I reverse that and ask the Government what evidence they feel would be needed? The bottom line is this: why can parish councils not make the decision for themselves? I beg leave to withdraw my amendment.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

60: After Clause 78, insert the following new Clause—
“Powers of parish councilsAfter section 19 of the Local Government Act 1894 (provisions as to small parishes), insert—“19A Powers under other enactments(1) Nothing in this Part affects any powers, duties or liabilities conferred on a parish council by or under any other enactment (whenever passed or made).(2) This section does not apply in relation to community councils (see section 179(4) of the Local Government Act 1972).””Member's explanatory statement
This amendment inserts a new section into the Local Government Act 1894 to clarify that the powers conferred on parish councils under Part 1 of that Act do not affect any powers, duties or liabilities of parish councils conferred by or under any other enactment (whenever passed or made).

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Thursday 13th July 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am very grateful to the noble Lord, Lord Northbrook, for bringing both these amendments forward. It enabled a lot of thoughtful discussion in Committee and again now on Report.

It is disappointing that there has not been adequate consultation on the particular BID and the programme that the noble Lord, Lord Northbrook, spoke about. I did some work in the Royal Borough of Kensington and Chelsea after the Grenfell disaster. The Grenfell disaster was literally the worst example of a council not listening to its residents. It had been told for many years of the concerns that residents had and had not listened to them. Of course, that has changed the way that many councils now listen to their residents—for example, through resident programmes. I had hoped that was the case there, but perhaps it is just this example where it is not. Let us be hopeful and optimistic that that is the case.

On these Benches we absolutely support the principle that residents should be engaged in key changes to their local areas, including business improvement districts. It is just as important that residents in an area are engaged as it is for the businesses participating in the zone concerned. We are in the process of a £1 billion town centre redevelopment in my area. Every step of the way, we have taken the trouble to consult extensively with residents. I look forward to hearing the Minister’s comments on how there may be some more specific consultation for BIDs and how the Government might further consider that.

In relation to the other amendment the noble Lord spoke to, in principle we fully support the full engagement of residents in decision-making, although we have some concerns about the financial implications of the proposals to compel the use of outside agencies. I think the noble Lord used the term third parties—that might be a different independent third party, and sometimes could be interpreted as outside agencies and consultants, which are notoriously expensive when they do this work on behalf of councils.

I draw attention to the report pulled together by the RSA and the Inclusive Growth Network called Transitions to Participatory Democracy: How to Grow Public Participation in Local Governance. It makes a number of recommendations on growing the engagement of local people so that you have a more sustained participation journey, rather than these out-of-the-blue consultations on planning and other things happening at decision-making points, in which people come to the table with a negative view right from the start. It is much better if people feel that they have more permanent engagement with their local authority.

The report recommends that these routes should be developed over time, strongly based on meeting people and local organisations where they are and not expecting them to engage on council territory. We need consultation to take place earlier in the process—so that people are engaged in the design of schemes or projects and they are not produced like a rabbit out of the hat for people to comment on—and never when decisions have already been taken. If you have already taken the decision, do not tell people that you are consulting on it because they will see through that straight away. That is really important.

This has been a very useful prompt to think these issues through. We look forward to hearing the Minister’s comments.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 64 in the name of my noble friend Lord Northbrook concerns a review of business improvement districts. I have listened very carefully to this debate and the debate in Committee. We want BIDs to work with and alongside residents and members of the local community. It is important that the projects and activities that a BID delivers benefit the local area and encourage more people to visit, live and work there. Residents and members of the community are not prohibited in legislation, as I said in Committee, from being consulted on a new BID proposal. I know many BIDs that include many stakeholders, including the communities they serve. There is nothing to stop a local authority doing that.

It is clear that we need to explore how BIDs can work better with residents and communities, but I do not believe that legislating for a review in this Bill is the right approach. I therefore ask my noble friend to withdraw this amendment, but with my reassurance that I will take this away and consider the proposition of a government review of the BID arrangements. I would welcome further conversations with interested noble Lords to take this forward.

On Amendment 65, there is a statutory framework, and clear rules for consultation already exist in some areas, such as planning. There is also a statutory publicity code which is clear that all local authority communications must be objective and even-handed. There is support and guidance for local authorities on how they should do this. As I said, councils also carry out non-statutory consultations to allow residents to shape local decisions and plans.

I absolutely agree with the noble Baroness, Lady Taylor of Stevenage, that this should not be a one-off; it works much better when local authorities have a good ongoing relationship and conversation with their communities. It is then much easier to deal with issues such as those my noble friend Lord Northbrook raised in Kensington and Chelsea, because it is a continuation of an ongoing conversation. I encourage all local authorities to look at how they can do that better. Greater involvement for local people can be only a good thing. We do not think it is for the Government to tell councils how to do it. Most councils know how to do it; they know what works best in their area and get on with it.

I agree with the noble Baronesses opposite that the concern over the requirement for all consultations to be carried out by third parties is that it would impose additional costs on local authorities and may encourage less consultation and engagement rather than more because they just cannot afford it. I therefore hope my noble friend will agree not to press his amendment.

[Lord Northbrook (Con)]

My Lords, I am most grateful to all noble Lords who participated in debates on these amendments. I particularly appreciated the offer of the noble Baroness, Lady Scott of Bybrook, to look at the way bids work to ensure better relationships with residents.

On Amendment 65, I appreciated the noble Baroness, Lady Taylor of Stevenage, talking about the costs of outside consultants. I was hoping that

“having the consultation materials and process submitted in draft to the main stakeholders for their review and comment in advance of the consultation”

would cover that point.

In the meantime, having thanked all noble Lords, I wish to withdraw my amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Tuesday 18th July 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I hoped we were hearing the voice of future generations up in the Gallery when the noble Baroness, Lady Pinnock, was speaking. Perhaps they were reminding us to think about affordable housing. The noble Lord, Lord Lansley, said that affordable housing was at the heart of some of this debate, and that is certainly the view of our Benches.

The noble Baroness, Lady Pinnock, set out the issues relating to the infrastructure levy that are causing such great concern across the sector. As she mentioned, this has resulted in an unprecedented step in my time in local government, with over 30 key organisations writing jointly to the Secretary of State to set out their concerns. They are united in saying that the introduction of the infrastructure levy could

“make it harder, not easier, for local leaders and communities to secure the benefits of new development”.

They point to the developer contributions that are being generated by the community infrastructure levy and Section 106 systems, which generated £7 billion in 2018-19 to support housing, infrastructure and services. I share their concerns that this new levy has the potential to reduce this amount.

I take the point made by the noble Lord, Lord Lansley, about the discussions that we have already had in Committee, but these views have been expressed by powerful bodies in our sector. His points about the design of the system are well made, but that should have been considered before the Bill came to the House. Points from the noble Lord, Lord Young, about trying to operate this discussion on a key part of the Bill in a vacuum are also well made.

The main concern of the organisations that wrote to the Secretary of State is the potential for this reform to

“leave communities with fewer new social and affordable homes, mixed and balanced developments and less of the infrastructure they need”.

They fear that the “upheaval” of introducing a new system would build delays and uncertainty into the planning system at a time when there is an urgent need to deliver affordable housing quickly, and that CIL and Section 106 would

“not be improved by these reforms”

and would need to be managed alongside the new levy. They welcome the principle of allowing authorities to borrow against developer contributions, but point out that the financial risk of doing so, when the final assessed amounts are “uncertain”, would probably be too great for local government finance officers.

In addition to the risks flagged by these key representatives of the sector, it is not yet clear what impact the infrastructure levy will have on permitted development. At present, developers engaging in permitted development make little, if any, contribution to infra- structure, in particular to affordable housing. This anomaly also needs to be resolved in any new infrastructure levy system.

I am grateful to many of the organisations that signed that letter which have also been kind enough to send us briefing material, and to the office of the Mayor of London, which has provided us with very strong evidence about the potential detrimental impact this would have on building more affordable housing in London. Its figures suggest that, had the levy been in place over the last five years, it would have resulted in between 4,500 and 10,000 fewer affordable homes, and could have made up to 30,000 homes of all tenures unviable.

We completely understand the need to ensure that developments provide the infrastructure to support them, but this proposed new levy adds layers of complexity, because it is being grafted on to an already complex system. The money that developers will have to pay to support transport, schools, health centres, open and play space, and, critically, affordable housing will be calculated once a project is complete instead of at the planning stage, as it is currently. This has resulted in concerns that the funding will be delayed or, potentially, lost altogether. The charging system will be complex and labour-intensive, putting further pressures on the local authority planning departments that we know are already at breaking point.

The reply to the organisations that wrote to the Secretary of State from the Minister responsible, Rachel Maclean, said that she would be looking at the issues they raised in detail and would be organising a round table very shortly. I believe that round table may have taken place in very recent days. However, as the sector has been raising these concerns since the infrastructure levy was first mooted, it is a shame the round table did not take place many months ago.

We accept that the Government have made some concessions on the infrastructure levy clauses, but they do not meet the basic challenge of explaining to the sector just how this new proposal will deliver more resources more effectively than the current system. For that reason, if the noble Baroness, Lady Pinnock, wishes to test the opinion of the House on her amendment, she will have our support. We understand that Amendment 90 is consequential to Amendment 68.

Turning to other amendments in this group, we hope the Government recognise the importance of the infrastructure levy supporting the delivery of the levelling- up missions. Our concern all through the passage of the Bill has been what mechanisms there are to link the missions to planning, funding and the infrastructure levy. My Amendment 69 to Schedule 12 is intended to address this, as well as ensuring that there is a commitment to the infrastructure levy being shared between tiers of local government in non-unitary areas.

My Amendment 70A wound enshrine in the Bill that the application of the infrastructure levy is optional. I am very grateful, as others have said, to the Minister for the many discussions we have had in relation to the Bill, in particular this part of it. I believe, and hope she will confirm, that it is the Government’s intention that infrastructure levies should be optional, and that government Amendment 82 enshrines this in the Bill.

Amendment 71, in the name of the noble Lords, Lord Best and Lord Young, and my Amendment 71A have similar intentions of ensuring that the level of affordable housing funded by developers in the local authority area will meet the needs of that area as set out in the local development plan. I referred to the critical links that need to be built between planning and the infrastructure levy earlier on. When it comes to affordable housing, this is absolutely essential. We recognise the very significant concessions the Government have made on affordable housing, so, rather than pushing Amendment 71A to a vote, perhaps we can have further discussions before the planning and housing sections of the Bill to build that link between the provision of affordable housing through the infrastructure levy and the local plan.

The noble Lord, Lord Stunell, gave clear evidence of the principle behind the current definition of affordable housing. We agree that the current definition is wholly deficient, as much of the housing included in it is absolutely not affordable to many of those in desperate need of housing. We feel that the Government should take an inclusive approach to developing a new definition by working with the sector and housing charities to reach an agreed, appropriate definition of affordable housing. We would support the proposal in the amendment from the noble Lord, Lord Stunell, that a link with the median income in the relevant local planning area would be a good starting point for this definition.

As mentioned by the noble Lord, Lord Best, we are very grateful to the Minister for tightening up the wording she introduces in Amendments 72, 73 and 75 to ensure that developers must now “seek to ensure” the affordable housing funding level is maintained. We are also grateful for her clarification in Amendment 74 that funding of affordable housing is to be provided in the charging authority’s area and, in Amendment 79, that charging authorities can require on-site provision of affordable housing through the infrastructure levy. We believe this change will encourage the development of mixed housing and hopefully mixed tenure communities, which have proved over time to be far more sustainable and successful.

We are also pleased to see government Amendment 80, which requires a report to be laid before Parliament on the impact that the infrastructure levy is having on the provision of affordable housing. It perhaps does not go as far as our Amendment 81, which would have made provision for a new levy to be introduced where IL was shown not to be successful, but we recognise that the Minister has listened to our concerns and we hope that placing a report before Parliament on the success, or otherwise, of IL will encourage further thinking if it is shown not to be delivering.

We have some concerns, which we have shared with the Minister, in relation to Amendment 76 on the thorny issue of viability. Our concern is that this clause, which allows the infrastructure levy to be disapplied where the charging authority considers the application of the levy, including its provision for affordable housing, would make the development unviable. The process of negotiation on infrastructure contributions between local planning authorities and developers can be very long and complex, especially when major developments are involved. We would not want to see any further pressure being put on local authorities in that negotiation process by having this clause dangled in front of them as an incentive for developers to proceed. It has been hard enough in the existing system to resist the weight of financial and legal expertise that the developers have put into these discussions, as mentioned by the noble Lords, Lord Best and Lord Young. We do not want to give them another weapon in their armoury—we do not think that is necessary.

I am grateful to the noble Lord, Lord Young, for setting out the potentially devastating impact the viability get-out clause can have on affordable housing. The noble Earl, Lord Lytton, referred to the inclusion of contingencies in that viability calculation. When you start to pick apart that contingency—I have done it—it is very interesting to see what sits underneath it, which is often some very wild assumptions in my experience. I am sure that that is not always the case, but it can be.

The noble Lord, Lord Lansley, is right to flag up in his Amendment 77 the question of the relationship between Section 106 contributions, which have been most effective in securing affordable housing through planning contributions, and the infrastructure levy. Lastly, we welcome the amendments in the name of the noble Lord, Lord Lansley, which would require a response to the technical consultation on the infrastructure levy before it comes into force.

In summary, we feel that an opportunity has been missed by introducing IL to be grafted on to an already complex system instead of using this Bill for a new, simplified and comprehensive approach to the provision of infrastructure developed with and for the sector, and with an implementation plan to smooth the transition so that it would not disrupt local authorities from the urgent work of solving the housing crisis. However, I once again thank the Minister for the amount of her time she has given to meet noble Lords on this subject and for the amendments that have subsequently come forward. It is the best of this House that the expertise we have here is used to improve legislation, and I am sure today’s debates are a good example of that.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendments 68 and 90, tabled by the noble Baroness, Lady Pinnock, seek to remove the provisions in the Bill which provide the imposition of the new infrastructure levy in England. I regret that these amendments have been proposed, but I recognise the need for serious and open debate on this subject.

We covered the shortcomings of the existing system of developer contributions at length in Committee. There is a clear case for reform. Since 2010, average new-build house prices have risen by more than £250,000, and land prices have also risen substantially. This increase in value must be captured within the levy system, allowing for more local benefit, but we recognise the need to get these significant reforms right. That is why I can commit to the House today that the Government will undertake a further consultation on fundamental design choices before developing infrastructure levy regulations. Through further consultation and engagement, and the test-and-learn approach, which we discussed in detail in Committee, we will seek to ensure that the levy achieves its aims and that it is implemented carefully. I hope the noble Baroness, Lady Pinnock, will feel able to withdraw Amendment 68 and will not press Amendment 90.

My noble friend Lord Lansley has tabled Amendments 311 and 312, which seek to prevent the introduction of the infrastructure levy until the Government have published proposals for its implementation. I know that my noble friend has formally responded to the recently concluded technical consultation, which we are carefully reviewing. I can confirm that we will not commence the levy provisions in Part 4 until we have responded to that further round of consultation. The regulations themselves will be consulted on in future as well. I hope my noble friend Lord Lansley is therefore content not to press his Amendments 311 and 312. I assure him that he is correct: there is scope in the Bill for us to vary the approach set out in the technical consultation, and I reiterate that, if we do that, we will be consulting further.

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[Lord Lansley (Con)]

I apologise for interrupting my noble friend but, among the powers that have been taken, is she anticipating that the design choices yet to be made will include whether local authorities may set their charging schedule by reference to gross development value or, in certain circumstances, may choose to use floorspace charging, as they do under CIL at present?

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right: these will come out as we go through the consultation and further design stages.

Government Amendment 93 is consequential on legislation which is already on the statute book; namely, the Judicial Review and Courts Act 2022. It brings the enforcement provisions relating to the community infrastructure levy in line with the enforcement provisions relating to the new levy, which in turn reflect the provisions in the 2022 Act, creating a consistent, coherent cross-government policy on sentencing law.

We believe that we have a strong case for proceeding with the new infrastructure levy and have built in safeguards to ensure that development can progress with vital mitigations in place. We recognise that introducing the infrastructure levy is a significant change to the existing system. That is why we propose to introduce the levy via a test and learn approach. If the levy is found to have negative impacts in the context of one particular local authority, the Secretary of State will have the flexibility to disapply the levy in that authority for a specified time period.

In any system of developer contributions there are trade-offs between seeking simplicity and at the same time enabling individual site circumstances to be catered for. These are tricky balances to strike, and if our initial policy design leans too far in one direction or another, it may impact on the pace at which development can come forward. It is likely that revisions will be required of the initial levy regulations, as occurred with the community infrastructure levy, as the system beds in. While we do not expect these to be substantial, it will give local authorities confidence that the system will be flexible and able to be adjusted to experience on the ground. We do not expect the power to disapply the levy to be used often—if at all. However, it is a sensible, inbuilt precautionary power to cater for all circumstances.

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Moved by

[Baroness Scott of Bybrook]

72: Schedule 12, page 410, line 32, leave out “have regard”
Member's explanatory statement
This amendment, taken together with the amendments to Schedule 12 in the Minister’s name at lines 34 and 38 on page 410, change the duty in subsection (2) of new section 204G of the Planning Act 2008 from one of having regard to the desirability of ensuring that the level of affordable housing funding provided by developers is maintained to one of having to seek to ensure that level can be maintained.

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Moved by

[Baroness Scott of Bybrook]

78: Schedule 12, page 417, line 20, leave out “and 204Q” and insert “, 204Q and 204YA”
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to Schedule 12 at line 9 of page 431.

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Moved by

[Baroness Scott of Bybrook]

80: Schedule 12, page 431, line 9, at end insert—
“204YA Parliamentary scrutiny: affordable housing(1) The Secretary of State must prepare a report which—(a) provides information, in relation to each charging authority which charges IL in respect of development in its area, about the amount of affordable housing provision that has been funded by IL charged by that authority, (b) assesses whether the charging of IL has resulted in more or less affordable housing being available in areas in respect of which IL is charged than would otherwise be the case, and(c) sets out such other information as the Secretary of State considers appropriate in connection with the effect of IL on the provision, improvement, replacement, operation or maintenance of affordable housing or other infrastructure.(2) The Secretary of State must lay the report before each House of Parliament before the end of the period of 5 years beginning with the date on which the first charging schedule takes effect under this Part.(3) The Secretary of State must publish the report as soon as is reasonably practicable after it has been laid before each House of Parliament.”Member's explanatory statement
This amendment places a duty on the Secretary of State to prepare a report relating to the effect of infrastructure levy on the funding and provision of affordable housing (and certain other matters), lay that report before Parliament and publish it.

[Baroness Scott of Bybrook (Con)]

I beg to move.

Amendment 81 (to Amendment 80) not moved.

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Moved by

[Baroness Scott of Bybrook]

82: Schedule 12, page 431, line 15, at end insert—
“(ba) may disapply any provision made by or under this Part in relation to an area, or a charging authority, specified or described in the regulations,”Member's explanatory statement
This amendment enables new Part 10A of the Planning Act 2008, and any regulations made under it, to be disapplied in relation to an area or charging authority, so that infrastructure levy does not have to be charged in that area or (as the case may be) by that authority.

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Moved by

[Baroness Scott of Bybrook]

92: After Schedule 12, insert the following new Schedule—
“ScheduleExisting environmental assessment legislationPart 1United Kingdom and England and WalesUnited Kingdom and England and Wales
• Schedule 3 to the Harbours Act 1964 (procedure for making harbour revision and empowerment orders) so far as relating to environmental impact assessments;• Part 5A of the Highways Act 1980 (environmental impact assessments);• Sections 13A to 13D of the Transport and Works Act 1992 (environmental impact assessments);• The Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (S.I. 1999/360);• The Public Gas Transporter Pipe-line Works (Environmental Impact Assessment) Regulations 1999 (S.I. 1999/1672);• The Environmental Impact Assessment (Land Drainage Improvement Works) Regulations 1999 (S.I. 1999/1783);• The Environmental Impact Assessment (Forestry) (England and Wales) Regulations 1999 (S.I. 1999/2228);• The Nuclear Reactors (Environmental Impact Assessment for Decommissioning) Regulations 1999 (S.I. 1999/2892);• The Pipe-line Works (Environmental Impact Assessment) Regulations 2000 (S.I. 2000/1928);• The Water Resources (Environmental Impact Assessment) (England and Wales) Regulations 2003 (S.I. 2003/164);• The Environmental Assessment of Plans and Programmes Regulations 2004 (S.I. 2004/1633);• The Transport and Works (Applications and Objections Procedure)(England and Wales) Rules 2006 (S.I. 2006/1466) so far as dealing with environmental matters; • The Environmental Impact Assessment (Agriculture) (England) (No. 2) Regulations 2006 (S.I. 2006/2522);• The Marine Works (Environmental Impact Assessment) Regulations 2007 (S.I. 2007/1518);• The Town and Country Planning (Environmental Impact Assessment) Regulations 2017 (S.I. 2017/571);• The Infrastructure Planning (Environmental Impact Assessment) Regulations 2017 (S.I. 2017/572);• The Electricity Works (Environmental Impact Assessment) (England and Wales) Regulations 2017 (S.I. 2017/580);• The Offshore Oil and Gas Exploration, Production, Unloading and Storage (Environmental Impact Assessment) Regulations 2020 (S.I. 2020/1497).Part 2ScotlandScotland
• Sections 20A to 22B and 55A to 55D of the Roads (Scotland) Act 1984 (environmental assessment of certain road construction and improvement projects);• The Public Gas Transporter Pipeline Works (Environmental Impact Assessment) (Scotland) Regulations 1999 (S.S.I. 1999/1672);• The Transport and Works (Scotland) Act 2007;• The Transport and Works (Scotland) Act 2007 (Applications and Objections Procedure) Rules 2007;• The Electricity Works (Environmental Impact Assessment) (Scotland) Regulations 2017 (S.S.I. 2017/101);• The Town and Country Planning (Environmental Impact Assessment) (Scotland) Regulations 2017 (S.S.I. 2017/102);• The Forestry (Environmental Impact Assessment) (Scotland) Regulations 2017 (S.S.I. 2017/113);• The Agriculture, Land Drainage and Irrigation Projects (Environmental Impact Assessment) (Scotland) Regulations 2017 (S.S.I. 2017/114);• The Marine Works (Environmental Impact Assessment) (Scotland) Regulations 2017 (S.S.I. 2017/115).Part 3WalesWales
• The Environmental Assessment of Plans and Programmes (Wales) Regulations 2004 (S.I. 2004/1656);• The Town and Country Planning (Environmental Impact Assessment) (Undetermined Reviews of Old Mineral Permissions) (Wales) Regulations 2009 (S.I. 2009/3342);• The Town and Country Planning (Environmental Impact Assessment) (Wales) Regulations 2016 (S.I. 2016/58);• The Environmental Impact Assessment (Agriculture) (Wales) Regulations 2017 (S.I. 2017/565);• The Town and Country Planning (Environmental Impact Assessment) (Wales) Regulations 2017 (S.I. 2017/567).Part 4Northern IrelandNorthern Ireland
• Part V of the Roads (Northern Ireland) Order 1993 (S.I. 1993/3160 (N.I. 15));• The Planning (Environmental Impact Assessment) Regulations (Northern Ireland) 1999 (S.R. (N.I.) 1999/73);• The Environmental Assessment of Plans and Programmes Regulations (Northern Ireland) 2004 (S.R. (N.I.) 2004/280); • The Water Resources (Environmental Impact Assessment) Regulations (Northern Ireland) 2005 (S.R. (N.I.) 2005/32);• The Environmental Impact Assessment (Forestry) Regulations (Northern Ireland) 2006 (S.R. (N.I.) 2006/518);• The Environmental Impact Assessment (Agriculture) Regulations (Northern Ireland) 2007 (S.R. (N.I.) 2007/421);• The Planning Act (Northern Ireland) 2011 (c. 25 (N.I.)).”Member's explanatory statement
This amendment inserts a new Schedule (Existing environmental assessment legislation) which lists existing environmental assessment legislation.

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Moved by

[Baroness Scott of Bybrook]

93: After Clause 131, insert the following new Clause—
“Enforcement of Community Infrastructure Levy(1) In section 218 of the Planning Act 2008 (enforcement), for subsections (11) and (12) substitute—“(11) Regulations under this section creating a criminal offence may not provide for—(a) imprisonment for a term exceeding the maximum term for summary offences, on summary conviction for an offence triable summarily only,(b) imprisonment for a term exceeding the general limit in a magistrates’ court, on summary conviction for an offence triable either way, or(c) imprisonment for a term exceeding 2 years, on conviction on indictment.(12) In subsection (11)(a), “the maximum term for summary offences” means—(a) in relation to an offence committed before the time when section 281(5) of the Criminal Justice Act 2003 comes into force, 6 months;(b) in relation to an offence committed after that time, 51 weeks.””Member's explanatory statement
This amendment amends section 218 of the Planning Act 2008 to bring the enforcement provisions relating to the community infrastructure levy in line with the new enforcement provisions relating to the infrastructure levy (see new section 204S of the Planning Act 2008 inserted by Schedule 12 to the Bill). These provisions reflect changes to sentencing law.

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Moved by

[Baroness Scott of Bybrook]

97: Clause 133, page 162, line 18, leave out “the Secretary of State directs” and insert “CLA regulations provide”
Member's explanatory statement
This amendment removes the power of the Secretary of State to direct that a local planning authority may put in place a community land auction arrangement and replaces it with a power to make CLA regulations providing that.

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Moved by

[Baroness Scott of Bybrook]

99: Clause 143, page 171, line 36, leave out “the Secretary of State” and insert “an appropriate authority”
Member's explanatory statement
This amendment provides that the power to make regulations specifying environmental protection outcomes may be exercised by “an appropriate authority”.

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[Baroness Pinnock (LD)]

My Lords, this is an important set of amendments from the noble Baroness, Lady Hayman of Ullock. They seek assurances from the Government that the replacement for the existing environmental tests for development—environmental outcomes reports—will be as robust as the ones they will replace.

The noble Baroness, Lady Hayman of Ullock, made a powerful case for a non-regression clause with her Amendment 106. Recently, there has been a lot of debate about this and pressure from those who want to point the finger of responsibility at the planning system for failing to produce the right number and quality of homes that are desperately needed in this country. When they do so, they point out the additional responsibilities of developers to adhere to environmental responsibilities and regulations, which are causing the difficulties they express. Of course, it is never as easy as that.

It seems to me that, after many years, as the noble Baroness, Lady Young, said, we have a much better balance now between development and protection of the environment in which developments are set. There are responsibilities that developers have to take up in order to make sure that they construct and do not destroy; to make sure that they create communities that sit well in their environment; and to make sure that nature and the environment are looked after for existing and future generations. So the noble Baroness, Lady Hayman, has made important points here; I hope that the Minister will be able to respond positively to them, because they are important. I guess that they will be raised again later on in our debates on Report.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 100 and 101 in the name of the noble Baroness, Lady Hayman of Ullock, would require that all regulations made under Part 6 specify environmental outcomes, whether or not they actually relate to the outcomes themselves. This would place a significant burden on subsequent regulations and would require outcomes across every process element, even where not relevant—for example, on regulations related to enforcement, exemptions and guidance.

We recognise that framing will be critical and recently carried out a consultation on how we can translate the Government’s ambitions into deliverable outcomes, which is surely the key consideration here. The Government have also legislated to ensure additional consultations on future outcomes, as well as adopting the affirmative procedure in Parliament on the associated regulations.

Regarding Amendment 101, the Government have been careful to ensure that the new system is capable of capturing all the current elements of the environmental assessment process. This allows the Secretary of State to consider health matters such as air pollution when setting outcomes. Impacts on human health are covered by “protection of people” in Clause 143(2)(b). When developing secondary legislation, we will consult with stakeholders to ensure that health-related commitments are sufficiently captured.

On Amendment 106, the drafting of Clause 147 mirrors the EU-UK Trade and Cooperation Agreement to ensure that, when bringing forward reforms, we live up to our commitment to non-regression. As well as departing from the existing drafting, Amendment 106 would create a rigid approach to non-regression. Removing “overall” from levels of environmental protection would remove the ability to look at the effect of reforms as a whole. When read alongside the commitment to international obligations and expansive duties to consult, we feel that the non-regression clause strikes the right balance to ensure EORs can be an effective tool in managing the environment.

Let me respond to all the noble Baronesses who have spoken by making it clear that, in creating a new system of environmental assessment, it is essential that the standards are kept high. The Government are committed to improving what exists and ensuring that we can deliver on the challenges we face in the 21st century. Focusing on environmental outcomes will allow the Government to set ambitions for plans and developments that build on the Environment Act and other environmental commitments. The legislation is clear that the Government cannot use these powers to reduce the level of environmental protection, and it includes a clause setting out this commitment to non-regression.

On Amendment 107, I have no reservation in saying that the UN sustainable development goals are crucial ambitions. The UK is committed to achieving them by 2030, as affirmed in the international development strategy and integrated review. The expansive nature of these goals is such that it is not possible for the planning and consenting frameworks within which EORs operate to support them all. To require the EOR regime to do so would significantly expand the scope of the assessment beyond the existing legal frameworks of the environmental impact assessments and strategic environmental assessments.

This amendment would exacerbate the biggest issue with the current process, which is a mandatory list of topics that are required to be considered for all assessments, whether relevant or not. Listing matters to be considered in this way has resulted in overly long, complex and inaccessible documents, full of unnecessary material in case an omission invites legal challenge. It would thwart our efforts to make the process more effective, meaningful and manageable.

Environmental assessment was established as a tool to ensure that the environmental impacts of a development were not overlooked in favour of the social and economic priorities that drive development activity. A requirement to support the delivery of all goals would divert attention away from the EOR’s core purpose of providing an additional level of scrutiny of the effects of the development activity on the environment.

I hope this provides the reassurances necessary for the noble Baroness, Lady Hayman of Ullock, to withdraw her Amendment 100 and for the other amendments not to be moved when they are reached.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the Minister for her response. I have to say that I still have concerns about non-regression. If it works for the Environment Act, I do not understand why it would not work here. Having said that, I beg leave to withdraw my amendment.

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Moved by

[Baroness Scott of Bybrook]

103: Clause 143, page 172, line 19, leave out “the Secretary of State” and insert “an appropriate authority”
Member’s explanatory statement
This amendment is consequential to the amendment to Clause 143 at line 36 on page 171 in the Minister’s name.

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Moved by

[Baroness Scott of Bybrook]

105: Clause 147, page 176, line 3, leave out “The Secretary of State” and insert “An appropriate authority”
Member’s explanatory statement
This amendment provides that the requirement to assess the impact of EOR regulations on the overall level of environmental protection before making regulations applies to “an appropriate authority”.

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Moved by

[Baroness Scott of Bybrook]

108: Clause 147, page 176, line 11, leave out “the Secretary of State” and insert “an appropriate authority”
Member’s explanatory statement
This amendment provides that the requirement for arrangements to exist under which the public will be informed of any proposed relevant consent or plan are sufficient to enable adequate public engagement applies to “an appropriate authority”.

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Moved by

[Baroness Scott of Bybrook]

112: Clause 148, page 176, line 25, at end insert “, unless that provision is merely incidental to, or consequential on, provision that would be outside that devolved competence”
Member’s explanatory statement
This amendment provides that the Secretary of State may make EOR regulations which contain provision within Scottish devolved competence without consulting the Scottish Ministers where the provision is merely incidental to, or consequential upon, provision that is outside that devolved competence.

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Moved by

[Baroness Scott of Bybrook]

114: Clause 148, page 176, line 38, leave out “competence after consulting the Welsh Ministers” and insert “legislative competence with the consent of the Welsh Ministers, unless that provision is merely incidental to, or consequential on, provision that would be outside that devolved legislative competence”
Member's explanatory statement
This amendment requires the Secretary of State to obtain the consent of the Welsh Ministers before making EOR regulations which contain provision within Welsh devolved legislative competence.

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Moved by

[Baroness Scott of Bybrook]

116: Clause 148, page 176, line 38, at end insert—
“(3A) The Secretary of State may only make EOR regulations which contain provision that could be made by the Welsh Ministers or that confers a function on, or modifies or removes a function of, the Welsh Ministers or a devolved Welsh authority after consulting the Welsh Ministers, unless—(a) that provision is contained in regulations which require the consent of the Welsh Ministers by virtue of subsection (3), or(b) that provision is merely incidental to, or consequential on, provision that would be outside Welsh devolved legislative competence.(3B) “Devolved Welsh authority” has the same meaning as in the Government of Wales Act 2006 (see section 157A of that Act).”Member's explanatory statement
This amendment requires the Secretary of State to consult the Welsh Ministers before making EOR regulations which contain provision that could be made by the Welsh Ministers or that confers a function on, or modifies or removes a function of, the Welsh Ministers or a devolved Welsh authority except in certain circumstances.

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Moved by

[Baroness Scott of Bybrook]

119: Clause 148, page 177, line 17, leave out “competence after consulting a Northern Ireland department” and insert “legislative competence with the consent of the relevant Northern Ireland department, unless that provision is merely incidental to, or consequential on, provision that would be outside that devolved legislative competence”
Member's explanatory statement
This amendment requires the Secretary of State to obtain the consent of a Northern Ireland department before making EOR regulations which contain provision within Northern Ireland devolved legislative competence.

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Moved by

[Baroness Scott of Bybrook]

122: Clause 148, page 177, line 18, at end insert—
“(5A) The Secretary of State may only make EOR regulations which contain provision that could be made by a Northern Ireland department or that confers a function on, or modifies or removes a function of, a Northern Ireland department after consulting the relevant Northern Ireland department, unless—(a) that provision is contained in regulations which require the consent of the relevant Northern Ireland department by virtue of subsection (5), or(b) that provision is merely incidental to, or consequential on, provision that would be outside Northern Ireland devolved legislative competence.(5B) The “relevant Northern Ireland department” is such Northern Ireland department as the Secretary of State considers appropriate having regard to the provision which is to be contained in the regulations concerned.”Member's explanatory statement
This amendment requires the Secretary of State to consult a Northern Ireland department before making EOR regulations which contain provision that could be made by a Northern Ireland department or that confers a function on, or modifies or removes a function of, a Northern Ireland department except in certain circumstances, and provides a definition of the relevant Northern Ireland department.

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Moved by

[Baroness Scott of Bybrook]

125: After Clause 148, insert the following new Clause—
“EOR regulations: devolved authoritiesSchedule (Regulations under Chapter 1 of Part 3 or Part 6: restrictions on devolved authorities) contains restrictions on the exercise of the powers under this Part by devolved authorities.” Member's explanatory statement
This amendment inserts a new Clause which introduces the Schedule to be inserted after Schedule 12 in the Minister’s name which contains restrictions on the exercise of the powers under this Part by devolved authorities.

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Moved by

[Baroness Scott of Bybrook]

126: Clause 152, page 179, line 13, leave out “The Secretary of State” and insert “An appropriate authority”
Member's explanatory statement
This amendment provides that the requirement to consult the public before making certain EOR regulations applies to “an appropriate authority”.

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Moved by

[Baroness Scott of Bybrook]

129: Clause 153, page 180, line 2, leave out “or existing environmental assessment legislation” and insert “other than under regulations made by a devolved authority acting alone”
Member's explanatory statement
This amendment is consequential on the amendment made to Clause 153 at line 4 on page 180 in the Minister’s name.

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Moved by

[Baroness Scott of Bybrook]

132: Clause 154, page 180, line 17, after “under” insert “relevant”
Member's explanatory statement
This amendment limits the power under subsection (2)(a) of Clause 154 to “relevant existing environmental assessment legislation”.

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Moved by

[Baroness Scott of Bybrook]

140: Clause 157, page 182, line 7, after “means” insert “the legislation listed in Schedule (Existing environmental assessment legislation)”


Member’s explanatory statement


This amendment introduces the Schedule inserted after Schedule 12 in the Minister’s name which lists the existing environmental assessment legislation for the purposes of the definition.


141: Clause 157, page 182, line 8, leave out from beginning to the end of line 3 on page 183


Member's explanatory statement


This amendment leaves out the list of existing environmental assessment legislation because the detail of that definition is being moved into the Schedule inserted after Schedule 12 in the Minister’s name.


142: Clause 157, page 183, line 3, at end insert—


“(1A) “Relevant existing environmental assessment legislation” means—

(a) in relation to EOR regulations made by the Secretary of State acting alone or jointly with one or more devolved authorities, the legislation listed in Schedule (Existing environmental assessment legislation);

(b) in relation to EOR regulations made by the Scottish Ministers acting alone, the legislation listed in Part 2 of that Schedule;

(c) in relation to EOR regulations made by the Welsh Ministers acting alone, the legislation listed in Part 3 of that Schedule;

(d) in relation to EOR regulations made by a Northern Ireland department acting alone, the legislation listed in Part 4 of that Schedule.”

Member's explanatory statement


This amendment inserts a new definition of “relevant existing environmental assessment legislation”.


143: Clause 157, page 183, line 4, at end insert—


““appropriate authority” means—

(a) the Secretary of State,

(b) a devolved authority, or

(c) the Secretary of State acting jointly with one or more devolved authorities;”

Member's explanatory statement


This amendment provides the definition for Part 6 of “an appropriate authority” as the Secretary of State, a devolved authority or the Secretary of State acting jointly with one or more devolved authorities.


144: Clause 157, page 183, line 7, at end insert—


““devolved authority” means—

(a) the Scottish Ministers,

(b) the Welsh Ministers, or

(c) a Northern Ireland department;””

Member's explanatory statement


This amendment provides the definition of a “devolved authority” for Part 6.


145: Clause 157, page 183, line 27, at end insert—


““relevant existing environmental assessment legislation” has the meaning given by subsection (1A);”

Member’s explanatory statement


This amendment is consequential on the amendment inserting a new definition of “relevant existing environmental assessment legislation” into Clause 157 in the Minister’s name.

Amendments 140 to 145 agreed.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Thursday 20th July 2023 Lords Chamber

Moved by

[Baroness Scott of Bybrook]

146: Clause 161, page 195, line 25, after “may” insert “, by order made by statutory instrument,”
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name at page 195, line 35.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, we have reflected on the debate in Committee and the report from the Delegated Powers and Regulatory Reform Committee, and I reiterate my thanks to the committee for its work in relation to this Bill. We want to ensure that the designation of locally led development corporations by local authorities is appropriately scrutinised, and therefore these amendments, in line with the DPRRC’s recommendation, apply the affirmative procedure to the orders establishing locally led urban and new town development corporations. I beg to move.

[Lord Stunell (LD)]

My Lords, I welcome the government amendments which, as the Minister has said, bring decisions made by the Secretary of State on urban development areas back to Parliament in the form of affirmative resolutions rather than negative resolutions. In my view, which I have expressed frequently, far too much in this enormous Bill is set out in the form of decisions left entirely to the Secretary of State to fill in by way of statutory instruments. Far too often, the only restraint is the wholly inadequate procedure of negative resolutions. I am pleased that the Minister has recognised the overreach in the original drafting and has brought forward amendments to correct that.

In Committee, I expressed general support for the proposition of locally led development corporations, and that was helped on by the Minister’s reassuring words to the effect that the wide discretion given to the Secretary of State in Clause 162 to designate a development corporation is, in practice, entirely conditional on there first being a positive initiative from that locality. That is all the more important in view of the strange reluctance to include town and parish councils in the formal consultation process.

In responding to this debate, I would be very grateful if the Minister could make assurance doubly sure on that point of local initiation and leadership of the new generation of development corporations. I look forward to hearing her reassurance on that point.

[Baroness Taylor of Stevenage (Lab)]

My Lords, those who have heard me speak in this Chamber will know that I am a great fan of development corporations, having grown up in a town that, apart from our historic old town, was created and, for the most part, built by Stevenage Development Corporation. At that time, the innovation of development corporations took a great deal of debate in Parliament to initiate, and we have hopefully moved on a bit towards devolution since the middle of the last century.

If there is to be parliamentary scrutiny of the establishment of development corporations, it is absolutely right that it should be done by the affirmative procedure, so we welcome the movement on that in Amendments 146 and 147, to ensure that the establishment of locally led urban and new town development corporations is drawn to the attention of both Houses, in the same way as those that are not locally led.

We hope that it will be the intention of government to scrutinise only the technical aspects of governance, for example, as it would be entirely against the principles of devolution that the Bill sets out to promote for any Government to effectively have a veto on whether proposals for a development corporation go ahead. During the passage of the Bill, we have talked about a new relationship of mutual trust between local and central government, and we hope that such parliamentary scrutiny will not be used to undermine that.

I absolutely agree with the noble Lord, Lord Lansley, about the importance of determining the nature of parliamentary involvement in different types of development corporation. Of course, we would have concern about Parliament intending to have a veto on the locally led ones. The other amendments in this group are consequential on the Minister’s previous amendment on page 195. We look forward to her comments about the points raised.

[Baroness Scott of Bybrook (Con)]

My Lords, I assure the noble Lord, Lord Stunell, that, yes, locally led development corporations will come from local authorities—they will put them forward.

My noble friend Lord Lansley brought up the different forms of development corporations. Rather than standing here and taking time, I would prefer to write to him and copy everybody in. I suggest that we might have a small group meeting about this when we come back in September so that any questions can be asked. I thank the noble Baroness, Lady Taylor of Stevenage, for her support for these amendments.

Amendment 146 agreed.

Moved by

[Baroness Scott of Bybrook]

147: Clause 161, page 195, line 35, leave out subsection (3)
Member’s explanatory statement
This amendment is the first of a number that remove provision applying negative procedure to orders establishing locally-led urban and new town development corporations, and instead bring those orders within the existing procedures for such corporations that are not locally-led. The result is that affirmative procedure will apply (without hybrid procedure).

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Moved by

[Baroness Scott of Bybrook]

150: Clause 162, page 202, line 1, leave out paragraphs (a) to (d) and insert “in each of subsections (3), (3B) and (3C), after “1,” insert “1ZB,”.”
Member’s explanatory statement
See the explanatory statement for the amendment in the Minister’s name at page 195, line 35.

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Moved by

[Baroness Scott of Bybrook]

151: Schedule 14, page 442, line 17, at end insert—
“(5A) In subsection (4), after “(1)” insert “or (1B)”.(5B) In subsection (4A), after “(1)” insert “or (1B)”.”Member’s explanatory statement
See the explanatory statement for the amendment in the Minister’s name at page 195, line 35.

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Moved by

[Baroness Scott of Bybrook]

152: Schedule 16, page 451, line 15, leave out sub-paragraphs (2) and (3)
Member’s explanatory statement
This amendment removes a power that is no longer needed in the light of the conclusion of proceedings in Senedd Cymru on the Historic Environment (Wales) Bill.

[Baroness Scott of Bybrook (Con)]

My Lords, government Amendment 152 relates to a consequential amendment on compulsory purchase. In light of the successful passage of the Historic Environment (Wales) Act through the Senedd Cymru, there is no longer a requirement to include a regulation-making power and associated provision under paragraphs 7(2) and (3) of Schedule 16. As such, these provisions are not required and should not form part of the Bill.

Government Amendment 153 seeks to add Part 7 of the Housing and Planning Act 2016 and Section 9 of the Tribunals and Inquiries Act 1992 to the definition of “Relevant compulsory purchase legislation” under Clause 177(6). The amendment is required because both Acts, or regulations relating to compulsory purchase made under them, make provision requiring the preparation of compulsory purchase documentation to which approved data standards published under Clause 177(3) should be applicable. I hope that the House will support government Amendments 152 and 153.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, this group brings up to date the provisions in the Bill so that they are appropriately applied to Wales. It also updates the list of types of compulsory purchase that can be made, subject to common data standards—we accept that this is important. We have had much discussion about the issues of hope value during the passage of the Bill, and it is therefore absolutely right that the Minister responded to Senedd Cymru’s request to make that apply in Wales as well.

I associate this side of the House with the comments by the noble Baroness, Lady Pinnock. It would be helpful if these types of provisions could be consulted on with the Welsh, Scottish and Northern Irish Administrations before they come before this House. But I am grateful to the Minister for listening to the Welsh Senedd’s request, and we are pleased to see these amendments coming forward today.

[Baroness Scott of Bybrook (Con)]

I thank the noble Baronesses for their input. I say to the noble Baroness, Lady Pinnock, that we understand the devolved authorities’ rights and responsibilities, but, as always, there is negotiation on any legislation that we put through which may affect them. The Government and the Welsh Government did not reach a settled position on the CPO powers until after the Lords Committee stage had concluded. As these things are complex, our devolved authorities also need time to discuss and make decisions. I can assure the noble Baroness that we are working closely with them all the time.

Amendment 152 agreed.

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Moved by

[Baroness Scott of Bybrook]

153: Clause 177, page 219, line 22, leave out “or” and insert—
“(fa) section 9 of the Tribunals and Inquiries Act 1992,(fb) Part 7 of the Housing and Planning Act 2016, or”Member's explanatory statement
This amendment adds further legislation to the list governing the types of compulsory purchase documentation which can be made subject to common data standards.

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Moved by

[Baroness Scott of Bybrook]

154: Clause 180, page 225, line 19, leave out from “is” to end of line 27 and insert “constructed or adapted for use as a separate dwelling and—
(a) in the case of a building in England, is to be used as—(i) social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008, or(ii) housing of any other description that is prescribed, or(b) in the case of a building in Wales, is to be used as housing of a description that is prescribed.”;”Member's explanatory statement
This amendment and the amendments in the Minister’s name at page 234, line 23 and page 235, line 43 adjust the definition of affordable housing used in Clause 180 so that an existing definition relevant only to England is not made to apply in Wales.

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Moved by

[Baroness Scott of Bybrook]

161: Clause 183, page 238, line 15, leave out paragraph (a)
Member's explanatory statement
This amendment removes the provision requiring premises to be considered as vacant for the purposes of Part 10 when occupied by a trespasser (other than in cases caught by paragraph (b) of the same subsection, i.e. squatting in commercial premises).

[Baroness Scott of Bybrook (Con)]

My Lords, I shall speak also to Amendment 161A. Together, the amendments bring us back to an issue raised in Committee relating to premises that are counted as vacant. I thank the noble and learned Lord, Lord Etherton, and others for bringing this issue to our attention and for meeting me and my noble friend Lord Howe to discuss it. We have proposed amended wording to clarify what is meant by the clause in question.

Amendment 161 will clarify that occupation by true “squatters”—for example, persons who have broken into commercial high street premises and are using them as their residence—will not count as occupation for the purpose of assessing the vacancy condition for a high street rental auction, but occupation by other types of trespassers, such as commercial tenants who have remained in occupation following the expiry of their lease, may do so. This will be achieved by removing the reference to trespassers in Clause 183(4), while retaining reference to people living at premises not designed or adapted for residential use.

Amendment 161A adds words to the clause to clarify that “count” in this context means counting as occupation. I beg to move.

Amendment 161 agreed.

Moved by

[Baroness Scott of Bybrook]

161A: Clause 183, page 238, line 18, after “count” insert “as occupation”
Member's explanatory statement
This amendment makes a drafting clarification.

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[Baroness Pinnock (LD)]

My Lords, Amendment 282D in my name would require the Chancellor of the Exchequer to undertake a review of the business rates system. The Government know that the current system is flawed and fails to reflect modern business practices. There have been several Bills in the last few years that have tweaked the non-domestic rating system—as the Minister knows, we have one currently before the House—but these are just tweaks to a complex set of business taxation that is in desperate need of fundamental reform.

The system is basically flawed, as illustrated by the fact that the Treasury pays out billions of pounds in support of small businesses every year, via the small business rates relief. This demonstrates that there has to be a more effective way to levy businesses to support the local services on which they depend.

It is not only me saying that business rates need fundamental reform. Many business commentators have urged for a fundamental review. The Centre for Cities published a report in 2020 which proposed 11 changes to the business rates system. The IFS has published a report pointing to spatial inequalities that are “profound and persistent”.

A fundamental review is long overdue, and the amendment in my name simply asks that a review considers the effects of business rates on high streets and rural areas, and compares that information with an alternative business taxation system—for instance, land value taxation, which was referred to in the IFS report. The spatial inequalities explored in the report are at the heart of the levelling-up agenda. Any detailed review of business rates should gather relevant data on the impact of business rates on different parts of the country.

The Government have recognised what they have called “bricks vs clicks”, and in the Financial Statement earlier this year raised rates for warehousing. However, that steers clear of the major issue facing our high streets, which is the competitive advantage that online retailers have over high street retailers when it comes to the rates applied for business rates.

I have mentioned several times in this Chamber the glaring difference between warehousing for a very large online retailer, which may be at the rate of £45 per square metre, compared with the rate for a small shop in a small town of £250 per square metre. The change to raise the rates for warehousing does nothing to address that vast gap. For instance, it was reported that the change introduced this year by the Government cost Amazon £29 million. That might sound a considerable sum to some people, but it is pennies in the pot for a big online retailer such as Amazon. It really needs to start paying its fair share towards local services. Its little vans whizz round our streets, and Amazon needs to pay for the upkeep of them. The rate of its contribution is small in comparison to the services it uses. That is the argument for a huge, fundamental review of the system as is stands.

We also have to take into account the impact of any changes on local government. A large portion of a council’s income now derives from business rates, and any changes to the system by the Government to reduce the burden on businesses—which they did in the Statement by freezing the multiplier—results in compensation to local government for those changes. This again demonstrates that the system is not fit for purpose.

We currently have a system that says that these are the rates, but oh dear, they are too big for charities, small businesses and so on, and then provides relief which costs the Treasury billions of pounds a year. When any further changes are made, that has an impact on desperately needed income for local councils. Therefore, there will have to be compensation in that regard also. This demonstrates that the business rates system, as currently set up, is really not doing the job it needs to do. I repeat that a fundamental review is essential.

It is important to add that the way in which business rates income is demonstrated, via the tariffs and top-ups arrangements, creates further unfairness This becomes more noticeable as councils struggle to balance their budgets.

A business rates system that encourages business development and growth must be at the heart of any strategy to bring more prosperity and jobs to those areas defined in the White Paper as being the focus for levelling up. I do not need to spell out what that might mean, but it could perhaps be reduced rates for some areas, to encourage development and the movement of businesses to those areas.

The noble Baroness, Lady Taylor of Stevenage, raised similar issues in moving her amendment to support the pub industry, which we support. My noble friend Lord Scriven has signed the amendment in the name of the noble Lord, Lord Holmes of Richmond, who I do not think is in his place, regarding the establishment of regional mutual banks. We support this approach as another way of empowering regional businesses and entrepreneurs to take financial decisions which meet local ambitions, rather than the more risk-averse national banks. The noble Baroness, Lady Taylor of Stevenage, used the comparator of Germany. She is right that the mutual banks in Germany have done much to support their regionally-based industries, which does not happen in this country because of the way our banking system is set up.

I really hope the Minister will be able to say in her reply that the Government accept that the business rates system as currently devised is not fit for purpose and that they are looking to have fundamental review to reform it to the benefit of those places—because this is the levelling-up Bill, and I shall keep saying it: anything we do in the Bill should be in support of the levelling-up agenda. This does not do it, and that is why we need a reform of the business rates system.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 163 in the name of the noble Baroness, Lady Taylor of Stevenage, concerns the support for our pubs. We are all aware of the importance of our local pubs; they provide space for people to come together, they provide jobs and they support local economies. But we also know that the past few years have been a challenging time for our pubs, with the Covid-19 pandemic and the current high prices, caused by Russia’s invasion of Ukraine, conspiring to put pressure on already tight operating margins.

Through the pandemic, we recognised that the hospitality sector needed to be more resilient against economic shocks. That is why, in July 2021, we published our first hospitality strategy, Reopening, Recovery and Resilience, which covers cafés, restaurants, bars, nightclubs and pubs.

In 2021—this is important for the issue raised by the noble Baroness, Lady Taylor, of listening to the sector—we also established a Hospitality Sector Council to help deliver the commitments set out in the strategy. The council includes representatives from across the sector, including UKHospitality, the British Beer & Pub Association and the British Institute of Innkeeping, as well as some of our best-known pub businesses. While we fully agree with the aim behind the noble Baroness’s amendment, the strategy she asks for already exists.

Moving on to Amendment 279, I notice that my noble friend Lord Holmes of Richmond is not in his place, but the noble Baroness, Lady Taylor of Stevenage, brought it up on behalf of the noble Baroness, Lady Hayman of Ullock, as did the noble Baroness, Lady Pinnock, on behalf of the noble Lord, Lord Scriven, so I will respond. The amendment would require the Secretary of State to report to Parliament within three months of Royal Assent on the existing barriers to establishing regional mutual banks in the United Kingdom and instruct the Competition and Markets Authority to consult on barriers within competition law for this establishment and identify possible solutions.

I make it clear that the Government are supportive of the choice provided by mutual institutions in financial services. We recognise the contribution that these member-owned, democratically controlled institutions make to the local communities they serve and to the wider economy. However, regional mutual banks are still in the process of establishing themselves here in the United Kingdom, with some now in the process of obtaining their banking licences. It is therefore too early to report on the current regime and any possible limitations of it for regional mutual banks.

I know that my noble friend Lord Holmes was interested in how regional mutual banks have performed in other jurisdictions and how we could use these examples to consider the UK’s own capital adequacy requirements. In this instance, international comparisons may not be the most helpful to make. The UK is inherently a different jurisdiction, with different legislation and regulatory frameworks from those in the US, Europe and elsewhere. Abroad, some regional mutual banks have been in existence for centuries and have been able to build up their capital base through retained earnings. In the UK, regional mutual banks are not yet established and are continuing to progress within the UK’s legislative framework.

Additionally, the Competition and Markets Authority plays a key role in making sure that UK markets remain competitive, driving growth and innovation while also protecting consumers from higher prices or less choice. It is very important to note that the CMA is independently responsible for enforcing UK competition and consumer law. The Government cannot instruct the CMA to undertake a consultation. The Treasury is continuing to engage with the mutuals sector and other industry members to assess how the Government can best support the growth of mutuals going forward. I hope that this provides sufficient reassurance to my noble friend on this issue.

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[Baroness Scott of Bybrook (Con)]

I will quickly respond to the noble Baroness. I will look at what was discussed with the Hospitality Sector Council and will write to the noble Baroness. I am sure that all the other issues will be discussed further in the NDR Bill.

Amendment 163 withdrawn.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, welcome back. Amendment 164 in the name of the noble Baroness, Lady Hayman of Ullock, seeks to reduce the closure of high street financial services. The nature of banking is changing, and the long-term trend is moving towards greater use of convenient, digital and remote banking services over traditional high street branches. In 2021, 86% of UK consumers used a form of remote banking, such as an app, online or on the phone.

Banking customers can also carry out their everyday banking at more than 11,500 post offices across the United Kingdom. The Government are committed to ensuring the long-term sustainability of the Post Office network and have provided more than £2.5 billion in funding to support the Post Office network over the past decade and are providing a further £335 million for the Post Office between 2022 and 2025. There are more than 11,500 Post Office branches in the UK—the largest retail network in the country—and, thanks to government support, the network is more resilient today than it was a decade ago. The Government protect the Post Office network by setting minimum access criteria to ensure that 99% of the UK population lives within three miles of a post office. I do not know whether this is the figure that my noble friend mentioned earlier. Businesses can withdraw and deposit cash at any of those branches of the Post Office.

The noble Baroness, Lady Pinnock, brought up a real issue, I think, and that is good internet access, particularly for banking services. The Government know that, and Project Gigabit is the Government’s £5 billion programme that will ensure that the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in very rural or remote locations. We have an ambition to connect at least 85 % of UK premises by 2025 and 99% by 2030, so we are working on what is a difficult and expensive issue—we know that, but we are working on it.

The Government cannot reverse the changes in the market and customer behaviour, nor can they can determine firms’ commercial strategies in response to those changes. Decisions on opening and closing branches or cash machines are taken by each firm on a commercial basis. However, the Government believe that the impact of such closures should be mitigated so that all customers have access to appropriate banking services.

Of course it is vital that those customers who rely on physical banking services are not left behind, which is why the Financial Conduct Authority has guidance in place to ensure that customers are kept informed of closures and that alternatives are put in place, where reasonable. The FCA’s new customer duty, which came into force on 31 July this year, further strengthens protections for consumers, as it will require firms to consider and address the foreseeable harm to customers of branch closures. These issues were debated extensively during the passage of the Financial Services and Markets Bill in 2023, and through that legislation the Government have acted to protect access to cash by putting in place a framework to protect the provision of cash withdrawals and deposit facilities for the first time in UK law. This introduces new powers for the FCA to seek to ensure reasonable provision of cash-access services in the UK and, importantly in relation to personal current accounts, to free cash-access services. Following the passage of this new law, the Government published a statement setting out their policies on access to cash, which include an expectation that, in the event of a closure, if any alternative service is needed, that alternative should be put in place before the closure takes place.

Furthermore, the financial services sector has established initiatives to provide shared banking and cash services, an example being the banking hubs, which offer basic banking services and a private space where customers can see community bankers from their own bank or building society. Industry has already opened eight banking hubs and 70 more are on the way.

I have set out the comprehensive action the Government are taking to protect access to financial services in a way that recognises the changing nature of banking and respects the commercial decisions of UK businesses. This is why we believe that the right approach is being taken, and, while we agree with the noble Baroness’s intention, we cannot support this amendment.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank all noble Lords who have taken part, particularly those who have offered their support. I thank the noble Baroness, Lady McIntosh of Pickering; I fully understand that she may not be able to join me in the Lobby if I call a vote. I appreciate the support offered by the Green Party through the noble Baroness, Lady Jones of Moulsecoomb, as well as the support of the noble Baroness, Lady Hoey.

The noble and learned Baroness, Lady Butler-Sloss, made a really important point about the distances that have to be travelled, and the need to go to Exeter. My husband’s family are from Ottery St Mary, and I know the area well. When she said there were no banks there and she had to go to Exeter, I was quite horrified. That is an extremely potent example of the problem.

I thank the noble Baroness, Lady Pinnock, of course, for putting her name to the amendment and for offering her support. I have to say that I was pretty disappointed with the Minister’s response. She said that banking is changing and people are now using “convenient” digital services, but the problem is that they are not convenient for everybody. That is the point I was trying to make when I introduced my amendment.

Also, the Post Office network is not always set up in the places and communities where it is needed. We have lost too many post offices and as was mentioned, they are often now not in separate buildings on the high street but at the back of or in the main part of shops. On going to the post office, I have ended up queuing for quite some time because of other people in the shop purchasing things, so it is not necessarily convenient, particularly if you have a lot of money on you. The problem of businesses having to travel large distances with a huge amount of cash has come up. I had not mentioned that issue but of course, it is very important.

The Minister talked about connectivity, but improving connectivity in rural areas has been talked about for years. There are parts of rural areas that are very difficult to connect, and they always seem to get left behind unless the local community agrees to pay what are often very large sums of money. So again, I am not convinced that that will solve the problem. The Minister also talked about having to follow the market. I strongly believe that financial services should be driven not by the market but by the fact that they are important to all our communities, whether we are talking about personal services or business services.

The key point I would like to make concerns the banking hubs. I do not know when we are going to see them. I have never seen one and I do not know what the rollout will be, but they do not seem to be replacing what has been lost.

Having said all that, I am not satisfied by the Minister’s response so I would like to test the opinion of the House.

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Moved by

[Baroness Scott of Bybrook (Con)]

165: Clause 79, page 88, line 25, leave out “the Secretary of State” and insert “an appropriate authority”
Member's explanatory statement
This amendment provides that the power to make planning data regulations may be exercised by “an appropriate authority”.

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Moved by

[Baroness Scott of Bybrook]

168: Clause 82, page 90, line 23, after “regulations” insert “made by the Secretary of State”
Member's explanatory statement
This amendment provides that the power to make regulations requiring the use of approved planning data software in England may only be exercised by the Secretary of State.

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Moved by

[Baroness Scott of Bybrook]

169: Clause 84, page 91, line 10, at end insert “, unless that provision is merely incidental to, or consequential on, provision that would be outside that devolved competence”
Member's explanatory statement
This amendment provides that the Secretary of State may make planning data regulations which contain provision within Scottish devolved competence without consulting the Scottish Ministers where the provision is merely incidental to, or consequential upon, provision that is outside that devolved competence.

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Moved by

[Baroness Scott of Bybrook]

180: Clause 85, page 92, line 21, at end insert—
““appropriate authority” means—(a) the Secretary of State,(b) a devolved authority, or(c) the Secretary of State acting jointly with one or more devolved authorities;”Member's explanatory statement
This amendment provides the definition of “an appropriate authority” for Chapter 1 of Part 3 as the Secretary of State, a devolved authority or the Secretary of State acting jointly with one or more devolved authorities.

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[Baroness Scott of Bybrook (Con)]

My Lords, I have great sympathy for the intention behind the amendments tabled by my noble friend Lord Lansley. The value in having up-to-date plans in place is something we can all agree on and is a goal which several of the measures in this Bill are designed to support. Where I must part company with my noble friend is on the best way of achieving that.

These amendments would create a hard cliff edge for policies in plans. A local plan or a neighbourhood plan could be departed from only if there are “strong reasons”, or—if it passes its sell-by date—would be relegated to being just a material consideration. This would risk undermining the important policy safeguards in plans, which could allow the wrong development in the wrong places. Within any plan, some individual policies are likely to have continuing importance and relevance, irrespective of the actual base date of the plan. For example, policies which set the boundaries of important designated areas, such as the green belt, are expected to endure for some time. Because of this, it is a well-established principle that planning decisions rely on a judgment about which policies are relevant at the point of making a decision. If we created the sort of all-or-nothing cliff edge that these amendments imply, we would put this pragmatism at risk and could undermine important protections.

None of this is to excuse slow plan-making, and I agree entirely with my noble friend that we must do more to get up-to-date plans in place. We have a comprehensive set of actions to do just that. The national development management policies will mean that plans have to contain fewer generic policies than they do now; our digital and procedural reforms in the Bill will make it easier to prepare and approve policies; there will be more proactive intervention through the new gateway checks on emerging plans; and the Bill also bolsters the intervention powers that may be used as a last resort. Our current consultation on plan-making reiterates the Government’s aim that future plans should be produced in 30 months, not years.

We expect the new plan-making system to go live in late 2024. There will be a requirement on local planning authorities to start work on new plans by, at the latest, five years after the adoption of their previous plan and to adopt the new plan within 30 months. Under the new proposals, the Secretary of State will retain existing powers to intervene if authorities fail, and these include the ability to make formal directions and, ultimately, to take steps into an authority’s shoes and take over plan-making responsibilities. The plan also provides a new option for the Secretary of State where authorities are failing: local plan commissioners could be appointed by the Secretary of State at any stage of the new plan-making process.

However, we are going consulting. We are asking for views on the proposals to implement the parts of the Bill that relate to plan-making ,and to make plans simpler, faster to prepare and more accessible. That consultation opened in July and will close on 18 October. If any noble Lords would like to see it, it is available on GOV.UK.

The noble Earl, Lord Lytton, asked whether neighbourhood plans will still be relevant without a local plan. They will: they are still relevant if the planning application is relevant to the neighbourhood plan.

The noble Baroness, Lady Pinnock, asked about the five-year land supply requirement. We have proposed removing that requirement only where plans are less than five years old. This will be an incentive to keep plans up to date by reducing the threat of speculative development where local authorities have done the right thing in having an up-to-date local plan.

It is important that we give these reforms a chance to work, rather than introducing measures that would complicate decision-making and could weaken protections. Therefore, although I understand the intention behind these amendments, I hope that my noble friend has been persuaded to withdraw Amendment 183.

[Lord Lansley (Con)]

My Lords, I am grateful to all noble Lords who have spoken on this group of amendments. I am particularly grateful for the support that noble Lords from all sides of the House have given to the principles behind my amendment.

My noble friend the Minister said that she is sympathetic to what these amendments set out to achieve. I am slightly surprised, because she continued to say that I am looking for something with a cliff edge, as it were. The whole point of Amendment 187 is to give Ministers the regulation-making power to graduate the cliff edge and show the steps up to and down from it. At the same time, my noble friend is trying to use cliff edges. She is saying, “Well, it’s five years, then something happens, then two and half years is the limit on the time available”. Sometimes, these timetables serve a purpose. My noble friend is right to say that local plan-making needs to be accelerated; setting these timetables is clearly a part of that.

This is interesting, because we are not necessarily debating the five-year housing supply elsewhere. The noble Baroness, Lady Pinnock, made a good point. My noble friend the Minister said that the Government are getting rid of the five-year supply requirement in relation to the plan itself. So, in effect, the local plan can say, “Well, this is our housing requirement, and this is how we are meeting it”. However, if you go beyond five years and fall off the proverbial cliff edge, and if a local planning authority does not maintain an annual statement of how it will meet the housing requirement it has identified for its area for the five years ahead, it will in effect see a housing delivery test come in—and it will fail that test. We would return to the situation where developers are able to come in, and that may or may not be a bad thing; but it is not as simple as saying, “We have a housing delivery test”, “We don’t have a housing delivery test”, “We have a different housing delivery test”, “We don’t have the buffer”, and so on.

This issue is all part of the problem that my noble friend Lord Young of Cookham and I will return to in our debate on a later group of amendments, concerning the lack of constraints on local planning authorities that will get them to the point of delivering on the Government’s housing targets. The watering down of the housing delivery test is a significant part of that, as is the buffer built into it in trying to meet the deficiencies in supply by local planning authorities.

My noble friend the Minister made some reasonable points. However, the whole point of this amendment is that we need certainty, as my noble friend Lord Deben rightly said. We need that to be achieved in the wake of this consultation on plan-making. It is not about cliff edges; it is about understanding what an emerging plan means in relation to an existing plan and setting that out in very clear terms. Past efforts have not succeeded. For example, Regulation 10A of the town and country planning regulations sets out that a review must start within five years. We saw the results of that. A local planning authority in my area initiated a review on five years plus one day and said, “We don’t really need to review all of this. We’ll just look at the one thing that we don’t like, which is the housing supply number, and we’ll review it and lower it”—and that was the end of it. The planning inspector said that they did not have the power to say that there should be a more wide-ranging review.

I hope—and believe—that this will be sorted in this consultation on plan-making. However, my point, which I think that my noble friend completely accords with, is that even if we do not do this in regulations—and I will not press the point—it must be done, with clarity and soon; otherwise, we will move to a new system into which all the past uncertainties will be reimported, with local developers and planning authorities going head to head as they have in the past and which has not been helpful. We want to see them using the certainty of the system to manage the supply of housing more effectively in the future.

With that thought of hope over experience, I beg leave to withdraw my amendment.

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Moved by

[Baroness Scott of Bybrook]

184A: Clause 87, page 95, line 9, after “policies,” insert “taken together,”
Member's explanatory statement
This amendment clarifies that inserted subsection (5B) in section 38 of the Planning and Compulsory Purchase Act 2004 requires a determination under the planning Acts to be made in accordance with the development plan and any national development management policies, taken together.

[Baroness Scott of Bybrook (Con)]

My Lords, I do not intend to detain the House for long with Amendment 184A, which is intended solely to avoid any ambiguity arising in relation to the meaning of our changes to Section 38 of the Planning and Compulsory Purchase Act 2004. It clarifies that any determinations are to be made in accordance with the combined effect of the development plan and any applicable national development management policies. This was always our intention, but this amendment seeks to put the matter beyond doubt. I hope your Lordships will be pleased to support it. I beg to move.

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All that we are asking in Amendment 190 is for the Government to enable full parliamentary scrutiny of the content of any policies they may wish to put in the NDMP. This has been a good, thoughtful and considered debate. I hope that the Minister will take it in the spirit in which it is intended and respond by saying that she totally agrees and will, on behalf of the Government, accept Amendment 190.

[Baroness Scott of Bybrook (Con)]

My Lords, our proposals for national development management policies have attracted considerable debate and rightly so, given the important role they play in our planning process. I welcome the thoughtful contributions made today, although I should be clear at the outset that I am not convinced that a compelling case for these amendments exists.

Amendment 186 in the name of the noble Baroness, Lady Hayman of Ullock, would mean that several considerations would need to be weighed up by decision-makers where a conflict occurs between plans and the national development management policies. While I appreciate the intention behind this amendment, it would create a more complex and uncertain task for decision-makers, as it does not provide a clear indication of how any conflict should be resolved, nor how the local authority—as the decision-maker in most cases—is meant to take local authority views into account. The end result is likely to be additional planning appeals challenging local decisions, something our clauses aim to reduce.

Turning to Amendment 188 in the name of the noble Baroness, Lady Taylor of Stevenage, I am unsure what a further statement explaining the relationship between the national development management policies and other planning documents would add. The consultation launched in December last year gave details of what we expect the national planning management policies to do, how they would relate to other aspects of national planning policy and how they relate to plans. In addition, our debates on this subject have helpfully provided further opportunities to make our intentions clear. I want to reassure the House that we are committed to further clarification wherever necessary, which we will do when we respond to that consultation, and again when draft national development management policies are themselves published for consultation.

I must respond to the view of the noble Baroness, Lady Taylor, that NDMPs are moving us towards a zoning system. This is not the case at all. We have been clear that NDMPs will cover generic decision-making matters. They will not impinge on the way authorities allocate land or protect certain areas.

Turning next to Amendment 189 in the name of my noble friend Lord Lansley, I agree that national development management policies should have clear and specific roles, but I am not sure that this amendment is necessary as a means of achieving that. National development management policies will, by virtue of the role they are given by the Bill, cover matters which are relevant in the determination of planning applications. At the same time, a legal limitation of the sort proposed here might constrain the scope of particular policies to be used for that purpose, in a way that would become apparent only through the exercise of preparing them. We have been clear that the scope of national development management policies will not stray beyond commonly occurring matters which are important for deciding planning applications. December’s consultation confirmed that they would

“not impinge on local policies for shaping development, nor direct what land should be allocated for particular uses during the plan-making process. These will remain matters for locally produced plans.”—[Official Report, 17/1/23; col. 1806.]

Amendment 190 in the name of the noble Baroness, Lady Thornhill, returns us to the question of participation in producing national development management policies. This is an important consideration and I agree that these policies should be open to proper scrutiny. At the same time, we need to do this in a way which is both effective and appropriate.

Clause 87 imposes an obligation on the Secretary of State to ensure that such consultation and participation as is considered appropriate takes place. We have been clear, through December’s consultation and in this House, that full consultation will be carried out before these policies are designated. This will build on the initial questions on the principles underpinning these policies, which we posed in December’s consultation, and will in due course give everyone with an interest—whether specialist bodies, local authorities, the public or parliamentarians—the chance to consider and comment on detailed proposals. National development management policies will serve a broader purpose than the National Policy Statements, which are used for major infrastructure projects. They will not be used solely by Ministers for decisions on nationally significant schemes, so it is right that we are placing the emphasis on proper engagement as a way of testing our thinking.

I reiterate: we have made it clear that national development management policies will be consulted on, other than in the exceptional circumstances we have previously discussed. This will give parliamentarians and everyone else with an interest the opportunity to scrutinise and comment on proposed policies. That is why broad engagement on the proposed content of the national development management policies is appropriate and will take place. With that, I hope that the noble Baroness, Lady Hayman of Ullock, will agree not to move Amendment 186, and that other noble Lords are content not to move their amendments when they are reached. With that, I ask the House to agree Amendment 184A in my name formally.

Amendment 184A agreed.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I, too, remember the days of the regional spatial strategies, and long debates in EELGA over housing numbers particularly. Like the noble Baroness, Lady Thornhill, I did not celebrate when they got the kibosh, because I thought that there was a lot of good in them—particularly in meeting the housing needs in the east of England but also on the economic development side, which was as important. A great deal of very good work was done in pulling together data and information for the whole region, in order to look at where and how best to develop particular clusters and where they would work well. So there was a lot of merit in that very strategic-level thinking.

It has moved on a bit since the days of the noble Baroness, Lady Thornhill, in Hertfordshire, with the Hertfordshire Growth Board looking at issues outside the remit of the straightforward local planning authority. For example, there is the mass rapid transit system that south and south-west Hertfordshire was looking at, which covers a number of different local authorities. Then, there is working with the local enterprise partnerships, as we did on the Hertfordshire Growth Board. There was a clear drive towards the consideration of travel-to-work areas, which was why I spoke so strongly in favour when we discussed this issue before.

I am convinced that we need to work jointly, with joint authorities, involving them in particular in the early stages, as the noble Lord, Lord Lansley, said. It is no good waiting until a draft strategy has been produced and, if there is a major game-changer in there, expecting local authorities to pick it apart and change it. It is much better for them to be engaged and involved from the very start.

The noble Lord, Lord Lansley, mentioned government Amendment 201B, which we will debate on Wednesday, which will allow combined authorities to take on planning powers. I am not going to start the whole discussion now, but we were very concerned about this. We will have a debate about it, but it seems like a very slippery slope indeed. It is far better to include local authorities and all the component parts that make up the combined authority and their neighbours in the discussion from the early days of the joint spatial development strategy.

I absolutely support the points made by the noble Baroness, Lady Thornhill, on the inclusion of districts and councils in a very real way in the decision-making on JSDSs. I think it emphasises the points we made in earlier debates, in Committee and on Report, about the importance of the full membership of combined authorities—for both tiers in two-tier areas. Those organisations are then involved right from the start, and they have a democratic mandate to be so involved.

The noble Baroness, Lady Bennett, made the important point that there are elements that will be included in joint spatial development strategies that do not stop at boundaries, and so it is very important that we work across those boundaries on such things as climate change, healthy homes, sustainable transport and biodiversity. All those things do not come to an end when you get to the end of your local plan area, so we all need to work together on how we tackle those key issues.

We are very supportive of the amendment put forward by the noble Lord, Lord Lansley. I am interested to hear the Minister’s answer as to whether the part of the schedule that covers this would stretch to make sure that this very important early-stage consultation could be included as a requirement within the Bill.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, let me first say that the aim of Amendment 192 in the name of my noble friend Lord Lansley is sensible and I understand its intention. Other authorities, such as county councils, will be essential for a successful plan, given that they are responsible for delivering a range of critical services such as highways and transport, flood risk management and waste management. Of course, county councils will also have the role of a statutory consultee for the joint spatial development strategies.

We expect engagement with other authorities to be typical good practice for any group of local planning authorities preparing a joint spatial development strategy—an SDS. Indeed, it would appear unlikely that any joint SDS that did not engage appropriately with other local government bodies could be found sound at examination. Let me make it clear that county councils are going to play an important role in the plan-making process. We envisage them not just as consultees but as being closely involved with the day-to-day production of any joint SDS. The Government have set out our intention to introduce an alignment policy via the National Planning Policy Framework to address cross-boundary and strategic issues such as travel to work areas, and this policy will be consulted on in due course.

Both my noble friend Lord Lansley and the noble Baroness, Lady Taylor of Stevenage, brought up the government amendments in the next group. Just to make it clear, Schedule 4 amendments will mean that combined county authorities will be in the same position that the Mayor of London and county councils and combined authorities are in currently in relation to the ability of the Secretary of State to invite those bodies to take over plan-making, but where a constituent planning authority is failing in its plan-making activities. It is not that they can just walk in and take over, but if the local plan is not being delivered by the planning authority then they have the right to ask the Secretary of State if they can take it over. I just wanted to make that clear, but I am sure we will have the discussion again on Wednesday.

My noble friend brought up the Secretary of State’s powers in relation to the role of county councils. I do not know that, legally. I will make sure that I find out tomorrow and I will write to my noble friend and send a copy to those in the Chamber tonight.

I am not convinced that this amendment is needed to make local planning authorities work with other authorities, notably county councils, on joint SDSs. I hope that my noble friend Lord Lansley feels he is able to withdraw his amendment at this stage.

[Lord Lansley (Con)]

Before my noble friend sits down, might she leave open the door to the possibility of the Government looking in particular at this question of whether the Secretary of State has sufficient powers, in relation to a joint spatial development strategy, to prescribe in guidance the way in which local planning authorities will go about the process of consulting with counties and combined county authorities? The panoply of guidance is not the same for a JSDS as it is for a local plan and it is not there in statute for a JSDS as it is for a local plan. Maybe some of it needs to be—just enough to make sure that the things my noble friend is describing that a good authority must do are there in the guidance. Maybe we will need something at Third Reading to enable that.

[Baroness Scott of Bybrook (Con)]

I assure my noble friend that I will continue to look at this one and see whether we can at least get it clearer so that he is happy with it.

[Lord Lansley (Con)]

I thank my noble friend and all those who participated in this short debate, which demonstrated a truly all-party approach to the issue. We just have to take the Government with us—apart from that it has all been absolutely fine. I think the Government agree with us in principle and in substance; we may just need a bit of an iteration on the mechanisms for doing this. Subject to that, I beg leave to withdraw my amendment.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

Can combined county authorities politely decline that invitation if it is extended? I can imagine a number of reasons why they might do that. Chief of those is resource constraints: many combined county authorities, or components of them, are on the brink of bankruptcy and they might not wish to take on an additional challenging function for which they have no capacity or capability. The authorities into whose territory they would trespass are also often in a parlous situation as far as resources go. Not everyone wants to take over Wilko and it is quite understandable that this “may invite” provision will be regarded askance by not just the district councils but the combined county authorities. I would like to understand more clearly what the Minister intends the process to be. If she says, “They could decline or politely refuse”, then what is the alternative plan? This is a new power that has unforeseen consequences, most of which seem to point in a damaging direction. More uncertainty about this “may invite” provision seems to compound that. I look forward to hearing what the Minister says.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendments 193 and 194 in the name of my noble friend, Lord Lansley, seek to require plan-making to include the strategic priorities of the authority and to ensure that a local plan can include policies relating to achieving sustainable economic growth. The Government want the planning system to be truly plan-led, to give communities more certainty.

The Bill provides clear requirements for what future local plans must include. This replaces the complex existing framework, which includes the requirement at Section 19(1B) of the Planning and Compulsory Purchase Act 2004 for authorities to

“identify the strategic priorities for the development and use of land”

in their areas. There is nothing in the Bill to stop authorities including strategic priorities and policies in future local plans. Indeed, our recently published consultation on implementing our plan-making reforms proposes that plans will need to contain a locally distinct vision that will anchor them, provide strategic direction for the underpinning policies and set out measurable outcomes for the plan period. Likewise, on the specific subject of sustainable economic growth, we are retaining the current legal requirement in Section 39 of the Planning and Compulsory Purchase Act 2004 for authorities to prepare plans with the objective of contributing to the achievement of sustainable development.

My noble friend Lord Lansley asked why the distinction between strategic and non-strategic was removed and whether the NPPF will be redrafted to reflect this. That distinction derives from previous legislation on plans, which the Bill will replace with clearer requirements to identify the scale and nature of development needed in an area. The NPPF will be updated to reflect the legislation, subject to the Bill gaining Royal Assent. In light of this, I hope that my noble friend will feel able not to press his amendment.

I turn now to Amendment 193A in the name of the noble Lord, Lord Best. This amendment seeks to require local plans to plan for enough social-rented housing to eliminate homelessness in the area. National planning policy is clear that local plans should, as a minimum, provide for objectively assessed needs for housing. In doing so, local authorities should assess the size, type and tenure of housing needed for different groups in the community, including those who require affordable housing. This should then be reflected in their planning policies. The Government are committed to delivering more homes for social rent, with a large number of new homes from the £11.5 billion affordable homes programme to be for social rent. We are also carefully considering the consultation responses to our proposal to amend national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes.

Tackling homelessness and rough sleeping is a key priority for this Government. That is why we will be spending more than £2 billion on homelessness and rough sleeping over the next three years. The Homelessness Reduction Act, which the noble Lord, Lord Best, was so influential in bringing forward, is the most ambitious reform to homelessness legislation in decades. Since it came into force in 2018, more than 640,000 households have been prevented from becoming homeless or supported into settled accommodation. We know that the causes of homelessness are complex and are driven by a range of factors, both personal and structural, and I fear that creating a link between local plans and homelessness reduction would add more complexity.

The noble Lord, Lord Best, asked why we cannot recognise housing need in local plans, particularly homelessness and affordable housing. The Bill already requires that plans set out policies for the amount, type and location of the development needed. I feel that it is a local issue, and the best way to ensure that we get the amount of particular housing needed in a particular area is for it to be put into local plans by local councils talking to local people. The noble Baroness, Lady Thornhill, asked how local needs are going to be assessed in the future and how they will be defined. This is another matter that will be considered when we update national policy. We need flexibility to address changes in circumstances, which is why policy is the best approach to this, rather than looking for definitions in legislation.

I move now to Amendment 199 in the name of the noble Lord, Lord Berkeley, and my noble friend Lord Young of Cookham. I thank the noble Lords for their amendment on this important matter. We recognise the importance of walking and cycling, and the role the planning system plays in enabling the infrastructure which supports active forms of travel. National planning policies must be considered by local authorities when preparing a development plan and are a material consideration in planning decisions. The Bill does not alter this principle and would strengthen the importance of those national policies which relate to decision-making. The existing National Planning Policy Framework is clear that transport issues, including opportunities to promote walking and cycling, should be considered from the earliest stages of plan-making and when considering development proposals. Proposals in walking and cycling plans are also capable of being material considerations in dealing with planning applications, whether or not they are embedded in local plans. Indeed, the decision-maker must take all material considerations into account, so there is no need to make additional provision in law as this amendment proposes.

The Government are delivering updates to the Manual for Streets guidance to encourage a more holistic approach to street design which assigns higher priorities to the needs of pedestrians, cyclists and public transport. We are also working closely with colleagues in the Department for Transport to ensure local transport plans are better aligned with the wider development plan.

The noble Lord, Lord Young, asked if the NPPF policy requiring a high bar to refuse proposals on transport grounds will be changed. As he knows, we have committed to a full review of the NPPF, part of which will need to look at all the aspects of policy, including how best to provide for walking and cycling.

I move now to government Amendments 196C, 196D, 201B, 201C and 201D. These are consequential on Clause 91 and Schedule 7 to the Bill which, when commenced, will introduce a new development plans system. They amend and supplement consequential amendments to Schedule A1 to the Planning and Compulsory Purchase Act 2004 made by Schedule 4 to the Bill relating to the creation of combined county authorities. The Schedule 4 amendments will mean that combined county authorities will be in the same position as the Mayor of London, county councils and combined authorities are currently in relation to the ability of the Secretary of State to invite those bodies to take over plan-making where a constituent planning authority is failing in its plan-making activities. The noble Lord, Lord Stunell, asked what will happen if they do not want to do so. I do not think we can force them, but there are a couple of things we can do if local authorities are not producing local plans in a timely manner or at all. For example, the Secretary of State will be a commissioner who could take over the production of the plans, or the local secretary of state could take that into his own hands. We are not going to force them, but it will be an offer they can make in order that their county combined authorities have the correct plans in place to shape their communities in the correct way.

In light of the new plan-making system being introduced by the Bill, a number of consequential amendments to Schedule A1 to the 2004 Act are already provided for by Schedule 8 to the Bill. Broadly speaking, they will update Schedule A1 to ensure that the provisions can operate within the new plan-making system. As such, in light of these wider reforms, these further amendments are needed to ensure that the new provisions which Schedule 4 to the Bill will insert into Schedule A1 are updated accordingly when the new plan-making system comes into effect. I hope noble Lords will support these minor and consequential changes.

Finally, the Bill ensures that neighbourhood plans will continue to play an important role in the planning system and encourage more people to participate in neighbourhood planning. For example, it will mean that future decisions on planning applications will be able to depart from plans, including neighbourhood plans, only if there are strong reasons to do so. While the Bill retains the existing framework of powers for neighbourhood planning, it will also provide more clarity on the scope of neighbourhood plans alongside other types of development plan. It amends the list of basic conditions set out in Schedule 4B to the Town and Country Planning Act 1990 which new neighbourhood development plans and orders must meet before they can be brought into force.

Amendment 197 would make corresponding changes to the basic conditions set out in paragraph 11(2) of Schedule A2 to the Planning and Compulsory Purchase Act 2004 so that the same conditions apply when an existing neighbourhood development plan is being modified. These changes are necessary to ensure that these neighbourhood plans receive consistent treatment.

[Lord Lansley (Con)]

I am most grateful to all noble Lords who participated in this rather important debate. From my point of view, in considering whether strategic policies should be distinguished from non-strategic policies in plan-making, I asked my noble friend a question and I got a reply. It is an interesting reply because by simply asserting that the local plan must include, in effect, all policies, my noble friend is saying that that is clearer than the present structure which distinguishes between strategic policies and non-strategic policies.

Noble Lords may say that we are all dancing on the head of a pin—I do not think so. The noble Baroness, Lady Taylor of Stevenage, made an extremely good point: identifying strategic priorities in a local planning authority’s local plan is a key component of creating spatial development strategies in a broader area. That would be extremely helpful.

None the less, what my noble friend has told me is going to be an interesting conclusion for people to draw. We are now told that the consultation draft of the National Planning Policy Framework, which was published on 22 December following the passage of this Bill in the other place, did not take account of what is in the Bill. This is rather interesting. It means that if we change the Bill, we can change the NPPF—which, from the point of view of my noble friend’s and other amendments, is a very helpful thought that we might take up. I do not think that the revisions that will follow to the NPPF will be as wide ranging as my noble friend implied, because that would mean that they would do away with much of what is written presently into the chapter on plan-making.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

194A: Schedule 7, page 347, line 38, at end insert—
“(6A) The local plan must take account of any local nature recovery strategy that relates to all or part of the local planning authority’s area, including in particular—(a) the areas identified in the strategy as areas which—(i) are, or could become, of particular importance for biodiversity, or(ii) are areas where the recovery or enhancement of biodiversity could make a particular contribution to other environmental benefits,(b) the priorities set out in the strategy for recovering or enhancing biodiversity, and(c) the proposals set out in the strategy as to potential measures relating to those priorities.”Member’s explanatory statement
This amendment requires a local plan to take account of any local nature recovery strategy that relates to any part of the area of the authority preparing the plan.

--- Later in debate ---

Then there is the issue that we have forgotten about: currently, more than 1 million homes with planning consent are not being built. In my small ward, planning consent for nearly 800 homes has been there for two or three years. The homes are not being built because it does not suit the developers to do so. Unless we also overcome the issue that there is too much power in the hands of developers, we miss the whole point about top-down targets. I repeat: top-down targets do not build homes. We need to talk to communities, discussing how inward investment and housebuilding will help them thrive and help their high streets come to life. That is why, if the noble Lord, Lord Young, is moved to press his amendment to a vote, we will be unable to support him. We will abstain. We agree that more houses are needed, which is where I started. There is complete agreement on that, but we disagree on how you achieve it.

[Baroness Scott of Bybrook (Con)]

My Lords, I am grateful for the contributions made on this important issue. I reiterate at the outset that delivering more homes remains a priority for this Government, as the Prime Minister and the Secretary of State made clear in the long-term plan for housing, which they set out at the end of July.

Local plans play a crucial role in enabling new homes to come forward, which is why the National Planning Policy Framework is clear that all plans should seek to meet the development needs of their area. Nothing we consulted on at the end of last year changes that fundamental expectation. There will, however, be limits on what some plans can achieve, which is where I must take issue with Amendment 195, in the names of my noble friends Lord Lansley and Lord Young, the noble Lord, Lord Best, and the noble Baroness, Lady Hayman of Ullock.

Amendment 195 would place local plans under a legal obligation to meet or exceed the number of homes generated by the standard method prescribed by the Government. Amendment 200, in the name of the noble Baroness, Lady Hayman of Ullock, is designed to have a similar effect. While this is well intentioned, it would be unworkable in practice. Ever since the National Planning Policy Framework was introduced in 2012, it has been clear that plans should meet as much of their identified housing need as possible, but there are legitimate reasons why meeting or exceeding that need may not always be appropriate. For example, an authority with very extensive areas of green belt or which is largely an area of outstanding natural beauty or a national park may not be able to meet its identified housing need in full if we are also to maintain these important national protections. In these cases, there will be a need to consider whether any unmet need can be met elsewhere, which is something that our policies also make clear.

It is for this reason that our standard method for calculating housing need—or, indeed, any alternative method which may be appropriate in certain cases—can be only a starting point for plan-making, not the end. Mandating in law that the standard method figures must be met or exceeded in all cases would do significant harm to some of our most important protected areas and could conflict with other safeguards, such as the need to avoid building in areas of high flood risk.

It is also right that local communities should be able to respond to local circumstances. The changes to national policy which were consulted upon at the end of last year are designed to support local authorities to set local housing requirements that respond to demographic and affordability pressures while being realistic, given local constraints. However, let me make it clear: the Secretary of State’s Written Ministerial Statement, published on 6 December 2022, confirmed that the standard method for assessing local housing need will be retained. To get enough homes built in the places where people and communities need them, a crucial first step is to plan for the right number of homes. That is why we remain committed to our ambition of delivering 300,000 homes per year and to retaining a clear starting point for calculating local housing needs, but we know that the best way to get more homes is by having up-to-date local plans in place.

Amendment 196, in the name of my noble friends Lord Lansley and Lord Young, takes a different approach, obliging local planning authorities to have regard to any standard method and any national housing targets when preparing their local plans. I will put this more bluntly still: there is no question that we are about to let local authorities off the hook in providing the homes that their communities need. They need to have a plan, it should be up to date, it needs to do all that is reasonable in meeting the needs of the local area and, in response to the question asked by the noble Baroness, Lady Pinnock, it needs to look at different types of housing. They need to know how much housing is required for older people, younger people, families and disabled people. That is what their plan should have. We have discussed this with local authorities and will be working with them to ensure that that will happen.

A need to have regard to the standard method is already built into the Bill, as Schedule 7 requires local planning authorities when preparing their local plan to have regard to

“national policies and advice contained in guidance issued by the Secretary of State”.

That includes the National Planning Policy Framework, its housing policies, including those relating to the use of the standard method, and associated guidance. Adding a specific requirement to have regard to the standard method would have no additional effect as planning authorities will already take it into account and draft plans will be examined against it.

A legal obligation to take any national housing target into account, which this amendment would also create, poses a different challenge as it is unclear how plans at the level of an individual local authority could do so. This could create unintended consequences by creating an avenue for challenges to emerging plans on the basis that they have not done enough to reflect a national target and so could slow down the very plans that we need to see in place.

I hope that, taking these considerations into account, my noble friend Lord Lansley is persuaded not to move his amendment.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

196A: Schedule 7, page 350, line 20, at end insert—
“(5A) The minerals and waste plan must take account of any local nature recovery strategy that relates to all or part of the relevant area, including in particular—(a) the areas identified in the strategy as areas which—(i) are, or could become, of particular importance for biodiversity, or(ii) are areas where the recovery or enhancement of biodiversity could make a particular contribution to other environmental benefits,(b) the priorities set out in the strategy for recovering or enhancing biodiversity, and(c) the proposals set out in the strategy as to potential measures relating to those priorities.”Member's explanatory statement
This amendment requires a minerals and waste plan to take account of any local nature recovery strategy that relates to any part of the relevant area.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

196F: Clause 92, page 98, line 35, at end insert “, and
(b) take account of any local nature recovery strategy, under section 104 of the Environment Act 2021, that relates to all or part of the neighbourhood area, including in particular—(i) the areas identified in the strategy as areas which—(A) are, or could become, of particular importance for biodiversity, or(B) are areas where the recovery or enhancement of biodiversity could make a particular contribution to other environmental benefits,(ii) the priorities set out in the strategy for recovering or enhancing biodiversity, and(iii) the proposals set out in the strategy as to potential measures relating to those priorities.”Member's explanatory statement
This amendment requires neighbourhood development plans to take account, so far as appropriate, of any local nature recovery strategy that relates to all or part of the neighbourhood area to which the plan relates.

--- Later in debate ---

Moved by

[Baroness Scott of Bybrook]

197: Clause 93, page 99, line 33, at end insert—
“(3) In paragraph 11(2) of Schedule A2 to PCPA 2004 (modification of neighbourhood development plans: basic conditions)—(a) for paragraph (c) substitute—“(ca) the making of the plan would not result in the development plan for the area of the authority proposing that less housing is provided by means of development taking place in that area than if the draft plan were not to be made,”; (b) after paragraph (d) (but before the “and” at the end of that paragraph) insert—“(da) any requirements imposed in relation to the plan by or under Part 6 of the Levelling-up and Regeneration Act 2023 (environmental outcomes reports) have been complied with,”Member's explanatory statement
This amendment updates the basic conditions which must be met for a modification of a neighbourhood development plan, so that they correspond to those that will apply for making a neighbourhood development plan once the amendments already included in Clause 93 are made.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[The Lord Bishop of Southwark]

My Lords, the noble Baronesses, Lady Hayman and Lady Bennett, and the noble Lord, Lord Stunell, have all spoken eloquently on Amendment 201, which I support. I thank them for tabling it.

The independent Archbishops’ Commission on Housing reported in March 2021, and your Lordships’ House may recall the debate that the most reverend Primate the Archbishop of Canterbury secured on 24 March 2021, on the subject of housing. I simply wish to highlight a few points from that which I believe are relevant to the debate on this amendment.

The first is that the object of central government policy and of legislation should always be the ready provision of good housing—homes in which people want to live, in areas capable of flourishing. Too often, sadly, that is not the case, and we build among the smallest dwellings in Europe. Secondly, we require a bipartisan approach that enables a consistent policy to be followed across decades, and not one that is beholden to the sort of interests that have so limited housebuilding. It is worth remembering, as has already been mentioned today, that the last year in which we achieved house- building at the current target of 300,000 was 1969, over 50 years ago. Thirdly, we require a definition of affordable housing that relates specifically to income. Without this, any policy on affordable housing will fail. I support Amendment 201.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing and Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 201 in the name of the noble Baroness, Lady Hayman of Ullock, relates to the definition of affordable housing. The amendment proposes a consultation on the definition that currently appears in the National Planning Policy Framework. We have had good debates about these issues, both today and in Committee, and I recognise the strength of feeling around the importance of ensuring that affordable housing meets the needs of those who require it.

I can reaffirm the Government’s commitment to delivering more houses for social rent. We are carefully considering the consultation responses to our proposal to amend national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes. A large number of the new homes delivered through our £11.5 billion Affordable Homes Programme will be for social rent.

Nevertheless, it is also important that the definition of affordable housing in the NPPF provides local authorities with sufficient flexibility to plan for the type of affordable housing that is needed in their area. The existing definition includes a range of affordable housing products for those whose needs are not met by the market. Those needs will vary depending on people’s circumstances and in different housing markets.

I am also mindful of the point made during our debate in Committee by my noble friend Lord Young of Cookham, about the trade-off between the level of discount that a type of affordable housing provides and the number of such homes that can be delivered.

We all agree that we need to consider this issue further. That is why we have committed to a wider review of the national planning policy once the Bill has received Royal Assent. That will include the production of a suite of national development management policies. This work will need to consider all aspects of national policy—and that includes the way that affordable housing is defined and addressed—and would be subject to consultation. I look forward in that consultation to hearing all the views from the sectors which have been mentioned this afternoon. I think we all agree on this.

What we do not agree on is how we should process this particular issue that we want to deliver. I therefore hope that the noble Baroness, Lady Hayman of Ullock, feels able to withdraw her amendment at this stage.

Amendments 201A and 285A from the noble Lord, Lord Stunell, raise two important matters relating to affordable housing. The first matter is how affordable housing is defined for the purposes of this Bill. The approach has been to link this to the definition of social housing in the Housing and Regeneration Act 2008. This definition encompasses both rented and low-cost home ownership accommodation that is made available in accordance with rules designed to ensure it is made available to people whose needs are not adequately served by the commercial housing market. While I understand the noble Lord’s argument that affordable housing should be defined more tightly, I am eager to avoid depriving local authorities of sufficient flexibility to determine what is most appropriate to meet the needs of their area.

However, the Government are taking action to secure the delivery of more social rented homes, as I have said, for which rents are set using a formula that takes account of relative local incomes. A large number of these new homes, as I have said before, will be delivered through our £11.5 billion Affordable Homes Programme and will be for social rent.

We are also carefully considering the consultation responses to our proposal to amend the national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes. The noble Lord, Lord Stunell, also raised the disclosure of information relating to the viability of affordable housing in housing developments. Although I recognise that the noble Lord is seeking to improve the transparency of this process, I do not believe that the change he is proposing is necessary. As discussed earlier on Report, the new infrastructure levy will allow local authorities to require developers to pay a portion of their levy liability in kind in the form of on-site affordable housing. This new “right to require” is designed to replace site-specific negotiations of affordable housing contributions.

While viability assessments may be used in setting infrastructure levy rates, any developer that wishes information to be taken into account must submit it to be examined in public. Levy rates and charging schedules will be matters of public record.

[Lord Stunell (LD)]

I hesitate to interrupt the Minister, but can she confirm that the infrastructure levy will not be operational in most of England for another eight or 10 years?

[Baroness Scott of Bybrook (Con)]

As the noble Lord knows, we have already discussed this. We will have a test and learn throughout the country and then a rollout, but with any large change in any planning system, as with the community infrastructure levy, it will take time—up to 10 years, we believe.

Levy rates and charging schedules will be matters of public record, as I said. For these reasons, I hope that the noble Lord will agree not to move his amendments.

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank all noble Lords who have taken part in this debate and the Minister for her response. I welcome the right honourable Michael Gove to the Chamber and thank him for taking the time to listen to our debate. Clearly, he is enthralled by our discussions at the moment, and I am sure that he will take our concerns away for further consideration.

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Moved by

[Baroness Scott of Bybrook]

201B: Schedule 8, page 389, line 39, at end insert—
“(8A) In paragraph 7ZA (inserted by paragraph 156 of Schedule 4), in paragraph (b) of the definition of “constituent planning authority”, for “29” substitute “15J”.(8B) For paragraph 7ZB (inserted by paragraph 156 of Schedule 4) substitute—“7ZB “(1) This paragraph applies if the Secretary of State thinks that a constituent planning authority are failing to do anything it is necessary or expedient for them to do in connection with the preparation, adoption or revision of a local plan.(2) If the local plan has not come into effect, the Secretary of State may invite the combined county authority to take over preparation of the local plan from the constituent planning authority, in which case the combined county authority may do so.(3) If the local plan has come into effect, the Secretary of State may invite the combined county authority to revise the local plan, in which case the combined county authority may do so.”(8C) In paragraph 7ZC (inserted by paragraph 156 of Schedule 4)—(a) in sub-paragraph (1), for “development plan document” substitute “local plan”;(b) after that sub-paragraph insert—“(1A) If the combined county authority are to prepare the local plan, the combined county authority must publish a document setting out—(a) their timetable for preparing the plan, and(b) if they intend to depart from anything specified in a local plan timetable in relation to the plan, details of how they intend to depart from it.”;(c) for sub-paragraph (4) substitute—“(4) The combined county authority may then—(a) where the combined county authority have prepared a local plan, approve the local plan subject to specified modifications or direct the constituent planning authority to consider adopting the local plan by resolution of the authority, or(b) where the combined county authority are to revise a local plan, make the revision or make the revision subject to specified modifications.”(8D) In paragraph 7ZD (inserted by paragraph 156 of Schedule 4)—(a) for sub-paragraph (1) substitute—“(1) Subsections (4) to (12) of section 15D, and section 15DA, apply to an examination held under paragraph 7ZC(2)—(a) reading references to the local planning authority as references to the combined county authority, and(b) in the case of an independent examination of a proposed revision, reading references to a local plan as references to the revision.”;(b) in sub-paragraph (3)(a), omit “or omitted”;(c) in sub-paragraph (4)—(i) for “joint local development document or a joint development plan document” substitute “joint local plan”;(ii) for “the document” substitute “the plan”.” Member’s explanatory statement
This amendment to Schedule 8 to the Bill makes amendments to Schedule A1 to the Planning and Compulsory Purchase Act 2004 in connection with provision for development plans under Part 3 of the Bill. The amendments amend and supplement consequential amendments to Schedule A1 to the 2004 Act made by Schedule 4 to the Bill relating to the creation of combined county authorities.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I will speak to my Amendment 244 in this group and I will then make brief comments on the other amendments. Amendment 244 is designed to cover an issue that arises almost at the intersection of planning and procurement. It can be the case that, where local authorities undertake major development, the nature of the planning system is such that the subsequent tender process will be enacted only for the totality of the development. Of course, the major contractors can subcontract works out, but this process does not always accrue maximum benefit to the local economy. Our amendment aims to ensure that whatever can be done at the stage of granting planning permission is done, to enable SME participation in, and engagement with, those contracts being achieved.

Amendment 217, from the noble Lord, Lord Lansley, applies a provision for “drop-in permissions”. We note that this is an acknowledged problem that may or may not require an amendment to planning law. I absolutely take the good point made by the noble Baroness, Lady Pinnock, about the provision of infrastructure where there is a drop-in permission, and we look forward to hearing the Minister’s view on whether the existing wording is sufficient to enable the necessary change to unblock buildouts on large sites.

In relation to Amendment 219, proposed by the noble Lord, Lord Lansley, we would of course support refusing permissions to those who have not made buildout applications previously; that is a welcome change. We greatly sympathise with the noble Lord’s point that doing this to someone with an undefined connection with the previous applicant is way too unspecific in terms of planning law, and who that undefined connection would be. We agree that this needs to be either tightened up or taken out altogether, because it could have unintended consequences if it is left in the Bill as it is.

Amendment 221, proposed by the noble Lord, Lord Carrington, recommends splitting planning applications into two stages for the purpose of encouraging rural economic development. We fully support the notion that anything that can be done within the planning system to encourage rural economic development should be done. But it is difficult to see how, in practical terms, a two-stage permission would work. There is already very strong provision and encouragement in the planning system for outline permissions to be submitted and then followed by detailed permissions for major developments. This is common practice, and I am sure rural areas are not excluded. I wonder whether that would be the type of process, or if there are things I am missing in the noble Lord’s amendment.

We were delighted to see Amendment 221A, proposed by noble Lord, Lord Goldsmith, relating to the provision of swift bricks. We very much enjoyed his enthusiastic and passionate advocacy in his introduction, and all speeches made by noble Lords in favour of this. The noble Lord’s amendment follows extensive public interest in introducing this step, which led to the public petition debate to which the noble Lord referred, and to very strong cross-party support. We note also that the Wildlife and Countryside Link is in favour of this measure, as are many recognised experts.

We believe that specifically including swift bricks as a measure in the Bill, to be incorporated in planning law, is justified because of the unique nature of these precious birds’ nesting habits. They add to the biodiversity of urban areas, and I am particularly keen that we support that. I grew up as a townie and the swifts and house martins were a real feature of my childhood growing up in a town. Their decline has been very visible and sad to see. If there is anything we can do to either halt that decline or hopefully turn it around, we should certainly do so. There is definitely a clear and present threat to these species. We hope the Government will accept this relatively a small step, which could make a world of difference to protecting our swift population, and that it will not be necessary for the noble Lord, Lord Goldsmith, to divide the House—but I hope he knows he has our full support in this amendment.

Amendment 282, in the name of the noble Lords, Lord Northbrook and Lord Bellingham, may relate to issues the Minister referred to in Committee. We comment only that, while we accept that notices published on local authority websites would usually be appropriate, of course there are other ways of drawing the public’s and stakeholders’ attention. We have some concerns about stating that anything must remain permanently on a website, but we understand his point.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 217, tabled by my noble friend Lord Lansley, would allow regulations to permit variations to an existing permission, without rendering that permission void. We recognise that there is concern in the sector about the impact of recent case law, particularly for large-scale phased development. This is an issue which we have looked at very carefully.

Clause 104 already introduces a new, more flexible route to vary permissions: Section 73B, where the substantial difference test can cover notable material changes. To assist the understanding of the new provision, we propose to amend the headings in the clause to make this clearer and avoid misapprehension. Existing powers in the Town and Country Planning Act 1990 would allow us to deal with this issue through secondary legislation, so we do not consider that a further power would be required. Instead, we propose to engage and consult the sector as part of the implementation of Section 73B and, if further action were needed, we would consider the use of our existing powers if warranted. I hope my noble friend is sufficiently reassured not to press his amendment on this.

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[Baroness Hayman of Ullock (Lab)]

My Lords, this has been an interesting if short discussion which picks up on much of the debate that we had during Committee. I thank the noble Baroness, Lady McIntosh, for bringing this back to us again today.

One thing that came across very clearly when we debated this in Committee was that it really is time to review the status and look at the situation. It is important that we return to this. As the noble Baroness, Lady McIntosh, has said, now and previously, we have got the change of use from office to residential space in town centres, we have the problem of many empty town centre premises, and there have been a lot of changes on our high streets and in our towns in ways that we have not seen before. These challenges are particularly acute for the night-time economy.

The agent of change principle has been with us for some years. This is why it is important that we use this Bill to ensure that it is fit for purpose and doing what we need it to do. As we have heard, it is in the National Planning Policy Framework, but does the licensing guidance, as the noble Baroness said, reflect the principles of the NPPF itself? The NPPF needs to be fit for purpose, as well as the agent of change principle that sits within it.

I asked at Committee and would like to ask again: is the NPPF, when we get to see it, going to reflect the likely focus of future planning decisions on this? How is that all going to be taken into account? This is genuinely an opportunity to enshrine this principle in legislation and get it right. It needs to be fit for purpose and it needs to do what it is supposed to do: to protect both sides of the discussion and debate when you have change of use coming forward. As the noble Baronesses, Lady McIntosh and Lady Pinnock, said, we need to get this right and it has to have teeth—I think that was the expression that the noble Baroness, Lady McIntosh, used. We completely support her request for clarification on the legislative change referred to by the Minister in Committee and hope that we can move forward on this issue.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 220 in the name of my noble friend Lady McIntosh of Pickering tackles the important agent of change principle in planning and licensing. There was substantial discussion around this topic during Committee, a lot of it setting out the important conclusions of the House of Lords Liaison Committee follow-up report from July 2022. This built on the post-legislative scrutiny by the House of Lords Select Committee on the Licensing Act 2003. I thank the committee for its work and will briefly summarise how the Government are meeting the aspirations of that committee.

First, the committee’s report called for licensing regime guidance to be updated to reflect the agent of change policy in the National Planning Policy Framework. This is why, in December 2022, the Home Office published a revised version of its guidance made under Section 182 of the Licensing Act 2003, cross-referencing relevant sections of the National Planning Policy Framework for the first time. The Government have therefore delivered on this recommendation.

Secondly, the committee set out that it believes that guidance does not go far enough and that the Government should

“review the ‘Agent of Change’ principle, strengthen it”.

Recommendations such as this are one of the many reasons why we are introducing national development management policies. In future, and subject to further appropriate consultation, NDMPs will allow us to give important national planning policy protections statutory status in planning decisions for the first time. This could allow the agent of change principle to have a direct statutory role in local planning decisions, if brought into the first suite of NDMPs when they are made.

Finally, the committee called for greater co-ordination between the planning and licensing regimes to deliver better outcomes. We agree that such co-ordination is crucial to protect affected businesses in practice and it is why the updated Section 182 guidance, published by the Home Office in December 2022, is a significant step forward. The Government are committed to ensuring that their policies which embed the agent of change principle are effective, but we do not think that additional legislative backing is needed at this time. As such, I hope that the noble Baroness will understand why, although we entirely support its intention, we will not support the amendment. With that, I hope that she will be willing to withdraw it.

[Baroness McIntosh of Pickering (Con)]

My Lords, I am grateful to all those who have spoken and for the support from the noble Baronesses, Lady Pinnock and Lady Hayman of Ullock.

I recognise what my noble friend the Minister said in seeking to support the conclusions of the follow-up report of the House of Lords Liaison Committee, which in itself was very powerful, but I know that the industry and practitioners who appear before licensing and planning committees will be hugely disappointed that my noble friend has not taken this opportunity to give the agent of change principle legislative teeth. I record that disappointment. I would like to discuss with the Minister, bilaterally if I may, how NDMPs can have legislative effect if they are not in primary legislation, but that is something that we can take bilaterally.

I am disappointed for the industry and for practitioners that we have not got a mandatory statutory basis as a result of agreeing the amendment before us, but for the moment I beg leave to withdraw the amendment.

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Moved by

[Baroness Scott of Bybrook]

222: Clause 115, page 145, at the end of line 35 insert—
“(1A) The Secretary of State may make regulations under subsection (1) only if the Secretary of State considers that it is appropriate to make the regulations for the purposes of national defence or preventing or responding to civil emergency or significant disruption to the economy of the United Kingdom or any part of the United Kingdom.”Member's explanatory statement
This amendment adds a restriction into the new power to make regulations to provide relief from the enforcement of planning conditions in section 196E of the Town and Country Planning Act 1990 (inserted by Clause 115 of the Bill), so that the power can only be exercised for certain purposes.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

I heard what the noble Lord, Lord Lexden, said in so ably introducing the amendment of the noble Lord, Lord Northbrook. It is certainly a matter of interest to many of us how town centres and peripheral areas can and should be regenerated. Again, I welcome the words of the Minister in commenting on that amendment.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank the noble Baroness, Lady Taylor of Stevenage, for moving the amendment proposed by the noble Baroness, Lady Hayman of Ullock. The Government also appreciate the importance of the interaction between the infrastructure levy and development which is granted planning permission by so-called permitted development. This means, of course, development of a class for which planning permission is granted under the Town and Country Planning (General Permitted Development) (England) Order 2015—SI 2015/596.

As noble Lords are aware, most permitted development rights do not fall within the scope of the existing system of developer contributions. The infrastructure levy aims to capture more value than the existing system, and the Bill has been designed to help achieve this aim. This includes having the ability to capture land value uplift associated with permitted development, subject to provision that is made in the infrastructure levy regulations.

Our recent technical consultation sought views on how the levy could be charged on permitted development to expand the scope of developments for which levy contributions may be sought and allow local authorities to capture more value for infrastructure and affordable housing where currently little or no contributions are collected. It will take time to analyse the technical consultation responses, to undertake further review and consultation, and to develop policy as a result of that, before drafting regulations. However, I accept that this is a matter of considerable importance to the House.

We do not propose to accept the amendment of the noble Baroness, Lady Hayman, which would require a review to be published within 120 days of the Bill being passed. We can instead commit that the Government will publish a report on how the levy will work in relation to permitted development at an appropriate point when the policy is developed. This will set out the interrelationship between the levy and permitted development. The Government will commit to doing this on or prior to the day that the infrastructure levy regulations are laid, so that the interaction between the levy and permitted development can be clearly understood. I hope that, with these clear reassurances, the noble Baroness, Lady Hayman, will be content to withdraw her amendment.

Before I move on, the noble Lord, Lord Stunell, seemed pretty concerned about permitted development rights. He ought to be aware that nationally permitted development rights make an important contribution to national housing delivery. In the seven years to March 2022, they delivered more than 94,000 houses, which represents 6% of the overall housing supply in that delivery period.

We want to make sure that the existing conditions and limitations that apply to permitted development rights and allow for the change of use to residential property are fit for purpose. So far, we have done this and we continue to. As I said, there is an ongoing consultation, which closes on 25 September. Any changes subject to its outcome will be brought forward via secondary legislation.

I move on to Amendment 243. I thank my noble friend Lord Lexden for putting this forward on behalf of my noble friend Lord Northbrook. The amendment seeks to restrict the flexibility of premises within Class E—the commercial, business and service use class—to be used as cafés or restaurants. As a Government, we believe that restaurants and cafés are important parts of our high streets, town centres and other parts of our country, such as towns and villages, and we do not want them to be limited. In addition, the general permitted development order cannot be used to place limits on the operation of a use class. Therefore, once again, we cannot support this amendment.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am grateful to the Minister for her assurances and therefore beg leave to withdraw Amendment 228.

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Moved by

[Baroness Scott of Bybrook]

229: Clause 128, page 158, leave out lines 19 to 22
Member's explanatory statement
This amendment removes subsection (3)(b) of the new section 303ZB of the Town and Country Planning Act 1990, being inserted by Clause 128, which contains a restriction on prescribed bodies from charging fees where the advice, information or assistance is provided to certain excluded persons.

Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, I thank the noble Lord, Lord Lexden, for introducing this group and the amendment in the name of the noble Lord, Lord Northbrook, as well as for drawing our attention to the importance of standards. Clearly, most of the debate has been around the amendments in the name of the noble Lord, Lord Moylan. As we are on Report, I shall be brief and make just two points in response to the noble Lord’s amendments.

First, I point out that Sadiq Khan has explicitly ruled out the introduction of pay-per-mile charging while he is Mayor of London. Secondly, on Amendment 282N, which seems to be the core amendment within the four amendments introduced, our concern is that this includes a loophole for councils to opt out of such schemes. Introducing that loophole undermines the national objective of improving air quality. We think that it risks increasing public confusion and is not in the interests of preventive health and improving air quality.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 242 in the name of the noble Lord, Lord Northbrook, introduced by my noble friend Lord Lexden, would require the Government to make all standards that relate to all planning Acts or local authority planning policy, online and free of charge.

As I think I said in Committee, our national standards body, the British Standards Institution or BSI, publishes around 3,000 standards annually. These standards are a product of over 1,000 expert committees. BSI is independent of government and governed by the rights and duties included in its royal charter. This includes the obligation to set up, sell and distribute standards of quality for goods, services and management systems. About 20% of the standards produced are to support the regulatory framework. This will include a minority of standards made to support planning legislation and local authority planning policy. To ensure the integrity of the system and to support the effective running of the standards-making process, the funding model relies on BSI charging customers for access to its standards. As a non-profit distributing body, BSI reinvests this income from sales in the standards development programme.

My noble friend Lord Lexden asked what the difference is between a regulation and a standard. A regulation provides minimum legal requirements, is written by government and is laid before Parliament. A standard is expert-led and derives its legitimacy through consensus and public consultation. A standard, however, can help demonstrate compliance with legislation. My noble friend also brought up the issue of access in Northern Ireland’s libraries. Interestingly enough, access to British standards is available free in public and university libraries across this country as well, including the British Library, Herefordshire County libraries and the National Library of Scotland. I hope that this provides sufficient reason for my noble friend Lord Lexden, on behalf of the noble Lord, Lord Northbrook, to withdraw the amendment.

I thank my noble friend Lord Moylan for tabling Amendments 282N, 302A, 315ZA and 317, to which I have added my name. He speaks with his characteristic eloquence about the challenges of introducing road user charging schemes in the capital. My noble friend’s experience in these matters is worth repeating. He is a former deputy leader of Kensington and Chelsea Council, a former deputy chairman of Transport for London and a former chairman of London Councils’ city-wide transport and environment committee. My noble friend therefore speaks with unrivalled experience and authority on matters of London’s governance.

My noble friend is entirely correct in his analysis of the differences between the mayoral model followed in London and the combined authority model followed elsewhere in England. He is right to draw attention to the resulting friction that can arise between London borough councils and the mayoralty in London. Regrettably, we have seen a clear display of this during the recent debates on the expansion of the ultra-low emission zones.

As the Government, through this Bill, look to widen and deepen the devolved powers of leaders outside the capital, it is right that we also take stock of how London’s devolution settlement is working in practice. To this end, the Government have committed, through their new English devolution accountability framework, published earlier this year, to review

“how current scrutiny and accountability arrangements in London are operating in practice”,

including

“how the Greater London Authority works and liaises with the London boroughs”.

In addition, the Levelling Up Advisory Council has been asked to examine the strengths and challenges of the capital’s devolution settlement, and a report on that is expected next year. In the meantime, my noble friend’s new clause on road user charging schemes in London provides a targeted, proportionate and wholly sensible correction to the current uneven distribution of power and decision-making between borough councils and the Greater London Authority when introducing ULEZ-style road user charging schemes across the capital. The amendment is entirely in keeping with the wider aims of the Bill to “empower local leaders” and to “enhance local democracy”. As such, I can confirm that, should my noble friend Lord Moylan wish to test the opinion of your Lordships’ House on this matter, he would have the Government’s support.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, the powers introduced by this section amend and clarify powers and procedures for using compulsory purchase and have been extensively consulted on—unlike some other parts of the Bill. The LGA’s view is that the introduction of measures that would genuinely make the CPO process more efficient for councils is an encouraging step, as it has previously lobbied on the need to reduce the time taken to use the CPO, and it also believes that these changes will make the valuation of change in this context closer to a normal market transaction.

In fact, the LGA view is that the Bill could have gone further. It would also like to see the ability to tackle sites which have had planning permission for a long time but which have not been built out through stronger compulsory purchase powers, and the removal of the requirement for permission from the Secretary of State to proceed with a CPO, which would expedite the process for local authorities. Of course, the Secretary of State could always retain the right to call in in circumstances where it would be necessary to do so.

I listened carefully to the noble Lord, Lord Carrington, and the noble Earl, Lord Lytton, and I am sympathetic to the specific issues they raised, particularly the issue about prompt payment for purchases of land. Perhaps I have had an unusual experience of the CPO process but the conditions are already stringent, both in setting out the process for a site qualifying for a CPO and in the requirement for valuation of that site. Therefore, while I appreciate the thinking behind the amendment, it seems that there is already guidance in place—indeed, the amendment refers to it. I look forward to the Minister’s response.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 246, tabled by the noble Lord, Lord Carrington, would place a requirement on the Government to publish by regulations a new duty of care for all acquiring authorities undertaking compulsory purchase. The proposed duty of care would involve obligations on acquiring authorities to acquire only land necessary for their schemes and to mitigate the impacts of their schemes, as well as to pay compensation to landowners at the date of entry or date of vesting and ensure that all communication with claimants is conducted in accordance with government guidance. I reassure noble Lords that the Government understand the concerns behind this amendment. However, the Government consider the proposed duty of care to be unnecessary for the following reasons.

First, whatever the underlying scheme, a guiding principle of compulsory purchase is that acquiring authorities should include within the boundary of a CPO only land which is required to facilitate the scheme. It is for acquiring authorities to demonstrate that there is justification and a compelling case to support the inclusion of land within a CPO boundary. Where they cannot, a CPO is likely to fail.

Secondly, another principle is that the use of a CPO is lawful only providing that acquiring authorities compensate landowners for the loss of their interests, whether the land is acquired following notice to treat or is vested in the acquiring authority. Where an acquiring authority takes possession of land before compensation has been agreed, it is obliged to make an advance payment of compensation to the landowner if requested.

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[Baroness Willis of Summertown (CB)]

My Lords, at an earlier stage of the Bill, I made the case, with others, for amending Clause 158, which concerns the statutory requirement for water companies to upgrade sewage plants to meet new nutrient standards in the areas worst affected by pollution. We welcomed this, but although it was seen as a good step forwards for improving water quality, frustratingly, it specified only that such upgrades should take place at the sewage disposal works themselves, usually meaning traditional engineering systems and solutions, which in themselves relied on concrete materials. Amendment 247, tabled in my name and with the support of the noble Baronesses, Lady Parminter and Lady Jones of Whitchurch, was therefore designed to enable effective use of restored habitats, known in this context as nature-based solutions, by water companies to also meet those standards.

As we pointed out in Committee, those nature-based alternatives can be a really effective and very cheap approach to soaking up nutrient loads and reducing the pollution reaching rivers, as well as providing excellent habitats for biodiversity. Our amendment also had strong support from water companies and Ofwat, but in Committee, the Government’s argument against it was the suggestion that it could somehow let water companies off the hook by allowing them to use such nature-based measures to fudge the delivery of their upgrades. We have therefore brought back this tweaked amendment, in which we have added an explicit requirement for water companies to secure agreement for compliance and investment plans from Ofwat and the Environment Agency before commencing their updates—so we are putting a fail safe in there. We have also included in the amendment the ability for the Environment Agency to impose monetary penalties on water companies for failing to deliver on the compliance and investment plans.

Over the summer, concessions in this area were tabled by the Government, which I really welcome. Those amendments are really positive in principle. However—this is a very big “however”—I fear that Amendment 247 may become very insignificant for the environment if the other government amendments recently introduced into this group are passed. I will therefore briefly speak to those as well. As I am a scientist, I will address the amendments from a scientific perspective rather than addressing their constitutional and legal aspects. In particular, I want to focus on Amendment 247YYA, which amends the habitats regulations to remove controls on nutrient loads in rivers for those that are associated with housing developments.

The amendments are based on the premise that the extra nutrient loading in areas where the relevant houses will be built will be less than 1% of the loading of the existing housing stock. This is where a key piece of evidence is missing: what is the loading of the existing housing stock? The Home Builders Federation would like us to believe that houses contribute 5% of excess nutrient loads in rivers in England compared with 50% from agricultural activities, so it is all the problem of farmers and not of housebuilders.

I quote from the Home Builders Federation:

“It is estimated that all existing development, including residential, commercial and the rest of the built environment, contributes less than 5% towards the phosphate and nitrate loads in our rivers—meaning the occupants of any new homes built would make a negligible difference”.


But the evidence base is, very strangely, lacking: where does that 5% come from? Searching for it leads me to believe that the figure has been extrapolated from a 2014 Defra report, The Impact of Agriculture on the Water Environment: summary of evidence, which was used to inform the 25-year environment plan. The first thing to note is that this report has since been updated by Defra, and the most recent statistics stand as follows:

“Agriculture is the dominant source of nitrate in water (about 70% of total inputs), with sewage effluent a secondary contributor (25-30%)”—


not 5%.

I also looked at other data that could support this level of 5% from the built environment, so I did a search of academic studies that had been published in the peer-reviewed literature in the past three years in similar climatic regions across the world to look at the percentage source of pollution in river catchments that contain a mix of agriculture and urban development. I could not find a single example that suggested a value as low as 5% of the nutrients in rivers coming from housing. One found that, in a large catchment containing seven rivers, 14% of nutrients were from wastewater from residential buildings; in another, it was 33%, and 28% in another. All were significantly higher than the 5% that we have been told is the likely impact. For the UK, a recent assessment by Greenshank Environmental also indicates a far higher nutrient load in rivers from housing, closer to 36%. I therefore urge other noble Lords not to take this 5% figure too seriously.

Worse than this, if Amendment 247YYA goes through, we will never know the true value, since the amendment instructs planning authorities to assume no increase in pollution, prevents them requesting an assessment to investigate pollution further and even goes as far as to instruct authorities to ignore any evidence of potential adverse impacts; for example, as provided by scientific studies or even NGOs. It simply cannot be acceptable to amend one of our key environmental protections like this.

These amendments also fly in the face of the environment statement on the Bill, which says:

“The Bill will not have the effect of reducing the level of environmental protection provided for by any existing environmental law”.


That does not seem to be the case. The Government’s own adviser, and the chair of the Office for Environmental Protection, made this point in a letter to the Government last week.

In conclusion, I will not be supporting these later government amendments. I urge other noble Lords to do the same, not least because in this country we are already dealing with extremely polluted rivers. In February this year, the Environment Agency reported that only 14% of our rivers are classified as being in a good ecological status. It also stated that, without new interventions, this figure will drop to just 6% by 2027. I beg to move.

[Baroness Scott of Bybrook (Con)]

My Lords, with the leave of the House, and to assist noble Lords participating in this debate, I will speak to the government amendments in this group. I will of course address the amendments tabled by noble Lords and the wider debate in my closing remarks.

All the amendments in my name address the major issue of nutrient neutrality, which has effectively stalled or blocked completely housing development in affected areas. For procedural reasons, and agreed in the usual channels, I will treat the tailing amendments—Amendments 247YE and 247YX—as de-grouped.

This issue is hampering local economies, depriving communities of much needed housing and threatening to put the SME builders out of business. Nutrients entering our rivers is a real and serious problem, but the contribution made by new homes is very small compared with that from sources such as industry, agriculture and our existing housing stock. Government Amendments 247A to 247YW cover a range of improvements to our current approach to improving wastewater treatment. These amendments respond to comments and concerns of noble Lords in Committee about more nature-based and catchment-based approaches. I hope they will be welcomed.

I now turn to Amendment 247YYA, mentioned by the noble Baroness, Lady Willis of Summertown, which would require a competent authority to make a reasonable assumption for relevant developments that nutrients from that development will not adversely affect the integrity of the site. The assumption we are asking competent authorities to make is reasonable for two reasons. First, this assumption is limited to the development where the wastewater is treated by a wastewater treatment works or private treatment system regulated under the environmental permitting regulations. This means that nutrient loads in wastewater will remain strictly controlled through the environmental permitting regime, which places legally binding duties on water companies, and through the regulators of the water industry, which are subject to the requirements of the habitats regulations. Secondly, the mitigations that we are putting in place will ensure that there are no additional nutrient loads from residential development.

If we are to take these reasonable steps, we need to amend the habitats regulations in the way our amendments set out. This is a carefully targeted and specific change, aimed only at addressing a disproportionate application of the regulations since the Dutch nitrogen case in the European Court of Justice. Following the findings in this case, since March 2022 housing development in affected catchments has been stalled or blocked—even though new housing contributes such a small proportion of pollution.

In these areas, following the guidance that Natural England was required to issue, development may not be consented unless and until, case by case, house by house, mitigation is in place. This applies even though the additional pollution we are talking about—the additional nitrate and phosphate which remains in the water after domestic sewage is treated—will not get anywhere near the waterways unless the houses not only have planning permission but have been built and occupied.

New development is stalling at the point of planning permission, or even, in many cases, after permission has been granted. It is an absurd situation that is undermining local economies, costing jobs, threatening to put small developers out of business and, above all, leaving communities without the homes that they want and need.

This is not to say that the problem of nutrient pollution in our rivers is unimportant—it very much is—but developers and local planning authorities are bound up in a burdensome and expensive process that does nothing to give certainty to anyone, creating huge opportunity costs. In some catchment areas, hard work by Natural England, environmental groups and developers has started to allow some housing to be consented. However, having listened to the concerns of local communities, local authorities and housebuilders, it is clear that these schemes are moving too slowly, with no guarantee that demand can be met imminently.

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[Baroness Hayman of Ullock (Lab)]

My Lords, I start by thanking the noble Baroness, Lady Willis of Summertown, for her introduction to this debate. It has been a very important debate with some excellent contributions, and I am sure that it has given many noble Lords on the opposite Benches food for thought. I will speak to my Amendment 247YYDA and will oppose certain government amendments in this group.

The current nutrient neutrality rules do not work, as we have heard from noble Lords today, but we do not think that the Government’s proposals work either. We certainly do not agree with the powers being introduced in government Amendment 247YY, or government Amendment 247YYA, which introduces new Schedule 13 and means abandoning legal protections for the nation’s most precious and sensitive habitats, on the premise that this is the only way to increase housing supply. As we have heard from noble Lords, this is completely wrong. It is entirely possible to balance the need for more homes with the need to protect nature. That is why have tabled Amendment 247YYDA, which would establish a process to consider alternative ways to reform nutrient neutrality regulations. Perhaps I can draw the attention of the noble Lords, Lord Best and Lord Moylan, to our proposals.

The amendment would launch a public consultation to consider the alternatives, allowing for an evidence-based approach that the Government’s new schedule completely lacks. Before I expand on how that alternative could be established, I want to explain why we will be opposing the introduction of the government amendments in this group.

Put simply, this change of policy means that developers will no longer need to mitigate harmful pollutants when building in the most environmentally sensitive areas. Noble Lords have made quite clear their concerns about this approach. We believe that the resulting increase in river pollution is a wholly unnecessary price to pay for building the homes that we are in short supply of. We also believe that the way the Government have introduced the amendments has been entirely inappropriate.

As we have heard from other noble Lords in this debate, the Bill has been passing through Parliament for more than 16 months, and yet this policy has been added only at the very last minute, during the final days of Report. It is accompanied, as we have heard, by excessive regulatory powers, which we will oppose, and which, as we have heard, noble Lords on the Delegated Powers Committee, have referred to as “open-ended”. I would not suggest that the word “proportionate”, which the Minister used, was the correct response. What is more, the committee noted that

“there appears to have been no public consultation or engagement with stakeholders prior to the publication of these measures”.

For a group of amendments which the Government claim could cost £230 million—other estimates suggest they would cost far more—no consultation or engagement is, frankly, astounding.

As the noble Duke, the Duke of Wellington, said, but which I think needs repeating, the Office for Environmental Protection has issued statutory advice to say that the measure

“would demonstrably reduce the level of environmental protection provided for in existing environmental law”—

in other words, a regression. We have already heard, and so the House will not need further reminding, that during consideration of the retained EU law Bill the Government repeatedly ruled out ever taking this step. On Monday 26 June, the noble Lord, Lord Callanan, told this House that

“the Government will not row back on our world-leading environmental protections”.—[Official Report, 26/6/23; col. 469.]

However, the Office for Environmental Protection says that this is exactly what is happening. We believe, therefore, that it is wholly inappropriate for this House to agree these amendments to the Bill.

Instead, I urge the Minister to consider the approach that we have outlined in Amendment 247YYDA, which would open up the possibility of nutrient neutrality reform on the basis of consultation and evidence, and through the principle of good law. This is an amendment which has benefited from the input of the Local Government Association, and, I am pleased to say, has the support of Wildlife and Countryside Link. As I mentioned earlier, it would allow for a public consultation on various proposals which have been suggested by other Members of this House and other organisations across the UK. While I will not delve into the various options now, noble Lords will note that proposed new subsection (2) outlines the key alternatives. I also draw attention to the fact that the amendment stipulates that the consultation would launch, be completed and laid before both Houses within three months. I see no reason why the Government cannot provide an evidence-based solution to this Parliament.

It is abundantly clear that there are far better ways to build the new homes we need than at the expense of our precious environment. I hope the Minister will accept our amendment, withdraw the government amendments, and agree that polluting our rivers is not a price we need to pay for sufficient housing supply. If not, as other noble Lords have indicated, we will oppose the government amendments.

[Baroness Scott of Bybrook (Con)]

My Lords, let me conclude this debate by responding to a number of points that have been made, starting with the noble Duke, the Duke of Wellington. I shall not name all noble lords, if your Lordships do not mind, in each response, but those who asked the questions will know who they are, and questions were asked by a number of noble Lords.

I turn first to the question on the views of the OEP. As my right honourable friend the Environment Secretary has set out very clearly in her response to the Office for Environmental Protection, we do not accept that this will lead to regression in environmental outcomes. It is the Government’s judgment that it will not. The reform package will improve the conditions of these habitat sites. The obligations on water companies to upgrade wastewater treatment works in designated catchment areas by 1 April 2030 will far outweigh the nutrients expected from the new housing developments, by putting in place wider upgrades for the long term. These upgrades will benefit existing houses, not just new homes, providing an effective approach to reducing existing wastewater nutrient pollution, not just forestalling the possible future pollution from development. On top of that, we are doubling investment in Natural England’s nutrient mitigation scheme to £280 million, which will be sufficient to offset the very small amount of additional nutrient discharge attributable to the 100,000 homes between now and 2030.

Staying on the OEP, my noble friend Lady McIntosh suggested that the Government broke the law on sewage. We always welcome scrutiny from the OEP, and we are co-operating with it fully to support its work in many areas. The OEP has not concluded that the Government broke the law on combined sewer overflows; it issued an information notice requesting a further response from Defra, Ofwat and the Environment Agency, and is continuing to investigate.

I move on to another issue that the noble Duke, the Duke of Wellington, brought up, as did many other noble Lords: how can we justify asking local authorities to effectively ignore the facts? I dealt with this in my opening speech, but I am going to repeat it.

The assumption we are asking competent authorities to make is reasonable for two reasons. First, this assumption is limited to developments where the wastewater is treated by a wastewater treatment works or a private treatment system regulated under the environmental permitting regulations. This means that nutrients from wastewater will remain subject to the strict legal duties that are binding on water companies and others who operate wastewater treatment systems. These duties are becoming stricter in many affected catchments, thanks to the wastewater treatment work upgrades mandated through the Bill. As I said before, the Government estimate that this will lead to a 69% reduction in phosphorus loads and around a 57% reduction in nitrogen loads in total from wastewater treatment works across all affected catchments, significantly reducing nutrient pollution at source in a principled manner.

Secondly, a package of measures we are putting in place will ensure that we more than offset the additional nutrient flows from new housing. This includes the significant additional investments we are putting into Natural England’s nutrient mitigation scheme. Local authorities will be able to object to planning applications on the basis of nutrient pollution; it is mandatory to consider it. Local planning authorities will still have to consider the impact from nutrient pollution as a material planning consideration, as the amendments made no change to the wider operation of the planning system.

Planning decision-makers will continue to have regard to the national planning policy and material planning considerations, and the Government are clear that the focus of planning decisions should always be on whether the proposed development is an acceptable use of land, rather than the control of processes, where these are subject to separate pollution control regimes. Nutrient pollution from wastewater treatment works is controlled under environmental permits, and planning decisions should assume that these regimes will operate effectively.

Another issue brought up by a number of noble Lords is that the developer should pay. The Government agree. It is essential that housebuilders contribute fairly, and we all agree with the principle that the polluter should pay. We are working with the HBF to structure a fair and appropriate contribution system. My officials are in active discussions with it about the design of these schemes, including considering how they are delivered.

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Moved by

[Baroness Scott of Bybrook (Con)]

247A: Clause 158, page 184, line 21, at end insert—
“(1A) In carrying out the duty under subsection (1), a sewerage undertaker must consider whether nature-based solutions, technologies and facilities relating to sewerage and water could be used to meet the standard.”Member's explanatory statement
This amendment requires sewerage undertakers to consider using nature-based solutions in the course of meeting the nutrient pollution standard.

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Moved by

[Baroness Scott of Bybrook]

247YE: Clause 158, page 189, line 4, leave out sub-paragraph (iv)
Member's explanatory statement
This amendment is consequential on the amendment that substitutes Schedule 13.

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[Baroness Scott of Bybrook (Con)]

My Lords, I beg to move this de-grouped amendment.

Amendment 247YE agreed.

Moved by

[Baroness Scott of Bybrook]

247YF: Clause 158, page 189, line 11, at end insert—
“(c) all catchment permitting areas.”Member's explanatory statement
This amendment is consequential on the second amendment in my name to clause 158 at page 188, line 22.

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Moved by

[Baroness Scott of Bybrook)]

247YX: Clause 159, page 193, line 3, leave out from the first “to” to end of line 4 and insert “make provision about the effect of nutrient pollution in waste water in relation to certain duties and decisions under those Regulations.”
Member's explanatory statement
This amendment, which is consequential on the amendment that substitutes Schedule 13, revises the description of the provision made by Schedule 13.

[Baroness Scott of Bybrook (Con)]

My Lords, I beg to move this de-grouped amendment.

Amendment 247YX agreed.

Moved by

[Baroness Scott of Bybrook]

247YY: After Clause 159, insert the following new Clause—
“Regulations: nutrients in water in England(1) The Secretary of State may by regulations make provision about the operation of any relevant enactment in connection with the effect of nutrients in water that could affect a habitats site connected to a nutrient affected catchment area.(2) The regulations may make any provision which the Secretary of State considers appropriate, including provision that—(a) disapplies or modifies, in relation to a relevant enactment, any effect of nutrients in water;(b) confers, removes or otherwise modifies a function (including a function involving the exercise of a discretion) under or by virtue of a relevant enactment;(c) affects how such a function is exercised, including the extent to which (if any) the effect of nutrients in water is taken, or to be taken, into account; (d) provides for an obligation under or by virtue of a relevant enactment to be treated as discharged (in circumstances where, but for the provision, the obligation may not have been discharged);(e) amends, repeals, revokes or otherwise modifies any provision of a relevant enactment.(3) A “relevant enactment” means—(a) an enactment comprised in or made under an Act of Parliament, or(b) retained direct EU legislation,so far as it relates to the environment, planning or development in England.(4) The enactments referred to in subsection (3)(a) do not include—(a) this section;(b) Part 6 of the Conservation of Habitats and Species Regulations 2017 (S.I. 2017/1012).(5) Neither regulation 9 nor 16A of the Conservation of Habitats and Species Regulations 2017 applies in relation to this section.(6) In subsection (1) “habitats site” and “nutrient affected catchment area” have the meaning given in section 96J(2) of the Water Industry Act 1991; and a habitats site is connected to a nutrient affected catchment area if water released into the catchment area would drain into the site.(7) In this section “nutrients” means nutrients of any kind.(8) The power under subsection (1) may not be exercised after 31 March 2030.”Member's explanatory statement
This amendment confers a power on the Secretary of State to make regulations affecting the operation, in connection with the effect of nutrients in water, of enactments concerned with the environment, planning or development in England.

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Moved by

[Baroness Scott of Bybrook]

247YYA: Leave out Schedule 13 and insert the following new Schedule—
“Schedule 13Amendments of the Conservation of Habitats and Species Regulations 2017: effect of nutrient pollution in waste waterPart 1Introductory1 The Conservation of Habitats and Species Regulations 2017 (S.I. 2017/1012) are amended as set out in this Schedule.Part 2Planning2 Chapter 2 of Part 6 (assessment of plans and projects: planning) is amended as follows.3 In regulation 70 (grant of planning permission), after paragraph (4) insert—“(5) See regulation 85A for provision about the effect of nutrient pollution in waste water.”4 In regulation 71 (planning permission: duty to review), after paragraph (9) insert—“(10) See regulation 85A for provision about the effect of nutrient pollution in waste water.”5 In regulation 77 (general development orders: approval of local planning authority), after paragraph (7) insert—“(8) See regulation 85B for provision about the effect of nutrient pollution in waste water.”6 In regulation 79 (special development orders), after paragraph (5) insert—“(6) See regulation 85A for provision about the effect of nutrient pollution in waste water.”7 In regulation 80 (local development orders), after paragraph (5) insert—“(6) See regulation 85A for provision about the effect of nutrient pollution in waste water.”8 In regulation 81 (neighbourhood development orders), after paragraph (5) insert—“(5A) See regulation 85A for provision about the effect of nutrient pollution in waste water.”9 In regulation 82 (simplified planning zones), after paragraph (6) insert—“(7) See regulation 85A for provision about the effect of nutrient pollution in waste water.”10 In regulation 83 (enterprise zones), after paragraph (6) insert— “(7) See regulation 85A for provision about the effect of nutrient pollution in waste water.”11 After regulation 85 insert—“Decisions where nutrient pollution in waste water is relevant: general(1) This regulation applies where—(a) a competent authority makes a relevant decision,(b) the potential development is development in England,(c) urban waste water from any potential development could affect a relevant site, and(d) that waste water would be dealt with—(i) under an environmental permit granted under Chapter 2 of Part 2 of the Environmental Permitting (England and Wales) Regulations 2016, or(ii) in accordance with standard rules published under Chapter 4 of Part 2 of those Regulations.(2) When making the relevant decision, the competent authority must assume that nutrients in urban waste water from the potential development, whether alone or in combination with other factors, will not adversely affect the relevant site.(3) Accordingly, a potentially adverse effect on a relevant site caused by nutrients in urban waste water, whether alone or in combination with other factors, is not a ground for the competent authority to determine that—(a) an appropriate assessment is required by regulation 63(1) or 65(2), or(b) the potential development will adversely affect the integrity of the relevant site or otherwise have negative implications for the site.(4) The assumption in paragraph (2) must be made even if a finding (however described) to the contrary is made—(a) in the conclusions of an appropriate assessment, carried out in accordance with regulation 63(1) or 65(2) and despite paragraph (3)(a),(b) in representations made by the appropriate nature conservation body, in accordance with regulation 63(3), or(c) by any other person.(5) A competent authority is not to be regarded as having failed to comply with a duty imposed by any provision of these Regulations or another enactment because it has acted in accordance with this regulation.(6) In this regulation—“potential development” , in relation to a relevant decision, means development—(a) that could be carried out by virtue of the planning permission, development order or scheme to which the decision relates, or(b) to which the decision otherwise relates;“relevant decision” means—(a) where any of the following provides that the assessment provisions apply in relation to doing a thing, the decision whether or not to do it—(i) regulation 70 (grant of planning permission),(ii) regulation 79 (special development orders),(iii) regulation 80 (local development orders),(iv) regulation 81 (neighbourhood development orders),(v) regulation 82 (simplified planning zones), or(vi) regulation 83 (enterprise zones),(b) where any of the following provides that the review provisions apply in relation to a matter, a decision under regulation 65(1)(b) on a review of the matter— (i) regulation 71 (planning permission: duty to review),(ii) regulation 79 (special development orders),(iii) regulation 80 (local development orders),(iv) regulation 81 (neighbourhood development orders),(v) regulation 82 (simplified planning zones), or(vi) regulation 83 (enterprise zones);but this does not apply to a matter mentioned in regulation 71(4) (any review of which would be conducted in accordance with another Chapter),(c) a decision on an application for a consent, agreement or approval required by a condition or limitation attached to a planning permission, or specified in an order, granted under Part 3, 7 or 13 of the Town and Country Planning Act 1990,(d) a decision whether to grant a reserved matters approval in accordance with section 92(1) of that Act, or(e) a decision whether to approve a biodiversity gain plan under paragraph 15 (approval of biodiversity gain plan) of Schedule 7A to that Act.Decisions where nutrient pollution in waste water is relevant: general development orders(1) Paragraph (2) applies where—(a) a local planning authority (within the meaning given by regulation 78(1)) makes a decision on an application under regulation 77 (general development orders: approval of local planning authority) for approval as mentioned in regulation 75 relating to proposed development in England,(b) urban waste water from the proposed development could affect a relevant site, and(c) that waste water would be dealt with—(i) under an environmental permit granted under Chapter 2 of Part 2 of the Environmental Permitting (England and Wales) Regulations 2016, or(ii) in accordance with standard rules published under Chapter 4 of Part 2 of those Regulations.(2) When making the decision, the competent authority must assume that nutrients in urban waste water from the proposed development, whether alone or in combination with other factors, will not adversely affect the relevant site.(3) Accordingly, a potentially adverse effect on a relevant site caused by nutrients in urban waste water, whether alone or in combination with other factors, is not a ground for the competent authority to determine that—(a) an appropriate assessment is required by regulation 77(6), or(b) the proposed development will adversely affect the integrity of the relevant site or otherwise have negative implications for the site.(4) The assumption in paragraph (2) must be made even if a finding (however described) to the contrary is made—(a) in the conclusions of an appropriate assessment, carried out in accordance with regulation 77(6) and despite paragraph (3)(a),(b) in the opinion provided by the appropriate nature conservation body, in accordance with regulation 76(4), or(c) by any other person.(5) A competent authority is not to be regarded as having failed to comply with a duty imposed by any provision of these Regulations or another enactment because it has acted in accordance with this regulation. Regulations 85A and 85B: interpretation(1) In regulations 85A and 85B—“nutrients” means nutrients—(a) comprising nitrogen or phosphorus, or(b) comprising compounds of nitrogen or phosphorus;“relevant site” means a habitats site connected to a nutrient affected catchment area;“urban waste water” has the meaning given by regulation 2(1) of the Urban Waste Water Treatment (England and Wales) Regulations 1994 (S.I. 1994/2841).(2) In the definition of “relevant site” in paragraph (1) “habitats site” and “nutrient affected catchment area” have the meaning given in section 96J(2) of the Water Industry Act 1991; and a habitats site is connected to a nutrient affected catchment area if water released into the catchment area would drain into the site.”Part 3Land use plans12 Chapter 8 of Part 6 (assessment of plans and projects: land use plans) is amended as follows.13 In regulation 105 (assessment of implications for European sites and European offshore marine sites), after paragraph (6) insert—“(7) See regulation 110A for provision about the effect of nutrient pollution in waste water.”14 In regulation 106 (assessment of implications for European site: neighbourhood development plans), after paragraph (3) insert—“(3A) See regulation 110A for provision about the effect of nutrient pollution in waste water.”15 In regulation 110 (national policy statements), in paragraph (3)(a), for “and 108” substitute “, 108 and 110A”.16 After regulation 110 insert—“Assessments under this Chapter: decisions where nutrient pollution in waste water is relevant(1) Paragraph (2) applies where—(a) a plan-making authority makes a relevant decision in relation to a land use plan relating to an area in England,(b) urban waste water from the area to which the plan relates could affect a relevant site, and(c) that waste water could be dealt with—(i) under an environmental permit granted under Chapter 2 of Part 2 of the Environmental Permitting (England and Wales) Regulations 2016, or(ii) in accordance with standard rules published under Chapter 4 of Part 2 of those Regulations.(2) When making the relevant decision, the competent authority must assume that nutrients in urban waste water from the area to which the plan relates, whether alone or in combination with other factors, will not adversely affect the relevant site.(3) Accordingly, a potentially adverse effect on a relevant site caused by nutrients in urban waste water, whether alone or in combination with other factors, is not a ground for the competent authority to determine that—(a) an appropriate assessment is required by regulation 105(1) or 106(3), or(b) the proposed use of the land will adversely affect the integrity of the relevant site or otherwise have negative implications for the site.(4) The assumption in paragraph (2) must be made even if a finding (however described) to the contrary is made— (a) in the conclusions of an appropriate assessment, carried out in accordance with regulation 105(1) or 106(3) and despite paragraph (3)(a),(b) in representations made by the appropriate nature conservation body, in accordance with regulation 105(2), or(c) by any other person.(5) A competent authority is not to be regarded as having failed to comply with a duty imposed by any provision of these Regulations or another enactment because it has acted in accordance with this regulation.(6) In this regulation “nutrients”, “relevant site” and “urban waste water” have the meaning given in regulation 85C.(7) In this regulation “relevant decision” means—(a) a decision whether to give effect to a land use plan, or(b) a decision whether to modify or revoke a neighbourhood development plan.””Member's explanatory statement
This amendment substitutes Schedule 13, which amends the Conservation of Habitats and Species Regulations 2017, to provide that certain authorities/bodies (when exercising duties or making decisions relevant to the regulations) must assume that nutrients in waste water from proposed developments will not adversely affect habitats sites.

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Moved by

[Baroness Scott of Bybrook]

247YYB: Clause 160, page 193, line 36, at end insert—
“(3A) Where—(a) the nutrient significant plant referred to in paragraph (1) is a plant that discharges treated effluent into a catchment permitting area (see section 96FA of the Water Industry Act 1991), and(b) the sewerage undertaker has failed to comply with a condition in the environmental permit for the plant imposed in pursuance of subsection (3)(b) of that section,the definition of “excess nutrient pollution” in paragraph (3) is subject to the following modifications.(3B) In a case where the condition relates to the total nutrient pollution discharged by the plant specifically, references in that definition to the “upgrade date” are to be read as the “applicable date”.(3C) In a case where the condition relates to the total nutrient pollution discharged by all plants that discharge into the associated catchment area, that definition is to be read as if—(a) in the words before paragraph (a), after “by the plant” there were inserted “and all other plants that discharged into the associated catchment area for that plant”,(b) in paragraph (a), for “upgrade date” there were substituted “applicable date”, and(c) in the words after paragraph (b)—(i) for “that it” there were substituted “that both it and those other plants”, and(ii) for “upgrade date” there were substituted “applicable date”.(3D) For the purposes of paragraph (3) as modified by paragraph (3B) or (3C), the “applicable date” is to be determined in accordance with section 96FA(6)(a) of the Water Industry Act 1991.”Member’s explanatory statement
This amends the provision to be inserted into the Environmental Damage (Prevention and Remediation) (England) Regulations 2015 by clause 160 so that provision functions in relation to catchment permitting areas, introduced by the second amendment in my name to clause 158 at page 188, line 22.