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.

--- Later in debate ---

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.