Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Wednesday 3rd May 2023 Lords Chamber

All of this and more has led me into thinking about whether this levy is actually going to do what it aspires to, whether it is worth the risks involved and the 10-year timeframe it will take to deliver. But there will be more of that in later groups. We will also probe in a later group how this relates to the crucial area of affordable and social housing. Much more will be said about that, but it has been kicked off well today by the amendments in the name of the noble Lord, Lord Best, which we broadly support.

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

My Lords, I apologise for the length of time that I am going to take, but it has been a very diverse debate about a number of things and some important issues, so please bear with me.

When new development is built, it creates a demand for public services and local infrastructure. The granting of planning permission also increases the value of land. It is important that local authorities can secure contributions from developers to share in the land value uplift that comes from granting planning permission and use this to deliver local infrastructure and affordable housing for communities.

The current system of developer contributions is uncertain and fragmented. The negotiation of Section 106 agreements frequently results in delays in granting planning permission and these agreements can be renegotiated as the development progresses, as we have heard. Local authorities cannot be expected to negotiate as effectively as big developers. The developers can always build elsewhere, which weakens a local authority’s leverage in negotiations. Developers can devote more financial resources to negotiation, out-gunning local authorities. This can generate uncertainty for local communities over how much affordable housing will be available and what infrastructure will be delivered.

Local authorities can also charge the community infrastructure levy, which is a non-negotiable—but optional —charge. Only half of local planning authorities currently charge the levy. Of those that do not, over one-third believe that introducing it would increase their ability to capture land value. The community infrastructure levy is also unresponsive to change in development value as it is charged at a fixed rate per square metre of new development and does not go up in line with house prices. That is why we are introducing the new infrastructure levy; to largely replace the existing system of developer contributions.

The new levy will aim to capture land value uplift at a higher level than the current developer contributions regime by charging rates based on the final value of developments. This should ensure that a fairer price is initially paid for the land by the developer, and then that the developer pays a fairer contribution to the infrastructure and affordable housing. As it is a non-negotiable charge, it should help to reduce delays associated with Section 106 agreements, while maintaining the viability of developments. It will also end the inequality of arms, where local planning authorities must negotiate for affordable housing with developers. The levy will be charged on the majority of types of development, providing opportunities to secure funding for affordable housing and infrastructure from developments that currently contribute very little. I totally agree with the noble Baroness, Lady Warwick of Undercliffe, that the important issue for developer contributions is housing.

The Government recognise that the new infrastructure levy is a significant change and a major undertaking. For this reason, we are taking a “test and learn” approach to its implementation. This will be vital to monitor and test the design of the levy as it works on the ground. This means that, once levy regulations have been developed following Royal Assent, only a small number of local authorities will adopt the levy initially. This “test and learn” approach will allow the Government to continue to work with local authorities, developers and local stakeholders to achieve a system that is optimally designed. We have published a detailed technical consultation, which closes on 9 June, to inform the design of the new levy regulations. We have approached this consultation in a very open manner with the sector, and we really want to listen to, and take on board, the feedback.

I turn to Amendments 290, 324, 335 and 343, tabled by the noble Lord, Lord Russell, my noble friend Lord Greenhalgh and the noble Baronesses, Lady Warwick and Lady Hayman. The amendments relate to the definition of “infrastructure”. I will highlight first the point that the priority for receipts from the new levy will be the provision of infrastructure: affordable housing, schools, GP surgeries, green spaces and transport. This infrastructure is vital to support the local community and mitigate the impact of any new development.

Although I understand the desire for future levy receipts to be spent on a wider range of other important priorities, I must be clear that this will not be an unlimited pot of money and that any other spending will come at the expense of affordable housing and local infrastructure that is needed to directly mitigate the impact of new development. Although we have the ability to allow for some spending on non-infrastructure priorities through the Bill, we recognise that there are important trade-offs here. Through the consultation, we are testing the extent to which we should require local authorities to prioritise affordable housing and infrastructure before unlocking such flexibilities.

Secondly, I will address childcare, which I think everybody in the Committee agrees is exceptionally important—I know that this is a priority for all of us in the House and the other place. It is also a priority for the Government, and I am happy to say that, since Amendment 290 was tabled, the Chancellor has announced transformative reforms to the funding and delivery of childcare, as part of the Spring Budget. By 2027-28, this Government expect to spend in excess of £8 billion every year on free hours and early education, helping working families with their childcare costs. This represents the single biggest investment in childcare in England ever, and it means that eligible working parents of children from nine months old to their start in primary school will all have 30 hours of free childcare per week. I hope that the noble Lord will agree that the Chancellor’s announcement means that it is no longer necessary to try to bolt together the planning system and funding for childcare through the Bill.

I make it clear to the noble Lord, Lord Russell, that guidance for applications for free schools already includes explicit assumptions that any new free schools will include proposals for nurseries. Therefore, education investment in a possible new development will include a nursery, unless there are very strong reasons why this would be inappropriate. So the Government are dealing with the issue of ongoing support for childcare and, at the same time, there is already in guidance the necessity for more nursery places where houses are built.

I turn to infrastructure spending more broadly. New Section 204N(3) provides a non-exhaustive list of kinds of infrastructure, which assists with broadly understanding what the levy might be spent on. But spending is not restricted to any of the listed items: the levy can be spent on any infrastructure that supports the development of an area. This means funding the provision, improvement, replacement, operation or maintenance of infrastructure, provided that this in accordance with the overall aim of the levy, as set out in new Section 204A. To strengthen infrastructure delivery, new Section 204Q requires local authorities to prepare “infrastructure delivery strategies”, which will set out a strategy for delivering local infrastructure and spending levy proceeds.

[Baroness Taylor of Stevenage (Lab)]

Where do the infrastructure delivery strategies sit in terms of the local plan process? The noble Baroness, Lady Thornhill, referred to this. What role will they play in relation to NDMPs? It is not clear from the legislation exactly how they fit in with the rest of the planning process, and it is important that either the Bill sets that out or we have guidance elsewhere—for example, in the National Planning Policy Framework—that makes it crystal clear where those strategies sit.

[Baroness Scott of Bybrook (Con)]

I understand that, and I will write to the noble Baroness to explain this completely. I know that this is confusing because the NPPF has not been agreed, so I understand where she is coming from and I will make sure that we send her a letter.

Turning to Amendment 324, I agree with my noble friend Lord Greenhalgh that the emergency and rescue services should be among the infrastructure providers that are able to receive levy funds from local planning authorities. For this reason, they are already included in the illustrative list of infrastructure in new Section 204N(3), which makes it explicit that levy funds can be applied towards

“facilities and equipment for emergency and rescue services”.

We do not provide detailed definitions across all kinds of infrastructure, as this is not necessary. The words used must be given their natural and common-sense meaning—so “infrastructure” too must be given its ordinary meaning. I have stated that it can encompass matters not listed in new Section 204N(3).

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[Lord Greenhalgh (Con)]

I really appreciate that response, but the emergency services replied to the letter from the Housing Minister with a way forward. They are very concerned that the existing community infrastructure levy and Section 106 system is not working. Although, as the Minister pointed out, emergency services are mentioned in the schedule, the principal concern is how the historic system works, as it will take up to a decade for the new system to come into play. Will the Minister respond to the latest representations, so that we can agree a way forward?

[Baroness Scott of Bybrook (Con)]

I completely understand my noble friend’s issue and, as I have said, we are very happy to have a meeting to look at what can be done in the existing system. We know what is going on with the proposed system, but I understand the issues and we will meet further on this with the emergency services.

Turning to Amendments 331 and 346, I thank the noble Lord, Lord Shipley, for speaking on behalf of the noble Baroness, Lady Pinnock, and my noble friend Lord Greenhalgh for tabling these amendments. I agree that ensuring that development is accompanied by the timely provision of the right infrastructure is important to local communities where development is taking place. However, requiring a full payment of the levy up front would impact the viability of development and result in fewer homes, and therefore fewer affordable homes, being delivered. Large developments can be built out over periods of a decade or more, and it is not necessary for all mitigating infrastructure to be delivered in the early stages of that development.

[Lord Thurlow (CB)]

The viability of development, particularly larger schemes, does not put the developer’s position at risk. The increased costs of—in this case—the infrastructure levy come out of the value of the land: in other words, the landowner, who, at the stroke of a pen in a local authority, has seen their agricultural field, for want of an example, rise from £4,000 or £5,000 an acre to £750,000 an acre. That is where the loss of value will occur—in the simple viability of a large development.

[Baroness Scott of Bybrook (Con)]

I thank the noble Lord for that. As I said, large developments can take a decade or more to build out and we do not want to build infrastructure, only for it to stand idle for a long time. This would increase costs for developers, reducing the amount of money that can therefore be put towards other infrastructure and affordable housing, without generating additional benefits for the communities. I agree that infrastructure must be delivered in a timely way, but that means neither too early nor too late. I will turn in a moment to the powers in the Bill that will allow this.

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[Lord Shipley (LD)]

First, I am very grateful for the very lengthy reply the Minister has given us. I listened very carefully to all she said, but could she confirm that the new system, which she referred to as a “long-curve transformation programme”, will actually end up building more affordable homes? That seems to me to be a central requirement of the infrastructure levy. I seek her confirmation that the outcome of all she has just said will be that more affordable homes will be built in this country.

[Baroness Scott of Bybrook (Con)]

What we have said is that this will deliver no fewer affordable homes. Of course, the number and type of affordable homes that are built will be a local decision. If local authorities want more homes—I suggest that we need more homes in this country—we should be able to deliver more homes.

[Baroness Taylor of Stevenage (Lab)]

I thank the Minister from our side for the very detailed response she gave to all the contributions that have been made. In response to the question from the noble Lord, Lord Shipley, we have a further group on this, so I am sure we will debate it further in the course of that group. The combination of the lack of clarity around what the new infrastructure levy is going to deliver in affordable housing and the removal of housing targets looks like a terrible contribution. I know the Minister said that this would not mean fewer affordable homes, but the number that have been built in the last few years is woeful. We want that to improve; we want to get more affordable housing out of this. I know we will discuss this again in a subsequent group, but it is really important. I hope we can get some clarification in that group about how this new infrastructure levy system is going to help us deliver the affordable homes that we all know we need.

[Baroness Scott of Bybrook (Con)]

This is about not just the new infrastructure levy but the whole Bill. We know that where local authorities have local plans, they build more houses. The Bill is there to enable and encourage local authorities to have local plans. It is the combination of all these things within the Bill that should deliver more houses.

[Lord Russell of Liverpool (CB)]

Well, my Lords, time certainly flies when you are talking about local government. I pay tribute to the stamina of the many people here who have a background in local government. I also congratulate them because I think this is the first time I have heard a debate on local government where about five people have not popped up, one after the other, and stated that they are a vice-chair of the Local Government Association. Eureka—we seem to have got away from that. I do not know whether the Minister is grateful to the Government Whips’ Office for putting such a compact group of amendments together; maybe it is an efficient way of dealing with this. I pay tribute to her for her stamina, for being on her feet for nearly 50 minutes and for being as detailed as she has been. I think all of us genuinely appreciate that. She deserves lunch really quite soon.

I thank the noble Lords who spoke specifically about my Amendment 290. Your Lordships will be relieved to hear that I am not going to go into detail on any of the other amendments. What I would like to come back to is the fact that I think all of us who are concerned about the level of provision of childcare services would really appreciate a detailed letter which very explicitly says what is covered, what is completely clear and what may be slightly less clear. We are in a situation where it simply is not working at the moment.

If we are going to get value from the Chancellor’s huge expansion in free childcare services, we have to be sure that we have enough places to put the children in, in the right places. We also need to be completely clear that we need both capital funding, where it is required to ensure that we have new childcare facilities, and funding to actually make it possible for them to be run. Part of that is about ensuring that the fees charged cover the costs and, in most cases, leave a degree of profitability for those services—most of which are private —otherwise they will continue to go out of business. We would be most grateful if we could have a really detailed response on that.

I am sure other noble Lords will follow up on their amendments as well. Again, I thank the Minister for the length and thoroughness of her response. I beg leave to withdraw my amendment.

Leasehold Enfranchisement

Baroness Scott of Bybrook Excerpts

Tuesday 2nd May 2023 Lords Chamber

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

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I declare my interests as set out in the register and the fact that I am a leaseholder.

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

My Lords, we are committed to making enfranchisement simpler and cheaper for leaseholders. We will abolish marriage value, cap the treatment of ground rents in the enfranchisement calculation and prescribe rates to be used, saving some leaseholders thousands of pounds. An online calculator will also be introduced to make it simpler for leaseholders to find out how much it will cost them to enfranchise. We are due to bring forward further leaseholder reforms later in this Parliament.

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

My Lords, there is a specific problem with any lease extension granted in blocks of flats after 14 February 2022, as they are not protected by the Building Safety Act 2022. When will that be put right? Secondly, the Minister will have seen the interview her predecessor—the noble Lord, Lord Greenhalgh—gave to the Leasehold Knowledge Partnership on 14 April, which raised grave doubts about the promised leasehold reform Bill being in the King’s Speech. Does she understand the concern and worry that has caused leaseholders, and will she bring those worries and concerns to the attention of the Secretary of State?

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[Baroness Scott of Bybrook (Con)]

My noble friend—or, rather, the noble Lord opposite; the number of times he brings this Question means I think of him as a friend —is quite right that, if you are a qualifying leaseholder and extend or vary your lease, you may surrender your existing lease and be granted a new lease. As the new lease will not have been granted before 14 February 2022, the statutory leaseholder protections in the Building Safety Act will not apply. We are looking to legislate to resolve this issue as soon as parliamentary time allows. In the meantime, before seeking a new extended or varied lease, leaseholders should seek legal advice and seek to come to agreements with landlords to apply the same protections as contractual terms.

I am very sorry, but I did not answer the second question. He asked whether I would bring the letter to leaseholders from the noble Lord, Lord Greenhalgh, to the attention of the Secretary of State. I have already done so.

[Lord Young of Cookham (Con)]

My Lords, further to the Answer which my noble friend has just given to the noble Lord, Lord Kennedy, will the protection to which my noble friend has just referred be retrospective so those leaseholders who extended their leases after February last year will get the protection she referred to?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend for that question. As I say, we are looking at how we can protect it. On whether it is retrospective or not, I will have to write to my noble friend.

[Lord Naseby (Con)]

Is my noble friend aware that the general tenor of the Answer she has given this afternoon is enormously welcome and a demonstration of the statements made in the last 12 months that our Government believe in not only modernising leasehold but the whole structure of the housing market in the United Kingdom?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend for that question—or statement, I think. Yes, we have made it very clear all along, in answering every question that I have been asked at this Dispatch Box, that we are going to bring forward further leasehold reform and it will be in this Parliament.

[Baroness Thornhill (LD)]

My Lords, my recent experience of helping leaseholders in a retirement block near me leads me to ask: does the Minister accept that going to the final arbiter of leasehold disputes, which is the First- tier Tribunal, is a long, off-putting, expensive, complex process? Can she reassure us that, when the renters reform Bill finally arrives, it will address this unsatisfactory service which, I can bear testimony to, really is a serious detriment to leaseholders seeking fair treatment?

[Baroness Scott of Bybrook (Con)]

Certainly, we will be looking at the First-tier Tribunal issue, as we will be looking at all issues, when we get to the leaseholders Bill and the private renters reform Bill.

[Lord Berkeley (Lab)]

My Lords, when this new legislation gets published, can the Minister ensure that the exemptions on certain pretty ordinary houses on the Isles of Scilly, which the Duchy of Cornwall has opposed for so many years, will be included and they will be able to buy their leases like everybody else? I would have mentioned it to His Majesty this morning, but my train was late.

[Baroness Scott of Bybrook (Con)]

I thank the noble Lord for that question. I am afraid I cannot tell him whether the few cottages on the Isles of Scilly that he refers to will be covered, but I am sure he will ask further questions during the passage of that Bill.

[The Earl of Devon (CB)]

My Lords, over 20 years ago we introduced the law of commonhold, and I think I contributed to a textbook on the subject as a junior barrister. In the years since, I think only about 20 commonholds have been established. I know the Law Commission looked at this a couple of years ago, and commonhold is designed to be a better alternative to leasehold without the complications. Can the Minister explain what is happening to update commonhold and to encourage the adoption of it?

[Baroness Scott of Bybrook (Con)]

The noble Earl brings up a very interesting point. Commonhold, as he knows, allows home owners to own the freehold of a unit, such as a flat, within buildings and it is commonplace in places such as Australia, New Zealand, the US and Canada. Unlike leasehold, commonhold does not run out, there is no third-party landlord and owners are in control of the costs and decisions affecting the management of their buildings. Commonhold was introduced in this country in 2002, but for some reason it has not taken off and, as the noble Earl says, there are currently fewer than 20 commonhold developments. In 2020, the Law Commission recommended reforms to reinvigorate commonhold as an alternative to leasehold ownership, and the Government are looking at this and will respond in due course.

[Baroness Altmann (Con)]

Would my noble friend agree that, with the shortage of leasehold properties and the extensive number of good landlords that there are across the country, it is important, when we have the new legislation, to ensure that not only are tenants protected—because of course, rightly, they must have protection in their own homes—but we are careful about the balance around putting too much burden on landlords to the extent that we may drive good ones out of the market? I declare my interests as set in the register.

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right: this is a balance. There are a lot of exceptionally good landlords in this country, but there are a few that are not good—in fact, you could probably call them rogue. It is important that whatever legislation we put through gets that balance right, protecting tenants and good landlords but ensuring that we get rid of those rogue landlords.

[Baroness Warwick of Undercliffe (Lab)]

Does the Minister recognise the distress and anxiety caused to leaseholders and, indeed, the degree of uncertainty that still exists? Could she explain to us why the opportunity was not taken in the levelling-up Bill to include leaseholders? They are signally not included in it, and so many other things are.

[Baroness Scott of Bybrook (Con)]

It is very simple: the leasehold Bill was already in production when LURB came in. It is a very complex Bill and the issues in it need their own legislation; it will be here before the end of the Parliament.

[Lord Greenhalgh (Con)]

It has been very helpful to hear the assurance that we will see leasehold reform before the end of this Parliament, but could my noble friend push to have the Bill published? It is going to be very complex, with issues around enfranchisement, the right to manage and encouraging and reinvigorating commonhold. Can we publish the Bill so that we can begin the pre-legislative scrutiny as soon as possible?

[Baroness Scott of Bybrook (Con)]

We have had this question before, but I can tell my noble friend that we are trying to get the Bill here. We have a short period of time, it is a complex Bill and—I am going to be totally honest with noble Lords—it will not get here for pre-legislative scrutiny, but we will get it in shortly.

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

My Lords, can I just be absolutely clear? Are we definitely going to get this Bill in the next Session of Parliament, without a doubt?

[Baroness Scott of Bybrook (Con)]

Does the noble Lord want me to repeat it? I shall not waste time—but, yes.

Voter Authority Certificates

Baroness Scott of Bybrook Excerpts

Tuesday 2nd May 2023 Lords Chamber

[Lord Rennard]

To ask His Majesty’s Government what assessment they have made of (1) the number of registered electors who have acquired Voter Authority Certificates, and (2) the effectiveness of the scheme in practice.

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

My Lords, over 89,500 applications have been received for voter authority certificates. The Government have never had a target for applications and are pleased with the initial rollout. A three-stage evaluation will begin after May’s elections, seeking to understand how the policy measures are implemented and their impact on electors and election staff. Publication of the first review is expected in November 2023, with further reviews after each of the next UK general elections.

[Lord Rennard (LD)]

My Lords, the Government estimated that around 2 million people who are on the electoral register do not have one of the forms of photo ID required this year. Around 1.6 million of those people have elections on Thursday—but the figures show that more than 1.5 million do not have the local authority certificate and will be unable to vote on Thursday, unless by any chance they have acquired another form of photo ID in the meantime. So perhaps 1.5 million people could be denied their vote. Is the spending of £180 million of taxpayers’ money over 10 years a successful investment for the Conservatives if it blocks this many people from voting?

[Baroness Scott of Bybrook (Con)]

My Lords, there are multiple reasons why voters have chosen not to apply for a voter authority certificate at this time. Not everyone will have elections in their area, for a start, and not everyone will choose to vote in a polling station. Those who vote by post or by proxy will not need voter identification and therefore have no need to apply for a VAC. While we would not seek to predict turnout on 4 May, in previous local elections over the past decade a significant proportion of votes have been cast by post. For example, in the May 2022 local elections, postal votes comprised 38% of overall turnout and proxy votes a further 1%. We also have to accept that, while we hope that every elector takes part in the democratic process, this is simply never going to be the case and many will choose not to vote. The cost of this is £2.42 per elector over a 10-year period.

[Lord Cormack (Con)]

My Lords, does my noble friend not agree that the best form of voter authority certificate would be an identity card? Will she also reflect on her own remarks about postal voting? Where there has been manifest corruption in recent years, it has been not at the ballot box in the station but among postal voters.

[Baroness Scott of Bybrook (Con)]

The discussion about ID cards is a whole new question that I do not intend to go into. As for postal votes, the Elections Act 2022 contains further measures on postal votes to secure that vote.

[Lord Grocott (Lab)]

My Lords, if I heard the Minister correctly, she said there would be a review this autumn on these local election results and another review after the next general election and so on. What is the point of a review if things will continue to go on as if nothing has happened, no matter how bad the election was in terms of voter turnout? Surely, what is required if the review shows a drop in voter turnout is not another review but an abandonment of the whole policy.

[Baroness Scott of Bybrook (Con)]

I do not think it is an abandonment of the whole policy. We expect the Electoral Commission, as an independent regulator, to provide some analysis and some early, interim reports on the May elections some time this summer. We will learn from that and, if any changes need to be made, we will consider those changes.

[Lord Pannick (CB)]

Will the Government ensure that adequate, accurate records are kept of the number of potential voters who are turned away because of inadequate documents?

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[Baroness Scott of Bybrook (Con)]

Yes, my Lords; it is in legislation that local authorities will count the numbers, anonymously, of electors who are turned away and we will look at those and at all the other evidence from the electoral returning officers when we look at how this has worked.

[Lord Forsyth of Drumlean (Con)]

Does my noble friend have any idea why the opposition parties should be against ensuring that the ballot is properly conducted and secure?

[Baroness Scott of Bybrook (Con)]

No, I do not, because it was the Labour Party, supported by the Liberal Democrat Party, that agreed in 2003 to Northern Ireland having a similar system. They voted for it and I cannot understand why they are not voting for it this time.

[Baroness Hayman of Ullock (Lab)]

My Lords, we have heard about the review, but the review has to be meaningful, otherwise it is pointless. So, given that the Minister has previously stated that this will consider evidence from polling stations, what exactly will that evidence include, what steps have been taken to prepare for it and what guidance has been given to electoral staff?

[Baroness Scott of Bybrook (Con)]

Both the Electoral Commission and the Government have been working with electoral staff continuously since the Act came in. What will be collected at polling stations will include the numbers and the reasons why electors have been turned away, if they have, whether they returned and whether they voted later, as well as other aspects of the policy. This will just be adding to what they would normally collect in a polling station.

[Baroness Taylor of Bolton (Lab)]

My Lords, will the Minister take this opportunity to apologise for those Conservative leaflets that have been distributed in Norwich and other places, specifically telling people that they do not need ID to vote?

[Baroness Scott of Bybrook (Con)]

As a Norfolk resident, I have taken that issue forward.

[Baroness Hussein-Ece (LD)]

My Lords, is the Minister aware that there seem to be different restrictions in different local authorities before they issue ID cards? I had a message from someone who had been on the electoral roll since 1999. They were initially denied a certificate and had to go back with four different proofs of ID before the authority agreed to issue one. Is this normal practice, and will she look into it?

[Baroness Scott of Bybrook (Con)]

It does not sound like normal practice. If the noble Baroness would like to give me some further details, I will look into it. I cannot discuss an individual case.

[Lord Hayward (Con)]

My Lords, I take this opportunity to thank noble Lords on all sides who supported the passage of the Ballot Secrecy Act, which was given Royal Assent a few moments ago. Further to this particular Question, can I ask my noble friend to re-emphasise the fact that those people who return, having previously been refused the ballot, will be recorded as well, so that there will be a clear record not only of those who are turned away but who return?

[Baroness Scott of Bybrook (Con)]

Yes, I am happy to repeat that: those who return with voter ID will be recorded.

[Lord Reid of Cardowan (Lab)]

My Lords—

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[Lord Reid of Cardowan (Lab)]

That scheme was unilaterally abolished by the Liberal Party when they were in the coalition. They are the very same people who are now crying out for some decent method of identification. It is the only way to make sure that there is no impersonation in voting.

[Baroness Scott of Bybrook (Con)]

My Lords, I do understand what happened in Northern Ireland in 2003. Let us get it right. Personation in polling stations is very difficult to identify and prove. By definition, it is a crime of deception. If you listen to the people of Northern Ireland, you will hear that they are more satisfied with their voting system than people in this country. We should allow our residents to be as satisfied with ours. If you look at what comes from polling, you will see that two out of three people in this country would feel more confident in the voting system if there were photo ID.

Housing: Overcrowding

Baroness Scott of Bybrook Excerpts

Tuesday 25th April 2023 Lords Chamber

[Baroness Warwick of Undercliffe]

To ask His Majesty’s Government what assessment they have made of the National Housing Federation’s report, Overcrowding in England, published on 19 April; and, in particular, its finding that one in six children lives in ‘overcrowded conditions’.

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

The Government are committed to reducing overcrowding by increasing the supply of affordable housing and enabling councils and other social landlords to make better use of their existing homes. We are also consulting on changes to the NPPF to make clear that local authorities should give greater importance to social housing in planning decisions. The current legislative framework maintains that statutory reasonable preference requirements must ensure that social housing is prioritised for those who need it most, including for those in overcrowded housing.

[Baroness Warwick of Undercliffe (Lab)]

I thank the Minister for that reply but does she accept that the National Housing Federation’s research has exposed the dire levels of the housing crisis in England? Some 2 million children are forced to live in cramped and overcrowded conditions, with no personal space—that is one in six children. Households from ethnic-minority backgrounds are three times more likely to be affected by overcrowding. There is a general recognition that the leading cause of overcrowding in England is the chronic shortage of social housing, as the Minister has I think acknowledged. Funding for social rent remains at an all-time low. The lack of any funding for regeneration has made investment in existing homes nigh impossible. Does the Minister agree with the National Housing Federation that a long-term, national plan is required to drive up the number of appropriate, affordable homes across England for families right round the country?

[Baroness Scott of Bybrook (Con)]

Obviously the Government are concerned about overcrowded houses around the country and the report that came out, but I can tell noble Lords what the Government are doing. Now, as we sit here, we have an affordable housing fund of £11.5 billion, and we are putting more priority on using that fund for houses for social rent. The £500 million local authority housing fund is also going out now, to build houses in the next two years where local authorities are under extreme pressure for social housing. As I say, for the future, we are changing the NPPF to ensure that social housing takes a higher priority when local planning authorities are looking at their local plans and prioritising houses for social rent.

[Lord Naseby (Con)]

Is it not a fact that, over the last five years, there has been a steady decline in social housing? Against that background, will my noble friend look again at this issue and put some drive behind new towns, new cities and new garden cities? Those organisations have relieved a great deal of overcrowding in our cities throughout the United Kingdom and have provided decent housing for families to live in, for the future.

[Baroness Scott of Bybrook (Con)]

This is a subject that my noble friend brings up quite often. As I have said, we will continue to look at every solution to the problem of more houses in this country.

[Baroness Thornhill (LD)]

My Lords, for me, the key issue is the lack of suitable homes for people to upsize to at a rent that they can afford. Will the Government please reconsider unfreezing the local housing allowance to help some families, especially those in the private sector, to upsize and get out of those conditions?

[Baroness Scott of Bybrook (Con)]

We have no plans to do so at the moment but I will keep the noble Baroness and the House aware of any that we might have in the future.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am grateful to the National Housing Federation for its excellent report highlighting this crucial issue, and to my noble friend Lady Warwick for her tireless work on housing. The level of overcrowding highlighted by the NHF is one of the strongest indicators of the woeful state of housing in this country and the shameful record of this Government, with only 6,000 social homes built last year and 2 million families on waiting lists. The recent decision to abandon housing targets has exacerbated the housing crisis and will worsen the issue of overcrowded properties. Given that planning applications in England are now at a record low, will the Minister bring forward amendments to the levelling-up Bill to put the targets back into law?

[Baroness Scott of Bybrook (Con)]

I thank the noble Baroness. We have had this debate on a number of occasions throughout the LUR Bill, and I am sure we will have this discussion again. We are clear that we are looking at the NPPF into the future, but it is up to local planning authorities to decide on the types of housing that they are going to put into their local plans and how many. We feel that, with the new changes in the LURB, local plans will be easier to produce and there will be more of them, delivering more housing for this country.

[Lord Young of Cookham (Con)]

My Lords, the research to which my noble friend referred showed that the families most likely to suffer from overcrowding are families already in the social housing sector, but they cannot move because there are no larger homes to move to and they cannot afford to rent. In the medium term, should the social housing sector not be building more, larger houses? In the short term, should housing associations and local authorities consider leasing larger homes from the private sector in order to mitigate the problems to which my noble friend referred?

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right. If you have anything to do with local housing, you will realise that there seem to be many more one-bedroom and two-bedroom properties than there are family homes. We recognise the challenge faced by the sector, and that is why we encourage local authorities to continue to consider innovative ways in which they can best use their stock. For example, supporting underoccupiers to transfer to other, smaller properties is one way that they can then relet family homes. Landlords are focused on providing high-quality services to all their tenants. Introducing a new requirement for local authorities to lease larger homes in the open market may also be considered a new burden, for which funding would be unlikely to be provided.

[Lord Sahota (Lab)]

My Lords, as has already been mentioned, the report firmly states that ethnic-minority households are three times more likely to be overcrowded than white households. Have the Government taken note of that? What do they intend to do to specifically rectify the problem for ethnic minorities?

[Baroness Scott of Bybrook (Con)]

My Lords, interestingly, in December 2022, we published our report Overcrowding in South Asian Households, to provide a deeper understanding of the issues faced by those from South Asian backgrounds. The study puts Bangladeshi and Pakistani households at the centre of a piece of research, including their perceptions of their living situations and cultural drivers. This is the first time that overcrowding has been studied in that way, and our findings are used to develop culturally sensitive policies on overcrowding and housing more generally. This came from an English Housing Survey that indicated that British Bangladeshis and Pakistanis were particularly affected by overcrowding.

[Baroness Berridge (Con)]

My Lords, I know a number of families in London who are affected by significant overcrowding, and obviously one of the options for them is to leave London. Will my noble friend the Minister please talk to her colleague at the Department for Education, as there are reports that the school-places situation in London is going to be affected by the fact that families are now moving out of the capital? It might cost more money to build school places elsewhere in the country than to adopt the solution suggested by my noble friend Lord Young, which is to rent from the private sector three-bedroom and four-bedroom properties here in London.

[Baroness Scott of Bybrook (Con)]

I am aware of some of those issues, some of which came from Covid and people moving out at that time. I do not know the answer to the questions that my noble friend raises on the education side, but I will ask my colleagues in the Department for Education and will write to her.

[Lord Grocott (Lab)]

My Lords, the myriad issues that arise on housing provision are very serious indeed. The solution might be expensive but it is not complicated —virtually every questioner today has pointed to the lack of supply of social housing. The stats are very simple: the availability of social housing in the last two or three decades has pretty well halved, while much more expensive, private accommodation has pretty well doubled. Can the Government just focus on this one, simply stated issue, as we desperately need a huge expansion of the level of provision of social housing?

[Baroness Scott of Bybrook (Con)]

That is why, as I have already said, we are putting £11.5 billion into the affordable housing fund, more of which is going to be prioritised on social houses for rent. We are also looking at changing the National Planning Policy Framework in order to increase the importance of social housing. We are encouraging local authorities, in drawing up their local plans, to consider not just affordable housing but social housing for rent. We have just put £500 million into the local authority housing fund to help in the short term.

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.

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[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.

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[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.

--- Later in debate ---

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.

--- Later in debate ---

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. 

--- Later in debate ---

[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.

--- Later in debate ---

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.

--- Later in debate ---

[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”.

Supported Housing (Regulatory Oversight) Bill

Baroness Scott of Bybrook Excerpts

2nd reading
Friday 21st April 2023 Lords Chamber

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

My Lords, I thank my noble friend—he is not really my noble friend, but he is my noble friend—Lord Best for those kind words. There was no way that I was not going to be here as the Minister to support this Bill because, for me, it is one of the most important Bills we have seen coming through for quite a long time. I thank him for introducing the debate and congratulate him on the sponsorship of what, as I said, is an extremely important Bill. I thank other noble Lords for their support of the Bill today which, I am pleased to say, the Government are also supporting.

I also thank and pay tribute to my honourable friend the Member for Harrow East for his tireless work in making sure that the very important matter of poor-quality supported housing is now placed before this House.

I will begin by setting out the context for the measures contained in the Bill. Supported housing is home to some of the most vulnerable members of our society. People with disabilities and mental ill-health, survivors of domestic abuse, older people and people experiencing homelessness all rely on this important type of housing. Supported housing is more than just a home: it also plays a vital role in delivering better life outcomes and greater independence to those in need by providing care, support and supervision alongside accommodation.

Many excellent providers of supported housing operate in this sector, but I am very sorry to say that there are also rogues. These unscrupulous people are exploiting the system to the detriment of the very vulnerable people it is supposed to support, and at considerable cost to the taxpayer. Let us not forget that the financial benefit gained by these rogues rests on abusing the rules in housing benefit. Ministers at the Department for Work and Pensions agree that it is totally unacceptable that large amounts of public money are being paid out in housing benefit to fund this poor provision.

Before I go on to the Bill itself, I will briefly set out the action that the Government are taking to tackle the issues of poor quality in the supported housing sector. In October 2020 we published the national statement of expectations setting out the Government’s vision for the planning, commissioning and delivery of good-quality accommodation in supported housing. We also launched the supported housing pilots—which I think the noble Baroness, Lady Walmsley, brought up. Between October 2020 and September 2021, we funded five local authorities with a total of £5.4 million to explore ways of improving quality and value for money in the sector, particularly in exempt accommodation.

We published the independent evaluation of the pilots in April 2022 and have continued to build on the success of this initiative. Our ongoing supported housing improvement programme is backed by £20 million of funding and is helping 26 local authorities tackle quality issues in some of the most affected areas of the country, but we realise that we must go further. The evaluation of the pilots was clear that without providing additional powers to local authorities, our ability to fix these issues is limited. That is why the Government announced their intention to regulate the supported housing sector in a Written Ministerial Statement in March last year.

This Government’s priority is to protect the welfare of their most vulnerable citizens, and the Bill includes powers to bring in the crucial regulation that is required. We are determined to drive up quality in supported housing and drive out unscrupulous providers. Driving up standards is critical given the harmful consequences that the worst of this appalling accommodation can have for the vulnerable people living there and the damaging impacts we have seen on communities blighted by anti-social behaviour.

I will now move on to the measures set out in the Bill. The supported housing sector is increasingly complex, cutting across tenures, including both social housing and private housing supplied by charities and voluntary bodies. Given this complexity, it is right that the Government should seek information and advice about supported housing from experts. The Bill therefore creates an advisory panel, which will be established within a year of the Bill becoming law.

During the passage of the Bill in the other place there was much discussion of the paucity of data available to government on supported housing, and we have heard that again today, particularly from the noble Lord, Lord Khan of Burnley, and the noble Baroness, Lady Walmsley. We recognise the lack of data on supported housing; it is crucial that we make improvements in this area. I am pleased to say that we already have research under way to provide an estimate of the size, and importantly the cost, of the supported housing sector across Great Britain, as well as estimates of future demand. The Department for Work and Pensions has also made changes to its systems to improve the data it holds on housing benefit claims.

In addition to those measures, the Bill places a new duty on local housing authorities in England to produce supported housing strategies. These strategies will assess the current provision of supported housing and will require authorities to forecast future need in local communities. The more information and data we have, the better-informed decisions we can make about supported housing now and into the future.

For the first time, there will be a set of national standards for support: the national supported housing standards. Currently, the only requirement set out in housing benefit case law is that the support being provided is “more than minimal”—this is simply not good enough. These national standards will cover the type and quality of accommodation being used to deliver supported housing, as well as the quality of support that residents receive. The standards will apply to all supported housing providers in England and will be enforced through local authority-led licensing schemes. Licensing will apply to districts designated by either the Secretary of State or the local authority.

The Bill also sets out what conditions will need to be met in order to obtain a licence. These may refer to the standard and the use of the accommodation, the requirement for a support needs assessment, the provision of care, support and supervision, as well as meeting the national standards. Penalties will rightly apply where licensing conditions are not met, or where supported housing is operating without a licence in a designated licensing area. Powers in the Bill allow us to make provision for offences and penalties in the licensing regulations.

The Government are aware of the potential for unintended consequences for people in need of supported housing services. Crucially, the Bill places a duty on the Secretary of State to consult on the key measures that I have set out before making any regulations. This includes a requirement to seek the views of statutory consultees. Stakeholders can be reassured that the Government are determined to work with them to understand the impact of these measures and to ensure that any risks are understood before proceeding. But we are clear that the purpose of these changes is to drive out rogue providers, which is paramount.

Further measures in the Bill include a requirement to review the effect of the licensing regime after three years, to consider whether a change in planning law is warranted. This was brought up by a number of noble Lords, and I assure them that we will review that. A change to homelessness legislation will ensure that anyone who finds themselves forced to leave supported housing because it does not comply with the national standards will not be intentionally homeless. My noble friend Lord Young of Cookham brought up the important issue of social housing data on the demand for supported housing that is not held centrally. We are commissioning that research because we need to know what the effect will be once we put these measures in place. We need to know the current and future demands, because we cannot have people being made homeless unintentionally through the Bill.

As I said, the Bill also requires local authorities to produce strategic plans, as we heard, and they will therefore forecast the need in their areas. In order to produce those plans, they will have to know the baseline for accommodation at that time. Local authority providers and the Government are there to ensure that supported housing needs can and will be met.

My noble friend also raised the issue of discharging obligations and powers in the Bill. First of all, as I said, the advisory panel will be set up as soon as possible after the Bill becomes law and will be an important part of ensuring that these actions are delivered. My noble friend brought up national standards, and, as I said, the Government have already started work with stakeholders across the housing sector to develop the standards. As far as the licensing is concerned, the Government will consult on measures to enforce the standards, and, as I said, we intend to introduce a licensing regime, as is set out in the Bill.

A number of noble Lords brought up the issue of the Select Committee report. The Government are considering the areas that the Select Committee highlighted, and we will publish a response in due course. We know that the Bill alone is not enough, so we are committed to taking forward further action, if needed—first of all, to get rid of rogue landlords, and, most importantly, to keep driving up the quality of supported housing.

The noble Baroness, Lady Walmsley, brought up the really important issue of the impact on good providers. There are some fantastic providers out there; I know that personally, because my daughter is in supported housing, as I have mentioned before. The Government are determined to avoid any unintended consequences for good providers of supported housing. We are already working with stakeholders on the detail, and, as I said, we will consult before committing to the detail of the licensing scheme and the standards.

The cost to local authorities will be assessed. I know that this is important, quite rightly, if we are putting new burdens on local authorities—and this is a big burden, as well as an important one. Costs will be assessed through the new burdens process, as usual. I hope that response puts noble Lords’ minds at rest on that subject.

The noble Lord, Lord Campbell-Savours, brought up a number of issues, most of which will be covered by the 12-week consultation, but I am more than happy to look at Hansard and go through his questions to make sure he gets a written answer, as that is what he asked for. We will make sure that copies of that will be in the Library.

The noble Baroness, Lady Warwick of Undercliffe, discussed the costs of the licences and the exemptions from licences. As I said, the Government will consult on the whole scheme. Is important that local authorities and other stakeholders all get involved in that consultation, because it will be a better scheme if the people actually working in the sector get involved before we completely set it up.

Those are my responses to all the questions. There were a lot of questions on funding. The Government are absolutely aware of this and are considering and doing research on the costs of these services for the future and for this type of accommodation. I feel quite strongly—as I know the noble Lord, Lord Best, does, too—that this is part of the continuum of keeping people in their own homes with dignity for as long as possible in their lives, so this will be an increasingly important housing sector in this country for people we look after in some parts of their lives.

In closing, I will repeat that there are many excellent providers of supported housing, who are determined to provide an excellent service for their residents. Those good providers have nothing to fear. As I said, my officials are already working with stakeholders to design a scheme that will drive out the rogues but enable good-quality supported housing to continue to be delivered as it is now.

We know that time is of the essence, and the Government have committed to laying regulations within 18 months of the Bill becoming law. As I said, I am enormously grateful to my noble friend Lord Best—I still call him my noble friend—for sponsoring the Bill, and to my honourable friend the Member for Harrow East for his work in the other place. The Government are committed to stamping out the practice of rogue providers exploiting vulnerable people, at considerable cost to the taxpayer. The Bill is a crucial step forward in ensuring that people receive good-quality support in a market free from unscrupulous actors.

[Lord Khan of Burnley (Lab)]

Before the noble Baroness sits down, I want to ask about the issue that my noble friend Lady Taylor of Stevenage has raised previously and I raised today about passporting funds, where in two-tier authorities higher authorities passport funds to housing authorities and districts. Can the noble Baroness get back to us on that?

[Baroness Scott of Bybrook (Con)]

I think that that will be part of the overall research into how the system works and where the money is. It was interesting that, even at the Select Committee, a provider said that there is money in the system but it is not being used correctly. We need to have the data on this to look at all those issues.

[Baroness Warwick of Undercliffe (Lab)]

The noble Baroness gave us a very comprehensive response, but will she comment on my point about the £300 million in the adult social care strategy?

[Baroness Scott of Bybrook (Con)]

I understand that that has gone. I do not know the details, but I am very happy to write to the noble Baroness.

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.

People of African Descent in the United Kingdom

Baroness Scott of Bybrook Excerpts

Monday 17th April 2023 Lords Chamber

[Baroness Thornton]

To ask His Majesty’s Government what assessment they have made of the statement by the United Nations Working Group of Experts on People of African Descent, published on 27 January, in which they said they were “deeply concerned about the human rights situation of people of African descent” in the United Kingdom and which recommended further efforts to address structural, institutional and systemic racism against people of African descent.

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

This Government are proud that the United Kingdom is an open, tolerant and welcoming country. I commend to the House our Inclusive Britain strategy, which is a rigorous and comprehensive action plan to tackle negative disparities between people from different ethnic backgrounds. We have published today a report on the excellent progress we have made on delivering Inclusive Britain and how it is improving people’s lives.

[Baroness Thornton (Lab)]

My Lords, the Minister then needs to explain to the House how the United Nations working group came to the conclusions that it did in the statement it published on 27 January and how it found exactly the same situation as it did on its visit in 2012. It identified

“stark and unsustainable inequalities underpinned by systemic racism, judicial bias, and disproportionate and discriminatory policing of people of African descent”

in the UK today. Does the Minister accept the findings of the working group, and what do the Government intend to do about them?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

We strongly reject most of the findings, as they wrongly view the people of African descent as a single, homogenous group and present a superficial analysis of complex issues that fails to look at all possible causes of disparities, not just race. We did not feel that the United Kingdom’s strong reputation as one of the fairest and most open-minded countries in the world was properly reflected in the working group’s initial findings, which failed to look fully at all possible causes of disparities, not just race or racism. As our Inclusive Britain strategy and the wider work of this Government demonstrate, instead of sowing division, we must focus on giving every community and individual the opportunity to thrive and to succeed in a country where a person’s racial, social or ethnic background is not a barrier to achieving their ambitions.

[Lord Singh of Wimbledon (CB)]

My Lords, does the Minister agree that, in discussing serious issues, we should avoid using terms that blur meaning and fog issues, including words such as “racist”, “race” and “racism”, which suggest that there is a number of finite races in the world? The reality is that there are as many races as there are human beings on earth. Does the Minister further agree that what we are talking about is irrational prejudice, which has to be tackled in schools and the workplace?

[Baroness Scott of Bybrook (Con)]

I agree with the noble Lord’s last point that, where there are issues in workplaces, in education or in health, we need to tackle them. I also agree with him that there are many races in the world and that everybody is equal.

[Baroness Benjamin (LD)]

My Lords, the report highlights how the treatment of the Windrush generation has caused significant and unbelievable harm. The feeling of mistrust and the daunting requirements have left emotional trauma that cannot be quantified. Many have died without their cases being resolved. Recently scrapping the three recommendations from Wendy Williams was careless and heartless, so will the Government make the application process more accessible and simpler for the many elderly people still struggling with the daunting system, or, better still, hand over the compensation scheme to an independent body?

[Baroness Scott of Bybrook (Con)]

Since the injustices of Windrush came to light, there has been a concerted effort across government to right the wrongs suffered by those affected, including apologising, helping people to apply for documentation through our Windrush help teams, and the 200 engagement and outreach events across the country. Over 60% of the claims have received final decisions and, incrementally, more decisions are being made month by month. The Home Office firmly believes that moving the operation of the scheme away from the department would risk significantly delaying vital payments and that there would be considerable disruption to the processing of outstanding claims while a new body was established and made operational.

[Lord Popat (Con)]

Does my noble friend the Minister agree that we have an amazing record when it comes to challenging racism and celebrating diversity? Four of our five most senior Cabinet Ministers have African origins, including our Prime Minister and Suella Braverman, from Kenya; James Cleverly, from Sierra Leone; and Kemi Badenoch, from Nigeria. We have an amazing record that we should always celebrate, so I really do not agree with the United Nations report.

[Baroness Scott of Bybrook (Con)]

Of course I agree with my noble friend. We are a country that is welcoming and open, and I do not believe it is racist at all.

[Lord Sikka (Lab)]

My Lords, numerous studies have shown that black African workers in the UK receive lower pay than their white counterparts for exactly the same work. Ethnicity pay gap reporting is a necessary tool for highlighting institutionalised inequities and empowering Governments and people to take action. Therefore, can the Minister explain why this Government oppose ethnicity pay gap reporting?

[Baroness Scott of Bybrook (Con)]

No one should have to worry that they are not being given the same opportunities as their colleagues at work. That is why the Government have today published guidance to employers on ethnicity pay reporting as part of the Inclusive Britain strategy.

[Baroness Berridge (Con)]

My Lords, back in 2017, the Prime Minister announced a review of our mental health laws, which we all know have disproportionately affected those from ethnic-minority backgrounds. The Joint Committee reported to the Government in January this year and advised—boldly—that the Government abolish community treatment orders, which are 11 times more likely to be applied to those of black British backgrounds. When will we see the new mental health Bill so that we can pass it swiftly through Parliament?

[Baroness Scott of Bybrook (Con)]

I am afraid that I cannot say to my noble friend when the Bill will come through; I understand that it depends on parliamentary time. However, I can say that the Government and NHS England are already taking forward non-legislative work to address racial disparities in mental health, including piloting services which explore approaches to identifying, supporting and advocating for the specific cultural needs of people from ethnic-minority backgrounds.

[Baroness Whitaker (Lab)]

My Lords, the noble Baroness disputes the United Nations report. How, then, does she assess our own British report, recently published, from the University of St Andrews and backed by the Economic and Social Research Council which sets out searing disparities between many ethnicities, not least those white minority-ethnic groups—Gypsies, Travellers and Roma—who suffer the worst discrimination of all? This has gone on for years; what are the Government going to do about it?

[Baroness Scott of Bybrook (Con)]

As I have already said, the Government believe that this country is open and welcoming, but obviously we are not complacent. We will continue to look at all those reports being written by eminent people; we will look at the recommendations and, if necessary, we will act.

[Baroness Burt of Solihull (LD)]

The statement of the UN working group foretells what the report is going to say in September, so we have had fair warning. If the Government disagree, why do they not start formulating a plan now for tackling our structural, institutional and systematic racism instead of meekly waiting for the report to land?

[Baroness Scott of Bybrook (Con)]

I think I have already said that we are not waiting. We have a strategy called the Inclusive Britain strategy, which has been going for a year. Today, we published the first results of that strategy. We will wait until the September final report and look at whether there is anything further that we have to do, but, actually, we are doing it before we get that report.

[Baroness Chakrabarti (Lab)]

My Lords—

--- Later in debate ---

[Lord Lilley (Con)]

Did my noble friend give the visiting body a copy of the excellent Sewell report? It showed that, though discrimination and prejudice exist, are wrong and should be combated, they could not account for most of the disparities. For example, there is a huge disparity between performance of black people from the Caribbean and black people from Africa. Nor could they account for the fact that one of the worst performing groups is white working class people. Did this body comment on those facts?

[Baroness Scott of Bybrook (Con)]

No, I do not think it did comment on those facts, yet my noble friend is absolutely right: we had a Commission on Race and Ethnic Disparities report written by the esteemed commissioners, and that Sewell report was the basis for our strategy as it stands today. My noble friend brings up a very interesting issue, which is that in all races and faiths there will be some people who need more help than others, and that is exactly what we will be doing in this country.

Housebuilding

Baroness Scott of Bybrook Excerpts

Thursday 30th March 2023 Lords Chamber

[Lord Young of Cookham]

To ask His Majesty’s Government whether they remain committed to building 300,000 houses a year.

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

Yes, the Government are committed to continuing to work towards our ambitious target of 300,000 homes a year, as set out in the 2019 Conservative manifesto. Annual housing supply is up 10% compared to the previous year, with over 232,000 houses built and delivered in 2021-22. This is the highest yearly rate for the last 30 years.

[Lord Young of Cookham (Con)]

I am grateful to my noble friend, who is dealing heroically with housing and the Levelling-up and Regeneration Bill, which after eight sittings still has as many groups ahead of it as at the first. Does she understand the concern that the concession made over Christmas to head off a rebellion in another place has made it even more difficult to hit the 300,000 target? Does she understand that many of us want to give the other place an opportunity to think again by amending the Bill, and so help the Government to hit their target?

[Baroness Scott of Bybrook (Con)]

The Government are committed to building more houses of the right type in the right places, but we know at the moment that there are economic challenges faced by the sector. We need to work as closely as we are, and more closely—and with Homes England—to better understand those challenges and to provide support. We have already consulted on changes to the planning policy that will support how we plan to deliver these houses in our communities, and we will respond to that consultation in due course. I assure my noble friend that we remain committed to a plan-led system, and national planning policy that expects local authorities through their plans to make sufficient provision for housing and identify the sites to deliver these much-needed homes to meet local needs.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, the noble Lord, Lord Campbell-Savours, is participating remotely.

[Lord Campbell-Savours (Lab) [V]]

My Lords, if, prior to planning approval, land for both high-density public and private housing development was acquired at agricultural acreage prices, as has happened in parts of Europe, and then allocated for both social rental and restricted leasehold sale to housing associations and housing trust development programmes, would that not be a huge incentive for construction levels not seen since the 1970s, as against today’s numbers, where scarcity is driving up prices and denying millions a home?

[Baroness Scott of Bybrook (Con)]

The noble Lord brings up a very interesting idea. We are looking at different ways of land use in the levelling-up Bill, and I am sure that there will be more discussions on those sorts of issues.

[Lord Cormack (Con)]

My Lords, will my noble friend bear in mind the immortal words of William Morris, that a thing of use should also be a thing of beauty? Can we have some attention paid, far more than in the past, on the quality of housing, and make sure that it can easily be equipped to deal with climate change?

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right and if he has the time over the Recess to read the levelling-up Bill, he will see that the Government have plans and are committed to building better houses with better design, and building more energy-efficient housing as well.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, changes to the planning system, to which the Minister referred, pose a risk to the supply of new housing. In a recent public letter to the Secretary of State, 19 leading organisations from across the housing sector expressed serious concerns about the impact of proposals, particularly for the new infrastructure levy and its impact on the supply of housing, particularly social and affordable housing. What steps are the Government taking to respond to these widespread concerns and protect affordable housing delivery?

[Baroness Scott of Bybrook (Con)]

We do not agree. We absolutely want to protect the amount of affordable housing and particularly the social housing part of that affordable housing. We believe the Bill will help us to do that. We will continue with it and continue to deliver much-needed housing in that sector.

[Noble Lords]

My Lords—

[Lord Best (CB)]

Does the Minister agree that, of the 300,000 target, 10% or 30,000 homes ought to be for older people’s housing—retirement housing—because this gives us terrific gains in terms of health and care facilities? It also means two for one because, for every one of those homes, another is released by an older person moving on. Can we in the levelling-up Bill therefore insist on local authorities including provision for older people—retirement housing—in their local plans?

[Baroness Scott of Bybrook (Con)]

The Bill makes it clear that local authorities, in their local plan, have to include housing for older people and for disabled people and other vulnerable groups. The Government want to deliver the best possible outcomes for these groups by helping them to live independently in safe, appropriate and good-quality housing for as long as they can possibly stay in it. The £11.5 billion affordable homes programme includes the delivery of new supported housing for older, disabled and vulnerable people, and our planning rules already mean that councils must consider them in their plans.

[Baroness Thornhill (LD)]

Targets do not get homes built. People do, people with a wide range of skills. Given that every single report, from Kate Barker in 2004 to the recent BEIS figures, have warned us of a severe skills shortage in the construction industry, what are the Government’s plans to reverse this decline? Do the Government see SME builders as part of the solution, as they appear to have been phased out of significant housebuilding altogether over the past decade?

[Baroness Scott of Bybrook (Con)]

We are collaborating across government to ensure that we are supporting the sector. The Department for Education is improving training routes into construction and creating opportunities for workers to retrain by working with employers to make apprenticeships available and more flexible and to promote T-levels. The Government are increasing funding for apprenticeships across all sectors, including construction, to £2.7 billion in 2024-25. We are continuing to fund more apprenticeships in non-levy-funded employers, which are often SMEs, and the Government will continue to meet 95% of the apprenticeship training cost for those companies.

[Lord Haselhurst (Con)]

Can my noble friend estimate the significance of a recent report that the Nationwide Building Society has been directly involved in the construction of 239 properties on wasteland? This would suggest that there are other ways that we can make sure that the Government’s target figure can be met.

[Baroness Scott of Bybrook (Con)]

My noble friend is absolutely right. We need to look at all types of construction ideas and use whatever financial incentives we can to ensure that we are building the houses that we know we need.

[Baroness Hayman of Ullock (Lab)]

My Lords, having somewhere safe, stable and secure to live is essential for good mental and physical health. For too many people, housing insecurity and poor mental health reinforce one another. Will the Minister commit to ensure that all new housing developments include within their plans a priority to promote good mental health and well-being for the population?

[Baroness Scott of Bybrook (Con)]

I thank the noble Baroness for that question. This is something that should be brought up in the LURB as we discuss it further. She is absolutely right. We need more good-quality housing in the United Kingdom because we know that if somebody is in a good-quality, safe home their mental health and physical health are better.

[Baroness Hayman (CB)]

My Lords, I declare my interest. I was grateful to the Minister for mentioning energy efficiency in one of her earlier answers. In the light of the CCC’s report about adaptation and the Government’s proposals today on energy security, will she look at my Amendment 486 to the LURB? The Government might save themselves some time by adopting it in relation to solar panels on new housing.

[Baroness Scott of Bybrook (Con)]

I am sure we will discuss the noble Baroness’s Amendment 486 in the LURB when we get to it.