Levelling-up and Regeneration Bill

Baroness Taylor of Stevenage Excerpts

Committee stage
Wednesday 22nd March 2023 Lords Chamber

This is the prime opportunity to clarify in statute our planning system’s role in delivering on our climate change and environment targets and removing the ambiguities and inconsistencies of the current system. I hope that the Government will agree that now is the time to seize this legislative opportunity, because there will not be another in the short or medium term. Now is the time to act.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I will speak next as I have an amendment in this group. I thank the noble Lord, Lord Ravensdale, for his excellent speech on his amendments and for meeting with me and the noble Baroness, Lady Hayman, to discuss the Bill. I was pleased that he mentioned Peers for the Planet; I am not yet a member of that group but I will be a very enthusiastic joiner. The noble Baroness, Lady Hayman, has greatly encouraged me in that respect.

The noble Lord, Lord Ravensdale, spoke about giving local authorities the tools that they need. That is also an important part of my Amendment 179A in this group, which I will speak to. The noble Lord, Lord Ravensdale, referred to the Skidmore review and the Climate Change Committee’s work—which are both crucial to his and my amendments in this group—and to having a net-zero test running through the planning system. That is absolutely crucial, and now is the opportunity to do just that.

We have spoken before about the fact that there are some key strategic omissions from the Bill. Ensuring that climate change is fundamentally enshrined in law in the planning process is one of the most critical. My amendment is designed to address this too, by including it as one of the key purposes of the planning process. Over 80% of councils have now declared a climate emergency, with a pledge to net zero sitting alongside that, so surely it is time that the Government and legislation caught up and helped provide the tools to do that. The amendments in this group are designed to set out: first, an overall purpose for the planning process; secondly, to make absolutely sure that that includes the sustainability of all development; and, thirdly, to ensure that every individual development proposal is assessed to ensure that it is part of the solution to climate change, not adding to the problem.

As far back as November 2021, the Local Government Association commissioned a wide-ranging report to show how critical the local contribution to climate change could be. There are many important contributions recorded in that report, including one from Richard Blyth, head of policy at the Royal Town Planning Institute, who said:

“Collectively local activity and investment (for example on housing, infrastructure, water management) will only contribute positively to the ambition to leave the environment in a better state if there is a shared spatial framework for improving local environments”.


He pointed out that the Environment Act could take this only so far, but some of the measures it contained risked adding to the piecemeal landscape of environmental plans without clear directions for economic decision-making. The noble Lord, Lord Ravensdale, referred to the piecemeal approach that results from some of the provisions in the Environment Act. The only way of ensuring that a holistic approach is taken to environmental issues is to ensure that all the relevant issues are built into local plans and considered for each development, whether that is water, flooding, soil, air quality, transport, access to open spaces, biodiversity, energy, waste or the whole-life carbon impact of buildings. These should all be part of the consideration of planning.

Net zero can be achieved only if decarbonisation happens in every place, everywhere across the country. These amendments would incorporate in the Bill plans for an overarching clause that would do just that. At the moment, if the overarching framework of the national management development plan, whatever it contains in relation to net zero—I am probably not the only one in this Committee who fears that this will be nowhere near ambitious enough in response to the climate emergency—does not have a corresponding network of local plans setting out clearly how development will take a radically new and ambitious approach to this, we will, I fear, continue to move at the current snail’s pace.

Local plans also need to reflect the needs of mitigation of climate change. In a paper from the University of Strathclyde by Dr Hawker and Dr Wade, they say:

“In particular, local planning decisions around land use and infrastructure must be made with acknowledgement of their implications for living with climate change. For example, increasing green spaces can support drainage in urban areas, helping to alleviate future flood risks”.


We have seen some magnificent examples in recent years—for example, pocket parks in high streets, which help with flooding issues—but they are by no means common enough yet. Local authorities often hold large building portfolios, including social housing. If they can be supported with long-term future funding, they can take action now to ensure that properties are energy efficient and much more cost effective for residents.

At Second Reading in the other place, the Secretary of State’s contention was that proposals in the Bill would strengthen environmental protection. He explained that a National Planning Policy Framework document would be published in July—that is July last year—setting out how environmental outcomes were to be driven. As far as I know, that document has not yet been published by the department. So, while we await specific policies on specific aspects of tackling environmental outcomes, fundamentally writing climate change into both development planning and mitigation measures for the planning system of the future is the only way of ensuring that they reach every part of the UK. If we do not do so in this Bill, we will have missed a huge opportunity to align the planning system with the climate change goals that should be right at its heart.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I have added my name to Amendments 179 and 271 from the noble Lord, Lord Ravensdale. I thank him very much for bringing them to your Lordships’ Committee. I will make three quick points.

First, I do not understand why the Government are not using this Bill as a vehicle to embed the approaches that they have signed up to on net zero and climate change targets more generally. Surely this is the ideal legislation to ensure that our planning system supports what the Government say they wish to do.

Secondly, the noble Lord quite rightly mentioned the Skidmore review, which is very telling, and we have also heard from the Climate Change Committee. However, the National Audit Office’s report should not be ignored. It said that

“there are serious weaknesses in central government’s approach to working with local authorities on decarbonisation, stemming from a lack of clarity over local authorities’ overall roles, piecemeal funding, and diffuse accountabilities”.

The Government need to listen to the National Audit Office, because that is based on its expertise in monitoring and evaluating what local authorities are doing and the confrontations they are having on some of these issues due to flaws in the current local planning system and arrangements.

Thirdly, my background is mainly in health, and there is no doubt that unlocking economic growth through planning reform, as was highlighted in the net zero review, could achieve real health benefits by fully aligning our planning system with climate change and nature targets. The point has been made by the UK Health Alliance on Climate Change, which says that a healthy neighbourhood can also be a powerful levelling-up tool, leading to better mental and physical health and well-being outcomes through active travel, social connectivity and access to green spaces. Statistics published by the UN only a few days ago show that life expectancy in this country has deteriorated dramatically in comparison with many other countries since the 1950s. We were then one of the top countries for life expectancy; now we are in danger of dropping out of the top 30.

There is such a persuasive argument for tying in strong public preventive health with what must be done on climate change and net zero. Surely the planning system is one of the most powerful levers that we can use to make it happen. I hope we will come back to this very important matter on Report.

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[Baroness Scott of Bybrook (Con)]

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

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

[Baroness Taylor of Stevenage (Lab)]

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

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

[Baroness Scott of Bybrook (Con)]

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

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I will briefly conclude by saying that I strongly support what my noble friend Lord Foster of Bath said about electrical safety. There seems to be absolutely no reason or argument to oppose his amendments, which would ensure that those who occupied short-term lets and dwellings, or indeed any accommodation, had a guarantee of a safe environment in which they could operate.

[Baroness Taylor of Stevenage (Lab)]

My Lords, in an earlier debate on these topics on Monday, we heard the noble Lord, Lord Foster, discussing Southwold, where I spent many happy hours on holiday as a child and which now has, if I remember my figures from Monday rightly, only 500 permanent homes out of 1,400 homes. In that same debate the noble Earl, Lord Lytton, referred, as he did again today, to the fact that have not just a numbers problem but a distribution problem around the country because of the lack of available data.

We are all aware of the considerable issues presented in parts of our country related to second homes and short-term lets. That situation was clearly articulated by my noble friend Lady Hayman in our debate on Monday, when she articulated that communities are hollowed out because of the second homes left empty for large parts of the year, which means that all the community facilities that permanent residents need struggle to be viable. In addition, we see local house prices forced out of affordability for local people as second homes and holiday lets contribute to the housing pressures.

An amendment creating new use classes for second homes or holiday lets was rejected in the other place. Although amendments on the same subject were withdrawn on Monday, I hope that we come back to this, as suggested by the noble Lord, Lord Best, because it is critical that we tackle this issue. In the House of Commons, the Government claimed that these were not necessary as neighbourhood plans could create principal residence policies. However, I wonder whether the full extent of this issue and its impact, particularly on rural and coastal communities, has been properly assessed and understood. The amendment in the name of the noble Lord, Lord Moylan, would enable the collection of data relating to this problem which might help to develop the picture further. However, we should encourage the Government, through the Minister, to consider this matter as urgent; it may already be too late for some of the communities worst affected. Surely we will not abandon these communities to the opportunities they offer for a small number of people to make a fast buck.

On the amendments tabled to Clause 210, which were clearly articulated by the noble Lord, Lord Moylan, we too are interested to hear the Government’s thoughts on the registration of short-term rental properties. It was interesting to hear about the work of the Built Environment Select Committee in that respect.

In the Commons, Ministers referred previously to the ongoing consultation on this matter—indeed, the noble Lord, Lord Moylan, referred to it again this afternoon. What is the outcome of that consultation—it has not been published yet—and what conclusions will the Government draw from it? I believe that the noble Lord, Lord Young, referred to this in an earlier debate on this topic.

I was very interested in the comments on the work of the Built Environment Select Committee, and it is fascinating to hear that this issue sits with the DCMS rather than DLUHC. I hope the Minister will respond to that. It is disappointing to hear that a Minister thinks that the whole Bill has already been enacted. In view of the fact that none of these issues has been dealt with, I think we are glad that it has not been so far, and I am sure that noble Lords here will improve the Bill as we go along.

[Lord Moylan (Con)]

May I just briefly say, as a matter of courtesy, that the reply to the letter that I referred to came from a Minister in the other place? I just thought, in all fairness, that I should make that very clear.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Lord for that clarification.

The noble Lord, Lord Moylan, set out the four questions asked by his amendments, and they are all very important questions on which I hope we will hear further from the Minister, particularly Amendment 446, which addresses how this is going to be paid for. That is one of a number of questions on fees and costs that appear about many other clauses of the Bill, so I hope we will have responses to those questions.

The amendments from the noble Lord, Lord Foster, largely relate to ensuring that the safety of short-term let properties is not left to chance. It is particularly important that properties left empty for periods of the year are subject to detailed regulation on safety matters. This would also encourage absentee landlords to ensure that their responsibilities are met. Recently, we have seen increasing pressure on social landlords to address safety provision—in fact, there are very stringent new requirements on them—so it is clearly an issue that the Secretary of State takes seriously. We should not have what would amount to an exemption for the owners of short-term let properties in this respect. I hope that may be addressed.

The noble Lord, Lord Foster, also referred to the difficulty of enforcing licensing restrictions without data from booking platforms. Although I agree with him that booking platforms may be unwilling to release that data, it is really important and, without it, enforcement is difficult to address. Local authorities would struggle without effective data collection methods to enforce some of the matters raised in this debate.

The noble Earl, Lord Lytton, referred to the perverse incentives that exist between council tax and business rates. This is really important to data gathering: there is no incentive for councils, because if they collect business rates, they have to send it all off to our good friends at the Treasury, whereas if they collect council tax, they keep it to deliver services to their communities, so there is not much incentive for them to get matters straight here.

My noble friend Lord Berkeley referred to the importance of being reassured of the safety of the building, regardless of the length of time of the let. If you stay somewhere, even if just overnight, you want to be assured that the building is subject to the same safety regulations as would apply anywhere else you stayed.

Turning to the comments of the noble Lord, Lord Shipley, I am very sorry that the noble Baroness, Lady Thornhill, is not in her place today and I hope he will send her our very best wishes for a speedy recovery. He spoke about evidence to the Built Environment Select Committee from south Devon. I heard a great deal on this from my former colleague on the District Councils Network, Judy Pearce, who is the leader of South Hams Council and has been a powerful advocate of a great deal more action on second homes. The suggestion of pilot schemes—or taking advice from Wales, as I am sure my noble friend Lady Wilcox would say—is always a very good idea.

On 21 March, it was reported that changes aimed at restricting the way that homes can be turned into Airbnbs were being introduced, as the Secretary of State for DLUHC was going to bring them in. He acknowledged a problem with holiday lets preventing young people accessing jobs and homes. Can the Minister give us further information on whether that will come into the Bill as government amendments and when we will see government amendments to this effect?

Those are our comments on the amendments submitted. We support the amendments on registration and we certainly support the amendments on safety.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I draw attention to my entry in the register as the owner of a second home in Pembrokeshire, one of the three local authorities that is introducing a licensing scheme—actually, it is not introducing a licensing scheme but a 300% increase in rates unless you rent your house out for more than six months, which I generally do.

This group of amendments concerns the operation of the short-term letting registration scheme introduced by the Bill. To start with Amendment 180, in the names of the noble Lords, Lord Shipley and Lord Foster of Bath—I, too, send my good wishes to the noble Baroness, Lady Thornhill, and hope she recovers swiftly from Covid—I start by acknowledging the important topic this amendment raises relating to holiday lets and second homes.

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Moved by

[Baroness Taylor of Stevenage]

183: Clause 85, page 94, line 8, at end insert—
“(3A) After subsection (4) insert—“(4A) A local planning authority must review and update the development plan at least once every five years.””Member's explanatory statement
This amendment would require local authorities to review and update the development plan at least every five years.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, as we begin our discussions on the detail of the planning section of the Levelling-up and Regeneration Bill, it is important to explain that, although our amendments necessarily cover the detail of the various clauses, there is huge concern in local government about some of the fundamental principles that underlie the proposed changes in the Bill. We absolutely must ensure that local plans, with the input of local people and democratically elected representatives, retain their primacy over anything that is drawn up centrally in Whitehall.

As currently written, whether intentional or not, the Bill would give primacy to the national department management policies, which is a very significant change indeed from the National Planning Policy Framework that currently exists and which, as we discussed earlier, is guidance rather than statue. We all recognise the need to have a framework to guide planning policy, but it should always give primacy and flexibility to local areas to ensure that planning meets their local needs, enables the voice of their local residents and businesses to be expressed through the planning system, and meets the test of local democratic accountability that is so important in shaping our places.

Noble Lords will have received significant numbers of briefings on this part of the Bill, as we have, from some of the most respected bodies in this field: the Local Government Association, the Royal Town Planning Institute, the Town and Country Planning Association, CPRE and the Better Planning Coalition. It is fair to say that most of them welcome the focus on planning in the Bill, although perhaps some of them, like me, would have preferred a dedicated planning Bill, which would have enabled an even greater focus on what needs to be done to make our planning system fit for the 21st century.

All these organisations focus on the essential element of planning, which is that it must be local and properly engage local people and businesses. The Royal Town Planning Institute, for example, says:

“If those living in newly devolved areas are going to truly benefit from the Bill they need to be given the planning freedoms to innovate and deliver planning policy that works best for them. We’ve seen that development management policies can be an effective tool to stimulate growth, provide energy, transport and housing decisions strategically, and experiment with different policy options to meet local needs.”


The Local Government Association expresses considerable concern about the ability to retain local autonomy and decision-making over plans in the light of the NDMP proposals in the Bill, saying that,

“in reality, local plans will be constrained in the event that they conflict with National Development Management Policies, in which case the latter will take precedence. We have previously sought an amendment to reverse this proposal so that local plans will take precedence in the event of conflict. This is critical to ensure that that one of the key principles of the planning reforms—‘a genuinely plan-led system’— is enshrined in the Bill.”

The LGA goes on to emphasise that local councils should have the flexibility to respond to local, complex and changing circumstances.

The CPRE has gone to the extent of seeking extensive legal advice on these issues. It strongly supports our Amendments 189, 190, 191 and 192, as well as an amendment from the noble Baroness, Lady Thornhill. It has provided a detailed legal critique, particularly regarding Clause 86, which questions whether there is any legal scope for local development plans and NDMPs to vary from each other in any way, which, as it puts it, is likely to dissuade local authorities from seeking to set local policies for fear that they will be rendered obsolete by subsequent changes to NDMPs. It goes on to comment that according to Clause 86 as drafted, if there were to be a tension between a national policy and a local one, there could be no assessment of balance. The national policy would always win out, despite its not having been given any democratic scrutiny. The decision-makers’ scope to make a locally appropriate decision is therefore removed.

The CPRE is also concerned about the fate of neighbourhood plans under this proposed new system, as it says they could become out of date quickly if NDMPs change—for example, if there is a change of Secretary of State, which is not an unusual occurrence in recent times. For communities which have spent months or years working on their neighbourhood plan, this could destroy their trust in the planning system. The CPRE’s legal opinion from Landmark Chambers in November last year demonstrated that the Bill is a radical departure from the current system and would elevate NDMPs to the top of the planning hierarchy, a position which the Government at Second Reading stated was not the intention of the legislation. However, it appears from the way the Bill is currently drafted that it takes planning into uncharted waters which are both centralising and undemocratic.

We come to this important group of amendments with that backdrop, which is a very important context against which we should consider this section of the Bill. My Amendment 183, along with amendments tabled by the noble Lords, Lord Young and Lord Lansley, address issues relating to how local plans are kept up to date. I have to say that planning officers may feel that they are already in a situation where local plans are permanently in preparation. That is because the many stages of plan preparation take a long time, as does the process of inspection, public inquiry and so on. All this means that by the time you have a full plan in place, you are already dealing with the review of that plan.

However, with the pace of change, rapid developments in the economy and the need to take account of demographics and changes in our communities and to tackle climate change, we must ensure that we simplify and enable the renewing and refreshing of development plans every five years. This would ensure that local authorities do not have to face the cliff edge of an enormous, complex and expensive planning exercise which would result in the longer intervals of up to 30 years given between plan reviews. This will require corresponding changes within the Planning Inspectorate, but they would need to be considered in relation to the Bill in any case.