Housing and Planning Bill Debate

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Baroness Williams of Trafford

Main Page: Baroness Williams of Trafford (Conservative - Life peer)

Housing and Planning Bill

Baroness Williams of Trafford Excerpts
Tuesday 22nd March 2016

(8 years, 1 month ago)

Lords Chamber
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Baroness Pinnock Portrait Baroness Pinnock
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Following on from what the noble Lord said—although perhaps the Minister will put us right—my understanding is that permission in principle has two routes. One is through the local and neighbourhood plan. Giving permission in principle is really what such plans do. It is the second route that I am concerned about. Through this route, an application can be made directly to the local planning authority for a site that may not have already been allocated for development—if it had been, it would be in the local plan. That is my concern with this proposal. If it just said that sites allocated in a local plan have, by the very nature of their being in a local plan, permission in principle, I could probably live with it. I am concerned about the second area, and I hope that I will get answers and reassurances.

Baroness Williams of Trafford Portrait The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
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My Lords, I wish the noble Lord, Lord Kennedy, a speedy recovery and I am glad to hear that he is back on his feet. Although he is not the greatest fan of the Bill, it has been a great pleasure discussing it with him.

I want to make a point about the letter that noble Lords received on the secondary legislation. I sense from the Benches opposite that some have it and others do not. I will think about what the noble Baroness, Lady Hollis, said about placing copies in the Printed Paper Office. I am sure that we can do that in future. I also have a couple of copies with me, if noble Lords would like to see it. I was absolutely determined that the letter would be with noble Lords, and it is a shame that difficulties with offices being spread thinly have prevented it. In future I will put copies in the Printed Paper Office.

Baroness Hollis of Heigham Portrait Baroness Hollis of Heigham
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I thank the Minister for that. It is a strain trying to do a Bill four days running. We cannot keep up with it. By putting it in the PPO, which is very effective and efficient, we all have access to shared information. So I thank her.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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The noble Baroness is very welcome. We learn these things as we go along. I also confirm to noble Lords that I will be responding to the DPRRC report tomorrow, as well as giving my intentions for Report. That said, I will go through the whole principle of permission in principle, as the noble Lord, Lord Greaves, did. It is a measure that responds to issues raised by representatives from the housebuilding and professional planning sectors about the lack of predictability and efficiency in our current planning system, which noble Lords have alluded to, in two specific key areas.

First, the current system requires applicants to invest heavily upfront in the finer details of the scheme without sufficient certainty that the site is “in principle” suitable for that type of development. This can waste time and effort for local authorities which have to determine detailed applications that may not be suitable in principle, and for communities and other consultees that are asked to comment. In August 2015, the Planning Officers Society released a discussion paper on this very issue, which states that,

“the costs associated with submitting applications for outline planning permission, with all its information requirements, can be significant for small and medium builders. This, coupled with no guarantee of success, can deter small and medium businesses from putting forward sites into the planning system. This needs to be resolved”.

Secondly, the current system allows “in principle” decisions to be revisited at multiple points in the process. I am sure we have all seen this. Even where land is allocated in a local plan, decision-makers will reassess the basic principles of site suitability when a planning application is submitted. This means that the hard work and local effort that go in at the plan-making stage are often revisited and repeated at the development management stage. On this point, when giving evidence about the Bill in the other place, the Home Builders Federation said of planning applications:

“Unfortunately, I can point you to many, many examples of where the principle of development gets discussed at length even for an allocated site”.

I also take this opportunity to highlight that the Lyons review, published in spring last year, also identified that the principle of development should be established earlier.

Clause 136, which my noble friend Lord Lansley referred to, responds to these issues by introducing permission in principle: a new type of planning consent that will provide upfront certainty that the fundamental principles of development—the use, location and amount of development—are agreed and established once in the planning process. This will give increased certainty that a type and amount of development is acceptable in principle before significant investment is made in costly technical matters. However, permission in principle must be followed by an application for “technical details consent” before full planning permission is granted and work can start on-site. This will provide the opportunity to assess the detailed design and to ensure appropriate mitigation of impacts and that the contribution to infrastructure is secured.

Clause 136 will enable permission in principle to be granted in two ways. The first is on sites that local planning authorities, parishes and neighbourhood forums choose and allocate within their local plan-making process. It will strengthen plan-led development in this country and increase the efficiency of the system by ensuring that the hard work that goes into local plan production and site allocation is put to best use.

I stress that the choice about where to grant permission in principle will be a local one, reached through the rigorous involvement of communities and members of the current plan-making process and not through the Secretary of State. Far from removing a community’s voice from planning decisions, permission in principle will strengthen the role of the local plan and help ensure that housing development takes place on sites that people actually want to see built. Where permission in principle is granted through neighbourhood plans, this will truly ensure that communities are in the driving seat of local planning.

To meet the specific challenges faced by smaller developers, Clause 136 will provide a second route for permission in principle to be granted by enabling applicants to make an application to the local planning authority for a minor development. The noble Baroness, Lady Pinnock, referred to this. This will ensure that smaller builders can test the acceptability of a scheme before having to invest heavily in the technical detail that may go to waste if the development is not acceptable in principle.

Baroness Andrews Portrait Baroness Andrews
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I thought it was worth interrupting the Minister at this point because of the definition of “technical details”. If we can get that straight, it might save a lot of discussion later on. Does “technical details” mean the NPPF or is it less than the NPPF? In Fixing the Foundations the Chancellor talked about,

“a limited number of technical details”.

Does she have a list of those technical details? I think we would all benefit from genuine clarity about that at this point.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, when setting out the local plan, local authorities will have to be clear on things such as environmental mitigation and flood risk—all the various things that would usually be considered. If noble Lords have suggestions for what should be included in the technical details stage of the process, I would be very grateful. I thought the noble Baroness was going to mention something entirely different because we talked the other day about sites of archaeological interest. Of course, such things have to be considered in terms of the NPPF anyway. But if she thinks there are additional things that should be included at the technical details stage, I am very happy to listen and take them on board.

Lord Greaves Portrait Lord Greaves
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That is very helpful but I think what is concerning people is not what additional material considerations there may be for planning applications or the new system, it is which of the existing ones the new system will miss out. Will anything that is a material consideration for a planning permission at the moment, whether it is a full permission or reserved matters or whatever, still be a material consideration under the PIP technical details system?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I assure the noble Lord that absolutely it will. The rigour that exists in the current planning system will be the rigour that exists through permission in principle. All the permission in principle system does is create a lesser financial burden upfront for builders, particularly small builders, which might want to build developments. It saves the upfront money knowing that they have the “in principle” go-ahead to pursue it further. I assure the noble Lord that none of the rigour that exists now will be diminished or diluted in the permission in principle system. I hope that that reassures him.

Lord Stunell Portrait Lord Stunell
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Can the Minister indicate to the House whether the Government have a particular ceiling in mind for what a minor project consists of, which might otherwise be somewhat in the eye of the beholder in this debate and might lead us into confusion?

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Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I am making an assumption here, but I would say that a minor scheme would be one with no more than a few dwellings on it. It would certainly not be a large scheme, which is currently designated as more than 10 dwellings, so perhaps one or two houses; no more than that. In fact, it might be just one dwelling.

I can also assure noble Lords that the technical details must be negotiated and agreed before developments can start, so in terms of the rigour of the planning process, they cannot be agreed afterwards. They have to be agreed before the development can go ahead.

Lord Greaves Portrait Lord Greaves
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I am a bit confused by the Minister’s language. When she said that they should be negotiated before the development starts, does that mean that permission is given by the local planning authority as if it was a reserved matter?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Yes, it would be. The development cannot go ahead unless the technical details have been agreed. It is an essential part of the process, just as it is under the current system.

Perhaps I may finish my opening remarks by reminding noble Lords of what the sector has made of our proposals since the Bill was published back in October. The Federation of Master Builders strongly supports them, and it believes in particular that the application route for minor developments will help to reduce the barriers to bringing forward small-scale housing development. In its evidence to the committee scrutinising the Bill, the Home Builders Federation said that Clause 136 would definitely increase supply because it is,

“a positive step towards finding the sites that local authorities actually want to see developed”.

I hope that I have been able to demonstrate briefly that permission in principle is a much-needed measure that is supported by the sector. It aims to introduce more predictability and efficiency into our system for locally supported development.

The noble Lords, Lord Beecham and Lord Greaves, talked about fracking. I should just like to make the point at this juncture that fracking sites are precisely the type of development that would not be suitable for permission in principle; they are simply at the other end of the scale. We are talking here about housing-led sites, so I shall say on the Floor of the House that fracking is not the sort of thing that we are thinking about. However, I know that noble Lords like to have it confirmed again and again, and I do not blame them.

The noble Lord, Lord Beecham, asked about the number of dwellings. The number will be determined through the local plan derived via consultation with the local community. He also asked about archaeological sites. If, say, a new dead king was found under a site, making it a site of great archaeological interest, it is fair to say that the technical details consent would be refused at that point.

Baroness Andrews Portrait Baroness Andrews
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The noble Baroness may be inciting me to withdraw my amendment, because some archaeological sites can be mitigated rather than withdrawn, but that mitigation requires the permission in principle to be changed because the mitigation can happen only, for example, by reducing the minimum number of houses. What happens then?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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The noble Baroness is absolutely right that the archaeological aspect of a site could be mitigated. Perhaps we will move on to that issue later, but I thought I would mention it, given that she is sitting in front of me. It might be a good example.

A few noble Lords talked about local development orders. We will get on to those in a later group, but I want to make the point at this juncture that local development orders are quite different from permission in principle, because they are tools that local authorities use to grant detailed planning permission for a specific development within a defined area, such as unlocking problematic sites and playing a vital role in regeneration. I thought I would make the point, because it has been mentioned.

Amendments 89N and 92D, tabled by the noble Lord, Lord Greaves, and the noble Baroness, Lady Featherstone, seek to place in the Bill an exclusion on certain sites from benefiting from a grant of permission in principle. Let me simply reaffirm the following truth: the Bill enables permission in principle to be granted for development on sites chosen by local authorities and neighbourhood forums. If a local authority considers that a site is suitable for housing-led development in line with local and national policy, it will be able to use permission in principle to help to ensure that such sites are delivered.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton (Lab)
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Perhaps I may ask the Minister about a point that has been puzzling me. Does the duty to co-operate between local authorities remain as it is under their current system?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Yes, my Lords. Indeed, I would reinforce the point that the duty to co-operate, particularly on larger sites, is even more important, given the buy-in by local communities of two different local authorities. Does that answer the noble Lord’s question?

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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Yes. I thank the noble Baroness.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Perhaps I may reaffirm that if a local authority considers that a site is suitable for housing-led development in line with local and national policy, it will be able to use the permission in principle to help to ensure that the site gets delivered. The NPPF already provides strong protections for the type of sites listed in these amendments, including the green belt, the historic and the natural environment. At its heart, the framework is clear that local authorities should plan positively to meet each of the economic, social and environmental dimensions of sustainable development. For example, paragraph 157 sets out that plans should identify land where development would be inappropriate and contain a clear strategy for enhancing the natural built and historic environment. Permission in principle does not change any of these existing protections. Local and national policy has always driven how local decisions are made, and the addition of a new route to obtaining planning permission does not change that. I suggest that setting out centrally what type of land may or may not be granted permission in principle would set an unwelcome precedent.

Noble Lords have tabled a number of amendments to Clause 136 that seek to restrict permission in principle to be granted for housing development only. Amendment 90, tabled by the noble Lord, Lord Beecham, is part of the group. Although I understand the desire to add more detail to the legislation at this stage, there are important reasons why it would be unwise to restrict the granting of permission in principle to housing development in the Bill. First, and most importantly, if we restrict permission in principle to housing only, we lose the crucial ability to facilitate mixed-use development. We are currently consulting on an approach that would enable permission in principle to be granted for housing-led development to allow for the possibility of mixed uses that are compatible with a residential environment. This means that as long as a site allocation is housing-led, local authorities will be able to grant permission in principle in line with local and national policy for other uses.

Lord Beecham Portrait Lord Beecham
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I will not ask the Minister to do so now, but will there be a definition in guidance about what housing-led actually means in terms of proportions of sites and so on?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Yes, my Lords. I can give an example of what that might include. It may be a retail community and office space. This approach is absolutely crucial to continuing to promote sustainable development and the delivery of balanced, mixed communities, spaces and places in line with the principles set out in the NPPF. We are currently consulting on this approach and we would welcome views about what would constitute a suitable proportion of housing and the compatible uses, in line with the noble Lord’s pre-emptive question. This will allow us to set out a sensible definition of housing-led development in secondary legislation.

Amendment 90 would also restrict the granting of permission in principle to brownfield sites only. I want to remind the Committee that the Bill will enable permission in principle to be granted to sites identified on the new brownfield register specifically to help to ensure that development takes place on these priority sites. We also intend to enable permission in principle to be granted on sites chosen and allocated by local authorities, parishes and neighbourhood forums within their local and neighbourhood plans. Restricting the granting of permission in principle to only brownfield sites in this context would greatly reduce the effectiveness of this measure and the freedom for local agreement on where development should take place as part of the plan-led approach.

Finally, my noble friend Lord Lansley asked whether new plans could automatically be considered for PIP. Once the secondary legislation is in place, our newly adopted plan could grant permission in principle. The choice about whether it should be granted will be a local one. I hope that, with those words, the noble Lord will feel happy to withdraw his amendment.

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Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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My Lords, I support the point just made that language is very important in this matter, but I am slightly disturbed by the noble Lord, Lord Greaves, saying that the language is too simple and talks down to people. What does it matter if the planning officers find it all so simple? I am a great believer that ordinary people should be able to understand the law. Therefore, it should be in as simple a form as possible and we should not worry about who feels that they are being talked down to. We have just had two conflicting statements on that, but I agree with the noble Baroness, Lady Andrews, that language is important.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I, too, agree that language is important and what might be talking down to one person might feel incredibly complex to another, particularly when it comes to planning, which lies outside the interest of most people and is of interest only when it affects them.

The effect of Amendments 90ZA, 95ZA, and 95BA, tabled by the noble Lord, Lord Greaves, is to replace “technical details consent” with “development details consent” to reflect his wish that applications following the grant of permission in principle should be determined in accordance with the existing rules relating to planning applications under Part 3 of the Town and Country Planning Act. I share his desire to ensure that an application that follows a grant of permission in principle includes a robust process that allows for consideration of development against local and national policy. We have set out our wish for an application for technical details consent to strike the right balance between securing such a process, while minimising unnecessary duplication at the permission in principle and technical details consent stages. We are currently consulting on how to get this balance right, and asking key questions about important matters such as information provision and involvement of communities and others.

Amendment 92HA allows me to explain the difference between permission in principle and local development orders. I apologise to noble Lords that I am slightly repeating myself, because I have just made this point in the previous group, but it is important to say again that local development orders are tools that local authorities use to grant detailed planning permission to specific development within a defined area. They are a particularly useful tool in unlocking problematic sites and play a vital role in regeneration. Local development orders and neighbourhood development orders will still have a role in allowing a local planning authority or neighbourhood groups to grant a more detailed planning permission for specific sites.

On Amendment 94ZA, we have taken a power to issue statutory guidance on the new system of permission in principle. We think that this is an important power as it will allow us to make clear to local authorities, developers, statutory bodies and the general public how the new system should work. The guidance will also help to make permission in principle fully accessible to all users, thereby placing strong expectations on how, where and in what circumstances permission in principle can be granted.

I turn to Amendment 94ZB. New Section 70(1A) as introduced by the Government will enable local authorities to refuse or approve an application for permission in principle. The amendment suggested by the noble Lord effectively removes the ability to make an application for permission in principle to the local planning authority. As I set out in my opening remarks, Clause 136 enables applicants to apply directly to their local authority for permission in principle and it is important to have this route, alongside being able to obtain it through a local plan, a neighbourhood plan or the brownfield register. Our intention is to make this option available for applications for minor development, specifically to help address the particular challenges faced by smaller developers, who often find that the cost of providing swathes of technical detail up front prevents them from entering the development market.

One of the ways that we can help to address this chronic housing shortage is by diversifying the housebuilding sector and encouraging small and medium builders and custom builders into the market. The permission in principle application route aims to help achieve exactly that, offering a route for smaller builders and even custom builders who can seldom afford to waste money on detailed planning information for sites that are unacceptable in principle to gain more upfront certainty and reduce the risk for them to enter the market. The permission in principle application route will be optional for applicants and will sit alongside other routes for securing planning permission. Permission in principle will be determined by local authorities in accordance with the development plan for the area unless material considerations indicate otherwise. We will be setting out minimum statutory requirements for consultation when an application for permission in principle is made to ensure that the local community and the statutory agencies are consulted before it is granted, closely following the existing requirements during the planning application process. In no way will the permission in principle application provide a route for applicants to push through unacceptable proposals. Instead it will be hugely beneficial to the SME market and could play an important role in helping to diversify the housing market.

Turning now to Amendment 94ZC, I am thankful to the noble Lord for his comments on how decisions to grant permission in principle are made. However, I do not think it is appropriate that permission in principle should be granted subject to conditions, because permission in principle is to provide simple certainty on the basic acceptability of the site early on in the process. As the permission in principle does not on its own authorise development, conditions at this point would unnecessarily complicate the process, although we expect local authorities to make clear when they give permission in principle the matters that they would expect to see covered in an application for the technical details consent, and we are currently consulting on how best to achieve this. The technical details consent application will provide the opportunity for the local authority to determine all further matters of the development in line with the local plan and other material considerations, subject to conditions. This is the appropriate time to impose conditions on how a scheme is to be delivered.

On Amendment 94B, I agree with the proposals put forward in the noble Lord’s amendment. That is why, in response, I draw attention to page 157 and more specifically to paragraph 11(2) of Schedule 12, which already makes the changes the noble Lord seeks to make with this amendment. I thank him once again for this debate and, in light of my comments, ask that he withdraw the amendment.

Baroness Andrews Portrait Baroness Andrews
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On the last point the Minister raised, when the permission in principle is allocated the local authority must advise the applicant what will be covered by the notion of technical details. It seems to me that much of what is driving this Bill is a concern for SMEs, possibly more than large developers. But SMEs will not have gone through the plan. They are bringing their applications forward, so they may have an eye on a site but they may not have any idea what that site is like. They certainly will not have done a site assessment. How, therefore, can the local authority be certain of the advice that it is going to give to that small builder about the technical details to be covered? As we keep saying, we do not want to waste money. That is part of the present system, so we are told. But surely there is a possibility that a small builder will engage with a site only to find that he cannot deliver because he cannot deal with the technical details which will be given to him at a later stage.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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The noble Baroness raises a vital point. The lack of some upfront costs will help the smaller builder because knowing what will be expected of him or her later down the process could enable that smaller builder to make a decision on whether or not to proceed with that application. I hope that that is helpful to the noble Baroness.

Baroness Andrews Portrait Baroness Andrews
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It does depend on the local authority and the small builder knowing what they are looking for. It may be, if it is a site that nobody knows about, that they will not know what they are looking for. This is one instance where, if we had the consultation and the response of people who are going to manage this, we would be in a much better position to know whether this is safe or not.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I hope the noble Baroness will engage with the consultation. In fact, her words tonight will form part of the consultation. All noble Lords’ suggestions are being taken forward to help shape policy.

Lord Greaves Portrait Lord Greaves
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My Lords, the problem is that getting permission in principle will not provide certainty. All it will provide is certainty that you can go on to the next stage where the hard work will have to be done and paid for and the application might be turned down. The Minister keeps talking about the fact that conditions can be put on and applications can be amended at the technical details stage. That is absolutely right but they can also be thrown out, and the problem that some of us, including the noble Baroness, Lady Andrews, are trying to grasp is that some of the things which will be discussed at technical details stage are regarded as something that should be discussed at outline planning stage. They are matters of principle such as the question of whether you can get proper safe access to the site and the matter of ecology on the site. The proposal that has been put forward is that you can get planning permission in principle for such a site but then there are technical details that have to be dealt with, so it does not stop the cost. It might even cost small builders more because they are being led down the garden path with permission in principle and then they are being stopped when they get to the privy at the bottom, whereas at the moment they would be stopped halfway down the garden path. So this needs to be thought out.

As a ward councillor I am currently engaged peripherally in discussions for a small planning application for about 24 houses. The development has had full planning permission but the developers decided it was not viable as set out so they have come back with a changed application. Discussions are now taking place which are delaying the whole thing, but the purpose is to get it passed in the end. Some of the discussions are taking place because residents in nearby flats, assisted by me and other councillors, are complaining about some of the properties just behind them being too high and too big. Meanwhile, the developer is saying that it is still not viable and they want another one. So discussions are taking place at the moment on the minor detail of changing the design of one of the houses, perhaps putting another house in a corner where there is not one.

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Lord Beecham Portrait Lord Beecham
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My Lords, I rise with, I promise, uncharacteristic brevity to speak to Amendments 93 and 96, which are tabled in my name and that of my noble friend Lord Kennedy. These amendments relate to time. Amendment 93 relates to new Section 59A(4), which states:

“Permission in principle … takes effect when the qualifying document is adopted”,

and, critically, goes on to say in new paragraph (b) that it,

“is not brought to an end by the qualifying document ceasing to have effect or being revised, unless the order provides otherwise”,

which strikes me as somewhat peculiar provision. My amendment would ensure that the provision in principle expired when the plan was no longer relevant or had been replaced. It limits the time to circumstances when it remains relevant or has not been replaced.

Amendment 96 again relates to the time factor, because the somewhat convoluted proposed new subsection (2ZZC) says:

“Subsection (2ZZA) does not apply where … the permission in principle has been in force for longer than a prescribed period”.

That is what the Bill currently says. The amendment seeks to put a limit on that period of five years, so there would have to be development within a five-year period. That seems perfectly reasonable given what we already know about the vast number of outstanding permissions which are not acted on, and which therefore of course do not contribute to meeting housing or indeed any other needs.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, the effect of all four Amendments 90A, 95C, 96ZB and 96 would be to put a timeframe in the Bill to allow local authorities to reopen the principle of development when determining an application for technical details consent after a permission in principle has been in place for three years.

Proposed new Section 70(2ZZC), as introduced by the Government, will give local authorities the ability to re-examine the principle of development when a permission in principle has been in place for longer than a set period and where there has been a material change in circumstance. I assure noble Lords that we intend to set out a suitable period for when the principle of development could be reconsidered in secondary legislation. We are currently consulting on the duration of a permission in principle granted either on allocation in a plan or on application to a local authority. To set the duration of permission in principle in secondary legislation rather than in the Bill is a prudent approach, because it gives us a better opportunity to ensure that this model works as intended and for the Secretary of State to keep it under review and respond as appropriate.

Amendment 92J would have the effect of removing the ability to prescribe the type of development that can be granted permission in principle in secondary legislation and—taken with some of the other amendments tabled by the noble Lord to this clause—would limit permission in principle to housing development only. Once again, I understand the desire to place detail in the Bill. However, as I have already set out, there are important reasons why permission in principle should not be restricted in this way. The power that Amendment 92N seeks to remove is there simply to ensure that permission in principle is consistent with the existing system. This is important as it minimises complexity, and for this reason, I ask the noble Lord to consider not moving this amendment.

On Amendment 93, I will briefly explain to noble Lords our intentions behind proposed new subsection (4)(b) in Clause 136 on the duration of permission in principle. We have no intention of allowing permission in principle to exist in perpetuity. We are intent on setting out a sensible duration and are currently consulting on the option of setting that limit at five years. Proposed new subsection (4)(b) would give us important flexibility to ensure that, in appropriate circumstances, where a plan or a register is more regularly revised or updated, it does not automatically mean that permission in principle comes to an end.

Lord Beecham Portrait Lord Beecham
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Did I hear the Minister correctly? She indicates that she is thinking of a five-year period, but how would that be provided for? It does not seem to be in the Bill—will it be a matter for regulation, and whence would that authority derive?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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The noble Lord is right; as I just said, we are currently consulting on setting the limit at five years. Does that answer the noble Lord’s question or am I answering a totally different one?

Lord Beecham Portrait Lord Beecham
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Does the Minister mean that she is thinking about a government amendment to this clause on Report, or will that be determined by regulation?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, I am saying that we have no intention of setting it out in perpetuity; we are consulting on what the length of time would be and on the option of setting the limit at five years, which would indeed be set out in secondary legislation.

Lord Greaves Portrait Lord Greaves
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On the question of five years, if I remember correctly, the limit for outline planning applications and full applications used to be five years, and the limit for outlines was reduced to three years precisely to encourage people to get on with development and apply for reserved matters. Is it not the case that going back to five years for planning in principle before technical details are required could result in the process slowing down, which is the opposite to what the Government want?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I take the noble Lord’s point; I hope that all that would come out in the consultation and that we would arrive at a sensible period of time.

On Amendments 93A and 92K, in answer to the points raised about permission in principle applying to existing local and neighbourhood plans, I hope that I can make some helpful assurances. I make it clear that permission in principle, granted on allocation in locally prepared plans and registers, will apply only to those adopted once the permission in principle measure is fully in force. The Government have no intention to apply the measure retrospectively to site allocations in existing local development plans. It will be possible to grant permission in principle only going forward, so existing plans and site allocations will not be affected. My noble friend Lord Lansley asked what would happen to plans that are in evolution. Local authorities can go back and review their plans to put permission in principle to effect. I am making the point that it cannot be done retrospectively, which has been a concern.

Lord Greaves Portrait Lord Greaves
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While we are on this, in principle—I hate to use that word here—there might be no reason why, if the local plan has been put together in a very thorough way with lots of public consultation, it should not apply, once it is adopted, perhaps next year or later this year, to permission in principle. The problem is, as the noble Lord, Lord Lansley, and the Minister said, that because of the way in which local plans are put together at present, very often there is not much public involvement about particular site allocations because people always think, “That’s been allocated for housing for ages so it’ll be allocated again, and we can always get involved and object if and when there’s a planning application”—and people hope that there never will be. If a local plan involving site allocations, whether it is the whole local plan or just the site allocations document, is almost or half-way ready to go to inspection, and the sites have more or less been agreed, and then there is the question of whether that plan, once it is adopted, should qualify for PIP, if the Minister is saying, “The local authority might have to go back and review it”, and if that then involves having a greater degree of public involvement and neighbour consultation than has taken place so far, that will delay the plan. Can the Government give a guarantee that under those circumstances they would not then penalise the authority for not meeting deadlines in production of the plan?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

My Lords, there is no intention to penalise local authorities; the Government made it quite clear that this would not be retrospective but could be reviewed as time went on. The noble Lord makes his own case when he talked about local people not being involved in the planning process. In fact, there is every evidence that the local planning process has vastly increased engagement from local communities, so I think it is a very good system, and I hope that local people get involved.

I turn to Amendment 93B. I assure the noble Lord that, as I said, we intend to set out a sensible period of when permission in principle ceases to have effect in secondary legislation. Setting the arrangements out in secondary legislation is more prudent, allowing us to consult and explore this further so that we can get the approach right.

Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

I do not disagree with that at all.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

If I could just complete this point, the noble Lord can come in afterwards. On Amendment 93C, I reassure the noble Lord that we are consulting on the application process for the technical details consent. We envisage that the process will draw on the existing planning application process set out in Part 3 of the Town and Country Planning Act of 1990. However, because the permission in principle, followed by technical details consent, is a different route to obtaining planning permission, it would be inappropriate to place a requirement in the Bill that fully duplicates the current full planning permission procedure at the technical details consent stage.

We will be setting out the application process for technical details consent in secondary legislation once our current consultation closes, and, as I have said today, I will be very interested to hear views from noble Lords. I invite the noble Lord to withdraw his amendment.

Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

It would be very helpful to have a bit more information about some of the Government’s thinking on the secondary legislation to which the noble Baroness referred several times. That is what I was trying to intervene on. It is very difficult to know how the process is going to work and to understand it without knowing at least some of that. I accept that some of it is in the technical consultation, but not all.

Can the Minister tell us the relationship between pieces of land which have permission in principle and other planning applications that might be made on those pieces of land? Is the existence of the permission in principle a material consideration in the consideration of another planning application for a different use? If that planning application is granted, does the permission in principle on that land lapse, or would there be two permissions of a different sort side by side?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

My Lords, I do not think that a local authority would want to put a permission in principle on a site that already had an application for another use, but that would be up to the judgment of the local authority, particularly in planning for housing.

Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

I am sorry to pursue the detail, but it is important. There might be a permission in principle on a piece of land that has been there for three or four years, and nothing has happened, and someone comes along and wants to develop it for something different. That is the sort of situation I am thinking of, in which the permission in principle is historic on the land, as it were, and it is a new application. Perhaps the Minister will write to me on that. I beg leave to withdraw the amendment

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Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I support Amendment 91 and the amendments down in the name of the noble Lord, Lord Greaves, and I simply express the concern about the lack of clarity around the permission in principle process and the technical details stage. I had a very useful session with the policy and Bill team, and a brief one with the Minister about this, and I think that a considerable amount of greater clarity could be given for the benefit of the Committee about what issues will be taken into account at permission in principle stage and what issues will remain for the technical details stage, and what consultation will take place at both these stages.

I will briefly deal with the content of each stage and the consultation separately. I keep banging on about the need for a flow chart that demonstrates the steps in this process, and I hope that the Minister is going to provide us with that. Very strong assurances were given that the permission in principle could not go ahead if the site was not compliant with the NPPF. But I think that it would be of benefit to noble Lords if it could be spelled out in exquisite detail exactly what that would imply in terms of the sorts of issues that would be resolved at permission in principle stage, and assurance given that they would be also subject to full statutory consultation, including the statutory consultees, because that is the point at which both government agencies and others, and indeed the public, can be alerted to the possibility that a local authority will be granting permission in principle for a site.

At technical details stage, it is absolutely important—and I endorse what has been said by other noble Lords—that if we are going to be able to give developers the security that permission in principle needs to provide if it is not going to be a hollow process, we need to have resource to some of these hugely important details, which are contained in the NPPF. We need to be sure that local authorities are giving themselves sufficient assurance that things like flood risk, roads, contamination, nature conservation and other infrastructure issues are being dealt with adequately to give the local authority the security to assure developers that permission in principle can be granted. So the technical details stage genuinely becomes simply for the fine-tuning of the site, rather than trying to deal with some of these basic issues, at a point when permission in principle has already been granted on an adequate basis. That would also help with the current proposal that technical details would be subject only to discretionary consultation—that local authorities could decide how much and how far they wanted to consult on the technical details. If they genuinely are fine-tuning, I could just about live with discretionary consultation at that stage. But if they are at all going to deal with fundamental issues, which ought to have been dealt with at permission in principle stage, it would be important that full-scale consultation was required of local authorities at the technical detail stage, and not left for local discretion.

So I ask the Minister: before we reach Report stage, can we please have my flow chart? I think that that will reassure the Committee that permission in principle is not a hollow process, and that if permission in principle is granted by a local authority because a site is in the local plan, in the neighbourhood plan or in a brownfield register, it has also taken sufficient steps at the point of deciding that it is going to grant permission in principle to have taken account of all these hugely important issues at that stage and fully consulted on them.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

May I start on a cheery note and reassure the noble Baroness that I did send the flow chart out with the details of the regulations? I do know that some noble Lords on the Benches opposite did not seem to get it. It will go into the Printed Paper Office. I have some copies here and the noble Baroness can avail herself of one. I hope that she is content with that.

I must say to the noble Baroness that we have spent many hours discussing the process of PIP and, if I do not answer all of her questions, perhaps she could look through Hansard and get back to me. Some of what I am about to say may also give her reassurance.

When permission in principle is granted through locally prepared plans and registers, local authorities will choose which sites they grant it to as part of their existing plan-making and site-allocation work. This choice will therefore be a local one, reached through rigorous involvement of communities and members within the current plan-making process. For the application route for minor development, following the existing planning application process, local authorities will be required to determine applications for permission in principle in accordance with the development plan for the local area, unless material considerations indicate otherwise, after a period of consultation with the community and statutory bodies.

The noble Baroness, Lady Andrews, asked me what “describe” meant. It means the setting out of expectations about what will be covered in a later application underpinned by evidence. That is my understanding of what “describe” means.

Amendment 94 would include in the Bill that information included on the planning register would be subject to consultation with local authorities. Under the current system, local planning authorities are already required to hold and maintain a planning register of all planning applications. The power in subsection (7) of new Section 59A, inserted into the Town and Country Planning Act by Clause 136, will merely require local authorities to add to the planning register information about permission in principle granted through locally made plans, registers and applications. The information to be placed on the register will be the same as they are currently required to publish or make available for standard planning applications.

On Amendments 95 and 95B, permission in principle will agree and establish the fundamental principle of development for location, uses and amount of housing development. Section 70(2ZZA), as introduced by the Government into the Town and Country Planning Act through this Bill, means that when the local authority determines an application for technical details consent, it cannot revisit the fundamental principles agreed by the permission in principle. The noble Baroness, Lady Andrews, pressed me again on what technical details might look like. They might look like matters relating to the design, affordable housing, inappropriate mitigation or, conversely, appropriate mitigation.

Lord Greaves Portrait Lord Greaves
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Does that include access to the local highways?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I do not think that the site would get permission in principle if there were no access to the site. That would be one of the fundamental principles for a site to be suitable for permission in principle. But I will get on to that.

If accepted, the amendments would have the consequence of allowing the local authority to reconsider the fundamental principles when considering an application for technical details consent. That defeats the purpose of the measure and undermines the certainty that it aims to give, because it allows other material considerations to become relevant during the decision-making process, as is currently the case. There would therefore effectively be no change.

However, I want to make it very clear that in determining an application for technical details consent, although the local planning authority will not be able to revisit the fundamental principles of development, it will be required to consider all the details of the application fully against the National Planning Policy Framework. The noble Baroness asked at what point; the NPPF is relevant the whole way through and local policy is also relevant. I re-emphasise that technical details consent can therefore be refused if the detail is not acceptable. Permission in principle is a tool that will allow the basic suitability of a site to be established early. What it will not do is override the need to ensure that proposals are sustainable, create mixed and balanced communities and include any necessary mitigation measures.

The noble Baroness pressed me on what would happen if technical details consent cannot be granted for a scheme. I hope that I have set out the rigorous process of consideration and engagement that will be followed to grant PIP and in that context, the scenario when no scheme can be given technical details consent, is an extremely rare one. But if it does occur, in those rare circumstances we have made provision for PIP granted on application to be revoked or modified.

Baroness Andrews Portrait Baroness Andrews
- Hansard - - - Excerpts

That is the first time we have heard that. Does that mean that there can be changes to PIP if the technical details require it? Would that mean that there could be an even lower number of houses or a slightly smaller site?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

I understand that it could be modified in an extreme circumstance such as that. This is a rare circumstance, but I understand that that is the case.

On the revoking of a PIP granted by a local plan or brownfield allocation, the noble Baroness makes a good point. The Bill does not currently make provision for this, as she has told me again and again. Can I take that away and thank her for her points? She also asked me to confirm absolutely that only local authorities can be responsible for the granting of permission in principle. Yes, that is the case.

Lord Beecham Portrait Lord Beecham
- Hansard - - - Excerpts

The Minister has just made a concession and agreed to my noble friend’s point, but she talks in terms of revocation. Is it not necessary also to provide for variation?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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The noble Baroness has raised something that I have said I will take away. I will also take away the noble Lord’s point because it is not particularly provided for in the Bill. Will the noble Lord and the noble Baroness let me take that away and reflect on it?

On Amendment 96ZA, an important starting point is that permission in principle will be granted where a proposal accords with the development plan for the area, having regard to the National Planning Policy Framework, as I have said, alongside other material considerations. When choosing appropriate sites that may be deemed suitable for a grant of permission in principle through a local plan, local authorities will be able to draw on a wealth of information to determine whether that site is suitable. That includes information gathered to support their local plan, a strategic housing land availability assessment, local knowledge of areas of constraint, engagement with communities and statutory bodies, and other information. That will all be underpinned by consideration against local and national policy.

It is possible that on the basis of that assessment a local authority could conclude that granting permission in principle would not be appropriate, either because the site is unsuitable—which goes to the point made by the noble Lord, Lord Greaves—or, in exceptional cases, that the fine detail of the scheme needs to be worked up before a decision can even be reached on the principle of development. I hope that what I have set out is a sensible basis for deciding whether to grant permission in principle. I remind noble Lords that it must be followed by a grant of technical details consent before development may commence.

I turn to Amendments 96ZC, 96ZD, 96ZE, and 96ZF, which provide by condition for the assessment of flood risk, highways and access, contaminated land, and securing of appropriate infrastructure through either Section 106 contributions or the community infrastructure levy. I hope that I have put the noble Lord’s mind at ease over the course of my remarks as I have described in more detail how permission in principle will operate—specifically that it will still include consideration of these important matters through an assessment against local and national planning policy.

Specifically on conditions, I hope that my comments on Amendment 94ZC set out the Government’s thinking on the timing for the use of conditions. Permission in principle is to provide simple certainty on the basic acceptability of a site early on in the process. As it does not on its own authorise development, conditions at this point would unnecessarily complicate matters, although we would expect local authorities to make clear, when they give permission in principle, the matters that they would expect to see covered in an application for technical details. On the community infrastructure levy, I confirm that, where it is in place, it would become payable once technical details consent has been granted, as is the case when full planning permission is given.

Finally, Schedule 12 is a list of consequential amendments that we have made to the Town and Country Planning Act and other planning legislation. This accompanies Clause 136 and is important for ensuring that permission in principle, as a new route to obtaining planning permission, operates effectively alongside the existing system. I will therefore press that Schedule 12 stands part of the Bill.

Baroness Andrews Portrait Baroness Andrews
- Hansard - - - Excerpts

I am very grateful for the noble Baroness’s response. I will read Hansard properly because I want to make sure that I heard her correctly. I will ask her one question, because she is being so generous. One of the technical details that really bothers me is the notion that affordable housing should come at the technical details stage. Is there any possibility that she could consider, when we talk about the 30% to 40% of affordable housing that we want to see in developments, making that a subsection of that stage? It is not of the same order as drainage and environmental considerations.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

I hope that I can reassure the noble Baroness that that is certainly one of the things that could be part of that stage. I could perhaps come back to this on Report, but it is certainly one of the examples of what could come forward.

Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

That was very interesting and we are making a bit of progress. I will put a particular instance to the Minister. It is based on real life, but I shall not say where it is. There was a big application for 500 houses—that is huge by east Lancashire standards. It has outline planning permission. As part of that, it required details of access. The highways authority—it is a two-tier area, so a county council—was required to approve access off not only an existing main road, but I think the roundabout on to that road. It also required a contribution towards improvements to a roundabout further down the road to increase its capacity on to the motorway. That all happened at the outline planning stage. Where would that happen under PIP and technical details? When will it happen? What is the process by which it would happen? Would that be part of declaring that that piece of land was okay for permission in principle, or would it have to wait for technical details?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

My Lords, the noble Lord will know that outline planning permission is entirely different from permission in principle, but if a site required significant infrastructure investment to access it, it is unlikely that that would be a simple permission in principle site.

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Lord True Portrait Lord True
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My Lords, we are reserving remarks about the register until later, so I am puzzled about the register and the point of it and what we will actually do with it when we as a local authority have it, as I said earlier. I agree with what has been said about design, but I also hear what has been said about sustainability. The only thing I would say is that some of the ugliest properties that I have ever seen passed the highest sustainability tests—the wonderful eco-house that is completely jarring in its setting. There are tensions between design and sustainability. That of course leads me back to local rather than national determination. We have to tease out some of these things before putting them in the Bill.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

My Lords, turning first to Amendments 92C and 97B, I fully understand the desire of my noble friend Lord Rotherwick to protect land which is an important part of national infrastructure, including the network of aerodromes, in which I am aware the noble Lord has a particular interest. I will briefly set out why adequate protection for these sites will remain without the need for the amendments proposed.

To be clear, Clause 136 will enable permission in principle to be granted on sites that local planning authorities, parishes and neighbourhood forums consider to be acceptable in line with local or national policy. The National Planning Policy Framework is very clear that, when planning for airports and airfields, they should take account of their growth and role in serving business, leisure, training and emergency needs. Therefore, if a local authority considers that a site is not suitable for housing-led development in line with national and local policy, it need not allocate it for such use in its local plan or go further to grant it permission in principle.

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Baroness Morris of Bolton Portrait The Deputy Chairman of Committees (Baroness Morris of Bolton) (Con)
- Hansard - - - Excerpts

My Lords, if Amendment 92HB is agreed to, I cannot call Amendments 92J to 92M inclusive for reasons of pre-emption.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

My Lords, I thank the noble Lord, Lord Shipley, for his comments on Amendment 92HB. The Government have been clear from the beginning that they consider the qualifying documents capable of granting permission in principle to be limited to development plan documents, neighbourhood plans and brownfield registers. But I agree that it might provide more certainty and assurances to the industry and the key stakeholders to go further and specify these documents in the Bill in the way the noble Lord has proposed. I am happy to take the issue away and look at how we can draft an appropriate government amendment on Report that carefully sets out the documents that are capable of granting permission in principle. With these firm assurances, I ask the noble Lord to withdraw his amendment.

On Amendment 92M, it is extremely important that the wording in the definition of “qualifying document” in new Section 59A(2)(d) remains. This enables permission in principle to be granted for the particulars of the development set out in a site allocation. We currently intend that these prescribed particulars will be limited to use, location and amount of development, and a qualifying document must include that detail if the site is to benefit from the grant of a permission in principle. We are currently consulting on the matters that can be granted permission in principle and will be setting these out in secondary legislation. With those comments, I ask the noble Lord not to press this amendment.

Lord Shipley Portrait Lord Shipley
- Hansard - - - Excerpts

My Lords, I am grateful for the Minister’s reassurance on the matter and look forward to learning more when we get to Report. In the mean time, I beg leave to withdraw the amendment.

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Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

My Lords, the effects, implications and consequences of the planning in principle and technical details regime for consultation with ordinary members of the public, whether they are residents, members of interested groups or whatever, is one of the more alarming parts of the proposed PIP system. I congratulate the noble Lord, Lord Beecham, and the noble Baroness, Lady Andrews, on tabling Amendment 96ZBA.

My Amendment 100ZAZC is about notifications and publicity. This is something that we need to get to the bottom of before this matter leaves your Lordships’ House—although I do not imagine before it leaves Committee—and not wait for the consultation. What is set out in the technical consultation document is not very satisfactory. I will explain why in a minute.

My amendment would insert a new subsection into Section 65 of the Town and Country Planning Act 1990. It says:

“A development order which makes provision under subsection (1)”,

in setting up the new permission in principle system,

“must also provide that … any requirements relating to applications for outline planning permission also apply to applications for planning in principle”.

The technical document suggests that that is the Government’s view, too, although I can see huge problems with consulting residents over permission in principle, because they will come up with all kinds of comments, objections and concerns that will be ruled out of order as nothing to do with the very limited parameters of permission in principle. There will be problems, but I think that what the Government propose to do is okay as it stands.

Any requirements relating to applications for approval of reserved matters also apply to applications for technical details consent. This is a matter for alarm and I will come to it in a minute. My amendment states:

“when compiling a register under section 14A of the Planning and Compulsory Purchase Act 2004”,

—that is, a brownfield register—

“the local planning authority must have regard to the requirements for notices, publicity and the issue of certificates that apply to applications for planning permission and carry out procedures to the same effect”.

If a local authority is setting up a brownfield register, and if at least part of that register is going automatically to grant permission in principle, the requirements for putting a notice on a piece of brownfield land and writing to immediate neighbours—or whatever it is that the local planning authority would do if this were an ordinary planning application—must apply. If they do not know it is happening, by the time it has happened it will be too late. It will not be the same as a local plan, where there are at least general attempts to publicise it and to get people to say what they think about it. In the case of just putting a piece of land on a brownfield register, the systems for telling people what is happening and giving them the chance to have their say must be the same as if this were a planning permission.

My amendment continues:

“a local planning authority that is proposing to make site allocations for use of land in a local development plan that would, if made, result in the granting of permission in principle, must carry out notifications and publicity equivalent to that which is required when an application is made for outline planning permission.””.

Earlier, the Minister said there was evidence that lots of people were getting involved in local plans nowadays and that that was very successful. It is true at neighbourhood plan level, but I do not believe it is true at local development plan level—a process which tends to take place remote from most people. Unless people are told directly that a particular piece of land is going to be allocated for housing in the local plan, they will not get involved and then, by the time they want to be involved, it will be too late.

So what is wrong with the technical consultation? The government document reads:

“Before an application for technical details consent is determined, we do not propose to require by secondary legislation that local planning authorities consult with the community and others before making a decision”.

It goes on to say that local authorities can do so if they wish:

“While we think that it is important for appropriate further engagement to take place at the technical details consent stage, we consider that centrally mandating what should be done risks unnecessarily repeating engagement and takes away an important local flexibility”.

This is very dangerous. It means that a local planning authority simply will not have to do all the usual neighbour notification and public consultation that it has to for a planning application, even if it is a reserved matter. If this happens, it will mean that a lot of people will not know what is being proposed and will not have the opportunity to have their say. It will reduce very substantially the effective involvement in local planning applications that takes place at the moment. I hope that the Government will seriously reconsider this.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

My Lords, I turn first to Amendment 96ZBA. The NPPF and our planning practice guidance stress the importance of early pre-app engagement. Under the current planning application process, applicants often voluntarily engage with local communities when developing their proposals. This can help ensure that development is locally supported and makes for a more positive application process. In the same way, applicants will be able to engage the community, as they often do, in their detailed design at technical details consent stage.

We introduced compulsory pre-app consultation for onshore wind development above an appropriate threshold through provisions in the Localism Act 2011. This was to ensure that early community engagement took place to improve the quality of proposed onshore wind development, helping to ameliorate local community concerns and perceptions towards these types of projects. We have not extended the compulsory pre-app development to any other type of planning permission, and therefore I do not see the case for extending it to technical details consent.

I assure the noble Baroness, Lady Andrews, that we envisage that the technical details consent stage will draw on the existing planning application process, including arrangements for publicity. We are currently consulting on the application process for technical details consent. We welcome the views and expertise of noble Lords to help us to develop arrangements set out in secondary legislation. As regards the consultation on technical details consent, we do not explicitly propose to require that local authorities consult on an application for technical details consent, but we are seeking views on encouraging consultation to take place through statutory guidance to the extent that local authorities consider appropriate views.

Amendment 100ZAZC would add publicity and consultation requirements before a grant of permission in principle. I hope that the noble Lord will be reassured to hear that we intend to set out publicity and consultation requirements before a grant of permission in principle. The Bill already provides for us to set this out in secondary legislation. This will be the case whether permission in principle is granted through a locally prepared plan or on application.

We are also currently consulting on the application process for technical details consent. As I set out in relation to Amendment 96ZB, we envisage that technical details consent will draw from the existing planning application process. However, because the permission in principle followed by the technical details consent is a new route in obtaining planning permission, it would be inappropriate to place a requirement in the Bill that fully duplicated the current outline and reserved matters stage. As I mentioned, we will set out the application process for technical details consent in secondary legislation once our current consultation closes. I would be extremely interested to hear noble Lords’ views on how to strike the balance between the permission in principle and the technical details consent stage.

Amendment 96F is intended to ensure that local communities and others are consulted by local authorities before land is included in their registers. I understand the noble Lord’s concern and agree that an appropriate level of consultation will be important when authorities are preparing and updating their registers. However, local authorities will be expected to assess the suitability of all relevant sites for inclusion in their registers. As part of that process, we will also expect them to identify which of those sites they consider suitable for permission in principle for housing. Where an authority proposes to grant permission in principle for housing on sites in registers, consultation will be mandatory. As I said earlier, regulations will set out the procedures to be followed. Where authorities do not intend to grant permission in principle for a site included in a register, we propose to give them discretion to consult their local communities and interested parties about those sites. This approach recognises that local planning authorities are best placed to determine whether consultation would be helpful, and it provides authorities with flexibility to adapt their approach in particular circumstances. I hope that with those comments, noble Lords will feel free not to press their amendments.

Baroness Andrews Portrait Baroness Andrews
- Hansard - - - Excerpts

My Lords, I must confess that I am a bit confused. I will have to read Hansard carefully. At the moment, we have a pre-application process which is robust and successful, and local authorities engage with that successfully, because, essentially, a good development has the support of the local community. These will be massive housing developments in some cases and they will require the local communities to be happy with what will be on offer. Of course the local authority should make the decision but I hope that we would have some discipline around this so that, as the noble Lord, Lord Greaves, says, we will not go down a path where less and less influence is exercised by people who have to live alongside or even within these developments.

Having said that, of course I will withdraw the amendment, but this is a very important part of the Bill. I am not certain that I like the idea of your Lordships being entirely responsible for the secondary legislation, as we seem to be increasingly asked to be. We need to know how people who will have to administer this measure feel about it. That is why we need to know local authority views on these things. Clearly, we will think again about the measure before Report. I may seek a meeting with the noble Baroness to see whether we can tease out this issue with some degree of certainty, because it is very important. I beg leave to withdraw the amendment.

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Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

My Lords, I tabled this as a sweep-up, in case we had missed something. I am not sure there is anything, but there may be one or two things. I was going to put it in a group, but the Labour Party said they wanted to keep it separate. Perhaps they have got something to say.

A couple of questions have occurred to me during the debate. One of the curiosities of getting planning permission is that anybody can apply for it for any piece of land. Is that also going to apply to permission in principle? That is something for the Minister to think about.

The second question is slightly more substantive. We are told that permission in principle is just for housing, in the Bill or anywhere else. There may be other things associated with housing development, such as shops or local offices, but so long as it is housing led that is okay. In local development plans, allocations of land are usually for housing. In most cases, they do not say “housing with shops”. When it comes to applying for planning permission, if people want a little area in the middle of the housing with two or three shops, everyone says that is wonderful and gives permission for it. How will permission in principle work in terms of categories? Will it have to be in the local plan, or the brownfield site register, that it is housing with associated ancillary things? If so, categories in local plans are going to have to be substantially revised. I just thought of that question and it seems to be a practical thing that needs to be looked at.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
- Hansard - -

I confirm to the noble Lord that it would have to be categorised as housing-led development. For permission in principle to be granted, it would have to be categorised by size, location and type of development. I hope that reassures the noble Lord.

I hope that, through the course of this evening, I have been able to demonstrate that, rather than removing the role of local authorities and communities, the true aim of the measure is to help them in developing their plans. I have given assurances that the choice of where and to what permission in principle is granted is a local one, taken by local authorities or neighbourhood forums through their existing plan-making process. I hope the noble Lord now feels able to withdraw his opposition to Clause 136.

Clause 136 agreed.
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Lord Campbell-Savours Portrait Lord Campbell-Savours
- Hansard - - - Excerpts

I support this amendment, because I recognise why this measure was introduced. In parts of the north of England there were lots of shops closing. You could look down a high street and see the first floor of many retail units completely empty. Sometimes they were boarded up, or with ripped curtains and dusty windows: totally unoccupied. The issue has only been one of flexibility. The mistake was that we did not allow local decision-taking. With that at the beginning of the process, this problem would have been avoided.

The statistics on the numbers involved must be available. I presume that the number of units converted from commercial to residential will have entered into the national housebuilding statistics. Can the Minister tell the Committee the exact number involved?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, Amendments 99 and 100 would insert into the Bill requirements on local authorities and others where there are already appropriate protections in national planning policy and guidance to address these issues. National planning policy already incorporates elements of the agent-of-change principle by making it clear that existing businesses wanting to develop in continuance of their business should not have unreasonable restrictions put on them because of changes in nearby land uses since they were established.

The Government recognise concerns about the impact of new residents moving into an area with an established live music venue. As the noble Lord said, my ministerial colleagues met industry representatives in January to discuss this matter. We have responded to their concerns by including a provision in the office-to-residential permitted development right. This enables local authorities to ensure that mitigation measures address noise impacts from existing businesses on the residence. It will both help to protect residents’ amenity and to ensure the sustainability of established businesses.

The noble Lord asked about Scotland and Wales. Of course, planning is devolved there. He also asked if there is a plan to apply new prior-approval measures in relation to noise impact to new builds and not just to buildings undergoing a change of use. The permitted development rights take effect on 6 April and apply to changing the use of buildings from office to residential. The application for new build residential property will be considered under the NPPF, which incorporates elements of the agent-of-change principles. The noble Lord also asked if the regulations will only allow local authorities to take noise into account, not oblige them to do so. The regulations allow local authorities to take account of noise where it is relevant rather than obliging them, because that would be an inflexible requirement.

Lord Foster of Bath Portrait Lord Foster of Bath (LD)
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My noble friend Lord Clement-Jones asked a further question about the retrospective nature of the very welcome government proposals. I absolutely appreciate the real difficulties with retrospective legislation, but what advice and guidance will the Minister give to those music venues which will be affected before the change comes into effect? Can she also say what changes she will make to the guidance being given to local authorities?

So that the Minister is aware how serious this is, it is worth reflecting on the situation of the Fleece in Bristol, which started the campaign to change this. Chris Sharp, who led that campaign, points out that although he is pleased with the Government’s announcement:

“The irony is that the venue that was doing the most to change the law is being left out in the cold”.

It continues to have a problem.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I will write to the noble Lord with details of the revised guidance and in response to the other questions he asked.

Amendments 101A and 101B would allow local authorities to consider the local community’s views and local and neighbourhood plan policies on a wide range of matters under the office-to-residential permitted development right. This has provided greater certainty for developers and has successfully encouraged more development, delivering much needed new homes. As my noble friend knows, where there is a localised impact on the office market, councils have power to remove permitted development rights. The Article 4 direction process provides more robust safeguards than the council resolution proposed by the amendment.

I have heard noble Lords’ words about the impact of this. I understand that 1,600 new homes were developed in London under PDR in 2014, and 8,000 in total. I also understand that it does seem, as the noble Lord, Lord Kerslake, said, to be a problem in particular areas of the country. My noble friend and I have spoken about this, and although in Trafford, PDR is very welcome, it is clearly having an adverse impact in Richmond. I suggest that as the hour is late I meet my noble friend and the noble Lord, Lord Tope, before the relevant part of Report to discuss this further. I am not promising that we can move any further forward—and I understand what my noble friend said—but perhaps we might make some progress.

Moving to amendments 100ZAZA and 100ZAZB. I understand that Amendment 100ZAZA would insert specific requirements for local authorities to consider where permitted development rights allow for the change of use to residential. The amendment is not appropriate and would impose inflexible and unnecessary burdens. Permitted development rights strike a balance between encouraging development by providing greater certainty and allowing local consideration of specified matters. Such matters will depend on the building changing use to residential use. Where there are wider concerns, of course local authorities can make an Article 4 direction.

Amendment 100ZAZB aims to remove the local authority’s liability to pay compensation where an Article 4 direction is issued with immediate effect. It will also allow the local authority to charge a planning application fee where an Article 4 direction requires a planning application to be submitted. Where a local authority brings forward an Article 4 direction, the current compensation provisions, alongside the exemption from paying an application fee, strike a fair and appropriate balance. They recognise that a national right is being withdrawn for development that is considered acceptable while ensuring that the local authority’s liability to pay compensation can be limited.

That said, I reiterate my offer to my noble friend and the noble Lord, Lord Tope. I realise that what I have said may not have satisfied them, but I ask—

Lord Campbell-Savours Portrait Lord Campbell-Savours
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It is very good of the Minister to offer meetings, but we are on the eve of the Recess. The first day we come back we are into Report.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I said I would meet them before Report. This part will not come to Report on day one, which is why I made that offer.

Lord Beecham Portrait Lord Beecham
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Perhaps the Minister will bear with me. She is offering to meet, which is desirable, but does that embrace the two amendments in the noble Lord’s name? Amendment 101A is about local determination and Amendment 101B is about compensation to businesses. Would both those things be on the agenda?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I think my noble friend’s principal concern is the effect on Richmond of the permitted development right, but if he wishes to discuss compensation, of course I will discuss it.

Lord Campbell-Savours Portrait Lord Campbell-Savours
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In the event that the Minister meets her officials during the Recess, instead of meeting the two noble Lords, she might care to write to us all and tell us what recommendations are being made. It might save us a lot of time.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, I am very happy to write to noble Lords on the back of a discussion.

Lord Beecham Portrait Lord Beecham
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I am sorry to press the Minister, but important though Richmond is, it is not the only place where this is happening. She may not be able to answer this question now, but I hope that the Government have details of what is happening up and down the country on this front. They have imposed this policy across the country; they ought to know what is happening. It would be helpful for those discussions to be a little broader, with all due respect to the noble Lord. The Minister may want to open this up to other Members of the House, because there will be people from different parts of the country whose own experience would be quite helpful. But I hope everything is on the table.

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Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Yes, my Lords. I am not excluding anything; I am simply making the offer to the two noble Lords who raised this issue quite strenuously, and to any other noble Lords who want to attend. I suspect it is not a northern problem but more of a southern problem, but we can discuss all that in due course.

Lord True Portrait Lord True
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My Lords, I apologise for having provoked a lengthy debate at this time, but it is Committee and one’s only chance to put a case. I illustrated it largely with examples from Richmond, but in the London Councils brief there are examples of problems in Croydon, Islington, Camden and Lambeth, which I do not think are Conservative authorities but are all citing difficulties.

I am extremely grateful to my noble friend, and of course I will gladly take up her offer. I hope that another order will not be laid by her friend at the other end before we can meet, because that was a rather unhelpful prelude to our previous meeting.

Lastly, the Minister can have his bone, because it is the Minister at the other end who is calling the shots, and I can have my bone so that my residents and the residents of Croydon and Lambeth have a bit of security. The order can stand and local authorities can be given the power to opt out within this Bill before Parliament. Everyone can be satisfied; those who want it and those who do not. That is what I put on the table, it is what I will take to my noble friend, and I am grateful for the opportunity to do so. But if we cannot meet on that, I will bring this back to the House.

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Lord Beecham Portrait Lord Beecham
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No, I am not going to sort it out—but I was going to suggest that one way in which to look at it would be to revoke the permission, so that that developer is no longer sitting on it. Does that not work?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I am sorry to contradict a lawyer, and I shall probably get slapped down for it, but the planning permission is usually granted for a site and not for a person. I think that that is the point that my noble friend made. So you would not revoke the permission, because the permission is on the site rather than for the person—or you could, but it would run contrary to anything that planning law has ever done, in my memory anyway. But I am sympathetic towards the intent behind the amendment, because it raises the issue of planning permissions given but the building not happening. That is a challenge within the context of the Government trying to deliver 1 million homes by 2020. However, a requirement fixing a timeframe for both commencing and completing the development is a highly dangerous approach. While I appreciate that this measure is aimed at encouraging the build-out of permissions, it would not be prudent to introduce such a measure without the full and proper assessment of the potential consequences. In particular, careful consideration would be needed of the impact on the viability and deliverability of schemes. It is important to acknowledge that putting a standard time limit on when development should be completed might be unrealistic, given that developments come in different shapes and sizes, as my noble friend Lord Porter, said, and each has its own specific set of issues.

A number of factors can delay both starts on site and completion of development, including market conditions, availability of finance, difficulty discharging conditions and the availability of infrastructure and utilities. Imposing a requirement without considering any legitimate reasons for delay would be a highly risky, unreasonable approach that is likely to introduce fear and a reluctance to enter the market in the first place. It may deter development coming forward, given the added constraints and risks. That is not to say that I do not sympathise when these situations arise because, as a former council leader, I know that it is deeply frustrating. We are trying to encourage the build-out of existing stock of planning permissions and taking it very seriously. The department has already announced a number of measures designed to address these various factors that cause delays on site. They include a £1 billion fund to support small and custom builders to deliver 26,000 new homes, and the £2 billion long-term fund to unlock housing development for up to 160,000 homes announced in the spending review.

I hope that I have been able to set out that, although I agree wholeheartedly with the need to encourage build-out, the amendment is probably not the best way in which to deal with it, as other noble Lords have pointed out.

The noble Lord asked about the presumption to approve if a site has previously had permission. A planning application will always be considered on its planning merits at the time of application, so I do not think that that applies. I hope that with those words I have reassured the noble Lord, and he will feel happy to withdraw his amendment.

Lord Palmer of Childs Hill Portrait Lord Palmer of Childs Hill
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I thank the Minister for her reply. The facts of the matter are that, on large sites, developers, whoever they are, never—or so I am told by people in the industry—develop more than 100 to 150 per annum. There must be some way forward to encourage those developers to build more. The amendment might not be right as it is—I accept the points about five years and seven years—but it was tabled to try to highlight the issue. I actually wondered about years. There must be some way to make sure that developers do not only develop 100 to 150 units on large sites. The reason they do that is to keep up the price of those units. There must be some way to work with the Government to have some provision in the Bill to facilitate that. It may not be the amendment which is before us, but I will reconsider that for Report. At the moment, I beg leave to withdraw the amendment.

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Lord Beecham Portrait Lord Beecham
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With respect, that is not what the amendment seems to say. The Minister and I are in rare agreement.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I think we might be. I will start with Clause 139, which amends Sections 62A and 62B of the Town and Country Planning Act 1990. It allows the Secretary of State to set out in secondary legislation categories of applications that a local planning authority may be designated for, should their performance fall below the specified threshold. This will allow our existing approach to addressing any instances of underperformance, which currently applies only to major development, to be extended to include applications for non-major development. The existing designation approach has proved successful in speeding up decisions on major development since it was first announced in September 2012. By extending our approach to include non-major development, we are ensuring that all applicants can have confidence in the service to be provided.

We will keep under review the categories of applications on which performance will be assessed to ensure that they remain targeted at the most relevant aspects of the planning process. As the existing designation approach has proved, this measure has several benefits. It encourages improvement and gives applicants the choice of a better service in the very few cases of persistent underperformance. This approach has shown its effectiveness in tackling performance on major development, so it is only natural that we should now bring non-major development within its scope.

I now turn to the amendment moved by the noble Lord, Lord Palmer, on behalf of the noble Lord, Lord Tope, regarding applicants for planning permission having the choice to apply directly to the Mayor of London instead of the Secretary of State where a London borough is designated as poorly performing. I agree that it is essential that the Mayor of London plays an important part in strategic decisions affecting the capital, which is why the mayor already has power to call in for his own decision applications of potential strategic importance—for example, where more than 150 dwellings are proposed.

I should highlight that if applications are submitted directly to the Secretary of State by applicants in areas that are designated as underperforming, Section 2A(1B) of the Town and Country Planning Act 1990 already provides for the Mayor of London to have the same call-in powers for applications that are of potential strategic importance. This ensures that the mayor can still take the final decision on applications of importance in London. I reassure noble Lords that we value the important role of the mayor in taking strategic decisions in London, and we are taking steps in this Bill to devolve more planning powers to the mayor. With that reassurance, I hope the noble Lord will withdraw his amendment.

Lord Palmer of Childs Hill Portrait Lord Palmer of Childs Hill
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I beg leave to withdraw the amendment.

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Lord Kerslake Portrait Lord Kerslake (CB)
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My Lords, I support this amendment. Buried among the thicket of amendments that we have considered in this, I am afraid, rather centralising Bill is a genuinely ingenious and localist approach that we should give serious consideration to. In many ways it mirrors the amendments that came forward during the passage of the Localism Act that paved the way for the city deals. That was a powerful model that opened up new opportunities. The proposed new clause is very open in the way it is described and I am sure that improvements could be made in the drafting, but it is a genuinely localist initiative that would allow different approaches and techniques to be used in different parts of the country.

The proposition in the London Housing Commission report that I chaired—I declare an interest—could help. It proposed that the mayor, through the London Plan, should be able to make that effectively the NPPF for London. If we recognise the fact that we live in a country with different housing markets and different planning environments, we should be open to some experimentation, and this proposed new clause could be very helpful in delivering that.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I thank noble Lords and in particular the noble Lord, Lord Taylor, for speaking on behalf of the noble Lord, Lord Lucas, another noble Lord whom we wish well, because they seem to be dropping like flies today—I do not know whether it is the housing Bill or something in the air. I support the key principle in the amendment proposed by my noble friend Lord Lucas and nobly articulated by both noble Lords that local planning authorities should have a greater role in tailoring the planning system to their local circumstances. This includes potentially having the power to suggest an alternative approach, as set out by the amendment.

I am sure the noble Lord would concede that, as drafted, there are some difficulties with his amendment. It is too broad, and it certainly does not provide the necessary reassurances of certain aspects of planning, such as the right to appeal, which must be retained to provide fairness for applicants. In addition, it does not provide a legal vehicle to support the transfer of the planning freedoms, which would lead to some practical difficulties. These concerns accepted, I applaud my noble Friend in his absence for the inventive approach his amendment proposes, and the noble Lord, Lord Taylor, for articulating it.

The Government are committed to driving up housing supply. I am sure that noble Lords know our ambitions. I think the House will agree that any agreement by the Secretary of State to an alternative planning system in a local area should happen only if that alternative system would deliver additional homes. I want that link to be explicit in any legislation.

I reassure both noble Lords that we are already making strong moves in this area. The Government are exploring a deal-based approach where a local authority requests certain planning freedoms in exchange for delivering housing numbers greater than their objectively assessed housing need. This includes instances where those housing numbers might be delivered by a large site such as a garden village or garden suburb.

I have listened to the thoughtful contributions from noble Lords, and I would like to consider how we can best take forward the key principle of the amendment of my noble Friend, Lord Lucas, particularly in light of the recent publication of the report of the local plans expert group and the consideration of responses to the Government’s recent consultation on the NPPF. I hope this explanation reassures the noble Lord, Lord Taylor, and that he is happy to withdraw the amendment.

Lord Taylor of Goss Moor Portrait Lord Taylor of Goss Moor
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I thank the Minister for her very positive response. I would have spoken to this amendment whether or not the noble Lord, Lord Lucas, was here. She mentioned some of the proposals, not least on garden villages, which is an approach that I have advocated. I resisted mentioning it myself at this late hour, but there will be other amendments where I may return to that issue, as this is a good example of where that might happen. I am delighted that she has indicated that she will look at this.

I agree with the reservations. I think the noble Lord, Lord Lucas, would have done so as well. The amendment was intended to allow this debate to take place. With the permission of the Committee, I would like to withdraw it.

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Lord Greaves Portrait Lord Greaves
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My Lords, unlike some of the younger people in this Chamber tonight, I have run out of energy, so I will simply move the first amendment in this group. I look forward to hearing the Minister’s response to the amendments.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, Clause 140 ensures that the likely financial benefits of certain development proposals will be made public when a local planning authority is considering whether to grant planning permission. It applies only to reports, with a recommendation about how a planning application should be decided going to a planning committee or the full authority. It requires local planning authorities to make arrangements for the reports to include a list of certain financial benefits which are likely to be obtained by the authority as a result of the proposed development being completed.

The financial benefits to be listed include local finance considerations, payments under the community infrastructure levy and government grants, or any other benefit set out by the Secretary of State in secondary legislation.

The Secretary of State will also have the power to require a financial benefit to be recorded where it is payable to a person or body other than to the authority making the planning determination. There are powers to set out in regulations any further information about a financial benefit which must be recorded in a planning report—for example, an estimate of the amount.

Not setting out in public the potential financial benefits of planning applications during the decision-making process impacts negatively on local transparency. It prevents local communities understanding the benefits that development can bring to their local area. Therefore, we amended the national planning policy guidance to make it clear that local finance considerations may be cited for information in planning committee reports, even where they are not material to the decision. Despite this change, our concerns remain.

Our intention is not to interfere in the considerations taken into account when planning decisions are made. The effect of this measure, which will not be onerous on local planning authorities, will simply be to make local communities more fully aware of financial benefits which are otherwise non-material to planning decisions and help them understand better the wider impact of development. We are consulting on how we might use the delegated powers included in this clause; for example, on prescribing council tax and business rate revenue, and Section 106 payments, as financial benefits to be listed.

I shall not thank the noble Lord, Lord Greaves, for his amendment because he did not speak to it, but in thinking what he might have said—I struggle to do so at this hour—I should point out that the measure would apply to all planning reports, not just those going to planning committees as set out in Clause 140. Local planning authorities would be required to list any financial benefits or costs received or incurred by not just themselves but any other person. They would also be required to provide any information about the financial costs or benefits without any limits to or guidance about what should be provided. The amendment would introduce substantial ambiguity and huge burdens for local planning authorities. The breadth of information required would be significantly onerous, so the amendment would not result in a proportionate approach.

Amendments 100ZABB and 100ZABL would extend our approach and require all reports, with a recommendation, to set out the financial benefits and not just those going to a planning committee or the full authority for a decision. We chose to apply this measure to committee reports, as these will be published in advance and are the most accessible and transparent to local communities and therefore the most appropriate for the likely benefits to be recorded in. Applications determined at planning committees are also likely to be the larger developments, where we imagine the largest financial benefits to be. While reports for planning applications decided under delegated powers are made publicly available, our understanding is that that is generally only after a decision is taken and only where a member of the public requests the information.

Amendments 100ZABC, 100ZABE, 100ZABG, 100ZABH and 100ZABK would require local planning authorities to list the costs likely to be incurred as a result of development. The noble Lord’s amendments do not include a definition of costs. Therefore local authorities would be required to list any cost that might arise from development. As I am sure the noble Lord is aware, our intention is for minimum burdens to be placed on authorities, which these amendments would not bring. Where, for example, significant infrastructure would be needed to support a proposed new development, this would be a material consideration and therefore already covered in some detail in planning reports.

Amendment 100ZABF would extend the scope of the clause to require local planning authorities to list the financial benefits likely to be obtained by anybody as a result of the grant of a planning permission. It would significantly increase the scope of the clause. We are consulting on how we might use this power, but our intention is for it to be used sparingly.

Amendments 100ZABD, 100ZABJ and 100ZABM—which I am sure are designed to tax me at this hour of the night—would remove the Secretary of State’s power to define in regulations the financial benefits that should be listed in reports. Again, removing this flexibility would require local planning authorities to list all financial benefits, which we do not feel is a proportionate approach. I hope that, with these reassurances, the noble Lord will not press his amendments.

Lord Greaves Portrait Lord Greaves
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My Lords, I am lost in admiration at the vigour and energy that the Minister still has at this time. Having said that, I am grateful for her full response and beg leave to withdraw the first amendment in the group.

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Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, I hope that we can end on a happy note this evening. At present, any regulations that allow for different levels of fees in different local authority areas could be subject to the hybrid procedure. This would significantly lengthen the parliamentary time taken for consideration of the regulations. So the effect of Clause 141 would be that such regulations would no longer be treated as hybrid and would be subject only to the affirmative procedure that is usual for fee regulations. The clause would allow this type of local flexibility to be explored without every associated change to the fees regulations being treated as a hybrid instrument.

I know that some noble Lords had concerns that removing the hybrid process would mean that some interests would not be adequately protected. I should like to reassure them that, where such flexibility is proposed, we intend to ensure that there is appropriate consultation at local level, so that people are not disproportionately affected by the changes. We consider this to be a more direct and effective route for individuals to express their views, rather than petitioning against the instrument. There will still be full parliamentary scrutiny of any such regulations under the affirmative procedure.

My noble friend Lady Gardner made the point that it is wrong that big developers can pay the same fees as householders. That is not entirely accurate, in the sense that applicants pay varying fees on the scale of the development being pursued. It is not actually uniform at the moment.

Turning to Amendments 100ZB and 101, which relate to local authorities setting fees up to cost recovery, I should highlight that Section 303 of the Town and Country Planning Act 1990 already provides for the Secretary of State to allow, by regulations, local planning authorities to set their own levels of fees up to cost recovery. We are not without powers to enable local fee setting. Planning application fees make an important contribution to meeting the costs of the development management service, but they are only one side of the resourcing equation. Local government obviously has been driving down its costs too, and giving local authorities freedom to set their own fees brings unintended risks. Removing the sector’s incentive to tackle inefficiencies where they exist—particularly as local authorities are monopoly providers of planning services in their areas—and raising fees in a way that could dissuade home owners or small and medium-sized developers from undertaking developments, would introduce unpredictability for developers just when we need them to be stepping up the number of homes that they are providing. Crucially, providing no link to improved performance would give no guarantee that the additional income would go into planning departments or lead to more timely decisions.

Debate on this part of the Bill has highlighted that planning is a very important public service, with local authorities balancing the private interests of the applicant with those of the wider community. I totally understand the concern of my noble friend Lord True about the taxpayer subsidising developers but, in the context that I have just outlined, it may not be unreasonable for local taxpayers to make a contribution to the cost of this public service. Local authorities can do a lot more to transform their planning departments. Those that have introduced new ways of delivering planning services, for example through outsourcing and shared service arrangements, have shown that performance can be improved and costs reduced. More should be following their lead.

Finally, we are consulting on proposals to increase fees in line with inflation and propose to do this annually. However, changes in fees should go hand in hand with the provision of an effective service, which is why we propose to link future increases in fees to performance. Noble Lords will also be pleased to learn that we propose to enable some greater flexibility in fee-setting where local areas come forward with ambitious plans for reform, such as providing applicants with a choice of a fast-track service in return for a proportionate fee.

Lord Foster of Bath Portrait Lord Foster of Bath
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I appreciate that the hour is late but will the Minister confirm what she has just said? She has at least implied that a local authority is likely to get the fee level increase—basically, inflation since 2012. Then she implied that there could be additional money coming forward, whereas as I read the technical consultation document, it says it the other way round: everybody will get the percentage increase but those who are deemed to be doing badly will have money taken away. So it is not a case of everybody getting up to that level and then a bit is added; rather of everybody getting basically the increase since 2012 but some is potentially taken away.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I hope that the noble Lord and I are saying the same thing. We are saying that we are enabling greater flexibility in fee setting.

Lord Foster of Bath Portrait Lord Foster of Bath
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Flexibility down.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Perhaps we can argue that on Report.

Lord Foster of Bath Portrait Lord Foster of Bath
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For clarity, is it the Minister’s understanding from the technical consultation document that under the current government thinking no local authority planning department is likely to see an increase above inflation since 2012?

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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Yes, it is, my Lords. I am sure we will argue this long and hard on Report.

Amendment 100ZAC, tabled by my noble friend Lady Gardner, seeks to enable local authorities to charge fees that exceed cost recovery in respect of their planning functions. The Government’s guidance on handling public funds entitled Managing Public Money states that charges and fees, like those for planning applications, should be set at cost recovery so that the Government do not profit at the expense of consumers.

Local authorities also have the power under the Local Government Act 2003 to charge for discretionary services up to the level of cost recovery. I know many local authorities have chosen to use this power to charge for pre-application advice. While limited to cost recovery, authorities must ensure that they do not make a profit from the provision of pre-application advice over the course of a year. However, I reassure my noble friend that the income generated from planning fees remains with the council. It is for local authorities to determine how these fees are used.

With one slight exception, I hope that noble Lords are satisfied with my comments and that the noble Baroness will feel happy to withdraw her amendment.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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My Lords, I am most grateful to everyone who has taken part in this debate, particularly as the Committee sitting was extended to enable us to discuss this amendment tonight. Having sat here for many hours, that certainly meant a great deal to me.

A matter that has not been mentioned in this debate is that of enforcement. Many councils tell me that they do not have funds to carry out enforcement in relation to planning and various other matters. That is pretty important, particularly when people construct something which contravenes their planning permission. I know of a famous television celebrity who has carried out all sorts of things for which he is now applying for retrospective permission. When Barbara Castle came to this House—I had the honour of standing against her in 1970—the first thing she did was speak to an amendment I had tabled which opposed retrospective planning permission. She did not appreciate that she was meant to ask me whether she could add her name to the amendment. However, I was not a bit worried about that because she spoke on the issue superbly and her speech was well received by the House. However, there are many aspects of planning that people would like to address but cannot do so. I have mixed views on the suggestion with regard to private enterprise in this regard. Those decisions should be taken by councils, as with many other things. I hope that the Minister will have a meeting with me or recommend changes to my amendment and that I can bring it back on Report. Ideally, if the Government brought it back that would be the best of all, but, if not, I will certainly return to it on Report because it is very important. In the mean time, I beg leave to withdraw the amendment.