Planning

Bob Seely Excerpts

Thursday 15th July 2021 Westminster Hall

[Bob Seely (Isle of Wight) (Con)]

I beg to move,

That this House has considered the future of the planning system and the upcoming Planning Bill.

It is a pleasure to serve under your chairmanship, Mrs Cummings.

I thank the Minister for being present and Members for taking part in the debate. I am very respectful of the Minister and I do not underestimate the challenges that he faces in changing a complex system. We need sensible reform, but we need to get it right, and it is in that positive spirit that I intend to speak. I will speak for no more than 10 minutes, because I want to get as many people in as possible.

I will reiterate some concerns and, significantly, suggest as many solutions as I can; some have been made by me and some by near 100 Members on the WhatsApp group. I sent those ideas to the Prime Minister and to the Housing Department a few weeks ago for thought, and I look forward to a response. I put forward an approach to planning based on three principles: that it should be community led, levelling-up led and environment led. I commend those to Ministers. First, however, I will outline some concerns.

Reform, I believe, is better than scrapping and starting again. Scrapping threatens to misdiagnose the problem. Nine in 10 planning applications are approved, but only 60% of permissions are built, so there are more than 1 million unbuilt permissions in a decade. The basic fact is that we have a flawed market. The building cartels, which build the majority of homes, restrict supply. That is not a secret; it is in their building model. They act to prevent prices falling. That is why using housebuilding alone, or predominantly, to lower prices will not work.

Furthermore, the standard method damages the levelling-up agenda. That is critical, especially given the Prime Minister’s excellent speech today. Levelling up is a moral and economic imperative. It is also a political imperative for the Government. However, a flawed planning Bill will undermine that levelling-up process. Some red wall colleagues are now beginning to see that.

Knight Frank reported that the current methodology, the standard method,

“systematically disadvantages poorer parts of the country, particularly in the North and Midlands”.

The north has 23% of the nation’s population, but its housing need is estimated at not even 16% of the total, and its share of public expenditure on housing is barely 18% of the total. The housing infrastructure fund spends £115 per head in the east of England and an astonishingly low £4 per head in Yorkshire.

The standard method directs investment away from levelling up communities. It heats up the already hot and it cools down those people who need to be cooking on gas—pardon the analogy. Other people will talk about the potential loss of democracy and other concerns, so I will not dwell too much on them, because I want to focus on one or two specific issues, but it is clear from talking to colleagues that there is much variation in people’s concerns. For some it is green fields and damage to tourism or quality of life, and for others it is suburban density, building height or the absolute absurdity of building on floodplains. For others, it is a system that is simply not delivering affordable homes.

I will say that there is a slight frustration. Opponents of reform—well, opponents of scrapping the system rather than reforming it—are sometimes portrayed as nimbys. On the Island, on the Isle of Wight, we have been yimbys for 50 years—we have been in our backyard. We have increased our population by 50% in 50 years. In that time, the cities of Newcastle, Sunderland, Hull, Liverpool, Manchester, Blackpool, Birmingham and Stoke have all declined—not relatively declined but declined in absolute percentage and numbers. So when people say that opponents of a developer-led system in the south are nimbys, I respectfully argue that they should acquaint themselves with some basic facts about the history of development that has taken place in this country since world war two. We have barely no new infrastructure on the Isle of Wight, and our key gas supplies, water and electricity interconnectors are already operating at near capacity.

So what are the solutions? I want most of this speech to be positive. I will look at our three principles and suggest perhaps a dozen or 15 ideas in the time I have available. Some of them are community led, some environmentally led and some levelling-upled, but they all gel together to look at ways we can support the Minister in the important work that he is doing, which we want to support.

Our reforms are: first, enshrine the ability to object to individual planning applications; secondly, give greater weight to reforming neighbourhood plans; thirdly, outlaw gazumping. We know that communities with neighbourhood plans accept higher housing allocations because they see what is in it for them. We know that gazumping slows down the market and imposes costs. Good democracy and good law help good development.

On levelling up, there are many things one could say, but I will stick to one. We need to fundamentally reform the standard model and redirect infrastructure funding and house building jobs to levelling-up areas as a deliberate act of policy. Without that, we will have to explain to our voters in a few years’ time why all that infrastructure funding, or so much of it, is going down south, and it will not be a pretty conversation with southern colleagues and voters or red wall and levelling-up communities.

Finally, a series of ideas linked to the environment. We need to end the use of lazy greenfield development. I know Ministers want that, but it would be great if they could want it more. We need a recycling culture in land use. I am aware that some good ideas in the White Paper are about infrastructure levies, but it needs to price in the true cost of using up very valuable rare greenfield land. For many areas I fear that will be a markedly higher price than will be factored into the Bill. We need, in short, to change the economics of land use.

We need a greenfield tax so that money goes into brownfield clean-up in a dedicated way. If we are using, especially in a place such as the Isle of Wight, rare greenfield land, we need to get a greater good out of it than Persimmon’s bottom line. We need to zero-rate brownfield development, encourage it and build in financial incentives, especially for small-scale brownfield in small towns and communities, to make it work.

There are many loopholes that I could suggest closing, but I will not, given the time. I will just say that we need greater powers of compulsory purchase to force people to act more quickly. There are 600 unused and derelict properties on the Isle of Wight. If the Minister wants to get 600 extra properties on the Isle of Wight, he should give the Isle of Wight Council more power. Make it easier for us to enforce action on derelict and unused properties in order to force sale or to force use. Introduce a character test to screen out dodgy developers. If he wants to clean up the system, let him be the sheriff who gets rid of cowboy developers.

Buyers who turn homes—I think this was suggested by a colleague who will be speaking shortly—into Airbnb or holiday homes should be required to apply to councils for change of use. Councils should be allowed to frame localised plans to reverse and lower the percentage of long-term holiday and commercial holiday rentals in specific communities.

We help first-time buyers, so why not last-time sellers with stamp duty exemption? It will cost money. One in five over-65s would be, according to facts and figures, more likely to move. That could affect 2 million people—£900 billion-worth of property. That would free up the market and allow market-driven solutions where there is not market failure. Clearly, there is an element here.

Finally, land banking. If we want to boost supply, we need to create a use-it-or-lose-it rule for permissions within a realistic time bracket. That means more than starting a development by digging a trench six foot by six. Agreeing a start date means agreeing just that and making council tax payable on all plots after a given date, regardless of whether they are built. If the purpose of the Minister’s planning Bill is to help developers, these ideas will not be attractive to many of them, but if its purpose is to get people into homes and to help first-time buyers—I am sure it is—these ideas, and many others suggested by colleagues, will help him produce a markedly better planning Bill, or a planning Bill that is as good and as attractive as we all want it to be.

We need solid principles behind the planning Bill. It should be community led, levelling-up led, and environment led. We need to be sensitive to local democracy. We need a levelling-up agenda that spreads prosperity and hope around our country. To make it environment led, we have to move away from unsustainable, lazy, car-dependent and carbon-inefficient greenfield development, and we need to build for communities and in communities.

[Judith Cummins (in the Chair)]

I ask hon. Members to limit their contributions to around three to four minutes, because I plan to start calling the Front Benchers at 2.38 pm.

--- Later in debate ---

[The Minister for Housing (Christopher Pincher)]

It is a real pleasure to serve under your chairmanship, Mrs Cummins. I congratulate my hon. Friend the Member for Isle of Wight (Bob Seely) on securing the debate. He is a doughty campaigner for his constituents in the Isle of Wight, and I know that he thinks deeply and for a considerable length of time on these important, and sometimes intricate, planning matters.

I am very happy to look at the proposals that he has written to us about, because we all agree that we want to get our planning reforms right. We also all agree, including representatives from Shelter and KPMG, that we need more homes in our country. Both organisations will say that we need to build north of 250,000 new homes a year in our country to address our housing challenges. However, the present planning system, with all the plans calculated as a total, represents less than 180,000 new homes planned each year, so we do need to build more homes in the right places, and of the right quality, to serve our constituents. That is why we launched two consultations last year; that is sometimes, I think, forgotten. We launched the consultation on planning reform, because yes, we do want there to be more homes, but we also want a planning system that is more transparent, more predictable, easier to navigate and more speedy and that delivers good-quality, well designed homes. That is what we intend to achieve through our planning White Paper and the reforms that we will introduce later this year, and also a White Paper on local housing need in order to ensure that local authorities are planning for 300,000 homes each year. But the LHN—local housing need—number is not binding and is not an end to the process; it is a beginning point from which local authorities can then identify constraints, if they have them, or opportunities, if they want them, to build fewer or more homes than their target local housing need. The green belt is one example that local authorities can use as a constraint on building.

What is important is that local authorities keep their local plans up to date, because if they do not, they expose their constituents—all our constituents—to speculative development from applications that come forward, which the Planning Inspectorate will give great weight to if the local authorities do not have a plan, and do not have control of their local housing supply. I have to tell you, Mrs Cummins, that the local authorities in York, Gateshead, South Lakeland, and Bath and North East Somerset have plans that are out of date. They need to get them “in date” in order to protect their constituents from speculative developments. I say gently to the hon. Member for Bath (Wera Hobhouse) that it is little use lecturing me about planning; what she should be doing is encouraging her local authority to get its plan in place and protect her constituents from speculative development.

We are keen to build a planning system that works for the 21st century and that moves faster than the present glacial pace of planning. It takes local plans seven years in many cases—on average—to be instituted. It then takes five years for many planning applications to see a spade in the ground. It is taking far too long. The process needs to be speeded up. But crucially, it needs to engage more people. That is a point that I know my hon. Friend the Member for Isle of Wight has mentioned and that my hon. Friends for Stourbridge (Suzanne Webb) and for Crewe and Nantwich (Dr Mullan) have also raised as an issue. Right now, sometimes as little as 1% of the local population in a planning authority area gets engaged in plan making. That rises to a whopping 2% or 3% when it comes to individual applications. And as we have heard, nine out of 10 planning applications—90%—are passed anyway. That is not particularly empowering; it is not particularly engaging. We want to do better.

[Bob Seely]

Will the Minister give way?

[Christopher Pincher]

I will give way in a moment to my hon. Friend, but I am conscious, if I may say so, that I have a lot of questions to answer that he and others have asked and he does get a second bite of the cherry later.

We do need to ensure that more people are engaged, and we believe that by digitising the planning process, by creating map-based plans of local areas, we can engage many more people in the planning process, and they can get more engaged up front, making real decisions about the sorts of buildings that they want in their local geographies—the densities and the designs—and about the infrastructure to support those homes. That is real power, given to people much earlier in the process, so that they can become much more engaged.

--- Later in debate ---

[Christopher Pincher]

I think that I am describing exactly that process. We want more people to be involved and we want them to have a say earlier on about specific matters that should concern them, including what areas may be sites for accelerated development in their areas and what the designs, the design codes and the infrastructure should be. I think that is deliberative democracy.

[Bob Seely]

I am not for one second trying to catch the Minister out, but at the beginning of the White Paper the Prime Minister said that he wanted to tear the system down and rebuild it. We are now evolving into a reform process rather than a scrapping process, as part of the very sensible evolution and listening process. Is that correct?

[Christopher Pincher]

As I said, we want to reform the system. If my hon. Friend listens to what I have said and to what my right hon. Friend the Secretary of State has said, he will know that we are keen to make sure that we have a process that reforms our planning system, which is outdated and needs change. However, we are not proposing to scrap it, to use the term that he used.

--- Later in debate ---

[Bob Seely]

I thank you very much, Mrs Cummins, for your contribution and for keeping order. I thank everyone for taking part in this debate, and I thank the Minister. I am sorry that he does not have a copy of my letter; I will send it immediately. I just highlight the greenfield tax, the windfall taxes and the many other great ideas from myself and other colleagues in it. Finally, I am glad to see that we are moving from scrapping the system to reforming it.

Question put and agreed to.

Resolved,

That this House has considered the future of the planning system and the upcoming Planning Bill.