Levelling-up and Regeneration Bill

Clive Betts Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Michael Gove]

The hon. Gentleman makes a very important point. Across the 12 metro Mayors, we have seen examples of leadership on the environment and the move towards net zero, and indeed on the modernisation of transport systems. I know that the Mayor of West Yorkshire is particularly keen to ensure that transport and spatial planning are aligned to drive progress towards net zero. I will do everything I can to work with the Mayors of West Yorkshire and South Yorkshire.

[Mr Clive Betts (Sheffield South East) (Lab)]

rose—

[Michael Gove]

Talking of South Yorkshire, I can see that the Chair of the Levelling Up, Housing and Communities Committee wants to intervene.

[Mr Betts]

I want to follow up on the two questions that Conservative Members have asked about transferring powers to local authorities and Mayors. I can see in the Bill welcome proposals to expand combined authorities to more parts of the country, particularly to county areas. What I cannot see anywhere—if I am wrong, the Secretary of State will point me to the precise clause—is the making available of more powers that are currently not devolved to any local authorities. Are any such powers going to be devolved, and if so, in which clause do they appear?

[Michael Gove]

The Chair of the Select Committee brings me to an important point, which is that this legislation is complemented by other activity that Government are undertaking on levelling up. That activity involves negotiations with metro Mayors, for example in the west midlands and in Greater Manchester, on the devolution of more powers. When my good friend the former Member for Tatton initiated the programme of devolution to metro Mayors, he did so by direct discussion with local leaders. We will be transferring more powers, and we will update the House on the progress we make in all those negotiations. I noted a gentle susurration of laughter on the Opposition Front Bench, but I gently remind them—I sure the Chair of the Select Committee knows this—that when Labour were in power, the only part of England to which they offered devolution was London. This Government have offered devolution and strengthened local government across England.

As I look at the Benches behind me, I find it striking that in this debate on this piece of legislation, which is about strengthening local government and rebalancing our economy, the Conservative Benches are thronged with advocates for levelling up, whereas on the Labour Benches there are one or two heroic figures—such as the hon. Member for Barnsley Central (Dan Jarvis) and the hon. Member for Wansbeck (Ian Lavery), who are genuine tribunes of the people—but otherwise there is a dearth, an absence and a vacuum.

Talking of dearths, absences and vacuums, may I commend to the Labour Front Benchers the speech given by Lord Mandelson today in Durham—a city with which I think the Leader of the Opposition is familiar—in which he points out that Labour has still not moved beyond the primary colours stage when it comes to fleshing out its own policy? In contrast to our levelling-up White Paper and our detailed legislation, Lord Mandelson says that Labour is still at the primary stage of policy development, but I think it is probably at the kindergarten stage.

We have put forward proposals, and we are spending £4.8 billion through the levelling-up fund and similar sums through the UK shared prosperity fund, to make sure that every part of our United Kingdom is firing on all cylinders—and from Labour, nothing. When it comes to addressing the geographical inequality that we all recognise as one of the most urgent issues we need to address, it is this Government who have put forward proposals on everything from strengthening the hand of police and crime commissioners, to strengthening the hand of other local government leaders, and providing the infrastructure spending to make a difference in the communities that need it.

--- Later in debate ---

[Michael Gove]

Talking of brighter futures—

[Mr Betts]

On a point of order, Madam Deputy Speaker. I am sure that the Secretary of State would not want to inadvertently mislead the House. In response to the question from the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) about the conflict between local plans and national policies, he made a comment—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Is this a point of order for the Chair? I am sure that the Secretary of State would not wish to inadvertently mislead the House, so if that is the point of order, I agree with the hon. Gentleman and that is the end of the matter.

[Mr Betts]

I am trying to help the Secretary of State so that he does not inadvertently mislead the House.

[Michael Gove]

I am happy to give way to the hon. Gentleman.

[Madam Deputy Speaker]

I thank the Secretary of State. The hon. Gentleman is a senior Member of the House. It does not seem to be a point of order for me, but a point of argument with the Secretary of State, who is willing to give way. Will the hon. Gentleman withdraw his point of order so we can allow the Secretary of State to continue?

[Mr Betts]

Yes, and if the Secretary of State will give way, that is even better.

[Madam Deputy Speaker]

I thank the hon. Gentleman for withdrawing his non-point of order. I hand the Floor back to the Secretary of State.

[Michael Gove]

I understand that the hon. Gentleman wishes to intervene; I am delighted to give way.

[Mr Betts]

I thank the Secretary of State for giving way. Clause 83(2) proposes a new section 38(5C) to the Planning and Compulsory Purchase Act 2004, which says:

“If to any extent the development plan conflicts with a national development management policy, the conflict must be resolved in favour of the national development management policy.”

That is what it says—it overrides the local plan. It is in the Bill.

[Michael Gove]

It has always been the NPPF’s function to have those national policies, which have been agreed and which ensure that plans are in conformity with what this House wills our overall planning system to be. It is no more than a more efficient way to make sure that the existing NPPF and any future revisions of it are included in local plans.

Another reason why we sometimes see opposition to development is infrastructure. One of the critical challenges that we must all face when we contemplate whether new development should occur is the pressure that is inevitably placed on GP surgeries, schools, roads and our wider environment. That is why the Bill makes provision for a new infrastructure levy, which will place an inescapable obligation on developers to ensure that they make contributions that local people can use to ensure that they have the services that they need to strengthen the communities that they love.

Of course, section 106 will still be there for some major developments, but one of the problems with section 106 agreements is that there is often an inequality of arms between the major developers and local authorities. We also sometimes have major developers that, even after a section 106 has been agreed—even after, for example, commitments for affordable housing and other infra- structure have been agreed—subsequently retreat from those obligations, pleading viability or other excuses. We will be taking steps to ensure that those major developers, which profit so handsomely when planning permission is granted, make their own contribution.

--- Later in debate ---

[Mr Clive Betts (Sheffield South East) (Lab)]

The principle of levelling up is absolutely right, and it is one that is shared across the House. We have one of the most unequal countries by geography, and one of the most centralised. Both of those issues need addressing. However, the two fundamentals to addressing them are missing from the Bill. First, where is the money? Individual pots of money adding up to a few billion pounds are not going to do it. We need to see a commitment from the Government to actually change the way in which whole departmental budgets are spent. Why is it right that we spend 10 times as much per head on public transport in the south-east as we do in Yorkshire? That is a question the Government need to answer.

I asked the Secretary of State if he could point to any new powers in the Bill that would be available to councils and Mayors. It was clear from his answer that he could not do so, because there are none. He reverted back to saying that there would be discussions between Mayors, combined authorities and the Government as the initial devolution measures that the Government introduced under the coalition were brought in. Why are we back to individual negotiations? Why do we not have a right, through a devolution framework, to powers for all local authorities to access? That is something that we on the Select Committee have asked for, but it is not in the Bill.

Initially we were told that we were going to have a levelling up Bill with some planning powers incorporated into it. What we actually have is a planning Bill with a levelling up wraparound, because most of the serious measures in it are about planning. Some of them are probably welcome. The proposals to simplify local plans and make them accessible to local people, so that the argument can be about where we build homes at that stage rather than having rows about individual planning applications later, are welcome. Will the other measures in the Bill really do it? We are going to test that in the Select Committee. The Minister for Housing, the right hon. Member for Pudsey (Stuart Andrew) is going to come to the Committee next week, and we are looking forward to seeing him. I hope he is looking forward to coming.

There are measures in the Bill that the Committee has asked for to simplify the powers available to local councils relating to compulsory purchase orders. Again, are they going to do it? Is there a real commitment to end the hope value system whereby landowners get money out of this process for doing nothing? We welcome the plans for improved environmental impact assessments, and we are going to test how they will work in practice. We welcome the increased powers of enforcement for local authorities, and I come back to a point I have mentioned before. When a developer refuses to implement the conditions given to an application that has been agreed, should that not be able to be taken into account by a local authority when the same developer puts in an application to build somewhere else? If that developer has failed at the first hurdle, why should it be given a second permission? Avant Homes, in Owlthorpe in my constituency, is an appalling developer, and there have been problems with it elsewhere as well.

The strengthening of powers over retrospective applications is also to be welcomed, but will there be an impact assessment to see whether it is really going to work? The Royal Oak, a centuries-old pub in Mosborough in my constituency, was demolished, and the developers came back months later to get permission to rebuild on the site. They are going to get a slap on the wrist, and that is not good enough. We need real powers to deter that. On the levy being implemented instead of section 106 agreements, can the Government absolutely assure us that this will not reduce the number of affordable homes being built? This will be tested at the Select Committee. We all share the ambition on levelling up, and there are some good specific measures in the Bill, including the ability for local authorities to set up local development corporations. That is another measure that is positive. However, I am really doubtful whether the specifics, particularly around planning in total, add up to a real agenda that will deliver the levelling up goal that we all want to see.

--- Later in debate ---

[Alex Norris]

I will always think carefully about the contributions the hon. Gentleman makes, but I am afraid that he will struggle to win an argument with Labour on NHS investment. [Interruption.] Conservative Members are all back then—nice to see you. I will take you all on if you want. [Interruption.] Even the Under-Secretary, the hon. Member for Harborough (Neil O’Brien) —but I shall save him for Committee.

On the 12 new levelling-up missions, which are the centrepiece of the White Paper, and so important to the Government that they want to place a statutory duty on Ministers to report on their progress—what a big and bold claim that is—we now see that they come with a rather crucial addendum, which is that, if the Government decide that they do not like them any more, or perhaps think that they will not meet them, they can just do away with them altogether: when they fail, they can move the goalposts. Measured by actions, I am afraid that that is how important those missions actually are to the Government, who cannot even commit themselves to them. In that sense, as my hon. Friend the Member for Wigan said, they are not worth the paper they are written on.

We are told today that those missions are a core part of, and a key moment in, levelling up this country. I find that hard to believe, for the reasons that I have stated. But if they are going to be so impactful that they will create the change on which there is, I think, a universally held view across those on all Benches, why is there no impact assessment? Why is there no impact assessment on regions either? I hope that the Minister will give a commitment that before we enter Committee we will have the chance to see that so that we can debate the facts of the matter.

Levelling up was supposed to be about getting all parts of the country firing on all cylinders, but yet again we do not see that. Another key example: where is the community power in this? If the levelling-up portion of the Bill is really about saying to people, “We want you to have greater control over the state of your community and its future”, why does that stop at a sub-regional level? That is still a very long distance away from communities. We will certainly seek to add to that in Committee, and I hope Ministers will be in listening mode on it, because there is a great deal of expectation beyond this place that we are going to see more devolution to communities. We want to see powers and funds devolved from Whitehall to town hall, and beyond, so that communities are empowered to make these decisions for themselves.

One of the things in the levelling-up section of the Bill that we are pleased to see is further devolution of power and all communities having the chance to access those highest levels of power. However, I cannot quite understand why that comes with the caveat that they must accept the Government’s preferred model, which is a Mayor. The message from the Government seems to be that they are willing to devolve power but only on their own terms. That does not feel like proper devolution. The hon. Member for Mansfield (Ben Bradley) and I frequently talk about devolution of power to Nottingham and Nottinghamshire. I agreed with much of what he said but, in our access to tier 3 powers, which we both want and is wanted universally across Nottingham and Nottinghamshire, I do not see why we should have to take a Mayor as well. I do not see how those two propositions are linked, and I have not heard anything in the debate that has moved me further on that.

The Minister will also, whether in closing or in Committee, need to address the important points made by the hon. Members for Gloucester (Richard Graham) and for Sevenoaks (Laura Trott) about provisions in the Bill that allow powers currently held by district councils to be drawn up from them to combined authority level without their consent. That is a really challenging provision that will not hold for much longer.

As I say, this Bill is not enough, but it is what is now in front of us, and we will seek in Committee to make it better. We will also, I warn the Minister in advance, help the Government by adding back into the Bill some previous Government commitments that are missing from it. I hope greatly that they will want to take them on.

Let me turn to the planning side of the Bill. We welcome planning reform. We want to see the building of genuinely affordable housing. We want communities with good services and thriving town centres. We are glad to see the back of some of the worst excesses of previous policy. This is a much better version than what was publicly announced a year-plus ago. But the reforms could go further to change the system to provide greater support for planning authorities, and to deliver more say and power back to communities. Again, we will seek to do that in Committee. I hope that in his closing remarks, the Minister for Housing might do slightly better than the Secretary of State did on the infrastructure levy. It is an area of significant interest that has come up in a number of colleagues’ contributions, and when the Secretary of State was pressed on it, he was unable to say at what level he thought the levy would be set. That will not do. I understand that that is a complex calculation, but the Opposition ought at least to have heard an assurance that it would not be less than current section 106 moneys, because I do not think that anyone has argued for less money for infrastructure. This “We will tell you later” approach does not work. We do not want to have to get through the whole Bill process only to be told that the level will be set in regulation later.

[Mr Betts]

I want to raise with my hon. Friend an issue about local democracy and local plans, which the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) mentioned. A local plan must be consistent with national planning policies, and correctly so. However, if there is a conflict between a local plan and national development management policy, national policy holds sway and is given priority in any determination. How can it be that a local plan can be drawn up in full consultation with the local community, but if the Secretary of State later decides to change the national policy, it will override the consulted-upon local plan?

[Alex Norris]

I thank my hon. Friend for that important point. There are 200 clauses in this Bill, so if there are 20 words in each, that is 4,000 words, give or take. On the planning side, however, only three words really matter: “to any extent”. They mean that the national plan overrides the local plan under any circumstances if that is what the Secretary of State wishes. I hope the Minister will say in summing up that he does not think that that is the right thing to do, that it is not the Government’s intention and that it will be changed in the Bill. I do not think that that can hold.

We will not seek to stand in the way of the Bill at this stage, but significant changes and additions will be necessary if it is to deliver the change that communities up and down the country are waiting for. After the long wait, it is no great surprise that the Bill is so symptomatic of the Government’s whole approach to levelling up—high on rhetoric, low on delivery. The Government just cannot seem to follow through and deliver properly on levelling up. Perhaps that is because deep down, they are not sure whether everyone on their side really believes in it. They are hamstrung by the Treasury—that is a matter of record—riven by division and drifting towards no defined point. But the Opposition feel this in our bones. It is why we are here, and we will fight tooth and nail to make sure that the Government do not waste this opportunity to deliver power back to the people and communities that we all represent.

Levelling-up and Regeneration Bill

Clive Betts Excerpts

Report stage
Wednesday 23rd November 2022 Commons Chamber

[Dehenna Davison]

It is a pleasure to be here for the next stage of this vital Bill. My right hon. Friend the Secretary of State recently set out his guiding principles for the Bill: beauty, infrastructure, democracy, environment and neighbourhoods—or, for acronym fans, BIDEN. We want to ensure that people across the country have the opportunity to live and work in beautiful places, supported by the right infrastructure, with strong locally accountable leadership and with better access to an improved environment, all rooted in thriving neighbourhoods of which they can be proud. Regrettably, though, there are areas of the country that are long neglected and that will require a concerted effort from us all. We have to put an end to the shameful waste of potential that has held so many of our constituents and our country back for so long.

This is why the ambitions set out in the levelling up White Paper are so crucial. If we are going to achieve our ambitions, we have to be focused. That is why the first part of the Bill creates a self-renewing national focus on this endeavour, through the setting of and reporting on missions to level up. These missions, with their clear, measurable objectives, will drive the action needed to reduce geographic disparities. One such mission is our vision for devolution across England. This is why the Bill creates a new model for devolution: the combined county authority. It also improves existing models thought the combined authority and county deal models, making devolution easier to achieve, extend and deepen.

[Mr Clive Betts (Sheffield South East) (Lab)]

One of the disappointments with this Bill is that, although it extends the principle of combined authorities to county areas, it does not actually transfer any new powers to local government as a whole that are not currently available in some authorities. Could the Minister point out one place in the Bill where a new power that is currently not devolved to local government will be devolved after the Bill is passed?

[Dehenna Davison]

The Chair of the Select Committee is a passionate campaigner on these issues. He will know that the Government are incredibly keen on empowering local areas to take on their own devolution deals, and that is why we are in the process of negotiating a large number of deals, including trailblazer deals with Greater Manchester and with the West Midlands, which I know Members right across the House are incredibly passionate about. We are looking at new powers and new funding to ensure that those devolution deals deliver for local people.

We are making it easier to achieve, to extend and to deepen devolution. At the same time, the Bill is making it easier for local authorities to regenerate their areas by providing them with new and improved tools for that purpose, including a new locally led model for urban development corporations, changes to ensure that any former development corporation can have conferred on it the functions most useful to its purpose, and improvement to the compulsory system to remove barriers so that authorities can assemble land, including brownfield land.

[Mr Betts]

Often, when compulsory purchase powers are used by local authorities, the value of the site they are purchasing is enhanced because they are using those powers and the owner of the site gets a “hope value” addition to what they receive. Would the Minister consider ensuring that, where a CPO has been put in place, no extra value is generated for the owner because the CPO itself is operated or because it is part of a regeneration site as a whole?

[Dehenna Davison]

I am happy to discuss that with the hon. Member in further detail following the debate today. It is certainly something that we are exploring behind the scenes with a view to taking action at a later date.

We are also looking at introducing discretion for local authorities to increase council tax on second homes and long-term empty homes, together with innovative high street rental auctions to tackle the damage that the gradual erosion of high street occupancy can cause.

Hon. Members will recall that the Government have already made provision for the full repeal of the Vagrancy Act 1824. As the Secretary of State has said, the Vagrancy Act is outdated and has to go. This Bill was introduced initially with a placeholder clause, allowing for a replacement to the Act to be added. During the passage of the Bill, however, we have listened to the depth of feeling from Members across the House, and particularly from my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who has campaigned passionately on this issue. After working with Members across the House and having reflected on the right approach to the replacement legislation, I have tabled amendments to remove the placeholder clause. I can commit to the House that the Government will not bring forward any amendments to the Bill on this subject. We will, though, be working with the Home Office to make sure that the police and others have the tools they need to protect communities and ensure that people feel safe.

--- Later in debate ---

“restored power to local people.”––[Official Report, Levelling-up and Regeneration Public Bill Committee, 20 October 2022; c. 907.]

[Mr Betts]

One of the problems with the Standards Board was that it was simply overwhelmed with complaints because residents were allowed to go to it at first instance, rather than appealing to it if their local authority did not deal properly with their case. Another problem was that parish council complaints were allowed under it. If those two issues had been addressed, the Standards Board could have dealt with a smaller number of cases, as an appeal system. It would have been a very different arrangement.

[Mrs Lewell-Buck]

My hon. Friend is correct. It is simply not in the interests of local people to have no mechanism at all to remove someone from office who is acting inappropriately. People in my area who have experienced the damage caused by our previous council leader and his supporters find offensive the suggestion that removing that level of accountability has somehow given them more of a voice or restored any power to them.

It is the greatest honour to serve our community, whether at council level or in Parliament. With that should come appropriate checks, balances and levels of accountability. The public need confidence in the system. They need to know that cases such as those that I have mentioned will never happen again. My new clause would ensure that.

Amendments 71 and 72 simply ask that the Government align the levelling-up missions with the United Nations sustainable development goal to end hunger and ensure access by all people—the poor and the vulnerable, including infants—to safe, nutritious and sufficient food all year round, and that it be measured by tracking the prevalence of undernourishment in the population and the prevalence of moderate or severe food insecurity, based on the food insecurity experience scale. It is astonishing that a Bill that attempts to level up all parts of the UK does not mention hunger or food insecurity once, despite the Government acknowledging that it is not possible to level up the country without reducing the number of children going hungry and living in poverty.

--- Later in debate ---

[James Grundy]

The hon. Gentleman makes an interesting point. The issue is that it does not matter what the actual circumstances are. Regardless of the facts on the ground, Mayors are incentivised by the nature of their role to stand up and say, “I am fighting for my area.” It encourages them to concoct fights with central Government, regardless of the issue. Then we end up with this position where there is constant strife between central Government and regional Mayors.

The problem with regional Mayors—a number of colleagues including my right hon. Friend the Member for Camborne and Redruth (George Eustice) have made excellent points on this—is that it creates one single figure representing in some cases millions of people. A huge amount of power is vested in that individual, and that is deeply unhealthy.

We have heard the arguments for a sense of conformity across local government. I fear that that approach replicates the errors of the 1973 local government reforms, which created ever-larger local authorities. I remember—it was before I was born—that the campaign against it was, “Don’t vote for Mr R. E. Mote”, because the feeling was that the decision-making process was being removed ever further away from small communities to large, more remote places. As I am sure the hon. Member for Wigan (Lisa Nandy) knows, because we share a borough, the people of Leigh in the 1970s campaigned hard to avoid being merged into the Metropolitan Borough of Wigan, and we lost, much to our immense regret. Other communities, such as Warrington, that campaigned successfully to stay out of Greater Manchester are much happier in Cheshire. I know that the good people of Bury successfully campaigned to stay out of the much larger Rochdale borough that was proposed. I fear that we are replicating the errors of the 1973 local government reforms on a county level or, indeed, a multi-county level with these regional Mayors.

I am sure you know, Mr Deputy Speaker, that there is not universal approval for the idea that everywhere should have Mayors. I spoke on “Sunday Politics North West” a number of months ago, and there was cross-party agreement that Lancashire—your home county, where your fine constituency of Ribble Valley lies—wanted a combined local authority, not a Mayor, and I fully support that. It had universal cross-party approval. My understanding is that other areas, such as Cheshire, are basically not entirely on board with the idea of a Mayor covering the entire county.

We have heard about Cornwall, and my right hon. Friend the Member for Camborne and Redruth made a compelling case. The only bit I did not agree with was where he said that Cornwall was a special case. I agreed with every word he said except that, because I believe that every part of England that does not want a mayoral devolution settlement should not be forced to have one. Furthermore, I also agree with Opposition Members who said that the best sort of levelling-up deal and funding should not be tied to having a Mayor. That is an obnoxious provision with which I profoundly disagree. I am afraid that on that particular issue, the Government will not have my support. I place my grave reservations about that measure on record.

In broad terms, I think the Bill is superb. A number of improvements have been made during its progress, and as I have said before, I thank Members who have come forward with amendments, and I thank the Minister for her response on how they will address that. As I have said, I have grave concerns about the path of devolution that we are taking as a Government and those issues need to be addressed. One size fits all will not work across the whole of England. We have to address the serious issues at the heart of trying to hammer square pegs into round holes.

The Minister referred to the Greater Manchester trailblazer devolution deal, just as the Chancellor did in the autumn statement, but I would appreciate it if she conveyed to the Secretary of State that I, and other Greater Manchester MPs, would very much like to be briefed on that. While the Government may have spoken to the Mayor of Greater Manchester, I am afraid that consultation on the issue with Greater Manchester colleagues has not been forthcoming—I see the shadow Secretary of State, the hon. Member for Wigan, nodding. I assume that, like me, she has received very little consultation, or none.

Over the past few years, there has been an unfortunate tendency for Governments and Departments to seem far happier speaking to regional Mayors than to Members of this House. Members of the House should firmly resist the idea of being turned into powerless cyphers. In my view, a Mayor is a part of local government. They should have a lesser role in the governance of this nation than we do as Members of Parliament. To dilute the powers of Members of this House is fundamentally wrong.

After all, the vast majority of Mayors, other than in London, where there is a full Assembly, have scant accountability mechanisms—there is no Greater Manchester Assembly or Merseyside Assembly. Vesting such powers in individuals who negotiate directly with Government Departments, with scant input from Members of Parliament whose areas those mayoral authorities covers, is an unsustainable position. I understand that that is not the fault of the Minister, but I hope she will stress very firmly to the Secretary of State that the issue needs to be addressed, and addressed quickly.

I have covered everything I want to say. Overall, the core of this legislation is extremely sound. I commend the work of the Minister and her colleagues, as well that of colleagues who worked on the Bill before she took up her role. The tension between devolution and localism has come up today and, unless it is addressed, it will continue to come up as we discuss other pieces of legislation. The thing about devolution is that everything tends to get devolved after time and as MPs we get asked about everything. If we become shut out of the discussion and the process, that will present problems, regardless of party and across the House.

[Mr Betts]

We have before us something called a Levelling-up and Regeneration Bill. I agree with the hon. Member for Mansfield (Ben Bradley) who said that the Bill might be better if the planning elements had been taken out of it. The problem is that that would not have left much remaining, because essentially it is a planning Bill with bit of levelling up tacked on.

Indeed, as I said on Second Reading, the Bill has no new powers and there is no new money for levelling up and devolution. The Levelling Up, Housing and Communities Committee has launched an inquiry into the funding of devolution and levelling up. We have just started taking evidence and it will be interesting to see what conclusions are found, based on that evidence.

I do not agree with the hon. Member for Leigh (James Grundy) that we are diluting the powers of Members of Parliament. Hopefully, what we are doing is taking powers from central Government and handing them down to local government. I am in favour of that; we do not do nearly enough of that in this country. Indeed, as Members of Parliament we sometimes have to recognise that we do not have that much power. The Government get on with their business, and occasionally they tell us what they are doing.

[James Grundy]

I agree with the hon. Gentleman’s sentiment, but my concern is that, effectively, devolved Mayors look increasingly like not local government but an interim tier of Government—almost like the Scottish Parliament or the Welsh Assembly.

[Mr Betts]

I will return to that, but I will first comment on the planning issues, which we will hopefully come back to at a future date. There are some challenges around housing targets and how we get to 300,000 if we do not have the building blocks at a local level. I am sure that will be an interesting discussion.

I am in favour of building on brownfield sites wherever possible, because this is about regenerating and bringing life back to many areas that have suffered incredible decline. I would say, however—the Government will have to listen at some point—that building on brownfield sites is more expensive. In my constituency, there are old industrial areas with chemicals in the ground and old derelict buildings that need clearing and improving before we begin to put something new in their place. That is an expense. At some point, the public purse will have to find the money for that to enable private sector development.

The other day, I sat almost entranced for half an hour by a briefing from Professor Philip McCann, who is now at the Alliance Manchester Business School but was previously at the University of Sheffield. His description of this country was staggering. He talked about the inequalities between regions in this country that make us different and more unequal than any other country in western Europe. He said that the inequalities between the richest parts of the south-east and the rest of the country are now wider than they were between East and West Germany at the time of reunification, which is staggering. The richest part of the country in the south-east has a degree of affluence, an income and gross value added levels that make it very similar to the richest parts of western Europe. The rest of the country, particularly northern areas, have productivity levels below those of the Czech Republic. It is staggering that that is where we have got to. One of the big challenges is to remove that inequality.

We are one of the most centralised and unequal countries, so the idea that central government is the way to level up is nonsense; we level up only by getting powers down to local communities. To come back to the point of the hon. Member for Leigh, with which I am not sure I totally agree, that probably means that we need something beyond the size of an individual local authority to enable the economic transfer of power on the scale that is necessary to make a difference—to attract overseas investment, to get the skills agenda going, to put the transport infrastructure in place, and to do all the things that we want to see. That is why combined authorities are probably a good way forward—I will put one or two conditions on that in a second—with or without an elected Mayor.

I was against elected Mayors, but I have come round to the view that they work. I would not impose them on an area, but it is right to have that option. Most areas will conclude from what they have seen elsewhere that having a focal point has helped combined authorities to establish themselves in the public mind. Perhaps it does mean that Ministers go to the Mayors, but so what? I would sooner have Ministers going to the Mayor of South Yorkshire than not coming at all, which was probably the case before.

I have some further caveats, because the Bill does not go far enough to address those fundamental inequalities. I will pick up on the point of the hon. Member for Carlisle (John Stevenson). I remember that, in his time on the Select Committee, we discussed such issues and basically agreed, and I agreed with him today. He said that the Government have a “gradualist approach” and that we have a “patchwork” that lacks clarity, and he is right.

We do not have a framework for devolution that covers the whole country so that we can see where the powers are going to sit. The Select Committee has asked for that and recently asked for it again. I challenged the then Minister, the hon. Member for Harborough (Neil O’Brien), when he came to give evidence to the Select Committee on why we could not see the operation of the subsidiarity that people used to argue for when we were in the European Union—the idea that things should be done at a local level unless there is a good reason for doing them at a national level. He said, “Oh that was a bit radical.” Well, it is a bit radical but it is probably right, and I hope that we can get to that position eventually or at least move towards it.

--- Later in debate ---

[Dehenna Davison]

The hon. Member will be pleased to know that I have a note to return to that in a moment.

My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for Isle of Wight (Bob Seely) raised some important points. We will come to many of their amendments on the second day of Report, when they will have an opportunity to speak on them in more detail. That will be coming soon. Both Members highlighted the passion around high streets, which, as we all know across the House, are vital to the heart and soul of any community. I am grateful to them for raising new clause 34 on compulsory purchase orders. The measures already in the Bill put it beyond doubt that local authorities have the power to use compulsory purchase for regeneration processes, but we are modernising the process to make it faster and more efficient.

As I announced in Committee, we are going even further by asking the Law Commission to undertake a review and consolidation of the law on compulsory purchase and compensation, to make it more accessible and easier to understand. As part of that work, the Law Commission will review existing CPO enabling powers to ensure that they are fit for purpose, and will make recommendations where appropriate. I do not believe that the new clause is necessary; however, I put on the record my gratitude to both Members for the incredibly constructive way that they have engaged on not just this part of the Bill but all of it, particularly regarding planning and housing matters. My hon. Friend the Member for Isle of Wight said that I promised a visit. I am very much looking forward to visiting the Isle of Wight in due course.

[Mr Betts]

On the CPO powers, the Law Commission will not look at the valuations. Who will do that review work? Also, could the Minister set out very simply how the new arrangements will be simpler and quicker for local authorities to organise?

[Dehenna Davison]

One reason that we have asked the Law Commission to undertake the review is to ensure that we deliver in the most appropriate way, but I am happy to follow up separately with the hon. Member on hope value, because it is something that we will come to in the future.

The hon. Member for Westmorland and Lonsdale (Tim Farron) and I had a great time in Committee during the few days that I was there in my role as Minister. It was always incredibly good natured, and I thank him for that. He spoke on new clause 46, as did the hon. Member for North Shropshire (Helen Morgan), which is on business rates reform. As both hon. Members are no doubt aware, the Government recently conducted a business rates review, and the report was published at the time of the 2021 autumn Budget. A package of reforms announced then was worth £7 billion over five years. In the autumn statement incredibly recently, the Government went even further and announced a broad range of business rates measures worth an estimated additional £13.6 billion over the next five years, including freezing the multiplier. The Chancellor of the Exchequer also announced the extension of the retail, hospitality and leisure relief scheme, and a transitional relief scheme for the 2023 valuation.

Levelling-up and Regeneration Bill

Clive Betts Excerpts

Report stage
Tuesday 13th December 2022 Commons Chamber

[Lucy Frazer]

I was pleased to discuss these issues with my hon. Friend, and she is absolutely right that we must build on brownfield first. That is what local communities want. Through not just this Bill, but the consultation that we will bring forward on the national planning policy framework, we will identify how we can encourage local communities to do just that, with incentives through the infrastructure levy, for example, but through other measures too.

The way for a community and local representatives to shape their area’s future is through the local plan. At the moment, local plans are taking too long. The system is too onerous and councils feel that their local constraints are not properly taken into account. The result is that fewer than 40% of planning authorities have adopted a plan in the last five years. That means that, instead of developments being delivered coherently and in collaboration with communities, new houses are being imposed on local people through successive planning applications. Through the Bill and the consultation on the NPPF, which we intend to launch before Christmas, we will ensure that the needs of the community are taken into account when a plan is designed. Once the plan is in place, it will provide protection against other unwanted development.

[Mr Clive Betts (Sheffield South East) (Lab)]

I completely agree with the Minister about local plans. The Levelling Up, Housing and Communities Committee has said that on many occasions. May I just ask her, though, whether, in national terms, the Government are still committed to the 300,000 figure, as a target, an objective, an aspiration or whatever and, if they are, how will they achieve that figure unless the numbers agreed in local plans individually throughout the country add up to that 300,000?

[Lucy Frazer]

I can confirm that the Government are committed to building 300,000 homes because we do need those homes across the country and we need to ensure that young people can get on to the housing ladder. As I have just identified, communities are not agreeing local plans with those figures in them, so they are getting development where they do not want it; it is speculative development. What we will see through this measure is communities coming together with that starting point number, but seeing what works for their communities. When they engage properly on it, I think we will see that housing coming through.

--- Later in debate ---

[Lucy Frazer]

I will make a little progress, because I would like to address the Government amendments, which I will do in five categories. First, we are making it easier for people to develop where they want to develop, and where it delivers the best gain to the community and ensures that planned-for development actually happens. I will highlight five measures in this first category.

Through new clauses 49 to 59, we will pilot community land auctions. They will seek to increase the supply of land and aim to capture more land value more effectively to the benefit of the local community. Planning permission will not be granted automatically on sites allocated in the local plan through the auction process.

Through new clauses 60 and 69, we are allowing for street votes enabling residents to come together and propose additional development on their streets in line with their preferences—subject to meeting prescribed requirements—and vote on whether it should be given permission. In speaking to those new clauses, I would like to acknowledge the work of my hon. Friend the Member for Weston-super-Mare (John Penrose) and the “Strong Suburbs” report by Policy Exchange.

We are making it easier for people to access suitable plots to build their own homes. We are building on the immense work of my hon. Friend the Member for South Norfolk (Mr Bacon). We recognise the importance of self-build and custom housebuilding, and new clause 68 clarifies the duty on authorities to provide for plots for such homes in their planning decisions.

We will also seek to reduce barriers to smaller-scale developments that communities can easily get behind. I know that my hon. Friend the Member for Northampton South (Andrew Lewer) has worked significantly on that area. I can confirm that our intention is to consult on changing national policy to encourage greater use of small sites, especially those that will deliver higher levels of affordable housing.

Importantly, we are ensuring that when permissions are given, developments can be built out quickly. New clauses 48 and 67 deal with that. Members across the House have been concerned about the rate at which development occurs once planning permission has been granted. It is wrong for developers simply to sit on planning permissions, because that increases the number of permissions that have to be granted and risks overdevelopment. The Bill introduces further steps to tackle the issue, including a requirement for developers to report on the rate at which they build, and allowing authorities to deny permission for further development on the same sites where the developers have failed to build out. All those measures will encourage development where people want it and where they have agreed to have it.

[Mr Betts]

I am not sure whether the Minister has looked at my amendments to her new clause 67. I agree with her about ensuring that builders build out at the required rate. However, some builders build out while ignoring the conditions for the planning permission put on them. I have a really bad case of that in my constituency with Avant Homes, which does not connect with local people, puts mud all over the roads and puts silt in the local brook—that sort of thing. Will she accept that local councils should be entitled to take account of failures to observe conditions when looking at future planning applications?

[Lucy Frazer]

We are looking at the issue carefully and will consult on further measures that we might be able to bring forward. I assure the hon. Gentleman that where there are reasonable avenues that we can explore, we will look closely at them.

--- Later in debate ---

[Mr Betts]

I will try to draw on the work that the Select Committee has done in a number of reports over the years. First, I want to come back to the point I raised with the Minister about planning authorities having the right to take into account whether developers have fulfilled planning conditions in the past. That is a reasonable request and I am pleased that the Minister is going to consider it. I would be grateful if she could keep me updated on that. From the Front Bench, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) has mentioned the issue of ensuring that the change from 106 to an infrastructure levy does not reduce the number of affordable homes being built. Changing the present wording in the Bill, in which charging authorities must have regard to this, to make them ensure that it happens is a really important change that the Government need to think carefully about.

On the new clauses that I have tabled on skills and resources, one of the biggest challenges for planning authorities is the reduction in their spend and the reduction in the number of their planning officers. When the pressure is on to turn around individual planning applications, it means local plans get put on the back burner and do not get delivered on time. Also, as the Minister has said, too many local plans are out of date, and that needs to change. New clause 122 simply asks the Government to do a review and produce a plan for local authority planning staff and resources. We need a plan for staff and workforce in the health service and social care, and it is just as important in the long term that we have a similar approach to how we deliver our planning system. Currently that is not being done, and local authorities are struggling for those resources and that manpower.

I move on to the tricky issue of housing targets. In the end the Government cannot deliver their national target if they do not have a view about local targets. Their local targets have to add up to the national target if they are going to work. My new clause 123 says that the Government should produce a properly assessed housing need figure for each local area, that they should have discussions with local authorities about that in a transparent and open way and that, if the local authority agrees with that target, that should be the target set in the local plan. If the local council agrees with central Government, then put it in the local plan. If there is no agreement, the local authority should come forward with its own target, and that can be debated as part of the inquiry and the inspector will decide which is the appropriate way forward. One of the problems with local plans at present is that they often get bogged down, not with discussions about where housing should go—

[John Redwood]

rose—

[Mr Betts]

I will give way to the right hon. Gentleman.

[John Redwood]

Does the hon. Member not understand that the whole point about more local determination is that the local community ultimately has to say, “This is all we can manage and we cannot be overridden”?

[Mr Betts]

Yes, I understand that, and that should be taken into account, as it can be at the local plan stage. The problem is that, if every local community decides that it does not want house building, we end up with not enough houses being built nationally. That is the simple reality of life. What I am saying is, yes, have the argument at the local plan stage, but all too often now, local plans get bogged down not with where the houses should be built or with the quality of the housing and the infrastructure, but with arguments over housing numbers, with developers and councils employing lawyers and consultants to argue with each other. That is what happens. If we can get agreement between the council and the Government and that is then accepted as the target for the way forward, that is a suitable way to do it, rather than the current endless debate and argument about numbers and calculations.

I want to mention one other amendment, on environmental outcomes. One of the biggest arguments at local level is often on the environmental impact of development. There is great concern among local communities about the environmental impact and the fact that, when developers commission an environmental report, it is commissioned by the developer and paid for by the developer. Communities are often suspicious that the report produces what the developer wants to hear, rather than what the actual environmental impact is for those communities. My amendment 105 is simple: in future, the developer should pay, but the local authority should commission. In that way, we make it absolutely clear that environmental outcome reports on individual developments are completely independent, and that local communities can trust them. That seems to be a sensible suggestion. I hope that the Minister will accept it and move it forward.

[Sir Gary Streeter (South West Devon) (Con)]

I rise to speak to new clauses 8 to 11 in my name and the names of other hon. Members.

As chair of the national parks all-party parliamentary group, and with a delightful corner of Dartmoor in my constituency, I am pleased to propose these new clauses. As we all know, national parks provide many benefits to nature, climate, heritage and culture. However, they are underpinned by an outdated legislative framework, which prevents them from realising their full potential for people, nature’s recovery, the 30x30 initiative and the Government’s net zero goals.

The Glover review of protected landscapes in 2019 highlighted these issues and put forward a package of recommendations to address them, the majority of which, to be fair, were accepted by the Government in their response to the review. But it is time that we implemented them to make best use of the rich natural heritage that we have been blessed with in our country. The new clauses that I have tabled could act as a vehicle to take forward the Glover review’s recommendations.

National parks play a key role in furthering the Government’s levelling-up mission, particularly in having a positive impact on our health, wellbeing and pride of place. Given this Bill’s focus on environmental matters and the planning system, it provides the perfect opportunity to implement the Glover recommendations to strengthen national parks as planning authorities. We must take this opportunity as these next few years are vital for meeting the commitment to protect 30% of England for nature by 2030, for halting the decline in species abundance and for making progress towards net zero.

New clause 8 delivers on proposal 1 in the Glover review to give national parks a renewed mission to recover biodiversity and nature. Natural England has found that only 26% of the protected habitat area inside national parks is in favourable condition, compared with 39% for England as a whole. The new clause seeks to address this disparity by recognising that we have a role not just in protecting national parks, but in actively strengthening and recovering them. It also delivers on proposal 7 of the Glover review, which proposed a stronger mission to connect all people with our national landscapes.

National parks have invaluable potential to improve people’s connection with nature and our levelling-up goals require that we should all enjoy equal access to nature across the country. During the lockdown, we learnt that, if we did not already know it. Natural England has shown that, if everyone has access to a green space, we could save the NHS more than £2 billion a year.

New clause 9 implements two recommendations from the Glover review to give national park authorities a new duty to address climate change and to strengthen the existing duty on public bodies to further national park purposes. The Government have already said that national park management plans should contain

“ambitious goals to increase carbon sequestration”

and

“set out their local response to climate adaptation”.

New clause 10 helps in setting out realistic goals for national park improvement. That would deliver other key elements of proposal 3 in the Glover review, that strengthened management plans should set clear priorities and actions for nature’s recovery and climate in national parks, and that legislation should give public bodies a responsibility to help prepare and implement management plans.

New clause 11 seeks to address Glover’s ambition to increase skills and diversity on national park authority boards. The Government’s response to Glover committed to measures to ensure that boards

“have more flexibility to balance diversity and expertise”

and proposes

“a more merit-based approach”.

So let us get on with it. The new clause would deliver this flexibility, removing the restrictive legislation referred to in the Government’s response, and ensure that boards are better equipped to deliver national park purposes. I am supported in these new clauses by the Better Planning Coalition, representing 27 organisations across the key sectors of the environment, housing, planning, and heritage.

I had a positive meeting last week with the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Copeland (Trudy Harrison), who is responsible for national park policy. She is committed to working with national parks to bring about the bright new future that Glover anticipates and I hope that those on the Front Bench today will assist her in that vital mission.

--- Later in debate ---

I would like to touch on the critique made by the those on the Opposition Benches about the infrastructure levy. That critique is wide of the mark and altogether misses the point of the levy. For too long, there has been too little incentive for developers to marry their developments to good-quality infrastructure and new affordable housing. That is going to change with the infrastructure levy, which is a huge upgrade on the status quo and will allow all English charging authorities to adopt a more coherent and streamlined approach. It will bring to an end one of the principal issues behind the current shortages of affordable homes: the unequal negotiating positions between under-resourced local planning authorities and deep-pocketed developers.

[Mr Betts]

Will the Minister give way?

[Lucy Frazer]

I am not going to give way; I will make substantial progress, because a lot of people have asked me questions. I want to give them commitments, and I will then be very happy to take interventions. I took all the interventions in opening the debate.

My hon. Friend the Member for Milton Keynes North (Ben Everitt) made an important point about exempting affordable housing from the infrastructure levy. I assure him that we intend for the full value of on-site affordable homes delivered by the levy to be offset by the total levy liability. That means that the affordable housing element of a development is not itself chargeable for the levy but that the scheme as a whole still contributes towards the infrastructure that may be needed to support it.

On infrastructure, my hon. Friend the Member for North East Bedfordshire (Richard Fuller) and the hon. Member for North Shropshire (Helen Morgan) spoke about paying money up front. The Bill already provides powers for levy regulations to make provision for payment on account and payment by instalment. It will also be possible for local authorities to borrow against future levy receipts. On top of all that, the infrastructure levy is a test-and-learn approach, so as we roll out it out going forward, we will improve it.

The shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), raised points about the national development management policies. Those policies will cover the common issues already dealt with in national planning policy, such as green belt and areas at risk of flooding. That will reduce the burdens on local authorities by removing the need for those issues to be repeated in local plans.

I turn now from the infrastructure levy to issues relating to the environment. My hon. Friend the Member for South West Devon (Sir Gary Streeter) mentioned the Glover review. He will know that DEFRA is implementing several recommendations from that landscapes review and is also continuing to consider how best to implement others.

My right hon. Friend the Member for Epsom and Ewell (Chris Grayling) mentioned hedgehogs and vulnerable species. We have discussed that issue, and as he knows, we are already taking steps to protect vulnerable species and prevent the destruction of habitats prior to any survey taking place. The legislative framework for biodiversity net gain already includes provisions to address that. I am very grateful for the conversations we have had, because as a result of the points he has brought to my attention we intend to look further at how we can strengthen that, and we will consider it further in the Lords.

My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) made a number of valid points, and he was right to highlight the importance of wild belts. Our local nature recovery strategies are at the centre of the Government’s approach to driving nature’s recovery. The Environment Act 2021 already obliges responsible authorities to map sites that could be of particular importance for nature’s recovery. Local authorities must have regard to the sites identified and the reasons behind their identification. That duty applies to all their planning functions. We will continue to look at that issue as we enable the preparation of local nature recovery strategies, which will begin across England soon.

Local support underpins our approach to changing planning policy on onshore wind development in England. I thank my right hon. Friends the Members for Middlesbrough South and East Cleveland and for South Holland and The Deepings (Sir John Hayes) for their thoughtful contributions on this matter. We will consult on onshore wind using a more localist approach, which will give local authorities more flexibility to respond to the views of their local communities.

We recognise that although some communities will want onshore wind, some may not. That is why important safeguards will be in place. Authorities will be able to identify appropriate locations for onshore wind that do not have a significant impact on precious visible amenity. Special consideration will have to be given to preserving the landscapes of, for example, the Somerset l evels, Romney Marsh and the magnificent fens of Cambridgeshire, Lincolnshire and Norfolk.

Our valued landscapes—particularly national parks and areas of outstanding beauty—and important habitats such as sites of special scientific interest will continue to be protected. Councils will be in full control of what is developed within the local authority boundaries. A combination of robust national and local planning policies will ensure that communities are able to rebuff unwanted speculative development by appeal.

--- Later in debate ---

[Lucy Frazer]

I am always happy to hear recommendations from the Education Committee and work with the Department for Education. As I said, the Bill includes the ability for regulations to allow for what I think is being asked for. That is already in the Bill, and that might be the place to consider it.

[Mr Betts]

Will the Minister give way?