National Planning Policy Framework

Duncan Hames Excerpts

Thursday 20th October 2011 Commons Chamber

[Greg Clark]

I am responding to the hon. Member for Blackley and Broughton (Graham Stringer).

In the draft framework, we decided not to use what had been quite a crude definition. Another example—something that I did not know before—is that a china clay quarry in Cornwall apparently falls outside the definition of a brownfield site. Paragraph 165 of the national planning policy framework therefore contains a requirement on councils to allocate land of the lowest environmental value. That was suggested by the environmental charities. There have been representations to say that some strictly brownfield land that has been developed has, over the years, been put back into use to support nature, especially in our cities. That was the reason behind having a more environmentally based definition.

Without pre-empting the consultation, which would clearly be wrong, let me say that there have been suggestions that, because some people have got used to the word “brownfield”, they might appreciate some reference—some explanation—that links the policy to that. That is a representation that has been made, and given that it is our intention, for all the reasons that the hon. Member for Blackley and Broughton suggests, to ensure that we bring back into use first land that has been derelict or previously developed and that makes a lesser contribution than green fields, that will be made absolutely clear when we respond.

[Duncan Hames (Chippenham) (LD)]

The planning framework also requires local authorities to bring forward an additional 20% spare land beyond the sites required to meet their five-year housing supply, so it is entirely possible that one sixth of all the land made available in the plan is not developed, while the rest of it is developed. We could therefore see development on land that is certainly not of the least environmental value.

[Greg Clark]

It is the Government’s clear intention that it should be the case, as it is a requirement to bring forward land of the least environmental value, but let me comment on my hon. Friend’s point about the sixth year, as it were. If we are putting local plans first and genuinely want a local plan that is sovereign and determines what will happen for the future life of a community, it must be deliverable, sound and accurate. What is known empirically across the country is that not every piece of land that is allocated turns out to be capable of development in the way anticipated. Sometimes there can be fewer homes developed on a site than originally thought, with an allocation for six or seven homes ending up with only four or five, for various reasons—perhaps a tree is subject to a tree preservation order, for example. There is always some fallout. The proposal in the consultation suggests that if we are to plan for the number of homes that are really needed—there is no longer any number being handed down from above—we have to anticipate some drop-off, so a buffer is necessary. It is not a requirement to build any more homes than needed; the purpose is simply to make the plan as accurate as it can be.

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[Duncan Hames]

Does the hon. Lady agree that the Government will have failed to achieve greater localism through their reforms if we end up with more decisions being made by planning inspectors in that way?

[Rebecca Harris]

I absolutely agree. I very much want decisions to be much more locally based. That inspector’s demand would have resulted in a crazy oversupply of land and it caused uproar in the local community, and I am indebted to my local councillors for the withdrawal. It seems that the inspector had been very much persuaded by the counsel of the large-unit developers that the council had failed to provide enough deliverable land in the first years of its plan, despite the fact that it had allocated a good quantity of land on previously developed sites to meet its current targets.

The existing system in this country requires councils to allocate sites for which they have evidence that the building can take place within the first five years and then within the second five years. After that, there is up to a decade or so of supply of more safeguarded land. However, I have watched the processes at first hand and it strikes me that what counts as evidence in planning circles is often simply argument—often that of the large-unit builders.

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

The Communities and Local Government Committee, which I chair, is in the middle of an inquiry on the national planning policy framework, so, like the Minister, I do not want to come to conclusions today, as it is important to hear all the evidence before reaching any decisions. I thank the Minister for advising the Committee at an early stage of his intention to bring in a new NPPF and for asking us whether we wanted to be involved in the consultation process by conducting an inquiry. We have indicated that we will reach our conclusions before the Christmas recess as part of the consultation. I also want to welcome my right hon. Friend the Member for Leeds Central (Hilary Benn) to his new post and thank him for raising a number of important points in his contribution, many of which have been raised with the Committee and which we want to address.

I am sure that the objectives that the Government are trying to achieve—building more homes and providing more jobs—are shared across the House. I certainly have a long-standing interest in trying to increase the number of homes being built in this country. It is a prime need and something that all Members should be interested in. The real issue, of course, is where that building and development will take place. That, in essence, is what the planning system is all about.

In looking at the Government’s proposals, there are a number of questions we want to ask first. Is the planning system really responsible for the lack of house building and growth in this country? Is there evidence for that? Those are the questions we should address first. If there are problems with the planning system, is it a problem of the policy and guidance, or one of process? Is the process of getting local plans agreed too lengthy? Those are the sorts of issues that the Committee wants to look at, but the fundamental question is this: is there clear evidence that planning is holding back house building and growth, or are other factors more important?

The Committee has certainly heard much conflicting evidence. We had the National Trust and the Home Builders Federation sitting before us giving evidence together, so it was apparent that there are slightly different views about the wisdom of the Government’s proposals. We all welcome the fact that the Minister is listening, and hopefully he will listen to the Committee’s recommendations when they are made. If he is minded in the end to make some significant changes to his proposals, will he consider a further round of consultation? If we are really to get this right, is it not important that we have the maximum amount of dialogue, because there is a common interest in trying to ensure that the matter is taken forward in the right way.

I welcome what the Minister said about transitional arrangements. We have heard much evidence suggesting that we cannot simply press a button and change from one system to another without an awful lot of problems being created. Indeed, there is legal evidence suggesting that, because no local plan will be in place that has had a chance to take account of a new framework once agreed, on day one all local plans will effectively be out of date and inconsistent with the national guidance. Clearly, therefore, there must be a transition to allow change to take place. The history of changes in planning policy and legislation reveals that any change at all, and even the proposal of change, creates uncertainty and tends to cause delay, increase the number of appeals and involve the lawyers to a greater extent. We ought to look at how we can minimise those impacts and get to the best position.

A number of specific concerns have been raised with the Committee which we will want to look at. First, is all the guidance that is being scrapped really useless? Has any planning authority really said, “This is irrelevant and we have no need for it?” Is there a danger that once it is all removed at national level councils will start to look at the local level and incorporate more and more in their local plans, because if their local plan is silent on something they will worry that they will get development that they do not want? That is a concern that we must reflect on. Will simply stripping out everything and pretending that it does not matter really be of benefit?

What is the precise link between the national guidance, local plans and neighbourhood plans, which are very new and untested? The framework refers a great deal to the importance of local plans, but it does not say that any application that is approved has to be consistent with the local plan. That is stated in national legislation, so there is a relationship, but is it absolutely clear, because national legislation apparently has primacy over the guidance? That relationship has to be worked through. Having listened to Government Members, I think there is clearly an issue to be worked through about the national requirements for more homes, on climate change and regional requirements on waste disposal, and on Traveller sites and how they relate to local aspirations at local planning level where there may be differences. If all the local plans and the plans for housing in them do not add up to the requirements that we need at national level to build sufficient homes, where does that leave us? There are clearly concerns that go beyond one local authority boundary. The duty to co-operate is in place and the Minister has taken steps to strengthen it, but is it sufficient to ensure that we can deliver on those wider issues? There are some carrots, but are there any sticks? Can any penalties be imposed on local authorities that do not co-operate, and what does not co-operating actually amount to? Those are also concerns.

Concerns have been raised with the Committee about sustainable development. Should there be a national definition, which is much clearer and, perhaps, written down in legislation or in the framework? Should it be included? If it is, the point that my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford) made will be important. Will the definition be applied consistently at a local level, or will there be differences in an application and in how we apply the definition in a northern industrial town with lots of dereliction, as opposed to in a leafy suburb in the south or, indeed, in a national park? There is not much special reference in the framework to the differences that might be applicable and relevant in different areas, so we want to address those matters in particular, and it is important that we do so.

People have made the point to the Committee that the framework came out of proposals for growth. There are three legs—economic, social and environmental—to the stool of sustainable development, but has the economic leg become a little longer than the other two, and is the stool becoming a little unbalanced? Is too much emphasis being given to economic factors, which in any decision might override environmental and social factors?

[Duncan Hames]

I am finding the hon. Gentleman’s speech very informative, as indeed was his pertinent intervention during the opening speech. Does he share my concern that the question of whether an application qualifies for the presumption of sustainable development might end up being decided by the courts and through case law, rather than by local, democratically accountable councillors?

[Mr Betts]

That is absolutely right. No one here wants lawyers involved in making decisions that should properly be made in this Parliament, and that is why we have to get the policy absolutely right and look at the definitions. Indeed, there is a range of definitions in the framework, some of which are untested and we want to be clear about.

In the Select Committee the other day, we took evidence on the issue of “significant and demonstrable”. What does it mean? When we pushed a practitioner who was on the group that made the initial recommendations to Ministers, asking him, “What does significant mean?” he said, “Well, of course, if it wasn’t significant, it wouldn’t matter.” That is an issue, because the adverse consequences of a development might outweigh the benefits, but if they do not outweigh them in a significant and demonstrable way, the application will still have to be accepted. We have to probe some of the definitions.

I welcome the Minister’s comments on brownfield development and on taking another look at it. I understand some of the concerns of Government Members about building in gardens, but we should not allow those concerns to enable the removal of brownfield development. The Minister is looking again at that issue and, in particular, at how it relates to the additional 20% of houses and the contingency that will have to be planned for. That is very welcome, indeed.

We have to look at the “town centre first” issue. Why have offices been removed from it? They are an important part of a sustainable “town centre first” strategy, so will the Minister make it clear that, if an application fails a sequential test, it will be deemed unsustainable? How does the sequential test relate to that issue?

The Minister has not mentioned the needs test, which it was Conservative policy in opposition to reinstate. I opposed the previous Labour Government’s removal of it, so will he look at that issue, too?

The Select Committee has a lot of issues to look at. We will try to do so in an evidence-based way, which is how we try to operate; we will try to identify the real concerns; and, where we think that there are genuine concerns, we will try to go to the Minister with some clear proposals on how the document might be amended with benefit.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am delighted to follow the hon. Member for Sheffield South East (Mr Betts), the Chairman of the Communities and Local Government Committee, because he is one of the more knowledgeable Opposition Members on these matters, and he made some very pertinent points.

We may trade figures, as the right hon. Member for Greenwich and Woolwich (Mr Raynsford) started to do, but his Government inherited a golden legacy, and although the planning system can bring forward permissions, it cannot ensure that houses are built. His Government inherited a golden legacy, but they managed to ruin it, and we are now are in a very difficult situation in which we need to build more houses. The planning system has a part, but only a part, to play in that; the market has a big part to play, too.

I welcome the actions of my right hon. Friend the Minister in getting rid of regional spatial strategies, which the previous Government introduced. I have opposed them very strongly, simply because they have not worked. They have not produced the number of local plans required, and they have alienated many local people from the planning system, so my right hon. Friend has done the right thing in bringing forward this new national planning framework. I wish him every possible success.

I declare an interest, which is in the Register of Members’ Financial Interests, as I have property that could benefit from these planning changes, and I, like the right hon. Member for Greenwich and Woolwich declared, have a non-pecuniary interest, too, because I am a fellow of the Royal Institution of Chartered Surveyors and used to practise in the planning field.

One issue that is not in the NPPF is the costs in the planning appeal process. In my experience, small local authorities often have to weigh up the correct planning decision while bearing in mind the cost of appeal. My local authority has a development budget of about £2 million, and, if it has to take on board four appeals in any one year at £50,000 each, that is 10% of its entire development budget.

I have a proposal to deal with that. The default setting should be that the developer, who after all gets the benefit, will be expected to pay the local authority’s reasonable costs on an appeal. The issue of costs could then be varied by either the planning inspector or the Secretary of State in a particular place where the local planning authority has acted blatantly and without good reason against its own local plan or has ignored relevant national guidance.

Turning now to the issues that are governed by the draft NPPF, my first concern is about the guidance relating to the increased supply of housing. I am particularly concerned about the requirement in paragraph 109 for local authorities to provide an additional 20% of the existing five-year land bank. The five-year land bank is a rolling programme. Every time one permission is built on, it has to be replaced with a new permission. In my area, that is bringing about a substantial amount of new building land. If we impose this extra land on top of the existing five-year land bank, it will become unsustainable, it will sterilise more land through planning permission than is necessary, and it will give rise to the wrong assumptions on infrastructure planning. I hope that the Government will think very carefully about introducing this additional 20%; otherwise, many people in our areas will become very disillusioned with the planning system.

[Duncan Hames]

Will the hon. Gentleman give way?

[Geoffrey Clifton-Brown]

I will give way once.

[Duncan Hames]

In response to my earlier question, the Minister said that he did not want to require local authorities to build for more than the five-year housing supply. That being the case, does the hon. Gentleman agree that it is important that the housing that is derived from windfall developments should be taken into consideration against the need that the local authority needs to meet?

[Geoffrey Clifton-Brown]

I agree with the hon. Gentleman. He must have my notes, so I shall continue.

The Government should reconsider what counts towards housing numbers in a local authority area. First, they should allow for windfall sites; after all, these are real gains, and they should be encouraged.

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[Joan Walley]

But where are the inducements to build houses in Stoke-on-Trent, where there is planning permission for them? It is not the planning permission system that is failing; it is the policies of the Treasury and other Departments. They are not ensuring that we can build the homes that are so desperately needed on brownfield sites.

I wish to mention the role of the Environmental Audit Committee. I am very pleased that we are collaborating with the Communities and Local Government Committee to examine the whole issue of planning. Our Select Committee has been charged with considering the definition of “sustainable development”. That is a key issue, and Ministers from DCLG and DEFRA were before the Committee in a united stance just last week. The present Minister gave what I thought was an undertaking to go away and look at the evidence—I stress that we are examining evidence-based representations. He now needs to consider how the detailed recommendations that we will make on a definition of “sustainable development” can be integrated into the national planning policy framework before it is too late. That is critical.

[Duncan Hames]

The hon. Lady is recognised for her expertise on this subject. Does she agree that the reason the definition of “sustainable development” published in the draft framework has three legs is that all three of them count? It would not be satisfactory for developments to benefit from the presumption in favour of sustainable development if they were contributing to just one of those three legs and the overall net effect on sustainability was negative.