Levelling-up and Regeneration Bill

Earl of Devon Excerpts

Committee stage
Monday 20th February 2023 Lords Chamber

[Lord Carrington (CB)]

My Lords, I declare my interests as a farmer and landowner as set out in the register. I would like to apologise at the outset for not speaking at Second Reading, but I was unable to attend the whole debate. However, I spoke at length on this issue during the debate on the Queen’s Speech.

Like others, I was deeply involved in the inquiry undertaken by the All-Party Parliamentary Group for Rural Business and the Rural Powerhouse, Levelling up the rural economy: an inquiry into rural productivity. At the time, this was warmly welcomed by the Government. I have therefore taken this opportunity to table Amendment 33, which would include the principal recommendations of this inquiry in the Bill. I am also most grateful for the support of my noble friend Lord Devon, and I heartily agree with everything that has been said by the noble Lord, Lord Foster of Bath, and the noble Duke, the Duke of Montrose.

The conclusion of the APPG inquiry was that no Government have had a programme to unlock the economic and social potential of the countryside:

“The need to ‘level up’ the countryside is as urgent as it is obvious … Rural homes are less affordable than urban homes. Poverty is more dispersed … making it harder to combat, while the depth of rural fuel poverty is more extreme than those facing similar circumstances in towns and cities. Only 46% of rural areas have good 4G coverage, and skills training and public services are harder to access.”


As we have heard from the noble Lord, Lord Foster, the result is that the rural economy is 18% less productive. Closing this gap in England alone would produce a gain to the economy of £43 billion. The inquiry concluded that many matters affecting the rural economy

“fell between the cracks of Whitehall”,

as it is commonly assumed that Defra alone is responsible for the rural economy.

I therefore welcome the opportunity this Bill gives to ensure that all Government levelling-up policies take into account rural-proofing principles. To argue that the statement of levelling-up missions covers the main disparities experienced by rural areas is not sufficient, as many of the identified challenges are much greater for rural businesses and communities. Poor transport, restrictive planning, geographic isolation, lack of access to skills training, lack of digital connectivity and lack of affordable housing demonstrate this.

These challenges would be easier to overcome if the Bill recognised the importance of rural economic development. Some 23% of all businesses are based in the countryside, and 85% of these are not in farming or forestry. The amendment would ensure that the Bill makes explicit reference to the rural-proofing of government policy across all departments, so that the impact of decisions on the rural economy is assessed and there is a mechanism to tackle the disparities inherent in rural areas.

For too long, those living in rural communities have been considered an afterthought in policy-making. Rural-proofing is a reactive measure to policy. If the Government retain the view that rural-proofing can be an effective tool in assisting levelling up, then the Bill must provide a legally binding obligation on all government departments to meet their respective rural-proofing obligations and ensure compliance. Can the Minister assure us that the Government will adopt this important amendment, as they have already welcomed the APPG inquiry’s conclusions?

[The Earl of Devon (CB)]

My Lords, it is an honour to speak to this important group of amendments focused on the rural and coastal implications of the levelling-up strategy. I particularly speak to Amendments 3 and 33, to which I have added my name, and also Amendment 53 from the noble Baroness, Lady Taylor, which I support. I apologise for not being present at Second Reading, and note for the purposes of this and future contributions my interests in the register, particularly my interest as a rural business operator near deprived coastal communities; my role at Michelmores with clients in both rural and urban development; the work that I do with Exeter City Council, offering a rural voice to support the city’s sustainability and well-being aspirations; and my self-appointed role as a champion of Devon, which has significant rural and coastal populations.

The opening of the Bill reminds me of the opening provisions of the Agriculture Bill, which listed the public goods that the environmental land management scheme was to deliver. Those public goods were in the Bill, and we spent many happy hours debating what should or should not be included. It was described as a Christmas tree with a bauble for just about everyone. This Bill does not have missions on its face, but the missions listed in the White Paper are a similar set of baubles: shiny objectives intended to offer something to everyone. As just debated, I too am concerned that the Government will be able to change and/or abandon those missions without adequate scrutiny. Also, as I think we will hear in the next group, I am surprised, given this Government’s environmental ambitions, that environmental targets are excluded. Given that the Treasury-commissioned Dasgupta report highlighted the crucial economic importance of ecosystem services and biodiversity—largely delivered through our rural economy—it is remarkable that the environmental mission is absent. Without appropriate focus on the rural and coastal economy, we will not achieve those environmental ambitions.

However, the amendments in this group are aimed not at expanding or amending the levelling-up missions but at making explicit where geographically those levelling-up missions are to be targeted. There is a real fear among residents of deprived rural and coastal communities that the Government’s focus will be upon urban regeneration, particularly in the north of England, and that, the Government having secured their Commons majority by promising levelling up to such communities, the deprived rural and coastal communities in the east, south and west of the country, whose votes did not swing the election, will miss out once more, entrenching deep-rooted disparities.

Your Lordships’ Select Committees provide compelling evidence to support these amendments. As we heard in his excellent speech opening the debate, the noble Lord, Lord Foster, chaired the Select Committee on the Rural Economy, which found that

“successive governments have underrated the contribution rural economies can make to the nation’s prosperity and wellbeing.”

In the years since that report, the rural disparities that the committee identified have only increased, with the pandemic and the cost of living crisis wreaking havoc, alongside insecurities over farming.

The pandemic entrenched the deprivation caused by inadequate digital connectivity. The collapse in local government funding has seen public transport slashed in rural areas. Planning challenges and an influx of wealthy home workers have inflated house prices beyond all reasonable measure, and there is little or no new affordable housing being built. Increased energy prices, as we have just heard, have fallen particularly hard upon the rural economy, given the escalating cost of gas and oil to heat isolated homes and businesses. Government support for farming businesses has been dramatically cut, with the new ELM scheme yet to be delivered. At the same time, the public are demanding ever more access to our rural spaces, which is causing a spike in crime, litter, trespass and tensions. Amendments 3 and 33, along with a number of others in this group, would ensure that rural communities are not missed out once more, and that the principle of rural-proofing is enshrined in the levelling-up agenda.

As to coastal communities, the story is no better. The Select Committee on Regenerating Seaside Towns and Communities reported in 2019 that

“for too long our seaside towns have felt isolated, unsupported and left behind.”

I could not agree more, and therefore strongly support Amendment 53 from the noble Baroness, Lady Taylor.

If the Bill is not specific as to where we need to focus the levelling-up missions and does not provide for an analysis of its impact upon our forgotten and ignored communities, those communities may fall further and further behind. The levelling-up agenda will simply blow in the political wind, allowing successive Governments to offer baubles to the regions they favour, rather than those in most objective need.

Levelling-up and Regeneration Bill

Earl of Devon Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

I obviously completely support Amendment 240 in the name of the noble Baroness, Lady Hayman of Ullock. However, of all the amendments we have debated, it is Amendment 232 in the name of the noble Baroness, Lady McIntosh—which would safeguard high-risk flood zones from development and people who may inadvertently purchase a house built in a high-risk flood zone—that would provide clarity. Let us get that clarity because although the Environment Agency and local flood management groups will be clear, the Government are not as clear. This amendment would give that clarity of purpose: do not build in flood zones 3a and 3b for domestic purposes. If the noble Baroness, Lady McIntosh, wishes to test the opinion of the House on this critical issue, we on these Benches will support her.

[The Earl of Devon (CB)]

My Lords, I had not expected to speak but this interesting debate has raised a couple of questions which maybe the Minister or the noble Baroness, Lady McIntosh, may address, particularly concerning Amendment 232.

I note that I am a member of the Wetlands APPG, so wetlands and flood plains are very close to my heart. I am also a member of the Devon Housing Commission so the cost and availability of housing in rural areas is very close to my heart too. There is a conflict here and I wonder whether Amendment 232 would have too big an impact on the availability and affordability of housing in areas near these floodplains.

I wonder whether the Minister or the noble Baroness, Lady McIntosh, if she sums up, can assist me on that point. I also wonder, given that we have just discussed the biodiversity net gain principle, whether we can apply that principle to building housing on these sensitive areas, such that if flood plains are being used up to create residential housing in essential areas, we look to invest in creating further areas for flood relief and landscaping to offset and ameliorate the problems created by building in these important areas where housing is required because it tends to be accessible and somewhat more affordable.

[Earl Howe (Con)]

My Lords, as we have heard, this group of amendments addresses a range of issues relating to water management and flood risk and I think it appropriate for me to begin by responding to Amendment 231, the first amendment in this group. I am grateful to my noble friend Lady McIntosh of Pickering for this amendment because it gives me the opportunity to tell the House that following publication of the review for implementation of Schedule 3 to the Flood and Water Management Act 2010 earlier this year, the Government are actively working on how best to implement Schedule 3.

An ambitious timeline has been set to deliver this quickly and that is why we have already committed to implementation in 2024 following statutory consultation later this year. I am sure my noble friend will understand how essential it is that we allow sufficient time to engage with stakeholders to help shape the details of implementation. Schedule 3 provides for a public consultation which must take place on the national standards. We have also committed to consult on the impact assessment and will need stakeholder views to inform decisions on scope, threshold and process in order to draft the secondary legislation required to implement Schedule 3. I hope that reassures my noble friend regarding her Amendment 231 and that, on that basis, she will not feel the need to press it.

Amendments 232 and 237 in my noble friend’s name would prevent planning permission for residential development in functional flood plains and high-risk flood areas and create a new duty for the Secretary of State to make building regulations within six months for property flood resilience, mitigation and waste management in connection with flooding. I listened carefully to what my noble friend and the noble Baronesses, Lady Pinnock and Lady Hayman, had to say. Let me explain where the Government are on this. Planning policy directs development away from areas at the highest risk of flooding. Building regulations set drainage system requirements for individual buildings and the main sewerage system is governed by the sewerage undertaker for the area.

As I said, I listened carefully to the arguments put forward but contend that the Government have well-established means of making sure that new developments are not approved where there is an unacceptable flood risk. I would argue that the Environment Agency and local authorities are the right bodies to oversee the maintenance of existing flood mitigation measures and, for these reasons, in our view introducing new requirements into the building regulations is not necessary.

New housebuilding—I hope I can reassure the noble Earl, Lord Devon, on this—and most other forms of development should not be permitted in the functional flood plain where flood-water has to flow or be stored. But it is important that local councils follow the sequential risk-based policy in the framework, steering new development away from areas known to be at risk of flooding—now or in the future—wherever possible. However, sometimes it is necessary to consider development in such areas. Banning development entirely in flood risk areas would mean that land that could safely be built on could no longer provide the economic opportunities our coastal and riverside settlements depend on. That is why I say to the House that we should trust our local authorities to make sensible decisions about what development is appropriate in their area. Having said that, we will of course keep national planning policy on flood risk and coastal change under review, as noble Lords would expect.

Amendment 236 would place a duty on the Government and local authorities to make data about flood prevention and risk available for the purpose of assisting insurers and property owners. Data about flood prevention and risk, including for planning purposes, is already publicly available, provided primarily by local authorities and the Environment Agency. Creating new duties on government and local authorities to publish this data is therefore unnecessary. Insurers can already access information, and to require government or local authorities to facilitate their use of the information would create unnecessary burdens on our public services. Within both the Environment Agency and the insurance industry, the modelling of UK flood risk continues to improve, resulting in models and maps than can assess flood risk at more detailed geographical levels, taking into account all the drivers of risk.

Amendment 238 would require the Financial Conduct Authority to make rules requiring insurance companies to participate in the currently voluntary build back better scheme, which was launched by Flood Re in April 2022. Amendment 239 extends the flood reinsurance scheme to premises built since 2009 that have property flood resilience measures that meet minimum standards and buildings insurance for small and medium-sized enterprise premises.

The build back better scheme is still in its early days and has not yet been fully embedded or tested. This is therefore not the right time to consider making changes. Properties built since 2009 should be insurable at affordable prices because of the changes to planning policy in 2006. If Flood Re were applied to homes built after 2009, that would be inconsistent with current planning policy.