Neighbourhood Planning Bill

John Redwood Excerpts

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Report stage: House of Commons
Tuesday 13th December 2016 Commons Chamber

[Robert Neill]

It is a one-way ratchet because it is designed to prevent somebody in a monopoly bargaining position from putting unfair pressure on the owner. If somebody has compulsory acquisition powers, they are not obliged to go through the free bargaining process. That is why the ratchet deliberately goes in that direction. It would prevent what I hope responsible acquiring authorities would not generally do. However, there is a risk that instead of using compulsory acquisition as a last resort, which is what we all want, acquiring authorities have a perverse incentive to say, “We will use the compulsory powers early on in the process, because otherwise, if we acquire by private treaty, we might be forced into an overage.” We would not want that where the powers or the agencies of the state are potentially bearing down on individuals or small businesses. That is the thinking behind the amendments and new clauses.

[John Redwood (Wokingham) (Con)]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Mr John Redwood!

[John Redwood]

I rise, Mr Deputy Speaker, to support—

[Mr Deputy Speaker]

I sounded shocked because I had not realised you were here at the beginning.

[John Redwood]

I was in at the beginning. I have come because this an important subject and I want to support my colleagues in saying that where land is being compulsorily acquired, the aim should be to ensure that the owner gets the open market value that they would have got had they been a voluntary seller in the private sector market without the distortion of the public sector purchaser. As my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) indicated, that surely means that if there is hope value in the land, it should be included in the price. It might be possible to take care of hope value with an overage, or it might be that we can express a capital value of the hope value and clean the whole thing up in one go. Either way, it needs to be sorted out, and I hope that will be confirmed by the Minister. I believe that that is the intention.

As to the Opposition argument, I think that sometimes the best is the enemy of the good. We already have 17 pages of additional legislation on compulsory purchase, and if the Opposition thought that something needed fixing or improving, this was their opportunity to table amendments to do so. The new clause is the Government’s best fix for the current legislation. I think we can do it by means of amendment to existing law. We need not redesign the whole thing. A redesign could create added hazards and complexities and bring scope for mistakes.

[Rob Marris]

The right hon. Gentleman will be aware of the Housing and Planning Act 2016. This is the second time that this issue has come before the House, so the idea that we do not want additional legislation or the review process proposed by my hon. Friend the Member for City of Durham (Dr Blackman-Woods) looks a bit thin, given that this is our second bite of the cherry in primary legislation.

[John Redwood]

I think we have agreement. I am saying that this is a process of continuous review and incremental improvement. The Opposition are entitled to join in—this Bill was another opportunity for them to do so—although I am pleased that we have been spared a complete rewrite of the whole legislation, as that might not have produced extra advantages and would have brought with it all sorts of hazards. I support the Government in what I assume will be their wish not to proceed with new clause 3.

[Gavin Barwell]

This has been a short debate on a technical but important area of the Bill that cuts to the core of our belief in this country in the importance of people’s property rights and the rightly very clear restrictions we place on the circumstances in which the state can compulsorily acquire people’s property.

I will start by responding to the official Opposition’s new clause 3. The hon. Member for City of Durham (Dr Blackman-Woods) explained to the House why she believed there should be a fundamental review of compulsory purchase law. A similar new clause was debated in Committee. She also made this point in the debate last week on the affirmative regulations arising from the Housing and Planning Act 2016. I suspect that compulsory purchase is one area on which it is easier to agree on the need for fundamental reform than on what that fundamental reform should be. She is right that most of the people who gave evidence to the Committee, while supporting what the Government were doing, believed that there was the potential for more far- reaching reform, but there was no consensus on what it should be.

The Law Commission looked at this issue, and what the Government did in the Housing and Planning Act, and what we are doing in the Bill, reflected its conclusions. It came up not with a complete rewrite of the law, but with a focused set of reforms. To come to the point raised by the hon. Member for Wolverhampton South West (Rob Marris), the reason we are coming back to this is that when we consulted on the previous legislation, people raised some fresh points around which there was a consensus, and that is why the Government have proceeded.

Let us see what impact the reforms in the 2016 Act, which are only just being implemented, and the reforms in the Bill will have. I hope that they will make it easier for people to use compulsory purchase when it is necessary to do so, and make the process a simpler and clearer one. We will then be in a better position to consider whether any further reform is necessary.

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[Gavin Barwell]

As I think I have made clear, we want to proceed with the maximum possible consensus on the right way of getting a set of rules on compulsory purchase that are fair to the taxpayer, the acquiring authority and landowners.

[John Redwood]

When the Minister drafts that guidance, he may like to include the obvious point that if those whose land is subject to compulsory purchase can reach a voluntary agreement, it will probably speed up the compensation and reduce the legal costs. There is something in it for both parties if the local authority has goodwill towards landowners. Some of our local authorities have such goodwill, but others do not. That is what the guidance must address.

[Gavin Barwell]

My right hon. Friend makes a perfect point on which to end this section of the debate. The point is that compulsory purchase should be a last resort. We should encourage all acquiring authorities to seek to secure land that is needed for major infrastructure projects or redevelopment schemes on commercial terms, which is quicker and cheaper and avoids all the legal costs, as he said. What we are legislating for here should be a last resort for when it is overwhelmingly in the public interest and necessary to acquire sites in order to allow projects to go ahead. With that, I hope that hon. Members will not press their amendments and that we can proceed to the next part of the Bill.

Question put and agreed to.

New clause 6 accordingly read a Second time, and added to the Bill.



New Clause 1

Guidance on clustering of betting offices and pay day loan shops

“(1) Before exercising his powers under section 36(1) the Secretary of State must issue guidance to local authorities on the granting of planning for permission change of use to betting offices and pay day loan shops.

(2) This guidance must set out the manner in which policies in neighbourhood plans and local plans about the number, density and impact of betting offices and pay day loan shops shall be taken into account when determining applications for change of use, to prevent a deleterious effect on the neighbourhood or local area.”—(Graham Jones.)

Brought up, and read the First time.

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[Graham Jones]

Absolutely, we should be. A societal concern about this issue is about licensing, where we have the review, but this debate is about planning, because it is about clustering. That issue is separate from licensing and whether we have a limit of £2 instead of £100, or whatever the Government’s review decides. Licensing is one aspect, but today we are here to discuss the completely different issue of the impact of clustering and density and the planning provisions, or the lack of them, in legislation that allow significant clustering on our high streets. We have all read about the situation in Newham, where bookmakers face bookmakers of the same franchise.

[John Redwood]

Can the hon. Gentleman give the House some idea of how many would be a reasonable number on a high street, so that we know what he is talking about?

[Graham Jones]

The right hon. Gentleman makes my point for me; he shows why this is a modest proposal, as it asks the Secretary of State to make that designation. It is not for the Opposition or for me to prescribe this, but for the Secretary of State to provide that clear guidance to local authorities. I thank the right hon. Gentleman for making his point, because he, along with his Conservative colleagues in government, will be able to decide what the density, impact and clustering should be. I hope that he joins me in the Lobby when this is pressed to a vote.

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[Graham Jones]

Absolutely. That returns to the point that I have just made, which is that we need clarity. The new clause is an opportunity to bring clarity. It is not about the Opposition trying to be prescriptive. If Members read new clause 1, they will see that it asks the Government to come forward with what they think is reasonable. It just clarifies the law and takes up the point that we do not have clarity now. It will bring clarity, so the consequences on planning committees in making decisions and compensation claims are there for all to see. That is why the LGA, the all-party group on fixed odds betting terminals and local authorities have all demanded a clearer framework for granting planning permission to these types of development, so avoiding the problem of clustering. The new clause does exactly that, and I intend to press it to a vote.

By setting out guidelines that lay down parameters for quantity, density and the impact of those businesses on the high street, central Government will assist local authorities in their efforts to ensure that proposals for new developments are approved on public interest grounds. Accordingly, this cross-party proposal seeks to address these concerns by injecting greater accountability and responsibility into planning considerations.

[John Redwood]

I am still trying to learn how the measure would work. Is there a danger that, if it were adopted, there would be more betting shops in other communities that currently do not have them, because there would be a spread-out effect and more people would have easier access to betting shops?

[Graham Jones]

I reject that argument. It does not stand up. As I said, I shall seek to divide the House on new clause 1. The nation wants action on FOBTs, betting shops and payday lenders, and this is the opportunity.

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[Nick Herbert]

I am very glad to be pushed into a more moderate and Conservative position on this issue than the one I previously took. What I am focused on is ensuring that the Planning Inspectorate takes the right decisions should such developments be called in, and, more particularly, that local authorities take the right decisions in the first place. We should be minimising the number of appeals that have to go to the Planning Inspectorate because a wrong decision is made or because a decision appears to be in breach of national policy, and that means getting the national policy right. My contention is that national policy should give primacy to made neighbourhood plans, because these have been approved in local referendums.

[John Redwood]

Has my right hon. Friend also come across cases, which I am now seeing, where the local plan clearly has a five-year supply of land, but because it is concentrated in a major settlement—to concentrate the infrastructure and the development gain—an appeal can still be lost in another village, which naturally wants to protect itself because the development the local community agreed to was going to be concentrated in a new settlement?

[Nick Herbert]

Yes, my right hon. Friend makes the point very well.

The first way in which neighbourhood plans can be vulnerable to speculative development—even when it was thought that they would protect areas—is when there is not a sufficient five-year land supply in the local authority. The problem with that is that the five-year supply is not always properly in the hands of the local authority, but depends on the ability and willingness of local developers to build. Developers are undoubtedly gaming the system so as to secure speculative development applications and planning permissions, in a way that is deeply cynical and that is undermining the principles of localism and community control.

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[Dr Blackman-Woods]

I will speak to new clause 9, tabled by the hon. Member for Leeds North West (Greg Mulholland), because I have added my name to it. It would require the demolition or change of use of pubs to be subject to planning permission. That seems very sensible. It is something that I feel very strongly about. As a shadow Minister, I was at the forefront of the fight against the changes to permitted development rights that the Government started to force through two years ago. I have spoken on pubs and permitted development many times. It is very important, as a pub can often be a real central point for a local community, and so it is right that local residents are given the chance to have their say over what happens to it.

Although pubs can be protected if they are designated an asset of community value, the process for that can be very cumbersome. I believe it is much more appropriate to return the decision on whether a pub can be demolished or converted to the local community, where it belongs, rather than dealing with it through permitted development.

I will move straight on to—

[John Redwood]

Will the hon. Lady give way?

[Dr Blackman-Woods]

If the right hon. Gentleman will forgive me, I will not, as I am very short of time. I might a bit later, once I have made a bit of progress.

I also want to speak to new clause 11, on the need for the viability assessments to be transparent to the public. Labour has consistently raised this issue, and we continue to believe it is of huge importance. If the public are to accept development in their area, they have to be absolutely certain that viability arrangements for site—in particular, safety integrity level requirements and section 106 requirements—are all that they should be.

As things stand, a viability assessment lays bare to council officers the economics of a project, providing detailed financial evidence for a developer’s claim that a particular scheme would not be viable without reducing the number of affordable homes. The problem is that the assessments are not available for public scrutiny. Labour has commented that despite planning practice guidance encouraging transparency, developers may opt not to disclose their viability assessments to the public on the grounds of commercial confidentiality. It is widely accepted that that is sometimes done so that they can negotiate down their section 106 obligations without public scrutiny. As a consequence, affordable housing may be reduced and the quality of the built environment may suffer. We need a uniform approach to transparency, across the country—I am sure the Minister supports that—so that developers know that they will be open to public scrutiny wherever they decide to operate.

I move on to amendment 14. This Bill is the Government’s sixth measure on the planning system in six years. I hope that the current Minister will not continue what we saw in the past, namely the Government blaming the planning system, or various elements of it, for their failure to build enough homes. On this occasion, pre-commencement planning conditions are in the firing line. But as the Minister well knows from our time in Committee, there is a distinct lack of evidence that pre-commencement planning conditions slow up development. In fact, we heard a lot of evidence that they often make a development acceptable for a local community.

Pre-commencement conditions are also advantageous for a number of different stakeholders in the house building industry. They have certain advantages to developers, who may not be in a position to finalise details for a scheme but wish to secure planning permission as soon as possible. They have advantages for local authorities, because councils may, in practice, have limited legal ability to enforce conditions once a scheme is under way. Conditions are useful to the development industry in general, because they make it possible to permit schemes that might otherwise have to be refused.

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I will give way to the right hon. Member for Wokingham (John Redwood) if he still wants to intervene.

[John Redwood]

I am grateful to the hon. Lady. My question goes back to her first amendment on pubs. Does she not accept that there are some cases in which no one can run a commercial pub, and no one wants to? In such cases, surely, action has to be taken.

[Dr Blackman-Woods]

We are not against a change of use for a pub; we are against the fact that that change goes through permitted development, taking away local people’s right to have a say over what happens to the pub. The new clause is designed to remove those changes from permitted development and put them back into the planning system, which is exactly where they should be.

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[John Redwood]

I wish Ministers well with their Bill. One of its central purposes is one I strongly support—the idea that we need to build more homes. It has been a tragedy that in this century there has been a big reduction in the proportion of people in our country who can afford to own their own home and feel that they can get access to home ownership—something that previous generations thought was more normal and easier to achieve. One of things we must do is build more. Like the hon. Member for Erith and Thamesmead (Teresa Pearce), I look forward to the housing White Paper, because many of the things that we need to do have nothing to do with legislation but are about money, permissions, and using what law we already have to ensure that our industry can serve the needs of all the people.

I also support the Bill’s second big aim, which has to be balanced against the priority of creating many more affordable homes for sale and, where needed, for rent— namely the priority that local communities must be part of the process. We are asking local communities to go to a great deal of effort, to work on the local plan as a principal planning authority and to work on neighbourhood plans village by village. They will do so willingly only if they feel their work will be taken seriously.

I represent parts of two local authority areas, West Berkshire and Wokingham Borough. Both have had a very good record over the past few decades on making sure that a lot of new housing is built in the area to help with the national need. In particular, at the moment Wokingham has four very large sites, with between 2,500 and 3,500 new homes on each, as its contribution to the national effort. Wokingham wants to make sure that the Minister’s fine words earlier will be taken into account and be part of the system—that when the local community has done the decent thing and made sure there is plenty of land available for building, an inspector does not come along and say that more homes will be built somewhere else, because some developer is gaming the system. I was very reassured that the Minister is well aware of that problem.

Where local authorities co-operate, and local communities are prepared to take responsibility and make those judgments, Ministers, their officials and the inspectors must understand that those authorities and communities should be taken seriously and, in most cases, their views should be upheld. I hope that as the Bill progresses Ministers will take on board the fact that there is huge support on the Government Benches for more homes and for local planning, but that we sometimes think inspectors still do not get it and developers are very clever, meaning that we end up with homes in places where we do not want them, which gives the whole policy a bad name.