Planning and Infrastructure Bill (Twelfth sitting)

Lewis Cocking Excerpts

Committee stage
Tuesday 20th May 2025 Public Bill Committees

[Matthew Pennycook]

My hon. Friend is right. If we are having a mature conversation about this, we have to recognise that economic circumstances can change and that the costs that developers are having to deal with—build material costs have increased significantly, particularly in London—are factors they do have to weigh in their judgments. On the other side of the coin, it is important, in strengthening the section 106 system, that we are ensuring local authorities can negotiate robustly on those agreements and that we hold developers to the commitments that they make. The Government’s intention is to do both.

[Lewis Cocking (Broxbourne) (Con)]

Will the Minister give way?

[Matthew Pennycook]

I will, but I do not want to lead us down the path of a long debate on viability.

[Lewis Cocking]

I thank the Minister for giving way. He is talking about changes in viability. What does he say to councils that are in the position of having granted planning permission, had a viability assessment and agreed a 106, and the developer comes back a year or two later and says that they cannot do it and will have to put in a new planning application, have a new viability assessment and a new 106, but because the council has determined a planned application on that site, if it went to the planning inspector, there would be a lower bar for that development to get over? That is because the council has already accepted the principle of development on that site under the premise of one section 106 negotiation.

Does the Minister think that, on the second go, the developer should have to start from the beginning, have the same principles to get the development off the ground, and that the same higher bar should apply? At the end of the day it is the community that lose out from the community obligations that the developer is trying to get out of.

[Matthew Pennycook]

The hon. Member tempts me into commenting on hypotheticals. I will instead say the following. There are two things happening here. We have to be aware of the ability for some existing mechanisms—section 73 applications are a good example—to be gamed in terms of viability to drive down the amount of public gain. I am aware of that, and I have been very candid about it. On the other hand, and correspondingly, if a permission such as the one he hypothetically mentioned is in place, I think that is testament to why it is so important that we bring forward measures on build-out transparency and have the powers to be able to say to developers, as the Government are saying to all developers, “If you’ve got a consent, then get on and build.”

The Government are making a variety of reforms to the planning system, which in any number of ways will provide for a more rules-based system, more certainty and will drive down development costs. We are firming up planning policy guidance and expectations. We are making it clearer and easier for developers to put in an application and we should reduce costs as well. Correspondingly, we can ask for more. We are bringing forward measures in fairly short order on build-out and we will turn on the LURA provisions that I have mentioned. On that basis, I ask for the new clauses to be withdrawn.

New clause 76, tabled by the shadow Minister, the hon. Member for Hamble Valley, seeks to prevent those who have deliberately undertaken unauthorised development from obtaining planning permission retrospectively. The Government do not condone unauthorised development and are clear that anyone seeking to undertake development should first obtain planning permission where it is required. I therefore very much appreciate the sentiment behind his new clause. I recall debating with a shadow Secretary of State this particular matter in relation to Gypsy and Traveller camps, and I appreciate that across the House there is concern about the use of unauthorised developments.

However, the Government’s view is that there may be circumstances—I am happy to set this out in writing to the shadow Minister—in which unauthorised development, even if it is intentional, may be acceptable in planning terms or may be made so by the imposition of planning conditions. I say that only to make the point that we believe that there is a need for some pragmatism here and that such developments should be considered by the local planning authority. It is already the case that intentional unauthorised development, as he said, is a material consideration. It must be weighed in the balance when determining planning applications and appeals. That approach retains local decision making.

The Government obviously keep this matter under review. I am more than happy to have a conversation with the shadow Minister about the Government’s view as to whether the enforcement powers available to local planning authorities—they have a wide range of powers, with strong penalties for non-compliance—are being used, and if not, why not. I am also more than happy to share with him our understanding of how local planning authorities and inspectors are treating unauthorised development as a material consideration, as they are now required to do. I hope that, on that basis, I have provided him with some reassurance.

--- Later in debate ---

[Lewis Cocking]

Does the hon. Member not agree that, in most local plans—if not all local plans that come forward; I took one through for Broxbourne when I was leader of the council—we do have targets for affordable and social homes? The reason lots of those do not get built out is because of the issues that we discussed earlier around viability. Just having a target does not necessarily deliver what she and I want to deliver: more social homes. We can have that target, but it is about the viability and the costs that developers try to get out of. That is why they do not get built.

[Ellie Chowns]

I thank the hon. Member for his point, which is actually exactly the same point that the hon. Member for Barking made, essentially—

--- Later in debate ---

[Lewis Cocking]

Local plans are done over a 15-year period, so they are over multiple Parliaments. When the Government set the housing targets for local councils—if what the Minister has just said is the Government’s position on new towns—should the situation not be the same as for local plans? Broxbourne has a local plan over 15 years, which is three Parliaments, so all the housing targets given to local authorities will not be done in one Parliament.

[Matthew Pennycook]

The hon. Gentleman makes a fair point. Local plans are set over a longer time horizon. There is an issue, as he knows, with the number of local plans across the country that are up to date. There are other, corresponding issues about the date at which those local plans that are brought forward begin, and whether they are brought forward at all. Our general position—I will not go any further than that—is that we are keeping this under review. It has been our stated position so far that new towns will deliver over and above the targets produced by the standard method.

When a new town might build out will be highly place-dependent; it will depend on the particular circumstances and delivery vehicle. Let us see what sites the new towns taskforce recommends. We are keeping this under review because we recognise that we need the right incentives in place to support proactive local authorities to work with us to bring new towns together. Although we have been clear that the site selection will ultimately be in the national interest, in terms of building these large-scale new communities out quickly and effectively, and ensuring that they are exemplary developments, it will obviously be far easier if local authorities are proactive and constructive.