Neighbourhood Planning Bill

Liz Saville Roberts Excerpts

2nd reading: House of Commons & Money resolution: House of Commons
Monday 10th October 2016 Commons Chamber

[Sajid Javid]

As my hon. Friend has rightly identified, measures on the Land Registry are not part of the Bill, and the decision on privatisation will be for the Government to make in the future; it will not form part of this Bill, nor will it be introduced into the Bill in any shape or form at a later date.

Part 2 concerns compulsory purchase. In an ideal world, such a process would not exist. I would always prefer to see agreement secured through negotiation. However, as a last resort, we all know that it is sometimes necessary, and when that is the case, it is right that the process operates clearly, quickly and, above all, fairly. That does not always happen. Part of the problem is that the process is governed by a complex patchwork of statute and case law that has built up over many years. This slows the process down, increases costs, and bewilders individuals who are caught up in it. Ultimately, it benefits nobody—with the possible exception of lawyers. Clauses 9 to 30 will tackle these issues, making the system more effective, more transparent, cheaper and easier to navigate. Untying the tangle of red tape will speed up the process. Once again, this will mean more homes—and the infrastructure that is required to support them—getting built more quickly.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

On the compulsory purchase clauses, what action have the Government taken adequately to consult with Welsh stakeholders, and to learn the lessons of the Housing and Planning Act 2016, given that the Assembly voted down a legislative consent motion relating to the Act on the grounds of insufficient consultation with Welsh stakeholders?

[Sajid Javid]

The hon. Lady will know that there has been widespread discussion, and we are still in discussions with the Wales Office and Welsh stakeholders on the issue that she raises.

The first set of provisions will make the process of compulsory purchase clearer. They include consistent rules for temporary possession of land where a permanent compulsory purchase is not required, giving all relevant bodies the same powers. The Bill also establishes a clear and coherent framework for compensation in such cases, filling a long-standing gap in the law and ensuring that all landowners are treated fairly. It sets out exactly what a property owner’s rights and options are when faced with a temporary possession; it is the first time that has been enshrined in primary legislation. The Bill also provides a clearer way to identify market value, making it quicker and easier to agree compensation.

At the moment, the price paid for property subject to compulsory purchase is assessed in the so-called “no scheme world”. This is the market value of land if there were no threat of compulsory purchase, not taking account of any increase or decrease caused by the scheme. The no scheme world is a mixture of obscurely worded statute and over 100 years of sometimes conflicting case law. This Bill brings things up to date; it clarifies and codifies the no scheme world, without altering its core principles, to provide a clearer starting point for all compensation payments.

The new provisions put mayoral development corporations on the same footing as new town and urban development corporations for the purposes of assessing compensation, and extend the definition of “scheme” in those limited circumstances in which regeneration is enabled by a transport project. The Bill repeals redundant legislation that allowed additional compensation to be negotiated after the original settlement. This will further reduce the potential for confusion and uncertainty.

The next set of provisions make the process faster. They create a statutory deadline for bringing confirmed compulsory purchase orders into effect. They also allow Transport for London and the Greater London Authority to make a single, overarching compulsory purchase order for transport and regeneration purposes. At present, they have to artificially divide projects and run parallel processes. This causes unnecessary cost, confusion and delay to much-needed development.

The final clauses will make compulsory purchase fairer. In particular, they ensure that where property is acquired by compulsion, the compensation entitlement is fair to all business tenants occupying the property. They will align the disturbance compensation entitlement of businesses with minor or unprotected tenancies with the more generous entitlement of licensees.

There are already many excellent examples of local authorities working together to meet the housing needs of their areas. Through devolution deals, we have seen combined authorities’ ambitions to bring forward strategic plans that address the needs of real-world communities, rather than of administrative divisions. I want to see more of this. I want more joint planning, more tiers of government working together and, of course, more plans put in place. I want all areas to have one. Failing to put a plan in place creates uncertainty among communities, who are left with no idea of what will be built where, and it creates resentment when developments are eventually imposed through speculative applications.

The House will not be surprised to learn that I agree with the central thrust of the local plans expert group’s recommendations in this area. We need more co-operation and joint planning. The requirement to have a plan should not be in doubt, and the process for putting a plan in place needs to be streamlined. As the expert group set out, most of those changes can and should be made through national policy and guidance, rather than through primary legislation. Should primary legislation be required, I look to use this Bill as the vehicle for it. If we do use the Bill in that way, we will of course ensure that the House has sufficient time to consider the provisions.

In conclusion, we have a nationwide shortage of high-quality, secure, affordable housing. To tackle this, we need new ideas, new policies and new legislation. This Bill provides a solid foundation on which to build. The Bill gives greater responsibility to local communities, letting them decide what sort of development they should have, and where it should take place. It removes more of the red tape that all too often delays construction. It gives us more of the data we need to make informed decisions about planning, and brings the compulsory purchase system firmly into the 21st century, turning it into a well-tuned machine for making development happen. Moreover, the Bill has been welcomed by the British Property Federation, the Royal Town Planning Institute and many others. Above all, the Bill will make it easier to build the homes that our children and grandchildren are crying out for. That is why I am delighted to commend it to the House.