Neighbourhood Planning Bill

Lord Best Excerpts

Report: 1st sitting: House of Lords
Thursday 23rd February 2017 Lords Chamber

[Baroness Parminter]

My Lords, with the leave of the House, in the unavoidable absence of my noble friend Lord Taylor of Goss Moor, I move the amendment standing in his name. The amendment introduces the principle of localism to the New Towns Act to enable the delivery of the highest quality new garden villages and towns by locally accountable elected local planning authorities rather than, as at present, any such development corporation being established on the initiative of a local authority and agreed by the Secretary of State.

Garden towns and villages are local solutions to the pressing need in so much of the country for homes, but by using the uplift in land values generated by development not purely to line the pockets of the few with fantastic wealth but to deliver great, thriving, 21st-century villages every bit as well served as the best historic communities. Already, 14 are being supported by Government, but the success of that programme will be greatly enhanced by the ability of local authorities to ensure quality by using the New Towns Act to guarantee that new garden villages and towns all meet the policy objectives of the Government. But local authorities will adopt this opportunity only if they know it is locally controlled. Local communities would accept no less. In the age of localism, why should they hand control of finances, planning, ownership of the land and its long-term value to the Secretary of State?

A similar amendment was moved by my noble friend Lord Taylor in Committee, where it received cross-party support. It also gained clear support and a positive response from the Minister at that time. Since then, we have had the Government’s White Paper, and the Government have made a clear and unambiguous commitment to localise the New Towns Act powers, exactly as proposed by this amendment. Mindful of the fact that this has cross-party support, I genuinely welcome that and beg to move.

[Lord Best (CB)]

My Lords, I have not declared interests during the course of the Bill so far, so declare that I am a vice-president of the Town and Country Planning Association and a vice-president of the Local Government Association.

In the debates on what became the Housing and Planning Act 2016, the noble Lord, Lord Taylor, and I jointly proposed an amendment, which the Government supported, to make it easier for new corporations to be set up to establish new settlements, along the lines of the old new towns but probably rather smaller—garden villages or garden towns they are sometimes called. This takes the story to its next stage, as the White Paper from the Government promises to do. It would allow local authorities to have significant influence over the new corporations set up to create new communities. Local authorities would be able to appoint the board and approve their budgets.

Sadly, without this kind of measure, a lot of local authorities will not think it worth while establishing new corporations for this purpose. This amendment would take away a deterrent to local authorities embarking on this road, fearful that the Secretary of State will dictate what happens in their area. It would instead replace the Secretary of State with the local authority having considerable influence over the new corporation.

Why are we making such a fuss about this? Why do we need these new settlements? From the perspective of local communities, in order to make sufficient land available for a five-year supply of all the new homes that we are going to need, you sometimes get the choice between 25 homes in 100 or 200 different villages or small towns, and one major development of 5,000 homes—perhaps not quite as much or perhaps a bit more—in one place. Apart from anything else, this means that instead of the hassle of having 200 local community groups opposed to the 25 homes in their village, you have one group. That group probably is opposed to the very large development, but at least the opposition to the development is concentrated in one place, instead of the development disturbing an awful lot of local communities. Putting a number of the homes that we need in one place is in itself helpful to local authorities and to their communities.

That is a negative. The positive is that having a properly planned new settlement or community, where you have a master plan that ensures that all the facilities that you need—transport, schools and the rest—are all in one place, is itself a really good way to try to achieve this enormous number of new homes which we know the country desperately needs to end housing shortages.

I can speak with a bit of experience here because one of my duties for nearly 20 years at the Joseph Rowntree Foundation was looking after the model village of New Earswick, created by our founder, Joseph Rowntree, in 1904. We can look back over 100 and something years to see whether a garden village really works. I can tell your Lordships that this kind of planned community of more than 1,000 homes, with two schools, shops and a wonderful arts and crafts folk hall and community centre, 100 years on, is the way that you get all the things that you need to build a proper, strong community, rather than packing in 25 more homes at the end of the village, which causes nothing but disruption.

This amendment would put local authorities more in charge and would therefore make it much more likely that we will see these new settlements and communities created in the future. I strongly support it.

Neighbourhood Planning Bill

Lord Best Excerpts

3rd reading (Hansard): House of Lords
Wednesday 15th March 2017 Lords Chamber

[Lord Taylor of Goss Moor (LD)]

My Lords, this amendment is tabled in my name and that of the noble Lords, Lord Best and Lord Lucas, who have given great support on this issue during the passage of the Bill, as have noble Lords on all sides of the House. On Report, there was a very welcome commitment from the Minister to return to this issue.

I should draw attention to my interests. I advise many projects, including new settlement projects. I am a visiting professor of planning at Plymouth University, and over the years I have worked with government bringing forward policy changes.

This amendment is aimed at empowering local government communities to bring forward settlements of the highest quality, ensuring that the value that comes from development taking place is captured to create great places and deliver wonderful facilities for those places and is not captured in excessive profits for landowners or developers, and ensuring that the Government’s objectives in bringing forward the garden villages, garden towns and garden cities programme are met in terms of the delivery of what comes forward, with opportunities for small builders, self-builders and contract builders to grow and deliver in new ways better quality, more affordable homes and all the facilities in these places to create sustainable and vibrant 21st century communities.

Why have I tabled this amendment? At the start of the passage of the Bill, I made the point that in the Neighbourhood Planning Bill the Government accepted proposals that I and other noble Lords brought to the House to simplify the process of using the New Towns Act. The New Towns Act is essentially from a period when central government was much more involved in local delivery and when that was accepted. We are now in an era of localism, yet the New Towns Act gives all the power to the Secretary of State who has no capacity to hand over the role of the corporations that will be set up to deliver these new settlements to the local councils that would bring them forward. In the modern world, it is not right that in seeking to deliver a new settlement through a new town corporation to ensure that it is delivered at quality and pace to meet local needs a local council would surrender all the powers to the Secretary of State.

I do not think that the Secretary of State would want to have power over every penny of expenditure, the power of planning, because these bodies would get planning powers, and the power of controlling the assets and, potentially, of future disposals of those assets. It is far more likely that local authorities and communities will be comfortable with this process if they have not simply identified the site and taken the decision that it should be brought forward. When it comes here and the necessary process is gone through in Parliament to approve it, they should be confident that those powers will be exercised locally and that in the long run the assets will be controlled locally for the benefit of the people who live there and the wider community.

When we first debated this, the Minister understandably said that the Government needed to think about this and work it through, but the White Paper made it clear that the Government agree with this process. I have been delighted that the Government have taken forward this policy, which I was very much involved in developing. On the back of the White Paper, we came back. I have to thank the Minister for his positive response on Report and for allowing me to talk to officials in working through something that might now work positively for the Government and that could be incorporated into this Bill.

I shall briefly speak to some of the detail. The principle of the amendment is to give the Secretary of State the power to appoint one or more local authorities in the designated area of the new town to oversee the delivery of the new town and the new development corporation. This is a localising measure. It hands really strong power to communities to ensure that new towns are delivered at quality.

The functions that would be transferred to local authorities for this purpose would be set out in secondary regulations subject to the affirmative procedure, so fully respecting parliamentary process. Since new towns may straddle the boundary of more than one authority, more than one authority could be appointed. This will make it much simpler in those circumstances to bring forward and deliver proposals. The Secretary of State would be able to set out how those powers would be transferred to those local authorities, for joint exercise or divided between them. Changes to the New Towns Act may be needed to allow this to work on subjects such as asset control. The purpose of the power to modify the Act would be to make the principle of local accountability work.

Therefore, this fits with the agenda that Members across the House have outlined, to bring many more homes forward to meet local needs and to capture the value of land in order to create supplements. In that way, we would not look to the taxpayer to fund the school, build the surgery, provide for shops or build a real community. The value of the land would be put into the process of making this work.

At the moment, where projects are approved, the risk is that they are sold on through the chain of speculators, developers and housebuilders. Then, by the time that they are delivered, on grounds of viability because of the price that has been paid for the land or because of the model of the housebuilder, none of the promises made at the start to the local community is delivered. The use of the development corporation as proposed would guarantee that what had been promised to people at the start would be delivered to people at the end.

This approach would open the opportunity to use compulsory purchase powers under the New Towns Act. These could be used where necessary, but normally purchase would be done by treaty in consultation with landowners. The point would be to reach a price that allows the delivery of the quality of place that has been promised. That promised quality would then be locked in through the development corporation process, rather than being at risk of never being delivered. I am afraid that I can take noble Lords to many places where much was promised and far too little of those promises was delivered. There are places where it has been done well, but only where there has been a landowner genuinely committed to it.

That partnership would, therefore, be available. Generally, I imagine that it would be done through joint venture and partnership and agreement but none the less locking in that quality. Where that did not happen, powers would be there to achieve the quality of place that is needed.

Above all, this is about three things. One is keeping it honest and delivering what is promised. That is essential if there is to be any credibility around the delivery, not just of housing but of communities and neighbourhoods, that this approach of garden villages and towns promises.

Secondly, it is critical if we are to move from a supply of new homes inadequate to meet people’s needs that results in ever-accelerating prices beyond what is affordable. If we are to create the 250,000 to 300,000 homes each year that we need, rather than 150,000, those extra homes need to be delivered to a higher quality in places that they do not ruin. Rather than encircling existing historic towns and villages with endless bland housing estates, we need to deliver something better in places where people can accept them and where the public will support the programme. If we try to raise the numbers but deliver inadequate quality, as too often happens currently, there will simply be a public revolt and we will not get the houses delivered.

Finally, it is also critical that we understand that the big housebuilder model does not allow big housebuilders greatly to increase the numbers being delivered. They will not do so even if they wish to because of the way in which they are financed and the way in which publicly assisted companies are priced. The only way to deliver the increased numbers—and the increased quality—is to build up new entrants, whether housing associations, growing SMEs, self-builders or overseas developers of the highest quality. They all need places to build without the current tortuous process of land options and land banking.

These are the mechanisms to deliver it. But it will happen only if we have a very clear understanding that this means delivering great places to go with the plots to build them on, not just handing this over to the people who build houses and expecting them somehow to create great places. We know they deliver housing estates, but they do not deliver the quality of places demanded by people, which is what will give public acceptability to the programme.

This amendment will be the critical factor in creating local empowerment to deliver what will be a genuine game-changer. I am very grateful for the support there has been on all sides of the House for this and to the Government for the positive way in which they have responded to the case. I beg to move.

[Lord Best (CB)]

My Lords, I will speak briefly to the amendment, to which I have attached my name. I commend the noble Lord, Lord Taylor of Goss Moor, for following through on our earlier amendment and indeed for all his good work in promoting new garden villages and garden towns. This amendment is not as definitive as the one we discussed on Report, but it should achieve the same outcome, namely of placing local authorities centre stage in the creation and oversight of the new corporations that will be responsible for these major new settlements. This will greatly improve the prospects of these much-needed new communities getting off the ground.

I was delighted to hear today that the Local Government Association—I declare my interest as an LGA vice-president—is fully supportive of the amendment. If accepted, the amendment will mean it will be much more likely that a number of successful, well-designed, mixed-income new settlements will be developed over the years ahead. That would be of enormous benefit to many thousands of households, which will have great new places to bring up their families and live their lives, as well as to the nation as a whole in reducing acute housing shortages. I have every confidence that the Minister will find the amendment entirely acceptable, and if so, I congratulate the Government. Following the housing White Paper, and a number of the helpful measures in this Bill, I greatly welcome this further step in the Government’s creation of a much-improved set of national housing policies. I strongly support the amendment.

[Lord Beecham]

My Lords, I join the noble Lord in complimenting the noble Lord, Lord Taylor, for his very thoughtful and constructive contributions to the Bill and on this amendment. However, I have one question to put to him about it. Proposed new subsection (8) defines a local authority as,

“a district council … a county council, or … a London borough council”.

Where do the new mayoral combined authorities sit within this framework? Perhaps the noble Lord could assist me with that, or perhaps the Minister could indicate what role is envisaged for a combined authority, which will presumably by its very nature include land for development which crosses what would previously have been boundaries but are now within the new framework. I suspect the noble Lord, Lord Taylor, would wish that combined authority to exercise a role, but perhaps the Minister could indicate what the Government’s attitude would be and whether any further step needs to be taken to ensure that that outcome is fulfilled.