Localism Bill Debate

Full Debate: Read Full Debate

Lord Cameron of Dillington

Main Page: Lord Cameron of Dillington (Crossbench - Life peer)
Lord Greaves Portrait Lord Greaves
- Hansard - - - Excerpts

My Lords, I gave notice of my intention to oppose the Question that Clause 74 stand part of the Bill. I do not intend to speak in the debate, although I note that the noble Lord, Lord Cameron of Dillington, would like to do so.

Lord Cameron of Dillington Portrait Lord Cameron of Dillington
- Hansard - -

My Lords, I rise, at last, to speak in this clause stand part debate. I shall speak to whether all the clauses in Chapter 4 of Part 4 should stand part of the Bill. In some ways I am glad that I did not get to speak on Tuesday. Our debate then and some of the statements that have just been made confirm my view that I might have a solution to everyone’s concerns.

Before I set out my position, I must first make it clear that I totally endorse the intentions behind Chapter 4. I have spent the greater part of my life trying to save community assets, as envisaged in this chapter. When I was at the Countryside Agency, we worked hard to provide funding for villages that were trying to protect and enhance their pubs, shops, sports facilities and heritage assets. On the latter, we ran the local heritage initiative for the Heritage Lottery Fund for both rural and urban communities. At the same time, the agency was one of the instigators of the Pub is the Hub movement. We also had a great scheme for encouraging the use of village facilities for multiple purposes, such as using the same room or building for everything from a hairdresser and a citizen’s advice bureau to political surgeries and Jobcentre Plus services. We also worked hard with others to persuade the Government to put £150 million a year into saving rural post offices. We were not totally successful in saving all rural post offices, of course, but we certainly helped. Ultimately, in all these things, and as is the intention behind these clauses, whether prized community assets survive depends on the oomph or activities of the community itself.

Having established, I hope, my credentials and my enthusiasm for this chapter’s intentions, I shall now explain why these clauses, as currently framed, first, will not work and, secondly, are an unnecessary nightmare of administrative red tape. First, why will they not work? On the basis that the two main community assets to be saved are probably the village shop and pub, or, in urban areas, the local shop and pub, perhaps I may use them as prime examples. I note at this point that open land used for sport or quiet recreation is already catered for by Section 15 of the Commons Act 2006, under which it can be registered as a town or village green. I put that forward tentatively because I am not an expert on the use of Section 15.

Sticking to the pub and the shop, it is important to note, first, that they are both customer-based businesses. Any interruption to their trading is tantamount to a direct hit on their sustainable future. In any period of closure, people soon develop the habit of going elsewhere for their shopping or their pint. It is surprising that even those without their own transport find alternative ways of getting what they need. More to the point, those habits soon become ingrained. There are lots of reasons why a publican or shopkeeper might want to retire. Customers may be drifting away and the business owner might be finding it hard to make ends meet. It might all be too much hard work. Believe me, running such enterprises really is hard work. There might be family reasons for moving or they might just want to retire. However, if they do want to retire, it is likely that they will want to maximise the value of their business asset. At the moment, the best way to do that is to get permission for a change of use and sell the building as domestic premises. Often, half of it will already be a house, so they try to turn it into a bigger house, or even to have two units to sell.

If, on the other hand, they want to sell their business as a going concern, that is all well and dandy and none of this is needed. If not, and particularly if the business is failing, the first thing they will do is to close the business in order to justify any change of use application. Very often the business will sit like that with the shutters closed, in my experience, for six months or a year—in some instances that I know of, considerably longer—even before an application is made. As I have already explained, that means that the business as a community asset could be snookered anyway. Of course, as far as the business owners are concerned, it is more likely that they will get their change of use because such a permission will be merely confirming a fait accompli.

I should point out that there could be as much as an extra £100,000 accruing from a successful change of use application, but the main point is that, after planning permission and building conversion, the sale of a property in this scenario—the “disposal”, as it is called in Chapter 4—is often several years down the track, by which time there is definitely no community asset to save.

If the local planning authority refuses permission—I accept that, if the property is now deemed a community asset, this is more likely—the owner will probably hang on for a year or two, maybe until the five years have elapsed, and have another go. They are probably living in the property or they can lease the living quarters for a few years. Alternatively, they might, under the new circumstances, give up and sell the business as a going concern, in which case we do not need to protect this community asset at all. If the disposal of the property, being usually six months to a year or more after the closure of the business, is used as the trigger for the moratorium to give the community a chance to galvanise itself and take appropriate action, it is already too late. To plagiarise Charles I, “The bird has already flown”. The business, as opposed to the property, already has both feet in the grave.

I accept that the focus that the Bill now gives to community assets means that the owner will know that an application for a change of use is likely to be refused and is therefore more likely than ever simply to close the business and carry on living in or letting the domestic side of the premises until the property slips off the radar as a recognisable community asset. However, the effect is the same. No trigger has been given to spark the community into action. Although, frankly, if the community is not sparked into action by the closure of the business into doing something to revive it elsewhere—perhaps by using their right to build, for example—there is probably nothing we can do to help them anyway. In any case, my point is still valid: it is very unlikely to be the disposal of the asset—I stress the word “asset”, as in that particular property—that kills the business; it is the change of use.

If all this is not bad enough, Chapter 4 as currently proposed could actually be the killer blow to the community asset when it is in no danger at all. Let us take the example of a publican or shopkeeper who dies in service. It is not unknown, as I said earlier. It is extremely hard work. The widow or executors will want to implement a quick sale in order to keep the business going, possibly for the sake of the community, but under the current proposals, they cannot do that, so the proposals could actually cause the demise of the very business that they are supposed to save. I believe that it is important to stimulate the necessary community action only when the business is actually threatened, rather than when the ownership of the property is transferred. The threat to the business really only occurs when a change of use planning application is made. It is at that stage that the community needs to take action, rather than wait for a disposal, when it is usually too late. I accept that a passive closure of the business not involving planning permission has the same effect and that this event is not covered either by my proposal or by the current Chapter 4. As I said, only the community itself will be able to take independent action to deal with that scenario.

My other point, which I shall make briefly and is similar to the points made last Tuesday by the noble Lords, Lord True and Lord Jenkin, is that this chapter is a nightmare of administration and red tape. I looked at it, wondered how I could possibly put down any meaningful amendments and realised that I could not. I am sorry to be so blunt, but to me, it is totally over the top. At a time when local authorities are desperately trying to cut down on costs, they will possibly have to start new sections of administration keeping lists, and not only lists of successful community assets, but also lists of unsuccessful ones. Why on earth one needs the latter, I do not know. Like the noble Earl, Lord Lytton, I should have thought that a non-appearance in the first list was enough for everyone.

My solution, which I hope is a positive suggestion, is that the Government should put a loose but meaningful description of a community asset on the face of the Bill. Then, when an application for a change of use comes into a planning department, the planning officer could inform the parish council or neighbourhood forum and all the members of his planning committee immediately—just in case they disagree with him—that he is deeming the premises to be a community asset. The community would then have, as at present, six weeks in which to express an interest which, if forthcoming, will result in a moratorium on the decision for a change of use for, say, six months or more to allow the community to galvanise itself so that it could, as it were, head off the danger at the pass. That would be a very simple but, in my view, far more effective approach than the current quicksands that we are all being sucked into. Do we really need 19 clauses and a whole wodge of regulations to achieve a very simple procedure? I think not.

I am sorry to have gone on for so long—I bet that those who were here late on Tuesday night are quite glad that I did not speak at that hour—but, as I said at the beginning, this is an important matter. I am right behind the Government in their intentions and I really want to make this work, which it definitely will not do in its current form. I know that there have been consultations, but I expect that the responses were based on what is currently proposed. I bet that few have had the temerity to say that the emperor has no clothes. Chapter 4 sounds good politically, but I do not believe that it will achieve what it is trying to do. I cannot see these provisions saving a single village shop or pub. Indeed, I can see them condemning a few to the grave—

Baroness Thornton Portrait Baroness Thornton
- Hansard - - - Excerpts

Does the noble Lord accept that these provisions are not primarily directed at post offices and pubs? They cover wasteland in cities, disused bank buildings, disused offices, railway arches, warehouses, mills and allotments. Might not the noble Lord be undermining his own case if he is trying to tell the House that this is just about pubs and post offices?

Lord Cameron of Dillington Portrait Lord Cameron of Dillington
- Hansard - -

I accept that there are other community assets. As I said, I think that the open-space community assets could be dealt with in other legislation. However, the provisions are ultimately about a change of use rather than the disposal of what is a community asset. I accept that I speak for rural communities, but I think that one of the main purposes of these clauses is to protect, alongside urban community assets, rural community assets such as the village shop and the village pub. In any case, I think that my comments here apply equally to urban properties.

I urge the Government to rethink this whole chapter. I look forward to hearing the views of others.

Lord Reay Portrait Lord Reay
- Hansard - - - Excerpts

My Lords, as this is the first time that I have spoken at the Committee stage of the Bill, I would like to declare my interest as a landlord and landowner.

I have put my name down to remove all the clauses in Chapter 4, so I would like to speak to all those clauses collectively, but in fact I would not want there to be nothing in the Bill on this subject. The Government have made too big a political commitment for that. Nevertheless, I have always understood that the original political interest and intention was to make sure that local communities are given a chance to intervene to try to keep going a village pub or post office or shop or public library that has been threatened with closure. Despite what the noble Baroness said, the intention goes slightly further but not much further than that. When Ministers talk about the proposals, those are the examples that they generally give—my noble friend the Minister did the same on Tuesday.

However, the Bill goes vastly wider than that. In the first place, everything would have to be listed, as the noble Lords, Lord Greaves and Lord Cameron of Dillington, have emphasised. The Government have completely glossed over the implications of that. As the noble Earl, Lord Lytton, explained on Tuesday, this would be an extremely time-consuming operation. Every local authority would have to take on someone to list all assets of community value. My noble friend Lord True, sitting beside me, on Tuesday said that he thought that his council would need two extra staff. A cheer must have gone up in the Guardian newspaper’s advertising department upon seeing this provision in the Bill.

Secondly, almost any sort of asset could, by a creative council employee, without even being mischievous, be considered to have community value. Any sort of business which employed people who lived in the locality could be argued to promote or improve the economic well-being of the local community. Any cherished landmark, any listed building—although not, as the Minister tells us, if it is a residence, as regulations will prevent that—and any popular view, even, could be argued to promote the environmental well-being of the local community.

Thirdly, I should like to ask the Minister about the degree to which the provision is limited to assets of which the community has already enjoyed the use. Could a piece of ground that in someone's eyes might make a nice football pitch, cricketing pitch or playground be listed? Could it not be argued that the prospect of enjoying the use of a certain building or piece of land had contributed to the well-being of a local community?

Fourthly, the point of sale—here, I take up the point emphasised by the noble Lord, Lord Cameron of Dillington—is not the point at which local interest and local involvement should be triggered; it should be change of use or the threat of change of use. A pub can change hands and still remain a pub, but if an owner wants to redevelop it, then the community should have the right to bid. Change of use should trigger the right to bid—ditto with post offices and village shops. Could not this be done in a way that tied in with existing planning powers?

As it is, we have a snooper’s charter which could lend itself to all sorts of inventive arguments and practices, and which would surely result in landlords and landowners who have willingly made facilities available in the past less likely to do so in future for fear of having such a restriction placed on their property. They would want to avoid a situation where, whenever they might want to sell or transfer their property, this blocking mechanism could arise to impede and, in practice, prevent the transaction. On Tuesday my noble friend Lord Moynihan explained in detail how this could have massive adverse consequences for the provision of land and buildings for recreational and sporting use by private landlords in private agreements with local communities throughout the country.

Many amendments have been put down that deal with one or other part of the objections which I have mentioned, but none deals with all of them. I liked the amendment proposed on Tuesday by the noble Lords, Lord Greaves and Lord Tope, which would have required assets to be businesses. Unfortunately, when she wound up the debate, my noble friend the Minister said that she did not like the amendment and wanted to include more than just businesses. I am not sure what specific assets she had in mind but the examples that she and her colleagues tend to give are of businesses.

I also liked the amendment of my noble friend Lord Jenkin of Roding, which would have required that land to be listed needed the consent of the owner. Again, my noble friend the Minister did not like that; she said that no private owners would sign up. That in itself is a bit of a giveaway. She and her officials know that they are imposing on landowners something that they will not like.

Unless landowners see a way of providing facilities of whatever sort on their land to local communities without incurring the risk of the land or building being listed as of community value, with all the nuisance that that could bring, I foresee that supply drying up. That would be a huge tragedy. It would be a great folly, if the outcome were likely to be so counterproductive, to allow the Bill to be enacted with this part of it unamended.

Ministers have so far not come up with anything that remotely measures up to the numerous and serious objections to this part of the Bill. However, they have certainly listened to us, and I hope that something can be achieved during the Recess if not before. Meanwhile, I shall follow carefully other amendments which we are about to come to. I certainly liked what I hope may be an amendment that the noble Lord, Lord Cameron of Dillington, mentioned towards the end of his remarks.

--- Later in debate ---
Lord Cameron of Dillington Portrait Lord Cameron of Dillington
- Hansard - -

My Lords, I thank noble Lords for what I thought was a very good debate. I want to make it clear that, unlike the noble Lord, Lord Greaves, I do not want this part of the Bill to disappear; I want it to work. I want it to save pubs, shops and some community spaces. I accept that there is more to life than pubs and post offices, and I totally accept that communities should get involved with their open spaces. I am not sure about railway sidings—that is obviously a very difficult matter which I am afraid is beyond me—but clearly it does not really belong in this Bill.

However, if wasteland and other sites are owned by public bodies, as the noble Lord, Lord Jenkin, said, there is nothing to stop the community getting together now and trying to buy a particular site. If it is owned by a private person, they can also make a bid, as is being proposed. As I said, under Section 15 of the Commons Act 2006 people can make a bid to have a site declared as a village green. However, I still think that the real danger to an existing community asset occurs with a change of use. That applies to the possible cricket pitch of the noble Lord, Lord Shipley, or his MoD sale for business development. I am not sure about the demolition of the pub. I always thought that you had to get permission to demolish a pub. I am told that you do not; I accept that. That may be an exception but there is probably nothing that any legislation can do to stop that in any case.

As I said, I do not want this part of the Bill to disappear. I want it to work, but there is also no doubt in my mind that the chapter as currently proposed is not the right answer to saving community assets.

Clause 74 agreed.