Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Wednesday 3rd May 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I will be very brief. I speak only because of the words of the noble Lord, Lord Bellingham, just now. Like him, I am very keen to see, and as a Minister had some responsibility for, the improvement of high streets. The noble Lord is quite right that on a high street these changes could take place without the significant problem to local residents that he described might happen in a more residential area.

We are very supportive of the principle of Amendment 312, but I say very gently to the Minister that if, as I suspect, she is going to suggest that there is no need for this amendment, I would encourage her to remind herself of the earlier debate on the agent of change principle. That too was apparently not necessary. Frankly, it seems that one or the other will be necessary in the circumstances that the noble Lord, Lord Bellingham, described in a residential area. We need either a separate use classification or the agent of change principle to give local residents that protection.

[Baroness Scott of Bybrook (Con)]

Amendment 312, in the name of my noble friend Lord Northbrook, seeks to prevent the movement of premises being used as shops, banks, gyms, offices et cetera within (a) and (c) to (g) of class E to be used instead as cafés or restaurants in (b).

I take this opportunity to make clear to noble Lords that vibrant and diverse high streets and town centres are vital to communities, as places where local people shop, use services and spend their leisure time.

The Government introduced the commercial business and service use class in 2020 to support our high streets and town centres, enabling them to respond quickly to changes in consumer demands. This use class includes a wide range of uses commonly found on our high streets, such as shops, banks and offices, as well as services such as creches and health centres. Movement between uses within the class does not constitute development and therefore does not require planning permission. Thus, this class provides flexibility to move between such uses and allows for a mix of such uses to reflect changing retail and business models, and to avoid premises being left empty.

We believe that restaurants and cafés are an important part of our high streets and town centres. Such uses support high street vitality, attracting people to the high street to shop and spend their leisure time, and we would not want to limit them. My noble friend’s amendment seeks to restrict the flexibility of premises within the commercial, business and service use class to be used as cafés or restaurants. However, a permitted development right cannot be used in this way to limit movement within this use class. The legislative approach of this amendment is therefore flawed and we are unable to support it.

I turn next to Amendment 312F in the name of the noble Baroness, Lady Taylor of Stevenage, which seeks to require the Secretary of State to publish a review, within 12 months of the Bill achieving Royal Assent, of all permitted development rights. Permitted development rights are a national grant of planning permission that allow certain developments, including building works and changes of use, to be carried out without an application for planning permission having to be made. Permitted development rights have been a well-established part of the planning system for many years, supporting homeowners and businesses. In recent years, new permitted development rights have been used to support housing delivery. The rights are helping deliver much-needed additional new homes, including more than 94,000 homes in the seven years to March 2022.

In response to comments about the quality of some of the homes delivered, we commissioned research into the operation of the rights, published in July 2020. We subsequently legislated to ensure that all new homes delivered under permitted development must, as a minimum, meet the nationally described space standards and have access to adequate natural light in all habitable rooms. In addition, the current consultation on the infrastructure levy seeks views on the circumstances in which it may be appropriate to apply the infrastructure levy to permitted development.

We continue to keep permitted development rights under review, so this amendment is not necessary. It would also be impractical, as it would require a disproportionate review of 155 separate permitted development rights, all within the 12 months proposed. On these grounds, we will not be able to give this amendment our support.

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When he responds to the debate, will the Minister set out whether the Government recognise the urgency of setting up an office for risk and resilience or some other mechanism to address climate change that is regularly discussed in this House? I beg to move.

[Lord Foster of Bath (LD)]

My Lords, I am happy to support the amendments that have just been moved.

I remind the Committee that in earlier debates we spent quite a lot of time on the importance of creating an environment that is clean and healthy for people to live in—the noble Lord, Lord Best, in particular encouraged us to do that—while earlier today we heard from the noble Baroness, Lady Young of Old Scone, about the vital need to protect woodland and biodiversity more widely. The Minister responded that none of this required her amendments because, he pointed out, the planning system was there and the planners could be “proactive” in using tree preservation orders and measures regarding biodiversity powers.

That is all well and good, but with one problem: the vast majority of councils responsible for taking these proactive measures are short of planners. There is a huge shortage. Where we have an amendment that relies on there being sufficient skills, resources and capabilities to deliver all these things, we already know from the research that has been done that there is a significant shortage. Noble Lords do not have to listen to me to know that; the chief planner in the Minister’s own department has said categorically that there are not enough planners in local government in England. Joanna Averley went on to say, at the end of last year, that the department did not have the funds to provide resources for there to be more planners. My question for the Minister is: what is going to be done to increase the number of planners to carry out all the work that he keeps referring to and which will come about as a result of the Bill before us?

I want to place on record a huge tribute to the RTPI for the work it is doing to try to improve skills. It has its degree-level apprenticeship scheme, as I am sure the Minister is aware, and a number of other measures, but we are in a situation where it is now said that planners are like gold dust.

The situation is compounded by a further problem. Another amendment talks about what the role of chief planning officers should be. Again, that would be well and good if there were any chief planning officers to have a role. The truth is that we now have a situation where one-quarter of councils in England do not have a head of planning reporting directly to a chief executive. There is a real shortage, which has the knock-on implication that there tends not to be a career structure to encourage people to enter at the bottom end. The shortage of planners is exacerbated by the shortage of chief planning officers.

I want to use this amendment as an opportunity gently to ask the Minister what the Government’s plans are to resolve the resource shortage, which we do not need a review of because we already know it is there. I look forward to hearing what the Minister has to say.

[Lord Lansley (Con)]

My Lords, at this late hour I do not want to speak at any great length. I declare an interest as chair of the Cambridgeshire Development Forum. In that context, we are acutely aware of the shortage of planners in local authority planning departments, despite the efforts made, not least by Cambridge City Council and South Cambridgeshire District Council in bringing together their two planning services to try to ensure efficiency in both planning and the use of resources.

There is a shortage, so we looked at working with the RTPI’s young planners group and with Anglia Ruskin University, so that some of those degree apprenticeship placements would be in Cambridge, in addition to those in Chelmsford. That might bring more of those young planners into the Cambridge area, where we hope they will stay, working in businesses and local authorities locally.

One thing we have looked at, which is possible but not easy to do, is the development community entering into, effectively, area-wide planning performance agreements with a local planning authority. Such planning performance agreements are entered into generally in relation to individual developments and can be the subject of additional charges for things such as pre-application advice. Of course, that is purely on a cost-recovery basis. Once you begin to attribute charging and costs to individual developments, even though from the planning authority’s point of view it does not influence the outcome of any of the decision-making, there is a risk that that is what people perceive to be the case.

To try to avoid the risk of any attribution of resources to results in terms of the integrity and transparency of the planning decision-making, we and the development community want to look at the ability to assist in resourcing planning for major developments in the area, and to do so in a way independent of the individual applications and the individual developer. I hope that, when Ministers think about how we might increase resources, they will recognise this as one possible arrangement.

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[The Lord Bishop of St Edmundsbury and Ipswich]

My Lords, I will speak—briefly again, I hope—in support of Amendments 326, 327 and 334 in the name of the noble Baroness, Lady Warwick, and Amendments 344 and 350 in the name of the noble Lord, Lord Best, which have also been supported by my right reverend colleague the Bishop of Chelmsford.

The Church of England is committed—as noble Lords have just heard—to working to increase the provision of social housing, and these amendments would greatly improve the infrastructure levy to ensure that it is working to generate a good supply of truly affordable housing.

As we have heard, in its current form the infrastructure levy risks a serious reduction in the delivery of affordable housing and homes for social rent through the planning system. Despite this concerning impact, detail on how the proposed levy would work remains very thin. There are a number of fundamental issues that need to be addressed. These amendments would be a step in the right direction to doing so.

Amendment 326 introduces a mechanism for the delivery of onsite affordable housing and an in-kind levy payment, which would allow local authorities to ensure that their local housing needs are met. Amendment 327 excepts developments that contain 100% affordable housing from liability to pay the infrastructure levy, which would allow for the provision of affordable housing to go unimpeded by any diversion of funds, and also incentivise developers to invest in affordable housing plans.

Amendments 344 and 350 in the name of the noble Lord, Lord Best, would introduce critical improvements to the infrastructure levy. Tying the application of the infrastructure levy to the level of affordable housing requirement identified in the local development plan, as Amendment 344 would do, is a necessary step to ensure that the levy truly addresses local housing needs. Linked to this, Amendment 350 would ensure that at least 75% of the levy would be used to meet such local affordable housing needs as identified by local development plans. As we have heard, there are currently 4.2 million people in need of social housing in England. It is crucial that the infrastructure levy and the accompanying changes to the planning system improve the delivery of new affordable housing.

[Lord Foster of Bath (LD)]

My Lords, I begin by congratulating the noble Baroness, Lady Taylor, on her tour de force in going through all these amendments. I have no doubt that the Minister will attempt to do exactly the same at some future point as she goes through all our deliberations, and I have no intention of attempting to match either of them. I wish merely to say how important Amendment 322 in the name of the noble Baroness, Lady Armstrong, and Amendment 323 in the names of the noble Baroness, Lady Hayman, and my noble friend Lord Shipley are, and how supportive we are of them. They seek to define “affordable housing” for the purposes of the infrastructure levy as social rent. We are also very supportive of the amendment so ably spoken to by the noble Baroness, Lady Warwick—as is illustrated by the fact that my noble friend Lady Thornhill has added her name to it—and the whole issue of affordable housing, which we have touched on so many times. It is great that she has spoken to her amendment, and we are fully supportive of it.

I raise two amendments solely to hear the Minister’s response to them, because that is what we are interested in hearing. On behalf of the noble Lord, Lord Carrington, and with his permission, I will speak to Amendment 330, which, in effect, proposes the removal of agricultural buildings from the infrastructure levy. The infrastructure levy now being proposed is not exactly but in part a replacement for the community infrastructure levy. I am sure that many noble Lords will be aware that the application of the community infrastructure levy to agricultural property was somewhat hit and miss. Frankly, nobody knew whether they were in or out; some councils did, some did not, and so on. The Minister is nodding in agreement. The problem is that we do not have the proposed secondary legislation, so we have no idea quite how agricultural buildings will apply under the proposed infrastructure levy. Of course, we recognise that many of them—such as livestock buildings, grain storages, slurry tanks and farm reservoirs—are quite large but have very little structure; however, they may be very heavily hit. Given that your Lordships have recently debated the importance of farmers and the difficult times they are going through at present, it may be a good idea to put on the record a clear determination that such properties be excluded from the infrastructure levy. That is what the noble Lord, Lord Carrington, is proposing.

The only other amendment I want to raise is Amendment 356 in the names of my noble friends Lord Teverson and Lady Bakewell. It suggests that it should be possible to retain within the new system Section 106 agreements in certain circumstances. When looking at the whole area of biodiversity-type measures, you recognise that the great advantage of Section 106 agreements is that, unlike the infrastructure levy proposals, they are directly tied to the actual land where the development takes place, rather than being a payment for improvements that may happen somewhere in the neighbourhood. The second advantage is that they are not a one-off payment, as the infrastructure levy is proposed to be; they can be payments made over a long period.

Therefore, if you are seeking to develop some sort of wildflower arrangement, some meadowland or a biodiversity scheme of one sort or another, it is recognised that those will take a very long time to develop and they are on a particular site. The benefit of this amendment is that the Section 106 agreement can be kept because it is tied directly to the specific land and can be funded over a long period to ensure that the development is successful. On behalf of my noble friend Lord Teverson, I make the case for Amendment 356.