Localism Bill

Lord Greaves Excerpts

Thursday 14th July 2011 Lords Chamber

[Lord Best]

My Amendment 170CK, which comes later in the Bill, is not quite as imaginative as the approach of the noble Lord, Lord Lucas. It is a more pedestrian way of dealing with the matter by amending the Commons Act 2006, which is essential. At nominal cost to the applicant, frivolous and vexatious applications can add so much cost and delay to a scheme as to deter the developer or housing association from proceeding. I have personal experience of this, being familiar with a development in York. We were attempting to create a significant new mixed-tenure community of some 540 homes and, despite the council being fully in support of that, havoc was wreaked by a village green application to incorporate the whole of a 53-acre site. It was made on the basis that a local resident had been walking their dog on the site for the past 20 years, thereby meeting the criteria of lawful sport or pastimes. Since the tolerant owner had taken no legal action against them, the case could be made that this large site could possibly be England’s largest village green. Although the proposition was in due course thrown out, it involved my charity in considerable frustration, the potential loss of public and private funding, considerable expense and delay of more than a year. A less tenacious developer might well have given up, depriving the city of York of what will be a huge asset for generations to come.

Perhaps I may quote from one landowner in Norfolk, whose perspective has been sent as an illustration by the Hastoe Housing Association. They state:

“I believe that affordable homes are vital in sustaining rural communities. As a result, when Hastoe with the backing of the parish council approached me about selling them some land, I agreed. Many people retiring from the south-east have moved to this area of Norfolk, raising prices beyond the local people’s means and threatening the future of the [village] school … Unfortunately, this decision to help has resulted in me becoming involved in an extraordinary process that will last several years and cost me many thousands of pounds. What is so frustrating is I have detailed crop records for the past 20 years and an acknowledgement from those claiming the arable field as a village green, that they never walk on it when it is in crop. On top of that, those making the claim have taken more than two years putting in their village green application, are funded by somebody whose main home is not in the village and have refused to reveal themselves to the rest of the village. However, it appears that the law is so badly drafted and open to so much interpretation, that the County Council admits that it is extremely unlikely to throw out the claim until it has gone to Public Inquiry as they do not want to run the risk of having to pay for any legal challenge to their initial decision”.

Naturally, this example of big society action by the landowner means that he and no doubt dozens of others are unlikely to part with any land until this overindulgent legislation is reined in.

My amendment looks at the nitty-gritty of the situation and proposes ways in which the law could be amended. I will briefly outline what it says. Amendment 170CK would stop retrospective application for town and village green status after planning consent has been granted, which is currently possible. It would prevent efforts to overwhelm the authority with excessive paperwork, allow authorities to reject vexatious or frivolous applications and allow the recouping of costs in such cases. It would make deregistration possible where a review showed that the village green status had, some time later, become obsolete. I hope that the amendment commends itself to your Lordships and the Minister.

[Lord Greaves]

My Lords, I remind the House of the interest that I declared at the beginning of the Committee stage. I am vice-president of the Open Spaces Society, which is the expert voluntary organisation on village and town greens and spends a lot of its time advising people who wish to register greens. It strongly advises people not to do so purely to resist development and not to proceed if the evidence appears to be poor. Not everyone takes that advice, unfortunately.

The amendments attempt to tackle this perceived problem—it is indeed a problem in some areas—by amending this legislation and thereby amending the Commons Act 2006. I suggest that this is probably the wrong time and the wrong legislation to do that. Town and village green legislation, as noble Lords who took part in the discussions of the Commons Act in 2006 will know, is extremely complex and somewhat difficult. Section 15 of that Act laid down a new system for the registration of greens, but that was based upon much older commons legislation, going back to the past, describing what is and is not a green.

I have some questions. Is there an identified problem? Yes. Is it hugely widespread? No, but it is serious where people are abusing the system. Some instances of that have been identified here today and I could provide some more. Does it need sorting out? Yes. Does it need new primary legislation and is this the right Bill to do it? No. As the noble Baroness, Lady Byford, has identified, what is required is an overhaul of the Commons Registration (England) Regulations 2008, which result in a system of greens registration that, in my view and that of the Open Spaces Society, is overly bureaucratic, takes far too long and can be far too costly.

I was involved on the other side, as it were, in an application for a green in Lancashire where Lancashire County Council wanted to build a new secondary school, which I was in support of, and a group of people tried to suggest that the land on which it was being built was a green. I met them, advised them and told them that it was not, but fortunately Lancashire County Council, perhaps because it was a project of its own that was potentially being blocked, was very expeditious in sorting it out. Quite correctly, it rejected the application.

We have a 10-point programme that would greatly improve the green registration system. It could be done simply by secondary legislation by amending the 2008 regulations. I am not suggesting that that is the whole answer and I am not going to tell your Lordships today what all the 10 points are, but we are happy to discuss this with Ministers. They will be Defra Ministers, though, as this is not a CLG matter. Defra is already looking into the problem; it has commissioned research, it is having discussions and it is considering its responses. I hope that on that basis we can let the department get on with it.

There is an understanding on all sides that this is urgent. It is important not to throw the baby out with the bathwater and not destroy the system of registration of town and village greens, which is a very useful process, but to stop people abusing it.

[Lord McKenzie of Luton]

My Lords, we should thank the noble Baroness, Lady Byford, and the noble Lords, Lord Best and Lord Lucas, for identifying and raising this issue this evening. Clearly, as the noble Lord, Lord Greaves, said, we must cherish and support the legislation which enables the identification, reclamation and maintenance of town and village greens. However, there is clearly a problem here. As the noble Lord, Lord Greaves, asks: is there a problem? Yes. Does it need sorting out? Yes, it does.

I am not sure that we necessarily have the way forward encapsulated within the amendments before us. The noble Lord, Lord Greaves, has made some interesting suggestions and I will be interested in the Minister’s response. The noble Lord, Lord Lucas, offers the prospect of being able to identify and establish a town or village green only through a neighbourhood plan. That seems potentially too restrictive: if you do not have a neighbourhood plan in place, what happens? They will not necessarily be universal.

I side with those who say that a misuse of this legislation is taking place. I accept that it may not be widespread, but it does need sorting out. I look to the Minister to see what solutions he offers.

--- Later in debate ---

[Lord Greaves]

There is a great deal of sense in that. Some of the difficulty is the muddle between Section 106 agreements and the community infrastructure levy, but it is the clear intention—it was the clear intention of the previous Government and I assume that that has not changed—to phase out Section 106 and replace it with CIL. The difficulty with that is that it brings levies and what they might be used for down to a quite small-scale local level. Large infrastructure projects are one thing, and I agree with many of the comments made by the noble Lord, Lord Berkeley, about that, but there are big projects, small projects and projects in-between. The amount of CIL that would be levied on many local development projects is quite small. Unless it can be seen as a replacement for Section 106 for the kind of things that Section 106 is spent on, and perhaps some further flexibility, a great deal will be lost. It is difficult to find ways of spending those relatively small amounts of money on things that might be classified as infrastructure.

One large-scale thing that Section 106 has been important in subsidising and helping to develop is affordable housing. We have had a debate about that and the Government have said that they are looking seriously at allowing CIL to be used for affordable housing. Affordable housing is not really infrastructure, apart from for the people living in a particular house. It is development that needs infrastructure around it. Classic cases of Section 106 funding include subsidising local bus services, whether it is a service to a new supermarket or a new estate. It is not infrastructure. Lots of local amenity areas, playgrounds, and so on, have been paid for out of Section 106. Are they infrastructure? A common-sense use of the word would suggest that they are not. Unless the levies can be used from local developments on this kind of thing, local authorities will find it much more difficult to provide them. Often new housing is developed by converting a mill into flats and then improving some of the areas around, which are pretty run down, by turning them into nice amenity areas and playgrounds, which is very important and linked to the development.

We have a new supermarket, which released £390,000 under Section 106 to spend on the local town centre. A lot of the spending on that town centre could not be described as infrastructure. It is about improving the appearance, relaying flags and grassed areas, improving shop fronts, and so on, which is all very important in helping the town centre compete with the new supermarket and hold its own, but is it infrastructure? My right honourable friend Simon Hughes suggested that double glazing might be an appropriate use of CIL from local projects. That is not infrastructure, but it is the kind of area in which we hope for some flexibility. I am not sure that we are that far apart. Clearly if a project is big enough to pay for a bypass, that is certainly infrastructure. However, we need flexibility.

[Lord McKenzie of Luton]

My Lords, as I indicated to the noble Lord, Lord Jenkin, we support the thrust of these amendments. Certainly I agree that CIL must not be used to fill revenue holes in the budgets of local authorities. A specific assurance on that from the Minister would be entirely appropriate.

When we debated this last week, our concern was about the interaction of CIL, Section 106 and affordable housing. As the noble Lord, Lord Greaves, said, the Minister indicated possible flexibility in future after consultation. We welcome that. We also agree with the noble Lord, Lord Jenkin, that if part of CIL is to be paid to a neighbourhood forum, for example, it must be linked to infrastructure. We would prefer the decision to be made by the local authority rather than dictated according to an arrangement of the Secretary of State.

The definition of infrastructure for these purposes in paragraph 12 of the CLG book, Community Infrastructure Levy: an Overview, published in May this year, states, surprisingly:

“The Planning Act 2008 provides a wide definition of the infrastructure which can be funded by the levy, including transport, flood defences, schools, hospitals, and other health and social care facilities. This definition allows the levy to be used to fund a very broad range of facilities such as play areas, parks and green spaces, cultural and sports facilities, district heating schemes and police stations and other community safety facilities. This gives local communities flexibility to choose what infrastructure they need to deliver their development plan”.

There is already quite wide discretion in the rules.

I particularly support the point about potential double charging when a development has already entered into Section 106 obligations, some of which may be very long-term. Like my noble friend Lord Berkeley, we had discussions with Gatwick. However, this is not just an airport or a Gatwick issue.

I am not sure how best to resolve this issue. Part of the solution may relate to how and at what point CIL is charged. I understand that what triggers it is the commencement of development that has been the subject of some form of planning permission. Therefore, in a situation in which Section 106 obligations are already in place from prior development, I do not see how under the rules that could trigger a new CIL charge. However, any new development might, so Section 106 and CIL could still be paid at the same time. The potential for double charging is an issue, and I look forward to the Minister's response on that. However, the thrust of this is exactly right and we support it.

--- Later in debate ---

[Earl Attlee]

I am grateful to my noble friend. I hope that when I have finished my speech, he will be a little bit more satisfied.

We intend to use the powers of Clause 100 to require charging authorities to allocate a meaningful proportion of any revenue generated from development in an area to the parish or community council for that area. The local council will be free to determine how those funds are used to address the demands that the new development will place on its infrastructure. This amendment seeks to take control away from those local councils and the communities that are being asked to accept the new development and will significantly reduce the incentive effect of these changes.

My noble friend Lord Jenkin asked whether CIL can be passed to others on condition that it is spent on infrastructure. Where CIL is passed to another body, it must be spent on infrastructure to support the development of that area. I think I have repeated that answer.

[Lord Greaves]

Will my noble friend confirm that passing those resources to other bodies will occur only in the case of parish and town councils, and community councils in Wales, and that they will not be passed to neighbourhood forums or any other organisations?

[Earl Attlee]

My Lords, that is a slightly technical question for me, but I will write to the noble Lord on it, unless inspiration comes quickly.

My noble friend Lord Jenkin of Roding and the noble Lord, Lord McKenzie, asked whether such resource will be used to meet local government shortfalls. We have clearly set out that the purpose of the levy is, and must continue to be, to support development. I can assure noble Lords that the money cannot be substituted for general local government spending.

My noble friend Lord Jenkin asked the Government to consider greater flexibility in the use of CIL. We will consider whether allowing spending on infrastructure and other matters could improve the levy’s ability to support development. We agree that infrastructure is vital to supporting new growth and development but we do not accept that it is necessarily all that is needed. We will reflect on that and return to it at a later stage.