Neighbourhood Planning Bill

Lord Herbert of South Downs Excerpts

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Report stage: House of Commons
Tuesday 13th December 2016 Commons Chamber

[Graham Jones]

I reject that argument. It does not stand up. As I said, I shall seek to divide the House on new clause 1. The nation wants action on FOBTs, betting shops and payday lenders, and this is the opportunity.

[Nick Herbert (Arundel and South Downs) (Con)]

I welcome the opportunity to talk about neighbourhood planning, not betting shops. I shall speak to new clauses 7 and 8, which attempt to deal with the problem of undermining a very good policy that the Government have pioneered. The good policy is that of neighbourhood planning, which embodies the spirit of localism by giving local communities control over where development takes place. People are empowered to take responsible decisions about development. It changes the terms of the conversation from communities resisting the imposition of development to one where communities ask themselves what they want in their area. Where communities have taken neighbourhood plans forward, they have produced more housing than was anticipated in local plans. Neighbourhood plans are therefore not a means by which development can be resisted. Rather, they ensure that communities have a proper say in where development should go.

The basis on which communities have been encouraged to embark on neighbourhood plans is that for a period of 15 years they will be able to allocate sites where development will take place, and sites where development will definitely not take place and which will be protected green spaces. Many hon. Members, including me, appeared before our local parish or town councils and encouraged them to take forward neighbourhood plans on the basis that they would be protecting themselves from future development if they did so.

These neighbourhood plans are a very good thing, but they are immensely burdensome on local communities. It is volunteers who draw up the plans, and the process takes years. We are probably making it unnecessarily complex, with much inspection of the plans; they have to go through many hoops. The responsible volunteers who sit on the neighbourhood planning committees to draw up the plans often face a great deal of criticism from parts of their community that may not want development on sites whose suitability the committees have to assess. The individuals concerned put a great deal of time and effort into the plans.

West Sussex was one of the earliest counties to produce neighbourhood plans. When they were submitted to referendum, support for the plans was very high among the local communities. One of the thorniest questions in planning is what happens when communities are confronted with development that they really do not want. We embarked on the policy of neighbourhood plans with confidence that they may be a means of settling that question in a way that produced local housing in the area. One small village in my constituency, Kirdford, has only 120 houses at its centre. People there actually produced a neighbourhood plan for another 50 houses—a very big number of additional houses—because that was what they wanted, and they wanted that housing to be affordable and for local people.

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[Rob Marris]

Reading new clauses 7 and 8 carefully, I am not sure they cover the situation to which the right hon. Gentleman has adverted. Briefly, in the Tettenhall area of my constituency, the local neighbourhood plan had a more than 50% turnout on a referendum in July 2014; the local neighbourhood plan goes through; there is then an application for a site called the Clock House; the local authority refuses planning permission; the case goes to the Planning Inspectorate in Bristol, which, in a 17-page decision, makes two brief references to the neighbourhood plan—and allows the appeal. Can the right hon. Gentleman assure me that new clauses 7 and 8 would deal with the local neighbourhood plan being overturned by the Planning Inspectorate in contradistinction to the planning authority—in this case, Wolverhampton City Council, which refused the application?

[Nick Herbert]

It may be a weakness in these new clauses that they may not deal with a situation where the Planning Inspectorate takes such a decision. I will not be tempted down a line I have pursued in the past, which is to question whether we should have a Planning Inspectorate at all under the provisions of localism; indeed, one Conservative manifesto promise was to abolish the power of the Planning Inspectorate to rewrite local plans, but we seem to have lost sight of that.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

Will my right hon. Friend just expand on that point? Why is he no longer in favour of abolishing the Planning Inspectorate? In my experience in Sutton Coldfield, it adds precisely nothing to the process.

[Nick Herbert]

I am very glad to be pushed into a more moderate and Conservative position on this issue than the one I previously took. What I am focused on is ensuring that the Planning Inspectorate takes the right decisions should such developments be called in, and, more particularly, that local authorities take the right decisions in the first place. We should be minimising the number of appeals that have to go to the Planning Inspectorate because a wrong decision is made or because a decision appears to be in breach of national policy, and that means getting the national policy right. My contention is that national policy should give primacy to made neighbourhood plans, because these have been approved in local referendums.

[John Redwood]

Has my right hon. Friend also come across cases, which I am now seeing, where the local plan clearly has a five-year supply of land, but because it is concentrated in a major settlement—to concentrate the infrastructure and the development gain—an appeal can still be lost in another village, which naturally wants to protect itself because the development the local community agreed to was going to be concentrated in a new settlement?

[Nick Herbert]

Yes, my right hon. Friend makes the point very well.

The first way in which neighbourhood plans can be vulnerable to speculative development—even when it was thought that they would protect areas—is when there is not a sufficient five-year land supply in the local authority. The problem with that is that the five-year supply is not always properly in the hands of the local authority, but depends on the ability and willingness of local developers to build. Developers are undoubtedly gaming the system so as to secure speculative development applications and planning permissions, in a way that is deeply cynical and that is undermining the principles of localism and community control.

[Sir Nicholas Soames (Mid Sussex) (Con)]

My right hon. Friend is very good to give way on this matter. Does he agree that in mid-Sussex, which he and I both represent, we have seen some extraordinarily unscrupulous behaviour by the house builders, who have been gaming the situation and abusing the plans, and thus have done something very bad for Government policy by undermining the credibility of a really good idea?

[Nick Herbert]

I strongly agree with my right hon. Friend. The actions and behaviour of developers in mid-Sussex have also caused a delay of the plan, which has delayed the building of essential new housing as well as undermining neighbourhood plans.

There is a problem with the measure of the five-year land supply, which should be assessed in an accurate and honest way and not in a way that is capable of being gamed by the developers.

The second way in which neighbourhood plans can be overridden is when local authorities do not have a plan. Clearly, that is not a satisfactory situation, and the Government are seeking to address it. The problem is that this allows for a free-for-all in the area. Apparently that free-for-all can include neighbourhood plans, in the sense that when the local authority is drawing up its plan, it can override the neighbourhood plans not just with the allocation of strategic levels of housing, as was always envisaged, but with the requirement that neighbourhood plans wholesale are rewritten, as has been suggested to some communities in my area. Neighbourhood plans can also be overridden because the needs of a local plan, which often now have to provide far more housing than was originally intended, are said to come first. Those are problems for the principle of responsible neighbourhood plan making and local democracy.

[Mr Jackson]

Is my right hon. Friend aware that in its call for evidence in October 2015, the Local Government Association invited the Government to look again at the methodology for five-year land supply in local planning authorities? Does he not think that it might be considered potentially quite draconian to put a de facto moratorium into this Bill?

[Nick Herbert]

I am not proposing a moratorium, because I think it is essential that we build houses in this country and, as I have said, neighbourhood planning has produced more housing than was expected.

There is a real danger that if we undermine public support for neighbourhood planning we will undermine the principles of localism and will not get people to participate in neighbourhood planning in future. As I have seen in my constituency, neighbourhood planning, about which people were slightly cynical in the first place but became enthusiastic, is now being described in a very detrimental way, and some communities are saying that they will not go ahead with neighbourhood plans.

[Sir Oliver Letwin (West Dorset) (Con)]

I very much agree with my right hon. Friend, as he knows, and he is making an impeccable defence of the position, but may I urge him to correct one tiny point? It was never envisaged in the first place that there would be a sequence that involved a neighbourhood plan first and a local plan second. It was, on the contrary, envisaged that all local authorities would proceed immediately towards the new-style local plans. It is a gross dereliction of duty on the part of those that have not thus proceeded. He is therefore right, and my hon. Friend the Minister is right, to press forward with new-style local plans everywhere without delay.

[Nick Herbert]

Yes, I agree with my right hon. Friend. The authorities should come forward with the plans. It is also true, though, that sometimes the plans have not come forward, as in mid-Sussex and in Arun, because they have been sent back by the inspector, and the inspector, in causing delay, has allowed a situation where the housing number increases. That then puts at risk all the areas that created neighbourhood plans with an allocation that they thought was accurate according to the original assessment in the draft plan, but now is not so. It is not just the fault of local authorities that plans have been delayed, and it is undesirable that we have a situation where the cart has come before the horse.

[Geoffrey Clifton-Brown]

My right hon. Friend the Member for West Dorset (Sir Oliver Letwin) is absolutely right that it is a gross dereliction of duty. My local authority is in that category, and the net result is that we do not have a single neighbourhood plan, despite the fact that I have written to every single clerk and every single town and parish councillor in my constituency. We need to put powers in the Bill to make sure that every local authority has a local plan, so that the good people in our constituencies can go forward with their local plans in the confidence that they will not be derailed by speculative developers.

[Nick Herbert]

I agree with my hon. Friend. I hope that if the Government are willing to listen to this argument, as I believe they are, and come forward with proposals to deal with the situation—should the measures I have tabled not be the right way to do so—we will rebuild confidence in neighbourhood planning and it will proceed.

The measures I have tabled work as follows. New clause 7 addresses the first problem I set out. It would require planning authorities to consult neighbourhood planning bodies on decisions to grant planning permission. Where a planning authority wanted to approve a major development against the wishes of a neighbourhood planning body, the planning authority would be required to consult the Secretary of State before granting permission.

The five-year land supply is dealt with by new clause 8, which would empower the Secretary of State to issue a development order to: clarify the means by which housing land supply is assessed; define the minimum amount of time before a local planning authority’s failure to meet its housing targets would result in its local plan being out of date; and specify that neighbourhood plans should be taken into account, notwithstanding the lack of a five-year supply of housing land.

I very much hope that the Minister will respond to the new clauses in the spirit in which I have tabled them. There is a genuine problem here, but it is capable of being addressed without undermining the need to build more houses in this country. We must respect local communities that do the right thing and embark on the plans, because there is a real danger of undermining localism and communities if we do not act to ensure both that the principles of neighbourhood plans are upheld and that made neighbourhood plans that have been approved by the local population in a democratic vote cannot be overturned by speculative developers.

[Sir Edward Garnier (Harborough) (Con)]

My right hon. Friend is being most generous in allowing interventions. Does he have the problem that I have in my constituency, namely that the district council has very nearly, but not quite, given sufficient permissions for the set number of dwellings for the planning period, but the developers given the permissions do not make the building starts, so when the next scheming developer comes along, the district authority says no, but the planning inspector says yes, because the area has not built up to the number? Building is in the control of the developers, but the permissions are in the hands of the council.

[Nick Herbert]

My right hon. and learned Friend puts the point incredibly well. That is exactly how developers are able to game the system and why the way in which we calculate the five-year land supply is fundamentally flawed and is giving rise to this injustice. The loophole has to be closed, and I very much hope that the Government will do so.

[Mr Mitchell]

I apologise for troubling the House twice in one day, not least since I only very rarely intervene in this area of public policy, but in Sutton Coldfield we are absolutely astonished and mystified by the Secretary of State’s unwise and illogical decision to lift the stop imposed by his predecessor on the plans from Labour-controlled Birmingham City Council to build 6,000 new houses on Sutton Coldfield’s green belt. I should make it clear that we are strongly in favour of building more homes in Sutton Coldfield. My excellent local councillors—11 out of 12 of them are Conservative—have consistently sought to ensure that, where appropriate, we build new homes, because we are conscious that we want our children and grandchildren to benefit in the same way as my generation has, but those homes have to be built in the right places.

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[Mr Jackson]

I begin by declaring an interest: for six years I have been honorary vice-president of the Local Government Association. I congratulate my right hon. Friend the Member for West Dorset (Sir Oliver Letwin). I hope his amendment finds success in the other place. I also want to mention the doughty champion, the hon. Member for Hyndburn (Graham Jones), who, together with my hon. Friends the Members for Congleton (Fiona Bruce) and for Enfield, Southgate (Mr Burrowes), has been very much at the sharp end of this important debate, as indeed I was at one time with my “stop the FOBTs” campaign in Peterborough city centre.

I ask the House to look at the wider context of the practical implications of new clauses 7 and 8, and also amendment 28 tabled by my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). We were all elected on a manifesto commitment to increase the supply of housing, and we all, I think, agree with the national consensus that we are in the middle of a housing crisis at present. We also need to look at this Bill within the wider context of generational fairness and social equity between those who own capital and those who wish to acquire capital. That is an important issue. I strongly welcome the likely publication in January of the housing White Paper and I hope that this important debate and Bill feed into that.

In that context, I draw the attention of the House to a useful paper published today by Daniel Bentley for the Civitas think-tank, “Housing supply and household growth, national and local”. It examines housing supply projections and puts a nominal figure on the real impact of the housing crisis. My right hon. Friend the Member for Arundel and South Downs (Nick Herbert) put his case in his usual erudite and well thought-through way, but my challenge to him and others is this: will their new clauses and amendments improve the position? The projected housing supply for the county of Sussex in 2015-16 did not even meet 50% of the figure for projected annual household formations from 2014 to 2039. Few local authorities are meeting those targets. Even the Secretary of State for Communities and Local Government has used the conservative figure of 220,000 new homes being needed to keep pace with population change over the period to 2039. Some estimates, including those in the paper, suggest that the figure may be as high 330,000. I will not proceed down the path of discussing immigration, but, according to the Local Government Association, 49% of household formation over that period will come from net migration, so it is a big issue.

In 2015-16, we physically built only 163,940 new homes, although more were created through 5,000 conversions and 35,000 changes of use. In the 30 fastest-growing non-London local authorities only five managed to outstrip the difference between housing supply and housing growth by percentage increase: Dartford; Uttlesford; Aylesbury Vale; Slough; and Ashford. Of the 30 non-London local authorities with the highest population growth, in nominal terms only eight built enough houses to meet long-term need. While not perfect, the national planning policy framework has helped in some respects. Oxford, for example, has produced only 66% of its need based on population growth, but thanks to its duty to co-operate with other local authorities, such as South Oxfordshire District Council or Vale of White Horse District Council, it is meeting its targets on a sub-regional strategic housing level, which is good.

My right hon. Friend the Member for Arundel and South Downs and I have crossed swords before on the NPPF way back in 2012, but we must not put in the Bill a potentially wide-ranging and draconian measure that would effectively stymie the building and development of appropriate homes. We all have horror stories about the Planning Inspectorate. For example, the village of Eye near Peterborough was grossly overprovisioned with residential accommodation, with the inspectorate completely ignoring the hundreds of petition signatures, public meetings and so on, but we are where we are with the current system. Nevertheless, the NPPF already sets out the appropriate weight to be given to relevant policies between neighbourhood plans and the adoption and development of local plans, structure plans and site allocation plans.

New clause 7 would discriminate against local planning authorities that produce timely, robust local plans and that have adhered to the correct procedure for consultation, public inquiries and the Planning Inspectorate. We must bear it in mind that there might be an inadvertent consequence.

[Nick Herbert]

I am listening carefully to my hon. Friend, and I do not want him to traduce the intention of the new clause, which is not to prevent house building, but to ensure that neighbourhood plans are protected. I repeat my earlier point: neighbourhood plans have produced more housing than was anticipated. As he took such an interest in Sussex, I should point out that many district councils in West Sussex, including in my constituency, are producing housing far in excess of the south-east plan to meet local demand.