Lord Kennedy of Southwark
Main Page: Lord Kennedy of Southwark (Labour - Life peer)Housing and Planning Bill
Lord Kennedy of Southwark Excerpts
Baroness Andrews (Lab)
My Lords, we are a dwindling band but the issues are no less important. This amendment repeats the amendment which I laid as Amendment 98 in Committee to stress the need for brownfield sites to achieve both sustainable development and good design.
We brought the amendment back not only because we continued to see the need to reinforce and make clear on the record that the NPPF applies to brownfield sites on the register and that any developing local authority must therefore ensure that those sites exemplify all the positive and best aspects of place-making. We also brought it back to reiterate common concerns, inside and outside this House, that these new developments may fall prey to being a short cut to throwing up the sorts of housing estates that we hoped we had seen the last of that are identikit and, frankly, alienating. We want to ensure that developers who are under the cosh get the clear message that it is possible to build quickly but beautifully. There is nothing utopian about that—it can be done.
Sustainability means, of course, to build to sustainable environmental, social and economic conditions, and with regard to social sustainability it also means building in that which reflects, incorporates and makes a working feature of the heritage of the site, to give new inhabitants of an old and much-worked site a sense that they too belong there in a new age. We often underestimate the importance of reflecting that sense of identity and belonging, yet it makes an enormous difference to how people feel about where they live.
That means that the second reason I have for bringing back the amendment is even more important. When we discussed it in Committee we had some exchanges about new town development corporations which led me to reflect that the NPPF might not apply to these new planning authorities and that, if they were to develop to their very best—in terms of the rare opportunity these developments offer to master plan to the highest standards—they most certainly should be under the same planning law. I am very grateful for the help of the TCPA in establishing this point. Again, I thank the Minister for the help she has given and thank her very helpful officials in this respect. They have confirmed that I was right to raise this as an issue. The duty to work towards sustainable development as set out in Section 39 of the Planning and Compulsory Purchase Act 2004 does not apply to new town development corporations. However, I am assured that in practice, as the Minister said in a letter to me,
“the Government does have the means to ensure that they have regard to the NPPF in drawing up its plan for a new settlement”.
She has suggested that this could be done, for example, through provisions set out in Section 7 of the New Towns Act 1981.
I will quote the rest of the Minister’s letter, because it is very important for the record. She says that she is,
“aware that there is a strong case to ensure that there are explicit statutory obligations on”,
new town development corporations,
“to work towards achieving sustainable development, in the same way as they are currently on a local planning authority. I am pleased to say that we will be bringing forward such proposals shortly”.
There will be amendments later on, possibly on Monday, on the same point, but it is apposite now to raise this issue on the amendment and to say again that I would be very grateful if the Government were able to say a little more about how this other loophole in the law might also be closed. I beg to move.
Lord Kennedy of Southwark (Lab)
My Lords, my noble friend Lady Andrews has showed the House her expertise in these matters and I fully support her amendment. I do not have any more to say than that.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
My Lords, again I pay tribute to the noble Baroness, Lady Andrews, not only for eloquently outlining her amendment but for how she has contributed to this part of the Bill thus far. She outlined why she considers that this is an important opportunity to place a high-level obligation in the Bill to ensure that the brownfield register contributes to sustainable places. I fully agree that local authority decisions should consider sustainable development and good design but I hope I can outline why the amendment is not needed.
This clause will already require local planning authorities to have regard to the NPPF when, for example, making decisions about sites to include in local registers. As we discussed in Committee, the framework makes clear that sustainable development should be at the heart of both plan-making and decision-taking. I emphasise that placing a site on a register is not a permission to build—but I am sure that the noble Baroness knows that. The consideration of detailed issues, such as design, will not be feasible at the point that sites are entered on to the brownfield registers. That will come later. Applicants will be responsible for providing detailed information when they submit their applications for technical details consent. This will ensure that design is also considered before consent is granted in the same way as it would be for a planning application.
The noble Baroness raised the applicability of sustainable development objectives and the NPPF to new town development corporations. As she will be aware, we announced in the Budget our intention to legislate to better support the delivery of new locally led garden towns and villages. We want to ensure that they exemplify high design and sustainability standards. It is absolutely our intention that when we legislate we will ensure that sustainable development objectives and the outcomes set out in the NPPF apply with no less force to new town development corporations than they do to local planning authorities in general.
I also point out that it is the applicant and not local authorities who should bear the cost of providing detailed information in support of their application. Placing a stronger emphasis in the Bill could result in unnecessary burdens being transferred to local authorities. I emphasise that our proposals for the brownfield register or permission in principle do not change the protections in the NPPF in respect of sustainability or design.
I hope that I have been able to articulate our position and that the noble Baroness feels able to withdraw her amendment.
Lord Porter of Spalding (Con)
My Lords, strangely, I am going to speak against the amendment, because of the second part. I am not sure why this amendment is not linked to the one about the private sector being able to compete against local government to do planning. In my mind they should go together. There is no way that the private sector will pick up any planning applications if it is only allowed to charge the current fee structure that we as councils are allowed to charge. That is because in the last three years the taxpayer subsidy to planning has been £450 million. The private sector will not engage on that.
Without the second part being in there, it would allow local government to be put in the right place to prevent the private sector being able to take the work at a subsidised rate for itself. The risk seems to be that, when we get to that part of the Bill, private sector firms will be allowed to charge excessive fees and make money, safe in the knowledge that there will be an expectation that they will be more sympathetic to the applicant. I think a true level playing field would be one in which we charge full cost recovery and for those applications that are minor, where that would not be possible, there needs be a different mechanism. That is why I cannot support the amendment as written.
On the next amendment, on the retrospective planning application, again, we need some way to penalise serial offenders who wilfully abuse the planning system by not seeking planning permission in the right way when they first set out on their projects. Again, I am not sure how that should be worded in a way that will deliver it to best effect for everybody, because there will be genuine cases where some people simply were not aware that they needed to make a planning application. So any amendment must recognise that for me to be able to support it. As I have said before about any amendment that has “local government must” in it, there is no way I can support the third part of that amendment, where it says that we “must consult”. I do not think that local government ever “must” do anything. I think we should always “may” do something.
Lord Kennedy of Southwark
My Lords, I have considerable sympathy for the amendment moved by the noble Baroness, Lady Gardner of Parkes. I regret that we were not able to get Amendment 116BA into the same group, as it covers the same issues. It makes clear that local authorities may recover their full costs in respect of the work they are doing on planning applications, which is the intention behind this amendment as well.
I think it is important that councils are able to set fees that enable them to recover their costs, or at least a larger part of their costs, in undertaking the work they need to do to ensure that applications are processed efficiently. This would, of course, mean that for larger developments developers would pay more, or more realistic costs, than someone who wants to build an extension to their home.
I agreed with the noble Lords, Lord True and Lord Porter of Spalding, when they said in Committee that it is probably going too far to allow councils to make money out of the planning application process, but it is right that they should be able to recover up to all their costs, which is the intention of my Amendment 116BA, which we will come to later. I am disposed to test the opinion of the House on that if the Minister does not make a reasonable offer in that regard before Third Reading.
The noble Baroness, Lady Gardner, made a compelling point on Amendment 116, to which the noble Lord, Lord Porter, referred. At my last planning committee meeting, I recall that a public house in Blackheath was seeking retrospective approval for the substantial changes it had made to the fabric of its building without planning permission. It obtained the approval. We made it very clear to the applicants how unhappy we were that they were there in front of us, but that was all we could do. They got their permission and paid the nominal fees. It would be good if such applicants could be made to pay a little more, given the work that we had to do.
Baroness Williams of Trafford
My Lords, although there has been the ability for fees to go up in line with inflation, there is a general acceptance of the anecdotal evidence from local planning authorities that their costs are not being met, but we have to marry that up with performance and efficiency.
Lord Kennedy of Southwark
I know that we are going to come back to this next week but, before the noble Baroness sits down, can she confirm that, when we have all these reviews, she does not envisage a situation where we end up with the local authority being able to charge one set of fees for a planning application, while a lot more could be paid to another provider who could also do it but at a more expensive cost? I think that it would be totally wrong to allow there to be two levels of fees—you could have the council charging a fee but allow some other provider to do the same job for a larger fee.
Lord Shipley
Before the noble Lord sits down—that is actually the subject of the amendment that I shall be moving next Monday.
Baroness Williams of Trafford
I thank the noble Lord for the manner in which he has engaged with me and Members of your Lordships’ House in addressing not just the basement development issue, but the associated problems and the misery of people’s lives being disrupted by such developments. He has certainly enlightened me as to some of the problems in London, in particular. The Government are very aware of them now, if they were not previously.
I take this opportunity to tell the noble Lord and your Lordships’ House that in the light of the concerns he has raised on this and many previous occasions, we will commit to carrying out a review of the planning law and regulations relating to basement developments. The noble Lord promised me that I would be splashed all over the Evening Standard for this, so I await his side of the deal—that is a metaphor.
We will publish a call for evidence for the review by the summer this year, and we hope we will receive responses from a range of authorities and stakeholders and, of course, from the noble Lord, Lord Dubs, so we can take on his views and expertise.
Lord Kennedy of Southwark
My Lords, I welcome the Minister’s statement and congratulate my noble friend Lord Dubs, who has been doggedly pursuing this issue for some time now. He produced a Private Member’s Bill and pursued this matter here, and we have a very good conclusion.
Lord Dubs
This is a very happy occasion when we are all in such agreement. I am most grateful to the Minister for what she said and for the commitment she entered into, which I think is pretty good. Everybody I have spoken to says it is pretty good and that we can move forward with it. I cannot guarantee that the Minister will be a headline in the Evening Standard, but she jolly well ought to be. I beg leave to withdraw the amendment.
Baroness Williams of Trafford
My Lords, I thank the noble Lords who have spoken on both sides of the argument. My noble friend Lord True and the noble Lord, Lord Tope, spoke about safeguarding some of the economic well-being of their areas. My noble friend Lord O’Shaughnessy demonstrated that this has been deeply beneficial to areas such as mine in Trafford, revitalising our local high streets and bringing office buildings back into use where once they stood empty. My noble friend Lady Scott talked about inappropriate use of permitted development rights for things such as building houses in industrial estates. As my noble friend Lord O’Shaughnessy said, we have Article 4 to implement in places where it is simply not appropriate to move from office to residential use.
As I outlined in Committee, the office to residential PDR is making a very important contribution to delivering the 1 million homes that we want by 2021, while making the best use of brownfield sites and reducing the pressure to build on greenfield land. Take-up of the temporary permitted development right has been very high, with more than 6,500 applications since April 2014, demonstrating the demand for such conversions. This has led to over 5,300 permissions for office to residential conversions.
Our data show that in 2014-15 we saw a 65% increase in the number of new homes created through change of use, and the office to residential permitted development right will have helped to deliver around 8,000 new homes. Data from the sector also indicate that the temporary right has delivered much-needed new homes to buy or rent, including in London and the south-east, where we continue to face a housing shortage. The British Council for Offices has estimated that, nationally, 7,600 dwellings have been delivered since May 2013. Evidence to date shows that the light-touch planning process has resulted in new homes being brought forward. The British Council for Offices notes that some of the developments would be unlikely to have come forward via a planning application and are therefore additional to the number of homes that would otherwise have been delivered.
I will now address the new clause proposed in my noble friend Lord True’s Amendment 116A, and speak first to subsection (c). I understand that the aim behind it is to compensate business tenants where property owners exercise their permitted development rights to change use from office to residential. However, this is not a planning issue.
The amendment is unnecessary as there are already adequate protections for business tenants under the Landlord and Tenant Act 1954. Under the general law, business tenants have security of tenure until their lease expires. On expiration, the tenant has important rights under Part II of the Landlord and Tenant Act 1954 to have a new lease at the market rent, unless he has explicitly opted out of these rights at the beginning of the tenancy. Section 30 of the Act specifies certain circumstances in which the tenant is not entitled to a new tenancy. These include where the landlord is able to demonstrate an intention to undertake substantial works at the premises, which could be where approval is secured under the permitted development right. Under these circumstances, the tenant would be entitled to compensation from the landlord under Section 37 of the Act. The compensation is set at the rate of one times the rateable value of the premises, or twice the rateable value if the same business has been in occupation for more than 14 years.
I now turn to subsections (a) and (b). We consider that the introduction of the PDR for change of use from office to residential has resulted in new homes that would not have been brought forward under a planning permission. We consider that imposing such additional requirements on developers is likely to undermine the contribution the right makes to the delivery of new homes which are so badly needed.
In relation to subsection (a) of the proposed new clause, local authorities are already able to charge a fee for prior approval applications for change of use. The fee is set at a level which reflects the light-touch approach for processing these applications, as only certain specific issues require approval. I hope that this provides reassurance that appropriate safeguards are already in place and I invite my noble friend to withdraw the amendment.
On Amendment 116B, as I agreed in Committee, I have since met my noble friend Lord True and the noble Lord, Lord Tope, to discuss their concerns about the impact of the office-to-residential right. I have also listened carefully to the debates both in Committee and on Report on this issue and recognise the concerns expressed by my noble friend and the noble Lords, Lord Kennedy and Lord Kerslake, about the loss of office space in some areas and the impact that it can have on local businesses.
I appreciate the strength of feeling in certain areas on this matter, but I cannot accept the amendment that would introduce this new clause into the Bill. The issues raised relate to specific areas, as I have already outlined. The amendment would apply nationally and would create uncertainty within the market. It would undermine the important role that the right plays in the supply of new homes. It would also have a negative effect on the growth of the development industry. The amendment is also unnecessary, as appropriate protections are already in place to meet local conditions.
The office market continues to evolve to meet the business community’s needs and respond to the right. Where it is necessary to protect the economic well-being of a specific area, local authorities can bring forward an Article 4 direction to remove the right and allow for consideration of a planning application. That is a fair and proportionate approach. But I recognise that my noble friend Lord True also has concerns about Article 4 directions. However, the process is straightforward and provides robust safeguards by allowing for local consultation on the scope of the direction before it comes into force.
I hope that this reassures noble Lords that while we understand their concerns about the impact of the right in specific parts of the country, there are appropriate existing safeguards. But while the Government’s position on this issue will not change and while I urge my noble friend not to press his amendment, I will undertake if he wishes to have further discussions on this matter. As always, I am very happy to meet him.
Lord Kennedy of Southwark
On Amendment 116A, we see these developments all around here in Westminster, with offices now being converted into very expensive homes. Why would it not be right for a planning authority to get somewhere near its full costs on this?
Baroness Williams of Trafford
My Lords, I am sorry. Could the noble Lord repeat that?
Lord Kennedy of Southwark
On Amendment 116A(a), we can see all around here many developments where offices have been converted into very expensive properties. Why would it not be reasonable for a local authority—in this case, Westminster—to cover a larger proportion of its costs in fees, considering what these properties are now selling for very close to this Palace?
Baroness Williams of Trafford
My Lords, I think that it is because it is not a planning consideration, so the tenant would be entitled to compensation from the landlord rather than the local authority.
“Local authorities and development control services
(1) A local planning authority may set a charging regime in relation to their development control services to allow for the cost of providing the development control service to be recouped.(2) Any such charging regime must be subject to consultation prior to implementation.”
Lord Kennedy of Southwark
My Lords, this amendment covers the issues previously discussed under Amendment 108. It enables local authorities to recover up to the full costs and no more in determining planning applications. Noble Lords who were not persuaded by Amendment 108 could give this amendment some further consideration, as it proposes not to go beyond full cost recovery.
My amendment would allow a more realistic fee level to be recovered from large-scale developments and differentiates between that and someone who wants to build an extension to their home, for example. I grew up in Southwark and in the north of the borough we have seen a boom in large-scale developments in recent years. A more realistic fee level would have made no difference to those developments. I now live in Lewisham and, again, we are seeing a large number of residential developments in Lewisham, Deptford, Catford and elsewhere in the borough. Again, I do not believe that a more realistic fee level would have made any difference whatever to the viability of those developments.
In responding to this short debate, I ask the Minister to address the point made during the debate on Amendment 108. I know we will come to this issue when we discuss further amendments on Monday, but I am worried that we could get a two-tier system whereby other providers are able to provide planning advice. I do not want a private provider to be able to charge a much larger fee, and a local authority to be limited as to what it can charge to do the same work. That would be totally wrong, and it would be very helpful if the noble Baroness assured us that that is not the case. It would be a very unfair situation for local authorities and completely wrong. With that, I beg to move.
Baroness Andrews
My Lords, we had a very good and thorough discussion on the recovery of full-cost fees on a previous amendment. I want to draw attention to a few statistics to reinforce the case that my noble friend made and to point out that the flaw in the present system is that you cannot get speedy, authoritative and consistent decision-making at local planning level if the expert workforce is being run down and starved of resources. I have just a few statistics that pick that up.
The audit committee reported in 2014 that planning departments were taking the brunt of funding cuts—a reduction, in real terms, of 46% across the planning and development budget between 2010 and 2014. These are horrendous figures in the context of cuts of 37% in local authorities as a whole. How much deeper have these cuts been since 2014? In expert areas such as archaeology and conservation officers, there has been a drop of a third in local authority staff. In Lancashire the entire archaeological team has disappeared. How the Government expect local authorities to deliver a speedy, efficient and good planning service with this level of cuts is absolutely beyond me. Therefore, the only answer to building the capacity of local authorities to do what the Government so desperately want them to do, and to deliver a speedier, more efficient planning system, is to build the capacity of local authorities themselves, because development control is the fundamental business of planning authorities. There is an urgent need to reinvest in local authority planning services. Full-cost fee recovery can contribute to that.
I have one question for the Minister. In the previous exchange, I was not quite sure whether she believed the figure published by the Local Government Association—that there is a shortfall of £450 million to local authorities because of the difference between the cost they have to pay and the fees they receive. She talked at great length about the vitality needed to enable local authorities to do their job, but she did not address the question of the reality of what is happening on the ground. There is an absolute, logical and fair case for recovering full-cost fees, and I hope she will respond positively to it.
Lord Porter of Spalding
My Lords, I speak in favour of the spirit of what the amendment is trying to achieve, but against it because of the way it is worded. No one from a local government background would believe that it is right that we are unable to collect enough fees to cover the cost of the service, and it is not right that local taxpayers are subsidising the development industry to the tune of about £150 million a year—£450 million over the last three years. But the amendment as worded could have a quite negative impact on some areas. If a fully staffed planning team received only 10 planning applications in a year, the brunt of those costs would fall on those 10 applicants. That cannot be right. There needs to be a way for central government to get away from setting fees at an inflationary uplift. As welcome as that will be, it will be insufficient to get anywhere near cost recovery.
Given that the Government propose to put private sector competition into the space of a public sector monopoly, there must be a way to increase fees that works for local government, the local taxpayer and the private sector. I still do not understand why we are dealing with these amendments separately from the amendment that opens the door for the private sector to compete. At that point the Government will be sure that the fees local government charge are proportionate for the service being delivered in their area, because if local government charges too much, clearly, the private sector will take all the work. We need to find a way of getting that done but, from my end of the telescope, this amendment still does not deliver what needs to be done. I would love to able to support somebody who is clever at writing an amendment in a way that I am not.
Again, the word “must” has been used for local government. People should not put “must” in anything. Local government likes “may”, not “must”.
Lord Kennedy of Southwark
Before the noble Lord sits down, I did put “may” in for the main part and then “must” for the consultation. I thought I was getting somewhere with the noble Lord. I think we should talk outside the Chamber—he may well be the right person to write this.
Lord Porter of Spalding
You should never have me write anything, because you will not be able to read it.
Baroness Williams of Trafford
I thank noble Lords for their comments and contributions. To respond to the noble Lord, I can confirm absolutely, for the avoidance of doubt, that planning authorities will not be able to charge one fee and private providers another. We do not intend to create two tiers within the planning system—it would be most undemocratic and unfair, generally.
The noble Baroness, Lady Andrews, asked about the £450 million disparity that the LGA found between costs and fees. I need to make the point that there will be differences between the efficiency and effectiveness of local authorities in delivering planning services. Some show that performance can be improved and costs reduced, and more should follow their lead. Authorities have done a phenomenal job in sharing services for many of their functions but have not moved quickly enough in doing so for planning services. I said that to the noble Baroness either earlier today or on Monday—the days have merged into one.
Amendment 116BA, as I said on a previous amendment, allows local authorities to go beyond cost recovery. We are absolutely clear that these services and other discretionary services should not exceed the cost of providing the service. I have been through the argument previously that what cost recovery means in practice, in terms of fee levels, varies from local authority to local authority. We want a highly efficient service, and there are real challenges up-front in doing this for some local authorities, but we want better-performing planning departments for better performance in terms of planning outcomes. I talked earlier about our proposals for tackling resource pressures in planning departments. I hope that noble Lords will not mind that I do not go through these again, and that with those words the noble Lord will feel able to withdraw the amendment.
Lord Kennedy of Southwark
My Lords, I thank all noble Lords for speaking in this short debate. My noble friend Lady Andrews highlighted the cuts that have fallen on local authority planning departments in recent years. I was pleased that the Minister was able to give us some reassurance on the issues. I am sure we will be discussing again on Monday the fees that can be charged by a local planning authority and those that can be charged by a private provider. That will be very welcome news for local government.
I thought I had written my amendment in such a way that it would not allow people to charge more than the costs involved, so clearly I am no better than the noble Lord, Lord Porter, at writing these amendments. Maybe we need to get together and we will get one right at some point. I certainly do not see my amendment as doing what the Minister says it does, so I am a bit disappointed in her response. I know it is late but I am going to test the opinion of the House.