Business and Planning Bill

Lord Lansley Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Tuesday 14th July 2020 Lords Chamber

Moved by

[Lord Lansley]

59: Clause 17, page 27, leave out lines 18 and 19 and insert—
“(i) beginning with 25 June 2020, and”Member’s explanatory statement
This will provide that where a relevant planning permission has a time limit for commencement of development between 25 June (when this Bill was introduced to Parliament) and 31 December 2020 , the time limit will be extended as provided for in subsection (2).

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[Lord Lansley (Con)]

My Lords, I should draw attention to my interest as chair of the Cambridgeshire Development Forum, as entered in the register. As other noble Lords have done, I express my thanks to my noble friends for their discussions following my speech at Second Reading and for the very helpful letter from my noble friend Lord Howe.

I confess that all 13 amendments in this group are mine, but they are to achieve two purposes. The first is to substitute June for April, so extending time limits on permissions and listed building consents. Clause 17 relates to planning permissions; Clause 18 relates to outline planning permissions; Clause 19 relates to listed building consents. In all three cases, the Government have given a three-month extension from December to the end of March. My amendments would take that from 1 April to 1 June. Nine of the amendments are to achieve that in relation to these three clauses. The other amendments, which I shall come to later, are to deal with the circumstances in which those planning permissions should be revived or extended where additional environmental approval has been sought and given.

I start with the question of adding two months to the proposed three months' extension. There is a balance to be struck, and I quite understand the thinking of my noble friend and the Government. They want to reflect the fact that there has been a delay—a serious interruption—to the delivery of the project pipeline for development; equally, they do not want to extend so far as to allow for such developments to be delayed when they could and should proceed. I completely understand that. From my point of view, this is not a probing amendment; it is my assessment of what a practical decision is in the light of all the circumstances.

As I mentioned on Second Reading, practical issues may have been lost sight of in substituting the three months lost—essentially, April, May and June—with three months gained: January, February and March. The most obvious, which I mentioned on Second Reading, is that the industry has lost three months of prime building season in the middle of late spring and early summer and is receiving, by way of compensation, time in the middle of winter. We do not know what seasonal effects January, February and March 2021 will have but if they were particularly inimical to development, it would mean quite a significant deficit in the opportunity for development. From my conversations with housebuilders it is not the case that on returning to site, generally in late June, they were able to do so on the basis of achieving full capacity. Many were starting at 50% capacity; those who I talked to only a week ago were generally at 80% capacity. The pipeline will have lost a further few weeks by the end of December. Adding that together, one might say “If not three months, perhaps four—or even five”. It depends on how one looks at it.

My noble friend Lord Howe has very helpfully said that in any case, all one needed to do is to implement a planning permission. He said: “Digging a trench or pegging out a road may suffice”. I have to tell him that I have looked into this and the courts have often taken a view about what commencement might be. Digging a trench might be sufficient; pegging out a road probably is not. The point is that neither takes account of two significant additional factors. First, when one commences development, often one also commences a legal obligation for community infrastructure levy, so significant costs may then arise. One does not commence a development simply by digging a trench, walking away and saying, “I’ve done what the planning permission requires”. That is not sufficient and, in the eyes of many developers, would be quite an unwise thing for them to do. Secondly, one cannot simply commence development until one has received the discharge of pre-commencement planning conditions.

I checked with the Greater Cambridge Shared Planning service and as of the beginning of last week, on 6 July, it began to look at applications received on 15 April for the discharge of pre-commencement planning conditions. That is a 10-week delay. Of course, discharge of conditions under these circumstances would generally take eight weeks, so there is an 18-week potential delay. When one begins to add these things together—they are not necessarily in series but may be concurrent—none the less it is far from obvious, in my view, that these particular three months at the beginning of next year are a sufficient addition to the time which developers need to compensate for the time they are losing in the course of 2020.

My point here is that my practical view was, “Let’s add two months”. In this respect, I shared the exact view—which I reflected in asking my noble friend some weeks ago whether he would add six months to planning permissions beyond the end of December—of the Home Builders Federation. It has welcomed what the Government are doing and is grateful for their bringing forward this legislation, but in fact asked for 1 July, not 1 April. I have not asked for 1 July; I have asked for 1 June. I think there is a practical answer somewhere beyond 1 April, in the light of all the circumstances.

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[Lord Greenhalgh]

I am grateful to my noble friend Lord Lansley for speaking to this group of amendments which relate to the extension of planning permissions and listed building consents. These amendments have been supported by my noble friend Lord Balfe. Let me begin by saying that this is a very unusual and challenging time for the development industry, and we recognise that many developers of residential and commercial buildings have had to pause projects.

First, I recognise my noble friend’s comment that the proposed extension for those permissions and consents due to lapse close to 31 December 2020 will represent an extension of only three months, and I take his point about the quality of those three months. However, where a planning permission is due to lapse earlier in the year, for example in September, it would benefit from an automatic extension of closer to seven months. This, we believe, is proportionate.

Secondly, we should be clear that these measures to extend planning permissions and listed building consents are intended to support developers to implement their permissions—that is, to make a start on site—as we know that many of them will have experienced disruptions or delays due to the pandemic. However, it need not take very extensive works to implement a planning permission, and we think it is reasonable to expect starts on site to take place by 1 April 2021. I note my noble friend’s points about the community infrastructure levy, but we have made provisions so that the payment can be deferred and I am sure we will see improvements with regard to the current delays in the discharge of pre-commencement planning conditions.

Finally, my noble friend will be aware that we have included powers to extend, by regulations, both the 31 December 2020 date and the 1 April 2021 date to allow more or longer extensions, should that become appropriate. I am happy once again to commit to my noble friend on the Floor of your Lordships’ House that I would be pleased to engage with him on this matter in the coming months as we better understand how the industry is recovering from the impacts of the pandemic.

My noble friend also spoke to Amendments 59, 62, 66 and 68 to Clauses 17 and 18 in relation to the scope of the additional environmental approval process. These amendments would shift the cut-off date for those permissions which require additional environmental approval in order to be extended to April 2021. This date is currently set at the date these provisions take effect, which is four weeks after Royal Assent. My noble friend’s amendment would shift this to 25 June 2020 to cover just planning permissions that have expired. He will understand that where planning permission has lapsed, an extension effectively reinstates the permission, thereby permitting something that otherwise would not be allowed to go ahead. So it is right in those circumstances, having regard to our environmental commitments and obligations, to check whether the existing environmental assessments are still up to date. However, it is important that these provisions capture not only permissions which have actually lapsed, but those which, while technically still extant as of now, in practice could not be implemented within their original time limit. That is why it is right that there is a short delay between this Bill achieving Royal Assent and the cut-off date when these provisions take effect.

Developers with a permission that has not yet expired, but which is due to do so before these provisions take effect, still have the option to implement their planning permissions now, if they can. This would avoid any need to apply for additional environmental approval. If they cannot, it is right that before an extension is granted, there should be a check on whether the requisite environmental assessments remain up to date. The process for doing so is not burdensome, is focused and would be free of charge for applicants.

I hope that with this assurance my noble friend will feel able to withdraw Amendment 59 and will not press the others in this group.

[Lord Lansley]

My Lords, I am very grateful to my noble friend Lord Balfe and the noble Baronesses, Lady Pinnock and Lady Wilcox, for their contributions to the debate and for their positive remarks. I am also grateful to the Minister for his response. He demonstrated that he is trying to work this through as a practical issue. There are powers in the Bill to change the dates for the extension later on by way of regulation. I will consider what he said in his reply before we think about this on Report. It seems to me that if we recognise the strength of the case we should perhaps reflect it in the Bill to some extent, but there may be other and better ways of achieving that than in my amendments to date. I beg leave to withdraw the amendment.

Amendment 59 withdrawn.