Levelling-up and Regeneration Bill

Lord Lansley Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

Moved by

[Lord Lansley]

193: Schedule 7, page 347, line 17, at end insert—
“(3A) The local plan must identify the strategic priorities of the local planning authority for meeting housing needs and for addressing the economic, social and environmental issues affecting the authority’s area.”Member's explanatory statement
This amendment would require plan-making to include the strategic priorities of the authority.

[Lord Lansley (Con)]

My Lords, I reiterate at the outset that I have a registered interest as chair of the Cambridgeshire Development Forum.

Amendments 193 and 194 introduce this group. We are discussing the structure of plan-making in Schedule 7, which replaces Sections 15 to 37 of the Planning and Compulsory Purchase Act 2004 as amended. With Amendment 193, I wanted to take the opportunity to explore some interesting changes—I do not know how significant they are and that is what I hope we can determine—between what is to be found in the Planning and Compulsory Purchase Act as it stands and what is proposed in Schedule 7.

The amendment would require that the strategic priorities of an authority for development in its area be identified. The key word here is “strategic”. Section 19(1B) of the Planning and Compulsory Purchase Act as it stands says:

“Each local planning authority must identify the strategic priorities for the development and use of land in the authority’s area”,


and it continues in the next subsection:

“Policies to address those priorities must be set out in the local planning authority’s development plan”.


That legislation as it stands leads directly into the National Planning Policy Framework. We will talk about the relationship between the NPPF and the Bill on a number of occasions today. In this instance, when the Government published the consultation draft of the NPPF in December, they retained in it the distinction between strategic priorities and policies and non-strategic policies. For example, paragraph 17 of the consultation draft on behalf of the Government—although we have not seen the final version—states:

“The development plan must include strategic policies to address each local planning authority’s priorities for the development and use of land in its area”.


Paragraph 21 states:

“Plans should make explicit which policies are strategic policies”.


The footnote to paragraph 21 states:

“Where a single local plan is prepared the non-strategic policies should be clearly distinguished from the strategic policies”.


So my starting point is that the NPPF distinguishes between strategic and non-strategic policies but the Bill does not—it just refers to “policies”. New Section 15C(3) in Schedule 7 states:

“The local plan must set out policies of the local planning authority (however expressed) in relation to the amount, type and location of, and timetable for, development in the local planning authority’s area”.


My purpose in Amendment 193 is essentially to ask the Minister the following questions. Why has the distinction between strategic policies and priorities and non-strategic policies been removed from the Bill? That being the case, will the National Planning Policy Framework be redrafted and revised to remove that distinction? My contention is that the distinction is important, not least because we are looking for the local plan to be strategic in nature rather than bogged down in detail.

Strategic policies are needed if the local plan is to look at these 15 years ahead. As the NPPF stresses, where large settlements and new settlements are concerned, this may be at least 30 years ahead, and strategic policies are required for that. That raises the question: why is the requirement for strategic priorities and policies being removed from the statute on which the NPPF should be based? Which way is it going to work? Is the NPPF going to change, or should we not adopt Amendment 193 and include the word “strategic” in the requirements on local planning authorities?

Amendment 194 is a little simpler. It would insert into the requirements for local authorities, when presenting their priorities, a requirement to recognise the importance of economic development. The NPPF as it stands does that but, when it talks about what is to be put into plans, it has housing, employment, leisure and so on but does not specify how important it is that the economic objective of sustainable development be accompanied by strategic policies to identify the need not just for employment sites but for businesses to grow, and the potential for inward investment into an authority’s area.

That is important and is often significantly overlooked in plan-making. To that extent, too great and exclusive attention is paid—not that it is not important—to the allocation of sites for residential and housing development, when often the starting point for whether housing is required in an area is its rate of employment growth. Determining the allocation and spatial strategy for the economy and employment in an area is at least as important as the requirement for housing. Amendment 194 would bring that firmly into the plan-making process as a strategic priority. I beg to move Amendment 193.

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[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendments 193 and 194 in the name of my noble friend, Lord Lansley, seek to require plan-making to include the strategic priorities of the authority and to ensure that a local plan can include policies relating to achieving sustainable economic growth. The Government want the planning system to be truly plan-led, to give communities more certainty.

The Bill provides clear requirements for what future local plans must include. This replaces the complex existing framework, which includes the requirement at Section 19(1B) of the Planning and Compulsory Purchase Act 2004 for authorities to

“identify the strategic priorities for the development and use of land”

in their areas. There is nothing in the Bill to stop authorities including strategic priorities and policies in future local plans. Indeed, our recently published consultation on implementing our plan-making reforms proposes that plans will need to contain a locally distinct vision that will anchor them, provide strategic direction for the underpinning policies and set out measurable outcomes for the plan period. Likewise, on the specific subject of sustainable economic growth, we are retaining the current legal requirement in Section 39 of the Planning and Compulsory Purchase Act 2004 for authorities to prepare plans with the objective of contributing to the achievement of sustainable development.

My noble friend Lord Lansley asked why the distinction between strategic and non-strategic was removed and whether the NPPF will be redrafted to reflect this. That distinction derives from previous legislation on plans, which the Bill will replace with clearer requirements to identify the scale and nature of development needed in an area. The NPPF will be updated to reflect the legislation, subject to the Bill gaining Royal Assent. In light of this, I hope that my noble friend will feel able not to press his amendment.

I turn now to Amendment 193A in the name of the noble Lord, Lord Best. This amendment seeks to require local plans to plan for enough social-rented housing to eliminate homelessness in the area. National planning policy is clear that local plans should, as a minimum, provide for objectively assessed needs for housing. In doing so, local authorities should assess the size, type and tenure of housing needed for different groups in the community, including those who require affordable housing. This should then be reflected in their planning policies. The Government are committed to delivering more homes for social rent, with a large number of new homes from the £11.5 billion affordable homes programme to be for social rent. We are also carefully considering the consultation responses to our proposal to amend national planning policy to make clear that local planning authorities should give greater importance in planning for social rent homes.

Tackling homelessness and rough sleeping is a key priority for this Government. That is why we will be spending more than £2 billion on homelessness and rough sleeping over the next three years. The Homelessness Reduction Act, which the noble Lord, Lord Best, was so influential in bringing forward, is the most ambitious reform to homelessness legislation in decades. Since it came into force in 2018, more than 640,000 households have been prevented from becoming homeless or supported into settled accommodation. We know that the causes of homelessness are complex and are driven by a range of factors, both personal and structural, and I fear that creating a link between local plans and homelessness reduction would add more complexity.

The noble Lord, Lord Best, asked why we cannot recognise housing need in local plans, particularly homelessness and affordable housing. The Bill already requires that plans set out policies for the amount, type and location of the development needed. I feel that it is a local issue, and the best way to ensure that we get the amount of particular housing needed in a particular area is for it to be put into local plans by local councils talking to local people. The noble Baroness, Lady Thornhill, asked how local needs are going to be assessed in the future and how they will be defined. This is another matter that will be considered when we update national policy. We need flexibility to address changes in circumstances, which is why policy is the best approach to this, rather than looking for definitions in legislation.

I move now to Amendment 199 in the name of the noble Lord, Lord Berkeley, and my noble friend Lord Young of Cookham. I thank the noble Lords for their amendment on this important matter. We recognise the importance of walking and cycling, and the role the planning system plays in enabling the infrastructure which supports active forms of travel. National planning policies must be considered by local authorities when preparing a development plan and are a material consideration in planning decisions. The Bill does not alter this principle and would strengthen the importance of those national policies which relate to decision-making. The existing National Planning Policy Framework is clear that transport issues, including opportunities to promote walking and cycling, should be considered from the earliest stages of plan-making and when considering development proposals. Proposals in walking and cycling plans are also capable of being material considerations in dealing with planning applications, whether or not they are embedded in local plans. Indeed, the decision-maker must take all material considerations into account, so there is no need to make additional provision in law as this amendment proposes.

The Government are delivering updates to the Manual for Streets guidance to encourage a more holistic approach to street design which assigns higher priorities to the needs of pedestrians, cyclists and public transport. We are also working closely with colleagues in the Department for Transport to ensure local transport plans are better aligned with the wider development plan.

The noble Lord, Lord Young, asked if the NPPF policy requiring a high bar to refuse proposals on transport grounds will be changed. As he knows, we have committed to a full review of the NPPF, part of which will need to look at all the aspects of policy, including how best to provide for walking and cycling.

I move now to government Amendments 196C, 196D, 201B, 201C and 201D. These are consequential on Clause 91 and Schedule 7 to the Bill which, when commenced, will introduce a new development plans system. They amend and supplement consequential amendments to Schedule A1 to the Planning and Compulsory Purchase Act 2004 made by Schedule 4 to the Bill relating to the creation of combined county authorities. The Schedule 4 amendments will mean that combined county authorities will be in the same position as the Mayor of London, county councils and combined authorities are currently in relation to the ability of the Secretary of State to invite those bodies to take over plan-making where a constituent planning authority is failing in its plan-making activities. The noble Lord, Lord Stunell, asked what will happen if they do not want to do so. I do not think we can force them, but there are a couple of things we can do if local authorities are not producing local plans in a timely manner or at all. For example, the Secretary of State will be a commissioner who could take over the production of the plans, or the local secretary of state could take that into his own hands. We are not going to force them, but it will be an offer they can make in order that their county combined authorities have the correct plans in place to shape their communities in the correct way.

In light of the new plan-making system being introduced by the Bill, a number of consequential amendments to Schedule A1 to the 2004 Act are already provided for by Schedule 8 to the Bill. Broadly speaking, they will update Schedule A1 to ensure that the provisions can operate within the new plan-making system. As such, in light of these wider reforms, these further amendments are needed to ensure that the new provisions which Schedule 4 to the Bill will insert into Schedule A1 are updated accordingly when the new plan-making system comes into effect. I hope noble Lords will support these minor and consequential changes.

Finally, the Bill ensures that neighbourhood plans will continue to play an important role in the planning system and encourage more people to participate in neighbourhood planning. For example, it will mean that future decisions on planning applications will be able to depart from plans, including neighbourhood plans, only if there are strong reasons to do so. While the Bill retains the existing framework of powers for neighbourhood planning, it will also provide more clarity on the scope of neighbourhood plans alongside other types of development plan. It amends the list of basic conditions set out in Schedule 4B to the Town and Country Planning Act 1990 which new neighbourhood development plans and orders must meet before they can be brought into force.

Amendment 197 would make corresponding changes to the basic conditions set out in paragraph 11(2) of Schedule A2 to the Planning and Compulsory Purchase Act 2004 so that the same conditions apply when an existing neighbourhood development plan is being modified. These changes are necessary to ensure that these neighbourhood plans receive consistent treatment.

[Lord Lansley (Con)]

I am most grateful to all noble Lords who participated in this rather important debate. From my point of view, in considering whether strategic policies should be distinguished from non-strategic policies in plan-making, I asked my noble friend a question and I got a reply. It is an interesting reply because by simply asserting that the local plan must include, in effect, all policies, my noble friend is saying that that is clearer than the present structure which distinguishes between strategic policies and non-strategic policies.

Noble Lords may say that we are all dancing on the head of a pin—I do not think so. The noble Baroness, Lady Taylor of Stevenage, made an extremely good point: identifying strategic priorities in a local planning authority’s local plan is a key component of creating spatial development strategies in a broader area. That would be extremely helpful.

None the less, what my noble friend has told me is going to be an interesting conclusion for people to draw. We are now told that the consultation draft of the National Planning Policy Framework, which was published on 22 December following the passage of this Bill in the other place, did not take account of what is in the Bill. This is rather interesting. It means that if we change the Bill, we can change the NPPF—which, from the point of view of my noble friend’s and other amendments, is a very helpful thought that we might take up. I do not think that the revisions that will follow to the NPPF will be as wide ranging as my noble friend implied, because that would mean that they would do away with much of what is written presently into the chapter on plan-making.

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[Lord Lansley (Con)]

My Lords, I am grateful to my noble friend Lord Young and the noble Lord, Lord Best —he is also my noble friend in this context—for introducing Amendment 195 so very well.

I want to add my threepennyworth in relation to not only Amendment 195 but Amendment 196; one might think of them as a package. They would require local planning authorities to meet or exceed the Government’s housing target—in so far as the Government have a housing target; we have debated the figure of 300,000, which is what the Government tell us their target is, but it could of course be different if they chose a different target because of their assessment of the demographic and other requirements—and to do this by reference to the standard method. I emphasise that this means whatever standard method is applicable at the time. Personally, I do not regard our current standard method as fit for purpose. There will need to be change. I have said before—let me repeat it briefly—that the relationship between the standard method process and the prospective increases in employment in an area should assume a greater weight in relation to the objectively assessed housing need.

These amendments are a package. Remember, in addition to Amendment 195, which we are debating first, Amendment 196 would require local planning authorities to have regard to the housing target or a standard method respectively. Of course, if Amendment 195 were to go to the Commons, Amendment 196 would go with it as a consequential amendment. The House of Commons would then have an opportunity to consider the questions of whether local planning authorities should have regard to the Government’s target and standard method—that is a bit of a no-brainer; of course they should—and of whether, in addition, they should be required to meet or exceed the resulting figure of objectively assessed housing need for an area. This is the debate that the House of Commons needs to have.

There are two groups of people who should vote for Amendments 195 and 196. There are those who just agree with the policy; I am among them. My noble friends have well set out the policy objective, which fundamentally comes down to this: if a Government have a target, they need to have a mechanism for delivering it. I have had these conversations, for which I am grateful, with the Housing Minister, my noble friend and the Secretary of State. Unfortunately, the Secretary of State in particular—I love him dearly—is trying to run with the hare and hunt with the hounds. He is trying to give local planning authorities, in the minds of a minority of Conservative Members in the other place—I emphasise that it is not a majority but a minority—the freedom to have a different method and to think, “It’s a starting point but we can go south from this instead of north”. It is an opportunity for them to say, “We’ve got green belt, areas of natural beauty, sites of special scientific interest and sensitive areas. We don’t have to have the houses; they can all be somewhere else”.

In some cases, that will be true. Let me pick a place at random. If you were in Mid Bedfordshire and you knew that Milton Keynes, Bedford and Luton wanted development—and, indeed, Tempsford, which is on the new east-west rail link and faces the possibility of taking on a large new settlement of 20,000 homes—you might well conclude that, in Mid Bedfordshire, taking account of the development in all the neighbouring areas, you do not need much development. That would be perfectly reasonable. Actually, the standard method and the way in which the guidance is constructed would allow that to happen because that is precisely what joint spatial development strategies should deliver in an area such as Bedfordshire.

As I say, my right honourable friend the Secretary of State wants those who feel that they have relaxed all these requirements to feel comfortable with that, yet he wants to maintain his target. When challenged, he says, “Well, there’s still an objectively assessed housing need and, if people do not meet it and do not show that they are going to meet that housing requirement, their plans will not be sound”. I have to say, this is not the way in which to conduct the planning system, whereby local planning authorities produce plans and inspectors throw them out. That way lies madness. What we need is for local planning authorities to have the kind of guidance that enables them to produce in the first instance sound plans that are the basis on which local people can rely. That is what we are aiming for: a plan-led system. However, what the Government are moving towards is not a locally plan-led system. In my view, we need to change this.

That is the first set of people who should vote for this amendment, in this case because it is the right the policy. There is a second group of people for whom there is another, different argument. It goes, “How is this supposed to work?” This Bill was in the other place last year. It completed its Third Reading on 13 December. As far as I can tell, there was effectively no substantive debate on the provisions in this Bill relating to the housing target and standard method. Nine days after the Bill completed its passage through the other place, the Government published their consultation draft of the National Planning Policy Framework. In it, they relaxed the housing delivery test; they made the housing targets and standard method an advisory starting point, in effect; and they allowed local planning authorities to have an alternative approach.

As my noble friend Lord Young demonstrated so clearly, all of that added up to local planning authorities thinking that they had been let off. However, none of that was in the Bill. It was not debated by the House. It was not voted on by the House of Commons in any fashion. Today, if we do not send Amendments 195 and 196 to the other place, no such debate will take place in the House of Commons. The issue will go through by default. I agree with my noble friend: the world has moved on and sentiment has changed. He used to be a Chief Whip; I used to run national election campaigns. I used to look carefully at the salience of issues. The salience of housing as an issue has risen and continues to rise. I must advise my Front Bench that the salience of housing as an issue is rising not because we are building too many houses but because we are building too few. The Government may argue, “Well, they’re just in the wrong place”. There are ways of dealing with that but we do need more, which is what the standard method is intended to help us achieve.

We are having this debate today because these amendments are here on Report. If we do not send them down to the other place, the debate will not take place in the Commons. I know that there are colleagues on our Benches in another place who want to have this debate. They think that the Bill needs to show what Parliament thinks about housing targets—the standard method—and how an objectively assessed housing need should be established, and by whom. We need to give them that opportunity. I encourage noble Lords, in looking at these amendments, to realise that this is about not just the policy but the question of whether the Commons should have a chance to look at this matter. I do not mean making them think again, which is our conventional constitutional job; in this case, I mean them looking at this issue for the first time. If we do not send these amendments back, they will not even look at it a first time. We need to give them that opportunity.

I hope that noble Lords will support Amendment 195 on that basis.

[Baroness Taylor of Stevenage (Lab)]

I am grateful to noble Lords who have spoken so eloquently on this subject already. Amendment 200, in the name of my noble friend Lady Hayman, recognises the need to reinstate the provision for housing targets through the NPPF and associated guidance, and through the housing delivery test, which, I agree with noble Lords who have spoken already, is incredibly important. Similarly, Amendment 195, in the name of the noble Lords, Lord Lansley, Lord Young and Lord Best, and my noble friend Lady Hayman, and Amendment 196, in the names of noble Lords, Lord Lansley and Lord Young, see the essential part that local plans have to play in the delivery of housing need. It is, as the noble Lord, Lord Young, said—rightly, in my view—one of the most important amendments to the Bill that we have discussed on Report.

The much-respected organisation Shelter reports that there are 1.4 million fewer households in social housing than there were in 1980. Combined with excessive house prices making homes unaffordable, demand has been shunted into the private rental sector, where supply has been too slow to meet needs. That means above-inflation increases in rents.

On the affordable homes programme, the National Audit Office reports that there is a 32,000 shortfall in the Government’s original targets for building affordable homes. It goes on to say that there is a high risk of failing to meet targets on supported homes and homes in rural areas. Progress will be further confounded by double-digit inflation, soaring costs of materials and supply disruption, yet the Government seem to have no clue how to mitigate those factors, and in those circumstances the decision to scrap housing targets last December seems even more bizarre.

The National Audit Office is not the only one with concerns about the delivery of the programme. In December last year, the Public Accounts Committee outlined that DLUHC

“does not seem to have a grasp on the considerable risks to achieving even this lower number of homes, including construction costs inflation running at 15-30% in and around London”,

although that is not far off what it is in the rest of the country.

We had extensive debates about the housing crisis during Committee on this Bill, but there was nothing in the Minister's responses to reassure us that the vague promises to deliver 300,000 homes a year by the mid-2020s would feed through into the planning process—points made very clearly by noble Lords who have already spoken. I do not need to point out to your Lordships’ House that we are just 18 months away from that deadline and the target has never been met. It is being missed by almost 100,000 homes a year, and more in some years. If they are not in the planning process, what chance is there of them being delivered? According to one estimate commissioned by the National Housing Federation and Crisis from Heriot-Watt University, the actual number needed is around 340,000 new homes in England each year, of which 145,000 should be affordable.

Let us consider the latest figures from the National House Building Council. The number of new homes registered in quarter 2 in 2023 was 42% down on 2022. The number of new homes registered in the private sector in quarter 2 in 2023 was 51% down on 2022. The number of new homes registered in the rental and affordable sector was down 14% in quarter 2 2023—declines across most regions compared to the same quarter last year, with the north-west experiencing the sharpest decline of 67%, followed by the east of England at 56% and the West Midlands at 54%. Only London and Wales bucked this trend.

The consequences of not delivering the right number of homes of the right tenures that people actually need are devastating. Those of us who are councillors or have been councillors all know that our inboxes, surgeries and voicemails are full of families with horrible experiences of overcrowding, temporary and emergency housing, private rented homes that are too expensive for family budgets and insecure resulting in constant moves, more young people having to live with their parents for longer, impaired labour mobility, which the noble Lord, Lord Lansley, mentioned and which makes it harder for businesses to recruit staff, and increased levels of homelessness. All this is stacking up devastating future consequences for the families concerned, and no doubt a dramatic impact on public funding as the health, education, social and employment results of this work down the generations.

There is increased focus on addressing affordability as distinct from supply—subjects that we discussed in the earlier group. In the foreword to a 2017 Institute for Public Policy Research report, Sir Michael Lyons said:

“We would stress that it is not just the number built but also the balance of tenures and affordability which need to be thought through for an effective housing strategy”.


With local authorities charged with the responsibility for ensuring that their local plans drive economic development in their areas, we simply cannot afford to overlook the place that housing development plays in local economies.

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[Lord Cromwell (CB)]

My Lords, I have a much less eloquent and much less exciting question to the proponents of Amendment 195, and certainly no fairy dust. If you are linking national targets to the local plan, what happens when national targets change during the five-year plan period? Does the plan have to be rewritten, do parts of it have to be rewritten, or do you have to wait until the end of the period and then apply the new target? It is a purely technical question and, as I say, much less exciting than some of the material we have just heard, but I would be grateful if the noble Lord, Lord Lansley, could help me with that.

[Lord Lansley (Con)]

I know that we are on Report but in response to that, it is exactly the structure that we have seen before. Essentially, in the five-year period between one local plan and the review of that plan, clearly, the housing delivery test is applied to what is adopted in that plan in the first instance. When it is reviewed after five years then clearly, as the amendment would say, the local plan must then be reviewed, taking account of the Government’s targets and standard method as applicable at that time.

[Baroness Pinnock (LD)]

My Lords, the noble Lord, Lord Young of Cookham, was absolutely right when he introduced his amendment in saying that this is the most important part of the Bill and is at the heart of the housing debate we have been having. I am very fortunate to be following the noble Lord, Lord Deben, who has given this whole debate a new dimension and a new focus for our thoughts, on whether we should be fixated on numbers or considering other elements of housing provision.

There is complete agreement across the House and support for building the homes that people need and the country needs. It means building homes in all parts of our country. I agree with the argument made by the noble Lord, Lord Young, about how we will provide the homes that folk need, and the analysis of the noble Baroness, Lady Taylor of Stevenage, on how vital it is that homes be provided for social rent so that families can have a stable background, and with a housing cost that they can meet within their tight family budgets. Like her, I am a councillor, and I am saddened by the number of families where I live who are pushed into renting in the private housing sector on short-term lets and every six months are having to post on Facebook, “Is there a home to rent in this locality at this price with this number of bedrooms, so that I don’t have to move schools for my children?” That is not the sort of country we want to create, in my opinion; we ought to be providing stable homes for people whose incomes restrict their housing options to homes for social rent.