Neighbourhood Planning Bill (Second sitting) Debate

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Committee Debate: 2nd sitting: House of Commons
Tuesday 18th October 2016

(7 years, 6 months ago)

Public Bill Committees
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Helen Hayes Portrait Helen Hayes (Dulwich and West Norwood) (Lab)
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Q May I have your views on the availability and level of resources to support communities that want to undertake neighbourhood planning? What more could be done to enable and encourage neighbourhood planning in more deprived communities and in areas of high housing need, for example, where there are voices that might not be heard in the planning process, but that might stand to benefit from the neighbourhood planning process?

Ruth Reed: I personally believe that there should be a proactive role for local authorities to instigate and identify neighbourhoods, and put in train a process. There should also be an opportunity to financially enable not only the technical aspects of planning, but—on behalf of the Royal Institute of British Architects—to provide design capacity to enable them to input well-worded design policies, and even design codes so that individual neighbourhoods can give expression to the kind of development that they would like to see, and to make it real to them. We believe that there may now be financial provision for this. One of the problems in planning is that it is a paper, two-dimensional base exercise. Sometimes you need people like architects to make it real and three-dimensional and to be able to explain what it would look like, using models or digital models.

Jonathan Owen: The pump-priming funding provided by the Government to support neighbourhood plan development has been an element that has encouraged parish councils to get involved, and it has driven neighbourhood planning of the 2,000 plans that have been produced. Parishes have led 90% of them, so they are embracing that opportunity, and I would like that to continue. The element in the Bill requiring planning authorities to identify the kind of advice that they would provide to groups and draw up neighbourhood plans is helpful. Where it falls a bit short is where it does not set out what is required or expected by the local planning authority.

We would like to see something more formal by way of either a statutory memorandum of understanding or a code of practice relating to what might be expected of the local planning authority in terms of helping with community involvement, helping them to access the principal authority website to do consultation work on it and that kind of thing, rather than just a basic entitlement. So it would be a mix of hard cash and softer things that could be provided by the planning authority. I know that would cost them money, and there was a good debate this morning about planning authority resources.

Lord Mann Portrait John Mann (Bassetlaw) (Lab)
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Q Prince Charles’s Foundation for Building Community did the groundwork in my area to self-define an urban area around a historic church as a community. It is a coherent community, and it is a community that has not been defined as such for 300 to 400 years. In your position, would you say that there was far more scope for this? Imagine if it had been done for the St Paul’s neighbourhood plan 40 years ago. Things might be rather different. Do you see great scope in this, and do you see scope for your organisation in prompting this kind of thinking?

Ruth Reed: I think we have locally active members who have been engaged in the first phase of neighbourhood plans. It is not core to architects to bring forward planning initiatives. There is no reason why certain individuals should not get involved, but it is not something that the RIBA would do, since the RIBA exists to promote architecture rather than enable communities to deliver local plans. There are groups aligned to the RIBA, including the Design Council, the Commission for Architecture and the Built Environment and the Architecture Centre Network to put design capacity into local authorities. The RIBA would be involved in initiatives in this kind of area to provide resources to local groups.

Lord Mann Portrait John Mann
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Q Some would say great architecture defines communities and I hope you will give further thought as to how you might inspire people, particularly in urban areas and around our great cathedrals and other great buildings. Most of your member organisations were busy consulting vast amounts of local people over local plans, and then the Government changed the goalposts in March 2013. How many local plans have had to be redone because of the requirement to consult neighbouring authorities?

Jonathan Owen: I don’t have the answer to that. Two thousand neighbourhood plans have been prepared by our parish and town councils—

Lord Mann Portrait John Mann
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No, not neighbourhood plans; local plans.

Jonathan Owen: I am not able to answer about local plans.

Lord Mann Portrait John Mann
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There must be a significant number, because councils like mine that had had all the consultation were informed that they had to start again entirely from scratch, which seems to me to be quite a way of delaying house building—albeit inadvertently—by the coalition Government.

Ruth Reed: I think stability in the planning system is to be welcomed, because it gives confidence to developers and other people bringing forth developments that they will get planning. That is why it is important that local plans are in place, and it is very important that they have adequate provision for housing land in particular. The stability we have had since 2012 has been quite welcome.

Lord Mann Portrait John Mann
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Q The stability we have had? There has been no stability in all those councils that had to abandon their local plans—there is no plan there, so in fact there has been instability. Dr Owen, have there not been cases where small district councils, with the risk of adverse costs should they lose at appeal, have felt obliged to pass things that they do not want and their local communities vociferously do not want for fear of risking a quarter of a million pounds in costs from their budget? Does that sound familiar?

Jonathan Owen: I am sure there are examples of that, but from a parish perspective I guess that also introduces uncertainty into those neighbourhood plans themselves. We have had plenty of examples of where those neighbourhood plans have had to be redone, revised or tossed aside. In the pack of papers we sent in by way of submission, we quoted Haddenham parish council, which gave evidence to an all-party parliamentary group last week mapping out the enthusiasm of the people who drew up that neighbourhood plan. They got experts involved from within the community and produced a really great plan, but within six months it got set aside through a judicial review.

The representative from that parish came here and was deeply disappointed that all that hard work and effort had come to naught. He could not see how he would be able to engage his local residents or his community in shaping such a plan again. That is why we need some certainty, clarity and credibility around the whole system. Hopefully the Bill will help address that.

Lord Mann Portrait John Mann
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Q Indeed. My own parish council had exactly the same experience. Vast numbers participated. A community plan was drawn up with huge engagement. It was environmentally sound and very forward-thinking on green technologies. Architecture was built into it, with what the new housing should look like to fit in with the feel and history of previous architecture, but that was overturned because of the five-year housing supply. Someone wants to build something that does not fit in at all, and that was not agreed by anyone, because someone in Whitehall says, “You’ve got to have this number of houses.” Will that inspire more neighbourhoods to have plans, or will that mean there will be even more cynicism about the planning system?

Jonathan Owen: Well, I think you are right—cynicism is a very real risk. That is why we need to ensure that we build a system where the role of neighbourhood plans is clearly spelled out and we are not raising expectations unreasonably, so that, together with local plans, they provide a really robust framework to support communities to have control over their areas and get the right kind of development.

Lord Mann Portrait John Mann
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Q The evidence, overwhelmingly, is that where there is a neighbourhood plan that increases the potential housing supply through land allocation, that housing will be built and will be built quickly. However, there is a bit of a time lag in proving that in huge numbers. Do you intend to keep providing that information on how successful neighbourhood plans have been in bringing forward new housing? Would that not therefore strengthen the argument that where there is a neighbourhood plan that has been formally adopted by one of your members in district council, after a referendum and a council vote, that should be the plan stuck to by everybody?

Jonathan Owen: We will certainly showcase those examples. Government research shows that something like 10% additional housing is provided by neighbourhood plans. I am particularly pleased that Newport Pagnell, one of our larger town councils, won an award from Planning magazine for the quality of its neighbourhood plan, which, among other things, provided for 30% more housing than was set out in the local plan.

We believe—you would expect us to say this—that parishes can really drive forward neighbourhood planning, and can set aside the outdated nimby view of parishes and build communities that have housing for local residents and others, provided in a way that has infrastructure and community support. The key thing is to make sure that people’s enthusiasm for that is not set aside because the plans are set aside or overturned on appeal or whatever.

Lord Mann Portrait John Mann
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Q Indeed. With more than 20 local plans either agreed or proceeding in my constituency, every single one brings forward new housing—more than any plan previously. Every single community is willing to have housing, but wants to have a great say on what kind of housing—what shape, what design—and where it should be. Seing as so many of them are in beautiful parishes such as the village where I live, is there not a danger that one part of society is going to benefit from this whereas in more deprived communities, in urban areas, there is the same desire for local control over neighbourhoods, but it requires a bit more imagination to create communities sufficiently robustly small to carry out this kind of planning? Should we not be giving far more incentive, encouragement and expert advice to those communities, on the basis that all politics is local as long as you are prepared to trust local people?

None Portrait The Chair
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In 10 seconds, please.

Ruth Reed: I think we have already said that we would support the proactive work by local authorities in identifying communities and bringing forward neighbourhood plans in more deprived areas.

Jonathan Owen: And parish councils, of course, are increasingly being set up in urban areas these days. Sutton Coldfield, Swindon and many other places are setting them up, so hopefully, with a bit of luck, we will see more parish councils in those urban areas helping those deprived communities.

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Rebecca Pow Portrait Rebecca Pow
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Q If this was made very clear, perhaps with the guidance of the Bill, would that encourage communities to be keener to have development?

Matt Thomson: There is already evidence that demonstrates that as soon as communities start considering about their development needs, even when they start off from a very nimby perspective, they think, “We are really worried about development that is going to come and destroy our village,” or whatever, and then they all sit down together and start talking about it. They then realise that there is a development need: the neighbour’s children need somewhere to live, there is a school that is threatened with closure or a shop that is closing down and so on, and people start to recognise the needs that they have. But again, because they are the local people and they know their area, they are best positioned to resolve the potential conflict between growth and conservation.

Carole Reilly: There is a wide interpretation of environmental issues. We talk about coding on houses and new developments having to reach certain codes, but neighbourhood planners are the best people to understand their area and to build into it those things that make places permeable—things that make you able to walk to your shop, and not have a development that faces out in which you get in your car and drive to the mini-supermarket.

We do see lots of neighbourhood plans that are coming up with environmental policies, and they are very interesting. They have policies around walkability and building cycle paths. I think that is core to building communities; I do not think they are separated.

Lord Mann Portrait John Mann
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Q On that point, before you spoke, Ms Reilly, I wrote down safe walk routes, including school routes, and road design and layout. Are there sufficient powers in neighbourhood planning in relation to those issues, or is that merely illusory? Separately, Mr Thomson, in relation to neighbourhood plans that specify explicit preference for forms of energy that should be used within the neighbourhood and state that preference should be given only to housing that uses those forms of energy—in other words, plans that define what the energy requirements should be and how they should and perhaps should not be delivered—is there more scope for that? Are the powers there?

Carole Reilly: I think there is more scope for it. One of the things we see time and again in neighbourhood planning is protecting green spaces. There is a balance between what is a land use planning policy and what is something that has actually drawn people to the table in the first place but is not a land use planning policy, and is then appendicised in a neighbourhood plan and therefore does not form part of a statutory document. These things always have to be dealt with on a case-by-case basis, but there are loads of examples of neighbourhood plans that have protected green space and encouraged cycle paths, and there are other things that are more tangential that have not.

On the issue that was Matt’s answer about environmental energy use, the key question will be about viability. One of our technical support packages is around viability. We see neighbourhood planning groups being increasingly interested in site allocations, understanding the strategic environmental assessment and, on top of that, looking at the viability of a site. Neighbourhood planning groups will look at those sites that are not interesting to the volume house builders—they will look at a site that might have four plots on it. We run a programme for community-led housing in locality and we see these inspirational community organisations that think, “Actually, we need something for old people and we want to build it here,” in stuff that would be completely overlooked. I think it is not just about energy; it is about understanding those areas that would be distressed areas forever and understanding them within their viability in terms of using different sources of energy.

Rupa Huq Portrait Dr Rupa Huq (Ealing Central and Acton) (Lab)
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Q Carole Reilly, I think you said that the five-year life spans of neighbourhood plans do not encourage long-term thinking, if I understood you correctly.

Carole Reilly: For neighbourhood forums. A neighbourhood plan is the length you determine it to be.

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Roberta Blackman-Woods Portrait Dr Blackman-Woods
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Q Those were very interesting responses, but they did not actually address my question, which was, are the provisions in the Bill likely to bring more land forward for development and speed up the delivery of more homes, or are they too much at the margins to make any real difference? In which case, should we have a much bigger review of CPO to see whether we can get a better system?

Richard Asher: I believe, and the Royal Institution of Chartered Surveyors has always believed, that codification of the whole of the CPO rules, which go back to 1845 and are highly complex, would be a sensible way forward. I think the simplification of the rules for CPO would be a major step forward.

A CPO, at the end of the day, is a draconian measure. It is taking people’s land without their consent in the public interest. That means there has to be a balanced approach. I think the complexity often deters people—particularly local authorities, in my experience—from using CPO powers. It also results in a number of CPOs being refused or rejected by the courts because of the complexity of the rules that surround them. There were two Law Commission reports in the early 2000s that went some way to making recommendations that, had they been implemented, would have speeded up the process.

There are also too many routes and different procedures. One of the most recent—the development consent order—is in its infancy, but it seems to be a way of delivering compulsory purchase quickly. That is to be commended. I think there should be a rationalisation of the process.

Richard Blyth: I think it is a very difficult balancing act. I commend the fact that the Government have taken on CPO as an issue to include in the Bill and the previous Act earlier this year. It is a tricky job and a long journey. One of the difficulties with this area is that if you were to propose some kind of utopian world, it might be that the perfect is the enemy of making improvements. We support the fact that the Government have made steps on a journey. Although it may not be completed now, they are very commendable steps for the time being.

Colin Cottage: My short answer to your question is no, possibly they will not. There are more underlying problems with the system. It is lengthy. It is uncertain for all parties—both for acquiring authorities and for the people affected by it. Acquiring authorities do not know how much it is going to cost them, because the process is uncertain in that regard, and people affected by compulsory acquisition do not know how much compensation they are going to get. That then causes conflict, and it does so from the outset.

The existing system is not helpful for reaching quick solutions. In fact, in many ways it encourages people to be fighting with each other from the outset. Ultimately, that increases the uncertainty, conflict and cost. That is really the issue that we have to look to address in order to give ourselves a more streamlined system. We need to try to bring dispute resolution to the forefront of the process, rather than it being very much at the back end, where it current is.

Once conflict has set in and disputes have got hard-grounded, there is the possibility of resolution through the tribunal. In itself that is an immensely costly process. Even a relatively cheap case will set a claimant client, who may be just a private individual, back a couple of hundred thousand pounds. There is an access-to-justice problem that needs to be overcome. Those costs are also a risk for acquiring authorities as they go through the process. Those are the kind of things we need to deal with to make the process more user friendly, both for acquiring authorities that are trying to bring forward housing development and for those whose land is acquired.

Tim Smith: The provisions are sensible so far as they go, but none of them tackle any single major obstacle to the delivery of land, so there is not going to be in the Bill a silver bullet for compulsory purchase to allow housing development to come forward. There is nothing in there that is hugely significant. What is on its face the most significant proposal—the statutory enactment of the no-scheme rule—is effectively what happens anyway. That is the position that has been established by case law. It is fine so far as it goes, but it does not go very far.

Lord Mann Portrait John Mann
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Q Should there be additional powers to encourage house building that allow planning authorities to more easily compulsorily purchase land from within the public sector?

Richard Asher: I do not think more powers are required; we need a more streamlined process that allows the authorities to have more certainty. As Colin was saying, it is the uncertainty that is preventing a lot of authorities from using compulsory powers where they might otherwise decide to use them.

There have recently been several high-profile cases in which compulsory purchase orders have been rejected by either the Secretary of State or the courts. That is because there is not the clarity about the process that there needs to be. As Colin said, the uncertainty applies to the property owners as well. The longer the process goes on—CPO is a very lengthy process—the more uncertainty it creates for the landowners as well.

There is no silver bullet, but if we had a more streamlined system with clear milestones, that would go some way to encouraging local authorities in particular, because it is quite often local authorities that do not have the experience or capacity to deal with compulsory purchase orders. For large-scale projects such as High Speed 2, there is clearly the ability and understanding to deliver that. For smaller-scale housing projects for local authorities, there is still a fear of using compulsory purchase powers.

Richard Blyth: I commend Birmingham City Council, which has developed high-level expertise in this area and puts it to good use, and it is available to other authorities to use. The contracting out and sharing of excellence across the local authority sector makes sense, rather than a very small authority having to build up its own expertise on a specific matter, which it may not use very often.

Roberta Blackman-Woods Portrait Dr Blackman-Woods
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Q That is interesting in terms of good practice. Are there any other countries that do CPO better than we do and that we could look at?

Colin Cottage: The American system has some merits. At the CPA, we are looking at that at the moment. It is not perfect in all regards—no system is—but in the States, for example, projects are funded up front in a way that they are not in this country. That means that there are no public inquiries; the scheme just goes ahead, so people know they will be affected by it. Then there is an independent assessment of value in advance. Value is independently assessed, and that then forms the basis of an offer to the landowner. The landowner can challenge that, but there are cost implications if they do.

We had a chap by the name of Douglas Hummel, who came over from the International Right of Way Association, the American body that oversees compulsory purchase best practice. The results there are that in the order of 81% of land value compensation assessments are agreed immediately, and another 4% settle after a short period of time. Only the remaining 15% are then contested for any lengthy period of time. That is a much higher strike rate than we have in this country.

I am not necessarily saying that the American system is exactly the way to go, but there are examples of early dispute resolution. That is what it is in form: an independent valuation. In the UK system, the claimant puts forward his claim, and that is then contested by an acquiring authority, and you have a creation of conflict. An independent third-party valuation up front should really be considered quite carefully, and could lead to a reduction in conflict.

Richard Blyth: We are not necessarily going to look for places that do CPO better, because I think everyone would agree that it is better never to have any, but Germany has a land reorganisation system, where all the private landowners party to an urban extension of a town are put into a readjustment system, and the local authority then provides the infrastructure out of the increase in land value. It is then reapportioned.

That is quite useful. From my experience when I was in practice, it is very difficult if you are the landowner who gets the bit of land that will be the public open space, or the balancing pond or something, in a wider scheme. It can seem very unfair, but this kind of approach not only makes sure that all the infrastructure gets put in, it evens out the benefits across a clutch of landowners more fairly, so the first one does not get all the benefit. That is certainly impressive, in terms of how to ensure that infrastructure is provided in advance, so house builders can just get on and build the houses within the plots that are then made available, and are often of very different sizes.

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Jim McMahon Portrait Jim McMahon
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Q A point was also raised about how the profession is perceived and whether it is really attracting talent and new people who want to come through. The suggestion was made that we should work with local universities to try to bring that through. Have the Government got any plans to raise the status of that? When it works well, it is developers that want to build a great product and planners that want to build great communities, and together they find a way of making it work, and everyone benefits from that.

Gavin Barwell: I am very interested in talking to the profession about that. You are obviously aware that we are publishing a White Paper later in the year. We are thinking about an overall strategy for how we get this country building the homes that the Prime Minister wants to see us building, and a key ingredient of that is ensuring we have enough people with the right skills, both within local councils’ planning departments, more generally in the planning world and in the construction industry—making sure that we have got enough people out there to actually build these homes. The skills agenda—ensuring we have got the right people in the right places with the right skills—is absolutely a cornerstone of the strategy that we need to build.

Lord Mann Portrait John Mann
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Q I have two questions. The first one is on neighbourhood plans. In my area, we have more than 20 under way. The vast majority of land proposed in them or agreed in them to be allocated for housing would be classified under the previous aborted local plan—the rules were changed by the coalition—as windfall sites. My estimate is that there will be approaching 1,000 units of windfall sites just in Bassetlaw, just from those neighbourhood plans. That is a huge number. Every single one of the urban neighbourhood plans that I would like to promote, for which there is a clear community interest and a definable community that, according to my subjective judgment, would be keen and easily engaged—and there are a lot of them—would also classify entirely as windfall sites, despite the fact that Bassetlaw is required to find around 5,000 housing plots in its local plan. That is a huge number in addition.

Bearing that in mind, first, what additional resource is going to be made available to allow the creation of new neighbourhoods and the required planning work where no existing infrastructure—such as parish councils —is in place? Secondly, you rather strangely suggested that you would have county councils taking over where district councils were failing to deliver. I am not exactly sure what the core competence in planning in county councils would be for that, but will that power also apply to city regions?

Gavin Barwell: I will deal with your second question first; I would like a little clarity on your first question before I answer it.

In terms of city regions, the answer is “definitely”. Some of the devolution deals have already included an appetite to produce a strategic plan for the area. For example, in Greater Manchester—the hon. Member for Oldham West and Royton is nodding—rather than the 11 districts in the Greater Manchester area all producing their own local plans, they have made the decision to use the devolution deal to produce a strategic plan for Greater Manchester as a whole. From a Government point of view, that is extremely welcome, because it allows us to cover off all those areas with one plan.

It is not necessarily something that we would want to impose, but if, as part of the devolution process, areas have an appetite for looking at strategic planning across an area like that, there is a lot to commend it. I am looking forward to going to Greater Manchester soon to co-chair the Greater Manchester Land Commission and look at how that plan is progressing. It is potentially a very attractive idea.

Lord Mann Portrait John Mann
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Q That is not quite the same as intervening powers.

Gavin Barwell: No. We are not taking it as an intervention power. It would be something we would look to negotiate on a case-by-case basis for each devolution deal. I stress that the county council power is not something I would anticipate using regularly, but if you look at the parts of the country in which there has been a struggle to produce local plans, it is often because you have two or three districts where land use is heavily constrained, because large amounts of the land are green belt or protected in some other shape or form. As the hon. Member for City of Durham was saying, the duty to co-operate is therefore not working and the housing need is not being reallocated around the area. Hypothetically, there may be cases in which having a county council look across the county and ask, “Where in the county could the housing need go?” might be a way to deal with it.

I say to the hon. Member for Bassetlaw: I see my job as the Minister very clearly. I do not want to be the person writing plans for local communities. As the Minister, my job is to say to local councils, “It’s your job to produce the vision and aspiration for the area.” I have one role in the process, which is to say, “I’m not going to let you duck the tough choices.” We have, as a country, to meet the need for housing in our country. As the Minister, it is my job to say, “You have to find a way to do it in your local area.” Whether that is several districts working together, county or individual local plans, or an agreement on a devo deal in Greater Manchester, I am open to different ways in which it can be done. I hope we all agree that we have not been building enough housing in this country for a long time, and that we have to find a way to make sure that we have that coverage throughout the country.

On your first question, were you asking about how we make sure we resource the groups that might produce the plans in urban areas of your constituency?

Lord Mann Portrait John Mann
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Yes.

Gavin Barwell: Okay; understood. A £22.5 million support programme is available and has so far made more than 1,500 payments. All groups can apply for a grant of up to £9,000, but, as I represent an urban constituency, I absolutely recognise that it is more difficult to do this kind of work in more deprived areas—sometimes in more transient parts of the country as well—so additional funding and technical support is available to people in such priority areas. There is a national network of 132 neighbourhood planning champions who provide advocacy and peer-to-peer support. We recently launched an advertising campaign to promote the take-up of neighbourhood planning. That targeted a number of urban areas. I know that both you and Helen Hayes have spoken about this before, and are keen to push it. I am keen to listen to you and to think about whatever else we can do to help. I do not want the policy just to work in rural parishes, although the contribution it makes in those areas is important. It should be something for the whole country.

Steve Evison: May I just add a further point? For instances where the individual local authority has not written its plan, the 2016 Act enabled us to invite a Mayor or the combined authority to write the plan in place of the individual local authority. At the moment, that power is not available to county councils. Through the change, we are ensuring that we have the same options in two-tier areas as we do in areas with Mayors and combined authorities.

Chris Philp Portrait Chris Philp
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Q I am pleased by the comments you made earlier about the plans to consult on increasing planning fees to get resources into local authorities. Could you lay out, for the Committee’s benefit, the proposed timetable for replying to the consultation? How will you go about enacting that when you have considered the results?

Gavin Barwell: That is a fairly simple one. The consultation has happened and we are waiting to respond to it. The realistic likelihood is that the response will come in the White Paper.