Homes: Existing Communities

Lord Mendelsohn Excerpts

Thursday 12th December 2024 Grand Committee

[Lord Mendelsohn (Lab)]

My Lords, I declare an interest in that I am a shareholder in Next plc. I am very pleased to follow the noble Lord, Lord Wolfson of Aspley Guise, because he has just shown himself, as ever, to be a very big thinker. He is certainly the most gifted and capable business leader of our generation, but his speech also showed that he has big thoughts and a real view about how these things can be delivered as well, which will be one of my themes. I hope the Minister will consider what the noble Lord said very carefully and will invite him in: I would have been more than happy had this turned into an “hour for short lecture” for the noble Lord to outline all his plans, but I am happy to hear the contributions of others as well, as well as to make some very elementary points that I feel are important.

The first is that I think the noble Lord, Lord Wolfson of Aspley Guise, makes an important point about the impact of housing developments on others. In the communities that we are looking to build, we have to be absolutely clear that the infrastructure is there. It is not just about the economic incentives, which I think are absolutely clear and were outlined very well in the last speech, over the nature of the planning system and the level of costs that it brings, but many of the challenges we face in social cohesion and belief in fairness have all played to the problems caused by development not having the critical infrastructure that is necessary to accompany the extension of wider housing opportunities—GPs, schools and other critical services. Those things have to be planned as well, not just the construction of housing but creating the right incentives for other forms of structure to be there.

Certainly, the Government have done a good job in trying to set the direction on increasing housing supply. They have a significant housing target, a muscular approach to land usage and are putting pressure on local authorities, but it is not enough, because housing targets are huge: 1.5 million over three years is a very significant number, and my concern is that it would be more reasonable to suggest that we could do 3 million over 10 years. It is very hard to deliver 1.5 million over five years for a number of reasons, not least the employment situation in the construction industry and the skills that are necessary to reach that sort of level. Not only that, but we have a huge balance of public sector versus private sector-led development to be able to wash out, and we do not yet have the economics to do that. The private sector is key to this, as is making sure that the private sector has the right incentives to do it.

Here, the planning system is critical. The data says that there were 15,000 planning officers in 2010 and 12,000 in 2020. I, for one, do not feel that this adequately reflects the problems in planning departments. It may well be that there was a drop of only 3,000 but, from my experience of planning issues, it is very significant to see that the length of time in which people are planning officers, where they are brought in and where they are from has changed substantially. I suspect that that involves a huge amount of churn, because the number of full-time planning officers in planning departments that I have dealt with has dropped much more markedly, which makes planning much more complex.

Any plan we have to massively increase housing supply will have to have a real sense about the timings and synchronicity of the plan, the delivery adjacencies, the people challenges and whether we can get the agencies and the role of the state in the right place, and there will be a price to pay, which unfortunately the Government will have to make sure that they can meet. The noble Lord, Lord Wolfson of Aspley Guise, extends the point by saying that if we were to have some very strong advanced principles in this, that would certainly also set the right direction for the future.