Housing and Planning Bill

Lord Porter of Spalding Excerpts

Tuesday 22nd March 2016 Lords Chamber

[Lord Shipley (LD)]

My Lords, I agree with what has been said so far in this debate. I want to emphasise that this is an extremely important amendment because it underpins so much of what follows. It provides the framework within which individual policies can be devised to secure sustainable development and sustainable place-making, and it is important that we have something in the Bill that emphasises that importance of planning.

Two years ago I chaired the University of Birmingham’s policy commission on future urban living. As we took evidence, it became very clear that it was going to be very difficult to make significant change without an enhanced planning system to lead it and a better understanding of why it matters. We concluded that planners must not be seen simply as regulators. That is increasingly the way in which the role of the planning profession in local government has gone. Planners have to be seen as part of a senior management team of a council with a specific role in achieving long-term sustainable development and long-term sustainable place-making. I use that phrase because it is the one that is in common parlance when discussing planning.

It is very important that officers of councils have a broader responsibility in planning than simply regulation. Achieving all this requires a radical upgrade in the importance of planning to attract back the multidisciplinary creative talent that was once prevalent in planning departments. For that reason, the objectives of this amendment are very important because they explain the role of planning as a multidisciplinary function in the local authority. As the noble Baroness, Lady Andrews, said, in recent years we have lost sight of the importance of planning. I agree absolutely with that. I think it is a very important statement.

As the noble Lord, Lord Inglewood, has just pointed out—I think I am quoting him correctly—it is important that we capture land-use planning. This is very important, and it is absolutely right that we should.

[Lord Porter of Spalding (Con)]

My Lords, I remind everyone that I declared a bunch of interests at the start of the debates. I am going to add another one now, seeing that the NPPF has been mentioned. I was one of the four practitioners who wrote the original draft of the NPPF, and I confirm that it is not necessary to add this set of words to the Bill, because that is what the NPPF already does. It is about sustainable development, and that will be determined individually by each council with each application in its area. Putting something in the Bill will limit the ability of councils to deliver what we need to deliver.

Unlike noble Lords who have spoken before, looking through rose-tinted glasses, about what the world has become since 1947 and the planning Act, I remind noble Lords that the tower blocks that we have started to knock down were once seen as iconic buildings of the 1947 Act. I am not sure that we want to go back to that world. Probably my final statement on this will be that this fantastic building that we all have the privilege of operating from would not have been built under the 1947 Act.

[Baroness Morgan of Ely (Lab)]

My Lords, I set on record my best wishes to the noble Lord, Lord Kennedy, and wish him a speedy recovery. In this Bill we have a half-baked, ill-thought-through set of proposals. Parliament, local government, housing providers and the voluntary sector have been treated in a high-handed manner in the development and consultation of this Bill. No regulations have been produced, and the Government freely admit that regulations will, for the most part, not be available until many months after this Bill has become an Act of Parliament. All we have been offered is an expression of frustration from the Government at that fact. This is not a good way to pass legislation that stands the test of time. It is, however, definitely the way to pass legislation that is quickly discredited, not used, and fails everyone—a bit like the recent Budget.

Amendment 89LZA, proposed and set out passionately by my noble friend Lady Andrews and supported by the noble Lords, Lord Clement-Jones and Lord Greaves, seeks, as we have heard, to put in the Bill this new clause, which sets out the purpose of planning. It is a set of principles to which planners need to adhere. Since 2010 there have been a number of changes to the planning process, as we have heard. It is good that we have an expert here from the National Planning Policy Framework, which sets out how local people and local councils can produce their own local plans. The Localism Act 2011 gave specific powers to local authorities and local communities to develop planning policies, but this amendment would help to give a framework for that decision-making process. I acknowledge that it is generally accepted that sustainability needs to be considered, but the amendment would put it on the face of the Bill. That is why it is important for everybody to be absolutely clear about what we are trying to achieve. If the Minister has any objections, I would like to know exactly what they are.

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[Lord Palmer of Childs Hill]

Developers work by first applying for planning permission. We are saying that once they have the planning permission there has to be a period in which they start the work and then, being reasonable people, there is a period in which they have to complete that development. That was the seven years. It could be 10 years or whatever any of the Ministers want but I believe there has to be a dual requirement rather than the one the noble Lord suggests.

[Lord Porter of Spalding]

My Lords, the person the planning permission has been granted to might not necessarily be the one developing the site anyway, so to make the original grantee of the planning permission responsible for development is not practical, or probably legal. As has already been said, some sites will be a phased process so rather than a seven-year arbitrary deadline, developers should be working with local authorities to work out the phases of development and the proposed completion time on the basis of the phased development. If you were to grant somebody a site of 2,000 or 2,500 units, you certainly would not want them all being built within seven years. The way it is worded will work against some areas. I can appreciate that people should not be able to build up land banks without having any intention of bringing it forward, speculatively trying to increase profit on the basis of the land value itself, but the way this amendment is worded will have a detrimental impact on the communities where we try to implement it.

[Lord Palmer of Childs Hill]

My Lords, the actual development has to take place with the original developer—but on the suggestion that the developer might change, which I think the noble Lord made, the planning permission goes with the site. Even if the developer changes, the restrictions or advantages are still there. The person who buys the site gets those benefits and restrictions with it.

[Lord Porter of Spalding]

I totally agree—the land is where the planning permission sits, but that is not what the noble Lord’s amendment says.

--- Later in debate ---

[Lord True]

My Lords, I have an amendment in this group. It is a very important subject and it is a great pity that it has come up at this late hour. I quite understand why my noble friend wished to move it.

Under Article 4, for example, which is recommended on the process we were discussing earlier, you cannot charge fees in those circumstances. You cannot even charge the prior approval application fee. So in those cases, if we had not had that system, we would have been able to get fees of £380,000, whereas we actually got only £19,000 from all this work—on 234 prior approval cases. I do not want to go over all that again; it just accentuates the problem. I agree with my noble friend. I do not see why local authorities should not be permitted to recover the cost of this service.

In our authority, it costs us £1 million to provide this service. That is money that has to be cross-subsidised. So, in effect, while we are being told that we have to charge up to the level—charging old people full price for their services and so forth—developers and people who want to do extensions do not have to pay. The only people who are told that they must be subsidised are developers. It is in fact a pernicious cross-subsidy from adult social services and other key services into providing a cost on planning that is not the true cost.

This is not the occasion to have a long debate, but it is unacceptable that local authorities are not allowed to recover at least that cost—I would not be as ambitious as my noble friend. This is a matter that we must return to.

[Lord Porter of Spalding]

My Lords, I do not wish to drag this out any longer, but I feel the need to support this amendment given that I am the chairman of the Local Government Association and local government nationally is subsidising the planning system by about £150 million a year. As the noble Lord, Lord True, said, to make money on planning is probably a step too far, but we should certainly be in a position where councils are able to fully recover costs. I know that the previous coalition Government gave the first decent increase in planning fees for a long time, but that was a fair while ago, so it is about time someone looked at the way that we are dealing with planning permissions. I add my support to the previous two speakers to ask the Minister to make sure that when she is speaking to her colleagues this is something that is looked at.

It works in the industry’s interest to have well-resourced planning departments. It enables us to do planning permissions in a stronger, quicker way so that the industry benefits. I do not think anybody would suggest that we should make money on this, but we should certainly be able to fully recover the costs.

[Lord Kerslake]

I add my support to this amendment, which goes to the heart of an issue of performance and capacity in local authorities. One thing that we did as part of the London Housing Commission was to talk to developers and housebuilders. Absolutely consistently, every single one of them raised concerns about the impact of budget reductions on the capacity of planning departments. It was not simply the number of planners; it was also the fact that often senior positions had been taken out in order to save money and they would be dealing with quite junior planners who did not have the authority to take a decision. They were often temporary and then moved on just at the point that the report might be going to committee. This costs housebuilders and developers a huge amount of money. I did not find a single developer or housebuilder who was not prepared to pay more for the planning service in order to tackle this issue—not one, and I talked to literally tens if not hundreds of different people through the course of this commission.

That is an issue for London, but I believe that it goes beyond London. It has always been incomprehensible to me why we do not go with a model that says: charge the proper rate—not an excessive charge, but the proper rate—for the job that needs to be done. We have planning performance agreements, but they simply do not go to the heart of the issue, which is the ability for local authorities to reliably plan their resources based on a high level of fee income. I strongly support the amendment and hope that the Minister will seriously consider its contents.