Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, I declare my interests as set out in the register and note that I am co-chair of the Midlands Engine APPG. As a proponent of levelling up and an advocate for the Midlands region since I arrived in Parliament, I very much welcome the Bill, and the measures that it includes will make a huge difference to the Midlands region, which is home to 11 million people and contains some of the most deprived areas of the UK.

The area that I am most excited about is enabling greater local democracy—and thereby the proposals that exist to create a new combined county authority within the east Midlands, which will cover Derby, Derbyshire, Nottingham and Nottinghamshire. I believe that is the single biggest change needed to begin addressing the economic disparities that exist between the east Midlands and the rest of the country in transport, public affairs and R&D. As the right reverend Prelate the Bishop of Leeds stated, those economic disparities are where this all starts. The plea from local leaders in the Midlands is to get the Bill through and into law as quickly as possible so we can progress with our local plans.

I wish to make three points. First, on the levelling-up missions and their place within the Bill, the right reverend Prelate the Bishop of Carlisle put it across that we are missing the confidence in the missions and that they really will be achieved. We could do with those missions being explicitly stated in the Bill; that would add weight to the missions and provide the confidence that they will be achieved. The missions have been developed already within the White Paper. In addition, I was somewhat alarmed by the wording in Clause 5—the Government can at any time change or alter those missions. To increase confidence in levelling up, one of the key strategic goals of the nation, there should be some additional control by Parliament of any change to those missions.

Secondly, on high street regeneration, recently I took a walk through central Derby and asked my sons to count the number of empty shop units. We counted 14 over a 200-metre stretch in the city centre, from Iron Gate to Corn Market. The only retail outlets that seemed to be thriving were betting shops—I counted five. This issue is repeated right across towns in the Midlands region. Walking around comparable stretches in London, I see maybe one or two empty units at most. I know the Government get this, and I welcome the powers in the Bill to do with high street rental auctions and expanded compulsory purchase powers. However, what I am hearing from local stakeholders is that the Bill contains a lot of stick but we need to think more about the corresponding carrot: how we actually incentivise businesses to set up in these areas. The burden of business rates and occupational costs mean that it can be unviable for many small and independent businesses to trade from town centre premises. Proposals for town centre investment zones should also be considered. What measures are being considered by the Government on the incentive side to provide more incentives to set up in these areas? No landlord really wants their premises to be empty.

Finally, as others have pointed out, the Bill is essentially a planning Bill, and because of this, there exists a real opportunity for the Government to include within it additional measures related to the environment. Once such opportunity is measures to report on and regulate embodied carbon in buildings. As noble Lords will be aware, there are two types of emissions from buildings: operational carbon, which is heating, lighting, et cetera, which is already regulated under Part L of the building regulations; but there is also embodied carbon, which is essentially the production, transport and installation of building materials, and their demolition at end of life. At the moment, that is completely unregulated, despite accounting for fully one-third of emissions from buildings: 50 million tonnes of CO₂ equivalents per year, which is more than aviation and shipping combined. A proposal to regulate this already exists, developed by industry and known as Part Z of the building regulations. These regulations have wide industry support and similar regulations have already been rolled out internationally, so I believe all the groundwork has been done to allow the Government to move forward with them. What is the current government position on regulation of embodied carbon, and how do they plan to implement Part Z? There could be a great opportunity within the Bill to do exactly that.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Committee stage
Monday 20th March 2023 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I totally agree with what the noble and learned Lord, Lord Etherton, said about his Amendment 474 and the complexity of the system. It is difficult for businesses to negotiate the terms which determine their viability; business rates cannot be negotiated; and the multiplier has risen substantially in the past few years, making the costs to businesses unaffordable in many cases.

Amendment 428 in my name and that of my noble friend Lord Shipley addresses a principle of business rates rather than the nuts and bolts. The key to levelling up and realising one of the ambitions of the White Paper—vibrant and successful town centres and high streets—lies in business rates. Too many town centres across the country are blighted by empty, boarded-up shops, which then become less attractive to local people wanting to shop there, causing a downward spiral.

I accept that the purpose of town centres is changing, as in fact it always has done. The balance of provision in town centres is increasingly shifting from the sale of goods towards services such as hair salons, nail bars and the like. However, the growth of e-commerce has put enormous pressure on traditional retail. This is where Amendment 428 comes in, because it would require a fundamental review in principle of business rates.

These are the reasons. The Government call it “bricks versus clicks” and “the tax imbalance” on the government website, which then refers to business rate revaluation, which actually does very little to redress the imbalance. I will give an example of one of the great e-commerce providers, Amazon. Its provision is in out-of-town warehouses and their rateable values are very low. An Amazon warehouse near me in Doncaster is paying rates at £45 per square metre—on average, because things change according to what is provided in a warehouse—whereas a small town centre shop near me has rates of £250 per square metre. We should think about that differential. The massive warehouse is providing retail goods, as is the small shop, but there is this huge disparity between the rates they are being charged, putting the town centre retail shop at a huge disadvantage.

The noble Baroness, Lady Scott, mentioned in an earlier group that the Government are tackling this by reducing town centre business rates by 20% following the revaluation. I always get cross about the use of percentages, because they are ratios, so whether they are percentages of a large number or a small number makes a very big difference. A 20% reduction on this £250 per square metre still leaves them paying £200 per square metre. However, although the Government have raised the rates for e-commerce by 27%, they are still paying only £56 per square metre. The disparity is still enormous, leading to an unfair competitive advantage for the e-commerce sector.

The Government have rejected the idea of an online sales tax, and I can understand why. It will be complex. However, I urge the Minister to respond positively to my suggestion that the Government use the existing business rates system to provide for much fairer competition between e-commerce and retail in physical shops. E-commerce businesses have a huge advantage. Not only are their business rates low but some of them also manage not to contribute much taxation to the country. They lead to significant increases in the volume of traffic, moving the goods between warehouses or from warehouses to pick-up sites or people’s homes. Yet, if they use electric vehicles, which is a good thing, they are not contributing much to the upkeep of the roads. Whichever way you look at it, e-commerce retail is at a considerable advantage. That is not in line with the Government’s ambition, which I totally support, of having vibrant town centres. The noble Baroness, Lady Hayman of Ullock, referred to incentives to help out-of-town warehouses. I think I have given the answer to that. The business rates for these e-commerce sectors must be in line so that there is fair competition between the two ways of providing retail goods.

Amendments 168B and 169, tabled by the noble Baroness, Lady Hayman of Ullock, make a good case for the retention of rates income by district councils. I will listen carefully to the Minister’s response to that argument. On Amendment 169, it will be interesting to hear what the Minister has to say, but I understood that there is already a grace period for uninhabitable buildings to be made habitable during which they are exempt from council tax. Maybe that is not the case, but I remember taking it through this House and I understood that to be the definition then.

It would also be helpful for us all to understand the definition of empty homes, empty properties, empty dwellings, because it is not always as it seems. Maybe the Minister will put me right, but my understanding is that empty properties are not empty if they are partially furnished. There is a whole debate around definitions of empty properties and uninhabitable dwellings that we probably need to understand more closely with regard to these amendments and the previous group in relation to council tax on holiday lets, short-term lets and second homes.

So that is my proposition to the Minister. We need a fundamental review of business rates because retail is changing fast. If substantial change to level the playing field is not made, the ambition for vibrant town centres will fail. I beg to move.

[Lord Ravensdale (CB)]

My Lords, I was pleased to sign Amendment 474 tabled by the noble and learned Lord, Lord Etherton. I also support the other related amendment in this group, Amendment 428, tabled by the noble Baroness, Lady Pinnock.

Regeneration of high streets and town centres is particularly important in the context of levelling up. I cannot stress enough how important a thriving town centre and high street are for the morale of a city, for its togetherness and for its onward development. Many high streets and town centres in the regions, including in some areas in Derby, where I live, are struggling with low occupancy and empty premises. This must be resolved urgently if we are truly to level up the regions and bring back the economic dynamism that is required for further developments.

I know that the Government get this, and their plans for enhanced compulsory purchase powers and high street rental options could form part of the solution here. However, in my role as co-chair of the Midlands Engine All-Party Parliamentary Group, I have canvassed many local stakeholders on what would really make a difference to high street regeneration, and the theme that comes at the top of the list time and time again is business rates.

The current structure of business rates makes it simply unviable for businesses to set up in certain locations. To expand on what the noble Baroness, Lady Pinnock, said, a property was being marketed on East Street, Derby last year at a lease of £35,000 per annum. It had a rateable value of £112,000 and rates payable of £56,000, so the rates were significantly higher than the rent. Another example, from the British Property Federation, is a property in a Hull for which the business rates bill was around three times higher than the rent a property in that location could reasonably demand. There are further cases of businesses not being willing to renew leases on their properties, even at zero rent.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Committee stage
Wednesday 22nd March 2023 Lords Chamber

Moved by

[Lord Ravensdale]

179: Before Clause 78, insert the following new Clause—
“Purpose of Planning(1) The purpose of planning is to ensure that the development of land balances long-term economic, social and environmental benefits, safeguards natural resources, and supports the needs of future generations in respect of land use.(2) When making relevant planning policy or development plans or granting planning permission for the development of land, all relevant planning authorities must have special regard to the need to—(a) contribute to the targets set out in—(i) Part 1 of the Climate Change Act 2008 (UK net zero emissions target and budgeting);(ii) sections 1 to 3 of the Environment Act 2021 (environmental targets); and(b) adapt to any current or predicted impacts of climate change identified in the most recent report under section 56 of the Climate Change Act 2008.”Member’s explanatory statement
This new Clause inserts a “purpose of planning” provision into the Bill. Currently, planning authorities are under no statutory obligation to take climate change into account in the determination of planning applications. This introduces a duty in relation to national and local planning policy and decisions.

[Lord Ravensdale (CB)]

My Lords, I shall speak to Amendment 179 in my name, which inserts a purpose of planning provision into the Bill, as well as to Amendment 271, which inserts a duty relating to climate change in planning functions. I declare my interests as a director of Peers for the Planet and as a project director working for Atkins. I also thank my supporters, the noble Baronesses, Lady Hayman and Lady Boycott, and the noble Lord, Lord Hunt of Kings Heath.

What is really important about these amendments is the need to better enable local authorities and give them the tools that they need to work towards our net-zero and environmental targets. For me, this is one of the key missing links in the whole governance system for net zero and the environment. We have lots of top-level policy from the Government but little guidance or direction for local authorities so that they can play their role. We have many local authorities that really want to play their part but do not have the tools or resources to do so, whether in energy planning or the wider planning system. What this leads to is an inconsistent approach and a patchwork quilt of responses across the many local authorities in their approach to the environment and net zero.

The Skidmore review looked into this area in detail, and it is worth quoting briefly what it stated. It said:

“One of the starkest messages from hundreds of organisations and individuals is that the planning system is undermining net zero and the economic opportunities that come with it. The Review recommends wide-ranging local planning reform—from the introduction of a net zero test to a rapid review of bottlenecks in the system—to ensure that it is fully aligned with our net zero future”.


The resulting action on implementing a net zero test was in its 25 key recommendations by 2025. That is the level of importance here in the wider net zero picture. I also note that the Climate Change Committee said, in its progress report to Parliament last year:

“Net Zero and climate resilience should be embedded within the planning reforms that are expected as part of the Levelling Up and Regeneration Bill”.


The lack of a net zero test is having an impact right now. For example, there is the case of a major solar farm on 75 hectares of land near where I live in Derbyshire. The project involved the production of around 50 megawatts of renewable energy, sufficient for around 13,000 homes or more than 22% of all Amber Valley borough’s households. In December 2022, a planning inspector refused permission on appeal, on the grounds that the project would harm the landscape, character and visual amenity. This case highlights that fact that, in the contribution that the project makes, the delivery of net zero may not always be given sufficient weight and priority, which would be resolved by a net-zero test running through the whole planning system.

My Amendment 179 would resolve this by introducing a “purpose of planning” provision into the Bill; namely, a duty for national and local policy decisions to reference the Climate Change Act 2008 and the Environment Act 2021. Amendment 271 is a scaled-back amendment that could also be considered by the Government. It would amend the Town and Country Planning Act 1990 to ensure that climate change is given special regard in individual development proposals.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I have certainly had no conversations with those people, and I do not know whether the Housing Minister has. I will make sure to ask and find out. That is the whole idea of planning: if the policy requires it, the developers need to act within planning policy in order to develop.

I reiterate that the Government will be reviewing the strategic objectives set out in planning policy to ensure that they support the Government’s environmental targets under the Environment Act, net zero, and the national adaptation programme. This comes back to what the noble Baroness opposite was saying: are we joining it up? Yes, we are checking it with the Environment Act to make sure that we will deliver through the planning system everything that we agreed to in it.

While I appreciate the essence of this amendment, it is not one that the Government feel able to support, given the clear purposes for planning already set out in national policy.

[Lord Ravensdale (CB)]

My Lords, I thank noble Lords for a very illuminating debate. As the noble Baroness, Lady Jones, said, this is all occurring against the backdrop of the recently issued UN climate report. That highlighted all the progress that has been made, but we need to do more to move further, faster. As the noble Lord, Lord Hunt, said, the planning system is one of the most powerful levers that we can pull in that respect, so we need to make sure that we make the most of it.

The noble Baroness, Lady Taylor, set out well the aspirations of local authorities and councils in wanting to help with declared climate emergencies. It is all about the tools to enable them to do that. Her Amendment 179A is very closely aligned with mine, so I look forward to working with her.

The noble Lord, Lord Hunt, set out many of the wider benefits to health and levelling up from looking at the planning system. The Minister set out all the various mentions of climate change scattered throughout the legislation and the various framework documents, but I think that noble Lords have strongly made the case for aligning all this and pulling it together in the legislation in the form of a net-zero test. I hope that she will consider that as we move towards Report. I look forward to further discussion with her but, for now, I beg leave to withdraw.

Amendment 179 withdrawn.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Committee stage
Monday 27th March 2023 Lords Chamber

I hope that my noble friend the Minister will consider concrete measures such as this to deliver on the missions. That can be done only if we work with local councils and give them the mandate and flexibility to succeed.

[Lord Ravensdale (CB)]

My Lords, I shall speak to my Amendment 484. I thank my supporters: the noble Lords, Lord Best and Lord Stunell, and the noble Baroness, Lady Hayman. I also declare my interests as a director of Peers for the Planet, and as a project director working for Atkins.

It would be helpful if I started with some definitions; I hope I am not teaching too many noble Lords to suck eggs. There are two types of emissions from buildings: operational carbon, which is those emissions due to energy and water use; and embodied carbon, which is those emissions related to construction materials. Operational carbon emissions are already limited by Part L of the Building Regulations, but there is no such parallel regulation limiting embodied carbon emissions.

For a long time, operational carbon emissions have accounted for the majority of buildings’ emissions. However, with decarbonisation of the grid, operational carbon has reduced in recent years and that trend is set to continue, particularly with the introduction of electric heating. As such, the embodied carbon emissions in construction contribute an increasing proportion of the whole-life carbon emissions for most buildings, with one study indicating that over two-thirds of a low-energy new building’s emissions are embodied.

UK embodied carbon emissions represent some 50 million tonnes of emissions per year, which is more than aviation and shipping combined—a huge quantity of emissions that is completely unregulated and has increased in recent years. We think of the huge effort that is going into mitigating the carbon emissions of aviation and shipping: we have a sustainable aviation fuels plan, jet zero and plans for corridors for emission-free shipping based on ammonia and hydrogen. But for embodied carbon the current plans in place are sparse—although industry is making some good progress in reporting—so we have a problem.

Lord Boyce, who sat on these Benches but passed away, sadly, late last year, had a saying which went something like, “There is no such thing as problems, only solutions in disguise”. The solution here is a fantastic campaign, which has been under way for a number of years, to add a new part, Part Z, to the building regulations; this would start with reporting and then move on to regulation of embodied carbon emissions. It has wide support across industry; 200 of the country’s leading developers, clients, contractors, architects, engineers and institutions have written statements of support. These include organisations such as British Land, Willmott Dixon, Sir Robert McAlpine and Laing O’Rourke—I could go on—and industry bodies such as the Construction Industry Council, the Concrete Centre and the Steel Construction Institute; so there is wide support right across industry.

Industry already has the tools necessary to respond to Amendment 484 and, indeed, is voluntarily using them. Regulation would simply unlock the final door to enable the existing mechanisms to run smoothly and to ensure a level playing field. It has already been the subject of a Private Member’s Bill put forward by Jerome Mayhew in another place, which has enjoyed wide cross-party support.

Many countries in Europe are already proceeding with the approach outlined in the amendment. These include France, Sweden, the Netherlands, Finland, Denmark and Norway. It is not only about the emissions cost; we risk being left behind in the opportunities that the amendment will unlock if we do not proceed with it soon. These opportunities include the benefits of a standardised approach to reporting—rather than the patchwork quilt of the many approaches that exist currently—which would reduce overall costs to industry, and the treasure trove of data that would be generated and could then be used to inform further decarbonisation efforts, both in voluntary targets and in leading towards eventual regulation.

To add to this, the policy signal provided by this amendment would mean that the UK could then develop in growing markets such as steel recycling, an important area that could be developed in the UK. Rather than exporting scrap and importing recycled steel as we currently do, we could invest in that industry in the UK, as is currently done in the US and Europe. Low-carbon cement is another example; if the signal were given, attracting investment and moving that from lab scale to implementation would be much more of a priority—likewise, low-carbon building materials such as non-plastic insulation and the retrofit and reuse market.

So what is currently going on within government? The Government’s construction playbook calls for carbon assessments on all public projects. However, it provides no details as to how that should take place or what an appropriate carbon emissions level is. This leads to many inefficiencies in differing approaches to assessments, increasing overall costs to the taxpayer.

The key ongoing activity is a DHLUC consultation on embodied carbon reporting, which is due to report later this year. Our amendment has been drafted to align with that consultation; it states that regulations must be made within six months of the Act being passed. This amendment would give the Government a ready-made legislative vehicle to implement these regulations once the outputs of the consultation have been defined. All the pieces of the puzzle would then be in place; otherwise, I fear that we would have much longer to wait to make parliamentary time available—we need to move quickly and seize the opportunity here.

Working in business myself, one area of concern that I am very conscious of is to avoid placing additional burdens upon small and medium-sized enterprises. Whole-life carbon assessments will involve some additional costs to businesses, at least initially while tools and approaches are being refined. This is why we have placed limits within the amendment; it applies only to building works with a total useful floor area of 1,000 square metres or over and to developments with more than 10 dwellings. This shields smaller developers from the initial costs of undertaking whole-life carbon assessments.

Finally, I will go into a little more detail on how the amendment would work. The overall strategy is to “report first, limit later”. This follows the precedents set elsewhere in Europe and makes the transition towards zero-carbon construction easier, while sending a clear signal that legislated limits are coming. The amendment deals with the initial reporting aspect, with the intent that later regulations would cover embodied carbon limits, which would in themselves be informed by the initial reporting phase. As I alluded to earlier, approaches to many of the aspects in the amendment have already been developed and are being used voluntarily by industry; for example, the Royal Institution of Chartered Surveyors has defined a methodology for calculating embodied carbon.

The emissions footprint that embodied carbon represents means that we need to move forward with urgency and help to enable industry to bring forward solutions. The Levelling-up and Regeneration Bill is an ideal and timely enabler to make this happen.

[Lord Best (CB)]

My Lords, I rise to support Amendment 484 in the name of my noble friend Lord Ravensdale, which was so comprehensively and expertly laid out before us. I declare my interests as president of the Sustainable Energy Association and a member of the Peers for the Planet coalition.

This amendment would require housebuilders and other developers to produce an assessment of the amount of carbon for which the construction of a proposed project would be responsible over its life. This includes the carbon embodied in the building materials used and the construction processes deployed.

Everyone recognises the necessity of building in ways that limit carbon emissions once the building is constructed, but that is only half the story. Half of total emissions—possibly more—associated with new building come from the carbon embodied in its construction. Concrete, steel and other materials use vast quantities of fossil fuels, as does transportation, sometimes across continents, of heavy building materials.

The House of Commons Environmental Audit Committee has shown that—as the noble Lord, Lord Ravensdale, said—the embodied carbon in new buildings accounts for more emissions than aviation and shipping put together; that is a great statistic. Yet this huge contributor to climate change is virtually invisible. Measuring and assessing embodied carbon alongside the subsequent emissions over a building’s lifespan should make all parties think harder when choosing building materials. There are many alternatives to the worst-offending components. This amendment will provide the basis for eliciting the evidence for more sophisticated decision-making.

The amendment could also lead to greater priority being given to making the best use of the buildings we already have before demolishing and replacing existing structures and adding to landfill. Demolition and construction also create dust and air pollution on a massive scale, amounting to some 30% of harmful particulates in urban areas. Retaining—rather than clearing and replacing—existing housing can also have social and community benefits. Demolition of Victorian terraced streets in the 1960s and 1970s is now seen to have been, in many cases, an unfortunate mistake. The amendment forces us to pay more attention in the wider levelling-up agenda to the regeneration of the homes we have today, rather than concentrating, as the Bill does, on the planning and delivery of new homes.

Action to upgrade existing properties—with green grants, regulations on energy efficiency for lettings, tax incentives and more—does not only address the decarbonisation challenge, it improves quality of life, reduces fuel poverty and saves NHS budgets. Recent research by the Building Research Establishment found that excessively cold homes, for example, are costing the NHS £540 million a year. The improvement of existing housing would also be accelerated, and the stock of available affordable homes increased, by the introduction of a national housing conversion fund to finance acquisition and modernisation of poor-quality, privately rented properties.

As the levelling-up programme moves onward, these regeneration measures will demand more of government’s attention. In the meantime, this amendment would achieve a more credible basis for judging the environmental impact of building practices and I strongly support it and the creation of a new Part Z to the building regulations.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Committee stage
Monday 22nd May 2023 Lords Chamber

[Lord Lucas (Con)]

My Lords, I support everything the noble Baroness just said. From long experience of canvassing and getting bloody knuckles as you try to withdraw your hand from the letterbox but the spring bites them, shortly before the dog’s teeth just miss your retreating hand, I think there would be support across the House and general congratulations if the Government were able to do something along these lines, but I suspect it should not require retrofitting. Chewing up people’s front doors would just be too expensive, but any new front door should certainly not have any of these devices on it.

[Lord Ravensdale (CB)]

My Lords, I shall speak to Amendment 504GG in my name, and note that I am co-chair of the Midlands Engine All-Party Parliamentary Group. I thank my supporters, particularly the noble Baroness, Lady Hayman, for her help in refining and improving the amendment, and the noble Lord, Lord Mawson, and the noble Baroness, Lady Verma, for their support.

I have spoken before in Committee about high streets, and will try not to repeat much of what I have previously said. I do not need to speak about the importance of regenerating high streets in the regions—I know that the Government get its vital importance for levelling up. Their plans for enhanced compulsory purchase powers and high street rental auctions could form part of the solution here.

However, I have spoken to many local stakeholders about these new powers, and the consensus is that they will not do much to move the dial. They are not commensurate with the scale of the change that needs to happen if we are to look toward a future where high streets in our regional cities are bustling with activity, are pleasant environments where people want to come and spend time, and are integrated with transport systems to allow easy transit for people to spend time there.

It has been estimated that the cost of each high street rental auction could be at least £6,000. In a time of strain on local authorities’ finances, they are unlikely to be used. In any case, high street rental auctions and compulsory purchase powers have been set up to address the supply of high street units, but supply is not the issue here. Anyone looking to set up on high streets in my home city of Derby is spoilt for choice. Most landlords would not choose to have an empty property. The issue here is demand, not supply. The Government really need to look much more closely at how they can incentivise businesses to set up on high streets. This critical point should be addressed in the Bill and will move the dial.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

Moved by

[Lord Ravensdale]

191: After Clause 88, insert the following new Clause—
“Duties in relation to mitigation of, and adaptation to, climate change in relation to planning(1) The Secretary of State must have special regard to the mitigation of, and adaptation to, climate change in preparing—(a) national policy, planning policy or advice relating to the development or use of land,(b) a national development management policy pursuant to section 38ZA of the Planning and Compulsory Purchase Act 2004.(2) When making a planning decision relating to development arising from an application for planning permission, the making of a development order granting planning permission or an approval pursuant to a development order granting planning permission, a relevant planning authority (as defined in section 85 (interpretation of chapter 1)) must have special regard to the mitigation of, and adaptation to, climate change.(3) For the purposes of interpretation of this section, Part 3 of this Act, and Schedules 7 and 12 to this Act—“the mitigation of climate change” includes the achievement of—(a) the target for 2050 set out in section 1 of the Climate Change Act 2008,(b) applicable carbon budgets made pursuant to section 4 of the Climate Change Act 2008, and(c) sections 1 to 3 of the Environment Act 2021 (environmental targets) where applicable to the mitigation of climate change;“adaptation to climate change” includes—(a) the mitigation of the risks identified in the latest climate change risk assessment conducted under section 56 of the Climate Change Act 2008, and(b) the achievement of the objectives of the latest flood and coastal erosion risk management strategy made pursuant to section 7 of the Flood and Coastal Water Management Act 2010.”Member’s explanatory statement
This new Clause places a duty on the Secretary of State and relevant planning authorities respectively to have special regard to the mitigation of, and adaptation to, climate change with respect to national policy, local plan-making and planning decisions.

[Lord Ravensdale (CB)]

My Lords, I will speak to Amendment 191 and declare my interests as a director of Peers for the Planet and a project director working for Atkins. I thank my supporters, the noble Baroness, Lady Hayman of Ullock, and the noble Lords, Lord Teverson and Lord Lansley. I also thank the Minister for the time he has devoted to this issue in a number of meetings since Committee, and I particularly thank him for our constructive discussion this afternoon.

We fundamentally reworked our amendment for Report, based on feedback from and engagement with government throughout the Committee stage. This amendment aims to resolve two issues: planning weight for climate in the system and what we are calling the “golden thread”—ensuring that climate runs throughout the complete planning system. The amendment aims to ensure that climate and the environment run as a golden thread through town and country planning, rather than the inconsistent picture at present.

The existing Section 19(1A) duty, which was restated in the Levelling-up and Regeneration Bill, states that the development of land should

“contribute to the mitigation of, and adaptation to, climate change”.

This currently applies to local plans and to a number of other plans and strategies within the Bill, but, importantly, it does not apply to individual planning decisions or the new national development management policies. It also does not refer specifically to our climate change and environmental targets. We feel that there is a fundamental inconsistency here, and our amendment aims to resolve it.

Further, our amendment gives planning weight to climate change in decision-making. It is not sufficient for climate considerations to be in only the National Planning Policy Framework—NPPF—as this is just guidance, and multiple reports from experts have highlighted how the current system is not working. It means that climate is included along with many other material considerations to be weighed up by the decision-maker, and it is for them to decide the importance to be given to climate change in a particular decision. Our amendment provides for a statutory duty that would make it clear that climate change should be a material consideration, with planning weight in the decision-making process—that is the crucial point.

This is not a novel concept in planning. Statutory duties giving planning weight already exist in relation to listed buildings. Our amendment was modelled on Section 66 of the Planning (Listed Buildings and Conservation Areas) Act 1990, which gives considerable importance and weight—“special regard”—to the preservation of listed buildings in the planning system. It then sets out in guidance, in the NPPF, how this duty is to be interpreted when making planning decisions. This tried and tested model could be used to include a similar climate change planning duty in the Levelling-up and Regeneration Bill.

As the Government are currently reviewing the NPPF and have not yet published the revised version of that guidance, this is the ideal time to insert such a duty, provide that guidance in the NPPF, and ensure that our planning system and new development do more to contribute positively to the achievement of our climate and nature targets. Importantly, we would have a statutory duty but it would be for the Government to decide on the specifics of how this would be implemented within the guidance set out in the NPPF. It would elevate climate as a consideration in the decision-making process, but it would maintain that important flexibility for decision-makers.

There are many examples of why this is needed and the benefits it would bring. UK clean power has been world-leading, but the planning regime currently in place means that just two onshore wind turbines were built in England in 2022, major offshore wind projects are stuck waiting for planning approval and thousands of new homes continue to be built on flood plains. Local plans to create the sustainable and economically vibrant places we all want to live in are being held back by planning barriers and inconsistent decision-making. The Committee on Climate Change—the CCC—the Skidmore review, the CBI, and businesses in the construction and building sector all agree that reform is needed. I was grateful to see 21 past presidents of the Royal Town Planning Institute supporting the amendment before us today—they are the people responsible for implementing this.

--- Later in debate ---

Reverting to my initial remarks on Amendment 191, I live in hope that what I have said provides the reassurance necessary for the noble Lord, Lord Ravensdale, to withdraw that amendment, and for the other amendments in this group not to be moved when they are reached.

[Lord Ravensdale (CB)]

My Lords, I listened very carefully to what the Minister said, but I believe that it has highlighted some of the gaps that remain in the approach the Government are taking. For example, he put a lot of emphasis on local plans and how they will help to drive this down through the planning system, but many local authorities do not have those plans or have very out-of-date plans—there has been a lot of research done on that. That flow down to individual planning decisions is not there. That illustrates the nature of the problem and why there needs to be a joining-up of all these approaches, and a statutory duty.

The noble Earl also mentioned mitigation. We are basing this around a tried and tested approach; with heritage buildings, we are maintaining flexibility. All we are doing is saying that climate considerations must be of increased priority compared with other factors—that is what we are trying to get across—while maintaining the flexibility in the planning system. As the noble Lord, Lord Deben, said, it is absolutely vital that our planning system supports climate mitigation and adaptation. This really is an enabler that sits at the heart of the whole system.

I recognise the work that the Government are doing; there is much more to be done here. I am grateful to all noble Lords who have spoken in support. I wish to test the opinion of the House.

--- Later in debate ---

[Lord Young of Cookham (Con)]

My Lords, I have added my name to the amendments tabled by the noble Lord, Lord Crisp, and commend his tenacity in pursuing this issue through his Private Members’ Bill and all the stages of this legislation. I shall add a short footnote to his speech.

After the debate in Committee and the very helpful meeting that we had with Ministers, on 25 May the Minister wrote a comprehensive nine-page reply taking the objectives of the amendments one by one and outlining how, in the Government’s view, existing provisions reflected them. We can discuss whether there is total alignment between current provisions and what is in the amendments, but the letter asserting this and existing statements from the Minister in our debates indicate that there is not a lot of distance between what the Government say that they want and what is proposed, which would help to bridge the gap that the right reverend Prelate has just referred to.

The letter dated 25 May said: “Following on from our meeting, I thought that it would be helpful to set out where the principles of healthy homes are already being considered and addressed through existing laws, systems, policy and guidance”. I want to make two points, picking up the key objections to the amendment that were made by my noble friend Lord Howe in his reply to the debate on 27 March. He said, referring to the noble Lord, Lord Crisp:

“Where we had to part company with him—and, I am afraid, must continue to do so—was on the extent to which new legislation should duplicate legal provisions already in place, and, to the extent that it does not duplicate it, how much more prescriptive the law should be about the way in which new housing is planned for and designed”.—[Official Report, 27/3/23; col. 76.]


On the first objection, I would prefer “consolidate” to “duplicate” to describe the impact of the amendments. Annex A to the letter dated 25 May explains that the relevant policies in the amendments are set out in no less than 11 groups under the heading “Healthy Homes Principles”. These groups in turn referred to 28 different chapters or clauses in building regulations, design codes, the NPPF, planning legislation and orders. The amendment brings all those provisions together under one overarching umbrella and provides what is currently missing: namely, a clear statement of government policy on healthy homes all in one place, breaking down the silos between all the government departments involved—the Department of Health and Social Care, the Home Office, the Department for Transport, the Department of Energy and Climate Change, Defra and DLUHC. The 28 different references would then have a coherence which is lacking at the moment and which would be embodied in the statement that the Secretary of State has to make, underlining the commitment to healthy homes.

The second objection was that the amendment was prescriptive. However, the wording of paragraph 4 in the new schedule proposed in Amendment 191B gets round that objection in that it uses “should” instead of “must” throughout. The only compulsion is in paragraph 1, which obliges the Secretary of State to prepare a statement in accordance with the proposed new schedule. The groundwork for this has already been laid by the noble Lord, Lord Crisp.

I hope that my noble friend will reflect on these points and that his customary emollience will go one step further into acquiescence.

[Lord Ravensdale (CB)]

My Lords, I will speak to Amendment 280. I thank my supporters, the noble Baroness, Lady Hayman of Ullock, and the noble Lords, Lord Best and Lord Lansley. I also thank the noble Baroness, Lady Scott, for her engagement with me on this issue over recent months and for her letter outlining the position of the Government.

I will focus on the changes to the amendment since we were in Committee, where we highlighted the magnitude of the issue of embodied carbon, with 50 million tonnes of CO₂ equivalents a year—more than aviation and shipping combined, so it is a significant amount of emissions. When we consider the effort and investment that is going into some of these other areas, it points towards the need to do a lot more on embodied carbon.

We also set out that industry is ready. On an infrastructure-related bid that I am currently working on for the private sector, we are looking to set targets for embodied carbon and assess it in the design phase, something that we now do almost as a matter of course. However, regulation needs to catch up, to ensure that this is applied consistently and to seize the wider sustainability and economic benefits of this change applying across the whole of industry. Our amendment focuses purely on the initial reporting stage, whereby industry will be mandated to report embodied carbon for all new construction projects above a certain size; the subsequent stage, using data gathered in the initial stage, would be to set out actual regulated limits for embodied carbon in buildings.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Consideration of Commons amendments
Monday 23rd October 2023 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, I have listened to what the noble Earl has said today and what he put in his recent letter to us, and also to what was said by the Minister in the other place last week. The Minister will forgive me if I am not placated by the meagre shift from no consultation at all if we can get away with it to Motion L, which is as little consultation as possible so that we can say we have listened. That is what it feels like, sadly. It is hugely disappointing to see that, while the Government’s amendment in lieu does indeed put public consultation for new NDMPs on a legal footing that cannot be negotiated away, there is still no agreed consultation and scrutiny process enshrined in the legislation. For us, that is the key point.

The scope, level and duration of the consultation that this and successive Governments can use is not defined in the Bill, nor in the accompanying regulation. Most importantly, the Government’s amendment in lieu makes no specific mention of parliamentary scrutiny, which both Houses and the relevant Select Committee had called for. As the noble Earl has said, we understand that individual parliamentarians or committees can indeed participate in consultations, like any other citizen. However, without specific provision, the Bill does not require any parliamentary oversight of approval before NDMPs can come into force.

It is worth reminding ourselves that NDMPs are a new and very radical departure from the current system. I am surprised because, if NDMPs are going to do the heavy lifting in order to streamline and simplify the system, as is often quoted and claimed by Ministers, surely they need to be heavily scrutinised and tested. If they are going to do the job that the Government want them to do and work effectively, I cannot understand why the Government would risk them going forward into law without being test-driven properly through Parliament.

We have all seen the impact of what has been happening recently, with ministerial announcements on the hoof and the very recent arrival of the “refreshed”—I believe that is the word—NPPF. It has thrown the planning system into chaos, with plans withdrawn or paused, and planners not knowing what to do or what to take account of. Similar things will happen again if we do not know what these NDMPs contain. They are currently a blank piece of paper.

In response, my modest amendment is necessary to ensure that the national planning policies for residential and other kinds of development—because, after all, they will take precedence over local policies and will be applied directly by the Secretary of State on called-in applications—are given a similar level of parliamentary attention as infrastructure policies, as surely they should be. My question to the Minister is: why not?

The reality of this offered consultation is undefined in the Bill and is not provided for by the regulations. It is completely at the Secretary of State’s discretion. We on these Benches, the RTPI, the CPRE, and some of the more than 30 professional bodies and groups that form the Better Planning Coalition believe that, given the new and radical nature of NDMPs, that is both unwise and unacceptable. I beg to move.

[Lord Ravensdale (CB)]

My Lords, I declare my interests as a director of Peers for the Planet and as a project director working for Atkins. I will speak to Motion M1. I thank the Minister for the time he set aside to explain the government position on this and attempt to reach a resolution.

Planning has dominated much of the national conversation in recent months. We heard in all three party conferences about the need for planning reform and for clarity and consistency in the planning system to help unblock critical infrastructure and homes, and to empower local authorities to play their part in the net-zero transition. Planning is absolutely central as an enabler to net zero, as was set out eloquently by many noble Lords on Report—so I will not repeat those arguments. I know that the Government get this; they are relying in the Bill on a plan-led system and on incorporation of climate considerations in local plans, and, perhaps in the future, on national development management policies.

There are three issues to highlight with this plan-led approach. First, the Committee on Climate Change has found that:

“Most local plans do not acknowledge … the challenge of delivering Net Zero and need significant revision”.


Most local plans are long out of date—some were made in the last millennium—and only around 40% have been adopted in the last decade. We know all about current pressures on local authorities and their ability to devote and manage resources in these areas. Secondly, we are yet to see the national development management policies and any climate provisions they may contain; they are still a blank sheet, as the noble Baroness, Lady Thornhill, set out. Thirdly, even if all local authorities had a robust local plan, backed up by NDMPs, there will still be an absence of a statutory duty for decision-makers. No matter how robust a local plan informed by national policy may be, it will still be for the individual decision-maker to weigh up all material considerations, with no duty to attribute any planning weight to climate change in the decision-making process. Therefore, rather than a golden thread running through the planning system, we have a somewhat worn and frayed thread that is severed as soon as we get to the decision-making process.

The way to address this and to achieve the ends the Government want is to introduce a new duty that raises the importance of climate change in the hierarchy of considerations but which would still retain flexibility for decision-makers. My amendment would not duplicate existing policy and statutory requirements but rather expand the existing climate duty, which has existed in relation to planning since 2008 and which has been rolled forward in this Bill to decision-making. The amendment would not remove local discretion, as the Government fear, but rather retain the ability of planning authorities to tailor planning decisions to individual circumstances. It would retain the flexibility of planning balance and judgment, which is now well established, and not mean that other planning matters could not be taken into account.

Rather than causing issues of litigation, as the Minister said, the amendment would provide clarity and set a clear direction of travel for planners and developers, leading to greater progress for new developments towards our climate goals. It is derisked by being based on an established duty, the meaning of which has been tried and tested in the courts. It does not raise any novel legal issues, because the principle of special regard is well understood in planning. Therefore, it really should be uncontroversial. It has broad, publicly stated backing across built environment businesses, local government, built environment professionals, including 22 past presidents of the Royal Town Planning Institute, and environmental NGOs.

To finish, I have a number of questions for the Minister. First, can he clarify and expand on what he said earlier about whether the draft NDMPs will include provisions setting out the way in which they will ensure that plan-making and planning decisions consider and contribute to climate change and environment targets? Secondly, can he provide assurances that changes will be proposed to the NPPF to make it clear that planning decisions should take into account the climate impacts of development proposals? The current NPPF does not include that level of clarity. I give notice that I may test the opinion of the House depending on the responses from the Minister.

[Lord Crisp (CB)]

My Lords, I will speak to Motion N1 in my name. In doing so, I express my gratitude to the noble Lords, Lord Young of Cookham, Lord Blunkett and Lord Stunell, who put their names to a similar amendment on Report. I also express my gratitude to the noble Earl, Lord Howe, and the noble Baroness, Lady Scott of Bybrook, with whom I think I have had three meetings over the last few months to discuss all this. They were extremely courteous but, in the end, we did not manage to reach any agreement.

The original amendment that noble Lords supported on Report was that there would be a duty on the Secretary of State—to put it in shorthand—to ensure that all new homes and neighbourhoods promoted health, safety and well-being, and set out some principles about what this meant. In response to what the House of Commons voted on and the advice I had from the noble Earl, Lord Howe, I have taken out the principles in putting this forward and left instead the duty on the Secretary of State to ensure that the planning and regulation of the built environment should promote health and well-being. It is a very simple, straightforward point in its way, and it leaves the Secretary of State complete discretion as to when they bring this into effect and as to precisely what principles they work for in doing that. However, my point is simply that this is nowhere in planning, and the idea that the built environment should not in some way promote health, safety and well-being seems extraordinary. It is equally extraordinary that in this entire levelling-up Bill there is no reference to the climate crisis, as we have just heard, or indeed to the public health crisis, which I think we are all familiar with. This is an attempt to put health and well-being at the centre of planning.

In response to that, the Government have said three things. First, in the formal minute, they said that this breached the financial privilege of the Commons. That is entirely up to the Commons to decide. I subsequently reduced and removed the principles that I saw as perhaps the area the Commons thought breached that privilege. I understand from the noble Earl that the clerks still consider that it breaches privilege, but that is for the Commons to decide; they can still debate it and, if they choose, put it to one side and record the fact in something called “the journal”, in taking it forward. However, as I will say in a moment, building poor housing is a false economy.

The second point the Minister made was that much of what was in the original amendments was covered by other policy. That is entirely true, and I entirely respect the fact that the noble Earl and the Government want to improve the quality of homes and housing. However, it is important that we have some legislation around that and not just policy; nor does that put health and well-being at the heart of the policy. Most of it is not mandatory, and none ensures that health and well-being are fundamental to creating healthy homes and neighbourhoods.

--- Later in debate ---

Moved by

[Lord Ravensdale]

Leave out from “House” to end and insert “do insist on its Amendment 45.”

[Lord Ravensdale (CB)]

My Lords, I hoped for some further movement from the Government on this vital issue. I wish to test the opinion of the House.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Consideration of Commons amendments
Wednesday 25th October 2023 Lords Chamber

I thank all in the House who supported the amendment in its original and revised forms, and my colleagues in the other place, including my honourable friend Peter Aldous, my right honourable friend Theresa Villiers, and others who spoke in support of this. That this humble, modest amendment is the thin end of the wedge, where all meetings would go from being totally physical to totally virtual, is a little of an exaggeration. While not wanting to test the patience of the House further by pressing this to a vote, I express a little disappointment and sadness that the Government have not seen fit to move on this occasion.

[Lord Ravensdale (CB)]

My Lords, I shall speak to Motion B. I declare my interests as set out in the register. I thank the noble Baroness, Lady Hayman of Ullock, the noble Lords, Lord Lansley, Lord Teverson and Lord Hunt, as well as the noble Baroness, Lady Hayman, all of whom supported the amendment at earlier stages.

I particularly thank the Minister for coming back with the government amendment. Although it does not give us everything that we asked for, it constitutes great progress in this area. It ensures that climate mitigation and adaptation will be considered in the national development management policies, and, looking at the wider context of plans in the Bill, will ensure that it is included and will then be a compulsory part of decision-making. Therefore, it goes some way towards giving us what we were after, and I am grateful to the Minister for coming back with that substantive amendment.

I have one small point. In the absence of a definition of climate change mitigation and adaptation in the amendment, perhaps the Minister might consider including the targets, with reference to the Climate Change Act and the Environment Act, in the Explanatory Notes to the Bill.

I welcome the comments made by the Minister in the other place that the Government intend to do a fuller review of the NPPF, to ensure that it contributes to climate change mitigation and adaptation as fully as possible, following Royal Assent. I hope the Government seize the opportunity here to strengthen chapter 14 of the NPPF to specify that, in determining planning applications, decision-makers must take account of climate change mitigation and adaptation.

The government amendment embedding climate and the environment in planning decision-making will have a great effect on getting clean infrastructure and sustainable homes built right across the country. Importantly, it will also do much to empower local authorities and regions to play their part in the net-zero transition, which they all want to do. We still see a need for further legislative work in this area—particularly on a move towards a statutory duty, as we propose—but, again, I am grateful for the progress that has been made.

Lastly, I thank all noble Lords who voted for my amendment and helped to get it over the line in a very close vote on Monday.

[The Earl of Lytton (CB)]

My Lords, I shall comment on each of the amendments. First, I commiserate with the noble Baroness, Lady McIntosh of Pickering. I do so as a past president of the National Association of Local Councils, the parent of parish and town councils in this country, which would dearly have loved to have had the facility to vary the way in which it deals with meetings. I am sorry that the Government have not seen fit to acquiesce to any of this. The Minister suggested that the measure went too far and that it would open the floodgates to local government holding virtual meetings as a matter of course. Were that his fear, the Government’s fear or that of the other place, it seems to me that it would have been perfectly possible to come back with a proviso that the Secretary of State would make regulation.

One matter that has never been explained to my satisfaction is the juxtaposition—the fact that, by definition, accountability is somehow measured by physical presence. I do not get that, and I do not think there will be many Members of this House present today who will get it. This issue will come back through sheer force of practicality and necessity. We have to move into the modern age, in that sense. I will leave my comments on that there.

I congratulate the noble Lord, Lord Ravensdale, on his success in getting what I can only describe as the obvious provision into this Bill, namely that we have to take climate change seriously and that it underpins everything that we do. To that extent, it was inevitable—if not in this Bill then in very short order—that something would have to be included somewhere in primary legislation, but I congratulate him on his persistence in getting this far. Even if it is not the whole bun, it is certainly more than a currant in the bun and he is to be congratulated.

In that context, there are other things in the Bill that have been left on the cutting- room floor. I am sorry that the noble Lord, Lord Crisp, is not here at the moment. His amendment on healthy homes is about something that is inevitably going to come back. It is not going to disappear; this is going to have to be the benchmark whereby society expects homes to be created.

The series of amendments which I have been trying to get through unsuccessfully was to do with building safety remediation. The fact is that so many leasehold homes are unprotected yet are faced with remediation costs and liabilities, without which they will not get insurance at any sensible cost. These homes are not excluded from the necessity of remediation by virtue of their height, whether it be 11 metres and below or above 11 metres, because the Building Safety Act 2022 says that it will cover all these other buildings.

It is simply not correct that somehow these homes escape the inevitable consequences of that. That is going to come home to roost because there is an entire market sector—an entire financial sector—that is dependent upon that being resolved. If it is not resolved now in this Bill, as it clearly will not be, then it will come back in short order because this is a matter of an existential threat to leasehold tenure, or indeed whatever tenure there might be instead of leasehold. If you have a building in multiple occupation, where different parts are apartments, this problem is going to come home to roost so long as there are defects caused in the original construction and the constructor and developer are able to walk away from that liability.

In congratulating the noble Lord, Lord Ravensdale, on getting his motherhood and apple pie amendment passed, let me remind your Lordships that other bits that have been left behind are also going to come back and haunt us as things go forward.