Neighbourhood Planning Bill

Lord Taylor of Goss Moor Excerpts

3rd reading (Hansard): House of Lords
Wednesday 15th March 2017 Lords Chamber

Moved by

[Lord Taylor of Goss Moor]

2: After Clause 14, insert the following new Clause—
“Development of new towns by local authorities
(1) The New Towns Act 1981 is amended as follows.(2) After section 1 insert—“1A Local authority to oversee development of new town(1) This section applies where the Secretary of State is considering designating an area of land in England as the site of a proposed new town in an order under section 1.(2) The Secretary of State may, in an order under section 1, appoint one or more local authorities to oversee the development of the area as a new town.(3) But a local authority may only be appointed if the area of land mentioned in subsection (1) is wholly or partly within the area of the local authority. (4) The Secretary of State may by regulations make provision about how a local authority is to oversee the development of an area as a new town.(5) Regulations under subsection (4) may, for example—(a) provide that a local authority is to exercise specified functions under this Act which would otherwise be exercisable by the Secretary of State, the appropriate Minister or the Treasury;(b) provide that a local authority is to exercise such functions subject to specified conditions or limitations;(c) provide that specified functions under this Act may be exercised only with the consent of a local authority;(d) make provision about the membership of a corporation established under section 3, including the proportion of the members of the corporation who may be members of or employed by a local authority;(e) modify provisions of this Act;(f) make different provision for different purposes;(g) make incidental, supplementary or consequential provision.(6) In subsection (5)(a) the reference to “functions” does not include a power to make regulations or other instruments of a legislative character.(7) Where two or more local authorities are appointed in an order containing provision by virtue of subsection (2), the Secretary of State may in that order provide—(a) that a specified function is to be exercised by a specified local authority, or(b) that a specified function is to be exercised by two or more specified local authorities jointly.(8) In this section—“local authority” means—(a) a district council,(b) a county council, or(c) a London borough council;“specified” means specified in—(a) an order containing provision by virtue of subsection (2), or(b) regulations under subsection (4).”(3) In section 77 (regulations and orders)—(a) in subsection (2), after “which” insert “, subject to subsection (2A),”, and(b) after subsection (2) insert—“(2A) A statutory instrument containing regulations under section 1A(4) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.””

[Lord Taylor of Goss Moor (LD)]

My Lords, this amendment is tabled in my name and that of the noble Lords, Lord Best and Lord Lucas, who have given great support on this issue during the passage of the Bill, as have noble Lords on all sides of the House. On Report, there was a very welcome commitment from the Minister to return to this issue.

I should draw attention to my interests. I advise many projects, including new settlement projects. I am a visiting professor of planning at Plymouth University, and over the years I have worked with government bringing forward policy changes.

This amendment is aimed at empowering local government communities to bring forward settlements of the highest quality, ensuring that the value that comes from development taking place is captured to create great places and deliver wonderful facilities for those places and is not captured in excessive profits for landowners or developers, and ensuring that the Government’s objectives in bringing forward the garden villages, garden towns and garden cities programme are met in terms of the delivery of what comes forward, with opportunities for small builders, self-builders and contract builders to grow and deliver in new ways better quality, more affordable homes and all the facilities in these places to create sustainable and vibrant 21st century communities.

Why have I tabled this amendment? At the start of the passage of the Bill, I made the point that in the Neighbourhood Planning Bill the Government accepted proposals that I and other noble Lords brought to the House to simplify the process of using the New Towns Act. The New Towns Act is essentially from a period when central government was much more involved in local delivery and when that was accepted. We are now in an era of localism, yet the New Towns Act gives all the power to the Secretary of State who has no capacity to hand over the role of the corporations that will be set up to deliver these new settlements to the local councils that would bring them forward. In the modern world, it is not right that in seeking to deliver a new settlement through a new town corporation to ensure that it is delivered at quality and pace to meet local needs a local council would surrender all the powers to the Secretary of State.

I do not think that the Secretary of State would want to have power over every penny of expenditure, the power of planning, because these bodies would get planning powers, and the power of controlling the assets and, potentially, of future disposals of those assets. It is far more likely that local authorities and communities will be comfortable with this process if they have not simply identified the site and taken the decision that it should be brought forward. When it comes here and the necessary process is gone through in Parliament to approve it, they should be confident that those powers will be exercised locally and that in the long run the assets will be controlled locally for the benefit of the people who live there and the wider community.

When we first debated this, the Minister understandably said that the Government needed to think about this and work it through, but the White Paper made it clear that the Government agree with this process. I have been delighted that the Government have taken forward this policy, which I was very much involved in developing. On the back of the White Paper, we came back. I have to thank the Minister for his positive response on Report and for allowing me to talk to officials in working through something that might now work positively for the Government and that could be incorporated into this Bill.

I shall briefly speak to some of the detail. The principle of the amendment is to give the Secretary of State the power to appoint one or more local authorities in the designated area of the new town to oversee the delivery of the new town and the new development corporation. This is a localising measure. It hands really strong power to communities to ensure that new towns are delivered at quality.

The functions that would be transferred to local authorities for this purpose would be set out in secondary regulations subject to the affirmative procedure, so fully respecting parliamentary process. Since new towns may straddle the boundary of more than one authority, more than one authority could be appointed. This will make it much simpler in those circumstances to bring forward and deliver proposals. The Secretary of State would be able to set out how those powers would be transferred to those local authorities, for joint exercise or divided between them. Changes to the New Towns Act may be needed to allow this to work on subjects such as asset control. The purpose of the power to modify the Act would be to make the principle of local accountability work.

Therefore, this fits with the agenda that Members across the House have outlined, to bring many more homes forward to meet local needs and to capture the value of land in order to create supplements. In that way, we would not look to the taxpayer to fund the school, build the surgery, provide for shops or build a real community. The value of the land would be put into the process of making this work.

At the moment, where projects are approved, the risk is that they are sold on through the chain of speculators, developers and housebuilders. Then, by the time that they are delivered, on grounds of viability because of the price that has been paid for the land or because of the model of the housebuilder, none of the promises made at the start to the local community is delivered. The use of the development corporation as proposed would guarantee that what had been promised to people at the start would be delivered to people at the end.

This approach would open the opportunity to use compulsory purchase powers under the New Towns Act. These could be used where necessary, but normally purchase would be done by treaty in consultation with landowners. The point would be to reach a price that allows the delivery of the quality of place that has been promised. That promised quality would then be locked in through the development corporation process, rather than being at risk of never being delivered. I am afraid that I can take noble Lords to many places where much was promised and far too little of those promises was delivered. There are places where it has been done well, but only where there has been a landowner genuinely committed to it.

That partnership would, therefore, be available. Generally, I imagine that it would be done through joint venture and partnership and agreement but none the less locking in that quality. Where that did not happen, powers would be there to achieve the quality of place that is needed.

Above all, this is about three things. One is keeping it honest and delivering what is promised. That is essential if there is to be any credibility around the delivery, not just of housing but of communities and neighbourhoods, that this approach of garden villages and towns promises.

Secondly, it is critical if we are to move from a supply of new homes inadequate to meet people’s needs that results in ever-accelerating prices beyond what is affordable. If we are to create the 250,000 to 300,000 homes each year that we need, rather than 150,000, those extra homes need to be delivered to a higher quality in places that they do not ruin. Rather than encircling existing historic towns and villages with endless bland housing estates, we need to deliver something better in places where people can accept them and where the public will support the programme. If we try to raise the numbers but deliver inadequate quality, as too often happens currently, there will simply be a public revolt and we will not get the houses delivered.

Finally, it is also critical that we understand that the big housebuilder model does not allow big housebuilders greatly to increase the numbers being delivered. They will not do so even if they wish to because of the way in which they are financed and the way in which publicly assisted companies are priced. The only way to deliver the increased numbers—and the increased quality—is to build up new entrants, whether housing associations, growing SMEs, self-builders or overseas developers of the highest quality. They all need places to build without the current tortuous process of land options and land banking.

These are the mechanisms to deliver it. But it will happen only if we have a very clear understanding that this means delivering great places to go with the plots to build them on, not just handing this over to the people who build houses and expecting them somehow to create great places. We know they deliver housing estates, but they do not deliver the quality of places demanded by people, which is what will give public acceptability to the programme.

This amendment will be the critical factor in creating local empowerment to deliver what will be a genuine game-changer. I am very grateful for the support there has been on all sides of the House for this and to the Government for the positive way in which they have responded to the case. I beg to move.

[Lord Best (CB)]

My Lords, I will speak briefly to the amendment, to which I have attached my name. I commend the noble Lord, Lord Taylor of Goss Moor, for following through on our earlier amendment and indeed for all his good work in promoting new garden villages and garden towns. This amendment is not as definitive as the one we discussed on Report, but it should achieve the same outcome, namely of placing local authorities centre stage in the creation and oversight of the new corporations that will be responsible for these major new settlements. This will greatly improve the prospects of these much-needed new communities getting off the ground.

I was delighted to hear today that the Local Government Association—I declare my interest as an LGA vice-president—is fully supportive of the amendment. If accepted, the amendment will mean it will be much more likely that a number of successful, well-designed, mixed-income new settlements will be developed over the years ahead. That would be of enormous benefit to many thousands of households, which will have great new places to bring up their families and live their lives, as well as to the nation as a whole in reducing acute housing shortages. I have every confidence that the Minister will find the amendment entirely acceptable, and if so, I congratulate the Government. Following the housing White Paper, and a number of the helpful measures in this Bill, I greatly welcome this further step in the Government’s creation of a much-improved set of national housing policies. I strongly support the amendment.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I thank noble Lords who have participated in the debate on Amendment 2. I thank particularly the noble Lord, Lord Taylor of Goss Moor, for moving it, supported by the noble Lord, Lord Best. I thank them both and indeed other noble Lords for their time and commitment on this issue and for the opportunity to discuss this matter. We have discussed it both in Committee and on Report, and I have been heartened to hear the support for the measure from across the Chamber.

This amendment seeks to support the creation of locally led garden towns and villages by enabling the responsibility for any development corporation created under the New Towns Act 1981 to be transferred to a local authority or authorities, covering all or part of the area designated for the new town or village. On the point made by my noble friend Lord Porter, I think the definition is broad enough to include unitary authorities; that is certainly the intention. On a different point about combined authorities that was made by the noble Lord, Lord Beecham, of course we can create mayoral development corporations in relation to the new combined authorities—we did so with Teesside a couple of weeks ago—so that could well be part of the deal with the new authority. However, along with other noble Lords, I would want to think carefully in conjunction with the combined authorities as to whether they wanted to take that power on. I think I am right in saying, although I may be wrong, that the designated garden towns and villages do not come within the purview of what at the moment is projected as a combined authority, but it is a point well made. Therefore, I would like to go away to ponder this and give a fuller response to the noble Lord, if I may, copying it to noble Lords who participated in the debate and putting a copy in the Library.

The aim of the amendment is entirely consistent with those of the Bill. The Government certainly support it and I thank in particular the noble Lord, Lord Best, for his pre-emptive congratulations on the Government’s support. The amendment is very consistent with the approach of the Government, the department and the recently published White Paper in relation to the importance of localism.

I take the point of the noble Lord, Lord Mawson, about the importance of ensuring that all local authorities have the right attitude to these things. We hope that is accomplished through elections but the broad principle of it being done locally must be right. That has been echoed throughout the contributions on this legislation as it has gone through the House: local is better. We know that a number of local authorities—for example, those in north Essex—are interested in taking advantage of the new opportunity that the amendment would provide to support a new generation of locally led garden towns and villages, the 21st-century heirs to Letchworth and Welwyn.

I also welcome the support of the Local Government Association and the kind words of my noble friend Lord Porter for the principle behind the amendment. I am very pleased that it commands wide support throughout the House. This is a simple principle; making it work in practice will require detailed modifications to the New Towns Act, which my department will develop. We will want to keep in close contact with the noble Lords, Lord Taylor and Lord Best, both of whom I thank very much for the impetus and enthusiasm they have given this and the expertise they bring to the table. I pause at this stage to pay tribute to their work as effective champions of this issue throughout discussions on the Bill.

In conclusion, I am very pleased to support the noble Lord’s amendment, which will help to fulfil an important White Paper commitment.

[Lord Taylor of Goss Moor]

My Lords, I shall respond very briefly. I thank the noble Lord, Lord Best, for all his support and encouragement, not only on this Bill but previously. I should also thank my noble friend Lady Parminter, who was in the Chamber but has had to go, for moving an amendment for me on Report that enabled this matter to be brought forward.

We have had a promise from the Minister to come back on the point made by the noble Lord, Lord Beecham. I should make it clear that the intention is absolutely that more than one local authority can be involved. We need to explore the mechanism for that and hear what the Minister has to say, but the ability for more than one authority to come together is here. I therefore imagine that in practice nothing would stand in the way of the point that was raised.

On the point of the noble Lord, Lord Porter, about unitary authorities, the intention is that they should be covered. Indeed, having worked very hard to support the creation of a unitary authority in Cornwall, I would be horrified if I had managed in any way to get the drafting wrong on that point, but I believe it is covered.

I absolutely take the point of the noble Lord, Lord Mawson, and thank him for his support. In my comments, I talked about the fact that although the mechanism is here for local authorities to take a leadership role, the expectation is absolutely for a partnership approach. I thought quite hard about how one might look at the structures of a corporation. It is very important that this is not a 1950s or 1960s view, whereby a local authority chief executive is appointed and gets on with the job. The world has moved on since then. My view has always been that you need, as we see in Europe and in the States, a master developer and a master planner; you need expertise and business experience.

I chair a joint strategic board for the Carclaze garden village, which has been many years in gestation. The key thing has been to bring together the local authority, the private sector-led development body and the landowner in a partnership. That partnership has been incredibly successful. It took the development through the recession after 2008. The developer is Egyptian-owned, so the partnership took it through the storms of the Arab spring in terms of its financing. It is now in front of planning, and I think will be delivered. That has been possible only because we have built a really strong partnership between all parties, including the private sector, so there is a very deep experience of people creating fantastic places for business reasons, as well as the very important experience of the council representing people and understanding the processes of local government. There has been a great partnership with the HCA as well.

I could not agree more with the noble Lord’s comments. That is why, although this provision uses the powers of the New Towns Act, it is very much in a 21st century setting—and that is not just about localism; it is about partnership between all the stakeholders. I also make the point that it is about holding people to promises, because too often people see wonderful designs at the stage when something is proposed, but the moment when it is allocated or an outline is commissioned, it is traded and traded and, somehow, it gets watered down and not delivered. That experience is important for business, too.

[Lord Mawson]

I welcome that, and I absolutely agree with the noble Lord. The Civil Service finds it very hard to understand—and I think that the noble Lord is saying the same thing—that what really matters is having people around the table from different sectors who care about the place and are going to stay on this journey a very long time. It takes a long time to deliver these things and it is very difficult, but it is all about having the right people—people who care.

[Lord Taylor of Goss Moor]

In every case when I have advised on new settlements coming forward, I have advised local authorities, councillors and communities but also those promoting the project to establish the basis of the joint venture and partnership for delivery of the original objectives and to hold people to it. It is only by getting everyone around the table jointly to discuss that—again, that is the case at Carclaze—at every key stage, whether in looking at the master plan and working out how to deliver affordable housing and quality, wherever the ultimate power may lie to take the decision, that we have all been jointly involved in coming to the right conclusion. That is what these bodies achieve; they are, ultimately, about keeping it honest, but they are also about getting it delivered. The noble Lord clearly has that experience in the Olympic context, and we need that experience in each of these initiatives.

The last thing that we want is to create bland housing estates in the countryside, not great communities. If we do the former, the project will die very quickly, and public enthusiasm will disappear; if we get it right, people will clamour for what are actually the intentions of the 1947 planning Act, when people talked about stopping suburban sprawl, rejuvenating cities and towns and building new communities to meet the needs of those who could not be housed. This is about returning to those objectives and putting back under control the suburban sprawl that we see once again too often around our historic towns and cities. It is a new option and a better one.

I thank the Minister very much for his supportive comments. We have worked very closely on getting this right.

Amendment 2 agreed.