Levelling-up and Regeneration Bill (Eighteenth sitting)
Marcus Jones ExcerptsTuesday 6th September 2022
(2 years, 3 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 6 September 2022 - (6 Sep 2022)
The Chair
You are all very welcome. I am glad that our Galleries are swelling with even more Members; that is excellent. Welcome back after the recess, Committee. I have a few preliminary announcements. Please switch off your electronic devices or at least put them on silent. No food or drink is permitted, except of course for the water on the tables. If you wish to remove your jacket, please feel free to do so, as it is very warm today. Please provide your speaking notes to Hansard colleagues; you know the email address. And we will get right down to business.
Clause 99
Development commencement notices
The Minister for Housing (Mr Marcus Jones)
I beg to move amendment 74, in clause 99, page 116, line 27, leave out from beginning to “for” in line 28 and insert
“planning permission has been granted under section 70 or 73”.
This amendment corrects a cross-reference.
Mr Jones
As ever, it is a pleasure to serve under your chairmanship, Mr Paisley. I hope that colleagues had a good summer and, in many ways, are suitably refreshed and raring to go with our consideration of the Levelling-up and Regeneration Bill in Committee.
These three amendments are aimed at ensuring that proposed new section 93G of the Town and Country Planning Act 1990, which is created by clause 99, works as intended. The amendments propose two changes. First, new section 93G does not refer to the correct section of the 1990 Act as the basis for the grant of planning permission. Therefore, the two technical corrections set out in Government amendments 74 and 75 are considered necessary to make clause 99 legally accurate. Secondly, to ensure that references in new section 93G concerning when new development has begun have the same meaning as those elements set out in existing section 56(2) of the 1990 Act, a consequential amendment is required. This is set out in Government amendment 76.
Overall, the amendments will ensure that clause 99 works as intended, without ambiguity. For those reasons, I hope that members of the Committee support them.
Amendment 74 agreed to.
Amendments made: 75, in clause 99, page 117, line 25, leave out “58(1)(b)” and insert “70”.
This amendment corrects a cross-reference.
Amendment 76, in clause 99, page 117, line 29, at end insert—
“( ) In section 56 (time when development begins), in subsection (3), after ‘92,’ insert ‘93G,’.”—(Mr Marcus Jones.)
This amendment adds a consequential amendment to section 56 of the Town and Country Planning Act 1990 (which determines the time when development begins).
Question proposed, That the clause, as amended, stand part of the Bill.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to reconvene after the summer recess under you in the Chair, Mr Paisley.
Clause 99 will insert proposed new section 93G into the Town and Country Planning Act 1990, as the Minister said. The new section will require those carrying out certain development types to serve a commencement notice to the relevant local planning authority before any development takes place. Such development notices will be required to outline the expected start date of construction, the details of the planning permission, the proposed delivery rate for the scheme, and other relevant information. The example in the explanatory notes accompanying the Bill suggests that this provision will most likely apply to large-scale residential schemes as a means, albeit a limited one, of preventing land banking and slow build-out by larger developers.
We welcome this sensible new duty. However, I would be grateful if the Minister provided further clarification as to what kinds of developments are likely to fall within the “prescribed description” bracket in subsection (1)(b) of the proposed new section and therefore be required to submit one of the new commencement notices.
Mr Jones
As I am sure the hon. Gentleman will appreciate, the description of the particular type of development he refers to will be dealt with in regulations and we will bring forward further details in due course. We will do so in consultation with both local authorities and industry.
Question put and agreed to.
Clause 99, as amended, accordingly ordered to stand part of the Bill.
Clause 100
Completion notices
Mrs Emma Lewell-Buck (South Shields) (Lab)
I beg to move amendment 170, in clause 100, page 118, line 31, at end insert—
“(3A) But notwithstanding subsection (3) the completion notice deadline may be less than 12 months after the completion notice was served if the local planning authority are of the opinion that—
(a) development has not taken place on the site for prolonged period,
(b) there is no reasonable prospect of development being completed within a reasonable period, and
(c) it is in the public interest to issue an urgent completion notice.
(3B) A completion notice may include requirements concerning the removal of any buildings or works authorised by the permission, or the discontinuance of any use of land so authorised, at the end of the completion period, and the carrying out of any works required for the reinstatement of land at the end of that period.”
This amendment would enable the issuance of completion notices withdrawing planning permission with a deadline of less than 12 months when certain conditions are met, and enable completion notices to require that building works be removed from a site or a site be reinstated to its previous condition.
Thank you, Sir Ian—Mr Paisley.
Matthew Pennycook
Very briefly, I congratulate my hon. Friend the Member for South Shields on this excellent amendment, which we support. She made clear that the problem she has highlighted of private plots lying derelict for extended periods of time with no real prospect of development being completed has a real impact on local communities. Allowing the 12-month completion notice deadline to be circumvented in the circumstances set out in the amendment, with the proportionate requirement set out in proposed new subsection 3B, is sensible and we urge the Government to consider it seriously.
Mr Jones
I listened closely and carefully to what the hon. Member for South Shields said. I am sure she knows that because of the role of Ministers in the planning system, I cannot discuss that particular situation in detail, but I can say that I am aware of such situations, even in my own constituency. I am sure there are similar situations across the country.
Amendment 170 relates to the proposed updated legislative framework for completion notices in clause 100. Those notices are an existing tool available to local planning authorities that can be served on developments that, in the opinion of the local planning authority, will not be completed in a reasonable period. We want to equip local planning authorities with the tools necessary to deal with sites that have experienced long periods of inactivity or slow delivery. That is why, through clause 100, we propose to modernise the procedure for serving completion notices to make them simpler and faster to use, giving more control and certainty to local planning authorities in the process. To achieve that, clause 100 will remove the need for a completion notice to be confirmed by the Secretary of State before it can take effect and allow for a completion notice to be served on unfinished developments sooner, providing the planning permission has been implemented.
Amendment 170 proposes two fundamental changes to clause 100. First, there would be a shorter completion notice deadline below the current 12-month minimum in certain circumstances. Those are where a local planning authority is of the opinion that development has not taken place on a site for a prolonged period; that there is no reasonable prospect that the development would be completed in a reasonable period; and that it is in the public interest to serve a notice.
While I support the intention, I remind the Committee that completion notices, when served by a local planning authority or the Secretary of State, must provide the recipient with an opportunity to complete the development. To put it another way, a completion notice requires a person to use or lose their planning permission. Therefore, that person must be afforded the chance to use the planning permission and complete the development before the granting of that permission is removed. Providing the opportunity to complete is a critical aspect of the procedure governing the use of completion notices and reflects the longstanding position that planning permission is a development right and that revoking that right should be subject to compensation.
Mrs Lewell-Buck
I thank the Minister. How long do developers have to complete if they are served a notice by the local authority?
Mr Jones
In the case we are talking about, the current minimum once a notice is served to use or lose planning consent is 12 months. Clearly, we think that that is proportionate in giving the chance for a development right to be used by the developer. The penalty for failing to complete the authorised development within a specified time period is the removal of planning permission for the unfinished parts of the development. The person served with a completion notice must have a reasonable period in which to finish development and avoid that outcome. As I have said, a period of 12 months is proportionate and gives developers a fair opportunity to deliver on their permission in full.
Mr Jones
I will in one moment. Half-completed developments can be complicated to complete. That minimum 12-month period is also consistent with other elements of the planning system and the approach to compensation. In particular, 12 months is the period given under section 108 of the Town and Country Planning Act 1990, where compensation is payable for the revoking of a planning consent granted under a development order.
Mrs Lewell-Buck
I thank the Minister for giving way again. What does he envisage would happen if somebody kept renewing their planning application? How is the Minister proposing to stop situations such as the one that I outlined in proposing this amendment?
Mr Jones
As I am setting out, there are a number of ways in which we will ensure that development gets built out as quickly as possible. That is important because, clearly, it is the expectation of communities for a planning consent to be followed through once it has been granted. I will continue to explain how that will happen, because the second change sought by the amendment relates to removing finished parts of a development, where a site could not be completed before planning permission was withdrawn, and restoring the land to its previous state.
I recognise the importance of being able to remove unfinished developments, and appreciate that the local planning authority should have the power to provide for that as a last resort. I remind the hon. Member for South Shields that powers are already available to planning authorities to seek the removal of unfinished developments. Section 102 of the Town and Country Planning Act 1990 enables local planning authorities to make a discontinuance order, which can, among other things, require discontinued use of land, alterations, or removal of buildings or works. Therefore, I believe the proposed change is unnecessary due to the powers that are available through existing legislation.
On that basis I hope that my comments have reassured the hon. Member and I hope, as she mentioned at the start of her comments, that she will not seek to divide the Committee.
Mrs Lewell-Buck
I do not seek to divide the Committee at this stage on this matter. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss that schedule 10 be the Tenth schedule to the Bill.
Mr Jones
As part of the measures in the Bill to provide greater transparency around the delivery of new development and to bring about the timely build-out of planning permissions, through clause 100 we will be speeding up, simplifying and modernising the framework for serving completion notices. The power to serve completion notices is available to local planning authorities in sections 94 and 95 of the Town and Country Planning Act 1990. The Secretary of State can serve notices under section 96 of the 1990 Act.
A completion notice may be served on a development that, in the opinion of the local planning authority, will not be completed in a reasonable period. The notice will set a deadline after which the planning permission will become invalid and, if development is not completed by that deadline, planning permission will be removed for any unfinished elements of the development. In effect, a completion notice requires a developer to use it or lose it.
At present, however, completion notices are rarely used, with only 13 notices served since 2011 and just three since 2014. This partly reflects the fact that they are, and should remain, a tool of last resort. However, local planning authorities should not be discouraged from using them where appropriate and where the existing process for serving notices is long, slow and unnecessarily complex. Completion notices, for example, cannot take effect unless until they have been confirmed by the Secretary of State. In practice, this requirement has added an average of three months to the process for the nine notices confirmed since 2011, the longest of which being over six and a half months.
Matthew Pennycook
Clause 100 would amend the provisions in the Town and Country Planning Act 1990 relating to completion notices. It does so by removing two requirements: that the Secretary of State must approve a completion notice and that the notice must be served only after the deadline for commencement of the planning permission has passed. We welcome these sensible revisions to the 1990 Act. I do, however, have two questions for the Minister, but I am more than happy for him to get back to me in writing if needed.
First, given that the changes sought by clause 100 are intended to work in conjunction with the new duty provided for by clause 99 on commencement notices, will the Minister explain why such notices are restricted to certain types of as yet undefined development, while the changes made to completion notice provision will continue to apply to all types of development? Secondly, subsection (2) of proposed new section 93H makes it clear that a local planning authority can serve a completion notice if it is of the opinion that the development will not be completed “within a reasonable period”—a power that in theory would allow the cases my hon. Friend the Member for South Shields just raised to be addressed in a timelier manner. Will the Minister clarify what is meant by “within a reasonable period”? If he cannot, can he tell us who will determine what it will mean in due course and whether there will be any limits whatsoever, given how ambiguous the phrasing is?
Mr Jones
On the first question, I will take up the hon. Member’s offer to write to him. To his second point, that reasonable period of time will be set out in guidance. The local planning authority will be the one to deal with the matter directly, rather than getting the Secretary of State involved. The authority will be able to determine how to deal with a particular situation by taking into account the factors relating to each development involved.
Question put and agreed to.
Clause 100 accordingly ordered to stand part of the Bill.
Schedule 10 agreed to.
Clause 101
Time limits for enforcement
Question proposed, That the clause stand part of the Bill.
Mr Jones
The Government are clear that effective enforcement action is important to maintain public confidence in the planning system. This chapter introduces a number of measures long called for by colleagues in this place to strengthen the enforcement powers of local authorities and to close loopholes. Local planning authorities presently have a wide range of enforcement powers, with strong penalties for non-compliance, to tackle such situations. While we believe that the current enforcement framework generally works well, we acknowledge that we could make improvements in a number of areas. We want to strengthen planning enforcement powers and sanctions, reinforcing the principle that unauthorised development should never be viewed as preferential to proper, up-front planning engagement.
Within the planning enforcement framework, there are statutory time limits for the commencement of enforcement action. It is necessary to have a statutory time limit to provide certainty when the passage of time means that enforcement action is no longer feasible. However, there are currently two time limits for commencing enforcement action, depending on the nature of the breach. For a breach of planning control consisting of building operations or the change of use to a single dwelling, the time limit for commencing enforcement action is four years. For any other breach of planning control, the time limit for commencing enforcement action is 10 years from the date of the breach.
Stakeholders have raised concerns that the four-year timeframe can be too short, and in some cases can result in opportunities to commence planning enforcement action being inadvertently missed. For example, a person may not initially raise concerns with their local planning authority, assuming that a neighbouring development has the correct permissions or will not cause disturbance. Should the development prove disruptive, they may then try to come to an agreement with the person responsible for the development. By the time they raise their concerns with the local planning authority, some time may well have passed. The local planning authority may not initially be aware of that, prioritising other investigations. When an investigation begins, it may then become clear that the time limits for commencing enforcement action have inadvertently passed.
The four-year time limit can cause frustration for communities, whose initial pragmatism may result in unauthorised, harmful development becoming inadvertently immune from enforcement action. The clause will bring the time limit to commence enforcement action in England to 10 years in all cases, either from the date of substantial completion or the date of the breach, depending on the specific nature of the breach. That will provide greater confidence to local planning authorities that they will have the time to take enforcement action, and indicate to the public that planning breaches are taken seriously and should never be viewed as a preferential approach to proper engagement with the planning system. I commend the clauses to the Committee.
Question put and agreed to.
Clause 101 accordingly ordered to stand part of the Bill.
Clause 102 ordered to stand part of the Bill.
Clause 103
Enforcement warning notices
Matthew Pennycook
I beg to move amendment 116, in clause 103, page 122, line 36, at end insert—
“(4) The Secretary of State must provide sufficient additional financial resources to local planning authorities to enable them to implement the provisions in this section.”
This amendment, along with New Clause 36, would require the Secretary of State to provide sufficient additional resources to local planning authorities to enable them to implement the changes required by Chapter 5 of Part 3.
Mr Jones
Clause 103 provides local planning authorities in England with a new power to issue enforcement warning notices. The notice invites a retrospective planning application for a development that does not have permission, but that may be acceptable in planning terms, or may be made acceptable by the imposition of planning conditions. It does this by stating the matters that appear to be a breach of planning control and stating that further enforcement may be taken if a planning application is not received within a specified period. This formalises a process that the majority of local planning authorities already carry out informally. Formalising the process brings certainty, such as by setting out the specified period for an application to be submitted, and it constitutes taking enforcement action, ensuring that the time limits for commencing enforcement action cannot inadvertently expire.
However, the use of enforcement warning notices by local planning authorities will be discretionary. It will not create significant additional resourcing burdens for local planning authorities. We recognise many local authorities have capacity and capability challenges. We will publish guidance to assist local planning authorities in using enforcement warning notices. Although we are not changing fees through the Bill, we intend to consult on proposals to increase planning fees to ensure that local planning authorities are properly resourced to improve their services.
Rachael Maskell (York Central) (Lab/Co-op)
The Minister is talking about local planning authorities being properly resourced. In York, we no longer have a chief planner. There are serious deficits in funding in our local authority. As hon. Friends have said, planning is often the first thing to be cut. How will the Minister ensure that they are properly resourced to take on these additional responsibilities?
Mr Jones
I thank the hon. Member for York Central for that important point. I have acknowledged that there are capacity and capability challenges. I have also acknowledged that the Government want to go further by allowing local authorities to bring in more income. We have discussed and put the principle out there of doubling fees for retrospective planning applications, which often put often unnecessary additional pressure on local authorities, if people would have put forward their planning applications in the first instance in the proper and usual way.
On new clause 36, effective enforcement action is important to maintain public confidence and trust in the planning system. The package of enforcement measures in the Bill will strengthen the enforcement powers available to local planning authorities. Generally, the provisions make the existing framework easy to use by enforcement officers and, as such, they will not create significant additional burdens or resource pressures for local planning authorities. The use of new tools, such as enforcement warning notices, is discretionary. We are also working with partners to deliver a capacity and capability strategy to support the implementation of our planning reforms so that local planning authorities have the right skills and capabilities to make creative decisions and drive forward ambitious proposals, and we are committed to new burdens principles.
For those reasons, we cannot accept amendment 116 and new clause 36. I hope the hon. Member for Greenwich and Woolwich is sufficiently reassured to withdraw the amendment.
Matthew Pennycook
I regret to inform the Minister that I am not sufficiently reassured. I note what he said about fees and about the strategy the Department intends to bring forward. Yet, what I hear time and again in responses to amendments that seek to press the Government on local authority resourcing is a seeming unawareness of how acute the problem is. The Minister referred to it in very diplomatic terms as capacity and capability challenges, but it goes way beyond that. Local planning authorities are under acute pressure, which has a direct impact on planning services in those local authorities and, because it is a discretionary service, on the enforcement part of those planning services.
I am concerned to hear the Minister say that he does not think the provisions in this chapter constitute additional work pressures. It seems to me that they do. When looked at in the round, the measures introduced in the Bill certainly constitute additional work pressures on departments. I am not going to press these proposals to a Division, but we will come back time and again to the issue of local authority resourcing, because planning is under acute pressure in terms of capability and skills, and the Government have to provide stronger commitments as to what they will do to address that. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
I beg to move amendment 73, Clause 104, page 123, line 19, after “authority” insert “or the Secretary of State”
This amendment extends new section 174(2AA)(b) to cases where the Secretary of State declined to determine an application for planning permission.
Clause 104 closes a loophole that currently allows those who have breached planning control two opportunities to obtain planning permission retrospectively, once by appealing an enforcement notice and once by appealing the refusal or non-determination of a retrospective planning application.
The amendment corrects a drafting error. The new provisions in clause 104 apply to cases where either the local planning authority or the Secretary of State is the decision maker. Subsection (2AA)(b) erroneously refers only to the local planning authority. The amendment corrects that error, bringing applications that are declined to be determined by the Secretary of State within scope of the subsection.
Amendment 73 agreed to.
Question proposed, That the clause, as amended, stand part of the Bill.
Mr Jones
The retrospective planning application process is a necessary part of the planning system. It allows those who have made a genuine mistake to remedy the situation. However, we are aware that it is also used by people who have intentionally undertaken development without permission, who then attempt to delay enforcement action.
Prior to the Localism Act 2011, an appeal could be made both against the refusal of a retrospective application and against enforcement action, on the ground that permission ought to be granted. Through the 2011 reforms, we reduced the circumstances in which an appeal could be made, preventing an appeal on the grounds that permission ought to be granted if an enforcement notice was issued before the end of the statutory determination period. However, the reforms inadvertently created a loophole, which has allowed appellants to continue to appeal twice in certain circumstances, against the refusal or non-determination of a retrospective planning application and against an enforcement notice, on the ground that permission ought to be granted. Both appeals, in effect, assess the planning merits of the case.
The loophole exists because, in some circumstances, a local planning authority might not issue an enforcement notice before the end of the determination period for a related retrospective application. That could be because the local planning authority might have invited the retrospective application in the first place, and does not want to be seen to prejudge the outcome, for example. In such cases, if the development were subsequently found to be unacceptable and retrospective planning permission was refused, an enforcement notice would be issued after the end of the determination period.
There would remain two opportunities to obtain permission retrospectively: first, by appealing the refusal of the retrospective application, and secondly, by appealing the enforcement notice on the ground that permission ought to be granted. A similar situation would occur if the determination of the retrospective application were delayed and the appellant appealed the retrospective application on the ground of non-determination.
Therefore, the clause will extend the period during which an enforcement notice can be issued and during which an appeal on the ground that permission ought to be granted can still be prevented to two years. The applicant will not then be able to appeal an enforcement notice on the ground that permission ought to be granted during that extended period. Instead, they will have only one route to obtain planning permission retrospectively—through a successful appeal of the refusal or the non-determination of the retrospective planning application. Appealing an enforcement notice on other grounds will still be permitted.
The clause will reinforce the message that people should seek planning permission before they start a development. Where they do not do so, they should have only one opportunity to obtain planning permission after the unauthorised development has taken place so that the matter can be rectified as soon as possible. That will speed up enforcement action and prevent resources from being wasted assessing the planning merits of the same case twice. I therefore commend the clause to the Committee.
Matthew Pennycook
I would like to make some further remarks on clauses 105 and 106. Clause 105 will give the Secretary of State a new power that allows them to dismiss an appeal in relation to an enforcement notice or an application for a lawful development certificate in England should it appear to them that the appellant is causing undue delays to the appeals process. This is another point of clarification, but I simply wish to get a sense from the Minister of what causing undue delays as per proposed new section 176(6) of the Town and Country Planning Act 1990 will be taken to mean in practice.
Clause 106 will amend sections 187A and 216 of the 1990 Act in relation to England to increase the maximum fine for failing to comply with either a breach of condition notice or a section 215 notice. We do not oppose those changes, but I would like reassurance from the Minister that the Government have properly considered the possibility that increasing the maximum fine in such a way might have the unintended consequence of discouraging from seeking retrospective permission those who have, for whatever reason, made genuine mistakes on their planning applications.
Mr Marcus Jones
I thank the hon. Gentleman for his questions. On clause 105, let me give him an example of an undue delay. Such a delay could constitute not allowing a planning inspector to access land for a site visit. That is one circumstance in which the process would be frustrated.
On clause 106, I gently say to the hon. Gentleman that, while I understand his concerns, many members of the public, particularly those who have been affected by unauthorised developments, would be keen for us to be tougher on such developments. Therefore, I think this is more about ensuring that we put in place a regime that deters people from embarking on unauthorised development. I therefore believe that increasing the fines that will be payable is the right thing to do.
Question put and agreed to.
Clause 104, as amended, accordingly ordered to stand part of the Bill.
Clauses 105 and 106 ordered to stand part of the Bill.
Clause 107
Power to provide relief from enforcement of planning conditions
Rachael Maskell
I beg to move amendment 137, in clause 107, page 125, line 35, at end insert—
“(1A) But regulations under this section may not provide for relief from a planning condition relating to the development of a type or volume of affordable housing in a development.”
This amendment would exclude planning conditions relating to the delivery of agreed on-site affordable housing in developments from the power to provide relief from the enforcement of planning conditions.
Where affordable and social housing is identified in plans, the obligation to provide that tenure in the planning process must never be overridden. We have a national crisis with regard to the availability of affordable homes for our constituents. I certainly see that in York, where it is skewing the economy and having a severe impact on the way my community works. We have been overrun by so many second homes and holiday lets that it is even impinging on our ability to deliver statutory services in my community.
Far too often, developers start to build out their plans, starting with the high-value housing, only then to return with the plea that the site is no longer viable to provide social or affordable housing. That housing is therefore not built, and the funding is banked but never spent, because the argument is played out time and again on future sites. High-end, high-value housing is therefore taking precedence over the development of affordable housing. We simply cannot allow that to happen at any point in the development process. My brief amendment would recognise that in statute to ensure that there can never be an excuse for not delivering vital affordable housing on the basis of viability.
Mr Jones
I thank the hon. Member for York Central for her amendment. It seeks to ensure that relief from enforcement action under clause 107 cannot be granted with respect to planning conditions relating to affordable housing delivery. The aim of clause 107 is to enable the Secretary of State, by regulations, to limit enforcement action against non-compliance with prescribed planning conditions or limitations for a specified period of relief. Members of the Committee will recall that the covid pandemic demonstrated that the planning system needs to be sufficiently flexible to support businesses to respond to and recover from periods of disruption quickly and confidently.
During recent years we have taken steps, through written ministerial statements, to encourage local planning authorities to take a considered approach to enforcement action against non-compliance with certain planning conditions that have placed unintentional burdens on businesses. That includes conditions that govern the operative uses of development, such as construction working hours, delivery times and opening hours. Clause 107 will place on a statutory footing similar provisions to those that we introduced through policy, and it is intended that the measure will be used in relation to those types of operative use conditions as periods of disruption arise in the future.
The hon. Member’s amendment concerns those conditions that relate to affordable housing specifically. Affordable housing provision is principally secured through a section 106 agreement rather than planning conditions, so the practical benefit of the proposed exemption would be limited and this is not the sort of operative condition that the clause is aimed at. Furthermore, we are proposing to change the way affordable housing for a development is determined, as part of our plans for the new infrastructure levy, which the Committee will debate shortly. Through regulations for the levy, we intend to introduce a new “right to require”, to remove the role of negotiating in determining levels of onsite affordable housing, and we propose to consult on the approach shortly. Therefore, I consider the amendment not to be necessary and I ask the hon. Member for York Central to withdraw it.
Rachael Maskell
I thank the Minister for his response. I will certainly be following the debate on schedule 11 very closely, to ensure that it does fulfil all the commitments that the Minister has alluded to in his speech, but I will withdraw the amendment at this point. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
On the basis that I have explained how clause 107 works during our discussion of amendment 137, I do not propose to make any further comments on it. I commend the clause to the Committee.
Question put and agreed to.
Clause 107 accordingly ordered to stand part of the Bill.
Clause 108
Consultation before applying for planning permission
Question proposed, That the clause stand part of the Bill.
Mr Jones
The Government are committed to increasing opportunities for meaningful and early community involvement in planning decisions. Throughout the Bill, we are introducing measures that do just that. Communities should be given a say on developments that affect them, and should have those views taken into account when decisions are made. We are also keen to ensure that issues are dealt with early on, so that decisions are not unduly delayed. That is why we are introducing this minor but important change.
Clause 108 will make permanent the powers in sections 61W to 61Y of the Town and Country Planning Act 1990 that enable the Secretary of State to mandate the types of applications for which applicants will be required to carry out consultations with those in the vicinity of the development, and with any other specified people—for example, statutory bodies—before submitting a planning application to the local planning authority. The powers also require applicants to have regard to any responses received in the pre-application consultation, including views expressed by local communities.
The powers have been used only to require pre-application consultation on onshore wind turbines where two or more turbines are being installed, or where the hub height is over 15 metres. We want to explore additional opportunities to use the powers where pre-application engagement will be most beneficial, and we will engage on that before bringing forward the necessary changes through secondary legislation. Making the powers permanent will allow the Government to further strengthen community engagement with the system. I commend the clause to the Committee.
Question put and agreed to.
Clause 108 accordingly ordered to stand part of the Bill.
Clauses 109 to 112 ordered to stand part of the Bill.
Clause 113
Infrastructure Levy: England
Matthew Pennycook
I beg to move amendment 142, in clause 113, page 131, line 38, leave out “a charge” and insert “an optional charge”.
This amendment would ensure that application of the Infrastructure Levy would be optional rather than mandatory.
Tim Farron
The hon. Member for Greenwich and Woolwich has just provided almost infinitely more detail than there is in the Bill. My understanding is that the whole point of a Bill Committee is that we get to grips with the detail, and yet the Government are providing us with very little.
This really matters. I will set out a particular case of my community experiencing the real sharp end of the crisis, but every community in the country is experiencing a crisis of housing quality, availability and genuine affordability. This just tickles it, if we are lucky. We have a lack of detail. The idea itself is vague, and what we do know about the infrastructure levy is that it is likely to be complex, and the more complex it is, the more we favour the developer. In a situation where the nervous planning authority errs on the side of caution and, therefore, lack of ambition when seeking planning gain, the more the developer manages to gain advantage for itself. Given that there is no guarantee that any value from the levy will accrue to the community where the development will take place, the likelihood of communities opposing developments will increase, therefore making them less likely to go through.
On top of all of that, as has already been mentioned, a fundamental flaw of using GDV as the measure for what the levy should be in practice is that we are basically putting all the risk on the community and not the developer. That is obvious. It is probably why developers have been relatively silent over this—because they see that it is potentially in their favour. It is also why housing associations and others, including housing charities, have been very concerned—because they worry that is a slow, downward slope towards reduced delivery of affordable housing.
It may well be that, when the detail is forthcoming—and if not now, why not now?—we may be pleasantly surprised and, incrementally, we might find that the infrastructure levy, in detail, after pilots, does add value. However, the concern that many of us have is that this is untested and replacing a scheme which, while imperfect, does deliver some affordable housing.
The problem with section 106 and the infrastructure levy is that it is an entirely incremental, weak and fairly tepid approach to a massive problem. Our way of developing affordable housing is just to get the odd scattering of homes per development, if we are lucky and can find a system that will make a planning gain and gain something of the land value uplift that a developer has from the project. The reality, however, is that communities such as mine—I will speak specifically to the issues in Cumbria—have high house prices, an evaporated, almost non-existent long-term private rented market, and vast numbers of second homes, meaning properties not lived in all year around.
Cumbria is a nice part of the world—absolutely beautiful. Eden and the south lakes is a very beautiful place. If someone builds a five-bedroom house there, it will fly off the shelf within hours. There is no problem with building homes for demand. The Minister and the Government must understand—and I hope the new Prime Minister understands—that what is desperately required when it comes to housing policy is that, for a period at least, we stop building for demand and start building for need. The reality is that, as things stand, the infrastructure levy and section 106 only skim the top of the problem. That demonstrates a complete lack of ambition behind the concept of levelling up. We are not levelling up; we are getting some crumbs from the table. It is just a different way of getting some crumbs from the table, not actually producing any real bread.
Mr Jones
Clause 113 introduces the new infrastructure levy. It is well known that new development creates demand for public services and infrastructure. Local authorities should secure contributions from developers to share in the land value uplift that comes from granting planning permission and use that value to deliver infrastructure and affordable housing for communities.
One of the main criticisms of new developments in local communities, however, is that they are not accompanied by the infrastructure that communities often need. The current system of developer contributions is uncertain and fragmented. Local planning authorities can negotiate section 106 agreements to secure affordable housing and contributions to infrastructure, and can choose to charge the community infrastructure levy to collect money from developers for infrastructure that is not affordable housing.
The protracted negotiation of a section 106 agreement delays the granting of planning permissions. Agreements can be renegotiated as the development progresses—a point that has been raised by several Opposition Members. Both negotiation and renegotiation generate uncertainty for local communities over how much affordable housing will be available and what infrastructure will be delivered by a development. On the other hand, the community infrastructure levy is a non-negotiable charge, and it is optional as to whether local planning authorities charge it. Only half of local planning authorities currently charge the CIL. Of those that do not, more than a third believe that introducing it will increase their ability to capture land value. Common reasons for not implementing CIL include concerns that the extra charge will reduce the amount of affordable housing delivered because, unlike the levy, CIL cannot be used for affordable housing.
Also, CIL and section 106 do not capture all of the increases in value that occur as a result of increases in house prices. Average house prices in England have increased by nearly 22% over the past two years. CIL rates do not increase to capture more of that uplift, as they are based on the value when planning permission was granted. Although some section 106 agreements may capture an element of the uplift, many will not. As a result, local authorities are not capturing as much value for key services as they could.
Clause 113 provides for the introduction of a single charge that will largely replace the existing system of developer contributions. The infrastructure levy is an opportunity to deliver better outcomes for communities and to address shortcomings in the system that incremental change is unlikely to deliver. The levy will aim to capture land value uplift at a higher level than the current developer contribution regime by charging rates based on the final value of developments. I hear what the hon. Member for Greenwich and Woolwich has said about that, and the concerns he has raised. To clarify that point, the gross development value can be captured because we know what the sale price of that property is when it is sold, just as we do when stamp duty land tax is charged.
Levelling-up and Regeneration Bill (Nineteeth sitting)
Marcus Jones ExcerptsTuesday 6th September 2022
(2 years, 3 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 6 September 2022 - (6 Sep 2022)
Matthew Pennycook
As ever, it is a pleasure to serve with you in the Chair, Sir Mark. Having debated this morning in broad terms the deficiencies of the proposed infrastructure levy as we see them, and the corresponding case for discretion in terms of its adoption and core elements of its design, I turn now to a far more specific concern.
Part 1 of schedule 11 makes changes to the Planning Act 2008 by inserting new part 10A, providing for the introduction of the new levy. The new power replicates section 205 in part 11 of the 2008 Act, albeit with an important change that makes clear that the purpose of the levy now includes anything specified by the Secretary of State under subsection (5) of proposed new section 204N, in schedule 11 on page 294. The proposed new subsection makes clear that regulations may allow for circumstances in which a specified amount of the infrastructure levy is applied to purposes other than funding the provision, improvement, replacement, operation or maintenance of infrastructure, defined so as to include transport, schools, medical facilities, open spaces, flood defences, affordable housing and a number of other items.
That gives rise to two obvious questions. First, what purposes other than the provision, improvement, replacement, operation or maintenance of infrastructure, defined as broadly as it is in proposed new section 204N(3), on page 294, would IL ever need to be spent on? Perhaps the Minister can give us an example of what kind of non-infrastructure the Government believe those powers should fund. Secondly, why should developer contributions secured in relation to a particular area be used to support the provision of non-infrastructure items that may be unconnected to it? Our concern is that allowing the purpose of IL to include anything specified by the Secretary of State may give rise to a situation—as, I might add, the 2020 White Paper explicitly suggested—in which proceeds from the infrastructure levy are used to fund things such as service provision or the reduction of council tax.
There may be a far less problematic reason for the inclusion of the relevant language in proposed new section 204A(2) specifying that IL can be used to achieve any purpose under proposed new section 204N(5). For example, it may simply be the means of facilitating the continuation of the neighbourhood share under the new system. However, if that is the case, why not make that clear in the Bill? Given how widely drawn the language in proposed new section 204N(5) is, we remain concerned that it could lead to much-needed IL funds being directed to purposes other than supporting the development of an area by funding its infrastructure. That is the concern that amendments 148 and 149 are designed to address, by deleting the relevant language from proposed new section 204A(2) on page 282.
In our previous debate, I outlined in detail our concern that the levy as proposed will fail to secure as much—let alone more—public gain from developers than the present system. Allowing specified amounts of IL to be used to fund non-infrastructure items that might be unconnected to a given area would exacerbate that problem by further depleting the funding available for infrastructure, including affordable housing, in that area. The amendments would simply ensure that any funds generated by the levy would have to be spent on infrastructure that supports the development of the area in question. I look forward to hearing the Minister’s response.
The Minister for Housing (Mr Marcus Jones)
It is a pleasure to serve again under your chairmanship, Sir Mark. The Bill seeks to give local communities control over what is built, where it is built and what it looks like. It creates an incentive for communities to benefit from development. The delivery of infrastructure is a key pillar in our approach, and the levy is our key tool to support that.
We think that the local authority is best placed to decide which infrastructure projects it should spend the proceeds of the levy on. The Bill will require local authorities to prepare infrastructure delivery strategies. These will set out a strategy for delivering local infrastructure through spending levy proceeds. There is scope to allow even more flexibility on spending, to further incentivise communities to benefit from development. The Bill enables the funding purposes of the infrastructure levy to be extended to such purposes as may be specified by the Secretary of State under proposed new section 204N(5) if certain circumstances apply.
Rachael Maskell (York Central) (Lab/Co-op)
Could the Minister give some examples of what those extensive directions could include, because that is not made clear in the Bill?
Mr Jones
If the hon. Member bears with me for a moment, I will give her an example.
The measure will enable regulations to set out the circumstances where charging authorities could spend a specified amount of the levy on items that are not infrastructure. This means that in some areas, once local authorities are able to meet their affordable housing and infrastructure needs, they could have scope to increase their flexibility on what they spend levy receipts on, such as improving local services. This would remain a matter for the local authority to decide on, subject to any limitations set out in regulation or guidance, ensuring that infrastructure and affordable housing remain priorities. Furthermore, it is right that even if such extended funding of the levy is permitted and taken up by the local authority, it should be subject to the overall test in proposed new section 204A that such costs must not make the development an area economically unviable. Therefore, we do not believe the amendment is necessary, so I ask the hon. Member for Greenwich and Woolwich to withdraw it.
Matthew Pennycook
I think that was a useful answer from the Minister, for the following reasons. He clearly stated that the reason for the flexibility is to allow local planning authorities to spend levy receipts on non-infrastructure items not covered in proposed new section 204N(3). That is very useful, because he has responded to our concern by saying on the record that the infrastructure levy could be spent on things such as the funding of services.
The Minister made an important qualification, which I will address. He made clear that local authorities would be allowed to spend only once they had met their affordable housing targets and infrastructure needs. I applaud his optimism that the levy will cover not only all affordable housing provision and core infrastructure, but other things such as services. I welcome that clarification.
The Minister will do two things, I think. When we come to them in due course, I think he will accept our amendments to strengthen the Bill’s requirements on meeting affordable housing supply. However, I still think the Bill needs to be tightened to specify what kind of non-infrastructure the levy could be spent on in the circumstances he outlines. At the moment, it is incredibly broad—it relates to any purposes specified by the Secretary of State—and that remains a point of concern. Although I will not push this amendment to a vote, we may return to this issue. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
I beg to move amendment 196.
Proposed new section 204A in schedule 11 sets out the overall purpose of the levy, which is to ensure that the costs incurred in supporting the development of an area can be funded wholly or partly by the owners or developers of land in a way that does not make development of an area economically unviable. The overall purpose also applies to the costs incurred in achieving the other specified purposes that are allowed under the levy regime.
Proposed new section 204A currently cross-references to purposes that may be specified under proposed new section 204N(5). That means that the levy regulations may allow levy receipts to be spent on matters other than infrastructure, such as improvements to local services and delivery of local programmes that are valued by local communities. Although the infrastructure levy will primarily be spent on infrastructure and affordable housing, that will give us the scope to allow local authorities more flexibility over how they spend the levy if those priorities have been met.
The amendment will correct an omission and ensure that proposed new section 204A also correctly cross-refers to the powers in proposed new sections 204O and 204P, which will also allow levy receipts to be spent on other specified purposes, such as non-infrastructure matters. Where that is allowed, it must be subject to the overall purpose set out in proposed new section 204A. To ensure that proposed new section 204A correctly interacts with proposed new sections 204O and 204P, we are introducing a minor technical amendment to ensure the cross-reference is properly made. I therefore respectfully ask the Committee to support the amendment.
Matthew Pennycook
I rise to speak briefly to this Government amendment, notwithstanding our debate on the previous group of amendments. There is nothing in the Bill to ensure that local authorities meet a sufficient level of housing need—we will come to that—or of infrastructure need. Even taking into account the Minister’s reassurances on how the levy can be spent, I remain concerned. If anything, Government amendment 196 augments the concerns I have just spoken about. By specifying that the aim of the levy can include any purpose specified under proposed sections 204N(5), 204O(3) and 204P(3) of the Planning Act, the amendment allows proceeds of the levy to be spent not only on non-infrastructure items that might be unconnected to a given area in a way already made clear in the Bill, but on a wider set of, one presumes, non-infrastructure items. In a sense, the amendment’s intention is to widen the scope of the non-infrastructure items to which specified amounts of IL can be directed.
As I have made clear, we strongly believe that funds generated by the levy should be spent on infrastructure that supports the development of the area in question, and we oppose this Government amendment for the same reasons I set out in relation to amendments 148 and 149. I will not press the matter to a vote, but I want to put that on the record. We feel very strongly, as I think local communities will, that the proceeds of an infrastructure levy should be spent on infrastructure in their area. If anything, rather than having surplus amounts to spend on other items specified by the amendment or the Bill, I believe that the levy will not cover all those infrastructure costs.
Mr Jones
Let me respond to the point raised by the hon. Member for Westmorland and Lonsdale. Clearly, the firm intention of the policy set out in schedule 11 is that the requirement for relevant infrastructure and affordable housing in a particular area is satisfied. However, there may be circumstances where a local authority, while satisfying those criteria, uses this mechanism. As I have said before, we expect to capture more value from developments because we will be capturing the value of the uplift of the finished product, not just the value at the point at which planning permission is achieved. Therefore, the expectation is that there could be greater value and it could enable local areas to do additional things, alongside the relevant and necessary affordable housing and infrastructure. I hope that reassures the hon. Gentleman about the Government’s intention.
Amendment 196 agreed to.
Matthew Pennycook
I beg to move amendment 150, in schedule 11, page 282, line 32, at end insert—
“(2A) The intention of IL is to enable local authorities to raise money from developments to fund infrastructure to support the development of their areas while allowing planning obligations under section 106 of the Town and Country Planning Act 1990 to continue to be used to provide affordable housing and ensure that development is acceptable in planning terms.”
Mr Jones
The hon. Member for Greenwich and Woolwich is correct to raise the importance of affordable housing delivery for local communities. Amendments 150 to 152 would prevent the infrastructure levy from being used to fund affordable housing, and I understand why he has tabled them. The provision of affordable housing is critical, and section 106 planning obligations currently deliver around half of all affordable housing in England. The Government do not want the new infrastructure levy to reduce the number of affordable homes that are secured when new development comes forward. In fact, the opposite is true: we are committed to the delivery of at least as much, if not more, on-site affordable housing through the infrastructure levy as is delivered through the current system of developer contributions.
Section 106 is an imperfect mechanism for securing affordable housing and can result in prolonged and costly negotiations that often generate outcomes that favour developers. Developers can often use their greater resources to negotiate policy-compliant levels of affordable housing downward on viability grounds. Local planning authorities tell us that the ability to secure developer contributions through negotiations is dependent on the individuals involved in the process. The amount that local authorities secure from developers will vary depending on which officers lead the negotiations, and their experience, strategy and confidence. This unpredictable element in the negotiation of section 106 obligations means that some authorities can secure more affordable housing than others, and that value that could be secured by local government instead goes to developers and landowners.
Rachael Maskell
The Minister is making the case that section 106 should be amended so that more power is given to local authorities. Why is he not taking that step to ensure that developers do not have the upper hand in negotiations?
Mr Jones
We are advocating delivering the same amount or more affordable homes through the infrastructure levy than are currently provided through section 106. That is based on the ability to capture more value from new development than is already the case, and the fact that there will be a more consistent approach that will not allow the current situation, wherein certain authorities that have the experience and ability at officer level to negotiate better section 106 agreements than others benefit significantly from being able to do so, compared with some authorities that do not appear to be in that position.
Rachael Maskell
I do not understand why the Minister does not just change the framework around the negotiations so that all authorities have the powers they need to get the outcomes they require, rather than introducing a system that will weaken the ability to determine what is actually good for a site and the infrastructure that communities need—let alone the affordable housing they desperately need.
Mr Jones
We are all concerned with making sure that we get as much affordable housing as we can from housing developments. Clearly, what I am arguing for is a wider package of measures that we believe will deliver at least as much affordable housing as under the current system, if not more, together with the infrastructure that communities need.
It is not fair that communities lose out just because their local authorities have effectively been strong-armed during the negotiation, and it is not fair that developers may face arbitrary variation in the demands for contributions in different places. If developers do not know how much they are going to have to pay, it is much harder for them to price contributions into land. There is currently an incentive to overpay for land and then try to negotiate contributions downwards.
To address the inequality of arms that the Committee has discussed, the new levy will introduce the right to require affordable housing through regulations. The right to require will enable local authorities to determine what proportion of the levy they want delivered in kind as affordable housing and what proportion they want delivered as cash. That will mean that local authorities, not developers, will get the final say on the proportion of affordable homes delivered as an in-kind levy contribution on a site. It is therefore important that affordable housing is considered as a kind of infrastructure that can fall within the levy regime.
It will be equally important that the levy delivers at least as much affordable housing as under the current system. That is why, when the levy rates are set, charging authorities must design them with regard to the desirability of ensuring that the rates can maintain or exceed the amount currently secured through developer contributions.
Let me address a couple of other points. The hon. Member for Greenwich and Woolwich was concerned about less-viable sites and lower-value sites. I reassure him that local authorities will set a minimum threshold that reflects build costs and existing use values, as well as setting levy rates. The minimum threshold will help to ensure that lower-value sites continue to come forward.
The hon. Member for York Central mentioned concerns about risk and about delivering affordable homes and infrastructure while the changes take place. I reassure her that, as we discussed in the earlier debate on the infrastructure levy, we will be driven by a test-and-learn approach. The lessons from that work will be learned to make sure that we achieve our objectives, and the places that are not using that approach in working with the new infrastructure levy will continue to work on the same basis as they do now until the new system is rolled out. I reassure the hon. Lady again that the process could take some years to achieve to make sure we get it right.
On that basis, I hope that the hon. Member for Greenwich and Woolwich will not press amendments 150 to 152 to a Division.
Matthew Pennycook
I thank the Minister for his response, but I am afraid I am not reassured, for the following reasons. The Minister rightly said, and I accept, that section 106 is an imperfect mechanism for extracting public gain from developers, but, as we have already debated, it is one that can be improved on, and has been in recent years, and can be reformed further.
The question before us, which goes back to the wider debate we had earlier, is: will the levy system replace the current system with one that will extract sufficient public gain to at least allow the same levels of affordable housing? I have listened carefully to the Minister, and he has made repeated commitments that it will extract at least as much as that gain. However, as we will come on to with the next set of amendments, there is nothing in the Bill that guarantees that the levy framework, even if it does extract the same amount of gain, will lead to a situation in which at least as much affordable housing is required. The language—I will come to this in the next debate—in proposed new section 204G is incredibly weak in that regard.
Nothing I have heard this morning reassures me that we are not implementing a system that will fail to extract the same amount of public gain when it comes to infrastructure and affordable housing as the present system. There is nothing in the Bill to ensure that local authorities spend their levy proceeds on the levels of affordable housing required to meet the housing need in their area. Given all the risk and uncertainty of replacing the existing system with the proposed one, I feel strongly that the Government are making a fundamental mistake by including affordable housing within the scope of the levy. I will therefore press amendment 150 to a Division.
Question put, That the amendment be made.
Mr Jones
The hon. Member for Greenwich and Woolwich is right to refer to the importance of the new levy in supporting the delivery of affordable housing for local communities and in contributing to meeting local need. As we have discussed, the Government are committed to getting at least as much, if not more, on-site affordable housing through the new levy as we do under the current system of developer contributions.
The definition of affordability, as challenged by amendment 153, is a complex and evolving picture that is better understood and monitored at local level. It is therefore appropriate to allow for infrastructure levy regulations to provide for any other description of affordable housing, beyond that defined as social housing in part 2 of the Housing and Regeneration Act 2008. This will ensure that any new types of affordable housing tenure introduced in the future can be brought into the scope of the levy.
Matthew Pennycook
I am sorry to put the Minister on the spot, but it would be useful if we had an example of the type of housing tenures that the Government believe that that specific line in the Bill is required for, given the already very broad definition of social—affordable—housing in part 2 of the 2008 Act.
Mr Jones
As the hon. Member knows, when the 2008 Act was brought into effect by the last Labour Government, there was a reasonably wide definition of the different types of affordable housing. One of the evolutions in affordable housing recently has been the introduction of First Homes. I hear what the hon. Member for Greenwich and Woolwich says about that, but we are working to make sure that we have 1,500 first homes by the end of March 2023; that will be significant progress. The vast majority of affordable housing currently provided does fall within the definition that we have discussed, which was put into legislation in 2008, and we envisage that that will continue to be the case under the levy. However, accepting amendment 153 would mean placing a lot of reliance on the definition of social housing in the 2008 Act. Clearly, social housing is an extremely important part of the mix of affordable housing, but amendment 153 would reduce the levy’s ability to respond to any changes in tenure types that arise in the future. That is not helpful or necessary. It is right that the levy regulations should provide future-proofing and regulatory flexibility.
Amendment 154 deals with exemptions for sites that are 100% affordable housing. Subsection (5)(h) of proposed new section 204D of the Planning Act 2008, in schedule 11 of this Bill, already contains a power for levy regulations to make provision about exemptions from or reductions in levy liability. The levy will be used to secure contributions towards affordable housing. We do not expect to charge the levy on exclusively affordable housing developments; we will explore that matter further in consultation. However, all development will be required to deliver the infrastructure that is integral to the functioning of the site, and we will retain the use of planning conditions and restricted use of section 106 agreements to secure that.
Amendment 155 would require infrastructure levy rates to be set at a level that enables an authority to meet the affordable housing need specified in a local development plan. The total value that can be captured by the levy, or indeed any system of developer contributions, will not necessarily match the costs of meeting the entire affordable housing need of an area as specified in the local development plan. Revenues will depend on the amount and types of development that come forward, and when they come forward, as much as on the levy rates and thresholds set. That said, the Bill recognises the importance of using the levy to deliver affordable housing. Proposed new section 204G of the Planning Act 2008, in schedule 11, provides that charging authorities must, when setting their rates, have regard to the desirability of ensuring that affordable housing funding from developer contributions equals or exceeds present levels. That will ensure that affordable housing need is accounted for when levy rates are set; to ensure that, those rates will be subject to public examination.
Importantly, the Bill makes provision for rates to be set with regard to increases in land value—for instance, as a result of planning permission. Targeted increases in rates will allow charging authorities to maximise the revenue that they can capture, and the amount of affordable housing that they can deliver.
We have designed the levy so that it can deliver at least as much affordable housing as the current system, if not more. As I have explained, the new right to require will require affordable housing to be provided. That will be introduced through regulations. That means that local authorities will get the final say on the proportion of levy contributions that go towards affordable homes. Should the levy generate more revenue than at present, local authorities could choose to direct those additional revenues towards meeting their additional affordable housing needs.
Rachael Maskell
How are local authorities making calculations about the loss of affordable housing? Clearly, if we just look at new developments, we could say, “There is this growth in affordable housing”, but if authorities are losing stock, the proportion of affordable housing in a community is decreasing. How will that be addressed? If the local plan is just about future developments, should there not be some adjustment for the loss in existing stock? I am talking about not just social stock, but ownership stock.
Mr Jones
I thank the hon. Member for that point. Like many other areas, York’s housing market is affected by the tourist industry that the city attracts. It is for local areas—I am glad that the hon. Member’s area is forming a local plan—to assess the housing need in their local plan; they should take matters such as the amount of affordable housing, and the need in an area, into account when making that plan.
Local authorities will need to balance the objective of providing affordable housing with the levy’s other aspirations. Local authorities will need to use the levy revenues to deliver other critical infrastructure, such as new roads and medical facilities. Local authorities, which know their local areas, are best placed to balance funding for affordable housing with funding for other infrastructure needs.
On amendment 156, proposed new section 204Q, introduced by schedule 11, introduces the requirement for levy charging authorities to prepare an infrastructure delivery strategy, which will outline how a local authority will use the money the levy generates through a strategic spending plan. That will include an outline of how it will use levy revenues to secure affordable housing. It is important that that happens in each area. The charging authority will have regard to that when setting levy rates. The exact detail of the infrastructure delivery strategy and how it should be produced will be determined through regulations. We will consult on matters relating to the infrastructure delivery strategy, and forthcoming secondary legislation and guidance will clarify how to treat affordable housing. All of that will be informed by our commitment to deliver at least as much affordable housing as we do under the current system.
I hope that my explanation gives the hon. Member for Greenwich and Woolwich clear assurances on how the new levy will support the delivery of affordable housing, and therefore I ask him to withdraw the amendment.
Matthew Pennycook
I thank the Minister for that comprehensive response. I will take each part of it in turn. I note what he says about the powers provided for in proposed new section 204D(5)(h) to the Planning Act 2008, regarding 100% affordable sites, and I welcome his commitment that the Government do not expect those sites to have the levy applied to them. That should be written in the Bill, but I take that commitment at face value, and I hope to see it fleshed out via the regulations.
Matthew Pennycook
I beg to move amendment 157, in schedule 11, page 283, line 28, at end insert—
“(1A) But a charging authority may not charge IL on development in its area comprising—
(a) over 150 residential units, or
(b) over 10,000 sq m of floorspace
and instead Part 11 of the Planning Act 2008 (Community Infrastructure Levy) applies to such developments.”
This amendment would specify a threshold for large sites in relation to which the role of section 106 TCPA 1990 agreements would be retained, meaning that the community infrastructure levy would continue to be used to support such development.
I made clear at the outset of our consideration of part 4 that the levy differs from that set out in the 2020 White Paper in several important respects. One of those is that the Government now propose to retain a distinct role for the current system of section 106 planning obligations, rather than replacing it entirely, as per the White Paper. We are told that narrowly targeted section 106 agreements will still be used for securing infrastructure integral to the operation and physical design of a site. The examples in the policy paper that accompanies the Bill—internal play areas and flood risk mitigations—suggest that the use of such agreements in this way will be a frequent occurrence. More importantly, we are also told that the Government want a role for section 106 agreements in supporting the delivery of larger strategic sites. On such sites, infrastructure can be negotiated and provided in kind; the value of what is agreed must not be less than what would have been paid through the levy. This raises a host of questions, as does every aspect of the Government’s proposal.
Will developers have to pay the difference where the cost of delivering infrastructure on large sites is less than the required IL charge would be? Correspondingly, would charging authorities have to refund developers if it transpired that the cost of delivering infrastructure was higher than the given IL charge? Who defines what is on-site infrastructure, and what can act as credit against the nominal levy charge? Will it be set out in regulations—there is then a risk that it will be too inflexible—or will it be defined by each charging authority? There is then an associated risk of additional complexity. How do we avoid developers providing a range of unnecessary on-site facilities in order to reduce their liability vis-à-vis that levy charge?
Those and other important questions aside, in general terms we very much welcome the proposed retention of section 106 agreements, both for the infrastructure that is integral to the operation and physical design of sites and for larger strategic sites. Indeed, when it comes to the latter, the continued use of section 106 is essential to ensuring that they are developed, given the obvious pitfalls of attempting to do so solely via the levy, with all the inherent flaws that we discussed earlier today.
However, schedule 11 does not define what actually constitutes a larger site for the purposes of the ongoing role of section 106 agreements. Amendment 157 simply seeks to place that definition in the Bill, in proposed new section 204B of the Planning Act 2008, so that there is clarity at the outset of the process of introducing and implementing the levy as to the site size threshold above which IL would not be charged.
The amendment proposes that, for the purposes of permitting an ongoing role for section 106 agreements, a large site should be defined as an area comprising over 150 residential units, or over 10,000 square metres of floorspace. We have chosen those threshold values for a number of reasons, but primarily because schemes of over 150 units or 10,000 square metres of floorspace are typically more complex, take longer to deliver and are often phased, and are more likely to require site-specific mitigation, thus benefiting from the ability of section 106 agreements—this is one of their key strengths—to tailor obligations to the specific circumstances of a site.
On large sites thus defined, which would account by our estimates for around 5% of current approved residential projects nationally, affordable housing provision would be delivered via section 106, as under the present arrangement. To avoid the delay and complexity of securing contributions for core infrastructure on the sites by means of such agreements, amendment 157 makes it clear that the existing provisions of part 11 of the Planning Act 2008 would still apply, thereby enabling contributions relating to the sites to continue to be secured by means of the community infrastructure levy.
We believe that straightforward and uncontroversial amendment would provide certainty as to what does and does not constitute a large site where there will be an ongoing role for section 106 agreements at the outset of what will be, by the Minister’s own admission, a lengthy process of testing, implementing and rolling out the new levy. I look forward to hearing the Minister’s response.
Mr Jones
The Government intend that the levy will replace CIL, except for the Mayor of London and in Wales, and largely replace the discretionary negotiated section 106 regime. However, following feedback through consultation and engagement with the industry, we recognise that, in some limited circumstances, a case exists for retaining a role for section 106 planning obligations in the delivery of infrastructure. Such circumstances include large and complex sites where infrastructure requirements are site-specific and require a more negotiated approach to ensure that infrastructure is provided at the right time. It is important to set the right definition for large and complex sites. We need to strike a balance between creating a more consistent levy system, while retaining flexibility for some negotiations on sites with complex infrastructure needs. On sites where section 106 agreements will continue to be used, we still expect developers to deliver at least as much overall value. It is just that some of it will be as in-kind infrastructure contributions rather than as a cash payment.
Setting the threshold in the Bill for when section 106 agreements should be used runs the risk of impacting on the effectiveness of the levy. If it is set too low, lots of development will continue to use section 106 agreements, and developers will continue to strong-arm local authorities over the value of their contributions. If we set it too high, it can impact infrastructure delivery on sites with complex and competing infrastructure needs. That is why we intend to consult on what the threshold should be, to allow us to consider stakeholder feedback and different options. The levy regulation, which will be laid before the Commons for approval, will specify the circumstances in which section 106 agreements will continue to be used. For the reasons I have explained, I request that amendment 157 be withdrawn, to allow us to consult further on when the use of section 106 agreements would continue to be more appropriate.
Matthew Pennycook
I appreciate the Minister’s response and, taking on board what he has said, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
Proposed new section 204F of the Planning Act 2008 makes provision requiring an exemption from paying the levy where the party liable to pay is a charity and where the building or structure will be used for a charitable purpose. “Charitable purpose” here has the meaning in section 2 of the Charities Act 2011. It is something that is “for the public benefit” and is for a specific purpose, such as the prevention or relief of poverty, the advancement of education, health, the arts or sport, or the provision of relief to those in need. That kind of development is entitled to exemption from the levy in its entirety.
Under the current system of section 106 planning obligations, an obligation can constitute a reason to grant planning permission only if it is directly related to the development. For that reason, affordable housing contributions tend to be sought on residential developments. Amendment 158 would substantially extend the range of development required to deliver contributions towards affordable housing, including non-residential charitable development. In general, we oppose the amendment because it is not appropriate for charities providing services for the public benefit to also be required to provide affordable housing. It would be unfortunate if all kinds of charitable development, from drug treatment facilities to village halls, became economically unviable because we required them to fund an element of affordable housing as well.
Rachael Maskell
It is becoming clear in the debate that there are charities and charities. Some charities are run by major businesses and make a profit. Say a private school was disposing of a playing field that would then be used for the development of unaffordable housing to provide significant funding. Should that private school be exempt because it has charitable status under the Charities Act? Would that be right, because surely it is acting like any other business?
Mr Jones
The hon. Member makes a very good point. A charity that builds something that is not for a charitable purpose would not be subject to an exemption from the levy under proposed new section 204F. For example, feeding into what she said, if a charity were delivering market housing, that would be unlikely to meet the definition of a charitable purpose. If there are specific scenarios where contributions should be sought, the Bill enables us to consider them as part of the development of the levy’s regulations. More broadly, we will consult on the types of exemptions that should apply to the levy prior to laying the regulations before the Commons for approval. For those reasons, amendment 158 is not necessary.
Rachael Maskell
I want to test another scenario. Say the same educational establishment develops a nursery on that site, but the nursery has a commercial interest. Under the debate that we had about the provision of services, that could be seen as one of the services that could come under the infrastructure levy. A nursery could be a profit-making opportunity for said institution, while also providing support for children under the Government’s funding for nurseries. Would that be included or excluded from the scheme that the Minister is outlining?
Mr Jones
I thank the hon. Member for that question. I will not get drawn into lots of different examples, but we are very clear that we are talking about charitable purposes under the definition in the 2011 Act.
Turning to amendments 159 and 160, there may be other instances where an institution is established for charitable purposes but does not meet the definition of a charity—for example, a charity established in Scotland, Northern Ireland or overseas. Amendments 159 and 160 would remove the express ability for regulations to set exemptions or reductions in the levy for these types of institutions. This would mean that only English and Welsh charities could be exempt from the levy when delivering development for charitable purposes. While we recognise that this will be less common, it would still be unfortunate if other types of charitable institutions could not deliver important facilities because of increased costs from the levy.
We are aware that different charitable institutions may operate differently from English and Welsh charities. That is why it is important to maintain a separate power to prescribe in regulations in detail the levy liabilities of such institutions. That enables provision to be made in the regulations, which will keep up with future changes that might be made to charities law. There will also be instances where a charitable institution carries out development that itself is not for charitable purposes but that it should none the less be able to claim an exemption or reduction for.
In the current CIL system, the CIL regulations make use of this power to provide for relief from CIL liability at the discretion of the local authority for developments carried out by charities for investment purposes. This approach works, which is why we do not agree with amendments 159 and 160, which would remove the express ability to set this kind of exemption or reduction through regulations in the future.
I hope that I have provided helpful clarification to the hon. Member for Greenwich and Woolwich and other members of the Committee. I therefore kindly ask the hon. Member to withdraw his amendment.
Matthew Pennycook
I am partly reassured by what the Minister said, not least because he clearly indicated that the Government are going to go away and give further consideration to designing regulations. However, I urge him—or his successor when he is promoted—to really look into this issue, because I think there is a chance here, as Members have commented on, for a loophole to be exploited in ways that would cut across the purposes of the Bill as per the Government’s thinking. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Rachael Maskell
I beg to move amendment 167, in schedule 11, page 287, line 28, at end insert—
“204FA Social enterprises and community interest companies
(1) IL regulations must provide for an exemption from liability to pay IL in respect of a development where—
(a) the person who would otherwise be liable to pay IL in respect of the development is a social enterprise or a community interest company, and
(b) the building or structure in respect of which IL liability would otherwise arise is to be used wholly or mainly for the purposes of social enterprise or the community interest.
(2) IL regulations may—
(a) provide for an exemption from liability to pay IL where the person who would otherwise be liable to pay IL in respect of the development is a social enterprise or a community interest company;
(b) require charging authorities to make arrangements for an exemption from, or reduction in, liability to pay IL where the person who would otherwise be liable to pay IL in respect of the development is a social enterprise or a community interest company.
(3) Regulations under subsection (1) or (2) may provide that an exemption or reduction does not apply if specified conditions are satisfied.”
This amendment makes equivalent provisions about the Infrastructure Levy for social enterprise or community interest companies as it does for charities under inserted section 204F.
The reason for the amendment is that there are different forms of businesses across communities. At this point, I should declare an interest as a Member of the Co-operative party. Social business is really important across our communities. Social businesses, enterprises and community interest companies have a different focus from the run-of-the-mill business. They are not there for profit. They are there to reinvest in their service users and facilities and to give back to their communities.
I think there is a real anomaly in the legislation. Today, the voluntary, community and social enterprise sector is referred to as one, recognising the charitable aims and social aims that these organisations bring. In moving the amendment, I am looking for parity, to recognise the fact that not-for-profit organisations—community interest companies and social enterprises—make an investment in their communities. They can make an investment by employing people from a place of disadvantage and by giving people opportunities in life. However, they are businesses as well, running cafés, for instance. Obviously they reinvest the proceeds they make into people in the community or they perhaps run a nursery or another form of business. We have seen the real benefit that that brings—it certainly addresses the levelling-up agenda. It enables people to move forward in their social mobility journey.
These organisations often start out with no assets whatever. They are very small. They build, reinvest and grow, which is good for the local economy. We need only to look at Preston as an example. It has invested—I look at the Chair, who is the MP for Preston—in the community. It has invested in the model of social business as well, and we know the importance of that. We want to see that rolled out across our communities. If these organisations grow and want to invest more and further benefit the community, but they then have to pay the infrastructure levy, that will curtail the opportunities that they can bring to our communities, and we do not want to see that. We want to see community interest companies, co-operatives and social businesses grow in a way that allows them to reinvest in our communities.
One thing that I have found most inspiring over the last few weeks is meeting organisations that are putting incubators for social enterprises in their communities—again, with no asset, but they provide an opportunity to bring forward a generation of new community interest companies and social enterprises. I have seen a little bit of that on the SPARK site in York, which really has put a spark into York. It is built out of old containers on a site and has brought a new energy into the city centre. It has been a fantastic opportunity, running and helping businesses to develop the ethos of community interest companies as they move forward.
I do not understand why in the legislation credible social businesses, social enterprises and community interest companies do not have exemptions when they give so much back to our communities and bring real transformation to our society. I want the amendment to be made. It is an omission; perhaps the Minister will explain why such an omission was made. Will he also reflect on the charities when it comes to the consultation and looking at further regulations? Will he include social enterprises and community interest companies in the substantive next phase of the legislation?
Mr Jones
As I said under amendment 158, proposed new section 204F of the Planning Act 2008 allows for certain charities carrying out development for charitable purposes to be exempt from the levy. Proposed new section 204D(5)(h) also provides powers to exempt or reduce levy liabilities through regulations. This would allow us to set national exemptions or reductions where it is appropriate for other types of development by other types of organisations. When considering the approach to exemptions and reductions, we will need to consider a wide range of development types, including those put forward by the amendment. There is an important balance to strike. Although we will explore national exemptions and reductions to the levy, we want local authorities to be able to make their own decisions about how they might want levy exemptions to apply.
Rachael Maskell
I am grateful to the Minister for making that point. Obviously, if local authorities are going to make such determinations, they will have to look for the maximum opportunity. As the legislation is unamended, they will also seek to subsidise the affordability of housing as well. It is very unlikely that a local authority will then look for wider exemptions from the infrastructure levy, so I cannot see how that would work in practice to deliver the objective to which the Minister refers.
Mr Jones
I was just bringing it to the hon. Member’s attention that there is a balance to strike in these matters. Clearly national exemptions are an important part of this, but we want to give a certain amount of local flexibility. Our forthcoming consultation on the infrastructure levy will explore this question further. It will allow us to look at the case for exemptions in the round, and decide what types of developments should not be subject to the charge, or should be subject to a reduced charge. Following consultation we will set out in regulations where a charge to the levy will not apply. Those regulations will be subject to debate in Committee and approval in the House. On that basis, I do not consider the amendment necessary and kindly ask her to withdraw it.
Rachael Maskell
I rise to make a brief point. It is more about the scope of what we have discussed—the infrastructure levy being able to contribute to affordable housing and social housing within a development. One of my fears is that everything is left to the end; it is left to the end to calculate everything, and we end up with what has happened at St Peters Quarter, in York, with the high-value housing—beautiful, spacious housing—in one area and then the section 106 housing in the corner, where there is no proper infrastructure to support it because there is no money left. We therefore get real segregated communities.
I go back to the report that John Hills wrote in 2007. I was at a meeting with him, discussing the report, and he was talking about the importance of place making and mixed communities. We could be in danger of ending up with more divided communities if everything is paid at the end. Therefore scheduling payment is really important. Developers know that that money will have to be paid, and we should ensure that it can be paid in a timely way so that we do not end up with the scenario that we have articulated so much with either the section 106 provision coming never or the infrastructure levy money not delivering on the expectation at the start of the planning process. That could of course occur, but, even worse, we could end up with really divided and segregated communities when we know that the strength and resilience of communities comes where we see that housing jumbled up.
A good example would be Derwenthorpe, in York, where it is not possible to tell what is a social house, what is a privately owned home or where there is equity sharing or anything else, because the houses are all the same and people live in a very mixed and diverse community. That has built strong resilience in the community.
We need to think about more than just housing; we need to think of place making, which I know is Homes England’s real objective. Of course, by holding everything back to the very last minute, we are in danger of not having that. Properly scheduling payment of the infrastructure levy will ensure that we get the proper places that people want to live in and that we build resilience across all communities, as opposed to dividing communities and then developing areas that will create social challenges in the future.
Mr Jones
I thank my hon. Friend the Member for Buckingham for his contribution to the debate on the levy today. Even though it is an inviting proposition, I do not think it would be wise for me to start to try to pre-empt the policy of the new Government, but what I will do is focus on amendments 58 and 161, which are before us.
Charging the levy on the basis of gross development value, which will be the sales value of the development that is sold, will enable the levy to capture more of the increases in development value that occur over time. That will result in better opportunity to capture more value from development to put towards infrastructure and services. Later payments will also reduce demands initially on developer cash flow, and the returns necessary to make a development worth while, because payments will not be required up front.
Payments may be made later, but we recognise the importance of the infrastructure levy supporting the timely provision of local infrastructure alongside new development, so that homes are supported by the right services. That is why it will be possible for local authorities to borrow against future levy liabilities, so they can forward-fund infrastructure.
We are also introducing infrastructure delivery strategies that will drive local authorities to plan more effectively for the best use of levy revenues. On the majority of sites, levy contributions towards infrastructure will be secured in cash, creating a simpler, streamlined system. Developers will, however, still need to deliver the infrastructure on site that is integral to the use of the site, including access roads and flood risk mitigations.
In addition, as we have debated, on larger, more complex sites, we intend to retain the use of section 106 planning obligations to secure in-kind delivery of infrastructure. Such contributions will be offset against the levy liability and the timing of their delivery can be negotiated.
Nevertheless, we recognise that there are circumstances in which early payment and payment by instalments may well be appropriate. That is why the Bill provides powers to allow for that under proposed new section 204R(2) of the Planning Act 2008, which is in schedule 11.
Matthew Pennycook
As we have discussed extensively, given that we would not know the end value until later on in the development and that it would be subject to multiple valuations that might be disputed, how do the Government envisage the operation of a system of payments up front? Will the payments be simply scored off against the projected, expected end value, which will be calculated at a later date? Will the Minister give us a sense of how that sort of arrangement might work in practice?
Mr Jones
As we have discussed a number of times during the debate, the matter to which the hon. Gentleman refers will be set out in regulations. Clearly, that needs to be considered, because we need to ensure that there is a mechanism whereby payments are required to be made earlier in the development. That mechanism will be there and we can make that happen.
In due course, as I have said, we will consult on how the levy might be collected and paid. For example, we intend to explore whether a substantial proportion of the levy should be paid prior to the completion of the development or a phase of it. That plays into what the hon. Member for Greenwich and Woolwich mentioned. It would give charging authorities confidence that they will secure funds before the development is sold on. I hope that my reassurances that the Bill already provides powers to achieve the objectives laid out in the amendments in this group will mean that at this point my hon. Friend the Member for Buckingham is able to withdraw his amendment and that the hon. Gentleman feels able not to move amendment 161.
Greg Smith
As I indicated earlier, I am happy to do so. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Ordered, That further consideration be now adjourned. —(Gareth Johnson.)
Levelling-up and Regeneration Bill (Nineteenth sitting)
Marcus Jones Excerpts(2 years, 3 months ago)
Public Bill CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Matthew Pennycook
As ever, it is a pleasure to serve with you in the Chair, Sir Mark. Having debated this morning in broad terms the deficiencies of the proposed infrastructure levy as we see them, and the corresponding case for discretion in terms of its adoption and core elements of its design, I turn now to a far more specific concern.
Part 1 of schedule 11 makes changes to the Planning Act 2008 by inserting new part 10A, providing for the introduction of the new levy. The new power replicates section 205 in part 11 of the 2008 Act, albeit with an important change that makes clear that the purpose of the levy now includes anything specified by the Secretary of State under subsection (5) of proposed new section 204N, in schedule 11 on page 294. The proposed new subsection makes clear that regulations may allow for circumstances in which a specified amount of the infrastructure levy is applied to purposes other than funding the provision, improvement, replacement, operation or maintenance of infrastructure, defined so as to include transport, schools, medical facilities, open spaces, flood defences, affordable housing and a number of other items.
That gives rise to two obvious questions. First, what purposes other than the provision, improvement, replacement, operation or maintenance of infrastructure, defined as broadly as it is in proposed new section 204N(3), on page 294, would IL ever need to be spent on? Perhaps the Minister can give us an example of what kind of non-infrastructure the Government believe those powers should fund. Secondly, why should developer contributions secured in relation to a particular area be used to support the provision of non-infrastructure items that may be unconnected to it? Our concern is that allowing the purpose of IL to include anything specified by the Secretary of State may give rise to a situation—as, I might add, the 2020 White Paper explicitly suggested—in which proceeds from the infrastructure levy are used to fund things such as service provision or the reduction of council tax.
There may be a far less problematic reason for the inclusion of the relevant language in proposed new section 204A(2) specifying that IL can be used to achieve any purpose under proposed new section 204N(5). For example, it may simply be the means of facilitating the continuation of the neighbourhood share under the new system. However, if that is the case, why not make that clear in the Bill? Given how widely drawn the language in proposed new section 204N(5) is, we remain concerned that it could lead to much-needed IL funds being directed to purposes other than supporting the development of an area by funding its infrastructure. That is the concern that amendments 148 and 149 are designed to address, by deleting the relevant language from proposed new section 204A(2) on page 282.
In our previous debate, I outlined in detail our concern that the levy as proposed will fail to secure as much—let alone more—public gain from developers than the present system. Allowing specified amounts of IL to be used to fund non-infrastructure items that might be unconnected to a given area would exacerbate that problem by further depleting the funding available for infrastructure, including affordable housing, in that area. The amendments would simply ensure that any funds generated by the levy would have to be spent on infrastructure that supports the development of the area in question. I look forward to hearing the Minister’s response.
The Minister for Housing (Mr Marcus Jones)
It is a pleasure to serve again under your chairmanship, Sir Mark. The Bill seeks to give local communities control over what is built, where it is built and what it looks like. It creates an incentive for communities to benefit from development. The delivery of infrastructure is a key pillar in our approach, and the levy is our key tool to support that.
We think that the local authority is best placed to decide which infrastructure projects it should spend the proceeds of the levy on. The Bill will require local authorities to prepare infrastructure delivery strategies. These will set out a strategy for delivering local infrastructure through spending levy proceeds. There is scope to allow even more flexibility on spending, to further incentivise communities to benefit from development. The Bill enables the funding purposes of the infrastructure levy to be extended to such purposes as may be specified by the Secretary of State under proposed new section 204N(5) if certain circumstances apply.
Rachael Maskell (York Central) (Lab/Co-op)
Could the Minister give some examples of what those extensive directions could include, because that is not made clear in the Bill?
Mr Jones
If the hon. Member bears with me for a moment, I will give her an example.
The measure will enable regulations to set out the circumstances where charging authorities could spend a specified amount of the levy on items that are not infrastructure. This means that in some areas, once local authorities are able to meet their affordable housing and infrastructure needs, they could have scope to increase their flexibility on what they spend levy receipts on, such as improving local services. This would remain a matter for the local authority to decide on, subject to any limitations set out in regulation or guidance, ensuring that infrastructure and affordable housing remain priorities. Furthermore, it is right that even if such extended funding of the levy is permitted and taken up by the local authority, it should be subject to the overall test in proposed new section 204A that such costs must not make the development an area economically unviable. Therefore, we do not believe the amendment is necessary, so I ask the hon. Member for Greenwich and Woolwich to withdraw it.
Matthew Pennycook
I think that was a useful answer from the Minister, for the following reasons. He clearly stated that the reason for the flexibility is to allow local planning authorities to spend levy receipts on non-infrastructure items not covered in proposed new section 204N(3). That is very useful, because he has responded to our concern by saying on the record that the infrastructure levy could be spent on things such as the funding of services.
The Minister made an important qualification, which I will address. He made clear that local authorities would be allowed to spend only once they had met their affordable housing targets and infrastructure needs. I applaud his optimism that the levy will cover not only all affordable housing provision and core infrastructure, but other things such as services. I welcome that clarification.
The Minister will do two things, I think. When we come to them in due course, I think he will accept our amendments to strengthen the Bill’s requirements on meeting affordable housing supply. However, I still think the Bill needs to be tightened to specify what kind of non-infrastructure the levy could be spent on in the circumstances he outlines. At the moment, it is incredibly broad—it relates to any purposes specified by the Secretary of State—and that remains a point of concern. Although I will not push this amendment to a vote, we may return to this issue. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
I beg to move amendment 196.
Proposed new section 204A in schedule 11 sets out the overall purpose of the levy, which is to ensure that the costs incurred in supporting the development of an area can be funded wholly or partly by the owners or developers of land in a way that does not make development of an area economically unviable. The overall purpose also applies to the costs incurred in achieving the other specified purposes that are allowed under the levy regime.
Proposed new section 204A currently cross-references to purposes that may be specified under proposed new section 204N(5). That means that the levy regulations may allow levy receipts to be spent on matters other than infrastructure, such as improvements to local services and delivery of local programmes that are valued by local communities. Although the infrastructure levy will primarily be spent on infrastructure and affordable housing, that will give us the scope to allow local authorities more flexibility over how they spend the levy if those priorities have been met.
The amendment will correct an omission and ensure that proposed new section 204A also correctly cross-refers to the powers in proposed new sections 204O and 204P, which will also allow levy receipts to be spent on other specified purposes, such as non-infrastructure matters. Where that is allowed, it must be subject to the overall purpose set out in proposed new section 204A. To ensure that proposed new section 204A correctly interacts with proposed new sections 204O and 204P, we are introducing a minor technical amendment to ensure the cross-reference is properly made. I therefore respectfully ask the Committee to support the amendment.
Matthew Pennycook
I rise to speak briefly to this Government amendment, notwithstanding our debate on the previous group of amendments. There is nothing in the Bill to ensure that local authorities meet a sufficient level of housing need—we will come to that—or of infrastructure need. Even taking into account the Minister’s reassurances on how the levy can be spent, I remain concerned. If anything, Government amendment 196 augments the concerns I have just spoken about. By specifying that the aim of the levy can include any purpose specified under proposed sections 204N(5), 204O(3) and 204P(3) of the Planning Act, the amendment allows proceeds of the levy to be spent not only on non-infrastructure items that might be unconnected to a given area in a way already made clear in the Bill, but on a wider set of, one presumes, non-infrastructure items. In a sense, the amendment’s intention is to widen the scope of the non-infrastructure items to which specified amounts of IL can be directed.
As I have made clear, we strongly believe that funds generated by the levy should be spent on infrastructure that supports the development of the area in question, and we oppose this Government amendment for the same reasons I set out in relation to amendments 148 and 149. I will not press the matter to a vote, but I want to put that on the record. We feel very strongly, as I think local communities will, that the proceeds of an infrastructure levy should be spent on infrastructure in their area. If anything, rather than having surplus amounts to spend on other items specified by the amendment or the Bill, I believe that the levy will not cover all those infrastructure costs.
Mr Jones
Let me respond to the point raised by the hon. Member for Westmorland and Lonsdale. Clearly, the firm intention of the policy set out in schedule 11 is that the requirement for relevant infrastructure and affordable housing in a particular area is satisfied. However, there may be circumstances where a local authority, while satisfying those criteria, uses this mechanism. As I have said before, we expect to capture more value from developments because we will be capturing the value of the uplift of the finished product, not just the value at the point at which planning permission is achieved. Therefore, the expectation is that there could be greater value and it could enable local areas to do additional things, alongside the relevant and necessary affordable housing and infrastructure. I hope that reassures the hon. Gentleman about the Government’s intention.
Amendment 196 agreed to.
Matthew Pennycook
I beg to move amendment 150, in schedule 11, page 282, line 32, at end insert—
“(2A) The intention of IL is to enable local authorities to raise money from developments to fund infrastructure to support the development of their areas while allowing planning obligations under section 106 of the Town and Country Planning Act 1990 to continue to be used to provide affordable housing and ensure that development is acceptable in planning terms.”
Mr Jones
The hon. Member for Greenwich and Woolwich is correct to raise the importance of affordable housing delivery for local communities. Amendments 150 to 152 would prevent the infrastructure levy from being used to fund affordable housing, and I understand why he has tabled them. The provision of affordable housing is critical, and section 106 planning obligations currently deliver around half of all affordable housing in England. The Government do not want the new infrastructure levy to reduce the number of affordable homes that are secured when new development comes forward. In fact, the opposite is true: we are committed to the delivery of at least as much, if not more, on-site affordable housing through the infrastructure levy as is delivered through the current system of developer contributions.
Section 106 is an imperfect mechanism for securing affordable housing and can result in prolonged and costly negotiations that often generate outcomes that favour developers. Developers can often use their greater resources to negotiate policy-compliant levels of affordable housing downward on viability grounds. Local planning authorities tell us that the ability to secure developer contributions through negotiations is dependent on the individuals involved in the process. The amount that local authorities secure from developers will vary depending on which officers lead the negotiations, and their experience, strategy and confidence. This unpredictable element in the negotiation of section 106 obligations means that some authorities can secure more affordable housing than others, and that value that could be secured by local government instead goes to developers and landowners.
Rachael Maskell
The Minister is making the case that section 106 should be amended so that more power is given to local authorities. Why is he not taking that step to ensure that developers do not have the upper hand in negotiations?
Mr Jones
We are advocating delivering the same amount or more affordable homes through the infrastructure levy than are currently provided through section 106. That is based on the ability to capture more value from new development than is already the case, and the fact that there will be a more consistent approach that will not allow the current situation, wherein certain authorities that have the experience and ability at officer level to negotiate better section 106 agreements than others benefit significantly from being able to do so, compared with some authorities that do not appear to be in that position.
Rachael Maskell
I do not understand why the Minister does not just change the framework around the negotiations so that all authorities have the powers they need to get the outcomes they require, rather than introducing a system that will weaken the ability to determine what is actually good for a site and the infrastructure that communities need—let alone the affordable housing they desperately need.
Mr Jones
We are all concerned with making sure that we get as much affordable housing as we can from housing developments. Clearly, what I am arguing for is a wider package of measures that we believe will deliver at least as much affordable housing as under the current system, if not more, together with the infrastructure that communities need.
It is not fair that communities lose out just because their local authorities have effectively been strong-armed during the negotiation, and it is not fair that developers may face arbitrary variation in the demands for contributions in different places. If developers do not know how much they are going to have to pay, it is much harder for them to price contributions into land. There is currently an incentive to overpay for land and then try to negotiate contributions downwards.
To address the inequality of arms that the Committee has discussed, the new levy will introduce the right to require affordable housing through regulations. The right to require will enable local authorities to determine what proportion of the levy they want delivered in kind as affordable housing and what proportion they want delivered as cash. That will mean that local authorities, not developers, will get the final say on the proportion of affordable homes delivered as an in-kind levy contribution on a site. It is therefore important that affordable housing is considered as a kind of infrastructure that can fall within the levy regime.
It will be equally important that the levy delivers at least as much affordable housing as under the current system. That is why, when the levy rates are set, charging authorities must design them with regard to the desirability of ensuring that the rates can maintain or exceed the amount currently secured through developer contributions.
Let me address a couple of other points. The hon. Member for Greenwich and Woolwich was concerned about less-viable sites and lower-value sites. I reassure him that local authorities will set a minimum threshold that reflects build costs and existing use values, as well as setting levy rates. The minimum threshold will help to ensure that lower-value sites continue to come forward.
The hon. Member for York Central mentioned concerns about risk and about delivering affordable homes and infrastructure while the changes take place. I reassure her that, as we discussed in the earlier debate on the infrastructure levy, we will be driven by a test-and-learn approach. The lessons from that work will be learned to make sure that we achieve our objectives, and the places that are not using that approach in working with the new infrastructure levy will continue to work on the same basis as they do now until the new system is rolled out. I reassure the hon. Lady again that the process could take some years to achieve to make sure we get it right.
On that basis, I hope that the hon. Member for Greenwich and Woolwich will not press amendments 150 to 152 to a Division.
Matthew Pennycook
I thank the Minister for his response, but I am afraid I am not reassured, for the following reasons. The Minister rightly said, and I accept, that section 106 is an imperfect mechanism for extracting public gain from developers, but, as we have already debated, it is one that can be improved on, and has been in recent years, and can be reformed further.
The question before us, which goes back to the wider debate we had earlier, is: will the levy system replace the current system with one that will extract sufficient public gain to at least allow the same levels of affordable housing? I have listened carefully to the Minister, and he has made repeated commitments that it will extract at least as much as that gain. However, as we will come on to with the next set of amendments, there is nothing in the Bill that guarantees that the levy framework, even if it does extract the same amount of gain, will lead to a situation in which at least as much affordable housing is required. The language—I will come to this in the next debate—in proposed new section 204G is incredibly weak in that regard.
Nothing I have heard this morning reassures me that we are not implementing a system that will fail to extract the same amount of public gain when it comes to infrastructure and affordable housing as the present system. There is nothing in the Bill to ensure that local authorities spend their levy proceeds on the levels of affordable housing required to meet the housing need in their area. Given all the risk and uncertainty of replacing the existing system with the proposed one, I feel strongly that the Government are making a fundamental mistake by including affordable housing within the scope of the levy. I will therefore press amendment 150 to a Division.
Question put, That the amendment be made.
Mr Jones
The hon. Member for Greenwich and Woolwich is right to refer to the importance of the new levy in supporting the delivery of affordable housing for local communities and in contributing to meeting local need. As we have discussed, the Government are committed to getting at least as much, if not more, on-site affordable housing through the new levy as we do under the current system of developer contributions.
The definition of affordability, as challenged by amendment 153, is a complex and evolving picture that is better understood and monitored at local level. It is therefore appropriate to allow for infrastructure levy regulations to provide for any other description of affordable housing, beyond that defined as social housing in part 2 of the Housing and Regeneration Act 2008. This will ensure that any new types of affordable housing tenure introduced in the future can be brought into the scope of the levy.
Matthew Pennycook
I am sorry to put the Minister on the spot, but it would be useful if we had an example of the type of housing tenures that the Government believe that that specific line in the Bill is required for, given the already very broad definition of social—affordable—housing in part 2 of the 2008 Act.
Mr Jones
As the hon. Member knows, when the 2008 Act was brought into effect by the last Labour Government, there was a reasonably wide definition of the different types of affordable housing. One of the evolutions in affordable housing recently has been the introduction of First Homes. I hear what the hon. Member for Greenwich and Woolwich says about that, but we are working to make sure that we have 1,500 first homes by the end of March 2023; that will be significant progress. The vast majority of affordable housing currently provided does fall within the definition that we have discussed, which was put into legislation in 2008, and we envisage that that will continue to be the case under the levy. However, accepting amendment 153 would mean placing a lot of reliance on the definition of social housing in the 2008 Act. Clearly, social housing is an extremely important part of the mix of affordable housing, but amendment 153 would reduce the levy’s ability to respond to any changes in tenure types that arise in the future. That is not helpful or necessary. It is right that the levy regulations should provide future-proofing and regulatory flexibility.
Amendment 154 deals with exemptions for sites that are 100% affordable housing. Subsection (5)(h) of proposed new section 204D of the Planning Act 2008, in schedule 11 of this Bill, already contains a power for levy regulations to make provision about exemptions from or reductions in levy liability. The levy will be used to secure contributions towards affordable housing. We do not expect to charge the levy on exclusively affordable housing developments; we will explore that matter further in consultation. However, all development will be required to deliver the infrastructure that is integral to the functioning of the site, and we will retain the use of planning conditions and restricted use of section 106 agreements to secure that.
Amendment 155 would require infrastructure levy rates to be set at a level that enables an authority to meet the affordable housing need specified in a local development plan. The total value that can be captured by the levy, or indeed any system of developer contributions, will not necessarily match the costs of meeting the entire affordable housing need of an area as specified in the local development plan. Revenues will depend on the amount and types of development that come forward, and when they come forward, as much as on the levy rates and thresholds set. That said, the Bill recognises the importance of using the levy to deliver affordable housing. Proposed new section 204G of the Planning Act 2008, in schedule 11, provides that charging authorities must, when setting their rates, have regard to the desirability of ensuring that affordable housing funding from developer contributions equals or exceeds present levels. That will ensure that affordable housing need is accounted for when levy rates are set; to ensure that, those rates will be subject to public examination.
Importantly, the Bill makes provision for rates to be set with regard to increases in land value—for instance, as a result of planning permission. Targeted increases in rates will allow charging authorities to maximise the revenue that they can capture, and the amount of affordable housing that they can deliver.
We have designed the levy so that it can deliver at least as much affordable housing as the current system, if not more. As I have explained, the new right to require will require affordable housing to be provided. That will be introduced through regulations. That means that local authorities will get the final say on the proportion of levy contributions that go towards affordable homes. Should the levy generate more revenue than at present, local authorities could choose to direct those additional revenues towards meeting their additional affordable housing needs.
Rachael Maskell
How are local authorities making calculations about the loss of affordable housing? Clearly, if we just look at new developments, we could say, “There is this growth in affordable housing”, but if authorities are losing stock, the proportion of affordable housing in a community is decreasing. How will that be addressed? If the local plan is just about future developments, should there not be some adjustment for the loss in existing stock? I am talking about not just social stock, but ownership stock.
Mr Jones
I thank the hon. Member for that point. Like many other areas, York’s housing market is affected by the tourist industry that the city attracts. It is for local areas—I am glad that the hon. Member’s area is forming a local plan—to assess the housing need in their local plan; they should take matters such as the amount of affordable housing, and the need in an area, into account when making that plan.
Local authorities will need to balance the objective of providing affordable housing with the levy’s other aspirations. Local authorities will need to use the levy revenues to deliver other critical infrastructure, such as new roads and medical facilities. Local authorities, which know their local areas, are best placed to balance funding for affordable housing with funding for other infrastructure needs.
On amendment 156, proposed new section 204Q, introduced by schedule 11, introduces the requirement for levy charging authorities to prepare an infrastructure delivery strategy, which will outline how a local authority will use the money the levy generates through a strategic spending plan. That will include an outline of how it will use levy revenues to secure affordable housing. It is important that that happens in each area. The charging authority will have regard to that when setting levy rates. The exact detail of the infrastructure delivery strategy and how it should be produced will be determined through regulations. We will consult on matters relating to the infrastructure delivery strategy, and forthcoming secondary legislation and guidance will clarify how to treat affordable housing. All of that will be informed by our commitment to deliver at least as much affordable housing as we do under the current system.
I hope that my explanation gives the hon. Member for Greenwich and Woolwich clear assurances on how the new levy will support the delivery of affordable housing, and therefore I ask him to withdraw the amendment.
Matthew Pennycook
I thank the Minister for that comprehensive response. I will take each part of it in turn. I note what he says about the powers provided for in proposed new section 204D(5)(h) to the Planning Act 2008, regarding 100% affordable sites, and I welcome his commitment that the Government do not expect those sites to have the levy applied to them. That should be written in the Bill, but I take that commitment at face value, and I hope to see it fleshed out via the regulations.
Matthew Pennycook
I beg to move amendment 157, in schedule 11, page 283, line 28, at end insert—
“(1A) But a charging authority may not charge IL on development in its area comprising—
(a) over 150 residential units, or
(b) over 10,000 sq m of floorspace
and instead Part 11 of the Planning Act 2008 (Community Infrastructure Levy) applies to such developments.”
This amendment would specify a threshold for large sites in relation to which the role of section 106 TCPA 1990 agreements would be retained, meaning that the community infrastructure levy would continue to be used to support such development.
I made clear at the outset of our consideration of part 4 that the levy differs from that set out in the 2020 White Paper in several important respects. One of those is that the Government now propose to retain a distinct role for the current system of section 106 planning obligations, rather than replacing it entirely, as per the White Paper. We are told that narrowly targeted section 106 agreements will still be used for securing infrastructure integral to the operation and physical design of a site. The examples in the policy paper that accompanies the Bill—internal play areas and flood risk mitigations—suggest that the use of such agreements in this way will be a frequent occurrence. More importantly, we are also told that the Government want a role for section 106 agreements in supporting the delivery of larger strategic sites. On such sites, infrastructure can be negotiated and provided in kind; the value of what is agreed must not be less than what would have been paid through the levy. This raises a host of questions, as does every aspect of the Government’s proposal.
Will developers have to pay the difference where the cost of delivering infrastructure on large sites is less than the required IL charge would be? Correspondingly, would charging authorities have to refund developers if it transpired that the cost of delivering infrastructure was higher than the given IL charge? Who defines what is on-site infrastructure, and what can act as credit against the nominal levy charge? Will it be set out in regulations—there is then a risk that it will be too inflexible—or will it be defined by each charging authority? There is then an associated risk of additional complexity. How do we avoid developers providing a range of unnecessary on-site facilities in order to reduce their liability vis-à-vis that levy charge?
Those and other important questions aside, in general terms we very much welcome the proposed retention of section 106 agreements, both for the infrastructure that is integral to the operation and physical design of sites and for larger strategic sites. Indeed, when it comes to the latter, the continued use of section 106 is essential to ensuring that they are developed, given the obvious pitfalls of attempting to do so solely via the levy, with all the inherent flaws that we discussed earlier today.
However, schedule 11 does not define what actually constitutes a larger site for the purposes of the ongoing role of section 106 agreements. Amendment 157 simply seeks to place that definition in the Bill, in proposed new section 204B of the Planning Act 2008, so that there is clarity at the outset of the process of introducing and implementing the levy as to the site size threshold above which IL would not be charged.
The amendment proposes that, for the purposes of permitting an ongoing role for section 106 agreements, a large site should be defined as an area comprising over 150 residential units, or over 10,000 square metres of floorspace. We have chosen those threshold values for a number of reasons, but primarily because schemes of over 150 units or 10,000 square metres of floorspace are typically more complex, take longer to deliver and are often phased, and are more likely to require site-specific mitigation, thus benefiting from the ability of section 106 agreements—this is one of their key strengths—to tailor obligations to the specific circumstances of a site.
On large sites thus defined, which would account by our estimates for around 5% of current approved residential projects nationally, affordable housing provision would be delivered via section 106, as under the present arrangement. To avoid the delay and complexity of securing contributions for core infrastructure on the sites by means of such agreements, amendment 157 makes it clear that the existing provisions of part 11 of the Planning Act 2008 would still apply, thereby enabling contributions relating to the sites to continue to be secured by means of the community infrastructure levy.
We believe that straightforward and uncontroversial amendment would provide certainty as to what does and does not constitute a large site where there will be an ongoing role for section 106 agreements at the outset of what will be, by the Minister’s own admission, a lengthy process of testing, implementing and rolling out the new levy. I look forward to hearing the Minister’s response.
Mr Jones
The Government intend that the levy will replace CIL, except for the Mayor of London and in Wales, and largely replace the discretionary negotiated section 106 regime. However, following feedback through consultation and engagement with the industry, we recognise that, in some limited circumstances, a case exists for retaining a role for section 106 planning obligations in the delivery of infrastructure. Such circumstances include large and complex sites where infrastructure requirements are site-specific and require a more negotiated approach to ensure that infrastructure is provided at the right time. It is important to set the right definition for large and complex sites. We need to strike a balance between creating a more consistent levy system, while retaining flexibility for some negotiations on sites with complex infrastructure needs. On sites where section 106 agreements will continue to be used, we still expect developers to deliver at least as much overall value. It is just that some of it will be as in-kind infrastructure contributions rather than as a cash payment.
Setting the threshold in the Bill for when section 106 agreements should be used runs the risk of impacting on the effectiveness of the levy. If it is set too low, lots of development will continue to use section 106 agreements, and developers will continue to strong-arm local authorities over the value of their contributions. If we set it too high, it can impact infrastructure delivery on sites with complex and competing infrastructure needs. That is why we intend to consult on what the threshold should be, to allow us to consider stakeholder feedback and different options. The levy regulation, which will be laid before the Commons for approval, will specify the circumstances in which section 106 agreements will continue to be used. For the reasons I have explained, I request that amendment 157 be withdrawn, to allow us to consult further on when the use of section 106 agreements would continue to be more appropriate.
Matthew Pennycook
I appreciate the Minister’s response and, taking on board what he has said, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
Proposed new section 204F of the Planning Act 2008 makes provision requiring an exemption from paying the levy where the party liable to pay is a charity and where the building or structure will be used for a charitable purpose. “Charitable purpose” here has the meaning in section 2 of the Charities Act 2011. It is something that is “for the public benefit” and is for a specific purpose, such as the prevention or relief of poverty, the advancement of education, health, the arts or sport, or the provision of relief to those in need. That kind of development is entitled to exemption from the levy in its entirety.
Under the current system of section 106 planning obligations, an obligation can constitute a reason to grant planning permission only if it is directly related to the development. For that reason, affordable housing contributions tend to be sought on residential developments. Amendment 158 would substantially extend the range of development required to deliver contributions towards affordable housing, including non-residential charitable development. In general, we oppose the amendment because it is not appropriate for charities providing services for the public benefit to also be required to provide affordable housing. It would be unfortunate if all kinds of charitable development, from drug treatment facilities to village halls, became economically unviable because we required them to fund an element of affordable housing as well.
Rachael Maskell
It is becoming clear in the debate that there are charities and charities. Some charities are run by major businesses and make a profit. Say a private school was disposing of a playing field that would then be used for the development of unaffordable housing to provide significant funding. Should that private school be exempt because it has charitable status under the Charities Act? Would that be right, because surely it is acting like any other business?
Mr Jones
The hon. Member makes a very good point. A charity that builds something that is not for a charitable purpose would not be subject to an exemption from the levy under proposed new section 204F. For example, feeding into what she said, if a charity were delivering market housing, that would be unlikely to meet the definition of a charitable purpose. If there are specific scenarios where contributions should be sought, the Bill enables us to consider them as part of the development of the levy’s regulations. More broadly, we will consult on the types of exemptions that should apply to the levy prior to laying the regulations before the Commons for approval. For those reasons, amendment 158 is not necessary.
Rachael Maskell
I want to test another scenario. Say the same educational establishment develops a nursery on that site, but the nursery has a commercial interest. Under the debate that we had about the provision of services, that could be seen as one of the services that could come under the infrastructure levy. A nursery could be a profit-making opportunity for said institution, while also providing support for children under the Government’s funding for nurseries. Would that be included or excluded from the scheme that the Minister is outlining?
Mr Jones
I thank the hon. Member for that question. I will not get drawn into lots of different examples, but we are very clear that we are talking about charitable purposes under the definition in the 2011 Act.
Turning to amendments 159 and 160, there may be other instances where an institution is established for charitable purposes but does not meet the definition of a charity—for example, a charity established in Scotland, Northern Ireland or overseas. Amendments 159 and 160 would remove the express ability for regulations to set exemptions or reductions in the levy for these types of institutions. This would mean that only English and Welsh charities could be exempt from the levy when delivering development for charitable purposes. While we recognise that this will be less common, it would still be unfortunate if other types of charitable institutions could not deliver important facilities because of increased costs from the levy.
We are aware that different charitable institutions may operate differently from English and Welsh charities. That is why it is important to maintain a separate power to prescribe in regulations in detail the levy liabilities of such institutions. That enables provision to be made in the regulations, which will keep up with future changes that might be made to charities law. There will also be instances where a charitable institution carries out development that itself is not for charitable purposes but that it should none the less be able to claim an exemption or reduction for.
In the current CIL system, the CIL regulations make use of this power to provide for relief from CIL liability at the discretion of the local authority for developments carried out by charities for investment purposes. This approach works, which is why we do not agree with amendments 159 and 160, which would remove the express ability to set this kind of exemption or reduction through regulations in the future.
I hope that I have provided helpful clarification to the hon. Member for Greenwich and Woolwich and other members of the Committee. I therefore kindly ask the hon. Member to withdraw his amendment.
Matthew Pennycook
I am partly reassured by what the Minister said, not least because he clearly indicated that the Government are going to go away and give further consideration to designing regulations. However, I urge him—or his successor when he is promoted—to really look into this issue, because I think there is a chance here, as Members have commented on, for a loophole to be exploited in ways that would cut across the purposes of the Bill as per the Government’s thinking. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Rachael Maskell
I beg to move amendment 167, in schedule 11, page 287, line 28, at end insert—
“204FA Social enterprises and community interest companies
(1) IL regulations must provide for an exemption from liability to pay IL in respect of a development where—
(a) the person who would otherwise be liable to pay IL in respect of the development is a social enterprise or a community interest company, and
(b) the building or structure in respect of which IL liability would otherwise arise is to be used wholly or mainly for the purposes of social enterprise or the community interest.
(2) IL regulations may—
(a) provide for an exemption from liability to pay IL where the person who would otherwise be liable to pay IL in respect of the development is a social enterprise or a community interest company;
(b) require charging authorities to make arrangements for an exemption from, or reduction in, liability to pay IL where the person who would otherwise be liable to pay IL in respect of the development is a social enterprise or a community interest company.
(3) Regulations under subsection (1) or (2) may provide that an exemption or reduction does not apply if specified conditions are satisfied.”
This amendment makes equivalent provisions about the Infrastructure Levy for social enterprise or community interest companies as it does for charities under inserted section 204F.
The reason for the amendment is that there are different forms of businesses across communities. At this point, I should declare an interest as a Member of the Co-operative party. Social business is really important across our communities. Social businesses, enterprises and community interest companies have a different focus from the run-of-the-mill business. They are not there for profit. They are there to reinvest in their service users and facilities and to give back to their communities.
I think there is a real anomaly in the legislation. Today, the voluntary, community and social enterprise sector is referred to as one, recognising the charitable aims and social aims that these organisations bring. In moving the amendment, I am looking for parity, to recognise the fact that not-for-profit organisations—community interest companies and social enterprises—make an investment in their communities. They can make an investment by employing people from a place of disadvantage and by giving people opportunities in life. However, they are businesses as well, running cafés, for instance. Obviously they reinvest the proceeds they make into people in the community or they perhaps run a nursery or another form of business. We have seen the real benefit that that brings—it certainly addresses the levelling-up agenda. It enables people to move forward in their social mobility journey.
These organisations often start out with no assets whatever. They are very small. They build, reinvest and grow, which is good for the local economy. We need only to look at Preston as an example. It has invested—I look at the Chair, who is the MP for Preston—in the community. It has invested in the model of social business as well, and we know the importance of that. We want to see that rolled out across our communities. If these organisations grow and want to invest more and further benefit the community, but they then have to pay the infrastructure levy, that will curtail the opportunities that they can bring to our communities, and we do not want to see that. We want to see community interest companies, co-operatives and social businesses grow in a way that allows them to reinvest in our communities.
One thing that I have found most inspiring over the last few weeks is meeting organisations that are putting incubators for social enterprises in their communities—again, with no asset, but they provide an opportunity to bring forward a generation of new community interest companies and social enterprises. I have seen a little bit of that on the SPARK site in York, which really has put a spark into York. It is built out of old containers on a site and has brought a new energy into the city centre. It has been a fantastic opportunity, running and helping businesses to develop the ethos of community interest companies as they move forward.
I do not understand why in the legislation credible social businesses, social enterprises and community interest companies do not have exemptions when they give so much back to our communities and bring real transformation to our society. I want the amendment to be made. It is an omission; perhaps the Minister will explain why such an omission was made. Will he also reflect on the charities when it comes to the consultation and looking at further regulations? Will he include social enterprises and community interest companies in the substantive next phase of the legislation?
Mr Jones
As I said under amendment 158, proposed new section 204F of the Planning Act 2008 allows for certain charities carrying out development for charitable purposes to be exempt from the levy. Proposed new section 204D(5)(h) also provides powers to exempt or reduce levy liabilities through regulations. This would allow us to set national exemptions or reductions where it is appropriate for other types of development by other types of organisations. When considering the approach to exemptions and reductions, we will need to consider a wide range of development types, including those put forward by the amendment. There is an important balance to strike. Although we will explore national exemptions and reductions to the levy, we want local authorities to be able to make their own decisions about how they might want levy exemptions to apply.
Rachael Maskell
I am grateful to the Minister for making that point. Obviously, if local authorities are going to make such determinations, they will have to look for the maximum opportunity. As the legislation is unamended, they will also seek to subsidise the affordability of housing as well. It is very unlikely that a local authority will then look for wider exemptions from the infrastructure levy, so I cannot see how that would work in practice to deliver the objective to which the Minister refers.
Mr Jones
I was just bringing it to the hon. Member’s attention that there is a balance to strike in these matters. Clearly national exemptions are an important part of this, but we want to give a certain amount of local flexibility. Our forthcoming consultation on the infrastructure levy will explore this question further. It will allow us to look at the case for exemptions in the round, and decide what types of developments should not be subject to the charge, or should be subject to a reduced charge. Following consultation we will set out in regulations where a charge to the levy will not apply. Those regulations will be subject to debate in Committee and approval in the House. On that basis, I do not consider the amendment necessary and kindly ask her to withdraw it.
Rachael Maskell
I rise to make a brief point. It is more about the scope of what we have discussed—the infrastructure levy being able to contribute to affordable housing and social housing within a development. One of my fears is that everything is left to the end; it is left to the end to calculate everything, and we end up with what has happened at St Peters Quarter, in York, with the high-value housing—beautiful, spacious housing—in one area and then the section 106 housing in the corner, where there is no proper infrastructure to support it because there is no money left. We therefore get real segregated communities.
I go back to the report that John Hills wrote in 2007. I was at a meeting with him, discussing the report, and he was talking about the importance of place making and mixed communities. We could be in danger of ending up with more divided communities if everything is paid at the end. Therefore scheduling payment is really important. Developers know that that money will have to be paid, and we should ensure that it can be paid in a timely way so that we do not end up with the scenario that we have articulated so much with either the section 106 provision coming never or the infrastructure levy money not delivering on the expectation at the start of the planning process. That could of course occur, but, even worse, we could end up with really divided and segregated communities when we know that the strength and resilience of communities comes where we see that housing jumbled up.
A good example would be Derwenthorpe, in York, where it is not possible to tell what is a social house, what is a privately owned home or where there is equity sharing or anything else, because the houses are all the same and people live in a very mixed and diverse community. That has built strong resilience in the community.
We need to think about more than just housing; we need to think of place making, which I know is Homes England’s real objective. Of course, by holding everything back to the very last minute, we are in danger of not having that. Properly scheduling payment of the infrastructure levy will ensure that we get the proper places that people want to live in and that we build resilience across all communities, as opposed to dividing communities and then developing areas that will create social challenges in the future.
Mr Jones
I thank my hon. Friend the Member for Buckingham for his contribution to the debate on the levy today. Even though it is an inviting proposition, I do not think it would be wise for me to start to try to pre-empt the policy of the new Government, but what I will do is focus on amendments 58 and 161, which are before us.
Charging the levy on the basis of gross development value, which will be the sales value of the development that is sold, will enable the levy to capture more of the increases in development value that occur over time. That will result in better opportunity to capture more value from development to put towards infrastructure and services. Later payments will also reduce demands initially on developer cash flow, and the returns necessary to make a development worth while, because payments will not be required up front.
Payments may be made later, but we recognise the importance of the infrastructure levy supporting the timely provision of local infrastructure alongside new development, so that homes are supported by the right services. That is why it will be possible for local authorities to borrow against future levy liabilities, so they can forward-fund infrastructure.
We are also introducing infrastructure delivery strategies that will drive local authorities to plan more effectively for the best use of levy revenues. On the majority of sites, levy contributions towards infrastructure will be secured in cash, creating a simpler, streamlined system. Developers will, however, still need to deliver the infrastructure on site that is integral to the use of the site, including access roads and flood risk mitigations.
In addition, as we have debated, on larger, more complex sites, we intend to retain the use of section 106 planning obligations to secure in-kind delivery of infrastructure. Such contributions will be offset against the levy liability and the timing of their delivery can be negotiated.
Nevertheless, we recognise that there are circumstances in which early payment and payment by instalments may well be appropriate. That is why the Bill provides powers to allow for that under proposed new section 204R(2) of the Planning Act 2008, which is in schedule 11.
Matthew Pennycook
As we have discussed extensively, given that we would not know the end value until later on in the development and that it would be subject to multiple valuations that might be disputed, how do the Government envisage the operation of a system of payments up front? Will the payments be simply scored off against the projected, expected end value, which will be calculated at a later date? Will the Minister give us a sense of how that sort of arrangement might work in practice?
Mr Jones
As we have discussed a number of times during the debate, the matter to which the hon. Gentleman refers will be set out in regulations. Clearly, that needs to be considered, because we need to ensure that there is a mechanism whereby payments are required to be made earlier in the development. That mechanism will be there and we can make that happen.
In due course, as I have said, we will consult on how the levy might be collected and paid. For example, we intend to explore whether a substantial proportion of the levy should be paid prior to the completion of the development or a phase of it. That plays into what the hon. Member for Greenwich and Woolwich mentioned. It would give charging authorities confidence that they will secure funds before the development is sold on. I hope that my reassurances that the Bill already provides powers to achieve the objectives laid out in the amendments in this group will mean that at this point my hon. Friend the Member for Buckingham is able to withdraw his amendment and that the hon. Gentleman feels able not to move amendment 161.
Greg Smith
As I indicated earlier, I am happy to do so. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Ordered, That further consideration be now adjourned. —(Gareth Johnson.)
Rural Communities: Housing and Planning
Marcus Jones Excerpts(2 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
Thank you, Madam Deputy Speaker; it is a pleasure to serve at the Dispatch Box with you in the Chair. It is four and a half years since I last had the pleasure of speaking from the Dispatch Box and two weeks ago I did not expect to be standing here tonight, but in my 12 years in this House I have learned to expect the unexpected.
I congratulate my hon. Friend the Member for Milton Keynes North (Ben Everitt) on securing this important debate and his thoughtful and impressive speech; he is a passionate champion for his constituency and I listened intently to his remarks. While this debate may specifically apply to his constituency in Milton Keynes, it touches on issues that matter to people in every constituency in the country: how we empower communities to be more strongly involved in the planning process; how we deliver the housing needed in our communities; how our planning regime properly reflects the true interests of our constituents; and how we protect rural areas that give our great nation its reputation for outstanding beauty.
I applaud my hon. Friend for his clear commitment to this issue, and I and the Government share his sentiments. We share his determination to strengthen and protect rural communities and reinforce the bonds that tie them together, and we share the view that our planning rules and regulations must help facilitate that ambition, not hinder it. My hon. Friend has become a well-established Member of the House and, as I am sure he will understand, I cannot comment on the specifics of the Milton Keynes local plan, owing to the Secretary of State’s quasi-judicial role in our planning system. It is good to see the Secretary of State sitting here on the Front Bench tonight; that shows his commitment to the subject. I hope that my hon. Friend the Member for Milton Keynes North will appreciate that, again, I cannot talk too closely to individual planning applications. As he will know, however, local authorities are required to undertake a formal period of public consultation prior to any planning applications. Where relevant concerns are raised, those must be taken into account.
My hon. Friend will know that I can speak to our unwavering commitment to Britain’s rural communities and to keeping this country green and beautiful, as well as what we are doing to protect those areas while encouraging development in the places where it is most needed. Importantly, I can speak to our priorities and what we as a Government expect from local plans.
My hon. Friend rightly champions the vital role that communities should play in the planning process and makes the case for why they should be more involved in the process of bringing forward new development. The Government agree. As part of our levelling-up agenda, we believe that communities need to be at the heart of the planning process.
Madam Deputy Speaker (Dame Rosie Winterton)
The Minister has not been given a lot of time to respond.
Mr Jones
Thank you, Madam Deputy Speaker. A core part of our levelling-up White Paper was how we make sure that, alongside globally competitive cities that are dotted around the country, we have thriving rural communities. Our view is that levelling up for rural areas should preserve what gives those areas an identity and what makes them special—the things that draw in millions of tourists to many of our rural areas because they are the most beautiful parts of our country. As a Government, we recognise that the needs of rural areas and the needs of urban areas are often profoundly different.
The Levelling Up and Regeneration Bill, which is weaving its way through Parliament, will deliver a planning system that puts further power back into the hands of communities. My hon. Friend the Member for Milton Keynes North has spoken about the need for a less adversarial system of planning rules and the need to get communities involved at a much earlier stage in decisions. That makes me think that he must have had some role in drafting the Bill, because that is exactly what we have set out to do.
The Bill will place a duty on local authorities to engage with their communities on proposed plans and reform the process for producing plans, so that it is simpler, faster and easier for communities to engage with. The days of residents ploughing through dozens of PDF files set out in a confusing manner should be over. This will be a clear opportunity for local people to get involved at a key stage in the planning process, with longer minimum periods for engagement than there are now. That will be made easier by plans being shorter, with more accessible documents. At the same time, we will increase the opportunities for involvement to ensure that development is brought forward in a way that works best for local people.
The Bill includes measures to improve our planning system and to bring it into the 21st century by digitising it in a way that helps to radically improve people’s access to the relevant information about plans and planning applications, while removing barriers to engagement by creating a more democratic planning system with planning decisions and local plans being informed by a larger and more diverse range of community views. Our new measures will also give neighbourhoods greater say in how their area looks and feels. In practice, that means that they can help define things such as design codes so that they can shape how their area looks. That kind of transparency will make the process smoother for all parties, while putting more power back where it belongs—in communities’ hands.
I will also cover what we expect from local plans. At the most basic level, local plans are responsible for identifying what development is needed in an area, setting out where it should go and, in doing so, providing certainty for communities, businesses and developers. Any local plan has to pass through a series of checks and balances, including a public consultation and public examination in front of an independent inspector, who is charged with examining plans impartially to make sure that they are legally compliant and sound. Councils can adopt a plan only if it is sound: it should be consistent with national policy, be supported by evidence and, importantly, take the views of local people into account.
I will not comment on the content of the local plan in Milton Keynes that covers my hon. Friend’s constituency, but I know that it was adopted in 2019, so it is less than five years old. An up-to-date plan is crucial, because it reduces speculative development, supports our villages and towns to develop, and can be written in a way that preserves the unique character of their communities. We would expect local planning decisions in Milton Keynes to be made in a way that is consistent with the local plan and that honours the agreement made between the local council and the local community when the plan was formed.
One area in which rural communities have much in common with urban communities is that they all want more affordable housing. As my hon. Friend points out, house prices have continued to defy gravity for years and years, which has had a profound impact on many people who want to become homeowners but have been priced out of the majority of homes in their area. I agree with my hon. Friend that affordable homes are key to ending the housing crisis. Local communities like those of his constituents in Milton Keynes rightly want and expect the Government and local authorities to deliver the kind of homes that help their children and give young people and older people who have always lived in an area the chance to buy their own home.
If we are serious about levelling up and restoring people’s pride in their communities, we have to match our commitment with affordable homes that give local people the opportunity to stay local. We need to rectify the situation, and we have a plan to do so. Our landmark affordable homes programme is one of the central ways in which we are making that happen. Between 2010 and 2021, the scheme has delivered more than 212,000 affordable homes in rural local authority areas. It recognises the needs of rural communities, which is why between April 2015 and March 2021, 10% of all new affordable homes were built in villages with a population under 3,000. The value of those homes goes way beyond mere statistics: each one has the potential to transform the life of hard-working families in an area.
The Government share my hon. Friend’s determination to protect rural communities and strengthen the fabric that holds them together. Once again, I thank him for securing this debate; with so much focus on other events, it is important that in this House we keep discussing and debating the issues that make a real difference to people’s lives. I can only apologise that I could not get into the specifics of some of the constituency matters that he has mentioned. As he knows, we have further to go on the issue and we need to get the balance right between protecting green land and ensuring the homes that the country needs for the future. I look forward to continued dialogue with my hon. Friend, who is a champion for his local area, as the Levelling-up and Regeneration Bill goes through the House. I very much welcome his engagement tonight.
Question put and agreed to.
Levelling-up and Regeneration Bill (Sixteenth sitting)
Marcus Jones ExcerptsTuesday 19th July 2022
(2 years, 5 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 19 July 2022 - (19 Jul 2022)
Rachael Maskell (York Central) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Paisley. I want to add my support to these amendments. The issue seems to be that holiday destinations in particular have been hit by the Airbnb market. I am sure the hon. Member for Westmorland and Lonsdale will be hearing from many of his colleagues about the implications it has, whether they are from Cornwall or Devon, and it is now spreading across the country.
York has been hit, in particular over the pandemic. We have seen a 45% increase in Airbnbs over that period, and it is hitting our communities hard. According to today’s figures, there are 2,068 Airbnbs in my community. We are seeing an extraction economy, where money is being taken out of our local economy predominantly by people from London and the south-east, who can afford to buy these additional properties. They are clearly trying to make a profit, but it comes at the expense of our communities.
We have heard about the impact on public services and the local economy. Hospitality venues are now not able to open full-time for the guest economy, because they cannot recruit the necessary skills. It is skewing the whole economy and our public services, in particular care work, and that is now orientating into our NHS. It is jacking up the house prices in the area, and we are getting this heated housing market because demand is so great. We hear about people coming and buying six, seven or eight of these properties at one go.
The result of this increased demand is that local people are impacted. They are faithfully saving for their mortgage, but when they go to put an offer on a house, someone undercuts them by tens of thousands of pounds, because they know that they will get the return. Renting a property in York costs, on average, £945 a month. An Airbnb stay over a weekend costs £700. That is why we are seeing this massive reorientation. Section 21 notices are being issued to people in the private rented sector to move them on to make way for Airbnbs.
The undercutting of prices is also impacting on the regulated B&B and guesthouse market, and because Airbnb and second homes are not regulated, the health and safety is not there, and there are so many other checks that are not in place. A registration scheme, which I know the Department for Digital, Culture, Media and Sport is consulting on, is completely insufficient for addressing the challenge. It is a new challenge, and the Bill provides the Government with the opportunity to right the wrongs of what is happening and at the scale it is happening.
Creating these new classes would bring opportunity, but revenue can also be drawn from them. Many of the properties in question are classified under small business rates, so their owners do not pay council tax, but because they reach the threshold for small business rate relief, local authorities such as York are missing out on millions of pounds in revenue that they could get from such properties. It is therefore really important to categorise the properties and then look at how we use the categories.
I mentioned that in York we have 2,068 properties listed as Airbnbs; two weeks ago there were 1,999, so the number of properties that are going out to this new market is going up week by week. That is having a significant impact on York and York’s communities, so I trust that the Minister will not only support the amendment but engage in a wider discussion about what is happening to our communities, particularly in holiday destinations, so that we can ensure that, through this legislation, there is a suite of policies to ameliorate that market.
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
It is a pleasure to serve under your chairmanship, Mr Paisley. The amendment and new clauses raise an issue on which the Committee touched when we discussed our proposal for a second homes council tax premium. As was said in that debate, we recognise the impact that a large and growing concentration of second homes and short-term holiday lets can have on communities.
The hon. Member for Westmorland and Lonsdale is charmingly persistent on this matter, not just for his own constituency, and I have some sympathy with his case. We know that in areas such as the Lake district, Cornwall, Devon and the Isle of Wight there are concerns about the impact of second homes and short-term holiday letting on the availability and affordability of homes for local people. I also know that the proliferation of short-term lets has affected our cities—we have heard the hon. Member for York Central talk about that, and I am aware that it is also an issue in Bath and London—which is why we are listening to local communities about the measures that they think will help to address the issues in their area.
Neighbourhood planning is an important tool in this context and, as I am sure we will discuss further, the Government wish to strengthen it. However, neighbourhood plans can already set policies concerning the sale and use of new properties in their area, including by limiting the sale of new homes for second homes and holiday lets. An example of this is in St Ives, where the neighbourhood plan, approved by local people, introduced a principal residence policy to prohibit the sale of new homes as second homes. Although the policy was challenged in the High Court, the court found in favour of St Ives and its policy. As such, I hope that the hon. Member for Westmorland and Lonsdale will agree that the changes he seeks to make with amendment 119 are already built into the neighbourhood planning system.
Rachael Maskell
I want to highlight the fact that the issue is not just with new properties; it is predominantly existing properties that are brought forward. To put such a policy into the planning process, as the Minister proposes, will address only part of the problem— the future problem—and certainly will not stop the market because it will orientate completely to the existing housing stock.
Mr Jones
I completely understand where the hon. Member is coming from. Clearly, this is about not just new builds but the wider property market. I will address that point later, but let me say now that we are aware of the issue and are doing a significant amount of work to understand the problem further and to work through the possible solutions with communities.
It is important that proposed solutions help to address the issues while avoiding unintended consequences. In that regard, I have some concerns about new clauses 38 and 39, which were also tabled by the hon. Member for Westmorland and Lonsdale. First, they risk increasing the burdens faced by local planning authorities throughout England by creating extra planning applications that they will need to decide. The issue affects different areas in different ways, so our view is that any solutions should provide tools that can adjust to local circumstances.
In addition, I am unsure why the proposal is that a change of ownership, rather than changing a property to a second home or a holiday rental, should trigger the requirement. That means that cases where the existing owner changes the property to a second home or a holiday rental would not be covered until the subsequent owner sought to continue that use. That adds a new test for local planning authorities to apply and monitor and adds complexity to the proposed use classes, in a way that could prove unhelpful.
Mrs Emma Lewell-Buck (South Shields) (Lab)
The Minister mentions a consultation that will end on 21 September. If it recommends putting what is being asked for into the Bill, will he come back and do that?
Mr Jones
For a number of days now, issues have been raised in Committee that it is right for us to reflect on. Clearly, 21 September coincides with the last day of this Committee’s considerations but, as the hon. Member knows, that is not the end of the process. I am not in a position to confirm what she asks for, but it is important that matters drawn to the Government’s attention in Committee are considered carefully. We will see what amendments are tabled on Report, by the Government and by Opposition parties. On that basis, I hope that the hon. Member for Westmorland and Lonsdale will withdraw his amendment.
Mr Jones
Although I entirely understand the desire of the hon. Member for Westmorland and Lonsdale for more affordable housing, particularly in national parks and areas of outstanding natural beauty, I fear that the approach he advocates would be counterproductive.
Clause 88 sets out what communities can address in their neighbourhood development plans. It already allows communities to include policies on the provision of affordable housing in their area, taking into account local circumstances. We recognise that delivering affordable housing in national parks and AONBs can be a challenge. To help address that paragraph 78 of the national planning policy framework includes a specific rural exemptions sites policy. It allows affordable housing to be delivered on sites that would not otherwise be developed to meet specific local housing need, and the majority of that housing will be required to remain permanently available to those with a local connection. In addition, in 2021 we published planning practice guidance to help bring forward more of those sites in the future.
Hon. Members will be aware that authorities in designated rural areas can set policies that contain a lower development threshold, above which affordable housing can be sought. That threshold can be between one and five units, compared to a threshold of 10 units in other areas. We will be consulting on how the small sites threshold should work in rural areas under the infrastructure levy.
New clause 40 would enable planning authorities for national parks and AONBs to mandate that new housing under their jurisdiction is affordable and to define “affordable” for that purpose. Authorities are already empowered to set policies in their local plans that require developers to deliver a defined amount of affordable housing on market housing sites, unless exemptions apply. These policies are able to take into account local circumstances in setting the appropriate minimum amount of affordable housing to be delivered, which will vary across the country.
Under the infrastructure levy, we will introduce a new “right to require” through regulations, by which authorities can require a certain proportion of the levy to be delivered as on-site affordable housing. That will be in addition to the rural exemptions sites, which I have already outlined. The revenue from market housing is vital for delivering affordable housing and other vital infrastructure, with over 24,000 affordable homes being delivered through developer contributions in 2020-21. As we will discuss, the new infrastructure levy has been designed to deliver as much on-site affordable housing as at present, if not more. Requiring only affordable housing could therefore reduce the amount of affordable housing obtained in these areas by making market development unable to proceed at all. Ultimately, that would make the affordability challenges in those areas worse rather than better. As such, although the concerns raised by the hon. Member for Westmorland and Lonsdale are valid and the Government are taking them seriously in our design for the infrastructure levy, I hope he will agree to withdraw his amendment.
Tim Farron
Just to be clear, the wording of the amendment means that it would enable national parks to do these things, and they can choose not to if they wish. If we are about respecting local communities, then what we do is about giving people power, not telling them what they must or must not do. For the Government to not support what I am proposing is effectively removing that choice from them.
I hear what people say about the impact on neighbouring communities. It is worth bearing in mind that national parks are—rightly or wrongly—made up of people from a whole range of different backgrounds. The people who are placed on national parks include those appointed by a Secretary of State, people from parish councils within the national park, and the principal authorities that make up that national park, which also cover areas that are not in the national park. At the moment, most of the area that Cumbria County Council covers is not a national park. It includes larger towns and, indeed, one city within Cumbria, which are not in the national park. Likewise, the district councils also have representatives, and not one of those district councils is majority national park in terms of population, so there is that understanding of the impact beyond the boundaries of a national park.
I understand what the Minister says about the importance of the revenue raised by market housing, but the evidence we see with our own eyes in communities like mine is that when communities can bank on new developments being affordable, we suddenly see a huge reduction in build costs, because landowners will give up land for significantly less than they would have done otherwise. Build costs reduce, and the whole community tries to find ways to achieve things. It is very similar to what has happened in my area with rural broadband—communities can deliver broadband much more cheaply than BT because, as it turns out, landowners are quite happy to allow a bunch of people to dig trenches as part of a community effort. People will do that for nothing, whereas they would not do that for a commercial enterprise. So that does not undermine the case at all.
The evidence I have brought before the Committee—the Rural Services Network stating and showing evidence that, on the Government’s own metrics, rural England is more in need of levelling up than any of the geographical regions of England, even the poorest of them—tells us that we have to do something to tackle the need. This amendment is one way in which that could be done. I understand, however, and was interested in, some of the things that the Minister said, so I will not press it to a vote at the moment. I would love to see further action from the Government to address the issue in the coming weeks. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Rachael Maskell
I will be brief, Mr Paisley. We have just been talking about affordability, and I am sure that the Minister is listening carefully to our considerations and the different challenges we face across our communities. It is so important to be able to develop good, sustainable communities in the future. The amendment simply seeks to take that to the next level and enable neighbourhood planning processes to ensure that 100% affordability is built in to include social development, which is so important to building sustainable communities. We clearly do not see that at the moment. My amendment therefore speaks for itself.
New clause 41 would get there by a different route, so I am supportive of it, because I am trying to find a solution to the issue of affordability, which so many of our constituencies struggle with at the moment. I will say no more on that, but I trust that the Minister has heard and will respond appropriately.
Mr Jones
I understand that the hon. Member wants to see more affordable housing delivered, but I do not agree that the amendment is necessary to achieve that objective. The Government remain committed to neighbourhood planning, and the reforms in the Bill will ensure that neighbourhood plans continue to play an important role in the reformed planning system.
The clause sets out what communities can address in their neighbourhood development plans. It already allows communities to include policies on the provision of affordable housing in their area, taking into account local circumstances. New clause 41 seeks to enable local authorities to mandate that new housing under their jurisdiction is affordable, and to define “affordable” for that purpose. I entirely understand the desire for more affordable housing, but the approach that is advocated through the new clause would be somewhat counter-productive.
Local authorities are already empowered to set policies in their local plans that require developers to deliver a defined amount of affordable housing on market housing sites, unless exceptions apply. Such policies are able to take into account local circumstances in setting the appropriate minimum amount of affordable housing to be delivered, which will vary across the country. Under the infrastructure levy, we will introduce a new right to require in regulations, through which local authorities can require a certain proportion of the levy to be delivered as on-site affordable housing.
The revenue from market housing is, as I said, vital to delivering affordable housing, and we have already provided 24,000 affordable homes through developer contributions during 2021. In addition, the new infrastructure levy will help to deliver more on-site affordable housing than at present. I hope that, with those reassurances, the hon. Member will withdraw the amendment.
Rachael Maskell
I listened intently to what the Minister said. It does not fully satisfy me or answer the inquiry that I am making in the amendment, because he simplifies the ability to achieve the objective, which we know is not happening at the moment with the provisions that are in place.
I will withdraw my amendment today. However, I trust that we can perhaps look at this matter at a later stage of the Bill, in order to achieve the objective I am seeking. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Rachael Maskell
I beg to move amendment 132, in clause 88, page 95, line 4, at end insert—
“(e) in areas of historical, cultural or environmental sensitivity, requirements intended to ensure that development is in keeping with the proximal environment.”
This amendment would enable neighbourhood plans to require that development in areas of historical, cultural or environmental sensitivity is in keeping with the surrounding environment.
I will again be brief, because my amendment is self-explanatory. In an area such as York, the development of part of the city can impact on the whole city. As I have previously mentioned, we are in an application at the moment for the tentative list of world heritage sites. Therefore, we want to ensure that the space in our city is built sensitively to best reflect our environment. That does not mean that it has to be identikit, just that we need to look at how we can build something that respects the historical, cultural and environmental sensitivities of an area such as York. We have a lot of development happening in York and many plans coming forward simply do not fulfil those criteria. I have spoken to Historic England and to archaeologists in the city, and they have deep concerns about the effect that new build could have, including detracting from our city’s incredible assets.
The amendment would also apply to the natural environment, ensuring that blend is built in with that. It does not mean that something new and vibrant cannot be developed, but it means that the sensitivities are considered. As a city, we are certainly interested, as I am sure many other places are, in how we can ensure that developers build according not just to their own desire, but to address the local sensitivities of an area.
Mr Jones
I thank the hon. Member for York Central for tabling the amendment. I understand that she wants to ensure that communities can protect their cherished local environments from harmful development. However, I do not agree that the amendment is necessary.
Under clause 88, communities will already be able to include policies that place requirements on new development to prevent it from harming sensitive areas. Furthermore, throughout the Bill we are already introducing measures to strengthen protections for our historic and natural environments, such as extending the protections for certain designated heritage sites, including a power to issue temporary stop notices, and moving to an outcomes-based approach in environmental assessment. On that basis, I hope that the hon. Member will withdraw her amendment.
Rachael Maskell
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
I fully understand why flooding is a matter of particular importance to the hon. Members for Kingston upon Hull West and Hessle and for York Central, as well as other hon. Members, given the flood risk in many constituencies and the devastation caused by flooding. It should concern us all across the House. Although they are linked by that concern, it makes sense to deal with each of the amendments in turn rather than all together.
I take amendments 2 and 133 first: since 2009, climate change adaptation and mitigation has been a key part of the planning system. The management and mitigation of flood and drought risks is a central component of that. We are already strengthening that through the Bill. Clause 88 amends existing legislation to put beyond doubt that neighbourhood planning groups should consider climate change adaptation and mitigation.
Furthermore, to support communities, in 2020 the Centre for Sustainable Energy published a guide to policy writing and community engagement for low-carbon neighbourhood plans, which covers flood and drought risk policy as well as mitigation techniques and infra-structure that they might wish to consider in their plans. Specific reference to flooding and drought in that provision would not strengthen the commitment but might unintentionally undermine focus on other aspects of climate change adaptation and mitigation. Our view, therefore, remains that the duty is most effective when it takes all the causes and effects of climate change together.
On new clause 2, managing flood risk is a Government priority. We are investing £5.2 billion to better protect 336,000 properties, alongside a range of actions to increase resilience to flood risk. Statutory guidance on the building regulations already promotes the use of flood resilient and resistant construction in flood prone areas. However, the building regulations system does not deal with the whole interconnected system of responsibility for managing flood risk. Drainage systems for new developments are already required to be built to a standard that minimises flooding. Those duties sit outside the building regulations system.
Furthermore, the national planning policy framework already makes it clear that inappropriate development in areas at risk of flooding should be avoided. Where necessary, there is an expectation that a development should be made safe for its lifetime without increasing flood risk elsewhere. In combination, I hope hon. Members will agree that the effect of the new clause is already provided for in wider systems in place for flood mitigation and protection.
Similarly, on new clause 3, we agree that communities should have access to the information they need to manage and prepare for their level of flood risk. That is why the Environment Agency publishes flood risk data and maps for England. Lead local flood authorities are also already required to have a strategy for managing flood risks in their area, which must include an assessment of local flood risk. All that information is already openly available to both insurers and householders. As such, I hope that hon. Members will agree that new clause 3 would not add to the existing provision of data.
Again, I hope the Committee will not be surprised that we agree with the intention behind new clauses 4 and 5. That is why, in July 2021, we committed to publishing a property flood resilience road map by the end of 2022 to ensure that all relevant bodies are playing their part, and that consumers have assurance about the quality of products and their installation.
The road map will set a national, strategic policy framework for property flood resilience and set out our—and the industry’s—approach to addressing the barriers to property flood resilience uptake. That includes exploring the best approach to ensure that property flood resilience professionals undertake work that meets industry standards, and establishing mechanisms to collect the evidence insurers need to recognise property flood resilience and factor it into their premiums.
As I have already said, we are clear that inappropriate new development in floodplains should be avoided, and must be made safe and resilient where they have to occur, without increasing flooding risks elsewhere. That is why Flood Re does not extend to homes built after 2009. Similarly, Flood Re was designed to provide available and affordable insurance for households. It does not cover businesses.
Business insurance operates differently to household insurance; it is often more bespoke, based on the individual nature of the business. In addition, Flood Re is funded via a levy on household insurers. Expanding its scope to cover businesses would require a new levy on businesses, which could result in businesses and therefore customers across the country subsidising profit-making organisations located near rivers or the coast, often to their advantage. That is one of the delicate issues that must be considered. Although it is undoubtedly an issue for some, there is no evidence of a systematic problem in accessing insurance for businesses with high flood risks. For businesses that experience problems, a number of innovative products are being offered to businesses by insurers.
Finally, on new clause 7, we have made important changes to the Flood Re scheme, helping to drive the uptake of property flood resilience. Regulations came into force in April that allow Flood Re to pay claims from insurers who pass flood risk on to the scheme. That includes an amount of “resilient repair”, up to a value of £10,000 over and above the cost of like-for-like repairs, to enable homeowners to return to their homes more quickly following a flood and to reduce the cost of future claims.
Build back better has deliberately been introduced on a voluntary basis. We aim to drive a cultural shift across the insurance market, raising awareness and demand for property flood resilience and helping to capture evidence on the benefits of property flood resilience to support future changes. Hon. Members may also be aware that customers of insurers covering more than 50% of the market are already able to benefit from Build Back Better. We continue to encourage more household insurers to participate in the scheme. In light of those assurances and explanations, I hope that hon. Members will be willing to withdraw the amendments.
Rachael Maskell
I am grateful for the debate. I thank the hon. Member for Westmorland and Lonsdale for highlighting the importance of the upper catchment management work, which is so necessary for mapping what will happen across other communities, and the Environment Agency’s commitment and the work it is doing in that arena.
My hon. Friend the Member for Greenwich and Woolwich hit the nail on the head when he talked about the importance of cross-governmental working, which is clearly not at an optimum at the moment when addressing issues around flooding. While the Minister has talked through a number of steps the Government are taking, I refer him back to the 2016 national flood resilience strategy, which highlighted the importance of co-ordination across Government and of ensuring that resilience was built into the system. That is not happening at the moment. As much as policy may aspire to that, it has further to go. The amendments are therefore still relevant as the Bill does not meet the requirements of the communities that currently flood, and those that will flood in the future as we see weather patterns change and risk increase.
I am not planning to press the amendment to a vote, but I hope the Government will reflect on it, and on my amendment about drought, because this is a significant and serious issue. Right now we recognise that as we move forward we need to build in how we have sufficient water supply. That will be increasingly important. I reserve the right to bring the issue back up on Report, and to give the opportunity to my hon. Friend the Member for Kingston upon Hull West and Hessle to table her amendments too. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
I understand that the hon. Member for Greenwich and Woolwich is keen to ensure that existing neighbourhood plans continue to be recognised in the reformed system, but I have to disappoint him by saying that I do not consider the amendments to be necessary. Clause 195 gives the Secretary of State the power to set out transitional and saving provision in regulations. The Government’s intention is to use those powers to limit disruption for communities preparing a neighbourhood plan under the current rules, and to ensure that they continue to have a role in decision making in the new system. We have listened to what Members have said about potential transitional arrangements, and we will in due course set out details of how we intend to transition to the new system of neighbourhood plans.
I fully agree with the hon. Member that more can be done to increase the uptake of neighbourhood planning in urban and deprived areas, but I do not agree that the amendment is necessary to achieve that goal. The Government are already taking action to increase uptake in such areas. New section 15K of the Planning and Compulsory Purchase Act 2004, inserted by schedule 7, introduces neighbourhood priority statements, which will provide communities with a simpler and more accessible way to participate in neighbourhood planning. The new neighbourhood planning tool will be particularly beneficial for communities in urban and more deprived areas that often do not have the capacity to prepare a full neighbourhood plan. In addition, we are running a pilot whereby we are able to provide additional funding to a select number of local authorities in under-represented areas to enable them to provide more help to neighbourhood planning groups in getting a neighbourhood plan in place.
I hope that with those reassurances, the hon. Member for Greenwich and Woolwich will feel comfortable withdrawing his amendments.
Mr Jones
As you have probably gathered during Committee sittings, Mr Paisley, I am not necessarily one for surprises, especially on such a hot and sunny day.
The Government support giving local authorities the full range of powers necessary to prepare robust plans. I can offer reassurance that that is our intention. The power as drafted will apply to those private sector bodies that authorities are likely to need to involve in plan making. Clause 90(6) sets parameters for which bodies can be prescribed. It requires them to have functions “of a public nature.” That might, for example, include utilities companies, which are privately owned but serve an important public function and should be proactively involved in the plan-making process. The clause does not exclude relevant private bodies where they are involved in public provision, but the amendments potentially extend the requirement to private landlords, voluntary groups and unrelated businesses, which would be disproportionate where those bodies do not have public functions that are likely to be relevant to plan making.
On alignment policy, the policy will require local planning authorities to engage with neighbouring authorities and bodies involved in their area. That will be covered in the future national planning policy framework. The power places the obligation on the bodies involved. I hope that with those reassurances the hon. Member for Greenwich and Woolwich will feel able to withdraw the amendment.
Matthew Pennycook
To surprise the Minister—it is the other way round—I am entirely reassured by his response. The language in the clause is about allowing for private infrastructure companies to be involved in the plan-making process in terms of the provision of information. That is what I took from what he said. I appreciate what the Minister said about the potential disproportionate impact from drawing in other types of bodies; that was not the intention. On that basis, I am content and beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Rachael Maskell
I beg to move amendment 135, in clause 90, page 96, line 30, at end insert—
“(3A) Where regulations under this section make requirements of a local authority that is failing to deliver a local plan in a timely way, the plan-making authority must consult the local community on the contents of the relevant plan.”.
This amendment would require, in the event of a local authority failing to deliver a local plan in a timely way, those taking over the process to consult with the community.
I will not labour the point because we have already had extensive discussions about the need to break the deadlock in the planning system. York is a very live example of that need: the local plan is going through a very painful process and we are absolutely determined to see the plan amended rather than being imposed. To break the deadlock and to be able to move forward, it is right that communities get a greater say. I do not plan to push the amendment to a vote today, but I trust that the Minister is hearing the importance of being able to engage with communities in order to get the right outcomes in the planning system, particularly where there is deadlock and we are on the naughty step, or at the special measures stage of the process.
Mr Jones
The amendment would modify clause 90 to support the more effective gathering of information required for authorities producing plans. However, its substance relates more to the plan intervention powers in proposed new section 15HA of the PCPA 2004, as inserted by schedule 7, and the importance of community engagement in plan making.
It is vital that communities are given every opportunity to have their say on draft local plans and supplementary plans. The English planning system already gives communities a key role so that they can take an active part in shaping their areas, and in doing so build local pride and belonging. We do not seek to challenge that; in fact, we are strengthening it through the Bill, and I have set out elsewhere how this will be achieved. Intervention powers have been used only sparingly in the past, and that is expected to remain the case under the plan-making system. However, they act as an important safety net and ensure that all areas can benefit from having an up-to-date local plan in place.
Rachael Maskell
I beg to move amendment 134, in clause 90, page 97, line 8, after “activities” insert—
“undertaken not more than 5 years from completion of the plan”.
This amendment seeks to ensure that material used in plans would not be older than 5 years old to still have relevance to the planning process.
In previous discussions, I have stressed the importance of ensuring that we have relevant and up-to-date information, made available in a timely way, to display the realities of situations as they stand, and we have suggested a timeframe for work around that. Circumstances change in the planning system, and I can think of a number of things that have changed in my own community—whether it is around transport planning in the area, population demographic changes or, indeed, situations like the one we are dealing with at the moment, where we are seeing a real change in the number of displaced people.
We think about the Afghans we cannot house: 12,000 of them have been in hotels for a year now. We were discussing the climate crisis earlier, and we know that 100 million people are displaced across our planet. Some of them will come to the UK and need housing. Things such as the Afghanistan crisis suddenly shift the dial, yet we do not have housing for these people. That is why it is so important to ensure that we are not relying on old information but have relevant and up-to-date information in our planning system, so we can break the deadlocks that can occur by being dependent on old data. The purpose of the amendment is to ensure that the planning system is more reflective of the now, as opposed to the past—a point that I have made a number of times. Unfortunately, that impacts on the outcome of the planning process.
Mr Jones
Clause 90 is about helping planning authorities to gather the information they need to plan effectively. It does that by requiring those organisations responsible for vital local services to assist in creating plans. We want to ensure that planning authorities can receive that assistance across a range of scenarios and issues.
I understand that the amendment is motivated by a desire to ensure that local plan evidence is up to date. Unfortunately, its effect would be to limit planning authorities use of this power to create effective plans. The amendment applies a blanket five-year time limit on the use of the power in clause 90 in advance of plan adoption, which makes it insensitive to the circumstances or type of information involved. There are many cases where it would be vital to include information gathered more than five years before a plan was adopted. For example, the character study of a conservation area might well be relevant for more than five years, as we have discussed in relation to the hon. Member’s constituency. The same goes for a utilities assessment based on information from energy networks, which work on different, longer term business planning cycles. If, for instance, the preparation of a local plan was delayed for any reason, the arbitrary time limit would prevent more information being taken into account, as the power needed to gather it could not be used.
The Government agree, however, that local plans should be backed by relevant and up-to-date evidence, which is why the evidence supporting plans will continue to be tested at the public examination. That is the place where any issues with the relevance of evidence can be addressed. I hope that with these reassurances, the hon. Member will seek to withdraw the amendment.
Rachael Maskell
I hear what the Minister is saying, but he raises an important point about the different business planning cycles that involve different factors. There is certainly a need for greater co-ordination to ensure that the relevant data is available in a timely way so that it is more synced with the planning process. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 90 ordered to stand part of the Bill.
Clause 91 ordered to stand part of the Bill.
Schedule 8 agreed to.
Ordered, That further consideration be now adjourned. —(Gareth Johnson.)
Levelling-up and Regeneration Bill (Seventeenth sitting)
Marcus Jones ExcerptsTuesday 19th July 2022
(2 years, 5 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 19 July 2022 - (19 Jul 2022)
Alex Norris (Nottingham North) (Lab/Co-op)
I beg to move amendment 64, in clause 92, page 97, line 31, leave out “desirability” and insert “duty”.
This amendment would clarify that the planning authority has a duty to have special regard in planning permission decisions for preserving or enhancing heritage assets or their settings.
It is a pleasure to serve with you in the Chair, Sir Mark. We have now reached chapter 3 of part 3 of the Bill, which relates to heritage. Britain’s incredible heritage is one of our best assets, and is loved universally by our constituents. The debate is well-timed, as this year the world celebrates the 50th anniversary of the UNESCO world heritage convention, the most significant feature of which is the linking together in one place of the concepts of nature, conservation and the preservation of cultural properties. This is the international convention under which sites of outstanding universal value to all people are inscribed as world heritage sites. Parliament ratified the convention in 1984, so I think it is widely believed by the public that our 30 sites in Britain that are inscribed on the world heritage list have strong statutory protection, meaning they cannot be harmed and that there must be engagement to actively conserve them so that they can be better enjoyed and understood. However, this is not quite so.
It is a shame that the draft Heritage Protection Bill in 2010 never got further than it did; its progress was impeded and it was never replaced, leaving gaps and weaknesses in the preservation of world heritage sites. As a result, the historic environment has remained a subsidiary consideration in the planning rules and regulations that govern development work, which can so often impinge on our irreplaceable cultural heritage sites. The protection of archaeological sites with no current designation continues to hang in the balance, not to mention the buried historic environment, which has no designation and includes the vast majority of prehistoric to early medieval archaeology in this country.
While it is mainly professional archaeologists who are aware of and interested in the irretrievable loss of such buried heritage, the consequences of the lack of specific heritage protection for standing buildings and monuments is immediately visible to all. We have some relatable and understandable examples in this country: UNESCO has made clear that the Stonehenge, Avebury and associated sites, which were originally inscribed in 1986, could face delisting in the face of the plans for development around that site; and we have seen in Liverpool that when development is not sympathetic to a heritage site it can lead to delisting. Local authorities need the tools to make sure they develop their areas sympathetically.
Having engaged with the heritage profession, I know it welcomes the enhanced protection that clause 92 will introduce, although thinks that the categories could be wider, as we will discuss in subsequent amendments. However, there is concern among heritage professionals, such as those on the RESCUE Council at the British Archaeological Trust, that the use of the word “desirability” in clause 92 does not sufficiently reflect a duty on planning decision makers to have special regard to preserving or enhancing heritage sites and monuments, or their settings. The word “desirability” suggests that that duty would be a conditional or subjective judgment based on balances of other features of development. This could lead to a situation where developers argue that conservation is inconvenient or too challenging, and that their own interests ought to take precedence, as they do under current legal arrangements. That is what has happened in the case of the Liverpool site.
I am keen to test this with the Minister. I am largely aiming to probe with this amendment, but it is arguable that the current wording would not give protection to, for example, Stonehenge, whose delisting would be a real problem for all of us. I hope to hear from the Minister that the fear is misplaced and that the Government’s understanding is that the language in the Bill will have the same effect as I am seeking. Amendment 64 is simple: it swaps the word “desirability” to “duty” to strengthen the wording in the Bill and to take away some ambiguity. I hope that the Minister can establish that and is minded to agree on at least the substance, if not on the granular point.
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
It is a pleasure to serve under your chairmanship once again, Sir Mark.
The purpose of clause 92 is to introduce a similar legislative duty for other types of heritage asset to the one that already exists for listed buildings and conservation areas. Amendment 64 would replace “desirability” with “duty”. The specific wording used in the clause is not new; it is taken directly from the existing duties for listed buildings and conservation areas in sections 66(1) and 72(1) of the Planning (Listed Buildings and Conservation Areas) Act 1990.
Those duties have been in place for many years, and are well established and well understood. The courts have confirmed that those duties to have special regard provide important protections. They require decision makers to give considerable importance and weight to the desirability of preserving or enhancing heritage assets. The intention behind clause 92 is to put other types of heritage asset in a similar position. I hope that the hon. Member takes that into account. In my considered view, the amendment is not required and we do not need to change the duty that has worked well to date. I hope I have provided sufficient reassurance for him to withdraw his amendment.
Alex Norris
I congratulate my hon. Friend the Member for York Central on amendment 128. It is very thoughtful, as was the case that she made for it. In the next group we are going to talk a bit more about the importance of social history, so I will save a few points for later, but I do want to reflect on the point about significance and developing significance.
We know, as I said on opening in the previous group, that our constituents and people in this country generally feel strongly about their culture and their heritage assets. They want our generation and all subsequent generations to be custodians of those assets. We have a duty to bring them to the fore, develop them and to have them in the way that they can be best enjoyed because they are a core part of our identity, our culture and our history—both the easy and the less easy bits to talk about. They are such an integral part of our story that people feel strongly about them. There is a duty to enhance the significance of a particular asset, so that those jewels—diamonds in the rough, perhaps—are not laid there and just ignored for generations and generations, getting harder to bring to the fore. It would only be a good thing to put that in the Bill.
Mr Jones
Clause 92 introduces a new statutory duty for
“the local planning authority or (as the case may be) the Secretary of State”
to
“have special regard to the desirability of preserving or enhancing”
scheduled monuments, protected wreck sites, registered parks and gardens, registered battlefields, world heritage sites, and their settings when considering whether to grant planning permission or permission in principle for the development of land in England which affects them. Clause 92 provides that
“preserving or enhancing a relevant asset or its setting includes preserving or enhancing any feature, quality or characteristic of the asset or setting that contributes to the significance of the asset.”
The significance of each asset is set out in the Bill, so the hon. Member for York Central should be reassured that the consideration of the significance of our heritage assets forms part of this new duty.
While I appreciate that the concept of significance is crucial to the protection of designated heritage assets within the national planning policy framework, the amendment is not necessary, as the issue of significance is already addressed in the legislation. For those reasons, we cannot accept the amendment, and I hope that on the basis of my explanation the hon. Member will withdraw it.
Alex Norris
It is a pleasure to speak to these two thoughtful and very good amendments. I do not think anywhere has a richer social history than Nottingham, so amendment 136 feels very close to home.
In 1642, at the beginning of the civil war, Charles I raised his standard in Nottingham, at what is now called Standard hill. That was not met with an awful lot of enthusiasm from the people of Nottingham, so when the civil war had finished the castle that he had sought to make his base was torn down. It was rebuilt a little later, and was then burned down 200 years after that during the riots relating to the second Reform Bill and the failure of Parliament to pass legislation that extended the franchise. Now we are about 200 years later than that, so I hope we are not due for that castle to once again meet an untimely demise, because we have put an awful lot of money into it through a heritage lottery fund bid.
That tells a big story about our city, as do the cheese riots, which took place because people were upset about the price of cheese—the Lord Mayor was bowled over by a big rolling cheese, according to legend. The luddite movement has its roots in Nottingham, and the first Chartist MP came from our city. Those rich and rebellious streaks are characteristic of our city’s community and social history, and they are an important part of the fabric of our memories about ourselves and those who came before us.
The point is true across the country, particularly in relation to the industrial revolution, which birthed the trade union movement and women’s movements. Those collective acts of thousands and thousands of ordinary people may not have big buildings, palaces or castles as obvious monuments and heritage, but they had sites that are just as important: the meeting rooms above taverns, houses, public spaces and parks where those events took place.
It is important that we understand that those places are as much a part of Britain and Britishness as the really huge and obvious monuments. The Bill should prioritise such places because they are more easily lost—it is much easier to lose the meeting room above a pub as part of a development than it is to lose a palace. We would not wish to lose either one more than the other, so including a sort of equivalence in the Bill would be a good thing.
Amendment 138 is a good idea. The hon. Member for Westmorland and Lonsdale is in good company because, as he said, UNESCO has already designated the Lake district a world heritage site. Putting the Bill on the same footing would give it strength and send a clear signal to developers, planners and all those interested in heritage that we consider such places to be clear and obvious assets. They may not be as obvious as a single building in a single place, but they ought to be treated just as well. I commend the amendments and the Members who tabled them.
Mr Jones
Clause 92 provides additional legislative protection in the planning system to the list of designated heritage assets that have previously been afforded protection through the national planning policy framework.
Sites of significant social history are important to our nation’s history. Many of them are already afforded protections in the planning process, either as designated or non-designated heritage assets. Manchester’s Free Trade Hall, for example, is a site of significant social history due to its role in the repealing of the corn laws, and it is a listed building.
The heritage assets set out in the table in the clause are all recognised historic environment designations. Amendment 136 would add a new category that is not clearly recognised as a heritage designation. There is no national list of sites of significant social history, which would, in practice, lead to arguments and legal challenges if the status of a site—whether it falls within the definition and should benefit from protection—is disputed.
Amendment 138 would add national parks and areas of outstanding natural beauty to the clause. Although I agree that those are a vital part of our nation’s environment and landscapes, the amendment would result in environmental designations that are already protected elsewhere being added to the list of protected heritage assets. They are already well protected under the Countryside and Rights of Way Act 2000, and as environmental designations in the planning system. Different regimes with conflicting protections relating to the same assets would cause confusion.
We also already have a strong set of environmental protections in the national planning policy framework. It sets out that areas of outstanding national beauty, national parks and the broads have the highest status of protection. Under our broader reforms to the planning system, the conservation and enhancement of wildlife and cultural heritage should be given great weight in development plans and planning decisions. Major development should be refused other than in exceptional circumstances. Areas of outstanding national beauty are also exempt from the presumption in favour of sustainable development.
In response to the landscapes review, the Government set out their intention to strengthen the statutory purposes of national parks and areas of outstanding natural beauty to create a clear objective to ensure that those areas deliver more for nature and are accessible to everyone. We propose to create a single set of statutory purposes for areas of outstanding natural beauty teams and national park authorities, providing a more consistent and unified statutory framework for all protected landscapes.
Alex Norris
I beg to move amendment 69, in clause 92, page 99, line 29, at end insert—
“(5) The Secretary of State must, within one year of the day on which this section comes into force, publish a report of a review of the efficacy of Local Heritage Lists and the resources local authorities have to produce them.
(6) The Secretary of State must, on the day on which this section comes into force, publish the results of the 2018 review of the non-statutory guidance on Assets of Community Value.”
The amendment proposes two new subsections to the clause, which I will deal with in turn. First, proposed new subsection (5) concerns local heritage lists, which identify heritage assets that are not protected by statutory listing designation but are of local interest. They provide a consistent and accountable way of highlighting the existence of those important assets and affording them a layer of extra protection against unwanted development. Those sites may not be the sort that bring someone from one place to visit another, but for those who live in the community, they are an integral part of the fabric of their daily lives: community centres, libraries, old town halls or pubs.
At the moment, local planning authorities have discretion on whether to develop local heritage lists, although they have very much been encouraged to do so by the Government and by bodies such as Historic England and Civic Voice. More recently, the national planning policy framework stated that local listing should be taken into account in the consideration of relevant planning applications. Additionally, some planning authorities include in their local plans policies that recognise the importance of non-designated heritage assets, so that status will be a material consideration if and when planning applications are lodged. On the face of it, the lists are a really powerful and important way of balancing the planning system and protecting the assets that communities know and love.
We welcome the fact that, in February last year, the Government announced funding of £1.5 million to support local authorities in improving, extending or updating their local heritage lists or preparing their first lists. Twenty-two areas put in successful bids. We are pleased for those areas, but this comes back to what we discussed in relation to previous clauses: another beauty parade where some authorities succeed and others do not, and in the end all are worse off because of cuts to council budgets. Given the universal importance of the local heritage lists, we want them to be put on a properly funded basis.
There is a lot in that to be optimistic about. However—and herein lies the rub, and the purpose of this element of my amendment—it is believed that only around 50% of planning authorities have a local heritage list. That means that citizens in neighbouring boroughs and districts can experience very different standards of recognition and protection of their local heritage assets. Amendment 69 would require the Government to research the extent to which local heritage lists have been developed, the quality and effectiveness of the lists, the reasons for any disparities between local authorities and some of the resource issues that underlie heritage list production.
The provision is relatively basic. It requires the Government to understand what practical effect previous legislation has had, and what practical effect the funding that they put in place is having. It would ensure a proper evaluation of local heritage lists, so that—and this is my goal—they are promoted and properly used by local communities to protect important assets, and that all people have the protection of those heritage lists in law, as they ought to. It is a problem that we do not know how many local heritage lists there are, their quality or how well they are used. This is supposed to be an important provision—where used properly, it has been—but we do not have a good sense of it. The amendment would make that much better, so I hope that the Minister is minded to agree to it.
Proposed new subsection (6) relates to assets of community value. The Localism Act 2011 enables community groups to ask local authorities to register properties of local importance as assets of community value. Many valued premises—the subsection has pubs in mind—have been successfully nominated. That is in no small part thanks to the work and activism of members of the Campaign for Real Ale who, around the country, have made great efforts to ensure that important assets have been registered as assets of community value, because that gives a distinct importance and protection to local communities.
If the owner of an ACV listed property wishes to sell it, in normal circumstances the community group can lodge a bid, triggering a six-month moratorium during which no other sale can take place. That gives them a right to bid and has no doubt been a factor in the growth of community-owned pubs, up from 56 in 2017 to 179 today and rising. We can do much better than that. Colleagues may have seen announcements in recent days from the Opposition about how we will do that in future, although we are likely to need a general election rather than pass primary legislation to make that the case.
The 2011 Act was accompanied by non-statutory guidance from the then Department of Housing, Communities and Local Government to local authorities on the implementation of the ACV process, in particular how they should deal with nominations. It soon became apparent that parts of that guidance were unclear or ambiguous, which has led to significant disparities in the way in which authorities consider nominations. In many areas, local groups find it difficult to get their nominations accepted because of the restricted ways or lack of focus with which their local authority interprets the Act and the guidance.
The Government recognised that, because in 2018 they instituted a review of the guidance and invited interested parties to make suggestions for improving or clarifying the content. The Government have not said how many responses they received, but I know that the Campaign for Real Ale made a detailed submission highlighting some of the pitfalls. It has a good view because it works with local authorities all over the country, so were able to tell the Government the different ways in which the process operated with regards to definitions, the nomination process and the procedure for appeals.
All that is very good, but the problem is the resounding silence in the four years since. There is no indication if or when there will be action on improving the guidance and whether it will be made public. Subsection (6) is a relatively minimal ask. It just says that on the day that the measure comes into force, the Government ought to publish the results of the review. They have had them for four years. It is hard to believe that they are not ready to go. I am not sure whether the Minister was in the Department at that point, but he may recall that.
If the Minister is not minded to accept that provision in the Bill, would he give a commitment on whether the consultation is coming out or whether too much has elapsed over the last four years and it is no longer active? People put a lot of effort into the submissions to the consultation, and they deserve the finality of knowing one way or the other.
If the answer is no, the Government should want to find a way to establish assets of community value in a similar way to the local heritage list: why the system works in the way that it does, with a sober and honest assessment of whether it reflects what they were minded to do in the 2011 Act. I argue that it does not at the moment, and has created disparities, not in the form that is genuine localism, which we support, but in the form where some communities have the protection of local heritage lists and assets of community value registers and others do not. We should want to get to the bottom of that, if such provisions are to be effective.
Mr Jones
The Government recognise the need to protect historic buildings and other assets that are valued by local communities, but the national listed buildings regime protects our most special buildings. We recognise that there are many other buildings and assets which local people cherish. Planning practice guidance already encourages local planning authorities to prepare local lists of non-designated heritage assets. Those assets are protected through national planning policy, which states that the effect of an application on the significance of a non-designated heritage asset should be taken into account when determining the application.
Mr Jones
We are committed to protecting and enhancing our historic environment, which is an irreplaceable asset. Any planning decisions that impact on it should be given the utmost consideration. Generally, we consider the current planning framework for the historic environment to work well. However, through our work with stakeholders, we have identified areas in which it can be improved.
One such issue is the lack of statutory underpinning for key designated heritage assets within the planning system. The national planning policy framework defines designated heritage assets and sets policies related to their conservation and enhancement. However, planning legislation currently stipulates only that decision makers shall have special regard to the desirability of preserving listed buildings and preserving or enhancing conservation areas when exercising the planning functions specified. Clause 92 creates a similar legislative planning duty to have special regard to the preservation or enhancement of scheduled monuments, registered parks and gardens, protected wrecks, registered battlefields and world heritage sites when granting planning permissions or permission in principle.
Additionally, the existing legislation provides only for special regard to be given to the desirability of preserving listed buildings when granting planning permission or permission in principle. Clause 92 extends that to include the desirability of preserving or enhancing a listed building. Creating a statutory duty to have special regard to the desirability of preserving or enhancing these heritage assets aims to streamline the decision-making process and provide consistency between the legislative heritage planning framework and national planning policy framework.
On clause 93, under the Town and Country Planning Act 1990, local planning authorities have the power to issue temporary stop notices. The notices are a powerful tool that can be used by authorities to require that development or an activity is stopped if the planning authority thinks that there has been a breach of planning control and that it is expedient for that activity to be stopped immediately. They can use the time to investigate the suspected breach and decide what, if any, further enforcement action to take.
However, there is not an equivalent provision in the Planning (Listed Buildings and Conservation Areas) Act 1990 for unauthorised works to listed buildings in England. That means that where there are suspected unauthorised works to a listed building in England the local planning authority’s only options are to issue an enforcement notice—which will not immediately stop the works—or apply to the court for an injunction to stop the works, which is often costly. The clause creates a new power for local planning authorities to issue temporary stop notices in relation to unauthorised works to listed buildings in England if, having regard to the effect of the works on the character of the buildings as one of special architectural or historic interest, they consider it expedient that the works, or part of them, be stopped immediately. That power will allow works to be paused for up to 56 days while the facts of the case are established and the local authority decides what, if any, further action to take.
Failure to comply with a notice will be an offence with a maximum penalty of an unlimited fine. There are circumstances where compensation may be payable for any loss or damage directly attributable to the effect of the notice. Addressing the gap in local authorities’ enforcement powers in relation to listed buildings will help to protect irreplaceable assets for generations to come. I therefore commend the clause to the Committee.
Alex Norris
I am grateful to the Minister for his explanation of the clauses that complete the heritage part of the Bill. It is clear from the amendments and the debates that we have had about them that this is something that interests hon. Members and their constituents, and I believe there is broad support for this part of the Bill—the entirety of part 3 up to chapter 3. However, I want to ask the Minister a couple of questions. I will not make any further points about clause 92 because we have covered them in a previous debate.
On clause 93, we support the idea of stop notices, which would allow work to be paused for up to 56 days in order for an investigation to take place. I wonder why the Minister chose that duration. Why 56 days? What would be the effect of that? Has he or his officials spoken to the Local Government Association about whether it feels that that would be effective? The developer is entitled to compensation for delay, which will be interesting when we get to clause 95. Will the Minister tell us how that will work in practice and what local government colleagues have said about that?
On clause 94 and empty dwellings, we were not able to persuade the Minister to adopt the Welsh Government’s approach, but we are delighted to see in the clause that that is exactly what the Government have done. It will allow urgent works take place where a building is at risk from the weather, vandalism or any other neglect. That will be a good thing. It is welcome that that measure has been replicated here in England.
Finally, clause 95 governs building preservation notices. Currently, a council can add a BPN to an unlisted building that is at risk of demolition or alteration and which a council considers of special architectural or historic interest. The notices last for six months and must be accompanied by an application to Historic England for listing. The Secretary of State then has six months to decide whether to accept that, and the building is essentially listed during that period to protect it. It is a very good provision. Can the Minister say how frequently that has been used to give us a sense of the scale of the challenge ?
The clause removes compensation, but in clause 93 that is not the case. The conversation continues there. There has certainly been some interesting written evidence and direct contact with members of the Committee from different organisations from both sides, both the preservation side and the development side, saying that it is unfair that that is not the case. We can read that argument either way. I am comfortable either way, but I am interested that the Government have chosen different ways in different parts of the Bill. They are different things, so I can understand it to an extent, but they are not so different that that lack of consistency will not raise a few eyebrows. I am interested in why the Minister chose that approach.
Mr Jones
I thank the hon. Member for Nottingham North for his questions. I will first address his question on the serving of notices. As he knows, building preservation notices protect a building for up to six months while it is being considered for designation as a listed building. BPNs achieve targeted and time-limited intervention to protect buildings of such interest that are under threat, rather than the blanket protection placed on all buildings being considered for listing during that interim period, regardless of whether they are under threat. BPNs are considered an appropriate stopgap mechanism for the interim period before longer-term protections are applied, while balancing the rights of owners and property rights.
Alex Norris
The Minister has made a compelling case for clause 95—he has certainly persuaded me—but it also reads across to clause 93, so why would those measures not apply in this case?
Mr Jones
As I read it, clause 93 requires the works to stop for up to 56 days, which demonstrates consistency across both clauses. On that basis, I commend the clauses to the Committee.
Question put and agreed to.
Clause 92 accordingly ordered to stand part of the Bill.
Clauses 93 to 95 ordered to stand part of the Bill.
Clause 96
Street votes
Question proposed, That the clause stand part of the Bill.
Mr Jones
Clause 96 is a placeholder clause. The Government’s intention is to replace it with substantive provisions later in the Bill’s passage.
New development is commonly met with hesitance from local residents—it is often perceived as a threat to the beauty of the area or as an unwanted disruption—usually because residents see it as imposed upon them and bearing little relationship to the character of the area. Fundamentally, people are more likely to support development that they feel they can control.
Street votes will provide a new way of consenting to development that will enable residents to come together and bring forward the development they want to see on their streets. A group of residents will be able to develop proposals to extend or replace properties on their street. They will have the option either to provide a detailed development specification, or to prepare a design code that any development they permit must comply with. Development proposals put forward by residents will be independently examined against a set of development and design rules set out in legislation to ensure that they meet high design standards and do not lead to adverse impacts on the local environment and the wider community. Planning permission will be granted only when an examining body is satisfied that the proposal has met these and other statutory requirements, and when the proposal is endorsed by a large majority of residents at referendum.
The use of street votes will be restricted in sensitive locations, such as the green belt. Street votes will encourage residents to consider the potential for new development on their streets. Where residents choose to take up the opportunity, street votes will help to deliver new or more spacious homes in places where they are most needed and in a way that is supported by the people who are most affected by that development. I commend the clause to the Committee.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
As the Minister has made clear, clause 96 is a placeholder clause. All it specifies is that the Secretary of State may by regulations make provision for a system that permits residents of a street to propose development on it and to determine, by means of a vote, whether that form of development is given planning permission. At the outset, I have to put on the record that we are instinctively uncomfortable with placeholder clauses of this kind. They are an implicit admission that a piece of legislation is incomplete and that policy in a given area has not been finalised. The absence of any detail about what substantive provisions might replace such placeholder clauses in future is an impediment to effective legislative scrutiny.
Furthermore, the increased use of placeholder clauses in recent legislation, as well as the general upward trend in the number of amendments that add new policies to a Bill part way through its passage or following completion, should be a cause of concern to any hon. Member who values good lawmaking. Nor are we satisfied with the reassurances set out in the explanatory notes to the Bill that any new system introduced by means of the clause will receive appropriate scrutiny—we are all familiar with the limitations of an affirmative procedure in that respect. We therefore seek from the Minister some sense—further to what he has just said—of what the new system will look like, how it will operate in practice and what its wider implications might be.
The basic concept of street votes is easy to grasp. We certainly appreciate that, at least in theory, democratically approved codes that permit development, or the extension or redevelopment of all the properties on any given street, may be a way to facilitate the gentle densification of inner suburbs—an outcome that would undoubtedly have a range of benefits, not least boosting productivity. The issue is whether and how such a system would work in practice. My strong suspicion is that any new street votes system introduced will likely be something of a damp squib and, ultimately, we will not see any significant uptake, which is largely why I struggle to get too worked up about the prospect of its introduction.
However, given the powers that the Government are seeking for themselves by means of the clause, we do need some answers from the Minister, and I ask that he provides them on six distinct areas. First, we deserve to know why the Government believe that an entirely new system for the hyper-local devolution of planning powers is required or, to put it another way, what problem are the clause and the substantive provisions to follow attempting to address.
I ask because the Minister will know that the Localism Act 2011 gives neighbourhood forums the power to create and vote on neighbourhood development orders. Such orders grant planning permission for specific types of development in a particular area following a referendum, thus enabling greater control over development, densification and design. That is essentially the same principle that lies behind the street votes concept. As such, is it not simply the case that for all the hype around the clause, it does little more than adjust the electorate for neighbourhood development orders from the neighbourhood level to the street? If that is the case, should we view the intention to introduce a new street votes system as an admission that NDOs have failed to achieve the objectives that the Government set for them, and what makes the Government think that street votes will be any more successful as an initiative?
Secondly, we should be told why the Government believe that a street is the appropriate spatial area for the powers. The Minister mentioned that it might give residents a greater sense of control but, further to the question I just put to him on neighbourhood development orders, is the choice of a street as the appropriate spatial area related to evidence that the size of the electorate involved in approving NDOs is the reason that initiative has not been taken up more extensively? Do the Government have any reason to think that street-level democratically approved codes will be utilised more extensively than NDOs?
Thirdly, we need to know what the Government believe the impact of street votes will be on housing supply and affordability. It stands to reason that successful street votes are likely to lead to substantial value uplifts for those properties that use the planning permission secured as a result. If a street votes to permit mansard roof storeys to be added to existing terraces, the homeowners who take advantage of that will increase the space within, and value of, their properties. However, I struggle to see how the benefit that those homeowners will gain from the new system will be shared in any way by those who do not already own their own home.
Street votes are unlikely to contribute much, if anything, to new housing supply. In practice, how many residents are likely to organise themselves to secure new powers to provide for infill development on their street? I suggest not very much. If, as seems more likely, street votes are largely used to add space and value to existing properties, the system could end up making it harder for first-time buyers to get on the housing ladder. Can the Minister therefore tell us whether the Department has modelled the likely impact of a street votes system on housing supply and affordability, and whether it is likely to exacerbate existing housing inequality? If not, why not, and will they do so before we get to Report and Third Reading?
Fourthly, local planning authorities deserve an indication of how the Department will assist them financially to carry out the new demands that will be placed on them as a result of the introduction of a new street votes system. We have already debated in previous clauses the parlous state of local planning authorities when it comes to capacity and resources. We have considered the new burdens placed on them as a result of numerous measures included in the Bill. If a street votes system is introduced, the Government must ensure that councils are given sufficient resources to oversee it.
We cannot have a situation, as we do at present with neighbourhood plans, where the cost of sending a plan to referendum nearly always outstrips the amount that local authorities can claim from central Government to hold them. The Government must also ensure that we do not replicate the problems experienced in the uptake of neighbourhood plans, with only affluent communities able to take advantage of them. What resourcing can local authorities expect to run a new street votes system? What steps will the Government take to ensure that less affluent communities are able to take advantage of it?
Fifthly, given the concerns expressed that street votes could prove to be an extremely divisive measure to relations between neighbours on a street, we deserve some sense of how the process might work. Will there be a minimum number of residents in any given street required to bring forward proposals to extend or redevelop properties on it, or can a single resident do so? If it is the case that a single resident can submit a proposal, what safeguards are in place to ensure that local authorities do not constantly have to put different proposals to a referendum of residents on a street?
Surely a vote should not pass if a significant minority of residents on a street are opposed to it. I think the Minister mentioned a large majority, but what does that mean? What threshold will apply to a street referendum? Are the Government minded to adopt the recommendation, made by Create Streets, that it be at least two thirds of residents on the electoral register, or Policy Exchange’s suggestion of at least 60% of votes cast? We all know that nothing gets as bitter as a dispute between neighbours, so I would like the Minister to respond to my questions and tell the Committee that the Government’s thinking when it comes to the process by which planning permission via this new system will be secured.
Finally, we need to know how a new street votes system will interact with local development plans and the Government’s wider housing and planning policy objectives. It is an obvious question, but could the Minister confirm that any street votes proposal will have to be in conformity with a local development plan in order to proceed to a vote? I think he mentioned that the new proposals must be examined: does that mean they need to be compliant with a local development plan in order to move to a vote?
How will a street votes system work in an area with a neighbourhood development order already in place, or a design code adopted as part of it? Again, will any proposals need to be found to be in accordance with an existing NDO or design code before it can go forward? Will the new provisions that the Bill puts in place for neighbourhood plans to ensure that they consider climate change mitigation and adaptation apply to street vote proposals, and will similar safeguards be put in place as those that clause 89 provides for in relation to neighbourhood plans, ensuring that street votes cannot be used to block development from taking place?
Mr Jones
I am pleased that you know who Terry and June are, Sir Mark, because I fear that even some members of the Committee do not remember “Terry and June”. [Interruption.] The Government Whip is professing not to know who Terry and June are, although that might not absolutely be the case.
I thank hon. Members for their comments and views on street votes. As I said at the outset, this is a placeholder clause, and I have heard their views. The overriding idea is to provide further tools to local communities in the spirit of trying to help local people shape their communities and to have flexibility at a very local level.
On the particular questions asked in Committee, it would be right for me to write to hon. Members, because their questions were specific and detailed. Clearly, it is important to consider them more carefully to provide that level of detail, given the stage in the process we are at with the clause.
Question put and agreed to.
Clause 96 accordingly ordered to stand part of the Bill.
Clause 97
Crown development
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to consider that schedule 9 be the Ninth schedule to the Bill.
Mr Jones
For a long time, Crown development was not subject to planning permission. In 2006, that changed, and a new route to seek permission for nationally important and urgent Crown development was introduced under section 293A of the Town and Country Planning Act 1990. Crown development includes development on land owned by the Government and carried out by the Government, as well as land owned by Her Majesty and by the Duchies of Lancaster and Cornwall. It also includes works to prisons and the military estate.
However, since its introduction this route has never been used. It takes too long to deal with truly urgent Crown developments—it can take months—and when responding to crises Government Departments have used other measures in the planning process, such as permitted development rights and special development orders. Those may be appropriate in some instances, but they take time to get in place and may not be suitable, in particular for a one-off special development that is urgently needed within weeks.
Clause 97 seeks to update this urgent route using two new faster, more proportionate routes to obtain permission for Crown land development. The objective of these reforms is to ensure that planning permission can be granted in a timely and proportionate way for the delivery of nationally important Crown development. The Government believe that, given the national importance of these developments and the unique nature of Crown land, the Secretary of State, who is democratically accountable to Parliament, is best placed to grant planning permission for these developments, rather than individual local planning authorities.
The first route, set out in proposed new sections 293B and 293C, is tailored for exceptional development. It is a new streamlined process to secure planning permission for development that is of national importance and required urgently. For these cases, the application would be submitted to the Secretary of State, but there will be limited statutory procedural requirements, to allow decisions on truly urgent and nationally important development to be made in a matter of days, rather than months, as is the case now.
This route would be used only in the most exceptional circumstances, where development is needed urgently in response to, or in preparation for, a crisis. For example, it could be used for development needed on Crown land to accommodate an influx of refugees or to develop medical centres in the event of a pandemic, or for biosecurity measures such as processing or checking imports entering the country, in circumstances where food or other essential goods are in short supply.
We recognise that that might cut across greater community engagement and local decision taking, which is why this route will be used sparingly and only where it is clear that there is an urgent need for an accelerated decision in the wider public interest, and where development cannot be delivered through other planning routes.
Government Departments proposing such development will have to demonstrate that it is needed urgently and is of national importance, and we will set out guidance on these matters. We would also strongly encourage early and meaningful engagement between all parties before any applications are submitted. Only if the Secretary of State agrees that a proposal meets this high bar will it be able to be considered. Local authorities and other bodies, such as service providers and statutory bodies required to inform a quick decision, will be consulted, and local communities will be notified when applications are submitted.
The second route to permission, covered in proposed new sections 293D to 293J, is intended for development on Crown land where the development is considered to be of national importance but is not urgent. For example, this may include a new prison facility or substantive defence-related development. For these cases, the application would be directly submitted to the Secretary of State, and an independent planning inspector would first consider whether it was of national importance.
Where such a development is not considered of national importance, it can be rejected and directed to the relevant local planning authority to consider. Where it is considered of national importance, it can be considered by the independent inspector, who would consider it in the same way as a conventional planning application. The inspector would consider the application on its planning merits, and decisions would be made in line with the new plan-led approach set out elsewhere in the Bill. As with a conventional planning application, there will also be public consultation and engagement with local communities, and their views will be considered. This process should provide more certainty and should be quicker than if the application was subject to a local planning authority and then to appeal or was called in for determination by the Secretary of State.
Given the national importance of these developments and the unique nature of Crown land, the Government believe that the Secretary of State, who is democratically accountable to Parliament, is best placed to grant planning permission, rather than individual planning authorities. These routes to permission are crucial to enable nationally important development to be considered in a timely and proportionate manner and to enable quick decisions on exceptional developments that are needed to respond to moments of crisis. As I said, since its introduction, this route has never been used, as it takes too long to deal with truly urgent Crown developments. We could not use it during covid to secure one-off temporary permissions for vaccination centres, and nor can we use it to secure permission to respond to other crises that we may face in the future. I therefore commend the clause to the Committee.
Mr Jones
It is clear that the current route for urgent Crown development is not fit for purpose. Since its introduction in 2006, it has never been used, as it does not allow for quick decision making when a truly urgent decision is required.
When responding to crises, Government Departments have used other measures in the planning process, as we have discussed. Those include permitted development rights and special development orders, which may be appropriate in certain circumstances, but which take time to get in place and may not be suitable, particularly for a one-off special development that is urgently needed within weeks. We have discussed issues relating to the pandemic that may well have been better tackled had we had such provisions.
Clearly, the situation is different for non urgent development, which will go through a new procedure that will follow all the public consultation requirements. The Government have been clear that the new powers will be taken only in exceptional circumstances. On that basis, I commend the clause to the Committee.
Question put, That the clause stand part of the Bill.
Mr Jones
First, I want to thank the hon. Gentleman for his proposal in amendment 114, which seeks to remove subsection (7) of proposed new section 73B under clause 98. The effect of the amendment would be to broaden the scope of planning assessment and allow local planning authorities to reconsider the principle of development established under the existing permission to which the variation is sought under proposed new section 73B.
The purpose of the reform is to provide a clearer process for enabling sensible and practical changes to be made to planning permissions that are not possible under the existing framework without the submission of multiple applications under different routes. I am sure we can agree about the importance of ensuring that the planning system is flexible, responsive and proportionate to changes of circumstances to facilitate the delivery of appropriate development.
We are resisting the amendment because it goes against the overarching objective of allowing permitted schemes to evolve where changes are required without having to start the planning application process again. If we were to agree to the amendment, local planning authorities would be empowered to look again at the principle of development for the proposal and refuse it, even though the application may only be for a minor variation. That would undermine the new process and make it more difficult for developers to manage minor change through the planning system.
The ability to amend an existing grant of planning permission is an important flexibility afforded by the planning system. Clause 98 seeks to improve the current framework for varying a planning permission by providing a clearer, more certain and proportionate process for planning authorities, communities and applicants.
Post-permission changes to respond to, among other things, specific design matters and external factors is a common and critical part of the development process. Enabling flexibility for minor changes to development can support delivery in changing circumstances. In the majority of cases it is not proportionate or reasonable to require a new planning application or revisit the principle of development.
Under clause 98, the hon. Member for Greenwich and Woolwich can be assured that the new power has been drafted to ensure that planning permission under the new power will be permitted only where the local planning authority is satisfied that its effect will not be substantially different from that of the existing permission. Local planning authorities have the power to determine whether changes would constitute a substantial difference from the existing permission on a case-by-case basis. That allows for consideration of local and development-specific context.
The “substantially different” test would be assessed against the existing planning permission to ensure that the cumulative impacts of changes to a permission are acceptable in planning terms. In addition to consideration of the existing permission, the planning merits of the proposed change may include consideration of any previous changes made to the existing permission.
I can also assure the hon. Gentleman that the process for applications made under proposed new section 73B will be set out in secondary legislation. We will consult on the details of publicity and consultation for the applications following the passage of the Bill, but I want to emphasise that we will seek to engage widely with the sector to ensure that the new route works. I therefore hope that the hon. Member will withdraw amendment 114.
Amendment 115 would clarify that section 73B of the Town and Country Planning Act 1990 applies to the Mayor of London, in his capacity as local planning authority, when determining applications of potential strategic importance. It is similar to the provision under subsection (12) of that Act for the Secretary of State when he is determining applications under that section.
Although I agree with the principle behind the amendment, it is more appropriately addressed by a consequential amendment to section 2A of the Town and Country Planning Act 1990. That Act provides that if the Mayor is determining applications of potential strategic importance, he is the local planning authority, and the references to local planning authorities in new section 73B should apply to him.
It is likely that a number of consequential technical amendments will need to be made to provisions in the Town and Country Planning Act as a result of the introduction of section 73 provisions to vary permissions. We propose to use the powers set out in clause 191 to do that. This specific example is one such amendment that we could consider. In view of my explanation, I respectfully ask the hon. Member to withdraw his amendment.
Matthew Pennycook
Amendment 114 raises an extremely technical matter. I listened carefully to the Minister and I will revisit what he said. I hope he understood that I mean that planning applications must evolve when changes are required. The amendment does not seek to ensure that the principle of development is ever revisited, just that when minor variations are applied for, that updated planning policy and guidance are taken into account. We think that is important. I will go away and study carefully what he said.
On amendment 115, I am grateful for the clarification about where these matters might best be dealt with. I am grateful that the Minister will go away and give that further consideration. We think that the Mayor’s powers need to be formally taken into account when making the changes that the clause makes. On that basis, I am happy not to press either amendment, and I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Draft Building Safety (Leaseholder Protections) (Information etc.) (England) Regulations 2022
Marcus Jones Excerpts(2 years, 5 months ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Chair
Before we begin, I would like to say that, in view of the heat, hon. Members may wish to remove their jackets.
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
I beg to move,
That the Committee has considered the draft Building Safety (Leaseholder Protections) (Information etc.) (England) Regulations 2022.
It is, as ever, a pleasure to serve under your chairship, Mrs Murray. Laid before Parliament on 7 June, the regulations are part of the implementation of the leaseholder protection provisions in the Building Safety Act 2022, using powers in part 5 of and schedule 8 to the Act. I will start, if I may, by providing some context and background to these important regulations. As hon. Members will know, before the Government introduced the leaseholder protections via the Building Safety Act, many leaseholders found themselves liable for unlimited costs for remedying historical safety defects in their buildings—costs that they could not afford for problems that were not their fault. But since the provisions came into force at the end of last month, most leaseholders in England are no longer liable to meet those costs.
To be specific, leaseholders in buildings that are 11 metres or more than five storeys high, where the building owner or landlord is the developer or is connected to the developer, are now fully protected from paying for historical safety remediation. However, where that is not the case, qualifying leaseholders will still be protected from all cladding remediation costs and any costs for non-cladding remediation or interim measures, including waking watches; those costs will be firmly capped. In some cases, qualifying leaseholders will also be protected from all historical remediation costs and those protections will pass on to subsequent buyers.
Without the provision made by these regulations, leaseholders would not be able to demonstrate that their lease qualified for the protections; nor would building owners be able to apportion liability for remediation costs between themselves and other landlords. The regulations set out the essential detail needed to implement the Building Safety Act’s provisions and make sure that leaseholders are protected under law. They do not do anything to weaken the leaseholder protections that Parliament agreed in April.
These regulations can be considered in three parts. First, the regulations set out the information that leaseholders must provide to benefit from the protections: their qualifying lease status, their property’s last sale price and their shared ownership status. In line with schedule 8 to the 2022 Act, the regulations provide a form of certificate, which the leaseholder must complete—once per flat. The certificate and evidence requirements are intended to be as simple as possible for leaseholders, while also being robust enough to prevent fraud and assure landlords and lenders of the lease’s qualifying status.
There are two trigger points at which the landlord must notify the leaseholder of the need to complete the certificate: when a defect is found, or the leasehold property is being sold. But leaseholders can submit a completed certificate voluntarily as soon as they have collected the information required. These provisions enable leaseholders to demonstrate that they qualify for protections under the Act and therefore to understand what their maximum cap should be. We will be making available, on the gov.uk website, both guidance and an easy-to-use online tool to help leaseholders and landlords to understand how the system works.
Secondly, the regulations make provision to enable the landlord to identify who is liable to pay for remediation of historical safety defects and how much they will be liable for, and to recover those amounts. The regulations set out formulas that the landlord must use to apportion liability where more than one landlord is connected to the developer, or where full remediation costs are not recoverable from leaseholders. The effect is that in such cases the landlord may recover some costs from other landlords, enabling them to spread the cost of remediating historical safety defects fairly and equitably between those with an interest in the building.
Finally, the regulations set out further detail on the first tier tribunal process in respect of remediation orders. As the Committee will know, the tribunal settles leaseholder disputes in the private rented sector. A remediation order will be an order of the tribunal that requires a landlord to remedy particular defects in a building by a specified time. The regulations make clear the information that a person needs to provide as part of the application to the first tier tribunal for a remediation order. Applicants—who can be anyone connected with the building—along with enforcement bodies, such as the new Building Safety Regulator or a fire and rescue authority, will need to state under which provision the application is made, as well as the building, its landlord and the relevant defect. The first tier tribunal will then be able to determine whether to make an order to require the landlord to remediate the building.
The regulations are a key step towards delivering the leaseholder protections set out in the Building Safety Act. They serve a very specific purpose in providing the detail needed to give full effect to the leaseholder protection provisions in that Act. That in turn will enable buildings to be remediated without requiring leaseholders to pay large amounts of money, so that they benefit fully from the protections that Parliament agreed and that came into force at the end of last month. I hope that hon. Members will join me in supporting the draft regulations, which I commend to the Committee.
Mr Jones
I thank the hon. Member for Greenwich and Woolwich and other members of the Committee, who in many ways seem content to allow the regulations to pass. I will start by answering some of the questions raised by the hon. Member and the hon. Member for Stretford and Urmston. The hon. Lady mentioned landlords linked to the developer and the apportionment of costs. The regulations clearly set out a formula for how those costs will be apportioned. In cases where landlords or developers are no longer trading, as I am sure the hon. Member knows, there is a levy scheme where developers pay into that levy, so we can support those people who end up—through no fault of their own—in a situation where the people responsible are not likely to pay for the remediation.
The hon. Lady asked a question about enfranchised buildings and leaseholders, which I will come to when I respond to the hon. Member for Greenwich and Woolwich. The hon. Lady also mentioned management companies. The type of arrangements she was thinking about were those with non-resident owned management companies that are subject to tripartite leases and arrangements with the landlord and leaseholders. It is important and urgent to prepare these two sets of regulations in the way that we have, so that they enable the protections to take place. We are confident that the way the regulations have been drafted will be effective in ensuring that the qualifying leaseholders gets the right outcome for the type of arrangements the hon. Member has mentioned. We are absolutely clear that all types of management company should be covered by the regulations, and we will closely monitor the progress of cases. If it becomes apparent that changes are necessary, we will come back to Parliament with further proposals.
Kate Green
Perhaps I could write to the Minister to set out the specific circumstances that pertain to my constituency. The regulations were helpfully accompanied by some worked-through examples, so perhaps I could add another one that is being faced by my constituents at the moment and the Minister could respond in detail as to how they would be affected?
Mr Jones
I would very much welcome that correspondence. I would be more than happy to receive the example that the hon. Lady is talking about and to come back to her with a response.
The hon. Member for Greenwich and Woolwich mentioned that the protections came into force on 28 June, which was two months after the Act received Royal Assent. The regulations, along with the Building Safety (Leaseholder Protections) (England) Regulations 2022, which were laid on 28 June, will provide the detail to operationalise the new leaseholder protection regime. Landlords are now only able to pass on costs where the Building Safety Act permits them to do so, and that includes pursuing unpaid bills for historical safety remediation issued prior to commencement. As of 28 June, landlords must not pursue bills for historical safety remediation that are not in accordance with the Act. As the hon. Gentleman said, doing so would be illegal and I will come back to him on his point about the operation of that.
Leaseholders should seek to complete the leaseholder deed of certificate that is outlined in the regulations as soon as possible, so they can demonstrate to their landlord whether they qualify for the protections.
In an enfranchised building, the freehold is owned by some or all of the leaseholders. Capping leaseholder liability in a fully enfranchised or commonhold building would not have the effect of reducing or limiting leaseholders’ liability as leaseholders are the freeholder. The other complication is that often not all the leaseholders own part of the freehold, which is why my right hon. Friend the Member for Pudsey (Stuart Andrew) committed to bringing forward a consultation and a call for evidence on this important issue, which will be released shortly. It is important that we try to help clarify matters for people in that position.
On the report by the Joint Committee on Statutory Instruments, the Committee will know that the underlying statutory provisions for leaseholder protections were added to what is now the Building Safety Act 2022 about half way through its passage through Parliament, in recognition of the unfair and intolerable position that many leaseholders were in. They faced bills, as has been acknowledged across the House, running into thousands of pounds to fix problems that they had no part in creating. In many senses, as the hon. Member for Greenwich and Woolwich said, those people were put into significant financial distress as a result.
The leaseholder sections were devised and drafted at pace, drawing on expertise in a number of fields, including proposals put forward by Members of both Houses. I record my thanks for their time and engagement on that. The Act received Royal Assent at the end of April and the protections came into force two months later. It was therefore both important and urgent to prepare the two sets of regulations that will enable the protections to take practical effect. The urgency meant that we were not in a position to share the regulations in draft with the Committee, as is the usual practice. That meant, however, that the Committee and its staff had limited time to get to grips with both the regulations and the underlying primary legislation in what is in many ways a groundbreaking piece of law.
None the less, we engaged in two rounds of correspondence with the Joint Committee, culminating in the memorandum and response set out in Appendix 1 to the Committee’s report. Some Members will have read that report in full—I am sure the hon. Gentleman will have—and we have seen the detail of the Committee’s concern and the Government’s response.
To summarise, the Joint Committee raised a number of technical and legal issues with the draft instrument in respect of its drafting and of its vires. The Government have considered those issues carefully, including by working closely with the first tier tribunal about the way in which it will deal with appeals. The Government are satisfied that, notwithstanding the Committee’s concerns, there are no issues with the regulations that will prevent the process from operating successfully.
As I have described, the Government consider it imperative that the regulations come into force before the summer recess to alleviate the issues facing leaseholders in defective blocks. We will of course monitor closely the progress of cases. If it becomes apparent that changes are necessary, we will come back to Parliament with proposals. Therefore, as I said before, I ask colleagues to show some forbearance. I am glad that that seems to be the case, but that hon. Members will still feed in their particular cases.
On the final point made by the hon. Member for Greenwich and Woolwich on the memorandum from the Law Officers about confirmation of the retrospection on the 28th due date, if he will forgive me, I will take that away and come back to him with a fuller response. On that basis, and given that we have considered the draft regulations, I hope that the Committee will approve them.
Question put and agreed to.
Levelling-up and Regeneration Bill (Fourteenth sitting)
Marcus Jones ExcerptsThursday 14th July 2022
(2 years, 5 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 14 July 2022 - (14 Jul 2022)
Tim Farron (Westmorland and Lonsdale) (LD)
It is a pleasure to serve under your guidance today, Mr Hollobone. This proposal from the Government feels rather tin-eared, and the amendment—or something like it, at the very least—seems appropriate. It is good that the official Opposition have put forward a route that the Government could choose to go down.
It seems odd that there is not a worked-out process for properly scrutinising and consulting on national policy statements that could have huge ramifications for every part of this country. This is a very diverse country: we have four nations, and communities that are rural, urban and suburban. National planning policy could have many different ramifications on different communities.
I think of my own community, with 67 parish councils and the need for them to be involved and to understand the issues. Further north in Cumbria, we have the very live issue of Britain’s first new coalmine in 30 years potentially being given permission later this summer—we will wait and see about that. It will be hugely significant for the community it could impact directly, but it will also have a national impact. For us not to have a level of scrutiny and consultation for national plans—something that a local authority would be slaughtered for not doing with its own local plans—seems to be very wrong and, as I say, somewhat tin-eared.
It goes back to a theme that I have tried to develop throughout debates on this Bill, which is about trying to understand the motivation. It could be that the Government are just being tin-eared and have not thought this through properly. That is entirely possible—Governments do that. The question is, who is this for? Is this devolution? Is this empowering local communities? That is what the Government claim it is. Or is it just for the convenience of central Government? If there are national plans and a national planning framework allowing Government to take forward their central agenda without proper consultation of local communities—be they rural or urban or in any part of this country—that will meet with huge opposition, including in the constituencies of Opposition Members.
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
It is a pleasure and an honour, as ever, to serve under your chairmanship, Mr Hollobone. I thank the hon. Member for Greenwich and Woolwich for tabling this amendment. The national development management policies are an important change to the system, and I understand the desire to ensure that they are properly considered.
The amendment has three elements: consultation, parliamentary scrutiny and policy review. I will deal with each in turn. On consultation, the existing clause already imposes an obligation on the Secretary of State to ensure that such consultation and participation as are considered appropriate take place. The previous Secretary of State was clear in his comments to the Levelling Up, Housing and Communities Committee that consultation on the national development management policies will indeed be carried out. The consultation specified by the amendment is therefore unnecessary.
Moreover, we need to bear in mind the possibility that circumstances may occasionally arise in which the Government need to make urgent change. I heard what the hon. Member for York Central said earlier, and I would like to give her an example that became apparent during the pandemic of when we had to act quickly. Hon. Members will recall, during the first part of the pandemic, the significant issue with food supply. One of the decisions that was therefore made at a national level was to disapply planning conditions relating to the hours during which supermarkets could be served by delivery vehicles. Because of the way supply chains were at that point, it was extremely important to get food through to the stores. In those circumstances, it may not be feasible to do everything that the amendment seeks to do, for reasons that I hope she understands.
Mrs Emma Lewell-Buck (South Shields) (Lab)
In relation to consultation, the Minister just said that it depends on what the Secretary of State thinks is appropriate. Is there anywhere else in our legislation where things are left to the whim of a particular Secretary of State in that way? I cannot believe that the Minister thinks that is an acceptable way to conduct planning.
Mr Jones
I thank the hon. Member for her question. We need to look at what is being put forward today. Clearly, the passage of the Bill has some time to run, and we have to look at this issue in the context of the national planning policy prospectus that is being put out later this year so that hon. Members get a wider understanding, and I hope they will be able to respond to that.
Mrs Lewell-Buck
I thank the Minister for giving way again. Surely the prospectus should come first, before we consider implementing this legislation. It seems like things are being done in a completely back-to-front way, and I do not understand why. This is not a good way to make legislation.
Mr Jones
I understand what the hon. Member says, but clearly this process will take some time. There are other parts of the process that follow today’s proceedings and Committee stage. By the time we get to that point, I am sure hon. Members will have been able to see the national planning policy prospectus and understand it more fully.
Rachael Maskell
I am grateful that the Minister was able to produce an example of where a national planning decision would override a local plan, but he talked about logistics, which does not come into the local planning process. That example was operational—it was not actually to do with planning. Can he drill down to say when a national development management policy would override a local plan?
Matthew Pennycook
Further to that point, is the Minister seriously saying that a logistical issue about the opening times of supermarkets is the type of policy that will be covered by an NDMP?
Mr Jones
What I am explaining is an example of where powers need to be taken, sometimes at short notice, in the national interest.
To move on, let me turn to parliamentary scrutiny. I have listened to the debate with interest, and I appreciate the points that have been made. The existing provisions for scrutiny of national policy statements, on which I believe the amendment has been modelled, play a particular role, given the way that those statements provide a framework for decisions on nationally significant infrastructure projects, which are decided by Ministers.
National development management policies will serve a broader purpose and will sit alongside policies in locally produced plans as the starting points for considering the suitability of development proposals. They will carry forward the role that successive Governments have played since the 1940s in setting high-level national policy that influences plans and decisions. The sort of things that we envisage them covering are standard policies—for example, avoiding inappropriate development in a green belt and areas at significant risk of flooding or coastal erosion; protecting nationally important habitats and heritage, and assets such as listed buildings; and ensuring that access for pedestrians, cyclists and people with disabilities or reduced mobility is taken into account when assessing development proposals.
As I have said, we have committed to consulting on national development management policies, and this is the first step in the process. The prospectus, which we will publish shortly, will set out more of our initial thinking on the scope of the policies, and the principles for their production. I am sure that the hon. Member for Greenwich and Woolwich will read that document with interest when it comes out, and I hope that it will provide further reassurance on our commitment to transparency and full engagement as we develop the policies.
As the national development management policies will be public, parliamentarians and the public may still hold the Government to account, in the usual way, for the content of those policies. The nature of national development management policies differs from national policy statements, so we believe that the clause strikes the right balance.
We will continue to keep national policies under review by listening closely to colleagues, to the public and to the evidence presented to us, as Governments of all complexions do as a matter of course. It is not clear to me that the amendment would necessarily fit into that context. I have listened to the strength of feeling during the debate, and I hope that the national planning policy framework prospectus, when published, and my response to the three major issues that have been raised in discussing the amendment, will reassure Members. I will continue to reflect on the issues that have been raised, particularly in relation to responses to the prospectus. I hope that the hon. Gentleman will feel able to withdraw his amendment.
Matthew Pennycook
I am extremely disappointed by the Minister’s response. The hon. Member for Westmorland and Lonsdale was right to use the phrase “tin-eared”. That is what the Minister’s response was, and I hope he will reconsider.
The amendment and the clause go to the heart of the problem with the Bill. Is it a vehicle to empower communities and their representatives, or to override them when the Government of the day think that is the appropriate thing to do? Where the Government fall on that question is clear from the Minister’s answer. Let me reiterate that the level of scrutiny that we are asking for is not excessive or inappropriate; it is a minimum public consultation requirement in the way that currently applies to local planning policies, and the same level of parliamentary scrutiny as for designated national policy statements.
The Minister’s response was very telling. He said: “Well, the Secretary of State”—the previous Secretary of State now—“has committed to consultation.” That is all well and good, and I hope the prospectus will come in the summer, but it is not about that or about what the previous Secretary of State said; it is about what the Bill says. The Bill says that a Secretary of State needs to consult on an NDMPs if he or she considers it “appropriate”. If a Secretary of State in a future Labour Government brings forward an NDMP, does not consult on it, and uses it to override a local development plan in a constituency of one of the Members now on the Government side of this Committee, those Members would be the first to cry foul the use of such powers. The clause guarantees only that a Secretary of State needs to consult if he considers it appropriate.
On parliamentary scrutiny, the Minister said that NDMPs are different from national policy statements because they have a broader purpose. If they have a broader purpose, surely there is all the more need for basic parliamentary accountability and scrutiny, in the way that currently applies to such statements under the Planning Act 2008.
I am extremely disappointed by the Minister’s response, as he can tell. I hope that he will go back and reconsider this issue and those that we raised in the debate on clause 83, because we will certainly discuss these matters again, if not on Report in this place, then in the other place. I will not press the amendment to a vote, but I urge him to reconsider. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
Clause 84 provides the statutory basis for national development management policies in England. As they will play an important part in the planning process, the clause puts a necessary safeguard in place: they must be designated by the Secretary of State so that their status is clear, they must relate to the development or use of land and, most importantly, they must be subject to appropriate consultation before they can have effect.
The clause is necessarily broad in scope so that national policies can address the various planning considerations that apply across the country, from basic policies for protecting the green belt to those for avoiding areas of high flood risk. That will free up local plans to focus on matters of local importance.
We intend to consult fully on the scope and content of these policies before they are first introduced to ensure we have heard a wide range of views before deciding what is best set out at a national level, and before deciding what the policies themselves will say. Alongside clauses 83 and 84, they will be instrumental in making it easier to prepare local plans that reflect communities’ priorities for their areas while providing a sound basis to address the general planning considerations that apply across the country. I therefore commend the clause to the Committee.
Question put and agreed to.
Clause 84 accordingly ordered to stand part of the Bill.
Clause 85
Contents of the spatial development strategy
Matthew Pennycook
I beg to move amendment 93, in clause 85, page 92, leave out lines 26 and 27.
This amendment would remove an additional legal test within London’s Spatial Development Strategy that could preclude the insertion of policies which contribute to the effective strategic planning of Greater London but would also apply to other urban areas or are not specific to Greater London.
Tim Farron
I am very concerned about this part of the Bill. If we ask people in England which part of our country has the most autonomy and sovereignty and is listened to the most, most of them will say London—and they would be broadly right. It is really concerning to any person in this country who cares about genuine devolution and the empowerment of local communities that the part of England with the most powers devolved to it is having many of those powers curtailed, qualified and restricted by the clause, and the amendments are important because they put a spotlight on that issue.
Some of the language around levelling up may in fact be divisive, because it is about setting ourselves against one another. Rural communities are the poorest and most needy in England, but there is much that binds us all together. We need to consider ourselves as a United Kingdom and to make common endeavour, but we can do that only if we trust one another, give communities genuine sovereignty and power, and trust them.
Again, there is a theme with the Bill: it is about levelling up and devolution in name, but in reality it is about a lack of trust in the local electorate, local communities and local leaders—in this case, the Mayor of London. Anybody in this country—in England at least—who is concerned about their autonomy, their sovereignty and the devolution they want for their community should be deeply concerned about this proposal and should stand in solidarity with communities in London, who seem to be having theirs curtailed in the Bill. That is the opposite of levelling up and the opposite of devolution, and it increasingly sounds not like devolution but like delegation.
Mr Jones
Clause 85 reaffirms the vital role of the London plan in setting strategic policy for the capital. However, the London plan is intended, and was originally designed, to deal only with matters of strategic importance in London. Those are limits to which the London plan has not always strictly adhered, and it now often touches on matters that no one would consider as strategic in nature, but rather as instances of applying the strategy.
Let me give an example of where the Mayor of London has overstepped that strategic objective. Policy H16 in the London plan refers to laundry, bedding and linen services, which do not seem overly strategic. The inclusion of non-strategic matters means that the London plan is far lengthier and more detailed than it needs to be—the current London plan is over 500 pages long. Not only does that increase the time taken to produce it, but it makes it more complicated for the people of London to work out what policies apply in their area and how those interact.
One of our most important objectives in reforming the planning system is to give a distinct and clearly defined role to each part of the development plan. By clearly specifying that the London plan must cover matters of strategic importance to London, we are making the plan’s role and its relationship to individual local plans easier to understand.
The text that amendment 93 proposes to remove also underlines that policies should relate to the particular characteristics or circumstances of London. During the preparation of the London plan, there is nothing in the Bill that would prevent the Mayor of London from considering matters that affect London but relate to areas outside Greater London. However, I hope we can agree that the policies themselves should relate to the area for which the Mayor has jurisdiction. Likewise, on amendment 94, it seems entirely reasonable that any policy included at the level of the London plan should have more than a local impact. Otherwise, it would be properly a matter for the appropriate local planning authority’s local or supplementary plans.
On that subject, under the provisions in the Bill, the Mayor of London may prepare a supplementary plan relating to design matters for the whole of Greater London, and amendments 91 and 92 concern that new power. I agree entirely with the intention behind amendment 92, but the amendment is needed to achieve that aim, because the Mayor’s supplementary plans will be part of the development plan, and schedule 7 inserts proposed new sections 15CA(5)(g) and 15CC(8), which provide that, in preparing local and supplementary plans, London boroughs—as local planning authorities—must have regard to the development plan.
Turning to amendment 91, supplementary plans provide local planning authorities with the flexibility to bring forward policies for specific sites, or groups of sites, quickly—for example, in response to a new opportunity that had not been identified in the local plan, or to set design standards too detailed for the local plan itself. They are not intended to supplant the primacy of the local plan or to circumvent the fuller process to which local plans will be subject. Supplementary plans are therefore primarily intended as a tool for local planning authorities to set more granular policies. Allowing the Mayor to set such policies would be contrary to the strategic—rather than locally specific—role of the Mayor. The Mayor’s role should be in setting design standards on a London-wide basis.
That is what the Mayor’s supplementary plan power provides for, while not precluding the Mayor from producing guidance on particular planning matters—a tool that I understand he has made good use of. However, the Mayor of London does not allocate sites in the London plan. Therefore, the ability to produce site-specific supplementary plans is not necessary. In the same way, in the current system, the Mayor does not produce supplementary planning documents.
That leads on to the effect of amendment 97. The London plan has never been able to allocate specific sites. It will retain its ability to identify broad locations for development, which will inform site allocations in individual local plans produced by London boroughs. Local plan making is the correct level at which to allocate individual sites for development, as boroughs work closely with their communities to identify the most suitable sites.
The Mayor should therefore not be able to allocate sites for development through either a supplementary plan or the London plan itself. That preserves the defined roles for strategic planning relative to the local plan. For that reason, it would be inappropriate for the Mayor alone, as suggested by amendment 95, to determine what should constitute “strategic” across more than one borough. That is not to say that the Mayor’s opinion on what constitutes a strategic matter is not essential. However, it is legitimate for other organisations and people, including the boroughs and those examining the London plan, to take a view on the issue.
In addition—although I do not think we need to repeat our earlier debate on this point—we have included the requirement not to be inconsistent with, or to repeat, any national development management policy, to ensure that the whole planning system, from national to local level, is consistent. That allows those matters that are best dealt with at the national level to have status, without requiring repetition in the development plan, potentially at both the strategic and local plan level.
Finally, on amendment 96, we want to remove unnecessary obligations from plan makers. Removing the requirement for the Mayor to include statements on general spatial development aspects of their other strategies and policies does not bar the Mayor from so doing. It merely allows the Mayor to judge how far it would be helpful to do so. I hope we can agree that that is a more sensible position.
I am aware that I have spoken at some length on these points, but I hope that has been helpful for the Committee. In the light of what I have said, I hope that the hon. Member for Greenwich and Woolwich will feel able to withdraw the amendment.
Mr Jones
The Localism Act 2011 abolished regional spatial strategies, which acted as strategic plans for the regions of England. The exception was London, where the Mayor has retained the power to produce a spatial development strategy, better known as the London plan.
The London plan acts as the strategic plan for the capital, and local plans produced by London boroughs must be in general conformity with it. It sets out the planning framework for the capital, which includes the setting of a London-wide housing target broken down into individual housing targets for boroughs. It cannot allocate sites, but it can identify broad locations for development, the details of which are established in subsequent local plans. Local plans require closer consultation between plan makers and the people they represent, making them better placed to identify specific sites for development.
Since 2011, the power to produce an SDS has been extended through devolution deals to three mayoral combined authorities—Greater Manchester, the Liverpool city region and West of England—with the intention to give the equivalent power to West Yorkshire in the future. The Bill will expand the power to produce an SDS to all local planning authorities in England outside of Greater London and the mayoral combined authorities I have mentioned. Groups of authorities will be able to use the powers on a voluntary basis when they feel that they would benefit from such a plan.
Spatial development strategies are prepared by an elected Mayor or a combined authority to provide the strategic policies for the development and use of land in the area they cover. The Government wants the development plan system to be clear and efficient. By setting out clearly what a spatial development strategy can and cannot do, clause 85 will be instrumental in achieving a system that is easier to engage with.
Spatial development strategies enable a co-ordinated approach to planning across multiple local authorities and are an effective mechanism for resolving cross-boundary issues. The London plan has broadly been seen as a useful plan at that spatial scale, with each newly elected Mayor choosing to commence work on a new London plan shortly after entering office. It provides a clear and accountable mechanism for setting planning policy across London boroughs and for redistributing housing need across the city.
The London plan is intended to deal only with matters of strategic importance to London. However, that intention has not been strictly adhered to, as I mentioned earlier, and increasingly the London plan has included detailed development management policies on a range of issues that are not usually considered to be of a strategic nature. That increases the length and detail of the plan and the amount of time taken to produce it. It also means that the London plan encroaches on aspects of policy that should be dealt with at either local plan level or national level, which creates overlap between several types of plans and makes plans longer than they need to be.
The amendments made by clause 85 will ensure that the distinction between spatial development strategies and local plans remains clear. The clause will amend the provisions of section 334 of the Greater London Authority Act 1999 to update the permissible content of a spatial development strategy and will ensure that the purpose and scope of this type of development plan is clear.
In particular, at proposed new subsection (9), it is clear that a spatial development strategy must not be site specific, and nor can it be inconsistent with or repeat national policy. Proposed new subsection (9) also prohibits spatial development strategies from identifying particular sites, preserving that level of detail for the local plan, where such specificity is more appropriate. Unfortunately, only one member of this Committee is from London, but I am sure that the hon. Member for Greenwich and Woolwich would accept that his particular local authority knows local people on a more granular level than the Mayor does, because the Mayor works at a strategic level. Therefore it is a far better principle for the local authority to identify sites and make decisions on them.
The amendments made by the clause will mark a change to the current scope of the London plan and mean that it needs to be consistent with national development management policies. Proposed new subsection (2D)(b) introduces a new and additional requirement for strategic matters to be of strategic importance to more than one London borough. The clause deliberately uses the same wording as proposed new section 15AA of the Planning and Compulsory Purchase Act 2004, as inserted by schedule 7 to the Bill, which applies to the content of a joint spatial development strategy. The strategy can be prepared by partnerships of other local planning authorities around the country outside of combined authority areas, meaning that a spatial development strategy will have the same effect whichever system it is produced under. Again, that will help to clarify and demystify the planning system.
London plan policies would, in future, need to avoid conflict with national development management policies, which the Bill empowers the Secretary of State to prepare, and to be of strategic importance to more than one borough. The Levelling-up and Regeneration Bill will not affect how the Mayor consults on or gains approval for the London plan or the role of either the Mayor or the Secretary of State in relation to it.
Question put and agreed to.
Clause 85 accordingly ordered to stand part of the Bill.
Clause 86 ordered to stand part of the Bill.
Clause 87
Plan making
Question proposed, That the clause stand part of the Bill.
Mr Jones
The clause introduces schedule 7, which will replace the majority of part 2 of the Planning and Compulsory Purchase Act 2004, namely sections 15 to 37. Schedule 7 contains new provisions relating to different elements of the development plan—specifically joint spatial development strategies, local plans, minerals and waste plans, and supplementary plans. The details of those provisions will be debated throughout these sessions.
In summary, the proposed changes will ensure that plans are faster for local authorities to produce, easier for communities to navigate, engage with and understand, and more focused on things that matter locally. The reforms will support local planning authorities to produce local plans and keep them up to date—something that has proven challenging for many under the existing system. Local planning authorities and communities invest considerable time and effort in preparing local plans, but many plans take too long to produce. The average plan takes seven years, and plans are frequently out of date and can be difficult to understand.
Decisions on planning applications are meant to be plan-led, but in practice local plans cannot always be relied on for guiding decisions, especially when they are not up to date or do not set clear standards for development to follow. To make the system more responsive and flexible, local authorities will be given new powers to collaborate voluntarily with each other on joint spatial development strategies. They will also be able to introduce new policy at pace through supplementary plans.
There are two specific elements of the current plan-making system that the Government are not looking to retain. The first is the requirement for local planning authorities to produce a statement of community involvement. Such statements do little to drive meaningful dialogue with communities during plan production. Instead, the Secretary of State will produce guidance setting out much clearer expectations around how local planning authorities should engage people in the planning process.
Secondly, we do not propose to retain the duty to co-operate. The duty has been widely criticised as inflexible and burdensome, causing significant delays to the production of local plans. It will be replaced with a more flexible policy-based approach to addressing strategic issues that cut across authorities. That will be set out in a revised national planning policy framework in due course.
Matthew Pennycook
Just to check that I understood the Minister correctly, is he saying that the new flexible alignment test, which is to follow in the Bill, will come in only at the point that the NPPF is finalised in 2025? Is he saying that that is when we should expect this new test to appear?
Mr Jones
Clearly we will need to ensure that the new test is workable. We will have to consider that very carefully, and we will no doubt consult on it. I will need to come back to the hon. Gentleman about the timeframe in order to provide him with that information. However, given the important changes that this clause enables us to introduce, I commend it to the Committee.
Question put and agreed to.
Clause 87 accordingly ordered to stand part of the Bill.
Schedule 7
Plan making
Matthew Pennycook
I beg to move amendment 112, in schedule 7, page 224, line 14, after “authorities” insert “or county councils”.
This amendment and amendment 113 would enable county councils to prepare joint spatial development plans.
Tim Farron
This is an important part of the Bill. I am comfortable with much of the direction that the Government seek to go in, but if we are to offer the power to develop joint spatial development strategies, it should be to everybody. I will make particular reference to national parks in England and the duty to consult with them.
It is worth bearing in mind that national parks are quasi-local authorities. In many ways, they have the functions of a local authority, particularly when it comes to planning and some other associated issues. They do not have council tax-raising powers and they are not directly elected in any shape or form in England or Wales. In Scotland, there is an element of direct election to the national parks.
I will make two suggestions. First, the needs of national parks and areas of outstanding natural beauty are significant. They are parts of the country that we have collectively decided are so important that they need to be protected for environmental reasons, to provide education and enlightenment about our heritage and our culture, and to protect the communities within them. I am especially concerned about that latter point.
In national parks, decisions are made about housing, planning and development that have a huge impact on the lives of the people who live within them. The Lake District national park has between 40,000 and 50,000 full-time residents, a not inconsiderable number of people whose lives are affected by an unelected authority. By the way, the national parks do a great job—I have a lot of time and praise for what the Lake District national park and the Yorkshire Dales national park in my constituency do—but it is not true to say that they make their decisions entirely democratically.
When we are consulting and imposing a duty to consult, we must have a duty to consult the national parks. They must not be considered things to be overlooked, and communities must not be overlooked. We need to remember that decisions made about affordable housing and allowing farmers to do something on their farms that might enable them to diversify and to provide a home for agricultural workers, or a home for a farmer to retire into so that a young farmer can come and take their place, are often decided by people who do not live in the national park and who are not elected by the local community.
It would be interesting if the Minister could reflect on the extent to which the Government might consider learning from the Scottish example, whereby a number of members of national park authorities are directly elected. When we place a duty to consult, which means that we bring in the national parks, we should consult people who are there representatively, who are democratically elected and who are there to speak on behalf of the community. If we do not do that, the national parks will continue to be considered simply places for people to visit, not places for people to live. It is essential that we consider the living, vibrant communities of our national parks, as well as the fact that they are huge assets for the nation as a whole.
Mr Jones
Although I understand the reasons for the amendments, our intention is for the reformed planning system to be district-led. As we have discussed previously, we do not want to see planning or any other powers being drawn upwards as a result of our reforms. As such, joint spatial development strategies need to be driven by the authorities closest to their communities.
We agree that county councils should play an important role in the plan-making process. They will have significant influence over the development of a joint spatial development strategy, and we envisage that they will be closely involved with its day-to-day production. To make sure that happens, we are giving them the formal status of statutory consultee so that they can bring their experience and expertise in a range of issues, particularly highways, transport, flood mitigation, education and the rules on waste, to the creation of a joint spatial development strategy. Planning inspectors examining the joint spatial development strategy will want to see evidence of work on those key issues and to make sure that any views expressed by the county council have been properly taken into consideration.
The approach that we are proposing strikes a balance between ensuring that joint spatial development strategies are developed at the right level and ensuring that the views and expertise of county councils are part of the process. Likewise, in areas with an elected Mayor, we believe it is vital that the Mayor is formally involved in the production of a spatial development strategy, in order to provide clear and accountable leadership for it. That is why combined authorities should not be eligible to produce a joint spatial development strategy. In such cases, the Mayor, with the support of all the member authorities, can approach the Government to ask for spatial development strategy powers to be conferred on them as part of their devolution deal.
I hope that was the response that the hon. Member for Greenwich and Woolwich was looking for. His amendments seem to view spatial development strategies as a co-ordinating layer in the planning system. Amendment 102 seeks to resuscitate the duty to co-operate, which is widely agreed—most Conservative Members would agree, at least—to have been an ineffective mechanism, criticised as inflexible, bureaucratic and slow. That is why the Bill abolishes it. We can all agree that it is vital for local planning authorities to work together to make sure that cross-boundary issues are properly addressed. We expect them to plan for, and deliver, the housing and infrastructure our communities need. The planning system provides a number of mechanisms to assist them in doing so to which we are adding.
We intend to replace the duty with more flexible policy within the revised national planning policy framework, upon which we will consult. This will enable local planning authorities to address any issues of alignment during the preparation of a plan. At present, if an authority fails the duty its local plan must be withdrawn. The Bill also introduces a new requirement to assist with plan making, which we will consider more fully in due course. That will ensure the involvement of those who are vital to production of plans, including the delivery and planning of infrastructure. As such, joint spatial development strategies should not be seen as a co-ordinating function, replacing the duty to co-operate. I hope that the hon. Member for Greenwich and Woolwich will agree to not to press the amendments to a vote.
Matthew Pennycook
I am grateful to the Minister for that response. On the issue of mayoral combined authorities and combined authorities, I cannot say that I am entirely convinced. However, I note the detailed response he gave me to the amendment, and I will give it further consideration. On the issue of county councils, the Minister says that they will be closely involved. I remain concerned that not giving them equality of status will be harmful. I am aware that the Department is concerned that if we do not get county councils to bring resources to the table for the new joint spatial development strategies, it may have effects that the Government do not want.
On the issue of the duty to co-operate and the voluntary nature of those new powers, I remain concerned about what happens and how that impacts on the Government’s wider policy objectives in areas where authorities do not make use of the power when we have removed the only statutory arrangement to enable them to co-operate. I urge the Minister to go away and give that some thought. If the Minister is not comfortable reintroducing the duty for those who have not taken up those powers, will he at least think again about whether the incentive structure might be tweaked to ensure that the majority of areas make use of the powers? I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Ordered, That further consideration be now adjourned. —(Gareth Johnson.)
Levelling-up and Regeneration Bill (Thirteenth sitting)
Marcus Jones ExcerptsTuesday 12th July 2022
(2 years, 5 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 12 July 2022 - (12 Jul 2022)
Rachael Maskell (York Central) (Lab/Co-op)
I, too, support the amendment. Data is key to everything: we cannot make good, informed, evidence-based decisions unless we have data before us. In my community, I have seen my boundaries change because of the number of empty properties and people not registering. I have seen a real change street by street as well as community by community. Second homes, commuter homes and holiday homes are taking over residential properties, which my local residents cannot afford to live in any more due to the lack of supply. As a result, they are having to move out of my city. We have to look at this extraction economy through the eyes of the people it impacts the most, and collecting data is absolutely key to that.
There is another reason I think data is really important. The Government are driving their whole housing policy through numbers. They are saying, “We are going to build x units in each of these locations across the country.” We have heard hon. Members in various debates discuss whether those levels are right, but if those housing units simply become empty units, second homes or holiday lets, that will not resolve the housing crisis we are dealing with. It will not add to our communities or make a difference to them. It will not have an impact on Government targets for addressing the housing crisis. It is essential that we can identify the issue in the detail it deserves, not just in whole areas but drilling down to understand what is happening in different parts of the community.
In York, we have around 2,000 Airbnbs—last time I checked, the number was 1,999. The vast majority are concentrated in my constituency of York Central. I can name the streets where those properties are. The number of homes is increasing in those areas. We will go on to talk about measures that the Government can introduce—measures that I very much hope they will introduce—to address this serious problem, which is sucking the life out of our community. If we have up to 350,000 Airbnbs nationally, what does that mean for Government targets for house building? How are they going to say they are building additional homes when we are seeing that sharp increase in Airbnbs, second homes and so on?
The Government need the data to drive their own housing policy and to ensure that they are delivering on their targets for improving the housing situation, rather than just watching it get worse while they busily tick boxes and say, “We are delivering, delivering, delivering,” when it is not making a scrap of difference on the ground. That is the feeling in my community. I welcome the amendment. It is a helpful start and a helpful guide to the Government about some of the considerations they should be taking into account in the planning system.
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
I thank the hon. Member for Greenwich and Woolwich for his kind welcome and good wishes. I look forward to working with him across the Dispatch Box, in a reasonable and constructive way.
We spoke at length earlier about second homes, which I suspect will be a running theme for the Committee. We talked about the importance of addressing the issues that can be caused by second homes and holiday lets in an area. I want to focus on why the amendment is not needed.
We acknowledge the importance of data on holiday lets for supporting tourism and manging the impacts on local communities. However, I believe that there may have been some misrepresentation of the intent of clause 75. The clause aims to require planning authorities to process their planning data in accordance with approved data standards, whereas the amendment seeks to regulate for the collection of data by planning authorities. Nothing in the clause can require the collection of data by planning authorities.
Having said that, let me add a point of reassurance: where planning authorities have holiday let data, subsection (2)(b) provides the ability for data standards to be set for it. The amendment tabled by the hon. Member for Westmorland and Lonsdale is not necessary to achieve his intention. Regulations will specify which planning data can be made subject to data standards and require planning authorities to comply with those standards once created.
We will turn to the substance of second homes and short-term let policy in due course. We take the concerns raised by the hon. Member for Westmorland and Lonsdale seriously. I hope that I have provided sufficient reassurance at this point to allow him to withdraw his amendment.
Tim Farron
I will not press the amendment to a vote at this point, but I may bring the measure back later in another guise. I am very grateful that the Minister has accepted the need for this data, so that decisions can be made and otherwise.
As I and other hon. Members said earlier, the existence of second homes and holiday lets is not, by any means, an unalloyed bad. The holiday let market, in particular, is crucial to the economy and the hospitality and tourism industry in Cumbria, which is worth £3.5 billion a year and employs 60,000 people, but we have to get the balance right. There is not a lot of point in having holiday cottages where people go on holiday but find they cannot get a bite to eat, because it turns out that their holiday cottage was the chef’s house last year, and they have been evicted and the balance is all wrong.
One assumes that, if the Government were to accept further amendments that might be proposed later, there would be powers available to local authorities to restrict the number of second homes or holiday lets in a community. We would not want to do that carte blanche; it would have to be done on the basis of information. We might decide that up to 20% of a community could be second homes. How would we know whether that was the case and be able to make a judgment, unless the data were available?
I will not press the amendment to a vote now, and I am grateful for the Minister’s remarks. It is important that we make decisions to save our communities based on the reality of the situation out there. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Matthew Pennycook
I beg to move amendment 65, in clause 75, page 85, line 14, leave out paragraph (b).
This amendment would prevent the Government from using the powers in this Chapter for information other than that provided or processed by a planning authority under a relevant planning enactment.
Having had just over four productive and, I am sure the Committee will agree, stimulating days of line-by-line consideration of parts 1 and 2 of the Bill relating to levelling up, local democracy and devolution, we now turn to the first of the Bill’s parts on planning. As my hon. Friend the Member for Nottingham North remarked during, I think, our second session, in practice this is not wholly, or even largely, a levelling-up Bill. Indeed, I would even go so far as to describe the legislation before us as essentially a planning Bill in all but name, albeit in a shiny but ultimately flimsy levelling-up wrapper.
To the extent that this is essentially a planning Bill, it is, as hon. Members are aware, a far different beast from the legislation the Government had in mind when they published the “Planning for the future” White Paper in August 2020. The remnants of that White Paper that have found their way into this Bill, augmented with several new initiatives of varying quality, amount collectively to a rather modest set of proposals that we fear fall far short of the kind of reform that is required to meet the multiple challenges we face as a country.
Some of the planning provisions in the Bill are extremely controversial, and we will consider several of those in the hours and days that remain before the summer recess. Others are less so, and chapter 1 of part 3, which we are now considering, falls squarely in the latter category.
The clauses in chapter 1 seek to digitise the planning system, with the objectives of raising standards across planning authorities, facilitating cross-boundary engagement—particularly around infrastructure by better enabling the comparison of planning information—and, perhaps most importantly, making it easier for members of the public to access and easily comprehend information about specific local planning matters. This represents a real step forward, and I want to make it clear at the outset of the Committee’s consideration of clauses 75 to 81 that we strongly support in principle the digitisation of the planning system.
As Dr Hugh Ellis rightly put it to the Committee in our final oral evidence session:
“There are some very archaic practices in the planning process”.––[Official Report, Levelling-up and Regeneration Public Bill Committee, 23 June 2022; c. 125, Q157.]
As things stand, the planning system is overwhelmingly reliant on outdated software that places a considerable burden on the sector. Often, progress on local planning matters is almost entirely reliant on individual council planning officers and their familiarity with a particular scheme, rather than transparent and accessible information that can be drawn upon by all. Given that the systems in planning authorities more often than not sit on separate platforms, they frequently prevent cross-referencing of data by other council staff and local councillors. More generally, the planning process is too heavily reliant on documents rather than data, and this has a direct impact on the speed and quality of decisions.
Provision for public interaction with the planning system can, in many cases, appear to have been designed to actively discourage engagement, as anyone who has tried to analyse a local plan map will know. Even in cases where online access to information is possible through local authority portals, the data available is often inconsistent, confusing, and a barrier to community participation.
If any hon. Member has had to trawl their local council’s website to find information on a given planning application—I have, many times—they will know that documents often come in the form of hundreds if not thousands of pages of material spread across multiple PDFs, putting off anyone other than committed souls determined for one reason or another to trawl through reams of uploaded documentation to try to understand precisely what changes are being proposed in their local area. In short, there is an unarguable case to upgrade the technology that underpins the planning system in England. Doing so would have myriad benefits.
Perhaps most importantly, digitisation could go a long way to boosting engagement in local planning matters, particularly at the local plan phase, incentivising residents who, as things stand, would not dream of involving themselves in a planning matter. As Tony Burton from Neighbourhood Planners London put it to the Committee in oral evidence relating to local and neighbourhood plans,
“we would point to the opportunities it presents around new, complementary forms of community engagement…and more effective ways of pooling and analysing the evidence that is required”.––[Official Report, Levelling-up and Regeneration Public Bill Committee, 23 June 2022; c. 80, Q107.]
A digitised and integrated system would make it easier to find and search through the detail of a given application, and to see associated data and drawings, and it could well facilitate opportunities to directly interact or submit feedback. New interactive digital services and tools could even allow members of the public to submit their own ideas or take part in discussions and design workshops at an early stage of a proposal, and to explore different site distributions, massing and densities themselves.
Digitisation could also deliver huge benefits for the development and distribution of local plans. If done well, the roll-out of, for example, 3D model platforms could support the creation of local plans by changing the way councils visualise and make assessments of their localities, as well as aiding the monitoring of their delivery. Similarly, making local plans digitally available and interactive across England could help standardise processes and offer greater accessibility, collaboration and community engagement.
I add a small caveat at this point, in that the clauses in chapter 1 really cover only how data will processed and standardised. The Bill contains no indication of how the Government see consultation and decision-making processes being opened up to a more diverse audience as a result of digital technologies. I hope the Minister will give us a sense of the Department’s thinking in that respect, on issues such as digital mapping, when he responds.
However, that the clauses in this chapter present such opportunities is undeniable. That said, we are firmly of the view that a series of safeguards are necessary to ensure that the digitisation of the planning system does not have adverse consequences, intended or otherwise, and amendment 65, along with amendments 66, 67 and 68, seeks to provide some of those safeguards.
The particular concern that amendment 65 is intended to address is the potential for the broad powers provided by clause 75—to regulate the processing of planning data—to be used as a surreptitious way of prescribing the length, layout and content of local and neighbourhood plans. That concern arises in part from the ways in which the Bill, in other places, centralises the planning system by effectively downgrading the status and the scope of local planning—a theme will we return to many times over the course of this Committee’s life.
Given our concern that the powers in clause 75 give scope for excessive central control of local development plan formulation, we believe it is essential that the Bill clarifies that the powers are to be utilised only for the purposes of technical data handling and processing—hence the suggested removal of the broad language in subsection (2)(b) specifying that planning data can mean any information provided to, or processed by, the authority
“for any other purpose relating to planning or development in England”.
The key point here is the need for the Bill to better define what functions can be regulated by the powers set out in this clause.
Binding “approved data standards” applied to a limited range of technical functions, such as standardising contributions to the preparation of a local plan or how local plans are made accessible, is all to the good and will aid access, engagement and cross-boundary comparison. However, if not more tightly circumscribed on the face of the Bill than at present, our concern is that the proposed regulation of the processing and provision of planning data may, inadvertently or otherwise, enable the central imposition of what can and cannot be in a local or neighbourhood plan.
I appreciate the distinction is a subtle one, but I hope the Minister understands the concern we are trying to highlight. I also hope he will accept the amendment or, if not, at least provide the Committee with robust assurances that the powers in this clause will only ever be used for the narrow purpose of regulating the handling of technical data, rather than in any way dictating the form of local plans.
Mr Jones
I understand and share the desire to ensure that the information in scope of these new powers is proportionate and focuses on digitising the planning system.
Amendment 65 gets to the heart of our digital reforms—how we define planning data—and would narrow that definition. I fear, however, that the amendment underestimates the breadth of information upon which planning authorities rely. It is important to remember that these powers are designed to underpin the entirety of the planning system. We need to encompass information that will support plan making with interactive map-based plans; the flow of information, such as from the heritage sector, to planning authorities; and accessible environmental outcomes monitoring and reports.
As such, information relevant to planning may not in fact arise from a planning enactment. For example, it may come from activities of local authorities under their general power of competence or from information provided or used by that authority for the purposes of other legislation, such as the Local Government Finance Act 1992. Equally it may come voluntarily from other public sector organisations or from private companies and individuals for purposes that are not clearly related to a statutory planning function. We want to ensure that we do not accidentally exclude any of that valuable information from being made even more valuable to planning authorities and others as a result of our reforms.
As we will cover in subsequent clauses, there are underlying safeguards to protect all the information from inappropriate use. That includes protecting against inconsistency with data protection legislation. Equally, as I am sure we will discuss, our continuing pilot work with planning authorities will ensure that data standardisation can be implemented by them.
We will consult to ensure that we hear a diverse range of voices on how this part of the Bill is put into guidance. We will produce new guidance on community engagement in planning, which will describe different ways in which communities can get involved and highlight best practice.
The hon. Gentleman had some concerns about what is covered in a local or neighbourhood plan. The intent of creating the data standards is to ensure that local and neighbourhood plans can contain more information in a standardised format for the benefit of their communities. Data standards will be introduced gradually, and local authorities will not be prevented from using planning data where standards are yet to be introduced.
I hope the hon. Gentleman is reassured that amendment 65 is not required, and I would be grateful if he withdrew it.
Matthew Pennycook
I am grateful to the Minister for that response. I think the best way to put it would be that I am slightly reassured, but not wholly reassured. I welcome what he said about the recognition that the powers need to be used proportionately. I welcome the clarity on the intent. What I did not hear was a cast-iron guarantee that the powers will not, inadvertently or advertently, in any way end up constraining the length, layout and content of local development plans. Therefore, we still think and are concerned that they could be used to do such. While I will not be pressing the amendment to a vote, this is an issue that relates to our wider concerns about the status and scope of local planning, which we will come back to. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
The planning system currently relies on information presented in various formats and contained in lengthy PDF documents from which it is hard to extract. Local plans alone can be hundreds of pages long. As the hon. Gentleman said, they can contain dozens and dozens of PDF files, which are difficult for experts to navigate, let alone members of the public.
This clause is the foundation for changing the way planning authorities hold and present their planning information, moving the planning system from being document based to being data driven. The clause does this in a manner that allows the planning system to keep pace with the innovation we hope to promote. The clause grants the Secretary of State the power to specify in regulations which planning information must meet set data standards.
I know that some are concerned that the data standards will outstrip the ability of planning authorities to meet them. I therefore want to reassure the Committee that the very reason for the approach I have just set out is to allow us to bring information into scope as it is ready. We will proceed incrementally and take into account planning authorities’ capabilities and innovation in property technology. I hope that reassures the Committee on that point.
In order to reduce the burden on planning authorities, clause 76 gives them the power to require those submitting planning data to do so in accordance with new planning data standards. In addition to enabling information in the planning system to flow freely, following that approach will help authorities perform their crucial role more effectively, with more ability to compare and co-ordinate with other authorities; will empower more local people to engage with planning, with better tools to support them in meaningfully shaping their areas; and will drive private sector innovation, improving the efficiency of the housing market as well as the planning system.
In summary, the clause begins the modernisation of the planning system, creating accessible, reusable data to the benefit of planning authorities, communities, central Government, developers and the wider private sector. I commend it to the Committee.
Matthew Pennycook
I will be brief, but I have some questions for the Minister. Clause 76(1) allows planning authorities, by published notice, to require a person to provide them with planning data that complies with an approved standard that is applicable to the data. Subsection (4) allows planning authorities to reject all or any parts of planning data from a person if they fail to comply with the requirements under subsection (1). Subsection (5) requires that planning authorities must serve the person with a notice by writing to inform them of any such decision, specifying which aspects of planning data have been rejected.
The two examples in the explanatory notes accompanying the Bill relate, respectively, to local plan creation and the identification of conservation areas nationally, rather than to individual planning applications. Given that the aim of this chapter is the creation of a data-led planning system, as the Minister said, and that the White Paper specifically referenced the intention to create a
“national data standard for smaller applications”,
it strikes me that there is a need for clarity over what “data not documents” means for individual households in the context of clause 76.
As such, I would simply like to get a sense from the Minister of what impact he believes these provisions will have on households seeking planning permission for projects such as extensions and conservatories, or garage and loft conversions. Specifically—this relates to a point that I will return to when speaking to amendment 66 to clause 77—what does the Department have planned, if anything, to ensure that residents making such applications who may lack the requisite digital skills or access to the internet are provided with appropriate support? Is any element of discretion provided, or other means of assisting such people?
Mr Jones
I thank the hon. Gentleman for his questions. With regard to that last one, we will probably discuss that as we go through the next few clauses. However, there is no intent to exclude those who do not have the ability to use digital equipment—those we consider to be digitally excluded. I hope that I can reassure the hon. Gentleman on that as we deal with further clauses.
Question put and agreed to.
Clause 75 accordingly ordered to stand part of the Bill.
Clause 76
Power in relation to the provision of planning data
Question proposed, That the clause stand part of the Bill.
Mr Jones
Too often planning information is hard to use for all the purposes it should serve. The clause helps to address that problem.
The large amount of information received by planning authorities often comes to them requiring manual intervention to make it usable. Re-entry is then required to use that information later in the system. That is bureaucracy at its worst, actively detracting from the ability of planning authorities to perform their core role, taking time and resources away from the decisions that matter to communities.
The clause works to achieve three effects. First, it works with clause 75 to ensure that complying with data standards does not create a new bureaucratic burden for planning authorities receiving information and then having to render it compliant. Secondly, it gives planning authorities the power to require information in a manner that best suits their systems and the data standards to which they are subject. Thirdly, it protects against the risk that some may attempt to use the requirements under clause 75 to inconvenience authorities’ decision making by deliberately submitting information in a problematic format that is difficult to extract.
The clause also sets out the process that planning authorities must follow to exercise their powers. Planning authorities will be required to publish a notice on their website or through specific communications to inform participants about what planning data will be subject to data standards when it is submitted to a planning authority. If the data fails to comply, a notice must be served specifying the reasons for rejection.
I will touch briefly on the power of planning authorities to refuse information as non-compliant. Planning authorities are not obliged to refuse non-compliant information, although for the reasons that I have outlined we expect them to accept such information only exceptionally. The Committee will see that information cannot be refused where the provider has a reasonable excuse. That is to protect those who, for whatever reason, cannot use the means of submission stipulated by a planning authority or cannot comply with the data standards in the submission. In that way, planning authorities will be under a duty to accept and fully consider such information. Those with a reasonable excuse will not therefore be disadvantaged.
Where authorities refuse information, the clause provides them with discretion to accept a complaint resubmission, although again there is no general expectation that they should do so. The result of the clause will therefore be that, by default, the information received will be usable for all purposes to which planning authorities need it to be put. That will make their work faster and easier and will allow them to focus on planning rather than data entry.
Question put and agreed to.
Clause 76 accordingly ordered to stand part of the Bill.
Clause 77
Power to require certain planning data to be made publicly available
Matthew Pennycook
I beg to move amendment 66, in clause 77, page 87, line 3, at end insert—
“(4) On the day any regulations under this section are laid before Parliament the Secretary of State must publish an accompanying statement explaining the steps that the Government has taken to ensure that the regulations do not exacerbate digital exclusion.”
This amendment would require the Secretary of State to publish a statement explaining how the provisions in this Chapter do not exacerbate digital exclusion.
As we discussed in relation to development plans, Labour believes that a series of safeguards are necessary to ensure that the digitisation of the planning system does not have adverse consequences. One of the most adverse consequences that could arise from digitising the present system—we have already touched on it—is of course the exacerbation of digital exclusion, which several of the witnesses who gave oral evidence to the Committee highlighted as a concern. Digital exclusion is already a serious problem and one that does not simply affect a minority of the population. The Office for National Statistics estimates that 7.8% of UK adults have either never used the internet or last used it more than three months ago—that is 4.2 million people. The amendment seeks to address the digital divide in the context of the planning system.
When we discuss digital exclusion in the context of the Bill, it warrants saying, as my hon. Friend the Member for York Central did, that a democratic planning system that takes seriously the right of communities to be heard and to participate effectively in every aspect of development plan formulation can never be entirely digital. As Dr Hugh Ellis told the Committee:
“We can have as much digital information as we like, but we also need access to the arenas where decisions are made”.”––[Official Report, Levelling-up and Regeneration Public Bill Committee, 23 June 2022; c. 126, Q157.]
I make that point simply to stress that meaningful engagement with the planning process requires in-person access to key decision-making forums, and the Bill erodes that right in important respects. That is why we will seek to amend clauses 82 to 84 and schedule 7 in due course.
When it comes to planning data, it is evidently not the case that everyone will be able to access information digitally even once it has become more accessible, as the Bill intends. For some people, that might be because they are digitally literate but do not have the proper means to engage with online data, and that concern was raised by Jonathan Owen, the chief executive of the National Association of Local Councils, in his evidence to the Committee, who suggested the potential need for capital investment to enable remote communities such as his own to engage with online material. Otherwise, it might simply be because a small but significant proportion of the population would not be able to engage with online data even if they had the means of accessing it.
In short, digital exclusion is not merely about whether people can access the internet but about their ability to use it, and a small but significant proportion of the population struggle to do so. The most recent UK consumer digital index published by Lloyds bank estimates that 21% of adults—11 million people—do not have the essential digital skills needed for day-to-day life.
Matthew Pennycook
I very much agree that, potentially, some of the proposed reforms could exclude those on whom we rely most in our communities to engage with the planning process. My hon. Friend also touches on the wider point that digital exclusion is inextricably linked to wider inequalities in our society. It is more likely to be faced by those on low incomes, disabled people and, as she said, people over the age of 65. Indeed, so close is the link between digital exclusion and other facets of poverty that it has been argued that it should be considered a key index of deprivation.
Evidence collected by the Local Government Association found that when the pandemic struck, only 51% of households earning between £6,000 and £10,000 a year had access to the internet, compared with 99% of households with an income of over £40,000. Even when poorer households had access to equipment and the internet, they were less likely to have the skills to utilise it. Clearly, to the extent that the pandemic drove many aspects of life online in ways that appear to have stuck, albeit in many instances in a hybrid form, the problem of digital exclusion has correspondingly become more acute.
I fully appreciate that the challenge posed by digital exclusion extends far beyond the issue of access to and engagement with the planning system in England. I am also fully aware that there are a range of policy initiatives beyond the remit of the Department for Levelling Up, Housing and Communities that have been put in place to address the problem—for example, funding for adults to gain a first qualification in essential digital skills. Although, as you might expect, Sir Mark, we would urge the Government to do far more to reduce the prevalence of digital exclusion. However, in the context of the Bill, the fact that digitisation of the planning system is a key feature of it, and the rationale for that is in part boosting engagement and participation, we believe that the Government need to address digital exclusion explicitly. We believe that they should do so in two ways.
First, there should be an explicit recognition that digitisation should enhance more traditional ways of communicating with the public about local planning matters, rather than replacing them entirely. Even if digitisation of the planning system proceeds apace, many people will still want and need practical help and support with understanding and engaging with the system. Simply being furnished with the opportunity to access vast quantities of data online is unlikely on its own to encourage more people to get involved in local planning. Given the chronic lack of capacity within local planning authorities, peer-to-peer, face-to-face support is extremely challenging. But established formats for communication, such as site notices, which were referenced earlier, have a role to play. We believe that they should not necessarily be removed as requirements from the system.
Secondly, there needs to be a focus on ensuring that digitisation is as inclusive as possible. In the context of clause 77 and the other related clauses, that means a focus on ensuring that planning services, data and tools are accessible to all, including those without the confidence or skills to use digital. Amendment 66 is designed to force the Government to engage more directly with those issues, and it does so simply by specifying that on the day any regulations under the section are laid before Parliament requiring certain planning data to be made publicly available, the Secretary of State also publishes a statement on how the provisions do not exacerbate digital exclusion.
I appreciate that this is not the most elegantly crafted amendment, but the issue it seeks to tackle is a real one, and the need to do so is pressing if the Government are serious about making the planning system accessible to as many members of society as possible. As such, I hope that it will elicit from the Minister a clear response, and that the digitisation that the Bill will facilitate will not exacerbate digital exclusion. I hope that by implementing new data standards reporting requirements and transparency measures in the Bill, Ministers will be actively working to adhere to digital best practice and ensure that digital planning tools are built and designed to be easy to use for all, regardless of age or accessibility needs.
Mr Jones
I entirely agree with the spirit of the amendment. As we discussed previously, digital exclusion is an important consideration for the design of public services. The statement proposed by the hon. Gentleman would, however, be unnecessary. Currently, as we know, published planning information is often difficult to access. It is inconsistently presented and hard to use for everyone in the planning system. Too few of our constituents engage with planning. We want as many people as possible, and as diverse a range of people as possible, to participate in our planning system, and our digital reforms are central to this endeavour. We can all agree that in a world in which an increasing emphasis is placed on using digital services and tools by default, those who have to use alternative methods can be at risk of exclusion.
Tim Farron
This is a good and wise amendment that looks at the additional responsibilities placed on planning departments and how important it is that the Government ensure adequate resourcing for these new functions so that the digitisation of the planning system is performed adequately. It really opens a window on the wider issue that the hon. Member for Greenwich and Woolwich rightly highlighted into the staffing, resourcing and competence of planning departments across the country.
The Bill introduces many measures—perhaps many more than some of us would like. How frustrating will it be to developers, proposers, local residents, members of councils and local communities—everyone—if it turns out that the new powers and functions that might come about simply cannot be enacted? We see around the country a reduction in the quality of planning decisions, not because planners are not good people but because there are too few of them.
There is not the capacity for planners to go and spend a semi-formal hour with a potential developer or householder to scope out what may or may not be possible. That would save people putting in an application that was always doomed to fail, or ensure that an application is more likely to be in line with planning policy and the wishes of the local community. We get bad decisions that end up being appealed, which is more expensive for everybody and sucks all the energy out of that planning department when it should be focused on trying to preserve and promote the community’s priorities.
We will have many debates—we have had some already—about what planning provisions should be in the Bill and what powers local communities should have. It will all be pretty meaningless if there is no way whatsoever of ensuring that the new provisions are enforceable.
Mr Jones
In considering the thrust of the hon. Gentleman’s amendment, the Government recognise the need to ensure that planning authorities are well equipped and supported to successfully deliver these reforms. The Department has already adopted a joint approach with local authorities to modernise the planning system. Examples include the work to reduce invalid planning applications, the back-office planning system software projects and our local plans pathfinders.
We will continue to fund and run pathfinders and pilot projects to test and develop the standards, tools, guidance and templates needed by planning authorities. Central to that, we will work with planning authorities to ensure that the reforms and the legislative requirements we are placing on them work as we all want and intend. We therefore agree on the need to support planning authorities. That work is already under way and will continue. I am unconvinced that putting a vague requirement of doubtful enforceability into law would meaningfully add to that commitment.
Matthew Pennycook
I am glad the Minister understands the concerns that the amendment seeks to highlight. I welcome his recognition that local planning authorities need to be well equipped and supported to make the changes. In all honesty, I was not reassured by his answer, which I found to be quite vague. We know that, as has already been said, local planning authorities face real challenges in resourcing new capacity. That is a pre-existing problem. They are being given a set of new responsibilities and there has been no reassurance that we will get any additional financing for those new burdens. I do not intend to press the amendment to a vote, but we will come back to the issue of adequate financial resourcing for some of the changes that the Bill seeks to enact many times during its passage. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
The planning information that is currently published is often difficult to access, inconsistently presented and hard to use, limiting its wider usefulness. Clause 77, in combination with clause 75, changes that by requiring standardised information to be openly available to anyone for free. The Secretary of State will set the licence under which the information is to be published and regulations will specify the information to which the requirements apply. There is a limitation on the information that may be made available to ensure that sensitive data, such as where the planning authority has an obligation of confidence or where data protection legislation applies, cannot be subject to the regulations.
We believe opening planning data will drive greater productivity and efficiency levels across the housing, planning and land sectors, which will deliver significant benefits to a wider range of groups. Benefits include time savings, the development of new tools, and increasing accessibility to the information required for decision making.
Without accessible planning information, both local and central Government cannot make faster, better-informed decisions to meet the needs of local communities and understand national demands and challenges. Likewise, the development of innovative digital tools and services that better engage communities and allow planners to work more productively is hampered.
Open, consistent and comparable planning information will unlock a more transparent planning system where communities can better understand, contribute to and, as a result, have greater confidence in planning for their areas. I therefore commend the clause to the committee.
Question put and agreed to.
Clause 77 accordingly ordered to stand part of the Bill.
Clause 78
Power to require use of approved planning data software in England
Matthew Pennycook
I beg to move amendment 68, in clause 78, page 87, line 10, at end insert—
“(1A) On the day any regulations under this section are laid before Parliament the Secretary of State must publish an accompanying statement setting out—
(a) the reasons why the planning data software in question has not been approved for use by the Secretary of State,
(b) the steps that the Government has taken to ensure that the decision not to approve the planning data software in question does not undermine effective competition in the procurement of planning data software in England.”
This amendment would require the Secretary of State to publish a statement explaining why the provisions in this section were used to restrict or prevent the use of planning data software and setting out the steps taken to avoid the creation of a Government-granted monopoly in planning data software.
Clause 78 permits the use of regulations to restrict or prohibit relevant planning authorities from using software not approved by the Secretary of State. We have just considered one possible adverse outcome of the use of these powers, namely that local planning authorities who have purchased software and tools may find that in the future they are not approved for use and that their investment has been made redundant as a result. However, we are concerned that another adverse consequence might potentially flow from the use of the powers and that is the limitation of fair and open competition among software providers.
Amendment 68 would add to clause 78 a requirement that on the day any regulations under the clause are laid, the Secretary of State must publish an accompanying statement setting out, first, the reasons why the planning data software in question has not been approved for use and, secondly, the steps that the Government have taken to ensure that the decision not to approve does not undermine effective competition in the procurement of planning data software in England.
The effect of the amendment would not be to prevent the Secretary of State from exercising the powers in clause 78 but simply to ensure that the holder of that office properly justifies their use and has due regard to the need to maintain healthy market competition. The reasoning behind the amendment is that as benign as the provisions in clause 78 might appear to be, in the sense that taken at face value they are merely a means of rolling out new data standards and enforcing standardisation, they could, deliberately or inadvertently, create a Government-granted oligopoly or monopoly in planning data software. We believe the Government should be clear that the intention of the powers is not to foster an oligopolistic or even, dare I say, a monopolistic market in planning data software.
I appreciate fully that the Government are bound by public procurement rules, albeit ones that they intend to overhaul by means of the Procurement Bill that is progressing through the other place, and that within the general procurement framework there is a specific set of rules and handbooks for technology procurement. However, the powers in clause 78 strike us as so expansive, enabling Ministers by regulation to restrict or prevent the use or creation of software used by planning authorities to process planning data, that a further check to their use is required.
Assuming the Government do not wish to fetter rigorous competition in the planning data software market, amendment 68 should be an easy one for the Minister to accept and I hope to hear that he will do so.
Mr Jones
We wholeheartedly support the principle embodied by the amendment, although I think there may be a slight misunderstanding about the mechanics of clause 78. Clause 78 aims to ensure planning authorities are supported by modern software that complies with the requirements created by our digital reforms. We will set out clear criteria that the Secretary of State must then apply in deciding whether to approve any given software to which the regulations apply.
The expectations of the Secretary of State will therefore be public and clear before any software is submitted. Likewise, the reasoning of the Secretary of State’s decision to grant or withhold approval will necessarily be the compliance with those criteria. In that context, a statement on individual software decisions would be superfluous and could risk inappropriately disclosing commercially sensitive information. That could, for example, deter submission for approval, undermining the intention of the provision.
That brings me to the second aspect of the hon. Member for Greenwich and Woolwich’s amendment—the statement about the effect on competition in the software market. Regulations could not lawfully be made, nor could decisions lawfully be taken, under that power with the aim of conferring a monopoly. The Secretary of State cannot use the powers other than impartially between software suppliers to foster the innovative market our reforms are designed to achieve. The criteria for approval will be informed and refined by continuing—and continual—work with planning authorities and software suppliers on trial planning software. We have, for example, already funded planning authorities for the creation of new software and supported programmes for local authorities to improve their existing development management software.
We have started to engage with the technology sector through local authority-led pilots and pathfinders. We will continue to engage meaningfully with them and others to establish a realistic adoption timetable for any planning data software that the Secretary of State may wish to approve for use by planning authorities. I hope that provides sufficient reassurance to the hon. Member for Greenwich and Woolwich to allow him to withdraw his amendment.
Matthew Pennycook
I am grateful to the Minister for that response. I note that he only said that the clause would prevent the advent of a monopoly and not an oligopoly. I still worry, reading the text of the Bill, that we could inadvertently find that the Government restrict what software can be used by local authorities. That said, I welcome the clarification and reassurances that the Minister has provided. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
We have already discussed some aspects of the clause in relation to amendment 68. Many planning authorities are reliant on outdated and expensive software and systems that do not work with one another, forcing manual re-entry of information while locking that information away in formats that are not reusable. Clause 78 allows the Secretary of State to change that entrenched status quo. Without the right software to support processing standardised data, the benefits from the chapter across the planning system will be thwarted.
Clause 78 relies upon, and will therefore follow from, the introduction of data standards set under clause 75. Those data standards will take time to develop. The aim of our reforms is to create a virtuous circle whereby better software enables better information to be published, which in turn allows better tools to be developed for planning authorities. As such, it is not our intention to require approval for all planning data software. We will work with planning authorities and the technology sector to determine where and when the use of that power will most benefit the planning system. The clause enables the creation of the effective, high-quality system that the public rightly expect of Government at all levels. I commend clause 78 to the Committee.
Question put and agreed to.
Clause 78 accordingly ordered to stand part of the Bill.
Clause 79
Disclosure of planning data does not infringe copyright in certain cases
Question proposed, That the clause stand part of the Bill.
Mr Jones
The Government want to encourage innovation in the property technology sector. That is one of the key benefits expected from opening planning information to the public. The clause provides a narrow expansion of the existing protections against copyright infringement by planning authorities for the purposes of their statutory role in planning functions. It is primarily intended to put the position beyond doubt that any use of planning information by planning authorities and software developers in developing or maintaining software to comply with approval requirements under clause 78 does not infringe copyright. The clause is grounded in and maintains the existing scheme for the protection of copyright that allows the use of copyright works for statutory purposes. It does not prejudice the rights and protections afforded to copyrighted works, and supports the innovation for planning authorities that we all want to see. I therefore commend the clause to the Committee.
Matthew Pennycook
I have a few questions for the Minister about the three clauses. Clause 79 provides that a local planning authority that makes planning data available to a person does not, in doing so, infringe copyright if making the data available is necessary for certain purposes such as the development of planning data software. Will the Minister explain the rationale for restricting the circumstances where planning data will not be in breach of copyright solely to those purposes set out in subsections (1)(a) and (b)? Will he also comment on whether he foresees any other circumstances where it may be desirable for copyright to be limited, for example in relation to academic research?
Clause 80 stipulates that the Secretary of State may only make planning data regulations that contain provision within devolved competence of the Scottish Parliament, the Senedd or the Northern Ireland Assembly after consultation. I presume—the Minister can correct me—that legislative consent is not required for the provisions, but perhaps he could clarify what engagement his Department has had with the devolved Administrations about the planning data aspects of the Bill.
Finally, clause 81 provides definitions of key terms. Will the Minister confirm that the definition of relevant planning authority to include any public body with functions relating to
“planning or development in England”,
as laid out in paragraph (n)(i), covers community and parish councils, and neighbourhood planning forums? If so, what support, if any, will they be provided with to ensure that any plans or priority statements they produce conform with the regulations, given they are generally voluntary organisations?
Mr Jones
On the point about devolving planning to neighbourhood planning level, I expect that support will be provided by local planning authorities in that regard.
The hon. Gentleman also mentioned the type of copyright material that is in scope of infringement protection. Any information with the purpose of approving and maintaining or upgrading the planning software that falls under the definition of the planning data defined within the Bill, in which copyright subsists, is in scope of the power. One such example is architectural drawings, where the planning authorities are required to consult on new proposed developments.
The hon. Gentleman raised one other point. I am not able to confirm at the moment but will certainly write to him about the discussions that my predecessor has had with the devolved Administrations.
Question put and agreed to.
Clause 79 accordingly ordered to stand part of the Bill.
Clauses 80 and 81 ordered to stand part of the Bill.
Clause 82
Development plans: content
Rachael Maskell
I beg to move amendment 117, in clause 82, page 91, line 8, at end insert—
“(3A) After subsection (4) insert—
‘(4A) A local planning authority must review and update the development plan no less regularly than once every five years.’”.
This amendment would require local authorities to review and update the development plan at least every five years.
This is a probing amendment and I would be grateful for the Minister’s response. York has not had a local plan for 76 years—that is another issue that will no doubt come across the Minister’s desk—and I am trying to work through why that has been the case. There has often been a complex and rapidly changing political context in the city.
We seem to talk about local plans, development plans, minerals and waste plans, transport plans and so on as events, rather than in the context of a place’s evolution. Therefore, if there is a 10-year period—or even longer in the case of York—between plans being updated, the task is so great that it can be very challenging indeed. Thinking about how we can get some sequencing and timelines for how data is produced and how development and supplementary plans are put in place could improve the process.
I have some observations about why it has not worked in York and about the task ahead. For our city, the situation has presented many challenges because developers have taken advantage. It has caused a lot of difficulty over the years, but it has also dominated the political environment and destabilised our city, rather than stabilised the way forward.
I want to touch on the supplementary plans, which feed into the data, and to think about the pace at which things are moving forward. The local transport plan, which feeds into our development plan, dates back to 2011, and the data was gathered two years earlier, so it is already 13 years out of date. That is informing the local plan, which is being discussed with the inspectors is this week. Thirteen years ago, we did not have micromobility, e-scooters and e-bikes. Electric vehicles were not really a thing and bus services were very different. Even our major roads have changed over that time, and we have seen deepening congestion of late.
We now know that climate pressures are bearing heavily on our environment, whether in respect of housing, economic development or transport infrastructure. Anybody who was at the briefing yesterday with Sir Patrick Vallance will understand how pressing it is that we address the climate issue at this moment. Leaving plans for too long could mean that they are not responsive to the call of our time, particularly on climate issues. They will also not recognise the changing environment we are in. I have to hand it to the Government: some of the things they are putting forward on national infrastructure and housing are ambitious. Whether they can deliver is another question altogether, but they are certainly putting out a rapid change, and we need to reflect that in our planning system.
A supplementary plan that is 13 years out of date is not responsive to the logjams that we see in York today—the increase in the volume of traffic and the consequences of that on our air quality—and developments that have happened. We have an outline plan for the York Central site, with 6,500 jobs and 2,500 dwellings. We are talking about placing this new city within York in the middle of our old medieval city, as well as the infrastructure routes feeding into it, but with transport planning that is 13 years out of date, we will rapidly see that bringing all those cars into the city centre will just create a car park. Therefore, it is not responsive enough to the reality of what we are doing. At rush hour, York will come to a complete standstill, yet these supplementary plans are meant to inform what is happening.
I could talk about environmental plans and what is happening on flooding. Fortunately, we have been putting in mitigation to address the flooding challenges in our city, but the Environment Agency tells me that we have 17 years until we are challenged again, unless upstream infrastructure is put in place and we take water out of the rivers, improve soil quality and so on. We really need to think about the rapid changes and pressing issues that we face.
Therefore, we need some time. I put five years as a suggested time period for us to start thinking about how we move on to the next stage of our planning. That is why it is a probing amendment. I am trying to build a culture in our planning system of a thinking process, as opposed to having rigid timetables.
Our major routes around York will have an impact on the way traffic flows in our city, whether it is the dualling of the ring road or the widening of some of the A roads—not in my constituency but on the outside of York. At the same time, we have a city centre that has been declared car-free. That will have a massive impact too, with blue badge holders being locked out of their city. We have changes of routes through various parts of the city, building pressure and volume on some of the core routes through York.
It is important to recognise the pace of the change that is occurring and to think about how we can best address that in the planning system. We can do that through a timetable, and that is why I have said it is a probing amendment. We have to start addressing what is happening on the planet around us in the context of planning. In particular, I am thinking about scheduling and the evolution approach, as opposed to this being an event. It certainly will be an event in York if we do get that local plan over the line. [Laughter.] I am sure the Minister will want to come and celebrate with us all at that moment.
A conversation is needed about planning and about how we bring together our supplementary plans—our minerals and waste plan, and our local transport plan—in sequence for a local plan process. More thinking needs to be done. I thought it was necessary to table an amendment to make that point today and to see how the Minister responds, because this may be something we want to explore at later stages of the Bill.
Mr Jones
It is extremely important that local planning authorities ensure that policies in their plans remain up to date, so that they can effectively address the needs of local communities. We have certainly heard one example where the policy is not just out of date; it sounds like it has not been in date for some decades. That causes significant challenges, as has been outlined by the hon. Members for York Central and for Westmorland and Lonsdale.
In the current system, local planning authorities are required to review their plans once every five years from their adoption, as is set out in regulation 10A of the Town and Country Planning (Local Planning) (England) Regulations 2012. We have made it clear in the Bill’s policy paper that we intend to require, through regulations, authorities to update their local plans at least every five years. Although I fully understand the spirit of the amendment, these are procedural matters that have traditionally been addressed via regulations, and we intend to retain that principle. I therefore ask the hon. Member for York Central not to press her amendment to a vote.
Rachael Maskell
I am really grateful for the debate and for the Minister’s response. We all recognise the importance of development plans and supplementary plans in shaping our communities. Ultimately, we want the best for our communities and to make sure that providers that have profit in mind do not come and take advantage of an area, which is why such plans are really important. We must ensure that they are timely and kept up to date, and that they are of great use in shaping the future. Therefore, having a process whereby we start to think more about the evolution of our communities, as opposed to five-year or 10-year events that we have to race around to prepare for, is really important.
To get a different culture in planning, we need sufficiency. As my hon. Friend the Member for Greenwich and Woolwich said, we need to ensure that the resourcing is there for local authorities to do a proper job at planning, because if they can build a robust local plan and some of the supplementary plans, it protects them. It also protects their community and enables them to drive change—something I think we all want to see.
As I said, however, I tabled amendment 117 as a probing amendment. I am grateful for the debate. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
The Government want the planning system to be truly plan-led, to give communities more certainty that the right homes will be built in the right places. To achieve that, plans will be given more weight in decision making. They will be faster to produce and easier to navigate and understand. Currently, communities and applicants can face an alphabet soup of planning documents, leaving all but the most seasoned planning professionals pretty baffled.
The clause provides an important change to the definition of the development plan set out in section 38(2) of the Planning and Compulsory Purchase Act 2004. It outlines the elements that, collectively, will comprise the development plan for any given area of land. It replaces the terminology used to describe constituent documents to align with that used in schedule 7 to the Bill, as introduced by clause 87. It paves the way for a system without local development documents, local development frameworks, area action plans, and local plan part 1s and part 2s. Instead, we will have a simpler approach, with specific references to neighbourhood plans, local plans, spatial development strategies, supplementary plans, and minerals and waste plans, as defined in schedule 7.
That change will leave communities and applicants in no doubt about which are the key planning documents for an area, and will lay the foundation for the later reforms of the planning system through this Bill. I therefore commend the clause to the Committee.
Question put and agreed to.
Clause 82 accordingly ordered to stand part of the Bill.
Clause 83
Role of development plan and national policy in England
Matthew Pennycook
I beg to move amendment 86, in clause 83, page 91, line 28, leave out lines 28 to 30 and insert—
“(5C) But the development plan has precedence over any national development management policy in the event of any conflict between the two.”
This amendment gives precedence to local development plans over national policies, reversing the current proposal in inserted subsection (5C).
Mr Jones
I thank hon. Members for their contributions on the amendments. It has been a somewhat lively debate. I will miss the conversations that I have had week on week with my hon. Friend the Member for Buckingham, but I am sure that those calls from me to him will now turn into calls from him to me as he pursues me, probably weekly if not on a more frequent basis.
The amendments, which aim to make the same change to clause 83—namely, to ensure that development plan policies always take precedence over national development management policies—come from the collective commitment of the hon. Members for Nottingham North and for Greenwich and Woolwich to support local democracy in planning. However, it is the Government’s view that it would be counterproductive to amend the Bill as proposed. Clause 83 reforms decision making, strengthens the role of the development plan, including local plans and neighbourhood plans, in practice. It states that the relevant decisions, for example, on planning applications will only be able to depart from the development plan where
“material considerations strongly indicate otherwise”.
It would no longer be enough for those other considerations merely to “indicate otherwise”, something that can be exploited to override local decisions. This will be the biggest change to the basis of planning decision making since the early 1990s, and will ensure local and neighbourhood plans have greater primacy.
Mrs Emma Lewell-Buck (South Shields) (Lab)
I am curious as to whether the Minister can give us an example of what will be designated a national development management policy?
Mr Jones
I am not in the position to give the hon. Lady that example today. As she knows, such policies are often developed through the process of making primary legislation, and then are developed beyond the process we have before us today. I take her comment.
As part of the reform, we are also introducing statutory national development management policies. Those policies would sit alongside those in local plans when relevant planning decisions are made, with clear statutory weight. National development management policies will be primarily those nationally important policies used for making decisions. The hon. Member for South Shields should note that a current example is green belt protection.
There are several reasons why we think national development management policies are an important and positive reform. First, they will make it easier for local authorities to produce their local plans. By dealing with universal planning considerations nationally and giving them the same weight as the plan, local authorities will no longer need to repeat those matters to ensure they have sufficient force.
Secondly, introducing national development management policies means that local plans can focus on matters of genuine local importance to communities—saving time and money for authorities, and making plans more locally relevant and easier to use. Thirdly, it will be easier for applicants to align their proposals with national and local policy requirements—something which we expect to be of particular benefit to small and medium-sized builders.
Fourthly, it will provide greater assurance that important policy safeguards that apply nationally, or to significant parts of England, such as protections for areas at risk of flooding, policy on climate change, and policies to protect the green belt, will be upheld with statutory weight and applied quickly across the country, including when any changes are made.
That brings me to the heart of the issue outlined by the hon. Member for Greenwich and Woolwich about the national development management policy taking precedence over local plans. It is extremely important to reiterate that where we have local plans that become very out of date, it is important that the protections set out in national policy continue to be reflected in the decisions.
Finally, this framework of basic national policies can guide relevant planning decisions if a local plan is significantly out of date and cannot be relied upon in certain respects. Introducing national development management policies and giving them statutory weight is, therefore, important to creating much greater clarity around the role of national policy in decisions. Increasing this clarity is crucial to reducing the number of planning appeals local authorities face, and therefore reducing the number of unanticipated developments communities face on their doorstep as a result. That point has been made a number of times this afternoon. That clarity also reduces the cost associated with those appeals, enabling local authorities to divert their resources to planning positively for their area. I think I can safely say that that is an outcome that we all want to deliver.
The amendment deals specifically with what to do in the event of a conflict between national development management policies and the development plan when a planning decision must be made in accordance with both. As I have indicated, I believe the current clause is a necessary safeguard in situations where plans are out of date and important national policies on the environment or other matters need to be reflected fully in decisions.
To explain that more fully, some local plans are woefully out of date. We heard one example in Committee this afternoon and there are a number of examples across the country where the plans, although not quite as out of date as the one mentioned by the hon. Member for York Central, have been out of date since the 1990s.
Matthew Pennycook
How does the Minister believe that this clause specifically will address the fact that there is not sufficient coverage of local plans across England? How will the provisions in the clause incentivise people to take up a local plan if they have not already done so?
Mr Jones
We have just discussed a clause that will compel local authorities to put in place an up-to-date local plan every five years. What we are discussing here is making sure that, where we get outliers and places with out-of-date local plans, green belt protection and other such things can be maintained through the national development management policies. This is a crucial point. We wish to use national policy to drive higher standards where those standards at the moment are not as they should be, especially on the environment and to tackle climate change. It is important that those policies can take precedence in the event of conflict with the out-of-date policies in plans.
I would nevertheless expect such conflicts to be limited in future, because we are making it easier to produce plans—we have discussed a number of situations today in which that would be the case—and because the Bill makes sure that new plans will be drawn up consistently with national policies, including the new national development management policies.
As I said at the outset, I appreciate the strength of feeling on this issue. Last week, the previous Secretary of State, my right hon. Friend the Member for Surrey Heath (Michael Gove), published his response to the letter from the Chair of the levelling-up Select Committee in which clarification was requested on this question. I have spoken to the new Secretary of State, the right hon. Member for Tunbridge Wells (Greg Clark), who took office this week. His view is the same as that expressed in the letter. We will provide a copy of that letter to members of the Committee.
We are also committed to providing more information about how we expect national development management policies to work in the future, which is why we plan to publish shortly the prospectus I referred to earlier, if not as articulately as I could have, so that we can look at our approach to the preparation of that prospectus. We will welcome views from hon. Members. With those assurances, I hope that the hon. Member for Greenwich and Woolwich will feel able to withdraw the amendment.
Matthew Pennycook
Given how long the Minister has been in post, I do not blame him, but the arguments he makes in defence of clause 83(2), and proposed new subsection (5C) in particular, are the same ones we have heard over many months. Frankly, I do not think they stack up. I note with interest the points he made about the new Secretary of State taking the exact same view. I do not think his line that it would be counterproductive to amend this aspect of the Bill will hold.
I do not intend to press amendment 86 to a vote, because we will almost certainly come back to this issue on Report, but I just ask the Minister to go away and satisfy himself that the powers in subsection (2) are appropriate and justified. Will he think through, as the hon. Member for Buckingham said, not only the implications for democratic control of planning, engagement and scrutiny of planning, and the impact on trust and confidence in the planning system, which we know is an issue, but the implications in terms of innovation, undermining devolution deals and the legal delays that I am certain will come if the Government try to use this power? They will have to think about this issue again, and we will certainly come back to it on Report. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Matthew Pennycook
I beg to move amendment 98, in clause 83, page 91, line 30, at end insert—
“, subject to subsection (5D).
(5D) But any conflict must be resolved in favour of the development plan in an area if—
(a) if, in relation to it, regulations under section 16 of the Levelling-up and Regeneration Act 2023 have been made to provide for the town and country planning function and the highways function and any functions exercisable under the Environment Act 2021 of a county council or a district council that is exercisable in relation to an area which is within a county combined authority area to be exercisable by the CCA in relation to the CCA’s area,
(b) if, in relation to it, regulations under section 17 of the Levelling-up and Regeneration Act 2023 have been made to provide for at least one function of another public body that is exercisable in relation to an area which is within a county combined authority area to be exercisable by the CCA in relation to the CCA’s area,
(c) it has a joint spatial development strategy, or
(d) it is in Greater London.”
This amendment would place limits on the primacy of national development management policies over the development plan where a Combined County Authority had been handed planning, highways, environmental powers and at least one function of another public body under a devolution deal, in areas covered by a joint spatial development strategy and in Greater London.
This is a probing amendment. Given that the Government have just declined to accept amendments 83 and 57, and reconfirmed their intention to have national development management policies override local development plans in the event of any conflict between them at the point of determination, amendment 98 is designed simply to try to elicit from the Government whether they will consider allowing any specific exemptions to that general principle.
The amendment would do so by specifying that any conflict between an NDMP and a local development plan at the point of determination must be resolved in favour of the latter in an area where a combined county authority has had key powers transferred to it under a devolution deal, where a joint spatial development strategy has been agreed, or in Greater London. The idea is that an exemption from the primacy of national policy in the form of NDMPs would be the reward, so to speak, for agreeing a devolution deal with the full panoply of powers available or for engaging in strategic planning by putting a spatial development strategy in place—or, it should be said, for taking part in a new joint spatial development strategy across authority boundaries.
Let me explain my reasoning further by using the example of an area where an SDS or a joint SDS might be taken forward. As the Minister will know, once a spatial development strategy is in place, it provides for a strategic framework for the development plan or plans, which should in theory supersede or take primacy over NDMPs that the Government might happen to bring forward.
While we remain of the view that no local development plan should be made subordinate to national planning policies in the form of NDMPs, if the Government are determined to ensure that they are—it sounded that way from the Minister’s comments in the previous debate—we believe that they should at least consider exempting from that centralising approach areas that have proactively taken on greater powers, including powers to plan strategically, so that they can use them to the full to reflect local priorities and innovate, having regard to national policy but not being unduly constrained by it.
On that basis, I hope that the Minister will give our amendment due consideration.
Mr Jones
I thank the hon. Member for his amendment 98, which relates to higher-tier authorities with planning powers. During the debate on amendments 86 and 57, I set out our case as to why it may be necessary for national development management policies to outweigh the development plan in the event of a conflict. Amendment 98 would prevent that from happening where there is a conflict in an area covered by a Mayor or a combined authority.
I understand that the argument behind the amendment is that it would support our efforts to promote devolution by exempting Mayors and combined authorities from any situation in which national development management policies might have precedence over their own. While I understand that argument, it is not one that we are able to agree with at this point. It makes complete sense for Mayors and combined authorities to use their strategic planning powers to make policies that support proper planning in their areas, but it does not follow that those should automatically outweigh national development management policies, given what those policies aim to do.
National development management policies will be nationally important policies, such as for the green belt or flood protection, as I have already mentioned. It remains important that those are not duplicated through strategic plans, which should restrict the chances of conflict occurring in the first place, especially where plans have been kept up to date. More details on what national development management policies could look like will be set out in the prospectus coming this summer, which will also indicate the scope for policies in plans to address matters that are locally important, or of strategic importance in the case of a Mayor or combined authority.
The other arguments made in relation to amendment 87 also apply here. There will be occasions when circumstances arise that mean the Government need to make an urgent change. That became apparent during the pandemic, when we had to act very quickly to protect temporarily closed theatres and live music venues from the threat of development. In those circumstances, it is right that national development management policy is able to override the development plan, even where there is a strategic plan-making body.
I hope that the hon. Member for Greenwich and Woolwich understands those reasons and will withdraw his amendment.
Matthew Pennycook
The Minister will appreciate that I am, naturally, disappointed that the Government will not countenance any exemption from the precedence that clause 83 affords to national development management policies, but I do not intend to press the amendment to a Division. The root of the problem is the powers in clause 83, rather than the specific issue raised by the amendment. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss that schedule 6 be the Sixth schedule to the Bill.
Matthew Pennycook
I will be extremely brief because a Division is due in the main Chamber, but also because schedule 6 is largely a tidying-up exercise, amending the Town and Country Planning Act to add requirements for local planning authorities to have regard to material considerations in NDMPs when modifying or removing permission, granting outline permission, and enforcement and appeals.
However, reading the schedule prompted two questions in my mind. First, paragraph 12(b) to schedule 6 amends paragraph 8(2) to schedule 4B of the Town and Country Planning Act 1990 to insert paragraph (da), requiring neighbourhood development orders, which implement neighbourhood plans, to be in general conformity with NDMPs. Given that the Government are explicitly legislating in the Bill to ensure that neighbourhood development orders are consistent with NDMPs, can the Minister give the Committee a sense of what kind of national policies covered by an NDMP would have direct relevance to extremely local, sub-district plans, such that conformity with them needs to be required by the Bill?
Secondly, paragraph 15 to schedule 6 amends section 337(2) of the Greater London Authority Act 1999 to insert new paragraph (ca), which adds NDMPs to the list of matters that may require modification of the Mayor of London’s spatial development strategy prior to its publication. Given that the supposed thrust of the Bill is to enable greater devolution to regional authorities and leaders, could the Minister explain the rationale for making the London spatial development strategy subservient to centrally mandated policy?
Mr Jones
On the hon. Gentleman’s point about neighbourhood plans, as I have mentioned a number of times, a prospectus will be brought forward in the summer to explain how national development management policies may work. I urge him to wait and see those documents. When he sees the prospectus, he will no doubt provide a response. [Interruption.]
Alex Norris (Nottingham North) (Lab/Co-op)
It’s another leadership video, isn’t it? [Laughter.]
Mr Jones
I reiterate the point that I made with respect to amendment 98. For the reasons I mentioned then, national development management policies will be nationally important policies, and like those for the green belt and flood protection, it remains important that they are not duplicated, so that we restrict the chances of conflict occurring in the first place, especially where the plans have not been kept up to date. My hon. Friend the Member for Buckingham in particular mentioned a number of situations in which planning decisions had been made and overturned, and clearly policies conflicting can quite often be the reason why that happens. It is therefore extremely important that we try to restrict the chances of such conflicts. With that, I commend clause 83 to the Committee.
Question put and agreed to.
Clause 83 accordingly ordered to stand part of the Bill.
Schedule 6 agreed to.
Ordered, That further consideration be now adjourned. —(Gareth Johnson.)
Levelling-up and Regeneration Bill (Twelfth sitting)
Marcus Jones ExcerptsTuesday 12th July 2022
(2 years, 5 months ago)
Public Bill CommitteesRead Full debate Levelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 12 July 2022 - (12 Jul 2022)
The Chair
Before we begin, I have some preliminary announcements. Please keep electronic devices on silent mode. No food or drink, except for the water provided, is permitted during Committee sittings. Hansard colleagues would be grateful if hon. Members emailed their speaking notes to hansardnotes@parliament.uk.
Clause 72
Long-term empty dwellings: England
Question proposed, That the clause stand part of the Bill.
The Minister of State, Department for Levelling Up, Housing and Communities (Mr Marcus Jones)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I would like to pay tribute to my right hon. Friend the Member for Surrey Heath (Michael Gove) and our predecessors on the Committee, my right hon. Friend the Member for Pudsey (Stuart Andrew) and my hon. Friend the Member for Harborough (Neil O’Brien), all of whom did a huge job to bring the Bill to where it is today. Through their diligent work, we are debating a Bill which will help to level up across the country.
Committee Members will be familiar with the challenge in many areas, whereby homes are left empty while local families are struggling to find a home close to their jobs or families, due to the pressures on local housing supply. It cannot be right that there are families left without an affordable home when there are owners not doing their best to bring their properties back into productive use for the benefit of the community. The Government are taking action to encourage those empty properties back into use. The longer a property is empty, the more likely it is to deteriorate and attract antisocial behaviour such as vandalism or squatting, which can reduce the value of properties and drive away the local communities. That is why we have introduced powers for councils to charge extra council tax on homes left empty for more than two years.
In 2018, we introduced a stepped approach so that councils can increase the premium depending on the length of time the property has been empty. Councils now have the power to charge up to four times the amount of the standard council tax bill when a home has been empty for more than 10 years. Nearly every council already makes use of the empty homes premium. I welcome the creative ways in which some councils use these powers to stimulate better use of the housing stock in their areas—for example, by providing refurbishment grants to bring empty homes to the standard for renting out, or conversion grants to help pay for converting a large empty home into smaller units. Why should councils wait two years before they have the power to take action to bring empty homes back into use? Through the Bill, we will give councils the power to apply the 100% premium on properties left empty after one year, rather than the current two years.
Clause 72 makes a simple change to section 11B of the Local Government Finance Act 1992. It will change the definition of “long-term empty dwelling” from meaning a dwelling that has been unoccupied, and substantially unfurnished, for more than two years, to one that has been unoccupied, and substantially unfurnished, for at least 12 months. To ensure that the change is implemented rapidly, but also provides sufficient opportunity for homeowners who may be affected to take steps to avoid the charge, subsection (2) provides that the amended definition has effect for financial years beginning on or after 1 April 2024. The clause will strengthen the powers for local councils to take action to incentivise owners to bring empty properties back into use, address the impacts of empty homes and help to increase the supply of affordable housing where it is needed. I commend the clause to the Committee.
Alex Norris (Nottingham North) (Lab/Co-op)
It is a pleasure to serve with you in the Chair, Mr Hollobone, and to serve with new members of the Committee. Perhaps it should be of concern that your predecessor, the hon. Member for Wellingborough (Mr Bone), sat in the Chair for a number of our sessions, but the idea of just one more seemed less preferable than entering Government. That may be a sign of what is to come between now and the end of September. In all seriousness, we welcome the Ministers to their place and we look forward to working with them.
I thank the hon. Member for Harborough and the right hon. Member for Pudsey for their efforts and communications with the shadow ministerial team inside and outside Committee. They worked very collegiately, which we appreciated, and I think that has been reflected in the quality of the debate so far, and the good spirits. We are here to disagree on points of substance, but are able to do so in good humour, and I know that that will continue with the new Ministers. I also thank the Whip, the hon. Member for Derbyshire Dales (Miss Dines), for enabling us to work together. I am sad that the new Ministers have missed out on those weeks of debate, which were largely composed of speeches from me. I am happy to start again if they wish—or perhaps not; those who have heard them seem to be moving further and further away, so perhaps I should take that as my cue to move on.
I am glad that the Minister is choosing to address the clause stand part debate, because it is an important part of the legislative process. When law is put on to the statute book, Ministers ought to make a case for it, so we appreciate his contribution. Given today’s development, I hope that the Minister may be able to offer one more. The continued absence of an impact assessment needs to be addressed. According to the Minister’s own words, the Bill is an important piece of legislation that will help to level up the country. At the moment, we do not have much of a base to build that case on, so we would be keen to see the impact assessment. I hope that the Minister will respond to that point.
Clause 72 is important because we are currently in a severe housing crisis, with a lack of supply of affordable homes for young people and no opportunities for families to get on the property ladder. Coupled with that, long-term empty dwellings are sat idly by, serving no purpose. It is right that the Government want to act, and we support the clause. However, we feel that it is a missed opportunity and that even the Bill will not give local authorities sufficient tools to get a grip of the situation and protect their local communities. We should have gone further with a power to levy a greater empty homes premium and to close the loophole through which properties are pushed into the business rates category—or slid into it—to avoid council tax. The Government should revisit that issue. I know that the Minister will have a full inbox, so he does not need to look far for inspiration. The Welsh Government seem streets ahead of the UK Government with their current policies. It is not a matter on which to divide the Committee, but I hope that the Minister will revisit the issue at a later stage, because we certainly will.
Tim Farron (Westmorland and Lonsdale) (LD)
It is a great pleasure to serve under your oversight and chairmanship, Mr Hollobone, and I offer a huge welcome to the new Ministers. I also pay tribute to the right hon. Member for Pudsey and the hon. Member for Harborough. The debate in Committee has indeed been consensual, collegiate and courteous, and I am sure that is how it will continue. It is a privilege to be on the Opposition side of the room and to join in the important endeavour of scrutinising this important Bill.
When it comes to communities like mine, it is worth bearing in mind that long-term empty dwellings—properties that are not used at all—are a challenge. In my district of South Lakeland, we have something in the region of 900 to 1,000 of such properties at any given time. It is likely that there are between seven and 10 times as many properties not lived in, but classified as second homes. If the Government are committed to retrieving properties that are out of permanent usage, and which are effectively displacing local people and the local workforce, empty homes are important, but not nearly as important as tackling the excessive second home ownership problem in communities such as the lakes and the dales. We look forward to discussing those issues when we consider later amendments today.
Mr Jones
First, I thank the hon. Member for Nottingham North for his very kind welcome. I look forward to working with him and his fellow shadow Minister, the hon. Member for Greenwich and Woolwich, in a good spirit. I suspect that we may not agree on everything as the Bill goes through the House, but I am confident that we will work together with a good spirit, both in Committee and outside.
In response to a couple of the points that have been made, I know that the impact assessment has been a concern. It will be provided shortly, and I would certainly expect that to be the case before the conclusion of the Committee’s proceedings. I hope that we will provide it as soon as we can.
On Wales, we have already given councils the power to apply a 300% premium to properties that have been empty for more than 10 years. That is part of our stepped approach to increasing the level of premium the longer the property remains empty. What we propose strikes the right balance between providing an incentive to bring empty properties back into use while recognising more challenging cases in which owners are taking action to have property suitable for accommodation within that time frame.
I thank the hon. Member for Westmorland and Lonsdale for his kind welcome. I do not disagree with his point about the challenges in many areas, especially those that have a strong tourist economy. I am sure that we will debate those challenges when we come to the next set of amendments. It is good to hear his comments, and that the ministerial team are thinking about that issue.
Question put and agreed to.
Clause 72 accordingly ordered to stand part of the Bill.
Clause 73
Dwellings occupied periodically: England
Rachael Maskell (York Central) (Lab/Co-op)
I beg to move amendment 79, in clause 73, page 81, line 30, after “dwelling” insert
“for six months or longer per year”.
This amendment seeks to further define how long a property must be empty for to be described as occupied periodically.
Tim Farron
I also agree that the amendments are helpful, and I urge the Government to seriously consider them. There is no doubt in my mind that although the housing crisis is one of supply, the supply that we have is distorted. We live in a strange world in which property is seen more as an investment than places for people to live and have homes. That is the way the market is, but if the market is broken, surely we have to intervene.
Levelling up is an interesting phrase and concept—one that I personally believe in—but we have to understand carefully what drives the absence of opportunity that we are trying to tackle. Housing, more than any other issue that the Government will consider through the Bill, is the cornerstone. There are challenges in every part of our country, so there will need to be an acknowledgment that the market is distorted and broken, and that it will therefore need radical intervention if we are to make best use of the properties we have and maximise opportunities for everybody, in every part of this country.
Empty dwellings—as distinct from second homes and holiday lets—are a challenge. I mentioned that they are a big problem in my community, although not as big a problem as second homes and holiday lets. Properties are empty for a range of reasons, some of which are perfectly understandable, others less so. Having time limits is wise, as is ensuring that homes are effectively monitored. Using fiscal measures—fines, taxation and so on—to encourage people and focus their minds to make the best use of the property they own is also wise.
I encourage Ministers to make the available tools easier to use. They include empty dwelling management orders, which basically allow local authorities to requisition an empty home and turn it into a social rented property. I have seen that work in my own community, but it is hard to do. Such orders are valuable, because a property can be brought back into usage—it effectively becomes a social rented property under the control of the local authority for seven years—but they are most useful because they act as a warning shot to other landlords and show what might happen to them if they do not make good use of their properties. The problem is that the process is lengthy, laborious, expensive and difficult. I encourage Ministers to look carefully at beefing up that existing provision by ensuring that councils can use it more readily.
We want to build more genuinely affordable homes for people, but it is just as important that we made good use of properties that already exist by turning them into formal homes. That is a no-brainer, really. As far as I am aware, empty dwelling management orders are not addressed in the Bill, but I would love it if the Government considered beefing them up and making them more easily accessible, which would draw more homes back into use for local communities.
Mr Jones
I thank the hon. Member for York Central for her kind welcome to the Committee. It sounds as though I am likely to hear a great deal about York Central—somewhere I am not a stranger to, having been there to present a high streets award to Bishy Road some years ago, in the dim and distant past when I was last a Minister in this Department.
The Government’s proposal for a second homes premium makes clear the situations in which a council may quite properly apply a premium. Those situations are, first, that a property is substantially furnished—distinguishing it from empty property dwellings that may more properly be subject to the empty homes premium—and secondly, that there must be no resident of the property. For the purposes of council tax, a resident is someone who has their sole or main residence in the dwelling. In that case, the resident would pay the council tax normally due on that dwelling as essentially it would be their main home. They would not be subject to a premium as it is their sole or main residence.
Owners of second homes may well occupy those properties during the course of the year, and how much use they make of them will vary depending on circumstances. It may be that the hon. Member’s amendment is to enable the premium to be applied only when the homeowner does not use the property for more than six months a year. If that is the case, it might be helpful to set out how councils already determine what is and is not a second home.
Councils already make judgments as to whether an individual’s property is their sole or main residence and, by default, what might be a second home. That is because they want to be satisfied that any discounts or exemptions are applied correctly and to the right property. In making a judgment on whether a property is a sole or main residence, councils will reflect on legislation and case law and take into account a range of factors including where the person is registered with a doctor, where they are registered to vote and the occupancy of the property.
Given those established processes for assessing what is a second home, I do not believe that a further restriction on the definition of properties that may be subject to a premium is needed. In addition, the assessment of whether a property is a second home will take into account a number of factors and not just the period of occupation. A reference to the number of days may well preclude treatment of the property as a second home when other factors suggest that, in effect, it is being used as a second home. The amendment could result in a reduction in the number of second homes liable for the premium.
Amendment 80 would mean that, where the property has a tenant for more than six months, the premium would not apply. Council tax is usually paid by the occupants of the property and, in cases where a tenant is occupying the property as their sole or main residence, the tenant would be liable for that council tax, not the property owner. Therefore, no premium would be due.
The premium is not aimed at properties that are let out to a tenant as they will be somebody’s sole or main residence. It is right that a second homes premium should not apply to such properties. With those clarifications, I hope the hon. Member will agree to withdraw her amendment.
Rachael Maskell
I appreciate the considerations given in this debate, and I am sure that the Minister, knowing Bishy Road, will look forward to getting to know other parts of York. He made an interesting point about the definition of a second home. Later we will look at some of those issues, which our constituents are rightly asking about, because when people do not have homes, they ask a lot of questions about housing. Questions are being asked in particular about unoccupied dwellings, which we are considering here.
The shadow Minister, my hon. Friend the Member for Nottingham North, was right to highlight the fact that many empty dwellings can be targets for antisocial behaviour. In drawing out that important point, he also set out the reason to focus on that and disincentivise it. Empty dwelling management orders can be used effectively. Newham Council is probably the local authority that has used them to best effect, by taking properties and turning them into social housing. However, the legislation is clunky and the processes are slow. I would welcome it if we looked at how to use that legislation. In the light of this debate and those to come, I beg to ask leave to withdraw the amendment. I am sure that we will return to this issue.
Amendment, by leave, withdrawn.
Tim Farron
This, too, is a welcome amendment. It is also a reminder to us all that if we are to take the radical action needed to make the best use of the properties we have in this country, so that we can underpin communities, particularly those such as mine in the Lakes and the Dales in Cumbria, we will have to be wise in ensuring that the radical measures in the Bill are actually enforced. For example, I can think of countless properties in Cumbria with a local occupancy clause on them that are currently being advertised as Airbnbs. I see that the Yorkshire Dales National Park Authority recently made great strides forward, making it clear that new properties to be built within the national park must all be for 100% permanent occupancy. I do not think the authority has the power to enforce that, but the fact that it is showing that leadership is something we should massively welcome.
There will be a whole industry built around trying to create loopholes and get around any mechanisms—those either already in the Bill or that might come into it—to control excessive second home ownership, numbers of holiday lets and the presence of unused, empty properties, so we must be savvy and wise, and prevent that. Not all of that will be about the right legislation; it will also be about the right commitment to funding.
The Government talk about funding levelling up and putting money into projects that may involve construction, and so on. That is absolutely right. It is a great use of money—and will probably cost less money—to invest better in planning departments and to make sure we have the quality and the numbers of people to get out there and police the regulations that already exist and those we hope will come in through the Bill.
There is no point having the power in theory to maintain a permanent population in our towns and villages if we cannot enforce that. At the moment, the evidence before our eyes, certainly in Cumbria, is that we are unable to ensure adequate enforcement. The Government must invest, and it would be a wise investment, as it would rescue many homes for local communities to underpin the local workforce.
Mr Jones
I thank the hon. Member for York Central for the thought that has gone in to her amendment. I am sure we all agree about the importance of ensuring that people play by the rules and provide accurate information to allow councils to issue the correct council tax bills, and also that when people do not do the right thing, councils can take the appropriate steps.
The proposed amendments would require the Secretary of State to make regulations to create new offences, punishable by a fine, in relation to the submission of occupancy information. I completely understand the objectives of such a measure. However, I assure the hon. Member that existing powers already enable councils to take appropriate action where there is evidence that the individual has taken steps to avoid payment of the premium. The Local Government Finance Act 1992 already provides powers for councils to issue penalties to a person who fails to provide information requested to identify who is liable for council tax on a dwelling, or knowingly supplies information that is inaccurate. In addition, where false representation is made dishonestly for gain, the Fraud Act 2006 may well apply.
I share the hon. Member’s concerns about ensuring that evidence of wrongdoing is tackled and that councils have appropriate powers, and I have described those that already exist. However, if we do become aware of evidence of an underlying problem that cannot be covered by the powers that I have set out, the Secretary of State does have powers to make regulations to create powers for councils to require information and to create offences for a failure to provide information or for providing false information. We have already used those powers in connection with information for local council tax support schemes. We would be able to use them again if evidence were provided that the application of the premium was being frustrated by misinformation that could not be tackled by the existing powers. I trust that, with the assurances that I have described, the hon. Member for York Central will withdraw her amendment.
Rachael Maskell
I am grateful to the Minister for setting out the measures that are already available to local authorities, in particular under the Local Government Finance Act 1992 and the Fraud Act 2006, and the opportunity to exercise those powers in relation to this set of circumstances. The advice to all people seeking to register their property is to ask for advice from the local authority to ensure that their property is within the right council tax band, and there would then be no need for such measures.
However, the hon. Member for Westmorland and Lonsdale is absolutely right when he talks about loopholes: I have no doubt that individuals will be examining the Bill for such loopholes to exploit. Our responsibility is to close loopholes as we debate the legislation, because we do not want to be back discussing the same measures, when we had the opportunity to bring about change. However, I am satisfied with what the Minister has set out today, so I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Jones
I will deal with the two amendments in turn. With amendment 83, the hon. Member for York Central’s desire is to ensure that those people who inherit property are not unduly penalised by the rapid imposition of a second homes premium. I will set out what happens with council tax liability when the owner of a property passes away and leaves it empty. Such a property is exempt from council tax as long as it remains unoccupied and until probate is granted. Following a grant of probate, a further six-month exemption can be provided, so long as the property remains unoccupied and the ownership has not been transferred. There are already strong protections in place.
Amendment 83 proposes that in addition to those protections, the property should be exempt from any potential second homes premium for a period of at least two years. A premium would only apply if the property was not someone’s sole or main residence, and if it was furnished. I understand the hon. Member for York Central’s concern. I hope that she will be reassured that the Bill includes powers for the Secretary of State to make regulations that exempt certain classes of property from application of the premium. We will reflect on the points that she made and consider whether to consult on potential exemptions to the premium.
Amendment 84 appears to suggest that someone purchasing a second home that requires some improvement should be able to benefit from an exemption for at least one year. While I fully support homeowners investing in their main or second homes by renovating and improving them, I am unclear as to why such work on second homes should benefit from an exemption to the premium. The premium would only apply if a property was furnished. If it required substantial rebuilding work, it seems unlikely that the property would be furnished. In that case, a second homes premium would not be due in any case since the property would not meet the definition in the Bill.
Rachael Maskell
I am grateful to the Minister for the points he is making. It is possible to be in a situation where part of the property was furnished because that is not the area where dilapidation has occurred, but part of it is unfurnished because it needs, for example, a new roof or an extension. There is a situation where there is furnishing, but the property is still unoccupied due to renovation work.
Mr Jones
The hon. Lady raises an interesting point. It seems clear to me that that property would be partly furnished, but not be occupied by the owner. It would therefore still constitute a second home—that is the argument I am making.
On amendment 84, the hon. Lady gave the example of the roof not being on a property. If a property were not in a fit state for habitation and required substantial work to bring it into a reasonable state, it is quite possible that the Valuation Office Agency would consider a request to remove the property from the council tax list, thereby removing its liability for council tax.
I hope I have been able to clarify my understanding of amendment 84, and I hope that with my reassurances the hon. Lady will withdraw both her amendments.
Rachael Maskell
I welcome the debate we have just had. For the record, I think it is important that we take forward discussions around these issues and understand the challenges our constituents in sensitive circumstances are facing. The Minister’s response on the powers that local authorities already have until probate is granted was helpful and gives us the opportunity to reflect on that issue. It would be my sincere hope that local authorities will be able to work with families who are bereaved to give them the support they need to dispose of a property in a timely way.
On the dilapidation of properties, the hon. Member for Westmorland and Lonsdale was absolutely right to highlight some of the workforce challenges currently facing the construction industry. We know the Government are making many demands on that depleted workforce, which is taking time to recover and has many challenges pressing down on it. We simply do not have the labour supply to address the multiple demands being placed on construction and maintenance. Even the timescales I suggested in the amendment could be challenged due to that demand on the industry.
The Minister’s comments on the role the Valuation Office Agency can play in removing a property from the council tax list during a period of renovation were quite helpful. I am sure they will be well heard by people in those circumstances, but I think I am perhaps just scarred from growing up in a property where we had a tarpaulin roof for many a winter, and living under it posed real challenges. The suggestions the Minister has made and the direction he has shown through his comments to the Committee have been helpful. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Jones
Clause 73 contains a power for councils to introduce a council tax premium on second homes. We recognise that second homes can benefit local economies and the tourism sector. Second homes can also provide flexibility to enable people to work in and contribute to the local community, while being able to return to a family home in another part of the country on a regular basis. However, the Government understand the concerns that large numbers of second homes, particularly where they are concentrated in a small area, can have a negative effect on the vitality and viability of local communities.
A large number of second homes impacts on the size of the permanent population who help to generate the demand needed for their local services the year round. It creates a hollowing-out effect. The local schools have insufficient pupils to remain open. The local buses do not have enough passengers to maintain the service. The village pubs and post offices do not have the customers to sustain them through the year. These are all arguments that many Members are familiar with and have made to the Government.
The risk is clear that, without action, some communities will become increasingly unviable as local services close due to a lack of a permanent year-round population. The Government are not prepared to stand by and watch that happen. We are investing £11.5 billion in the affordable homes programme, which will deliver up to 180,000 affordable homes.
We have introduced a higher level of stamp duty on the purchase of second homes. The clause supports that by providing new powers for councils to apply a premium of up to 100% extra council tax on second homes. The use of that premium will be discretionary, and it will be for councils to exercise their own judgment as to whether to apply a premium and at what level—up to a maximum of 100%. The premium will provide councils with the flexibility to access additional revenue. It will be for councils to decide how best to use this funding. For example, councils may choose to support the local shop or village pub, or they may invest it in new affordable housing for local families, so they can help maintain the lifeblood of their community.
We are clear that second home owners should be given sufficient notice of the introduction of a premium. The clause will require each council introducing a premium to have a minimum period of 12 months between making its first determination and the financial year in which it takes effect. That will give second home owners plenty of time to make plans for how to respond to the forthcoming premium. Of course, there may be circumstances where it is not appropriate to apply a premium. Proposed new section 11D(1) provides a power for the Secretary of State to make regulations prescribing categories of dwelling in relation to which the council tax premium on second homes cannot be charged. We will consult on such categories.
Proposed new section 11D(3) includes a power for the Secretary of State to vary the maximum council tax premium that can be charged on second homes. It is clearly sensible to maintain a degree of flexibility for the future. If circumstances suggest that consideration should be given to adjusting the level, any consequent regulations will be made through the affirmative resolution procedure and will require approval of this House. The power contained in the clause will enable every council to decide whether to apply a premium at a level that is suitable for their own circumstances. It will enable them to generate additional revenue, and they will be able to use it to mitigate the impact of high levels of second homes in their areas. I commend the clause to the Committee.
Alex Norris
We have covered much of the debate through the very good amendments, so I do not intend to detain the Committee for long, but I want to clarify one point with the Minister. As he has said, the clause inserts proposed new sections 11C and 11D in the Local Government Finance Act 1992. Proposed new section 11D(1) states:
“The Secretary of State may by regulations prescribe one or more classes of dwelling in relation to which a billing authority may not make a determination under section 11C.”
It basically says that the powers we have debated and all the very good reasons for them actually do not apply if the Secretary of State decides they do not want them to. That is a concern we have had in previous debates: this is localism, but only where local communities get the answer right.
It is welcome that the Minister has said the measures will be consulted on before being used, but the Government must have a sense of what properties they have in mind, otherwise there would not be much of a case to reserve the power. I am keen to know how that power will be used or certainly what the Minister had in mind when asking for it. I do not think it is enough for us to detain the Committee because we think the clause is important in general, but that specific point needs to be addressed. There is not much of a case for the provision if it is a power that can only be filled out by consultation. I wonder then: why ask for it at all?
Mr Jones
I nearly thought that that the hon. Member for Westmorland and Lonsdale was going to cross the Floor, given his glowing praise of my analysis. I understand his concerns. That is why we have, over time, put in place a number of policies, including increased stamp duty for purchases of second dwellings, and why the Bill introduces a council tax premium. Clearly, there is a wider picture, and we understand that picture. It is a complex issue and we constantly look at it.
The hon. Member for Nottingham North is concerned about the Secretary of State’s involvement. I do not want to pre-empt the result of the consultation, but it might include the points that he has made about probate. I expect the consultation to take place this autumn, and I hope he will look carefully at it and respond to it.
Question put and agreed to.
Clause 73 accordingly ordered to stand part of the Bill.
Clause 74
Alteration of street names: England
Rachael Maskell
I beg to move amendment 85, in clause 74, page 83, line 23, at end insert—
“and it has considered the historical, cultural or archaeological significance of a name change”.
This amendment requires cultural, historical and archaeological factors to be considered before making a name change.
We are considering many things in the Bill, and we come now to a clause that deals with street names. Needless to say, the issue of street names is one of much interest not only to the population of York at large but to archaeologists and historians, whom I meet regularly in our city. It is probably obvious why that is the case: we are clearly a proud city and there is much history to be debated.
A lot of streets in York have changed their name over time. A case could be made to change some of them back to their original names. In York, the streets are named gates, the gates are called bars, and the bars are called pubs. Our language is slightly different from that used in other places. Many of the names have been changed for good, sensitive reasons. What was Beggargate, for instance, is now called Nunnery Lane, and some names were far worse. Our approach to the naming of streets evolves. We have many layers of history, and there are areas of Roman, Viking and medieval significance in places such as York.
Names could be changed at the stroke of a vote, but it is important to put in place checks and balances, including a consultation process and engagement with the wider community stakeholders and residents, to ensure that streets have appropriate names.
There are examples of those who were once heroes but are now fallen individuals. We may have seen a darker side of them or of our colonial past. The street name can tell a different story and therefore the changing of a name is not only a process but can be a historical or political act in itself. It may be desirable, but to understand the past is important. Therefore, to explain the name rather than change it may be the action to take to reflect that on a newer estate. Perhaps we will look at the industrial past of an area or some event or place of significance, or perhaps point to a new age and opportunity.
There are countless reasons why a street name vote may be sought. However, recognising the significance of a name or a former name could help define a street or an area, as well as the historical, cultural or archaeological significance of a place. My amendment will simply ensure that the history and archaeological understanding of a place is not lost. I am seeking assurances from the Minister that that understanding will form part of a consultation around the name change and the process set out in clause 74.
Alex Norris
This is the third time in part 2 that we have addressed names. We addressed alternative names for Mayors and alternative names for combined county authorities. My view on street names is the same as in those cases. My experience in Nottingham is that if we seek to do anything daft with names, the public pretty soon sniff it out and have a good way of correcting it, whether at the ballot box or through more informal means. I have a lot of confidence in our communities to make the right and sensible decisions given the right framework in law.
We are interested in the clause. I may make some more arguments in the next amendments. It is important that the important historical and archaeological factors are not lost. This is probably a de minimis provision and only asks for consideration. It is no greater fetter than that. I hope the Minister is minded to that.
Mr Jones
The amendment would add additional criteria for local authorities when considering the renaming of a street. I understand the importance of history, archaeology and culture in this process. However, the Government strongly believe that local people should have the final say on changes affecting street names. We would expect those local views to reflect the historical or cultural associations of the names concerned, and the importance that communities place on them. It is not clear that a freestanding additional requirement to consider heritage is necessary, or how it would work. It could, for example, make it harder to secure name changes that have local support but where new considerations, such as the need to honour a local person or event, take precedence over an archaeological interest. For instance, some Olympians had streets named after them following the 2012 Olympics.
We recently consulted on the prospective secondary legislation and guidance to deliver those changes. Respondents were overwhelmingly positive about our proposals, with 91% agreeing that the regulations and statutory guidance should set out how local authorities should seek consent when changing a street name. In view of that support, and the fact that heritage and cultural significance are matters that communities will weigh up, I hope the hon. Member will withdraw her amendment.
Rachael Maskell
I thank the Minister for his comments. My hon. Friend the Member for Nottingham North is right to highlight how our residents will do the right thing and we can depend on people to make the right choices, as I am sure they will in York. It is important to hear the Minister’s comment on the record that he will expect residents to reflect on the historical and cultural aspects of their streets and communities. People wanting to honour people or events of note in their communities will have the opportunity.
It is also important to recognise the place-making ability of a vicinity—for example, if there are quarters in a place, certainly in places as historical as York—to ensure that there is an ambience, an identity, given to a place. That could impact on the tourist aspect and the economic opportunity of a place, as well as the name in itself. I am sure there will always be streets in which to honour local individuals and at the same time balance the cultural sensitivities of an area. I found the Minister’s remarks helpful; I put that on the record. I think it will help with the next discussion, so I am happy to beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Rachael Maskell
I support the amendments, particularly in the light of my withdrawing amendment 85. I believe that what sits at the heart of the clause is proper consultation with community stakeholders, whether they are residents, businesses or wider stakeholders, for instance Historic England, or the city archaeologist in the example I cited. The process of consultation is of key significance, and I am grateful to my hon. Friend for Nottingham North for setting out in such detail the type of proper consultation that should be embarked on.
I think we can all recall the naming process of the research boat Boaty McBoatface, and there has certainly been learning from that experience about what could happen with a renaming process. I speak as someone who has a street in my constituency called Whip-Ma-Whop-Ma-Gate, which means neither one thing nor the other—in itself curious. Names can be curious, but a rigorous consultation that can flush out the issues could avoid those significant pieces of amusement, ensure that the proper voices are heard and confirm a sensible place name. A name is not just a name; it is an identity. We all think about the addresses we have lived at, and the identity they have given us, so it is important that people have ownership. A thorough consultation by a good local authority is what my hon. Friend seeks through his amendment.
On the consultation exercise, although the digitalisation of processes is welcome, I emphasise how important it is that signs are still placed on street corners, as proposed in amendment 71. People in the community need to know what is happening. It is not an either/or; it is a both. People should be able to engage with a physical notice. We all see signs up across our constituencies and stop to read them, because they are an important indicator of how people can get involved. I urge the Government to consider the breadth of that opportunity.
Finally, I highlight my hon. Friend’s points about referendums. We know that they have costs attached, and a referendum on a street name would place an additional cost on a local authority at a time when resources are thin. Given the time and complexity involved, is that really the right focus for the Government, when a consultation could do the job by utilising the existing democratic process through elected councillors? I trust that the Minister will reflect on the realities of the clause when alternative routes, as my hon. Friend set out, could strengthen the process and enable the right outcome.
Mr Jones
The Government are strongly of the belief that people should have the final say on the character of the area in which they live. That must include protecting their local heritage. In this context, I agree with the underlying intent behind the amendments. There should be clear processes for making sure that local views on proposed street name changes are taken into account. It is, however, important that we do this in the right way, so that the processes are robust, but can be adjusted if required.
The Government recently consulted on the prospective secondary legislation and guidance to deliver the reform to street naming set out in the Bill. Respondents were overwhelmingly in favour of the proposals set out in the consultation, with 91% agreeing that regulations or statutory guidance should set out how local authorities should seek consent when changing a street name.
The amendments would remove the Government’s ability to do that and replace it with less specific requirements than we intend. I reassure the hon. Member for Nottingham North that we will be setting out clear, transparent and robust arrangements in secondary legislation. As I said, a significant number of respondents to the consultation want a proper say, and we can understand why. If the name of a residential street was changed, for example, individuals in any particular property would face significant costs from amending the title of their property or the addresses on their car logbook, bank accounts, utility bills, driving licence, and a number of other things that we could all reel off. Such things are important considerations, and that is why we are setting out down our chosen path.
By setting out the detail for how consultation on street naming will work in regulations and guidance, we will maintain flexibility to update processes in line with changes in circumstances, such as new technology. With that explanation, and those assurances, I hope the hon. Member will be willing to withdraw the amendment.
Alex Norris
I am grateful for colleagues’ contributions to the debate. My hon. Friend the Member for York Central brought up the good example of Boaty McBoatface. That shows, as always, the brilliant sense of humour of the British people—I have an awful lot of confidence in that—but also how in such cases it is rarely the answer that is daft; perhaps the question was less wise. The key thing, which goes to the point of the clause, is that people with a stake ought to have a say. When people have a stake in things, they take them seriously. I am certain that there will be no Boaty McBoatface Avenues. People would much more likely take a slightly different and perhaps more moderated view for their own street. That is why it is important that, as the Minister said, local questions about the character of a community are addressed.
I agree with the Minister that local residents should have the final say on the character of an area, but that can work in a number of different ways. We have a representative democracy, and change in the character of an area could be about a decision to cut back a tree, or to put bins in collective storage, leave them in the back ginnel or put them outside the house. Every day, there is a combination of hundreds of small actions that are seemingly unimportant until someone gets excited about them, but in aggregate they are substantial to people’s lives. We do not put them to daily referendums with turnout thresholds—we could not operate like that—so we have representatives who are accountable to their communities, and if they do not seem to be doing their job, they are changed for others.
I am not sure that the Minister’s stated aim is measured by what is in the Bill. He said that amendments 70 to 72 would weaken the Government’s ability to meet what was wanted in the consultation. I am afraid that I do not accept that, because 91% of people wanted to have a proper say and to have that set out. I completely agree with them—I am surprised that 9% did not agree—that the worst situation would be one where a local authority could make merely the narrowest compliance effort and not really listen. There is not much evidence of risk there. Again, the Minister could not make the case as to why, in general, there is a problem to be solved—and, absent the impact assessment, there is no case for that. The experts in the field say that there is no problem to be solved. I hope that he will reflect on that. My amendments would in no way restrict the ability to ensure that those 91% of people got what they wanted: a proper say. However, the Minister has gone a step further in prescribing how that looks, which is a disproportionate approach that will not serve.
The Minister has committed to further consultation and engagement. I hope that he will engage with colleagues in the Local Government Association and listen to them about the practical realities. If he has not already had a chance to do so, he should engage with their research about what is really going on and how we might achieve the aims without putting something onerous in the Bill. They will be willing to have those conversations.
I hope that this might be an ongoing part of the conversation as we move through the Bill’s stages, and that the Minister will at least carry this issue away and find a bit more detail. We will not detain the Committee by dividing it, so I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss that schedule 5 be the Fifth schedule to the Bill.
Mr Jones
The Government are committed to giving a voice to residents over the naming of their street, and we are strongly of the belief that people should have the final say on the character of the area in which they live, which must include protecting their local heritage. Although street names play a fundamental part in representing the rich history of a neighbourhood, the relevant legislation has not been fundamentally reviewed since the early part of the 20th century. The matter is spread over three Acts, rendering the process of changing street names not only opaque but obsolete. I believe it should be uncontentious, if nothing else, to say that a lot has changed since 1907, and therefore a modern framework will be of benefit to local authorities.
Alex Norris
I will not repeat any of the arguments I have made. We agree on the substance of allowing people to decide their street name, but we are troubled by the process and its rigidity. I hope the Minister will keep reflecting on that in the following stages.
I am labouring a point I made the last time I rose, but this is the last time I will make it today—I promise, Mr Hollobone. This is the end of part 2 of the Bill. The Minister made a welcome commitment that we will see the impact assessment before the end of Bill Committee, but I gently say that it will not be much use for parts 1 and 2. Frankly, there be no impact on part 1, because that was a plan to make a plan, but part 2 will make combined county authorities, which presumably are supposed to be quite impactful. It is a problem that we have not been able to argue those in the round.
The next part of the Bill, which is on planning, includes really significant decisions that will shape communities. I am not sure that colleagues on the Government Benches, never mind the Opposition Benches, should be comfortable making those decisions without an impact assessment. I hope to prevail on the Minister that if the impact assessment is not going to appear before part 3 of the Bill today, we may at least have it before the summer recess so that we can have it for our discussion about the remaining clauses.
Mr Jones
I thank the hon. Member for Nottingham North for his comments, which I will look at carefully and consider, and see what more can be done to expedite the impact assessment.
Question put and agreed to.
Clause 74 accordingly ordered to stand part of the Bill.
Schedule 5 agreed to.
Ordered, That further consideration be now adjourned. —(Gareth Johnson.)