General Practice: Large Housing Developments

Matthew Pennycook Excerpts

Tuesday 29th March 2022 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to serve with you in the Chair, Mr Dowd.

I genuinely think that this has been a valuable debate about an important issue. I congratulate the hon. Member for South West Bedfordshire (Andrew Selous) on securing it and on the typically clear and powerful remarks he made in opening it. He has been raising concerns about this issue for a considerable period, and the fact that he felt compelled to secure this debate today only serves, I am afraid to say, to highlight the startling lack of progress on the part of the Government in addressing those concerns.

The concerns are not the hon. Gentleman’s alone; indeed, this issue is not confined to his corner of Bedfordshire. His concerns are widely shared across the House. As the attendance for today’s debate makes clear, they are keenly felt among Government Members in particular. I thank all the Members who have contributed this morning.

Having heard today’s contributions, we can only hope that the Minister will at least be convinced of the need to go away and revisit the fundamental aspects of a planning system that routinely fails to produce the necessary social infrastructure for new communities to thrive. We have heard lots of complaints and points of contention today, but it is within the Government’s gift to take action on many of the issues that have been raised. I hope that the Minister will go away with renewed vigour to address them.

The focus of this morning’s debate has been on the provision of primary care services for large-scale housing developments. I add my praise to the general expressions of support that have been conveyed today to GPs and GP practice staff. That we face significant challenges as a country when it comes to primary care capacity is not in dispute. The reasons for that shortage are complex, and when it comes to problems such as the recruitment and retention of enough GPs to accommodate rising patient demand or how local health services plan for population growth in service provision, those are obviously the responsibility of the Department of Health and Social Care. However, there is no question in my mind but that the planning system is exacerbating the crisis in primary care, particularly in areas experiencing significant development, by failing to deliver new facilities in places where the needs of large-scale new communities cannot be met simply by the expansion of existing sites.

The particular concern of the hon. Member for South West Bedfordshire and others who have spoken this morning is general practice capacity, but the national failure to ensure that all new large-scale housing developments have adequate primary care provision is mirrored in other forms of infrastructure, whether that be school places or transport, as the hon. Members for Wantage (David Johnston), for North East Bedfordshire (Richard Fuller), for Aylesbury (Rob Butler) and others have remarked upon. Having that infrastructure is absolutely key to gaining local consent, which is an essential part of the planning process.

I do not think that this issue is primarily one of housing supply. There is a housing crisis and we need to address it, but the crux of this issue is the need for up-front infrastructure investment before or at the point that a large-scale residential development completes and new residents move in. However, the planning system as it currently operates—and I think Conservative Members will accept this—is simply not geared up to facilitate that infrastructure-first approach on all major sites; all too often, no one has overall responsibility for place-making.

The importance of master developers was clearly identified in the Letwin review: they strategically assemble land, secure the necessary permissions, co-ordinate the delivery of the infrastructure and de-risk the development process as a matter of course. Without those developers, the system incentivises volume house builders to build often poor-quality housing in inappropriate and often entirely car-dependent locations, in a way that frequently leads to intractable disputes about how core infrastructure and services will be delivered and who will pay for them. Ultimately, the fact that the planning system lacks many of the features necessary to support effective large-scale housing growth stems from the failure of central Government to take a clear strategic role in the delivery of new large-scale communities.

The hon. Member for South West Bedfordshire and others drew attention to the inadequacies of the housing infrastructure fund, and they were right to do so. The fund can and does support the delivery of infrastructure on sites where viability is an issue and address the need for up-front infrastructure and the problem of risk on a limited number of sites. However, because it distributes funding on a competitive, ad hoc basis, it is not a general solution for the infrastructure needs of all large-scale housing developments.

Homes England could play a far larger role in providing local authorities with support and assisting local partners directly with delivery, land acquisition and the master developer role. It has extensive legal powers that allow it to take on that role and obtain land by means of compulsory purchase. It could be the instrument the Government use to support large-scale growth with the necessary social and transport infrastructure. However, that would depend on the Government having a strategy; at present, I am afraid, they do not. Although there are exceptions, in general terms it is simply a fact that central Government in England do not play a clear strategic role in site identification or the delivery of new large-scale communities.

The national infrastructure strategy sets out a range of investment priorities, but it does not provide a framework that makes clear which areas are preferred for long-term priority housing growth and their relationship to infrastructure investment. National planning policy on delivering sustainable, large-scale housing developments is incredibly vague and provides little in the way of encouragement or guidance to local authorities contemplating meeting local housing need in key strategic locations.

The Conservative Administration of the right hon. Member for Maidenhead (Mrs May) changed the law in 2018 to encourage locally led development corporations to act as master developers. However, to the best of my knowledge—the Minister may correct me—none has yet been designated.

In many ways, the root cause of the infrastructure challenges on sites such as those that have been mentioned today is the issue of land value capture. Aside from direct Government grant, development of those sites is reliant on developer contributions in the form of section 106 or the community infrastructure levy to meet essential infrastructure needs. However, those contributions are often not sufficient to provide all the infrastructure needed on those sites. I am surprised that this has not been mentioned today, but that is at least partly a direct consequence of the impact of viability rules set out in the 2012 national planning policy framework, which allow developers to game the system and drive down section 106 contributions. Although in some cases local authorities could be more robust with developers, the national planning policy framework ties their hands behind their backs in terms of what they can extract as public gains under section 106.

The Minister will no doubt point to the Government’s proposals, mentioned most recently in the levelling-up White Paper, to introduce a new infrastructure levy. However, at present, we have no idea how it would apply to large-scale development or deal with areas of low demand, how much it would yield or the date by which we can expect it to be implemented. There is an immediate deficit, as the hon. Member for South West Bedfordshire said in his opening remarks.

Given how heavily the Government appear to be leaning on the new levy as a means to secure affordable housing and the infrastructure communities need, perhaps the Minister might give us a sense of what the new levy will look like, what form it will take and when it will be brought before the House for consideration. Indeed, he might even go so far as to give Members a straight answer to the more fundamental question of whether the Government still intend to legislate for a reform of the planning system in this Parliament.

To conclude, this debate has highlighted a problem that is not confined to a handful of sites or to particular parts of England, but is the inevitable outcome of the current planning system, which does not provide the necessary social and transport infrastructure on major sites as a matter of course. Addressing that problem requires a fundamental change of approach on the part of the Government, not just tinkering around the edges with individual infrastructure funding streams.

Real benefits can be gained if the Department is willing to grapple seriously with the problem, not only in delivering a marked increase in housing supply but in terms of the quality and sustainability of the new communities that could be created. The alternative is that we continue to see more poor-quality housing in inappropriate locations without the necessary infrastructure that residents need to flourish. Members across the House do not want to see that outcome, and I suspect the Minister does not want to see it either, but do the Government have the political will to re-examine the flawed system that they are currently presiding over?

--- Later in debate ---

[Stuart Andrew]

I thank my right hon. Friend for asking such a specific question. I do not have those figures to hand, but I will ensure that I get them to him. He makes a very valid point, and I will come on to some of the things that we are looking at to address exactly his points.

I was talking about local plans, which provide certainty for communities, businesses and developers. An effective and up-to-date plan is essential not only to meet an area’s housing requirements, but to create well-designed and attractive places to live, with the services that people need on their doorstep. We are already helping councils to put in place such robust and up-to-date plans. That includes encouraging visits from the Planning Inspectorate and specialist advice from the Planning Advisory Service to provide a range of specialist planning advice to councils throughout England.

Plans should be shaped by early, proportionate and effective engagement between plan makers and communities, local organisations, businesses, infrastructure providers and operators, and statutory consultees. They should seek to meet the development needs of their area, and that includes facilities that will be needed across health, schools and other areas. We recognise, however, that more work is needed. We want all infrastructure providers, including healthcare providers, to be much more engaged in the plan making right from the outset, because that is clearly not happening enough, as we have heard in the evidence of colleagues today. We will come forward on how we will do that as part of our reforms in due course.

Local plans are not the only means of improving services and building that vital infrastructure. There are clear regulatory frameworks for local authorities and developers to follow. The national planning policy framework, for example, states that local plans should aim for sustainable development, which means that new schools, hospitals and local services such as GP practices should be factored in from the outset. Proposed development should be shaped by effective engagement with the local community, so that planners and developers know what is really needed. In some areas, it might be new roads, bridges or bus depots, but in others it will be new nurseries or GP surgeries. That engagement should extend to relevant health bodies too, such as NHS trusts and the clinical commissioning groups, to ensure that any development helps rather than hinders local strategies to improve health and wellbeing.

Local healthwatch organisations have a role to play. They have a firm grasp on the concerns of people who use health and social care services. My Department strongly encourages planning authorities to consult them when new homes are being built, so that they can raise those all-important questions on the number of GPs needed. Equally, to some extent local plans should head some of that off before houses are actually built. I have, however, listened to what colleagues have said—I hear it loud and clear. Put simply, if a GP surgery is right in the centre of town and a new development is on the outskirts, it is obviously better to ensure that a new surgery is built closer to the homes it will serve.

We have touched on some of the funding. Hon. Members are aware that councils obtain contributions through a community infrastructure levy on new development and by negotiating section 106 planning obligations with a developer. That helps to create funding not just for housing, but to address local infrastructure needs. In the constituency of my hon. Friend the Member for South West Bedfordshire, about £5.5m has been allocated to healthcare provision through such funding, and that should be spent on helping to provide GP practices.

I recognise, however, that there is an issue here about which we need to do more. We hope that part of the effective planning reforms that we are to introduce will answer some of that. Our ambition has always been to simplify the system and to ensure that development becomes synonymous with improved services, and healthier and happier neighbourhoods. That is why we are exploring the introduction of a new infrastructure levy to replace the existing system of developer contributions.

At the moment, we plan for that new levy to be payable on completion of development. That will replace the negotiation and renegotiation that we keep seeing happen. The new levy will not be negotiable and will maximise land value, so we get more for local communities. It will also bring much greater certainty on costs, on factoring expenditure into the price paid for land and, in turn, on delivering more vital infrastructure. Under our proposals, local authorities would be allowed to borrow against infrastructure levy revenues so that they could bring forward vital improvements to services, including expanding GP capacity, before the first spade of a new development even hits the ground.

That said, I recognise that we need to test the policy. Many issues have been raised. I cannot at this moment commit my right hon. Friend the Prime Minister to a meeting, but I will raise with him the suggestions and comments made today, and I will meet my colleagues in the Department of Health and Social Care to raise the points made, to ensure that we are prioritising, gearing up and keeping focus, so that we can see what more can be done, and so that we do not miss the opportunity provided by the new fund to get the necessary infrastructure.

[Matthew Pennycook]

The Minister may not be able to answer, but may I tempt him to name the legislative vehicle by which the new infrastructure levy will be introduced?

[Stuart Andrew]

The hon. Member will not have to wait too long before hearing which vehicle will be used; I hope it will be in a couple of weeks.

I want to touch on the issue of transparency. We have introduced infrastructure funding statements, which give people the opportunity to see what councils have done, but we can and must do more to give confidence to residents. That brings me on to community engagement.

As hon. Members will know, changes to the levy system are by no means the only improvement we want to bring to our planning system. One of the reasons why new development has not always been matched with tangible improvements to schools, nurseries or GP practices is that it has not always been easy for local residents to scrutinise applications or to make their voices heard. We need a faster, more responsive planning system, fit for the modern age. That means embracing digital technology and encouraging more residents to voice their views on what is being built in their community, and where.

I know that some of our previous proposals generated significant debate, to say the least, and it is therefore right that we paused for thought and took stock of different voices from across the planning sector and beyond, but on this ambition we are determined to make headway because we believe that it will result in more real-world improvements to services, which hon. Members all want to see.

My ministerial colleagues and I hope to announce a way forward soon so that the planning system supports our wider mission to level up communities in Bedfordshire and right across the country. The key point is that, at its heart, communities must be involved. Communities and neighbourhoods should be shaping the places in which they live, so that we have beautiful places with the necessary infrastructure and a democratic system that also considers environmental improvements. Neighbourhoods should have a big say in all of it.

Colleagues raised a number of other points. My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) never misses an opportunity to raise housing targets with me. She knows from our conversations and meetings that I understand the issue. If she will allow me, I will come back to her in due course. My hon. Friend the Member for Wantage (David Johnston) has also been quick off the mark to come to see me to discuss the issues in his constituency. Again, I understand them.

My hon. Friend the Member for Loughborough talked, quite rightly, about wanting to support new housing but that we should be building places where people want to live, not just huge dormitory estates. There has to be a sense of community. My hon. Friend the Member for North East Bedfordshire (Richard Fuller) asked me to double up with the Secretary of State after his report—I will make sure that I do that for him.

I will see my hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) later today to discuss the issue of second homes and its impact on those working in the public sector. I hope we will have a constructive meeting. My hon. Friend the Member for Keighley (Robbie Moore) talked about towns I know well. My mother-in-law lives in Addingham, so I will get an earful from her if I do not get this right.

My hon. Friend the Member for Aylesbury (Rob Butler) talked rightly about the stark increase—from 16,000 to 26,000—in the number of patients at his surgery. That is absolutely an area we need to look at carefully. He also talked about all of the different funds that are available. I think that that is one of the most confusing issues, and it is something that I would like to address as we go forward.

The Opposition spokesman, the hon. Member for Greenwich and Woolwich talked about the new levy. We are currently working with local authorities, providers and industry to ensure that the levy works for everybody.

In closing, I reiterate that I have heard loud and clear the concerns of hon. Members. The frustration of our constituents when large-scale new developments are green lit and local services become increasingly congested is palpable for us all. I hope I have clearly set out what we have already done to address that, through local plans, NPPF and section 106 agreements. I have also reiterated that we intend to go much further, by creating a more streamlined, smoother planning system, which levels up infrastructure and local services in every part of the country. I say to my hon. Friends that I am committed to working with all of them to ensure that we can make that vision a reality.