Levelling-up and Regeneration Bill (Twenty Fourth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 18th October 2022 Public Bill Committees

[Matthew Pennycook]

We are extremely concerned about the implications of this clause, and the explanation just given by the Minister does not reassure me one bit. Clause 187 is a placeholder clause that allows for a substantive clause to be introduced via Government amendment at a later stage in the Bill’s passage. Its effect is to disregard the full repeal of the Vagrancy Act 1824 that the House approved via amendments to the Police, Crime, Sentencing and Courts Act 2022.

There are two fundamental problems with the clause. First, in approving section 81 of the 2022 Act, the House made it clear that it wished the Vagrancy Act to be repealed in full, so that homelessness would no longer be criminalised. It did not seek to qualify the effect of that measure by stipulating that the repeal of the 1824 Act should be delayed until replacement legislation was brought forward, which appears to be the Government’s intention in inserting this placeholder clause in the Bill. The House voted purely and simply for repeal in full.

Secondly, precisely because clause 187 is a placeholder clause, we have absolutely no idea as we debate it today what the “suitable replacement legislation” will look like. It could include positive measures that featured in the consultation that the Minister mentioned, which was launched in April, such as multi-agency outreach, but there is a clear risk that any replacement regime introduced via the powers provided for by this clause could once again criminalise people who are begging or sleeping rough. We take the view that replacement legislation is not required at all. Existing legislation—including the Anti-social Behaviour Act 2003, the Modern Slavery Act 2015 and the Fraud Act 2006—already provides the police with sufficient powers to tackle harmful types of begging, harassment, antisocial behaviour and exploitative activity. By expressly allowing for the reintroduction of criminal offences or civil penalties for conduct that is the same or similar to that under sections 3 and 4 of the Vagrancy Act, clause 187 enables the effective re-criminalisation of homelessness and rough sleeping, with all the damaging and counterproductive implications that that entails.

As the Minister has recognised, the Vagrancy Act is an embarrassing remnant of Georgian England’s approach to the poor and destitute. It deserves to be consigned to the dustbin of history in its entirety, rather than being surreptitiously restored in a modern form to enable the criminalisation of rough sleeping or passive begging. As I said, the House made its views on this matter clear during the passage of the Police, Crime, Sentencing and Courts Act, but if the Minister is in any doubt about the strength of feeling on this issue, she need only look at the long list of names of Members from her own Benches who have signed amendment 1, in the name of the hon. Member for Cities of London and Westminster (Nickie Aiken).

We do not intend to oppose clause 187 today, but if the Government do not voluntarily withdraw it from the Bill, we will work with Members from across the House to ensure that it is removed on Report. I hope that the Minister can give some indication today that that will not be necessary, and that the Government will reconsider their position.

[Tim Farron]

Likewise, I am appalled and deeply troubled by this provision. Clause 187 feels gratuitous—unnecessary. As we have heard, plenty of provisions already exist to allow the police to deal with antisocial behaviour that could be associated with rough sleeping and people who are begging. This clause feels unnecessary and counterproductive. Above all, it feels like an act of bad faith, given what the Government have committed to doing—both from the Treasury Bench in the Commons and from the Dispatch Box in the other place.

Tomorrow, we will either celebrate or mourn the 100th anniversary of the last Liberal leaving No. 10 —notwithstanding the current sleeper agent, obviously. The legislation that is brought back to life by this clause was nearly 100 years old, and out of date, back then, but even saying that is not going far enough, because if something is morally wrong, it is morally wrong no matter how old it is—whether it is 200, 100 or new, and whether it is from Georgian England, Lloyd George, or the current era. It is morally wrong to criminalise people for being homeless. It is pointless as well.

I have spent a number of nights over the years raising money for our local homelessness charity, Manna House in Kendal. We do a night sleeping rough in January up at Kendal castle. Some of the people who work with Manna House have slept rough in reality—in many cases for years. As we went through the difficulties of one night out in the open, the casual way they would speak about their experience on the street I found more chilling than the night air. It was not just the poverty, the hardship, the hunger and the cold; it was the sense of shame, the sense of not being fully human. A Crisis poll of people who are street homeless found that 56% felt that laws that criminalise them added to that sense of shame.

People who are in desperate housing need, and are on the street, need more than just a roof over their head—though they need that. They need sustained help in rebuildibng their life. Often there are addiction and other mental health issues that partner their homelessness, and may even have fuelled it. The last thing that they need is to be criminalised. There is no value to society in doing so. All that happens is that they are displaced to somewhere else. Instead, our society should be compelled to do something to meet their needs.

Levelling-up and Regeneration Bill (Twenty Second sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Thursday 13th October 2022 Public Bill Committees

[Matthew Pennycook]

In our exchanges on clauses 131 and 132, we debated the public legitimacy of the new locally led development corporations. We believe the same issue arises in relation to clause 138, which concerns the membership of urban development corporations and new town development corporations. The clause amends schedule 26 of the Local Government, Planning and Land Act 1980 and section 3 of the New Towns Act 1981 to remove the previous board member cap and the need to set out board membership numbers in an order in relation to both types of corporations, bringing them in line with mayoral development corporations and locally led new town development corporations, to which no cap applies. We believe that is a sensible measure, and do not object to it.

However, we believe there is a more fundamental issue with development corporation board membership. As part of a locally led proposal, a local authority or authorities must be identified for designation as the oversight authority for the development corporation in question, but when it comes to a corporation’s appointed board and its deliberations, there are no safeguards in the Bill to ensure that the voices of residents are heard. If new locally led development corporations are to be a success, we believe it is important that they have robust governance arrangements, and that those arrangements enjoy public trust and confidence. In our view, the obvious means of ensuring that is to enable an element of public participation in them.

Amendments 183 and 184 seek to probe the Government on this important issue by providing for the inclusion of at least three community members representing a local qualifying body, as defined in proposed new paragraph 1A(5) to schedule 26 to the Local Government, Planning and Land Act and proposed new subsection (2ZD) of section 3 of the New Towns Act, which appear in the amendments. We believe the inclusion of representative members of a local community on the board of a locally led development corporation would strengthen those corporations’ legitimacy in the eyes of the public and help ensure that the significant planning powers those corporations will exercise enjoy a degree—albeit a limited degree—of local community oversight. I look forward to the Minister’s response.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Mrs Murray, it is a genuine pleasure to serve under your guidance today. I offer a huge welcome to the two new Ministers. I am very pleased to see them in their places, and they have made a good start so far.

Just a quick word from me on this: there is a real danger when the Government seek to do good things. With development corporations, the ability to regenerate communities and create economic benefit and equality is certainly an aim and a likely outcome of doing it properly. The danger is that we establish a bunch of quangos that people feel detached from, with the sense that this is something being done to their community rather than them being part of it. That is why I think that the amendments are wise and worth taking on board, from the Government’s perspective.

I can give a little example. Our new Ministers will get used to me talking about national parks a lot, but they are quite a good example of outfits that do a very good job that are run by very good people who are not directly elected. I have the Yorkshire dales and the Lake district in my patch. When we talk about legitimacy and public consent for decisions that are made—sometimes they will not be the most popular decisions; they will be difficult decisions—then, rightly or wrongly, if we do not have people who are directly accountable to, elected from and, indeed, from the communities that are served by those bodies, there will be pushbacks, and it will cause a lack of consent and of unity in the community. However, the lakes and dales are run by brilliant people. None of them is directly elected by the people they serve, yet they make the kind of decisions that, outside national parks, are made by directly elected councillors.

That is a side plea for the Government to consider those issues, but when it comes to development corporations, I think the Government need to go out of their way to ensure that local communities’ voices are not just heard but seen to be heard. Therefore, people in the community should be directly part of those boards.

Levelling-up and Regeneration Bill (Nineteenth sitting)

Debate between Matthew Pennycook and Tim Farron

Tuesday 6th September 2022 Public Bill Committees

[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.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am also very concerned. This rings serious alarm bells with me and, I think, many other people, particularly those who work in housing associations and local government. It is hard to build affordable housing—we would have built a lot more of it if that were not the case. Given the price and availability of land, the process of finding a delivery partner, the involvement of contractors and housing associations, and the need to make the money stack up, it is not easy. The problem is that if we create a safety valve that allows infrastructure levy funding to be spent on something other than the infrastructure that underpins new affordable housing developments or the development of affordable housing itself, some people will take the easy option and some of the money garnered for planning gain will not do the community much good at all.

I hope and believe that the Government and this Minister have good intentions, but if we allow the funds gathered by the infrastructure levy to seep out from the pot for developing affordable housing and the infrastructure that underpins it, that is what will happen. We must not allow it to happen.

--- Later in debate ---

[Matthew Pennycook]

Proposed new section 240F of the Planning Act 2008 makes provision about exceptions from, or reductions in, IL for charities. The explanatory notes to the Bill make it clear that the provisions in this proposed new section replicate those that currently exist for the community infrastructure levy in section 210 of the Planning Act 2008. That is indeed the case but, as the Minister will know, charities are not exempt from contributing to infrastructure and, most importantly, affordable housing secured through section 106 agreements.

Because the new levy entails a single fixed-rate mechanism for securing both infrastructure and affordable housing, and because there is nothing on the face of the Bill to specify that charities must contribute to the provision of the latter, the limit of charitable exemptions to infrastructure and affordable housing has been drawn far more widely than that which applies in the case of CIL at present. We believe that is problematic, and could hamper development on sites taken forward by charities or reduce the amount of affordable housing delivered on them. By making it clear that charitable exemptions do not apply to that part of IL related to the provision of affordable housing, amendment 158 seeks to enable development led by institutions established for charitable purposes to proceed, and to enable appropriate levels of affordable housing to be secured on the sites in question.

A separate but related issue is the question of what constitutes a charity for the purposes of proposed new section 204F. Subsection (2)(a) of the proposed new section provides for regulations to exempt from paying IL institutions established for charitable purposes, defined in subsection (4) as not only a registered charity under section 29 of the Charities Act 2011, but any charities within the meaning of section 1 of that Act not required to be registered. We believe that defining charities so widely could result in development not taking place, or being unsustainable when it does, because unregistered charities would also be exempt. Amendments 159 and 160 simply seek to limit charitable exemptions from IL to those charities that are formally registered with the Charity Commission, as per the 2011 Act.

We believe that this sensible and proportionate set of amendments will ensure that charities are appropriately exempted, but that the limit of that exemption is not drawn so widely that it could impede development or reduce the levels of infrastructure and affordable housing coming forward. I hope the Minister will agree and signal that he is content to accept all three.

[Tim Farron]

Briefly, I think that the points made by the hon. Member for Greenwich and Woolwich are really good. It is important that we do not provide loopholes to allow developers to get out of providing genuinely affordable homes for local communities.

It is also important to remember the role of the National Trust, which does many good things. In my community and across Cumbria, it is effectively an affordable housing provider at times. Sometimes it is an unaffordable housing provider, and sometimes it is an outfit that moves from having affordable homes to having holiday lets, and it behaves in ways that I, and hopefully many people here, would not approve of. It is also potentially a developer, for better or for worse. There is the prospect of a new gateway development near Windermere railway station, which has the potential to provide genuinely affordable homes for local people. There is also the potential for that to not be the case, so it is important that we do not get overly benign and dewy-eyed about the word “charity”. What we really ought to be concerned about is the delivery of genuinely affordable housing for local communities, which is why it is important that this definition is tight and clear, and that we expect those charities that have the good will and support of the nation to earn that in the communities where they are not doing so at present.

Levelling-up and Regeneration Bill (Nineteeth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 6th September 2022 Public Bill Committees

[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.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am also very concerned. This rings serious alarm bells with me and, I think, many other people, particularly those who work in housing associations and local government. It is hard to build affordable housing—we would have built a lot more of it if that were not the case. Given the price and availability of land, the process of finding a delivery partner, the involvement of contractors and housing associations, and the need to make the money stack up, it is not easy. The problem is that if we create a safety valve that allows infrastructure levy funding to be spent on something other than the infrastructure that underpins new affordable housing developments or the development of affordable housing itself, some people will take the easy option and some of the money garnered for planning gain will not do the community much good at all.

I hope and believe that the Government and this Minister have good intentions, but if we allow the funds gathered by the infrastructure levy to seep out from the pot for developing affordable housing and the infrastructure that underpins it, that is what will happen. We must not allow it to happen.

--- Later in debate ---

[Matthew Pennycook]

Proposed new section 240F of the Planning Act 2008 makes provision about exceptions from, or reductions in, IL for charities. The explanatory notes to the Bill make it clear that the provisions in this proposed new section replicate those that currently exist for the community infrastructure levy in section 210 of the Planning Act 2008. That is indeed the case but, as the Minister will know, charities are not exempt from contributing to infrastructure and, most importantly, affordable housing secured through section 106 agreements.

Because the new levy entails a single fixed-rate mechanism for securing both infrastructure and affordable housing, and because there is nothing on the face of the Bill to specify that charities must contribute to the provision of the latter, the limit of charitable exemptions to infrastructure and affordable housing has been drawn far more widely than that which applies in the case of CIL at present. We believe that is problematic, and could hamper development on sites taken forward by charities or reduce the amount of affordable housing delivered on them. By making it clear that charitable exemptions do not apply to that part of IL related to the provision of affordable housing, amendment 158 seeks to enable development led by institutions established for charitable purposes to proceed, and to enable appropriate levels of affordable housing to be secured on the sites in question.

A separate but related issue is the question of what constitutes a charity for the purposes of proposed new section 204F. Subsection (2)(a) of the proposed new section provides for regulations to exempt from paying IL institutions established for charitable purposes, defined in subsection (4) as not only a registered charity under section 29 of the Charities Act 2011, but any charities within the meaning of section 1 of that Act not required to be registered. We believe that defining charities so widely could result in development not taking place, or being unsustainable when it does, because unregistered charities would also be exempt. Amendments 159 and 160 simply seek to limit charitable exemptions from IL to those charities that are formally registered with the Charity Commission, as per the 2011 Act.

We believe that this sensible and proportionate set of amendments will ensure that charities are appropriately exempted, but that the limit of that exemption is not drawn so widely that it could impede development or reduce the levels of infrastructure and affordable housing coming forward. I hope the Minister will agree and signal that he is content to accept all three.

[Tim Farron]

Briefly, I think that the points made by the hon. Member for Greenwich and Woolwich are really good. It is important that we do not provide loopholes to allow developers to get out of providing genuinely affordable homes for local communities.

It is also important to remember the role of the National Trust, which does many good things. In my community and across Cumbria, it is effectively an affordable housing provider at times. Sometimes it is an unaffordable housing provider, and sometimes it is an outfit that moves from having affordable homes to having holiday lets, and it behaves in ways that I, and hopefully many people here, would not approve of. It is also potentially a developer, for better or for worse. There is the prospect of a new gateway development near Windermere railway station, which has the potential to provide genuinely affordable homes for local people. There is also the potential for that to not be the case, so it is important that we do not get overly benign and dewy-eyed about the word “charity”. What we really ought to be concerned about is the delivery of genuinely affordable housing for local communities, which is why it is important that this definition is tight and clear, and that we expect those charities that have the good will and support of the nation to earn that in the communities where they are not doing so at present.

Levelling-up and Regeneration Bill (Eighteenth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 6th September 2022 Public Bill Committees

[Tim Farron]

I gather it is a struggle to get back into the Toon afterwards—I will cadge a lift to the Bigg Market with you.

My concern is—this is why the amendment is important—that when we talk about planning and the powers that communities have, so often Governments, particularly this one, listen to a range of voices, but especially to the interests of developers. Here is an opportunity for the Government to listen to and give power to communities. In my constituency and around the country, there will be many instances like the one referred to by the hon. Member for South Shields, where planning permission has been given, work begins and then it is not completed. The powers available to the local council or local planning authority—let us be honest, we are talking about the powers available to the local community to have any control over all that—are very limited.

If the Government accepted the amendment, it would indicate that they are serious about empowering communities over the things that happen in them. That way, we are not allowing things to happen to communities, but allowing communities to have real sovereignty over what happens within their boundaries.

[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.

Levelling-up and Regeneration Bill (Seventeenth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 19th July 2022 Public Bill Committees

[Matthew Pennycook]

My hon. Friend gets to the heart of the matter. Our concern is that the powers provided for by the clause will facilitate precisely what she suggests: the driving through of centres such as the one in Linton-on-Ouse, regardless of their impact on the people placed in them or the local communities in which they are situated.

My understanding—the Minister is welcome to correct me—is that in establishing Penally and Napier, the Government sought to rely on schedule 2 to the Town and Country Planning (General Permitted Development) (England) Order 2015, which relates to permitted development rights. In the case of Napier, the Home Secretary granted herself permission to extend the life of the facility for a further five years, without any public consultation, by using a special development order provided for by delegated legislation. In a judgment handed down on 24 June 2022, the High Court ruled that decision unlawful.

Why have I explained that history at length? Because it is difficult to be aware of that history and not assume that the powers in clause 97 are being introduced to provide a more definitive way of securing planning consent for development on Crown land, such as for asylum centres, irrespective of the harm that such centres might cause for those placed in them, or their impact on local communities, who under the clause will be denied any right to influence a decision taken by the Secretary of State without public consultation.

I listened carefully to the Minister, who was quite clear that the powers will be used only in “moments of crisis” and in “exceptional circumstances” when there is a clear and urgent need to do so in the wider public interest. The Minister can correct me, but I see nothing in the Bill defining “exceptional circumstances”, “issues of national importance” or a “clear and urgent need”. Labour feels strongly that it is essential to insert appropriate safeguards into the clause to ensure that there are limits to the use of these powers and that minimum requirements are in place to secure some measure of consent from affected local communities. Without a firm commitment that such safeguards will be introduced at a later stage, we believe that the clause needs to be removed from the Bill. I look forward to the Minister’s response.

[Tim Farron]

I agree that the clause is too much of a blank cheque for the Government. The Minister said in support of the clause that the powers are for emergency use only, but if that is the case, he needs to set out far more specifically the terms for their deployment.

Members have spoken about asylum centres and the powers being a potential route to securing such sites. My concern is for those who are seeking asylum and going through that process. Having visited Napier barracks, I can tell the Committee that those who work there are good people who do their best to provide for the people staying there, many of whom have suffered huge trauma as a result of unimaginable experiences that we have never been through ourselves. There is no doubt, however, that that kind of camp-style site is no place for people who have escaped dreadful things and sought asylum. They are dealing with trauma and mental health issues, and have experienced appalling things. We are seeking to help them—I hope, given that the majority of people who make claims are genuine refugees and will, in time, be given the right to settle here—but how do these places help them to immerse and integrate themselves into society? That is just an aside on one of the potential uses of the clause and why it is particularly dangerous for those people, who are the most vulnerable in our society.

If we care about democracy—we are talking about levelling up and giving communities power—the Bill should not contain such an open-ended clause that seeks to undermine that power. I can understand why a Government would need emergency powers in some circumstances, but they should specify them, because otherwise the clause looks like overreach.

Levelling-up and Regeneration Bill (Sixteenth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 19th July 2022 Public Bill Committees

[Tim Farron]

Good morning, Mr Paisley; it is a pleasure to serve under your chairmanship on this lovely day. I am grateful for the opportunity to move the amendment and to speak to new clauses 38 and 39.

I volunteered for this Committee for many reasons: to spend time in great company and to be involved with a Bill that gives great opportunities to make a difference for this country, if we get it right. However, my fundamental motivation was to try to address a problem that has afflicted my community in Cumbria, and others, for a number of decades, and which I referenced in my maiden speech more than 17 years ago. That problem has got catastrophically worse in the last two years.

Before the pandemic, the average house price in my constituency was about £250,000, and the average household income was about £26,000. In the lakes and the dales, there is a much greater disparity in scale, where average house prices were already pushing towards £500,000 and average household incomes were no greater than in the rest of the district. There were 5,500 people on a council house waiting list and we have fewer social rented properties than that. Second home ownership was creating massive problems with under-population in villages that were losing their schools, their post offices and their bus services. In many communities, more than 50% of properties were empty.

Even before the pandemic, there was a huge problem. We have pushed the Government to take action for years, but we have seen precious little action. Since the pandemic, the situation has gone from crisis to catastrophe and urgent action is needed. The Government are dragging their feet; the one or two things they have talked about doing to address those issues will not even touch the sides.

Let us look at the situation now. Between June 2020 and June 2021—we are awaiting the figures for this year—in South Lakeland alone there was a 32% rise in the number of holiday lets. That area includes the most populated parts of the Lake district and the Yorkshire dales, and there was a colossal number of holiday lets to start off with, so where does a rise of 32% come from? They were not built for the purpose; they were long-term lets that migrated into short-term lets or Airbnbs.

According to estate agents, up to 80% of all house transactions in the last two years fall into the second homes market—to people who own a property but do not live in that property. From live information—literally, given yesterday—AirDNA says that within our community there are 8,111 short-term available lets. Rightmove sent a snapshot yesterday of 262 long-term lets, which means that there are 35 times more short-term lets in our community than long-term lets. We are seeing lakeland clearances, which have taken place in just a couple of years. People have been evacuated and expelled from the communities where they served and worked, where they may have grown up, where they sought to retire. People of all ages, not just the working-age population, have been evicted under section 21. Typically, those homes then migrate instantly into the Airbnb market.

Let me give you some examples. Debbie in Windermere, a hotel manager, was evicted from her property under section 21 and had to move to Lancaster, 30 miles away. She could find no way of staying in that community. As a consequence, that hotel is still without a manager. I think of a couple in Ambleside: him a chef, her a teaching assistant. They have one child in school and one about to go to school. They have been evicted from their property, which is now worth five times more on Airbnb than they were paying for it. They do not live anywhere in Cumbria now. They both had to give up their jobs and pull their children out of school and nursery, robbing that community of their services and their work.

I also think of Mike, who I spoke to on Saturday. He works in Windermere and lived in Troutbeck Bridge, just two or three miles up the road. He was evicted from his long-term let there, where he had lived for years, and he now has to live in Morecambe. It is a lovely place, but it is 30 miles away. He will soon have to give up his job. Good luck to his employer in finding anyone to replace him.

In the relatively small Yorkshire dales town of Sedbergh, 24 people were evicted during a two-week period in April. Not a single property is available on Rightmove to help those people. There is no doubt whatsoever of the reasons for that. I have some schools in our national parks reporting drops in school rolls of between a fifth and a third of their entire school numbers over the past two years. There are consequences to inaction. We are talking about the death of communities. It is happening as we speak.

We are seeing the annihilation of the workforce. In a study a few weeks ago, 63% of Cumbria Tourism’s members reported that they had to operate below capacity last year because they could not find staff. The workforce is being expelled at a rate of knots. What is the impact of that on our economy? Cumbria Tourism is the biggest employer in Cumbria, contributing £3.5 billion to the Exchequer. Our businesses are underperforming because they are understaffed, because the workforce has been cleared out. In Sedbergh, again, just a few weeks ago—in a snapshot of this one dales town—there were 104 unfilled vacancies. By the way, there are zero spaces available for any long-term let on Rightmove.

Look at the care sector. In the census report a couple of weeks ago, we saw a 30% rise in retirement age groups in our communities. Subsequently, there is a massive rise in the demand for care and a massive drop in the number of people available to provide that care. A tragedy is happening on our doorsteps and within our communities, and not just in the lakes and dales, but elsewhere in Cumbria and other parts of rural Britain. What we are seeing is the tragedy not only of divided families, but of lost services—the impact on schools under pressure and on bus services being lost because of a lack of an active, full-time population in our communities.

Those of us who live in or around a national park—I have the honour of representing two—are not trying to hold them tightly and keep them for ourselves. We want to share them with the country. We are stewards of our national parks for the whole country. However, due to Government inaction and the market being broken, we are seeing our communities and national parks being turned into no-go zones for anybody who is not a millionaire.

There is nothing in the Bill that even touches the sides of being able to tackle this crisis. I want the Government to tackle it with the urgency and speed with which the problem itself is developing. Rarely would we find anything like this amendment and these new clauses when looking at legislation, but they are genuinely the silver bullet to give communities the power to take back control and ensure that they breathe life back into those communities.

I will briefly talk the Committee through the amendment and the new clauses. New clause 38 would provide local planning authorities with the power to make a difference. Under current planning criteria, a permanent dwelling, a second home and a holiday let are all the same category of use, technically. Practically, of course they are not the same category of planning use; they are three very distinct categories. All that the new clause would do is allow local council planning authorities in the Lake district and the Yorkshire dales to be able to differentiate between the three. In a community such as Coniston, where more than half of the homes are not lived in all year round, the council will be able to set a cap and say, “No more.” These measures are about simply giving our communities the power to decide their own destiny.

I simply ask the Minister to take this matter seriously and accept the amendment and the new clause. Together, they would allow local communities to decide their own destiny, to prevent the clearance of a local working-age—indeed all-age—population and ensure that our national parks and rural communities, not just in Cumbria but across the country, are available to everyone, not just the wealthy.

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

It is a pleasure to serve under your chairmanship, Mr Paisley. I will be relatively brief, both because we have discussed these issues extensively in Committee and because the hon. Member for Westmorland and Lonsdale made the case so comprehensively, speaking about the communities in his constituency and the lives and livelihoods of those who make up the communities.

As I have said before, one need only speak to any hon. Member with acute housing pressures of the kind the hon. Gentleman set out to realise that the Government have not got the balance right between the benefits of second homes and short-term holiday lets to local economies and the impact of excessive concentrations of them on local people. It has also become apparent over the course of previous debates that there is a divide between those on the Opposition side and those on the Government side when it comes to how urgently and how boldly we must act to address the problems of excessive second home ownership and its staggering growth. The hon. Gentleman gave truly staggering figures of short-term holiday lets, showing the problems they cause around the country.

The Opposition are clear that we need urgent action in a range of areas to quickly bear down on this serious problem. There is no doubt in my mind that the introduction of new planning use classes could—along with a suite of other measures, because more measures would be needed—go a long way to restoring the balance that we all agree must be struck, giving communities back a measure of control that they do not currently enjoy. For that reason, we wholeheartedly support the amendments and urge the Government to give them serious consideration.

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[Tim Farron]

We have just talked about what we do with existing housing stock and about seeking to make sure that it is retained and that we increase the amount that is available for permanent occupancy, for all the reasons I set out earlier. The amendment would tackle extreme situations, using some admittedly extreme measures, to ensure that new build also provides for the needs of local communities.

I want to stop for a moment to make it clear that we are not saying, “Only homes for locals.” We are delighted for anybody to come to Cumbria to become new locals and part of our community, to work and to contribute. We are proud of our diversity and of being a welcoming community, but let us ensure that the houses we build are affordable.

It is a pleasure to represent the Lake district and the Yorkshire dales, as well as the Arnside and Silverdale area of outstanding natural beauty, which has many of the features, including some of the planning powers, of a national park. Any property that goes on the market in those areas will be snapped up within seconds for a premium price. That includes new properties that are potentially built for local occupancy. It is easy to get around the occupancy clauses: people can buy the properties and then turn them into holiday lets quite quickly or move away from the area and use them as second homes, so the occupancy clauses are no protection.

The amendment would give planning authorities in national parks, which face extreme circumstances, radical powers that they can use, in some circumstances, for a period of time. We are not saying that they have to use them, but the powers would be there and available to them. If the Lake district or the Yorkshire dales wished to say, as I am sure they would if they were given these powers, that they would permit only developments that were genuinely affordable, which would normally mean social rented or shared ownership properties, they would be able to enforce that.

The experience in the not-too-distant past, when national park planning authorities had greater powers in practice than they do today, was that such provisions worked. There is a wrong view, which I think is held by some in this place, that the more restrictions there are, the less development we get. That is baloney. Practice proves that that is not true. If authorities are crystal clear to developers, housing associations and others that this is what they will get, and no more, people will either come forward or they will not.

I can call on experience in places such as Grasmere; Ambleside, where the Methodist and Anglican churches worked together to provide new affordable housing with the support of the national park; Windermere, where a similar thing happened; Coniston; and Hawkshead. The communities there were the diametric opposite to nimbys: they actively went out to find land to develop, which people gave up cheaply; they worked and fundraised to make sure things happened; and they left properties in their wills to make sure that collaborations could happen and we could build affordable houses. One reason why that was possible was that people potentially leaving a bequest knew that they could trust the national parks to ensure that their property would end up being redeveloped in an affordable way for a local family, which also meant that developers were clear that that was all that would be on the table. The evidence from 20 years’ experience is that if we are more restrictive, clearer and more directive, we will get the homes that we need for communities such as mine.

The simple fact is that in many parts of the country—not just Cumbria but especially there—if we build it, someone will buy it. By not giving local communities that power, we are simply building for demand, not for need. We can carry on building for demand, but as a result, we will lose our workforce and there will be no one to care for the older people in our community, of whom there are many, in their need. The economy will dissolve because of that lack of workforce, and communities will die.

We need to ensure that we build the houses so that they are there and people can afford them, and that affordable means affordable. We need to ensure that the national parks can enforce those criteria for a period of time, so that we can solve this problem through what we do with our new builds, as we should be doing with the properties that already exist.

[Matthew Pennycook]

I thank the hon. Member for Westmorland and Lonsdale for tabling these amendments, the intention behind which we very much sympathise with. We know that excessive rates of second home ownership in rural and coastal areas are having a direct impact on the affordability, and therefore availability, of local homes, particularly for local first-time buyers. Correspondingly, we know that the marked growth in short-term and holiday lets in such areas is having a direct impact on the affordability and availability of homes for local people not just to buy but, as he said in relation to the previous group of amendments, to rent.

Research from CPRE, the countryside charity, makes it clear that our rural housing supply is disappearing and social housing waiting lists in rural areas are lengthening year on year. I agree with the hon. Gentleman that it is crucial that more is done to ensure that national parks and areas of outstanding natural beauty have not just more affordable homes but—I make the distinction—more genuinely affordable homes.

If I am honest, however, I am concerned about the implications of the blanket nature of the restrictions provided for by these proposals. Although there is no doubt in my mind that the provision of genuinely affordable homes to buy and rent must be the priority in such areas, I worry slightly about the potential for unintended consequences, such as ruling out the provision of housing for general demand, which might be needed in some parts of the country to sustain the life of communities.

That said, I appreciate that these proposals are premised on giving communities discretion as to whether they use these powers, and I recognise and support the point that the hon. Gentleman is making with them. I hope the Government respond constructively.

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[Tim Farron]

I am happy to support this group of amendments and new clauses. Flood resilience is of huge importance. We are dealing with extreme weather—today is an example, but there are other days that are extreme in a different way. In my part of Cumbria, in the past 18 years we have had two storms deemed to be one-in-100-year events, and a third that was deemed to be a one-in-200-year event. That does not add up, does it? It is because our weather and our climate are changing. We need to mitigate, prepare and build to protect homes, families and businesses.

Most recently, in 2015 Storm Desmond devastated the town of Kendal as well as many parts of Burneside, Staveley and other communities. The human and economic consequences are vast, and vastly greater than spending money up front to do the right thing in the first place. It is very wise to build into the Bill powers to ensure that neighbourhood development plans and planning controls can bring on board very powerful bodies that otherwise might seek to shirk their responsibility to ensure people are protected. I am thinking in particular of the water companies, which made nearly £3 billion in profit last year, and the extent to which they are compelled to ensure their drainage and other facilities can cope with new development, not just in that small parcel of land but as regards the impact on the wider community.

There is also the work with farmers, who are desperate to be part of the solution, to make sure we retain water in the uplands so that we slow the flow and minimise the impact on communities. The River Kent is one of the fastest-flowing rivers in the country and only 20 miles or so long from source to sea. When floods come they are dramatic, but the water can be down to quite a reasonable level within 24 or 48 hours. It therefore stands to reason that if we can hold back some of that water in the uplands by investing there and supporting farmers to do that, we can save millions of pounds and thousands of people from the terrible experience of being dramatically flooded.

It is about making sure we build in those things in the first instance. As we speak, we are building flood resilience networks in Kendal: both what can be seen by the river in the town and what cannot be seen up in the hills, where we are seeking to retain the water by tree planting, bunding and other work to slow the flow. We should be doing that sort of stuff in advance, before communities get devastated, as happened to mine. That is why the amendments are important. They are about making sure we build resiliently for the future so that other families do not have to go through what families in my community did in December 2015, with the devastation of soggy, sodden Christmas presents and wrecked Christmas trees on the sides of streets in the estates and people utterly devastated by what they had experienced, unable to get back into their homes for six months or more. Surely it is possible for us to prevent these things. With the right powers and provisions, we can.

[Matthew Pennycook]

I rise to strongly support this important group of amendments, and I congratulate my hon. Friends the Members for Kingston upon Hull West and Hessle and for York Central on proposing them. It is right that my hon. Friends seek to amend the Bill to ensure that planning rules on flood prevention and mitigation are strengthened and that the planning system responds better to the challenges associated with drought. As has been said, the amendments would not only ensure that we enhance the resilience to flooding of communities across England, but reform how the insurance and reinsurance markets operate in terms of data accuracy and how premiums take into account mitigations and defences, as well as beneficially extending reinsurance to small and medium-sized enterprises.

Although I am more than happy to acknowledge the positive steps taken by the Government on flood prevention and mitigation in recent years, such as the publication of the adaptation communication 18 months ago and the investment allocated to improving flood defences up to 2027, it is clear that there has been an absence of cross-departmental working when it comes to addressing the issue explicitly in the Bill. When the adaptation communication was published in 2020, it promised that climate mitigation would be integrated across Government Departments, including, most importantly in this case, infrastructure and the built environment. It is therefore problematic that the Bill lacks any explicit reference to flood mitigation and, indeed, references the term “flood” only once in relation to what charging authorities may spend the proposed infrastructure levy on. It is laudable that mitigating and responding to climate change has been included in the Bill as a new requirement for development plans and spatial development strategies. However, the Bill as a whole does nowhere near enough to address the specific issue of the susceptibility to flooding experienced by so many of our communities.

The risk and frequency of flooding will only increase as global temperatures rise and its effects, as hon. Members will know, can be devastating, not only in terms of its impact on people’s lives but on businesses and the economy. How can we plan, for example, to respond to the increased frequency and potency of flooding events when surface water flood hazard maps for the UK have not been improved upon since 2013? They urgently need updating. Indeed, that issue speaks to a wider concern, which is the dearth of accurate, up-to-date and publicly available data about flood prevention and risk. If accepted, new clause 3 would ensure that data, so that property owners could better plan for surface water flooding in areas at risk and, importantly, insurers could more accurately assess risk and therefore insurance premiums. There is widespread support in the sector for the amendments for that very reason.

When it comes to insurance, the introduction of a certification and accreditation system for flood prevention and mitigation improvements, which new FCA rules would ensure were taken into account in setting rates, is an entirely sensible reform that should help lower premiums. I hope the Government will consider accepting new clauses 4 and 5 on that basis.

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[Matthew Pennycook]

Clause 90 inserts new section 39A into the Planning and Compulsory Purchase Act 2004, setting out a requirement on specific bodies to assist in the plan-making and plan-revising process. The explanatory notes to the Bill make clear that the clause is intended to support the more effective gathering of the information required for local planning authorities that produce local, strategic, supplementary and other forms of plans.

It appears to us that the clause is the Government’s answer to the question of how to sustain engagement and co-operation between plan-making authorities and relevant bodies after the removal of the duty to co-operate, which is an issue that we debated in relation to schedule 7. However, it is not at all clear how the clause interacts with the Government’s stated intention to introduce a “more flexible alignment test” in planning policy. I would be grateful—again, we have touched on the issue—if the Minister could set out in more detail precisely how the clause and that forthcoming alignment test will ensure that there is sufficient engagement and input in the plan-making process on the part of those bodies that are important contributors to the process of delivering infrastructure at local or strategic levels.

That question aside, we welcome the new duties that the clause places on infrastructure providers to engage with the production of local plans, which is an entirely sensible measure. However, we question why the prescribed bodies referred to in the clause are confined to those that are public. If one considers even for a moment which types of body it might be useful and necessary for a plan-making body to engage in terms of the information required for the production of a plan, it quickly becomes apparent that they would include private infrastructure providers—for example, private utility companies.

Amendments 104 and 105 to 108 would revise clause 90 in a way that would enable plan-making authorities to require prescribed private bodies to assist in the plan-making and plan-revising process. They achieve this simply by clarifying that prescribed bodies need not be public in terms of their ownership or have functions that are entirely of a public nature. The Minister will no doubt surprise me with the ingenuity of his reasoning as to why the amendment is unnecessary, but I cannot imagine what reason the Government have to oppose it. I look forward to the Minister’s response.

[Tim Farron]

This is a really useful amendment, and I hope that the Minister takes it seriously. Utility companies have been mentioned already. When I think of Openreach, or United Utilities, a water company in my part of the world, I think about the impact that these businesses have on our communities. The infrastructure that they oversee and are responsible for is fundamental to the wellbeing of those communities. For example, we have seen sewage on the streets in places such as Staveley and Burneside, and the answer from United Utilities is, “Put it a bid, and we’ll look at it in our next-but-one funding round.” Surely communities ought to have the ability to say to United Utilities or other water companies, or to broadband providers and other such bodies, that their access to the greater public realm and their almost monopoly position in the market mean they have a responsibility to those communities, which will be overseen by those in local authorities who have the right to make these decisions.

It is right that private bodies should be included; it should be specified in the clause. The amendment would help communities like mine to bring in hugely powerful and very wealthy outfits such as Openreach and United Utilities, so that they perform the role they should perform—to provide for every part of our community—and do not take advantage of their power and strength over the relative weakness of local authorities.

Levelling-up and Regeneration Bill (Seventeenth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee Debate: 17th sitting
Tuesday 19th July 2022 Public Bill Committees

[Matthew Pennycook]

My hon. Friend gets to the heart of the matter. Our concern is that the powers provided for by the clause will facilitate precisely what she suggests: the driving through of centres such as the one in Linton-on-Ouse, regardless of their impact on the people placed in them or the local communities in which they are situated.

My understanding—the Minister is welcome to correct me—is that in establishing Penally and Napier, the Government sought to rely on schedule 2 to the Town and Country Planning (General Permitted Development) (England) Order 2015, which relates to permitted development rights. In the case of Napier, the Home Secretary granted herself permission to extend the life of the facility for a further five years, without any public consultation, by using a special development order provided for by delegated legislation. In a judgment handed down on 24 June 2022, the High Court ruled that decision unlawful.

Why have I explained that history at length? Because it is difficult to be aware of that history and not assume that the powers in clause 97 are being introduced to provide a more definitive way of securing planning consent for development on Crown land, such as for asylum centres, irrespective of the harm that such centres might cause for those placed in them, or their impact on local communities, who under the clause will be denied any right to influence a decision taken by the Secretary of State without public consultation.

I listened carefully to the Minister, who was quite clear that the powers will be used only in “moments of crisis” and in “exceptional circumstances” when there is a clear and urgent need to do so in the wider public interest. The Minister can correct me, but I see nothing in the Bill defining “exceptional circumstances”, “issues of national importance” or a “clear and urgent need”. Labour feels strongly that it is essential to insert appropriate safeguards into the clause to ensure that there are limits to the use of these powers and that minimum requirements are in place to secure some measure of consent from affected local communities. Without a firm commitment that such safeguards will be introduced at a later stage, we believe that the clause needs to be removed from the Bill. I look forward to the Minister’s response.

[Tim Farron]

I agree that the clause is too much of a blank cheque for the Government. The Minister said in support of the clause that the powers are for emergency use only, but if that is the case, he needs to set out far more specifically the terms for their deployment.

Members have spoken about asylum centres and the powers being a potential route to securing such sites. My concern is for those who are seeking asylum and going through that process. Having visited Napier barracks, I can tell the Committee that those who work there are good people who do their best to provide for the people staying there, many of whom have suffered huge trauma as a result of unimaginable experiences that we have never been through ourselves. There is no doubt, however, that that kind of camp-style site is no place for people who have escaped dreadful things and sought asylum. They are dealing with trauma and mental health issues, and have experienced appalling things. We are seeking to help them—I hope, given that the majority of people who make claims are genuine refugees and will, in time, be given the right to settle here—but how do these places help them to immerse and integrate themselves into society? That is just an aside on one of the potential uses of the clause and why it is particularly dangerous for those people, who are the most vulnerable in our society.

If we care about democracy—we are talking about levelling up and giving communities power—the Bill should not contain such an open-ended clause that seeks to undermine that power. I can understand why a Government would need emergency powers in some circumstances, but they should specify them, because otherwise the clause looks like overreach.

Levelling-up and Regeneration Bill (Fifteenth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Thursday 14th July 2022 Public Bill Committees

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

It is a pleasure, as ever, to serve under your chairmanship, Mrs Murray. I congratulate my hon. Friend the Member for York Central on this sensible amendment, which I am very supportive of. It simply specifies, as she so clearly articulated, that local community groups be included in the list of bodies that are sent a copy of any joint spatial development strategy adopted.

The Government have extolled the virtues of this legislation in part on the basis that it will demonstrably improve local engagement in the planning process. It surely follows that Ministers would welcome the engagement of community organisations when it comes to the new strategies that schedule 7 provides for. Given that all the amendment does is to ensure that a copy of any such strategy created and adopted is sent to the representative community organisations, I cannot for the life of me think of a convincing reason why the Government would not accept it.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to serve under your guidance, Mrs Murray. I am also keen to support the sentiment behind the amendment tabled by the hon. Member for York Central. Confidence in the planning process is at an all-time low. In any of the constituencies of right hon. and hon. Members, confidence in communities in the planning process will not be great. In mine, land is of such enormous value around national parks and areas of outstanding natural beauty.

To have an amendment to the Bill that allows us to formalise a greater level of consultation and involvement of local communities seems very wise. If we can get the consent of local communities and have communities shape how they are developed in the years to come, the chance of people having confidence in the decision-making process and local democracy of the planning process is that much higher.

I am very lucky to have a constituency where every square inch is parished—there is not a single part of my community without a parish council. We have a default consultee on behalf of the community in every single town, village and valley in Westmorland and Lonsdale, and throughout much of the rest of Cumbria as well. There are community groups that ought to be formally involved in that process, so that the right decisions are made. People feel so frustrated.

In our community, we are the opposite: we want houses to be built. We see the decimation of our local communities—I can talk elsewhere about the evaporation of the housing market to second home owners and holiday lets. We desperately need homes that are affordable and available for local people. We do not get people saying, “Not in my backyard”; they are saying, “In my backyard now.” But we want houses that are useful to us: affordable, social rented and guaranteed for a local working population and those who are retired.

People are frustrated by a lack of adequate provision when it comes to drainage, flood prevention, sewerage, school places—all those sorts of things. If the community were properly involved, it would give its consent and approval to schemes that would otherwise get opposition.

We also see an imbalance in the process—the developer can appeal and the community cannot—which adds to the general sense that planning is a process by which things happen to communities, not by which communities decide what happens to them. The sentiments behind this amendment are good, and I really hope the Government will take it into account.

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[Matthew Pennycook]

I thank my hon. Friend for that intervention, which is a useful illustration of what local people and local community groups can add to the plan-making process.

Our specific concern is that the denial of the right to be heard on the two new documents means that, in important ways, the process of formulating a local plan could be constrained. Let me illustrate what I mean. It should be remembered that these documents are designed to resolve issues such as the local planning authorities’ approach to the green belt or strategic infrastructure. Once set, local plans will need to be in conformity with these strategies, but it will be impossible to make use of the right to be heard vis-à-vis a local plan on important issues affecting a community, because it will be in effect impossible to challenge a decision that has already been resolved by means of a spatial development strategy, in relation to which no right to be heard will exist.

The Minister will no doubt be briefed to say that rights to be heard do not apply to other strategic plans, such as the London plan or the now abolished regional plans. That is true, but the justification for the abolition of regional plans was that they were not accountable or trusted by communities. If the aim is to increase participation, why not grant these important safeguards?

On Second Reading, both the previous Secretary of State and the previous Minister championed this legislation in part because they argued that it would tangibly improve local engagement. Why, then, are the Government content to consciously and deliberately shut down the opportunity for such engagement when it comes to new joint spatial development strategies and supplementary plans?

Amendments 88 to 90 would resolve this glaring contradiction in the legislation. Taken together, amendments 88 and 89 would enshrine in the Bill the right to be heard at an examination in public in relation to a joint spatial development strategy, while amendment 90

“would prevent the general rule for hearings for supplementary plans taking the form of written representations and would instead enable the examiner to determine the form of the examination”

as they saw fit. We believe that these amount to simple but appropriate changes to schedule 7 that would restore the right to be heard and thus enable communities to engage fully at every stage of the development plan formulation process. If the Government are genuinely open to further honing and refining the Bill before it is given Royal Assent, as previous Ministers always maintained, they should accept these amendments, and I hope to hear that this Minister is content to do so.

[Tim Farron]

It is worth observing that a previous Government ripped up completely the spatial development strategy process, largely because of the sense that the populations of this country felt that it was utterly disconnected from the plans, desires and priorities of their communities.

If we are to go down this route and not enable a formalised process by which communities can have their voices heard when it comes to spatial development plans, we are just setting ourselves up for the same mistake that the previous Government made. If we want people to feel confident in these plans and believe that they are in their interests and right for the future of their communities, children and grandchildren, we need to give them the chance to have their voices heard and to have their say. The amendments seem entirely sensible to me.

[Mr Jones]

As we discussed in relation to digital reforms of the planning system, we absolutely share the objective of improving community engagement in all parts of the planning system. It is, however, appropriate to allow different procedures for that engagement, based on the role of the plan or strategy in question.

The current procedure for the examination of spatial development strategies is now well established. It is true that, unlike for local plans, there is no formal right to appear in person. However, we are confident that the current arrangements are fair, proportionate and effective. Experience shows that planning inspectors go to great lengths to ensure that a broad range of relevant interests and views are heard at examinations for spatial development strategies. The Committee may like to know that the most recent spatial development strategy examination, for the London plan in 2019, took place over 12 weeks and the list of participants ran to 27 pages.

The fundamental difference between spatial development strategies and local plans is that they do not designate or allocate specific land for development; that remains the role of the local plan. It should also be remembered that written and oral evidence carry equal weight at examination, and there is no limit on the submission of written evidence.

That brings me to amendment 90. We intend supplementary plans to replace supplementary planning documents, and, once they have successfully passed through consultation and independent examination, to be afforded the same weight as a local plan and other parts of the development plan. We are committed to a fair examination process, which is why we have based it on the arrangements for neighbourhood development plans.

The Bill sets out that, as a general rule, the independent examination of a supplementary plan is to take the form of written representations. That is expected to be more appropriate to their role in setting more specific policies for smaller areas than the local plan. The examiner must, however, hold a hearing if they think that is necessary by virtue of the issues raised or to ensure fairness. We expect there to be a need for guidance to support the independent examination of supplementary plans in general. We have been clear that we will work closely with the sector to refine our implementation plans, and we will be keen to hear views on whether further clarification on the matter of public hearings is necessary.

We have also committed to producing new guidance on community engagement in planning, which will describe the different ways in which communities can get involved and will highlight best practice. The guidance will cover supplementary plans. Given that the processes for both joint spatial development strategies and supplementary plans build on proven existing processes that have been designed to reflect their intended role, I hope the hon. Member for Greenwich and Woolwich will feel able to withdraw the amendments.

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[Matthew Pennycook]

I thank my hon. Friend for tabling this group of amendments, which raise an incredibly important issue that the Bill is silent on.

Debates about whether and how to formalise arrangements for deliberative democracy within the planning system have occupied those engaged in planning policy and practice for some time. I do not intend to try to do justice to those debates or to set out the case for considering amending the Bill to introduce a deliberative democracy process within the local plan timetable—my hon. Friend has admirably made the case for the benefits that deliberative democracy can bring.

All I will say is that we support this group of amendments because we think it is right that we look to do more to encourage public participation in the planning process beyond the existing right to be heard that applies to the examination of a local development plan, if not to the new spatial development strategies and supplementary plans that this schedule gives effect to.

[Tim Farron]

The hon. Member for York Central will forgive me if I do not get into the internal politics of York city, but all the same I think her proposals have real merit.

It seems that the housing market—in York, in the lakes and dales, elsewhere in Cumbria and in other parts of the country as well—has got into such a ludicrous situation that our planning law is just not able to keep up with it or to provide local communities with any kind of protection or agency when it comes to challenging that spiralling, out-of-control housing market.

Fairness in the planning system is essential. It is utterly frustrating—in fact, it is absolutely heartbreaking, as the hon. Member said—when communities see the desperate need for affordable homes for families who either are local or who will become local and for those working in social care, hospitality and tourism, schools and every other part of our economy, but the planning system permits us to build for demand and not for need. Communities must have that power and that agency.

Structured fairness in the planning system is essential, but it will require resourcing because the better planning decisions are those made with the community fully involved and with the planners getting out of their offices and meeting developers and communities semi-formally on site long before a proposal has been put in, so that we end up with a proposal that is, effectively, agreed on almost in advance.

When communities feel they are having things done to them, and when whole neighbourhoods are evicted and expelled through section 21 evictions, which the Government are yet to do anything about, those communities are bound to be desperate to have control and agency, to make sure that we make the best use of the resources and powers we have. What a slap in the face it would be for communities if we went down the deliberative route and then found at the end that communities do not have any power to enforce 100% affordability on any development or the permanent occupancy of houses that are developed.

We need to give communities that proper engagement and involvement, and we need there need to be enough planners, with enough resources, so that they can get out of the office and help to communicate with the community and indeed with developers in a consensual and pragmatic way. However, if we do not have the powers and the control at local planning level, we will find people who have been consulted but who still feel completely and utterly powerless.

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[Matthew Pennycook]

I beg to move amendment 101, in schedule 7, page 270, line 31, at end insert—

“(4) In this part—

‘mitigation of climate change’ means compliance with the objectives and relevant budgetary provisions of the Climate Change Act 2008;

‘adaptation to climate change’ means the achievement of long-term resilience to climate-related risks, including the mitigation of the risks identified in relation to section 56 of the Climate Change Act 2008, and the achievement of the objectives of the relevant flood and coastal erosion risk management strategy made pursuant to section 7 of the Flood and Coastal Water Management Act 2010.”

This amendment requires references to climate change mitigation and adaptation in the inserted sections on plan making to be interpreted in line with the Climate Change Act 2008.

The debates we have had so far in relation to planning have focused heavily on the detailed procedures for how plans are made. We have spent far less time considering the practical outcomes that we want the planning system to help achieve and its role in enabling us to meet a number of significant challenges that we face as a country. I recognise that we will have time to do so after the summer recess, when we consider any proposed new clauses on the purpose of planning. However, we feel it is important that we also seek to amend those parts of the Bill that touch on some of those challenges but that do not necessarily ensure that we are doing what is necessary to meet them.

Of all the challenges we face, the most pressing is that of runaway global heating. Despite the desire of several Conservative party leadership candidates to abandon it, there is broad public support for bold climate action, and a strong cross-party consensus about the importance of the UK’s net zero target. Yet, in its latest annual progress report, the Committee on Climate Change found that the current Government’s policies

“will not deliver Net Zero”,

that the country is on track for only eight of 50 key indicators of progress, with 11 significantly off track, and that no credible plans exist for 61% of required emissions cuts.

When it comes to planning, one can point to a few exemplar development schemes across England, but, in general terms, we have failed to ensure that the planning system is playing its full part in tackling the climate emergency. Indeed, one might go so far as to argue that it is actively hindering our ability to mitigate and adapt to climate change in myriad different ways, whether that be planning decisions enabling the building of new homes in places prone to flooding or unplanned development resulting in new communities that are entirely dependent on cars. More must therefore be done to ensure that the planning system effectively contributes to the delivery of our emission reduction targets and that new development produces resilient and climate-proofed places.

The amendment seeks to achieve that aim by ensuring that the process of plan making is fully aligned with the commitments set out in the Climate Change Act 2008 and the Flood and Water Management Act 2010. It would do so by clarifying the meaning of climate change mitigation and adaptation in the Bill in such a way as to tie them directly to those Acts, thereby strengthening the duty placed on plan making via a 2008 amendment to the Planning and Compulsory Purchase Act 2004 that ensured that all plans contribute to the mitigation and adaptation of climate change.

By ensuring that there is genuine coherence between the country’s planning system and its climate commitments, the amendment would also provide the foundation for more detailed national policy on how planning will contribute to achieving net zero emissions by 2050 and mitigating climate change as fully as possible in the forthcoming NPPF review. I hope that, in his response, the Minister will be able to pick that up and provide us with an update on when we might see that issue addressed in that NPPF review.

To conclude, we all know that the planning system must be aligned with net zero if we are to achieve our legally binding interim targets. I can think of no reason whatsoever that proposed new section 15LH, set out in schedule 7, should not be amended to give effect to that objective in relation to changes made to plan making in the Bill. On that basis, I hope that the Minister will accept the amendment.

[Tim Farron]

I, too, am deeply concerned by the noises from some of those seeking to become leader of the Conservative party, and therefore Prime Minister, on issues to do with climate change and net zero. I think that they are unwise, politically. When all is said and done, the public are convinced of the need to take serious and radical action. They recognise it as the biggest earthly threat that we face. We must face it together, or we will indeed fall together.

This is where local authorities have the opportunity to make a huge difference in the planning process. I am going to pull out two examples to illustrate why it is so important for the planning system to be tied very closely to the need to comply with the terms of the Climate Change Act 2008. The first is, of course, zero-carbon homes. When we are building new buildings, whether they be homes for us to live in or business properties, we should ensure that they are all compliant. We know that planning committees currently want to make new developments zero carbon, to ensure that they are contributing to renewable energy and minimising any wastage of energy whatsoever, and yet in the final analysis they cannot do so, because it is not enforceable. This Committee has the ability to make the law so that they could do that. Why would we not do that? Why would we not give communities the power and agency to actually enforce zero-carbon homes and buildings in our communities?

As I said earlier, at some point in August—after an eight-month delay—we expect the inspector to announce whether the UK will open its first coalmine for 30 years, in west Cumbria. We obviously should not do that. We will wait and see what the inspector says, and then we will wait and see what the Secretary of State says in response. It should be a no-brainer. If we are acting in line with the terms of the Climate Change Act, we are not going to be sanctioning the digging up of more fossil fuels for any purpose at all.

Those powers should be held by local authorities so that planning authorities can put in practice what we as a national community and family have agreed are our priorities. That power is not present. This amendment, I hope, provides the possibility that it could be.

Levelling-up and Regeneration Bill (Thirteenth sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 12th July 2022 Public Bill Committees

[Tim Farron (Westmorland and Lonsdale) (LD)]

I beg to move amendment 118, in clause 75, page 85, line 9, at end insert—

“(1A) Regulations under this Chapter may require relevant planning authorities to process data in accordance with approved data standards relating to the number and nature of—

(a) second homes, and

(b) holiday let properties

in the planning authority area.”.

This amendment would enable planning data regulations to provide for the collection of data to national standards about second homes and holiday lets.

The amendment seeks to aid transparency and therefore accountability on some of the issues that the Committee has already discussed regarding the number of homes that are not used for permanent dwelling.

I could give the Committee various statistics on excessive second home ownership and holiday lets. For example, estate agents in Cumbria tell me that up to 80% of all house sales since the pandemic began, two and a bit years ago, have been in the second homes market. In one year, from June 2020 to June 2021, there was a 32% rise in the number of holiday lets in the district of South Lakeland. Hon. Members can imagine the number of holiday lets that existed to start with in a district that includes the biggest chunk of the Lake district and a large chunk of the Yorkshire dales; 32% is a huge number. Across England, there has been a 50% reduction in the number of long-term rental properties available. Outside London, there has been an 11% rise in rents; in London, the increase is nearly double that.

All those figures come from local councils, housing charities and research I have carried out myself; none of it comes from central Government sources. The amendment would ensure that there is a real sense of the scale of the problem. I feel it and I know it, from talking to people in my constituency. From Grasmere to Garsdale, from Coniston to Arnside, every community is suffering a haemorrhaging of its working-age population. They have experienced that for years, but in the last two years the situation has been especially awful.

What do we need to know? What are we looking for? Someone who owns a second property that they rent out for 70 days a year counts as a small business, which means they do not pay council tax and they do not pay business rates either. I can think of thousands of homes in my constituency where someone who is, by definition, comfortable—to say the very least—is being subsidised by people working every hour God sends, with two, three or four different jobs, often on minimum wage. Those hard-working people are subsidising second home owners, who do not have to pay any kind of tax whatsoever, either to the Government or to the local authority, on their dwelling, and that is not on. It is not right and we must do everything we can to prevent it.

We can dig down, via various routes, to get the number of holiday lets, give or take, but we do not know anything about second homes—for a slightly good reason. After a Liberal Democrat by-election win in Ribble Valley in 1992, Mr Major abolished the poll tax and introduced the council tax, and gave 50% relief—a subsidy—to anyone with a second home. The Labour Government between 1997 and 2010 reduced that to just a 10% subsidy, so people had to pay 90%. The coalition got rid of the subsidy altogether, so now, in most authorities, second home owners pay full council tax. As a result, there is no incentive to register a home as a second home, so we just do not know; broadly speaking, the information we have is anecdotal.

The purpose of the amendment is to make sure that we know formally the scale of the problem, so that the Government can be held to account and we can take action to alleviate the problem, in order to ensure that there are homes for the permanent populations of our communities.

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

It is a pleasure to serve with you in the Chair, Sir Mark. I take the opportunity to echo the sentiments expressed by my hon. Friend the Member for Nottingham North in warmly welcoming the new Ministers to their places and in thanking their predecessors—the Minister of State, Ministry of Justice, the right hon. Member for Pudsey (Stuart Andrew), and the hon. Member for Harborough (Neil O’Brien)—for the constructive way in which they engaged with us and the thoughtful manner in which they approached the consideration of the Bill. On the basis of this morning’s proceedings, I am confident that we will continue in that vein.

Turning to amendment 118, the hon. Member for Westmorland and Lonsdale is a doughty champion for his constituents on this issue. He will know from previous debates in the House on this subject that we are in complete agreement that the Government need urgently to commit to far bolder action. It is not in dispute that a balance needs to be struck when it comes to second homes and short-term holiday lets; no one is arguing that they are of no benefit to local economies, but the potential benefits associated with them must continually be weighed against their impacts on local people.

At present, the experience of a great many rural, coastal and, indeed, urban communities makes it clear that the Government have not got the balance right. The problem is not second homes and short-term holiday lets per se; as the hon. Member for Westmorland and Lonsdale said, it is excessive numbers of them in a given locality. While individual hon. Members will have a clear sense of the communities in their constituencies that are affected by this problem, the hon. Gentleman is absolutely right to highlight with the amendment the fact that we do not know the precise number of second homes and holiday lets across the country, or their distribution.

Members have heard me say this before, but council tax records are likely to significantly undercount second homes, both because there is no financial incentive to register a property in areas where a council tax discount is no longer offered, and because second home owners can still avoid council tax altogether by claiming that their properties have moved from domestic to non-domestic use.

The estimates of second home ownership produced by the English housing survey are more reliable, but even they are based on a relatively small sample and rely on respondents understanding precisely what is meant by a second home and accurately reporting their situation. Similar limitations apply to short-term lettings. There is no single definitive source of data on rates for what is, after all, an incredibly diverse sector, with providers offering accommodation across multiple platforms.

It therefore strikes us as entirely logical that as well as considering what more might be done to mitigate the negative impact of excessive rates of second home ownership and short-term and holiday lets, the Government should consider whether digitisation of the planning system could allow us to better capture data on overall rates and provide a better sense of which parts of the country face the most acute challenges. We therefore very much support amendment 118, and we hope the Minister will give it serious consideration.

--- Later in debate ---

[Matthew Pennycook]

I thank my hon. Friend for that point, which is well made. Not only are local planning authorities overstretched, but they are often outgunned in their relationship with developers and in having that capacity to interrogate properly what is happening in order to get the best deal for local people.

The simplest answer as to why that has happened is a general lack of resourcing for local authorities. At the same time as dealing with budgets cuts, they have had to cope with growing responsibilities, not least in relation to social care. That general lack of resourcing is largely the result of reductions in central Government grants, which have been the most sharply cut component of local government revenue since 2009-10, falling by 37% in real terms between that year and 2019-20, from £41 billion to £26 billion in 2019-20 prices.

We therefore have a situation in which the resources dedicated to planning within local planning authorities—never particularly high by international standards, even before 2010—have fallen dramatically as a result primarily of local authority belt-tightening in response to central Government funding cuts. The Bill does not provide an opportunity to resolve the wider problems of inadequate local authority funding, but we believe—I am certain this is not the only time that we will consider this issue—that any new burdens placed on local planning authorities by this legislation must be adequately resourced and that specific commitments to that end are put on the face of the Bill.

On the new burdens associated with the planning data requirements in the Bill, there are two facets to the argument. First, local planning authorities will need sufficient additional resources to comply with the new work pressures that will be placed on them as a result of the Bill. Without such additional resources, I suspect that many local planning authorities will struggle to comply in practice with the provisions of chapter 1. Without a commitment to new funding, it is not difficult to imagine, to give a practical example, that planning departments in local planning authorities will face a Herculean task to ensure that their already hard-pressed IT services comply with all the new requirements.

Secondly, many local planning authorities will already have purchased software and tools that may ultimately not be approved under the powers provided by clause 78. As such, proposed new clause 32 explicitly specifies that where local planning authorities have made investments in planning data software that is incompatible with the changes sought, the Secretary of State will provide compensation for the additional cost incurred by its replacement.

There is widespread support—if not enthusiasm—in both the public and private sectors for the digital transformation of our planning system. There is also an obvious need to ensure that the requirements in this chapter that will facilitate that transformation can be enacted in a way that will not add further burdens to already overstretched local planning authorities. I trust that the Government accept as much and we will hear from the Minister that he is content to make these changes to the Bill.

[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.

--- Later in debate ---

[Matthew Pennycook]

I congratulate my hon. Friend the Member for York Central on making a strong case for her amendment. The problem she highlights is a very real one—that of out-of-date plans based on out-of-date data and analysis. The Opposition believe that local development plans are vital ways that communities can shape and agree a vision for future development in their area and properly account for the specific housing, employment and infrastructure needs within them. We want to see the proportion of England covered by a local plan increase. We believe it is important that each plan should evolve over time to take into account changing circumstances affecting the area in question, whether it be changes in the level of housing need or new infrastructure requirements.

Paragraph 33 of the national planning policy framework makes it clear that:

“Policies in local plans and spatial development strategies should be reviewed to assess whether they need updating at least once every five years, and should then be updated as necessary.”

I appreciate the argument of my hon. Friend the Member for York Central that this aspect of national guidance should be put on a statutory footing in the Bill. We are certainly sympathetic to that, and I hope the Minister responds to her amendment favourably, with the proviso that, as with so many other measures in the Bill, sufficient resources flow down to local authority planning departments to enable them to carry out a review and an updating exercise at least once every five years, given how onerous a task it is to prepare a local plan or to revise it.

[Tim Farron]

I, too, think this is an important amendment, as it allows us to get a sense of how important the Government consider development plans to be and what support they will give communities to not just have them, but ensure that they mean something. In Cumbria, both at local authority level and in the national parks, we consider development plans to be important. Not having a development plan means basically sub-letting it to the market. The reality is that the developers decide what gets built in people’s communities. We end up seeing development for demand, not for need. In a community like ours—pretty much anything can be built in the lakes and the dales in Cumbria and there would be a market for it—we do not get the buildings that are needed to meet the requirements of a community that will otherwise dissipate, and is doing so.

I suspect one reason a number of authorities are reluctant to have a development plan, or are not as committed to having one as they might be, is that they often think they are not enforceable. Very often, a development plan will outline the priorities in a community. I mentioned earlier the Yorkshire Dales national park authority boldly saying only the other week that it wants to ensure that every new development needs to be 100% for permanent occupancy. That is a brilliant endeavour, which I totally support, but there is a great deal of doubt as to whether the authority will ever be able to enforce it. In fact, I think we all know that it will not be able to do so, unless the Government were to change the law through this or some other process.

Levelling-up and Regeneration Bill (Second sitting)

Debate between Matthew Pennycook and Tim Farron

Committee stage
Tuesday 21st June 2022 Public Bill Committees

[Matthew Pennycook]

Q Great. Tim, anything to add?

Cllr Oliver: Yes, I agree with both James and Sam. Obviously, planning is largely in the remit of the district and borough councils. In an ideal world, I would hope to see some sort of spatial development strategy, or the ability to create that. The duty to co-operate has not worked particularly well, and, where we are creating CCAs and county deals, it would be very helpful for there to be some input, at least, from a county-wide perspective. In terms of the digitalisation, I would leave that to the other two and I agree with what they said.

[Tim Farron]

Q Hello to all three of you; it is really nice to see you. Thank you very much for your time. My question is on housing and planning, so it is probably for Sam, but with a little bit of James, and we would be perfectly interested to hear what Tim has to say as well.

If we take it as a given that, particularly in the rural communities that many district councils serve, there is a collapse of the private rented sector into the Airbnb sector and a massive growth in second home ownership at the expense of permanent occupied dwellings, do you think that this Bill gives you any additional powers that help you to push back against that? What additional powers would you like?

Cllr Chapman-Allen: The relaxation for local authorities to tax second homes for council tax purposes had a really positive impact. We are seeing that across those communities in which second home ownership is immensely high. For communities such as yours, Tim, that Airbnb community is a challenge. First, it removes those rental properties from the market for long-term tenants. Secondly, it creates a really fluid community, and sometimes there are risks of antisocial behaviour related to that. There could be more strengthening for those local authorities to place conditions on new builds and new properties to ensure that the type of mix and tenure, and/or usage around holiday homes and/or Airbnbs, could be strengthened.

That said, we have the existing legacy problems for coastal communities, market towns and cathedral cities already. I would not necessarily want to suggest that we change that through this Bill now. We need to ensure that we are working with those landlords positively, as with housing providers and housing legislators, to ensure that they understand the challenges they face, but more importantly, the challenges that the communities face.

We have a long way to go. Over the last 12 months, there has been a lot of change for landlords. Sadly some of those have now vacated the market because of the changes in regulations, and policies required of them. We must ensure that we have a suitable housing mix across the country, and those who want to and do rent have an important part to play. Therefore, landlords have an important part to play in that process. I would not necessarily want to over-regulate so that landlords no longer want to operate in that market. However, there is a challenge around Airbnb and there is further work we can do to support the Government in implementing some legislation on that.