National Planning Policy Framework Debate

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National Planning Policy Framework

Nick Raynsford Excerpts
Thursday 20th October 2011

(12 years, 6 months ago)

Commons Chamber
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Greg Clark Portrait Greg Clark
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Let me make some progress, and then I will of course give way to hon. Members on both sides of the Chamber.

Let me set out the reasons for our reforms in context, which relates to the point that the hon. Member for Huddersfield (Mr Sheerman) raised. The first and overriding objective is to put power in the hands of local people. Over the years, we developed arrangements in this country—most recently through the regional strategies—that sought to resolve issues outside what people thought of as their communities. I understand the reasons for that and I do not think that those efforts were ill-intentioned by any means. However, the consequence has been that many people in this country feel that planning is something that is done to them, rather than something that involves them. I am not alone in saying that: the problem was also recognised in our discussions in Committee on the Localism Bill. The last planning Minister in the previous Government, the right hon. Member for Wentworth and Dearne (John Healey) said:

“I inherited the regional spatial strategies and quickly found that they had…few friends…what was clear to me…was that our regional spatial strategies and our approach to planning…was too top-down”.—[Official Report, 30 June 2010; Vol. 512, c. 272WH.]

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Greg Clark Portrait Greg Clark
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I want to make some progress, because this is principally an opportunity for colleagues to make speeches and contributions to the consultation.

We need to make planning policy accessible if we are to achieve our aim of putting local communities in charge. That is the purpose of our reforms. It is also important to consider the effects of the policy regime that we have established. I do not pretend that the planning system is the only factor behind the low levels of house building and the difficulties in commercial development that we have at the moment. That would clearly be wrong. There are also difficulties in accessing finance, for example; there is a shared recognition that that is an important factor at this time. It is important to recognise, however, that the planning system makes an important contribution.

I have been looking at the joint submission from Shelter, Crisis, Homeless Link, the National Housing Federation—representing social housing providers—and the Chartered Institute of Housing. It says that

“reducing the quantity of policy will help simplify the planning system, make it more accessible to all users and will remove a significant barrier to much needed development”

—in this case, in social housing. Recent statistics show that in the five years to 2010, real spending on planning, through planning applications, increased by 13%, while the number of applications fell by 32%. By my reckoning, that means that the average cost has risen by something like 66%. That is a factor.

Nick Raynsford Portrait Mr Raynsford
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rose—

Greg Clark Portrait Greg Clark
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May I just finish this point?

The British Chambers of Commerce has said that the system is

“too complicated, too costly and too uncertain. It creates mistrust…and holds back our recovery.”

With that breadth of analysis, it is important to recognise that the planning system is one of the factors that is leading to the silting up of the system.

Nick Raynsford Portrait Mr Raynsford
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Does the Minister not recognise that, if he takes the period of five years from 2005 to 2010, which embraced the last two years of the boom before the crash and the three years of recession, he will inevitably get some pretty distorted outcomes? That is not a fair parallel. Does he also accept that, in 2007, the last year before the recession, the figure of 207,000 net additions to new housing was the highest for 20 years? It is therefore completely nonsensical of him to say that the previous system was not capable of delivering new housing.

Greg Clark Portrait Greg Clark
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It will be obvious to the right hon. Gentleman that I am taking a long-term view. I have said explicitly that the faults that I have diagnosed relate to the long term, but he chooses to cite particular years. Looking at the whole life of the previous Government, from 1998 to 2010, the number of homes built and completed in England was lower than under any previous Government since the war. He is therefore alone in thinking that there is not a problem, and that we do not have a lower level of house building than is appropriate.

Let me outline the consequences of the problem for families. If we persist, over the long term, in building a far lower number of homes than the number of households that are being formed, the inevitable consequence will be poverty. People will have to spend more in rent and have less to spend on their children. It will also be more difficult for people to get on to the housing ladder for the first time. We know that the average age for first-time buyers who do not have assistance from their parents is now getting close to middle age, at nearly 40. We want people to be able to get on; we do not want them to have to make choices.

I received an e-mail from a member of the public, which stated:

“Being part of a couple with a 2-year-old son, living in a flat…we are desperate to buy a family home with a garden, but have little chance.

The social consequences of house prices being so high seem catastrophic to me—both parents being fixated on earning enough to pay for a mortgage, both too”—

the next word might be unparliamentary—

“for much of a social life, every…penny going on the mortgage with nothing left over for holidays that I took for granted as a child. We are currently having to decide whether to abandon our families and friends and go and live…where neither of us has lived before…or to stay in our flat, with our son unable to run around without the people underneath us banging on the ceiling!”

There is a problem for families that we need to address by changing the system and dealing with some of the long-term flaws. That is the purpose of this policy.

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Hilary Benn Portrait Hilary Benn
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I have given way a number of times already, and I am anxious to make progress.

Given the primacy of the sustainable development presumption in policy, given that so much flows from it, and given that no one in the House wants development at any price, the Government need to get the definition of sustainable development right. The Environmental Audit Committee has already made clear its view on which definition should be used. As the Minister will know, in a report published in March, it called for the inclusion of the five internationally recognised principles of sustainable development that were set out in the 2005 sustainable development strategy, which, as I recall, the then Opposition supported at the time, as I do now.

I listened carefully to the argument presented by the Minister today, and I hope that the Government will bear it in mind when they produce their revised draft, because there is a risk that in the absence of a complete definition, there will be more argument about what the term means. The last Government, with support from the then Opposition, replaced the original Brundtland definition with the 2005 definition, and I was not persuaded by what the Minister said about why that should not endure in time. If we stick with it, it will be well understood and enduring.

Nick Raynsford Portrait Mr Raynsford
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I strongly agree with what my right hon. Friend is saying. Does he agree with me that it is necessary not only to have a proper and full definition of sustainable development, but to establish a link between it and the operational principles that govern the handling of planning applications? That point was made very well by the Town and Country Planning Association in its submission. The absence of operational principles allowing implementation of the overall definition is one of the greatest weaknesses of the current NPPF draft.

Hilary Benn Portrait Hilary Benn
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I agree with my right hon. Friend. I am sure that the revised draft will be a slightly longer document, but the existence of a bit more material sometimes assists decisions in the planning process rather than making them more difficult.

I do not know whether the Minister has seen the CPRE legal opinion, issued by a respected planning QC, but it addresses this very point about the definition of sustainable development. The QC argues that

“there is an ambiguity which permeates the NPPF, and which is likely to lead to uncertainty in its application, with a consequent increase in the number of appeals.”

None of us wants that. This serves as a powerful argument that the Minister should reflect on possible changes, as he has undertaken to do.

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Nick Raynsford Portrait Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
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I draw attention to the interests declared on the Register of Members’ Financial Interests and highlight two non-pecuniary interests as an honorary fellow of the Royal Town Planning Institute and as a director of the Town and Country Planning Association.

I welcome the remarks of the hon. Member for Mid Dorset and North Poole (Annette Brooke) about greater clarity in the definition of sustainable development—a point on which I shall pick up—and I agree with a number of the other points she made.

I congratulate my right hon. Friend the Member for Leeds Central (Hilary Benn) on his new appointment and on his absolutely first-rate contribution to the debate, in which he forensically analysed the Government’s failures and highlighted the key issues that will need to be addressed if we are to get some sense out of the mess we are in. Let there be no mistake about it—we are in a mess on planning, and it is a mess of the Government’s making.

The Government’s actions were based initially on an incorrect analysis of the problem. They were very happy to speak glibly about the previous system having failed to deliver, and they have continued to make those claims with no regard for the facts. I am going to put on the record, for the Minister’s benefit, the facts about net additions to the housing stock during the period of the previous Government leading up to the recession. From a low of 130,000 net additions to the stock in 2001, we saw an absolutely steady, year-on-year increase to 143,000 in 2002-03, to 155,000 in 2003-04, to 169,000 in 2004-05, to 186,000 in 2005-06, to 199,000 in 2006-07 and to 207,000 in 2007-08. That was not a system that was bust. Members on the Government Benches who oppose housing development may not have approved of it, but it was delivering more homes at a time when there was a shift in favour of brownfield development, so more of those homes were on brownfield sites and the countryside was being more effectively protected. That was a success, and it is shameful of the Government to fail to acknowledge that and to try to pretend that their radical new proposals are somehow addressing a problem of failure when they are not.

Having made their proposals on the basis of an incorrect analysis, the Government built up false expectations by promising the earth to neighbourhoods about their having the ability to refuse unwelcome planning applications. In the run-up to the general election we heard again and again that the Conservative policy of neighbourhood planning would enable neighbourhoods to refuse developments. Having built up those expectations, the Conservatives precipitately, when they came into government, acted to cancel regional spatial strategies without bothering to take the trouble to find out whether what they were doing was lawful. As a result, that policy was struck down in the High Court. What a shambles! What a way to go about doing things. In the course of doing that, they inevitably created uncertainty, and the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) rightly highlighted what all people interested in development know—that certainty is absolutely crucial if we are to have an effective planning system. I am afraid that the Government’s actions have destroyed any certainty.

George Hollingbery Portrait George Hollingbery (Meon Valley) (Con)
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Will the right hon. Gentleman give way?

Nick Raynsford Portrait Mr Raynsford
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No; I have limited time and I have to make some progress.

Having thrown the system into chaos—

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Nick Raynsford Portrait Mr Raynsford
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Thank you, Mr Deputy Speaker. When the system had been thrown into chaos, contributing to a collapse in planning applications, the Government’s friends in the Treasury realised the damage that was being done, so we saw the very significant U-turn in policy that was announced by the Chancellor at the time of the Budget in which the policy was to change. “Yes,” he said, “Of course neighbourhoods must have a say, but the presumption will be in favour of development; the default position will be, ‘yes’.” That was entirely at odds with Ministers’ previous rhetoric, and, not surprisingly, all those who had been led to believe that the new Government were going to have a system that would make it easier for communities to refuse development felt incensed.

That is the explanation for the mess that the Government have got themselves into. They have simultaneously achieved the lowest level of new planning permissions for housing almost in recorded history while having an absolutely incensed body of campaigners who believe that they are opening the door to concreting over the countryside. It is a pretty extraordinary achievement to have done those two things simultaneously, but that is what they have achieved. There has been a disastrous collapse in planning applications for housing. The figures, just in case the Minister is not aware of them, are that just 25,171 residential planning permissions were granted in England in the second quarter of this year. That figure is 24% lower than that for the first quarter and 23% lower than that for the equivalent quarter in 2010. Indeed, it is one of the lowest figures ever recorded—ever recorded! That is the reality. It is fewer than half the number of homes we need to meet needs: 60,000 a quarter would be required to keep pace with requirements. At the same time, they have incensed all the people who care about the countryside, who think they are opening the door to inappropriate development.

George Hollingbery Portrait George Hollingbery
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Will the right hon. Gentleman give way?

Nick Raynsford Portrait Mr Raynsford
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I will give way to the hon. Gentleman.

George Hollingbery Portrait George Hollingbery
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I am very grateful. I suspect that what we have just heard is long on invective and short on fact. These proposals are about more than housing; they are about planning in general. Does the right hon. Gentleman describe a system in which 50% of local authorities had not adopted local plans and in which large areas of the country had not adopted regional spatial strategies as anything other than confusion and mess?

Nick Raynsford Portrait Mr Raynsford
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First, I have given a number of facts. Perhaps the hon. Gentleman should advise his Front-Bench team to be rather more respectful of the facts. Secondly, when I was the Minister for Housing and Planning in the early years of the Labour Government I inherited a position in which the reforms of the previous Conservative Government had resulted in large numbers of councils not having up-to-date plans in place. The main thrust of my work as Planning Minister was about getting the existing system to work better, rather than about imposing radical changes. I have advised the current Minister and his colleagues that they would do far better to try to work with the existing system than to seek a radical overhaul, which would be likely to create confusion and uncertainty and lead to paralysis in the planning system—which I am afraid is what we have got.

That leads me to the national planning policy framework. The problem with that document is that the Government have confused brevity with clarity. They have assumed that by reducing the volume of existing guidance they are producing a clearer and simpler statement, but that simply is not the case. The reality is that in many areas, some of which we have discussed today, sufficient care has not been taken with the definitions in the NPPF to give certainty and clarity. Sustainable development is one such area, and I endorse the views that have been expressed about the need for greater clarity.

Secondly, there is the “brownfield first” issue, another area where the Government have blundered and will need to change. Thirdly, there is not a single reference to new settlements and urban developments. There is no mention whatever of the principles that should apply to those. It is extraordinary that that should be entirely overlooked.

Heidi Alexander Portrait Heidi Alexander
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I congratulate my right hon. Friend on an excellent speech. Does he share my concern about the absence of the word “cities” from the national planning policy framework? I find it remarkable that we can have a planning framework for our country that makes no reference to our cities.

Nick Raynsford Portrait Mr Raynsford
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My hon. Friend makes, as always, a very telling point. This is the problem: the NPPF has been put together in a hurry, and the Government’s objective has been brevity rather than clarity, and as a result it is wanting in many areas and will have to be rewritten.

The fourth area I want to highlight where the NPPF is defective is in respect of mixed developments to ensure that we have balanced communities with affordable and social housing as well as market housing. The NPPF’s statement is very inadequate, as the Minister knows only too well. There is a loose reference to “larger scale residential developments” benefiting from mix, but no definition of “larger scale”.

The problem, as the Minister knows perfectly well, is that in the absence of clear definitions and documents such as those that existed under the previous regime—the planning policy guidance statements—individual developers, local authorities and communities will form their own judgments, they will be in dispute with each other and there will be a rise in appeals and litigation. It will be the lawyers who determine the outcome rather than the Government, the local authority or the local community. That is the real risk of the position in which the Government are putting themselves and our planning system. In the absence of transitional arrangements, the need for which the Minister now belatedly accepts, people will reach for the lawyers to try to determine what should happen because plans are not fully prepared and in place in time to be referred to.

In summary, we have a planning system that plays an absolutely critical role in mediating between competing interests, which requires carefully considered judgments based on experience built up over decades. Against that background, it was unwise of the Government to proceed in a hubristic way with a year zero approach of trying to rewrite the rules. I am glad they are now beginning to recognise their mistake and to row back. I hope they will now apply rather more intelligence, thoughtfulness and consultation to preparing their revised NPPF, which should be a better document than the current one.