Open Public Services White Paper

Debate between Nick Raynsford and Oliver Letwin

Monday 11th July 2011 Commons Chamber

[Mr Letwin]

My hon. Friend is right that we have to maintain consistency. If we are going to achieve real choice and real power for those who are served by public services, we have to allow for diversity of provision and to be on our guard always to ensure that those who can enter the market are able to do so. That is one reason why the White Paper contains specific provisions for redress where particular providers find that they are being kept out of the market. One of the techniques that we are using for doing that was developed by the previous Government. The competition and co-operation panel and its rules, which were set up by the last Labour Government, will apply in the NHS. That is the right kind of system, and we need to replicate it in a whole series of other domains where diverse providers currently have no redress if they are prevented from entering the market.

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

The right hon. Gentleman made a lot in his speech of the potential for local community groups to take over assets of community value and seize control of planning in their areas. He will be aware that there are community groups in various areas of the country—I would remind him of the route of High Speed 2—that are not necessarily in favour of development and may wish to use enhanced powers to stop it. He will also be conscious that the Chancellor said in his Budget speech that in such instances of national economic development interest, the default planning position should be to say yes. Who will prevail in a conflict between a community wanting to stop a development and the Chancellor wanting it to proceed?

[Mr Letwin]

The right hon. Gentleman is too much of an expert to need me to tell him this, but I will tell him because he asks for it. We have, of course, established a two-level system. For most planning decisions, we hope that the neighbourhood will take charge by engaging in neighbourhood planning. We believe that the incentives that we have built into the financial system—including the ability to get a meaningful proportion of the community infrastructure levy paid to the neighbourhood if it has more housing and development in its area—will lead neighbourhoods on the whole to prefer development. The presumption of sustainable development means that their neighbourhood plans will have to include development of an appropriate kind in order to pass muster. There will be an assessment of local housing need that contributes to that, which plans will have to observe.

However, nobody is going to pretend in our Government, any more than in the right hon. Gentleman’s Government, that any neighbourhood will welcome a nuclear power station just next to it or a railway line running straight through it. Of course there will be objections in those cases, which is why we have maintained and democratised the very system that he and his colleagues set up—because they, too, operated a two-level system—in order to accelerate planning applications for major pieces of national infrastructure. There is no disagreement between us and the right hon. Gentleman on that, and there is no reason for him to invent one.