Neighbourhood Plans

Debate between Nusrat Ghani and James Gray

Tuesday 7th June 2022 Westminster Hall

[James Gray (North Wiltshire) (Con)]

I am most grateful to you for your chairmanship, Ms Ghani, and for promoting me. I am, in fact, just Mr James Gray at this stage, though you never know; it might be in the post. It is most kind of you, none the less.

[Ms Nusrat Ghani (in the Chair)]

I withdraw my Sir from the record.

[James Gray]

It is a great pleasure to serve under your chairmanship. My congratulations to my hon. Friend the Member for Bosworth (Dr Evans) on securing the debate, and on explaining what is often an abstruse, complicated and difficult area, in the clearest and most sensible terms. The way he framed his speech was extremely useful, and it will be well read up and down the country by local authorities and others who are considering neighbourhood planning.

I agree with my hon. Friend that planning should be about how many houses and where. I would add “and when”, because the timing of development is extremely important. I am a strong supporter of neighbourhood planning, and I had the great luck to be here in 2011 when the Localism Act was one of the first to be passed by the coalition Government.

We brought in neighbourhood planning, because we felt that decisions about planning should be given to the lowest possible level. We thought that local people should be allowed to decide what houses they want, where and when, as well as what the rest of the neighbourhood should look like. I am glad that Malmesbury in my constituency was one of the first places to spend an enormous amount of time and effort on bringing forward a neighbourhood plan. It is a very good document that works extremely well, and many other places around the country have based their neighbourhood plans on the Malmesbury example.

Neighbourhood planning is a great idea that I strongly favour, but I have three little reservations, which the Minister might be able to answer in his wind-up. Alternatively, he might be able to include some of these notions in the amendments that are no doubt coming forward to the Levelling up and Regeneration Bill, which, as my hon. Friend the Member for Bosworth said, starts its progress through Parliament tomorrow.

My first reservation is that in neighbourhood planning, there is a presumption in favour of expansion. It is not possible for any neighbourhood to say, “We like it precisely as it is today. We want no more houses. We do not want any change. We would like it to stay as it is.” No matter how beautiful, how perfect or how remote the neighbourhood may be, the neighbourhood plan, by definition, presumes that there will be growth.

The neighbourhood plan people go around and have the following conversation with people in their houses. “How many children have you got? Would you like them to remain in the village?” “Oh, yes, I would.” “Are there any houses?” “No, there are not, because in this village every house costs £1 million, and there are no houses for them at all.” “Oh, jolly good. Three children; that’s three more houses for this village.” The neighbourhood plan writes into itself a presumption in favour of growth. In some places, that makes sense. If there is a way to bring in low-cost housing for local people, that is much to be desired.

None the less, the principle of looking simply at the number of children under 10 in the village and working out from that how many houses will be needed in 20 years’ time is totally flawed. Like it or not, our children tend to go off to the nearest big town or city and will not remain in a remote little rural village. The houses built on that presumption tend to be three, four or five-bedroom houses for executives who come in from elsewhere. It is no longer about low-cost housing for local people. It becomes an unreasonable development of that area. That is my first reservation: neighbourhood planning presumes growth in the number of houses, and I think that is wrong.

My second reservation is perhaps easier to deal with, and my hon. Friend the Member for Bosworth touched on it briefly. Under revisions that were made to legislation in 2018 or 2019, the Government brought in the stipulation that the neighbourhood plan is valid for only two years. That might have seemed a good idea at the time, but it takes about two years to develop a neighbourhood plan. By the time it comes to the consideration of a big planning application of the kind that we see across Wiltshire at the moment, the neighbourhood plan is out of date. There is no point in having it if two years later we say, “It is no longer an important document.” All of the thousands of person hours put into creating a neighbourhood plan in the first place are, by that means, wasted. We should look again at the stipulation of a two-year limit on the validity of a neighbourhood plan. We could perhaps reverse it and say that the neighbourhood plan will be valid unless local people ask for it to be changed, and that it remains valid not for all time but perhaps with a 20 or 30-year limit, so that by and large the neighbourhood plan becomes the rule.

My third reservation about neighbourhood planning is slightly more complicated, but I will take the example of my hon. Friend the Member for Bosworth and try to make this as straightforward as I possibly can. It is a consistent problem in Wiltshire. The five-year housing land supply figures that are used in considering whether an application should be allowed are based on the completion of estates in the area. In other words, if the planning inspector is worried about it and Wiltshire Council is correctly concerned so it turns down an application for a big development, the inspector will then look at the five-year housing land supply figure, which I will come back to in a second, and almost inevitably find in favour of the developer. There is a big presumption in favour of the developer under those conditions. That of course means that Wiltshire Council lands up paying the barristers’ fees, which can often be substantial.

Unsurprisingly, officers have been correctly saying, “We must be very careful as councillors. We must not allow you to turn something down if we believe you will then lose at appeal.” That is where, as my hon. Friend the Member for Bosworth says, the local and the national intertwine in the person of the planning inspector, who considers the rules under the national planning policy framework, and by and large they tend to favour the developer.

I mentioned in passing the notion of the five-year housing land supply figure. This is a complex area of the law, but the law states that the local authority is required under the local plan to make available enough housing land that is readily developable for five years. If that figure is based, as I understand it is, on completions—estates that are completed—we are by definition writing into the law a presumption that the developer will not complete it. We see that all the time in Wiltshire. Developers go out of their way not to complete the development, not to provide the primary school that was part of the section 106 agreement, and not to complete the number of houses. By that means they can say that the development has got 500 houses, that it is not complete, and therefore it does not form part of the five-year housing land supply. That means Wiltshire Council has consistently got 4.6 years and 4.8 years rather than five years, and that means the inspector will then always say, “The developer has it. The developer will get it because Wiltshire has not completed the five-year housing land supply figure.”

The situation is unfair because we have written into the system a presumption in favour of developers not doing what they ought to be doing and completing the estate. A simple change would correct that: instead of the figure being based on completions in an area, it could be based on planning permission granted on land. If every time a developer who had a completable application granted said, “I am going to build 500 houses on that piece of land there and I can demonstrate it can be done”, that should count against the five-year housing land supply, which would then mean that Wiltshire, for example, would have something like a six-year housing land supply and therefore local people could decide where and when they wanted the housing.

At the moment, the neighbourhood plan is a worthless piece of paper. All that happens is that local people say, “We want housing there and there”, but an inspector says, “I am very sorry. With the five-year housing land supply, your neighbourhood plan is a waste of time. It is a worthless piece of paper and I am going to overrule you. And not only that; I am going to give you £100,000-worth of barristers’ fees against the council tax payer”, and of course the council does not want to do that.

Now is the time to change, probably under the new Bill. The Minister might like to consider very carefully this question of the five-year housing land supply, detailed as it may seem. I may be proved wrong—I am no expert in these matters—but there is a straightforward and simple way of correcting things. Instead of the five-year housing land supply being based on completions, it could be based on developable planning permissions granted.

I again congratulate my hon. Friend the Member for Bosworth for calling this excellent debate. It is a terribly important time. We have to supply houses for our people. The Conservative Government’s plan to provide 300,000 houses—if I remember rightly—is extremely good, and we have to find a way of doing that. We have a great problem with homelessness and the lack of housing. The question, though, is where those houses should be and when they should be built.

At the moment, the planning system does not take account of local interests and beliefs and neighbourhood planning. It takes account of nationally set targets, which tend to trump the wishes of local people. I very much hope that during the passage of the Bill, which will start tomorrow, the Government will consider some of these detailed points and change the Bill in such a way as to ensure that the interests of local people are looked after when we decide how many houses will be built and when and where.