Levelling-up and Regeneration Bill (Twenty Fifth sitting) Debate
Full Debate: Read Full DebateRachael Maskell
Main Page: Rachael Maskell (Labour (Co-op) - York Central)Department Debates - View all Rachael Maskell's debates with the Ministry of Housing, Communities and Local Government
(2 years, 1 month ago)
Public Bill CommitteesWelcome to the afternoon sitting. We now come to new clauses 2 to 7, which have already been debated. Does Rachael Maskell wish to move any of the new clauses formally?
We wish to bring them back later in proceedings, at which point we will press them to a Division.
New Clause 8
Industrial support reporting
“(1) The Secretary of State must prepare annual reports on—
(a) the rates of the matters in subsection (2), and
(b) the extent to which the fiscal and regulatory framework supports growth in those matters in areas with rates of poverty, unemployment or economic inactivity above the national average.
(2) The matters are—
(a) new factory openings,
(b) investment in new factory equipment,
(c) the introduction of tailored skills-acquisition programmes, and
(d) the creation of manufacturing jobs.
(3) The first such report must be laid before Parliament before the end of 2023.
(4) A further such report must be laid before Parliament in each subsequent calendar year.”—(Mrs Lewell-Buck.)
This new clause would require the Secretary of State to report annually to Parliament on the rates of, and the extent to which the fiscal and regulatory framework supports, new factory openings, investment in new factory equipment, introduction of tailored skills-acquisition programmes and creation of manufacturing jobs in areas with rates of poverty, unemployment or economic inactivity above the national average.
Brought up, and read the First time.
I beg to move, That the clause be read a Second time.
The new clause is tabled in my name and that of hon. Friends and hon. Members right across the House. Time and again, we have heard from the many Ministers who have sat opposite us during our short time considering the Bill that the Government are committed and serious about levelling up, yet time and again, when the Opposition have suggested amendments to support and strengthen those aims, the Government have voted against them. I hope that the Minister will give serious consideration to new clause 8, as it will actually help the Government.
The Government have struggled to define what levelling up means and, consequently, how its success can be measured. In fact, in their own technical annex to the White Paper, when addressing how they will measure boosts in productivity, pay, jobs and living standards—especially in areas where they are lagging—the Government state that further work needs to be undertaken to refine the metric. I humbly suggest that new clause 8 does just that.
Legislating for a reporting mechanism that is linked to a revival in manufacturing will focus the efforts of this and any future Government into job and skills creation, as well as the promotion of the UK as a manufacturing powerhouse once again. For too long our economy has been reliant on the service sector, where jobs can often be low paid and insecure, especially in coastal communities such as mine—coastal communities, towns and cities that were once the manufacturing hubs of the UK.
In the last 12 years we have seen a marked increase in low rates of economic growth, leading to stagnation in productivity and living standards. That is felt most starkly in the north-east, where Hartlepool, Redcar, Cleveland, Darlington, Newcastle, South Tyneside and Sunderland have all seen significantly decreased manufacturing outputs compared with 2010. The consequence has been an over 50% decrease in apprenticeships in engineering and manufacturing technologies in every single north-east local authority since 2010. Manufacturing makes up only approximately 9% of UK output, compared with 17% in the early ’90s. In other countries, such as Germany, Japan, Switzerland and South Korea, it is nearly as high as 25%.
The UK brand is still powerful; we have the skills and talents to be making and doing so much more. I do not have all the answers, and I know it can be difficult to create the right environment for manufacturing to thrive, but there are plenty of people smarter than me out there who have thought it through and do have the answers. What we need is a Government who are willing to listen to them, and to be held accountable for any action they take. New clause 8 would do that.
I suspect that the Minister will try to explain why the Government do not support the new clause. I suspect that she will explain that there is already provision for measuring and monitoring the missions in the Bill. However, new clause 8 goes further than that: it cuts across nearly every one of the levelling up missions but, more than that, it targets them directly at the very areas that the Bill claims it wants to level up. I look forward to hearing the Minister’s views on the new clause.
I beg to move, That the clause be read a Second time.
This new clause gets to the heart of a frustration for many communities, be it Maids Moreton in my constituency, Ickford or many others. Planning permission is granted—or conceivably in some places not granted—but the community is opposed to the application. Conversely, the community wants it, but it is not given permission. We know that, as it stands at the moment, there is little power for communities to challenge that, short of the judicial review process. We all know how much judicial reviews can cost and how unlikely they are, in many cases, to succeed, because they are dependent on technical legal requirements, as opposed to the wider planning law environment.
The new clause would bring in a community right of appeal. It would mean that a community that felt particularly hard done by as a result of a decision of a planning authority, rather than being forced down the route of judicial review at great—often unaffordable—expense, could lodge an appeal, just as a developer can who is not content with the way that their application has been determined. This is about fairness—about giving those on both sides of the debate the same right of appeal. It is a point of principle that I hope the Government will listen to, and I hope that they find a way of getting this measure into the Bill.
It is a pleasure to see you in the Chair, Sir Mark. I add my support for these measures, because it is incredibly important that power be given back to people in communities. On many occasions, I have seen developers across York move into a space and determine the future of a community without engaging it, even if only in a consultative way. Occasionally, the community may be lucky enough to meet the partners cursorily, yet those developers will derive serious profit from the land. Also, what they place on the land will have huge implications for local housing prices and economic opportunities for the community, but the community is completely disregarded.
That feeds into a wider agenda around people identifying with their place. Across society, we are wrestling with that issue, and with people having a franchise in place. People are feeling more and more disconnected from their locality. It is crucial that we find a way, across communities, to rebalance people’s right to steer through a mechanism. In debate on my earlier amendments, I talked about deliberative democracy. The community should absolutely be involved in processes before they get to a certain point. It is far better to prevent an incident than to try to recover once it has happened. It is important to find a way to give people franchise over their community, particularly when we contrast the harm that could be done with the profit that developing companies and landowners will reap. This huge extraction economy, as I have been calling it, is playing off the localism that people want in their vicinity, and causing a lot of stress and tension, because while it benefit others, it causes the community harm. A community right of appeal will start to tilt the balance back towards local people, which is absolutely essential.
This important new clause gets to the heart of a historical imbalance, injustice and inequity in the planning system. Developers, who tend to have significantly more resources than those who question or oppose a development, have the right to appeal against the local authority or national park that turned down their planning permission, and they have the resources to see that through; but what happens if a community that has opposed a development loses? It may have opposed not development, but the nature of the development proposed. In my constituency, we are very often happy with the number of houses proposed, but outraged that none of the houses is affordable to local people.
The ability to challenge a developer and a decision seems to be at the heart of democracy. To really level up, we must not just level up geographically, but level out the imbalance of power between developers, many of which have substantial resources, and local communities, who, generally speaking, do not.
The new clause is a sensible move in the direction of winning people’s consent to the planning system, so that communities do not feel that things are being done to them. If levelling up is to mean anything, and if devolution is to mean anything, the Government should surely want to embrace proposals such as this.
I thank hon. Members for their contributions. At a high level, the new clause is attractive, and I am tempted by it, but for reasons that I will outline, I am afraid that we will be resisting it. I completely accept the way in which all three of my colleagues have articulated the issues. I am sure that everybody in this room has stories of cases in which, although planning applications have gone through the process, there is a general lack of consent from the community to the manner in which they went forward.
Notwithstanding that, and notwithstanding my acceptance of the points that the hon. Member for York Central rightly made about the importance of franchise of place and embedding local consent in decision making, two fundamental principles mean that I am unable to accept the new clause. First, it is absolutely vital that we retain the principle that those who own land have the right to make applications, and to understand the processes that they can go through. Once that due process has been concluded, those landowners have the right to do as they wish with their land, within the established framework that the Government deem it reasonable and proportionate to apply.
Secondly—I recognise that I am speaking to people with a great interest in this area, and I am probably telling them lots of things that they already know—we would all accept that planning is a long, difficult and convoluted process at the best of times. In another part of my portfolio, I am looking at the reasons why a large proportion of local authorities do not have a local plan; a local plan is one of the processes through which discussion takes place and consent, hopefully, is given to development. That is a multi-stage, multi-consultative process in which people can put forward ideas, and in which those ideas can be tested, and then accepted or not, first in the community, and then with an additional body looking at them. Once that process has concluded, on most occasions, there is the opportunity for planning applications to be debated in principle. The community has the opportunity to get involved at that stage, and then once again in the case of reserved matters.
That is a very imperfect process, and we will all have lots of experience of it not leading to communities liking, or particularly wanting, individual applications. However, it is important to note the multi-stage nature of the process and the multiple elements of consultation in. While I understand the sentiments behind the new clause and the frustrations that have been articulated, and while I recognise that the system is very imperfect, I ask my hon. Friend the Member for Buckingham to consider withdrawing the new clause. As many Members know, and occasionally remark on, I am only six weeks in post, but I have spoken to a number of people who have been involved with these matters for years. I understand that this proposal has been around for many decades, and one of the reasons why it has not been taken forward is the fundamental change it would make to the planning system. I accept and understand the importance of the new clause, but we are not able to accept it.
I appreciate that the Minister was not here for earlier stages of debate on the Bill. Will he consider my suggestion about greater community engagement and involvement, and my point about ensuring deliberative democracy when sites are brought forward for use? It would be a way of trying to address the problem at source, rather than retrospectively, and it would give communities that engagement, franchise, and opportunity to determine how the community develops.
I am grateful to the hon. Lady for her comments. We may have another discussion about deliberative democracy when we debate another amendment in a few minutes’ time.
I am a great advocate of local communities having as much involvement in these discussions as possible. It is a shame when councils—I experienced this in North East Derbyshire a number of years ago—do not emphasise the discussion at the appropriate point, and people do not feel as involved as they need to if they are to understand what happens later in the process. I hope that local councils take opportunities to be as broad and open in their discussions as possible. I am also a big fan of neighbourhood plans, because they give communities the opportunity to be more involved in discussion. There are parts of the system that can be used at the moment, though I respect and acknowledge the challenge of involving local communities in it. I ask my hon. Friend to withdraw the new clause.
I welcome the Minister’s comments, and as I acknowledged, it is a difficult issue to navigate. It almost reopens some of the devolution questions. It is an anomaly that many London colleagues, certainly on the Conservative Benches, feel and I welcome the Minister’s commitment to work with them and me. Like him, I was a London borough councillor just a little way up the river from him for 12 years, some moons ago, and felt the same pressures. If he is willing to work with London colleagues to find a satisfactory way through this, I am content to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 34
Local government capital investments: economic appraisal
“(1) This section applies to local government capital investments of a value of £2 million or more.
(2) Before making an investment to which this section applies, a local authority must—
(a) commission an economic appraisal of the investment, and
(b) publish the findings of that appraisal.”—(Rachael Maskell.)
This new clause would require local authorities to commission, and publish the findings of any capital investment of the value of £2 million or more.
Brought up, and read the First time.
I beg to move, That the clause be read a Second time.
It is a pleasure to move the new clause and to give the hon. Member for Buckingham some respite. The new clause relates to fiscal responsibility in local government. Without proper viability being sought, local authorities can pay millions of pounds on projects and never reap the return. That is why the new clause relates to capital investments and economic appraisals, which should be undertaken and understood, but without a Green Book-style appraisal, local authorities can end up paying and developers and landowners gaining, with ultimately no reward and benefit to the local community. The new clause is designed to ensure that the finances on any project are transparent and for the benefit of local people. It would ensure that there is gain for all and not ultimate loss, not least given that we are talking about the use of public resources. That is why the new clause is important.
The case study to which I want to refer particularly is that of the York Central site. The cost of bringing that site forward is now believed to be £200 million of public funding. As that project moves forward, more and more is being demanded from public sources to fund it, and yet the local authority may never see a return on that investment. City of York’s infrastructure investment was planned to be around £35 million, but it has now been given an estimated debt cost of £57 million based on April interest rates, which will clearly be significantly higher now.
The Department for Levelling Up, Housing and Communities has also put in £77 million and it is believed that more than £50 million will have to come through the Mayor’s budget once it is approved and in place—we are expecting that to be in 2024. In a briefing, councillors were told that the council would need to put in £85 million and debt costs to fill the gap, but we could now be talking about nearer £100 million rather than the £35 million once rejected. As a result, it is necessary to weigh up the viability of the site not for the developers, as set out, but for the local authority. It is that check that is not required for such a project today, but it is really important, not least because local authorities simply do not have the necessary margins and, as a result, have to cut back on vital services to fund such capital projects.
My amendment therefore calls for prudence. On sites where any capital investment over the value of £2 million is made, there must be an economic appraisal commissioned and then published assessing the financial viability of the site to the authority. York Central has been developed for housing, so it will not reap the opportunities that a larger business owner could bring in nor those to do with council tax, as most of the properties being developed will be for investment, not for local residents to live in. They will either be empty units, leading to a cost to our city, or will be turned into Airbnbs, a matter that I will turn to later. Of course, Airbnb falls under the thresholds of flipping the property, not paying council tax and not paying business rates either, so the local authority loses millions of pounds as Airbnbs dodge the system.
At a time of significant austerity in local government, it is crucial that more scrutiny is given to the costs it has to expend on sites. My amendment simply calls for proper governance over finances and, at a time when the whole nation is looking at how Governments at all levels are more prudent with the spending of their money, it is right to bring forward such a measure to ensure that public money is spent in a way that will see its return and will be for the benefit of the people, not the developers and landowners who ultimately gain from such development.
I am grateful to the hon. Member for York Central, who always talks incredibly passionately about her constituency. I thank her for bringing her experience of the capital project she mentioned to the Committee. As a Conservative, my ideology tells me that ultimately we always need to get best value for taxpayers’ money.
The Government recognise the importance of local capital investment for economic growth, improved public services and meeting our priorities, such as on housing delivery. That is why we need a robust system that supports the benefits of local decision making and allows sensible investment while safeguarding taxpayer’s money and protecting the local government finance system. Unfortunately, in recent years a small minority of local authorities have taken excessive risks with taxpayers’ money; they have become too indebted or have made investments that have ultimately proved too risky. That is why we need to ensure that the system is fit for purpose.
The changes made through clause 71 provide a flexible range of interventions for the Government to investigate where capital practices may have placed financial sustainability at risk and to take steps to remediate issues if necessary. We think that that is sufficient to address risk.
We have recently taken a number of steps to improve the transparency of local authority capital investment and borrowing. Last year we completed our data survey, which is designed to extract new data from local government and fill our identified information gaps. As of February 2022, we amended our regular statistical returns to obtain more detailed data on local authority investment activity. That will provide the Government with the clarity they need on the performance of investment assets as well as the location and risk management of investment properties.
I am grateful for the Minister’s contribution. However, will she acknowledge that even if the viability of a site stands up, some of the investors in it may not? What ultimately happens is that local authorities become the backstop for financing and have to fill the gaps in order for those sites to be brought forward. As a result, the benefit goes to the developer and the risk sits with local authorities.
I have certainly heard what the hon. Member has said, and we all have examples from our own constituencies and authorities. The current legislation and statutory codes allow local government to appraise risks as they stand. Alongside that, the monitoring and provisions that we are seeking through clause 71 will provide central Government with assurance. We think that the new clause is unnecessary, and I ask the hon. Member to withdraw it.
I am grateful to the Minister for giving way again. Reflecting on the example that I gave, will she say how her Department would scrutinise the funding of sites such as the one in York Central to assess the viability of the local authority’s having to make increased contributions? Has the Department done that?
I will be happy to follow up with the hon. Member on that point in writing.
I thank the Minister for her response, but I am not satisfied that what she says will be sufficient to ensure that there are safeguards on local public resourcing that is brought forward on a site, particularly one as important as the York Central site, where eye-watering sums of money are being spent. I will therefore read with care what she writes to me to see whether there are sufficient safeguards. If I am not satisfied, I will want to return to this issue at a further stage of the Bill, but for now I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 38
New use classes for second homes and holiday lets
“(1) Part 1 of Schedule 1 of the Town and Country Planning (Use Classes) Order 1987 (S.I. 1987/764) is amended as follows.
(2) In paragraph 3 (dwellinghouses)—
(a) for ‘whether or not as a sole or’ substitute ‘as a’, and
(b) after ‘residence’ insert ‘other than a use within Class 3B)’.
(3) After paragraph 3 insert—
‘3A Class C3A Second homes
Use, following a change of ownership, as a dwellinghouse as a secondary or supplementary residence by—
(a) a single person or by people to be regarded as forming a single household;
(b) not more than six residents living together as a single household where care is provided for residents; or
(c) not more than six residents living together as a single household where no care is provided to residents (other than a use within class C4).
Interpretation of Class C3A
For the purposes of Class C3A “single household” is to be construed in accordance with section 258 of the Housing Act 2004.
Class C3B Holiday rentals
Use, following a change of ownership, as a dwellinghouse as a holiday rental property.’”—(Tim Farron.)
This new clause would create new class uses for second homes and short-term holiday lets.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
With this it will be convenient to discuss new clause 68—Review of Permitted Development Rights—
“(1) The Secretary of State must establish a review of permitted development rights under Schedule 2 of the Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended).
(2) The review should include an assessment of:
(a) the past effectiveness of permitted development rights in achieving housing targets;
(b) the quality of housing delivered under permitted development rights;
(c) the impacts of permitted development on heritage, conservation areas and setting;
(d) the estimated carbon impact of the use of permitted development rights since the expansion of permitted development to demolition;
(e) the relative cost to local planning authorities of processing permitted development compared to full planning consents;
(f) potential conflict between existing permitted development rights and the application of national development management policies;
(g) the impact of permitted development rights, or other policies in this Bill designed to deliver streamlined consent, on the efficacy of levelling-up missions.
(3) The Secretary of State must publish a report of the recommendations made by this review no later than twelve months after this Act comes into force.”
This new clause would commit the government to carrying out a comprehensive review of permitted development rights within 12 months of the Bill securing Royal Assent.
I rise to move new clause 43 and to support new clause 68. They mirror one another and therefore emphasise the need for a review of permitted development rights, which are a major issue in planning.
New clause 43 calls for a change in the Town and Country Planning (General Permitted Development) (England) Order 2015. It would require a review to be published, within a year of the Bill becoming law, on the effectiveness of permitted development rights in achieving housing targets. Much planning permission is granted on the basis of balancing the economic viability of a site in favour of developers. Planning authorities may stipulate the framework around that, but it is not uncommon for developers to come back to authorities pleading that the site does not hold viability and seeking to change the tenure of units planned for it.
Furthermore, we have a housing crisis. The Government are right to want to fix it by setting targets for the number of units to be built, but if those units are unaffordable to a local population, or if they are sold as investment properties—as assets—and remain empty or are converted into short-term holiday lets, the housing demand is not addressed. Worse, property prices can heat up the market, resulting in a greater pool of people who are unable to access housing, which is making things far worse.
By allowing such a liberalisation of planning, not least for developers, the Government are creating a worsening situation. Rather than resolving the housing situation, they are pushing people out of their localities, as people cannot afford to either buy or rent. Now, with the economic crisis, they cannot get a mortgage either, but cash buyers can scoop up properties and then drive revenue through holiday lets. In York, we are seeing that in spades. York Central promises to be such a site of investment properties rather than homes, with the wrong housing in the wrong place heating up the market and exposing our city to even greater numbers of short-term holiday lets. This has to stop.
My new clause would enable a review, which would include an examination of the quality of housing delivered. I cannot tell hon. Members the scale of shoddy workmanship that we are witnessing. Developers hand their properties over to property management companies and then deny responsibility. Water ingress is common. Sinks are fitted just with silicone, and not properly plumbed in. Wiring is half done. Bin stores are turned into inaccessible bike shelters. The list of unresolved complaints is endless.
York is naturally concerned about its heritage and conservation sites, and we want to ensure that its archaeology is preserved, too. On the environment, we know that new developments help to solve the carbon crisis rather than add to it. If measures are not reviewed and taken seriously, we know that transport planning can be poor, as we are seeing on the York Central site. That will have an impact on the rest of the city. I have already mentioned the thorny issue of the cost to local authorities of the mess that is being created.
Reviewing permitted development rights, as the new clause seeks to do, is about addressing all the consequences, foreseen and unforeseen, of rushing planning through, not least at a time when planning departments across our communities are significantly under-resourced and under-powered. The new clause seeks a review, which is needed, and we want to see action following on from that. If the Government committed the resources and time needed to carry out a review of a such a significant issue, they could make such a difference to communities up and down the country. The review would ultimately be of real value to the Government, by ensuring that the planning system is working effectively for the purpose for which it is designed.
I rise to speak to new clause 68, in my name and those of my colleagues, and to speak in support of new clause 43. I congratulate my hon. Friend the Member for York Central on tabling new clause 43 and on her powerful remarks, not least about the contribution of the extension of permitted development rights to the affordability pressures in urban parts of the country such as hers.
It is a matter of public record that the Opposition have long-standing concerns about the detrimental impact of the liberalisation of permitted development rights on local communities. The Government have always justified the progressive liberalisation of those rights on the grounds that it removes unnecessary administrative impediments to development in the planning system. There is no doubt that the extension of PD rights since 2013 has boosted housing supply; estimates suggest that it has led to a net increase of around 100,000 dwellings. However, the increased supply secured as a result of deregulatory measures over recent years, and the significantly reduced control of rural and urban land that they entail, has come at the cost of a loss of affordable housing and infrastructure contributions, and an increase in poor-quality housing, with obvious implications for public health and wellbeing.
Evidence of the negative impact of the extension of permitted development for the conversion of office, commercial and industrial units to housing is now ubiquitous. A report published by the Ministry of Housing, Communities and Local Government in July 2020—at the same time, incidentally, that Ministers were setting out plans for a further extension of PD rights—found that, in comparison with schemes created through planning permission, permitted development schemes were far less likely to meet national space standards and far more likely to have reduced access to natural daylight and sunlight.
Members may well have come across some of the more well-publicised examples of poor-quality PD schemes. Those include the Wellstones site in Watford, which involved the conversion of a light industrial building into 15 flats, seven of which had no windows at all; 106 Shirley Road in Southampton, a former electric and gas fire shop, which was converted into six studio flats, each roughly the size of a single car parking space; and Terminus House in Harlow, a former office block converted into hundreds of homes, many with just one openable window, which has rightly been described as a “human warehouse”.
I know that Hansard will demonstrate the context. I was saying that no system is perfect. I was not making any comment on individual PDRs, but I have said to colleagues on both sides of the Committee that I am happy to discuss individual areas where they have concerns, outside of a proposal for every single one of the 155-odd PDRs to be reviewed in detail within a timeframe that is not particularly proportionate. If there is a problem, let us talk about it in individual areas, but this approach is disproportionate. I hope that the Opposition will consider withdrawing the motion and having a separate discussion about specific instances that have been raised, and others that they are concerned about.
I listened carefully to the debate, and I am grateful for all the contributions to it. The Minister will know that we are not putting forward a plan to tear up the whole PDR framework; we are simply calling for a review, as we believe is appropriate. After a scoping review, we would determine which points to drill down on, to ensure that we are looking at the parts of the system that are simply not working. That is the intention behind the new clause. Although it has a broader scope, it homes in on some of the challenges in the system. I therefore do not think that the proposal to put a scoping exercise in the legislation is unreasonable. I welcome the Minister’s offer of dialogue on these matters, which clearly are significantly impacting our communities. Dialogue will be really important. I will not press my new clause to a vote, but I will certainly take up that offer.
As I think the Minister will expect, I am naturally disappointed by his response. There are times when hiding behind the fact that there are trade-offs in balancing problems is appropriate; there are times when it is just a fig leaf, and not doing anything about a glaring problem. His own Department has produced evidence that it is not just a problem at the margins. I encourage him to go and see some of the sites being allowed on appeal because of national planning policy. It is not a problem at the margins; it is endemic, and intrinsic to the liberalisation of PD rights that has been allowed over the past nine years.
It is a straw man for the Minister to say, “We can’t do this, because it’s reviewing all PD rights.” Uncontroversial elements of PD can be dealt with very quickly; we are talking about the problematic aspects and the expansion of PD rights over the past nine years. It is causing a huge amount of human suffering, if nothing else. For that reason, not least to signal the Opposition’s intent to deal with this matter if and when we form the next Government, I will press new clause 68 to a Division when the time comes.
I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Ordered, That further consideration be now adjourned. —(Nigel Huddleston.)