Business and Planning Bill

Richard Fuller Excerpts

2nd reading & 2nd reading: House of Commons
Monday 29th June 2020 Commons Chamber

[Alok Sharma]

First, these are of course temporary measures. A 90-day rolling review, which I think the hon. Lady is proposing, would undermine the certainty that we are giving businesses in terms of these particular measures. She will know, however, that should the Government wish to extend any of the measures, they will be subject to made affirmative or draft affirmative procedures, so they will come before the House before there is any opportunity to extend them further.

I now return to the issue of trying to get the construction sector moving. In 2018, this sector represented almost 9% of our GDP. Lockdown has had a profound impact on construction sites across the country. We estimate that almost 1,200 unimplemented major residential planning permissions, with capacity to deliver over 60,000 homes, have lapsed or will lapse between the start of lockdown on 23 March and 31 December this year. Therefore, the Bill introduces powers to extend these planning permissions and listed building consents to 1 April 2021. This will be automatic for permissions that have not lapsed at the point that these measures come into force. Lapsed permissions can be reinstated and can benefit from the same extension, but subject to necessary environmental approvals.

We will also make it quicker for developers to apply for longer construction site working hours. This will help to facilitate safe working—for example, by staggering workers’ hours—and to make up for lost progress. Applications will be concluded within 14 days. This measure does not apply to applications from individual householders. Local authorities retain discretion and can refuse applications where there would be an unacceptable impact. Again, this is a temporary measure. Extended hours can only last up until 1 April 2021, unless extended by secondary legislation.

[Richard Fuller (North East Bedfordshire) (Con)]

Across my constituency, there is already tremendous local sensitivity about excessive developments, the planning process and some of the procedures for public participation in the process being curtailed—there are virtual meetings and sometimes council executives make decisions on their own. Will the Secretary of State assure me that the Bill will not limit public participation in anything that might be the result of an extension or expansion of existing planning permission or indeed a new planning permission?

[Alok Sharma]

No, it will not. I will talk a bit about hybrid appeal proceedings, and I think my hon. Friend will find that helpful.

There are two further planning measures that relate to the new spatial development strategy for London and hybrid appeal proceedings. The Mayor of London will shortly publish the new spatial development strategy, setting out plans for new homes for London. The Bill temporarily removes, until 31 December, the requirement for the strategy to be available for physical inspection and to provide hard copies on request. That ask from the Mayor of London will help to address practical challenges from social distancing.

Social distancing has also constrained the Planning Inspectorate’s ability to conduct hearings and inquires, and a backlog has been growing. Through the Bill, we will enable the inspectorate to combine written representations, hearings and inquiries when dealing with appeals. That change was recommended by the independent Rosewell review. A recent pilot undertaken on the review measures reduced average decision-making time from 47 weeks to 23 weeks.

[Alok Sharma]

As I said, these measures will not relate to residential applications that have been made. The whole point is to get the construction sector moving. I have talked about a range of measures that we have set out for the sector, and I hope that more SME builders will be able to take advantage of them.

The Bill will enable lenders to continue issuing bounce-back loans quickly and at scale. It will retrospectively disapply the unfair relationships provisions in the Consumer Credit Act 1974 for lending made under the scheme. Reflecting current circumstances, the bounce-back loan scheme allows lenders to rely on self-certification from the business that it meets the eligibility criteria for the scheme and can afford to pay back the loan. It also provides for simpler information disclosure requirements to the borrowers. That will ensure that small businesses can continue to access the financial support that they need without undue delay.

[Richard Fuller]

I am very grateful to the Secretary of State for giving way. I want to take him back to the point about public participation, because it is such a sensitive area. He said that in clause 20, the procedures for planning proceedings can be altered. Either now or in Committee, can he clarify who will be making those decisions and what impact that will have on public participation in relation to housing developments that might have a dramatic impact in the area? I want to be clear about whether the Bill will affect that dramatically.

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[Edward Miliband]

My hon. Friend in her customary eloquent way anticipates my next point. We have seen—and I am grateful to my hon. Friend the Member for Croydon North (Steve Reed), the shadow Secretary of State for local government, for giving me the exact figures—£10 billion of costs loaded on to local authorities during this crisis, and only £3.2 billion provided by Government, despite the Secretary of State for Housing, Communities and Local Government saying that the Government would stand behind councils and give them the funding they need. We have another Bill that puts yet more pressure on local authorities, but with no clear plan about how they will be reimbursed, and our new clause 5 speaks to that issue.

We also welcome the changes to transport licensing and the removal of the unfair relationship provision in the Consumer Credit Act to ensure that bounce-back loans are more easily accessed.  I am grateful to the Secretary of State for the detailed discussions that we had about that particular provision.

Those are the main provisions of the Bill and, as I said, there is cross-party agreement on them. Obviously, there will be detailed discussions in Committee. However, I have to say to the Secretary of State and the House that we are under an illusion if we think that the measures in this Bill will go much of the way towards addressing the crisis that we face: 4 July represents a reopening of pubs and restaurants, but it does not represent recovery.

It is important to note that many sections of our economy employing hundreds of thousands of people, including gyms, leisure centres, live entertainment venues, beauty salons, conference facilities, night clubs and swimming pools, will still not be able to open for public health reasons. We support those public health decisions. Other parts of our economy will open only with severe restrictions, including large parts of our hospitality industry, which employs 3 million people or one in 10 of the whole workforce. The British Beer and Pub Association says that 25% of pubs will not be able to reopen even at 1 metre. The Government themselves acknowledge, in the scientific assessment of the change to 1 metre, that the hospitality industry will lose 25% to 40% of its revenue even at 1 metre distancing. That revenue translates into a risk to hundreds of thousands of jobs. Live performance remains prohibited, which affects the theatre sector, employing 290,000 people. Manufacturers, too, are reeling from the fall in domestic and worldwide demand.

I say all that not to cast doubt on the public health measures being taken or to speak against the Bill, but to point to the wider context, which is that the Government are taking a one-size-fits-all approach to the furlough, for example, demanding an employer contribution from August and a cliff edge at the end of October. The shadow business Minister, my hon. Friend the Member for Manchester Central (Lucy Powell), received this letter from a venue in Manchester in the past week: 

“As the Government furlough scheme draws to a close, I will be making very difficult decisions this week so that I can give notice during the period of 80% furlough contribution to commence a redundancy consultation with the majority of my venue staff. With zero income and no appropriate financial Government support, I have no choice but to make these decisions.”

We are not asking the impossible of Government; we are saying, “Look at what other countries are doing”, whether that is Spain, Italy, New Zealand, France or Germany. They are taking a sectoral approach to the furlough. They are saying that specific sectors are more affected by the public health measures and that, therefore, the economic measures have to match that.

[Richard Fuller]

The shadow Secretary of State will be aware that the Government measures taken across the economy, which he has welcomed, already raise issues of fairness between those who fall one side of the line and those who fall on the other side. What is his proposal for those sectors? Some businesses will fall just to one side, but who will be the expert to understand who fits where? I am all up for it if he can reconcile that, but there are risks, are there not?

[Edward Miliband]

Of course there are, but just because we cannot do everything does not mean that we should not do anything. The grants programme that the Government introduced was done by sector—retail, hospitality and leisure. The hon. Gentleman makes an important point about boundaries, and some business organisations would raise that issue, but I worry that technical concerns about boundaries, which have been overcome for the grants scheme, stop us doing something that makes real sense.

--- Later in debate ---

[Christopher Pincher]

The hon. Gentleman mentions breweries. He knows that the Bill largely covers England and England and Wales. It does not cover other areas of our devolved community. However, I can tell him that by ensuring that breweries’ customers open up and can sell alcohol to their customers, we are helping breweries around the country and in Northern Ireland, whether they are big or small.

As hon. Members have heard, activity is picking up in the construction industry, another sector that is an engine of our economy and that is keen to get Britain building again. I pay particular tribute to construction workers up and down our country who worked through the pandemic and the businesses that got their sites back up and running in these difficult circumstances. I am pleased to support their efforts through the safe working charter, which my Department developed with the Home Builders Federation.

However, we know that there is more to do. Home starts and completions are well down on last year, with planning permissions for at least 60,000 homes hanging in the balance. That is why we are speeding up the planning system through the temporary measures in the Bill as part of a wider reform to ensure that it is fit for the 21st century. That means greater flexibility for builders to seek extensions to site working hours to facilitate social distancing, which will support the sector’s safe economic recovery. We want work on construction sites to resume swiftly and safely, but I recognise the potential effect of the change on residents when we are all spending more time at home. Several Members, including my hon. Friend the Member for Kensington, raised that point.

I encourage builders to work constructively with local communities and councils to minimise disruption. I want to be clear that councils will retain local discretion over the decision-making process. They also have legal duties regarding statutory nuisance, which continue. They know their areas best and that is why they will continue to have discretion in their local decision-making processes. They are well placed to judge the effect on local businesses and residents, and where there will be an unacceptable impact, they retain the discretion to refuse extended hours.

We are also enabling the extension of planning permissions that have expired since the lockdown began or are about to expire, saving literally hundreds of projects. This is at the request of local authorities and the construction sector. I recognise that there is a risk of schemes being delayed further if existing permissions are extended too long, which is why this will be only a temporary measure. Our extension date of 1 April 2021 strikes the right balance between giving certainty to the sector and ensuring that there are no further undue delays to new developments.

Another significant measure, which will help us double the pace of appeals while maintaining fair decision making, is the proposal to enable the Planning Inspectorate to advance appeals using more than one type of procedure. When we tested this hybrid approach last year, we more than halved the appeal time. This change, backed by all parties in the planning system, will be introduced on a permanent basis. In making these changes, it is important that we bring communities with us, and I am satisfied that, by agreeing through the Bill to temporarily remove the requirement for copies of the London plan to be made available for inspection at premises and on request, and instead enabling inspection free of charge by electronic means, the interests of transparency and accountability will be served.

[Richard Fuller]

I am grateful to my right hon. Friend for clarifying a point that I raised earlier during the Secretary of State’s speech. I would just like to ask him for clarification on a slightly more detailed point about housing developments outside London, particularly those in my constituency. It is about the process in the Bill for the public themselves having the opportunity to review any application. What changes, if any, might occur to their rights to make representations on applications?

[Christopher Pincher]

I do not believe that this Bill does anything to disadvantage anybody in their right to fair access to information. Some of the changes that we have already made allow people to take part in planning committees virtually. Not everybody wants to go down to their town hall at 10 o’clock on a wet February evening if they can, quite literally, dial into those planning committees and see what is going on. They have access in a way that they would not ordinarily have.

I make this final point with reference to my hon. Friend’s point and the changes that we are making to the Planning Inspectorate’s processes. This particular proposition was made by Dame Bridget Rosewell as part of her recommendations. It was one of the 22 recommendations that she made, and it will allow planning inspectors to use a variety of tools consecutively to speed up their adjudication on decisions, which is good for everybody involved in the process. The average time has already been cut from 47 weeks to 23. We believe that this mechanism will speed up adjudication on planning decisions even more, and that is to the betterment of all involved.

This Bill could not be more important for reopening our economy, for championing firms large and small and for helping people live their lives again, with safety still paramount. Let us ensure this Bill’s swift passage, as I think all hon. Members have said in their contributions, and get Britain back in business. I commend this Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Committee of the whole House (Order, this day).