Neighbourhood Planning Bill

Sajid Javid Excerpts

2nd reading: House of Commons & Money resolution: House of Commons
Monday 10th October 2016 Commons Chamber

[The Secretary of State for Communities and Local Government (Sajid Javid)]

I beg to move, That the Bill be now read a Second time.

I welcome the hon. Member for Erith and Thamesmead (Teresa Pearce) to her new position. I wish her and her team all the very best.

I have been a Member of this House for six-and-a-half years. In the countless contacts I have had with my constituents over that time, one issue has come up more often and more consistently than any other: housing. I am sure other hon. Members would say the same. Whether it is a lack of affordable accommodation, standards not being met, calls for housing to be built on one site or campaigns against it being built on another, the subject dominates inbox, postbag and surgery alike. Meeting that challenge requires action on many fronts, but at the heart of it all is the need for a clear, fair and, above all, effective planning system.

My two Conservative predecessors at the Department for Communities and Local Government did more to reform planning than all their Labour counterparts combined. More than 1,000 pages of policy was reduced to just 50 and the Housing and Planning Act 2016 did much to streamline and speed up the process. It is a record of real action and real change that is already paying off. The year 2015 saw more planning permissions delivered than in any year since records began. Almost 900,000 new homes have been delivered in England alone since the start of 2010.

As I said just last week, however, there is much more to do. The Prime Minister has been absolutely clear that, if we are going to build a Britain that works for everyone, we need a housing market that works for everyone. That means doing still more to tackle the housing shortage by giving communities greater certainty over development and reducing the time it takes to get from planning permission to completion. This Bill will help us to do just that.

[Sir Edward Garnier (Harborough) (Con)]

I am most grateful to my right hon. Friend for giving way so early. He is quite right about the inbox: this subject dominates so much of the dealings we have with our constituents. There are two areas the Bill does not cover that I think it ought to. I wonder if, over the course of the next few weeks, he and his fellow Ministers could consider whether the Bill should be amended to deal with them.

The first point is that inspectors, on dealing with developers’ appeals, take into account the number of planning permissions given but not the number of housing starts. Planning permissions are in the hands of the district planning authority, but housing starts are in the hands of the developer. If the developer will not make use of the planning permission, it is unfair on the district council and unfair on the affected neighbourhood that does not want to see the planning go ahead.

Secondly—I am sorry, Madam Deputy Speaker, I will be very, very quick indeed—in relation to matters going up to an inspector, I gather from the Minister for Housing and Planning that they cannot be called in once they have gone to the inspector, but they ought to be if there is to be any even-handed justice and equality of arms.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Just before the Secretary of State responds, my patience with and tolerance of the extremely long intervention by the right hon. and learned Gentleman is not to be taken as a precedent.

[Sajid Javid]

My right hon. and learned Friend makes some very good points. The first part of his question was whether we might be able to take some of them into account in the Bill. I anticipate that at some point there will very likely be some amendments to the Bill. If that is the case, they will of course be discussed properly at that time. He made some suggestions that I will think about carefully, in particular regarding what some people call “landbanking” by certain developers.. I talked about that very important point last week in my party conference speech. It is something on which we will be taking further action.

[Norman Lamb (North Norfolk) (LD)]

Might the Secretary of State also consider amendments that focus on the sustainability of new housing, in particular moving towards carbon-neutral housing, which also has the benefit of reducing cost to occupiers because of lower energy costs?

[Sajid Javid]

The right hon. Gentleman will know that several initiatives are already in place to make sure that new development is sustainable. A review is looking at what further measures we could take.

Neighbourhood plans are a key part of the Bill. Not all planning takes place at local authority level. Neighbourhood development plans, which were introduced in 2011, have proved to be extremely effective. Far from being a so-called nimby’s charter, some neighbourhood groups with plans in force have planned for housing numbers above the number set by the local authority for that area. Those communities have, on average, planned for 10% more homes. Neighbourhood planning gives residents and businesses greater certainty about developments in their area, ensuring that they have a choice on how best to meet local housing needs.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

The Bill contains some excellent provisions on neighbourhood planning, but neighbourhood plans are predicated on a local plan being in place. I represent two authorities: one has a local plan and the other does not. Will the Secretary of State, either through the Bill or otherwise, take strong action against those authorities that do not have a local plan in place?

[Sajid Javid]

My hon. Friend makes a good point about the lack of consistency in approach by neighbourhoods. So far some 2,000 community groups have got together, out of which some 240 neighbourhood plans have been adopted. We would like to see a lot more, and these measures will achieve just that. My hon. Friend will know that giving communities greater influence over the planning process can reduce the number of objections to planning applications so that more homes can be built more quickly.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

The introduction to the Bill says that one of its central aims is strengthening neighbourhood planning and giving local people more certainty over where homes will be built in their area. The Minister for Housing and Planning has said that putting power into the hands of local people to decide where development occurs is a key objective. The Secretary of State will be aware that Birmingham’s Labour council wishes to build 6,000 homes on the Sutton Coldfield green belt and no account has been taken of the virtually unanimous opposition of the royal town’s 100,000 residents, who have been completely disfranchised. Will he agree to take account of the unanimous view of the newly elected Sutton Coldfield town council, who are adamantly opposed to this on behalf of the 100,000 people they represent?

[Sajid Javid]

rose—

[Madam Deputy Speaker]

Order. I have already made it clear that the first long intervention was not to be a precedent. This second long intervention is definitely not a precedent. I have been patient because this is the first day back, but perhaps Members who have served several decades in the House have forgotten that interventions have to be short. We have many Members wishing to speak this evening and I will have to impose a time limit, so it is simply wrong for interventions to take so long. Short interventions make good debate!

[Sajid Javid]

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) has spoken passionately about this issue before. I listened to him then and I have just listened to him again, and I will of course reflect on what he has said. I am sure he will understand that it would not be appropriate for me to talk about a specific planning application, but I will reflect on what he has just shared with the House.

The Housing and Planning Act reforms to speed up and simplify the process came into force just a few days ago, and the Bill will strengthen the process still further. It will make it easier to update a neighbourhood plan as local circumstances change. It will give communities confidence that advanced neighbourhood plans will be given proper consideration in planning decisions, and it will give neighbourhood plans full legal effect at an earlier stage.

Of course, there is no point giving control to communities if they do not know that they have it or lack the skills to use it. So the Bill will also require planning authorities to publish their policies for giving advice or assistance to neighbourhood planning groups. It will also allow the Secretary of State to require planning authorities to keep those policies up to date. These provisions will make the neighbourhood planning process fit for the future. They will make it more accessible for everyone, and they will ensure that neighbourhood plans are fully respected by decision makers.

[John Mann (Bassetlaw) (Lab)]

Should the Bill become an Act, will there be any circumstances in which a local authority can overrule a neighbourhood development plan that has been duly endorsed by said authority?

[Sajid Javid]

The hon. Gentleman may be aware that for a neighbourhood plan to become effective it needs to be adopted. It will be looked at by the inspector and a local referendum will be held. As I mentioned earlier, some 240 plans have gone through that process and, when that happens, they need to be given due weight in the consideration of planning decisions.

[John Mann]

I thank the Secretary of State for giving way again. He will know that Bassetlaw has more local plans in process and agreed than anywhere else, so we do know a little bit about them. If he is saying that a local council or the Secretary of State can decide to overrule a local community that has been through a huge, state-funded consultation, had a referendum and decided where the housing will go, what is the point?

[Sajid Javid]

The hon. Gentleman will know that once a neighbourhood plan is adopted, it becomes statutory and is taken into account when planning decisions are made. It is not a question of a local authority overruling a neighbourhood plan; once it is adopted, it is part of the local plan, so they are part of the same package, when it comes to making those decisions. Local authorities do not have the right to overrule a plan once it has been adopted.

Local and neighbourhood plans are vital tools for delivering new planning permissions. If we are to tackle the housing deficit, it is crucial that shovels hit the ground as soon as possible once permission has been granted for a development. There are a number of reasons why that does not always happen. One is because too many planning authorities impose too many pre-commencement conditions that unreasonably hold up the start of construction.

Of course, conditions can play a vital role. They ensure that important issues such as flood mitigation and archaeological investigation are undertaken at the right time. That is not going to change, but pre-commencement conditions should not be allowed to become unreasonable barriers to building. Not only do they delay the delivery of much-needed houses, but they create cash-flow issues for builders—something that is particularly problematic for smaller builders and new entrants to the market. To tackle this, the Bill reflects best practice by stopping pre-commencement conditions being imposed without the written agreement of the applicant. It will also create a power to restrict the use of certain other types of planning conditions that do not meet the well-established policy tests in the national planning policy framework. We are currently seeking views on both measures in a consultation paper published by my Department last month.

[Robert Neill (Bromley and Chislehurst) (Con)]

I am grateful to the Secretary of State for taking a short lawyer’s intervention. When he is consulting on planning obligations, will he also consult on the option that was considered in the Housing and Planning Act 2016: the ability for local authorities to buy their own land with planning obligations, as the local planning authority? That would greatly speed up the redevelopment process in urban areas.

[Sajid Javid]

My hon. Friend speaks with great experience on this subject, and it is something that I will consider.

[John Glen (Salisbury) (Con)]

Will my right hon. Friend ensure that the changes to pre-commencement regulations will not mean that developers will not be held to their obligations to develop the infrastructure surrounding new housing? It is often a real challenge for local communities if that is not delivered in a timely way.

[Sajid Javid]

I can assure my hon. Friend that the provisions will not mean that happens. Developers will still have clear obligations, and this process will ensure that they will be held to them.

The system of permitted development rights already offers a rapid means of turning commercial premises into much-needed homes. However, we lack accurate and precise data on how many homes are created in this way, which makes it all the harder to build the right number of homes in the right areas, so the Bill will create a requirement to record on the planning register certain applications made under permitted development rights. Collecting these data will bring more facts to the national conversation on house building, help communities to develop neighbourhood plans, and help planning authorities and inspectors to make informed, appropriate decisions. Such a move is long overdue.

[Mr Steve Baker (Wycombe) (Con)]

Before my right hon. Friend moves on, may I ask whether he will use this Bill to clarify an issue that is much discussed in Wycombe: the status of green-belt land? Is it sacrosanct, or should local authorities review it with a view to getting their local plans through the inspector, who I am told will not pass local plans unless the green belt has been reviewed?

[Sajid Javid]

The Bill does not look at green-belt issues, and it does not change in any way the very important protections for the green belt. As my hon. Friend will know, green-belt development can be looked at only in the most exceptional circumstances, and the Bill will not change that.

[Richard Drax (South Dorset) (Con)]

Before my right hon. Friend moves on, I was wondering whether he would mention the privatisation of the Land Registry. I understood that that was to have been done under the Bill, but that no decision was taken, and that the issue was, in effect, kicked into the long grass. Has privatisation of the Land Registry gone? Could it be brought back? Where are the Government on the issue?

[Sajid Javid]

As my hon. Friend has rightly identified, measures on the Land Registry are not part of the Bill, and the decision on privatisation will be for the Government to make in the future; it will not form part of this Bill, nor will it be introduced into the Bill in any shape or form at a later date.

Part 2 concerns compulsory purchase. In an ideal world, such a process would not exist. I would always prefer to see agreement secured through negotiation. However, as a last resort, we all know that it is sometimes necessary, and when that is the case, it is right that the process operates clearly, quickly and, above all, fairly. That does not always happen. Part of the problem is that the process is governed by a complex patchwork of statute and case law that has built up over many years. This slows the process down, increases costs, and bewilders individuals who are caught up in it. Ultimately, it benefits nobody—with the possible exception of lawyers. Clauses 9 to 30 will tackle these issues, making the system more effective, more transparent, cheaper and easier to navigate. Untying the tangle of red tape will speed up the process. Once again, this will mean more homes—and the infrastructure that is required to support them—getting built more quickly.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

On the compulsory purchase clauses, what action have the Government taken adequately to consult with Welsh stakeholders, and to learn the lessons of the Housing and Planning Act 2016, given that the Assembly voted down a legislative consent motion relating to the Act on the grounds of insufficient consultation with Welsh stakeholders?

[Sajid Javid]

The hon. Lady will know that there has been widespread discussion, and we are still in discussions with the Wales Office and Welsh stakeholders on the issue that she raises.

The first set of provisions will make the process of compulsory purchase clearer. They include consistent rules for temporary possession of land where a permanent compulsory purchase is not required, giving all relevant bodies the same powers. The Bill also establishes a clear and coherent framework for compensation in such cases, filling a long-standing gap in the law and ensuring that all landowners are treated fairly. It sets out exactly what a property owner’s rights and options are when faced with a temporary possession; it is the first time that has been enshrined in primary legislation. The Bill also provides a clearer way to identify market value, making it quicker and easier to agree compensation.

At the moment, the price paid for property subject to compulsory purchase is assessed in the so-called “no scheme world”. This is the market value of land if there were no threat of compulsory purchase, not taking account of any increase or decrease caused by the scheme. The no scheme world is a mixture of obscurely worded statute and over 100 years of sometimes conflicting case law. This Bill brings things up to date; it clarifies and codifies the no scheme world, without altering its core principles, to provide a clearer starting point for all compensation payments.

The new provisions put mayoral development corporations on the same footing as new town and urban development corporations for the purposes of assessing compensation, and extend the definition of “scheme” in those limited circumstances in which regeneration is enabled by a transport project. The Bill repeals redundant legislation that allowed additional compensation to be negotiated after the original settlement. This will further reduce the potential for confusion and uncertainty.

The next set of provisions make the process faster. They create a statutory deadline for bringing confirmed compulsory purchase orders into effect. They also allow Transport for London and the Greater London Authority to make a single, overarching compulsory purchase order for transport and regeneration purposes. At present, they have to artificially divide projects and run parallel processes. This causes unnecessary cost, confusion and delay to much-needed development.

The final clauses will make compulsory purchase fairer. In particular, they ensure that where property is acquired by compulsion, the compensation entitlement is fair to all business tenants occupying the property. They will align the disturbance compensation entitlement of businesses with minor or unprotected tenancies with the more generous entitlement of licensees.

There are already many excellent examples of local authorities working together to meet the housing needs of their areas. Through devolution deals, we have seen combined authorities’ ambitions to bring forward strategic plans that address the needs of real-world communities, rather than of administrative divisions. I want to see more of this. I want more joint planning, more tiers of government working together and, of course, more plans put in place. I want all areas to have one. Failing to put a plan in place creates uncertainty among communities, who are left with no idea of what will be built where, and it creates resentment when developments are eventually imposed through speculative applications.

The House will not be surprised to learn that I agree with the central thrust of the local plans expert group’s recommendations in this area. We need more co-operation and joint planning. The requirement to have a plan should not be in doubt, and the process for putting a plan in place needs to be streamlined. As the expert group set out, most of those changes can and should be made through national policy and guidance, rather than through primary legislation. Should primary legislation be required, I look to use this Bill as the vehicle for it. If we do use the Bill in that way, we will of course ensure that the House has sufficient time to consider the provisions.

In conclusion, we have a nationwide shortage of high-quality, secure, affordable housing. To tackle this, we need new ideas, new policies and new legislation. This Bill provides a solid foundation on which to build. The Bill gives greater responsibility to local communities, letting them decide what sort of development they should have, and where it should take place. It removes more of the red tape that all too often delays construction. It gives us more of the data we need to make informed decisions about planning, and brings the compulsory purchase system firmly into the 21st century, turning it into a well-tuned machine for making development happen. Moreover, the Bill has been welcomed by the British Property Federation, the Royal Town Planning Institute and many others. Above all, the Bill will make it easier to build the homes that our children and grandchildren are crying out for. That is why I am delighted to commend it to the House.