Levelling-up and Regeneration Bill

Stuart Andrew Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[The Minister for Housing (Stuart Andrew)]

It is my pleasure to deliver the closing speech on Second Reading of the Government’s Levelling Up and Regeneration Bill. I begin by thanking hon. and right hon. Members from all parts of the House for their thoughtful contributions to this afternoon’s debate. Before I address some of the points that have been raised, I should say that accompanying each of the 12 missions in our levelling up White Paper, enshrined in law by this Bill, is a clear commitment from this Government to work with all political parties, across all four nations and all tiers of government, to build a stronger, fairer and more united country after covid.

Despite the negativity we have heard from the Opposition Front Benchers, I am pleased to report that when I go around the country, I find that Mayors and leaders of all political persuasions are keen to work with us to deliver this mission. I believe that the Bill will help us to make this shared vision a reality by supporting local leaders to take back control of regeneration, end the blight of empty shops and deliver the quality homes that communities need. It is about giving them the tools that they need to deliver, along with the other major pieces of work that Government are doing in this area. I am grateful to hon. Members who continue to engage constructively with us on the provisions of this Bill so that it delivers the transformative change that we all want.

[Liam Byrne]

Could the Minister say a word about how he will use the missions to drive the reduction of inequalities in our country? One approach that the Labour Government tried was the use of floor targets in neighbourhood renewal funds. He may have a different approach, but that detail is terribly important.

[Stuart Andrew]

The right hon. Gentleman will have seen that, as the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Harborough (Neil O’Brien) just reminded me, we have a whole annexe with the measures on that and we will be held to account by Parliament. That is the right thing to do. I cannot recall there ever being missions like this before Parliament so that every single Member of the House can challenge the Government on whether they have reached those objectives; it is a real opportunity for Parliament to hold the Government to account on those missions.

I echo the sentiment of my right hon. Friend the Secretary of State when he said in his opening remarks that we will continue to work closely with right hon. and hon. Members to further hone and refine the legislation before it is put on the statute book. We want to build on our £4.8 billion levelling-up fund which, as hon. Members know well, is supercharging connectivity by building the next generation of roads, bridges, cycle networks and digital infrastructure. Through the UK shared prosperity fund, more than £2.6 billion is being spent to help people in the most deprived parts of the country to access more opportunities and pursue better careers. With more than £2 billion pledged by my Department over the next three years, we are helping local authorities to redouble their efforts to tackle homelessness and rough sleeping, building on the incredible achievements in the pandemic.

I will turn to some of the issues that were raised today. One issue that hon. Members on both sides of the House spoke about, including my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon) and for Stoke-on-Trent South (Jack Brereton)—I understand that they are calling themselves “levelling-up central”—and the hon. Members for Denton and Reddish (Andrew Gwynne) and for York Central (Rachael Maskell), and my hon. Friends the Members for Gosport (Dame Caroline Dinenage) and for Don Valley (Nick Fletcher), is the importance of breathing new life into our high streets, towns and city centres, all of which were especially hard hit by the covid pandemic and now require investment and support to adapt and thrive.

Many hon. Members spoke about the importance of entrusting councils, which know their areas best, to get on with the job and to green light regeneration schemes in their areas. We agree, which is why the Bill liberates councils to more easily redesign and regenerate their communities. The Bill allows local authorities to hold high street rental auctions so that landlords are encouraged to put empty buildings to good use. It makes the temporary freedoms around al fresco dining permanent, so that we can create more buzzing vibrant high streets. I have listened carefully to my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) and I will take her thoughts further—well, I would not be allowed not to do so.

Most importantly, the Bill makes it much easier for councils to issue compulsory purchase orders so that they can repurpose boarded-up shops and derelict sites. All those changes are accompanied by a series of common-sense reforms that will mean that no council has to pay over the odds in hope value to landowners when it issues compulsory purchase orders—a small change that will deliver big savings for the public purse. We will publish further details on how we intend to use those powers in the Bill. It should hopefully go without saying that we are more than willing to engage with hon. Members in the process.

One issue that is guaranteed to provoke lively debate in this place is planning reform, as we have seen today. I was going to list all the hon. Members who have raised planning concerns with me, but I suspect that I would run out of time. I am extremely grateful to all hon. Members who have engaged with the Government and with me on that issue over many months. We have listened intently to their feedback, and that is reflected in the fresh reforms that we have set out in the Bill.

Some may defend the status quo and question whether there is still a case for planning reform amid everything else that is going on, but let us look again at the facts. It currently takes on average seven years for councils to prepare a local plan, and, in some cases, five years before a spade even hits the ground. Response rates to a typical pre-planning consultation are around 3%, and that drops to less than 1% in local plan consultations. I say to hon. Members that we cannot deliver the homes that this country needs without planning reform, and we cannot level up communities without the improvements set out in the Bill. As my hon. Friend the Member for South Norfolk (Mr Bacon) rightly pointed out, we need these homes. I commend him for his excellent report and the proposals he has made to help people to build their own homes.

This Bill will simplify the content of local plans and standardise the process in a much shorter time, with improved local engagement. With more local plans in place, there will be far less speculative development, giving communities transparency and a real voice to influence what is built in their area. Our digital reforms will also move us beyond the days of laminated notices on lamp posts to fully accessible planning applications that people can view on their iPads and smartphones at home.

I am, of course, still continuing to listen to hon. Members. On the issue of local housing need and the targets, I should make it clear that they are not targets. They are there to inform the development of a plan, but in reality we know from listening to colleagues that they have been treated rather stringently. As my right hon. Friend the Secretary of State said in his opening comments, we need a more sensible approach and we are looking at that at pace.

[Ben Bradley]

My right hon. Friend rightly points out that planning often leads to a heated debate in this Chamber and can be quite a complicated issue. He also knows that the other elements of the Bill such as devolution, locally-led development corporations and all the other factors can have a huge beneficial impact on our areas. Can he assure me that the complicated planning debates and discussions among colleagues will not be allowed to delay the outcome on those other much more straightforward and well-supported parts of the Bill?

[Stuart Andrew]

My hon. Friend is challenging me to expose my parliamentary expertise, but this is really in the hands of the Committee, so I would ask him to kindly lobby members of the Committee to help me get the Bill through, and I can help him with his aim.

Let me mention a key element that people have been raising, which is the issue of the five-year land supply. If an area has an up-to-date local plan, it will no longer need to demonstrate such a land supply, and that is so that we can stop speculative development.

[Chris Grayling]

Part of the problem we face—for example, in an area where there are small local district councils in charge of planning—is that, however much Ministers may say that targets are not targets, the local officers see them as such and see their task as being to implement a number that has landed on their desk. It is really important during this process that we break free of that. One of the reasons that councils are taking so long to form their plans is, frankly, that it takes so long for them to work out what on earth to do with the targets. Can my right hon. Friend please bear in mind, as he takes the Bill through, how we send clear messages to councils about what they are and what they are not expected to do?

[Stuart Andrew]

I thank my right hon. Friend for that intervention. He knows—we have had a number of conversations on this very issue—that these are the things we are looking at. I look forward to bringing them forward as part of the Bill.

I want to touch on the issue of build out. I have heard loud and clear from colleagues, and so has my right hon. Friend the Secretary of State, about the issue of developers seeming to take a long time from approval to build houses. These commencement orders and an agreed rate of delivery will, we hope, help us to get such permissions built out much more quickly.

A number of Members—my right hon. Friend the Member for Chipping Barnet (Theresa Villiers), my hon. Friend the Member for Buckingham (Greg Smith) and others—have raised their concerns about the national development management policies. One of the key aims of the Bill is to reduce the administrative burden on local councils so that they can concentrate on delivering high-quality, locally-led plans. That is why, through this Bill, we hope to shift the onus of delivering on national priorities to central Government through introducing a set of national development management policies. These policies will cover the most important national planning issues facing the sector, including net zero, tackling climate change and making sure that we are also dealing with heritage issues and protections of green belt.

To those who are concerned that these provisions will somehow override local plans, I would say that that is not the intention. The intention is to produce swifter, slimmer plans to remove the need for generic issues that apply universally, which will help us to reduce time-consuming duplication, and to ensure that local plans are more locally focused and relevant to the local communities. I hope that, during the passage of this Bill, we will be able to give more assurance on that.

[Andrew Gwynne]

The Minister will know that Stockport, which is one of the two councils that covers my constituency, pulled out of the Greater Manchester spatial framework, largely because even though Manchester and Salford were taking a large chunk of its housing allocation, its councillors were against green belt development.

Stockport is a very tightly constrained borough surrounded by green belt. It is now in the process of developing a local plan, but it will have to meet even higher housing targets. Will the Minister guarantee that if Stockport develops a local plan that meets the needs of Stockport but saves and protects the green belt around Stockport, he will support it?

[Stuart Andrew]

The hon. Member knows that I cannot comment on individual plans. [Interruption.] The hon. Member for Wigan (Lisa Nandy) would be the first to apply for an urgent question asking me to explain why I prejudged a local plan. What I would say, in general terms, is that it is clear that local authorities can argue the constraints that they may have, and his local authority may be planning to do that; I do not know.

Let me move on, because I am conscious of time. I turn to second homes, because, if I did not, my hon. Friend the Member for North Devon (Selaine Saxby), as well as my hon. Friends the Members for St Ives (Derek Thomas) and for Penrith and The Border (Dr Hudson) and others, would be rather angry with me. We have put provisions in the Bill to try to help on that, and I know that she wants us to go further. I have made a commitment to come down to the south-west to hold a series of roundtables and see the issues for myself. We will see what else can be done as we go through the Bill’s passage.

[Rachael Maskell]

In addition to second homes, we have the challenge of Airbnbs, which of course the Bill does not mention, and yet they are blighting our communities as they take out existing stock and dominate new stock that is being built. Will the Minister look again—it is urgent—to put an amendment into the Bill to address that serious issue?

[Stuart Andrew]

In fact, I had a meeting just this morning to talk about that very issue. I will report back in due course, if that is okay.

[Tim Farron]

The Minister is being very generous in giving way. I concur with the hon. Member for York Central (Rachael Maskell), but will he also carefully consider introducing an amendment in Committee that would make second home ownership a separate category of plan and use? That is obviously the clearest way in which we could control second home ownership in communities such as mine and in other parts of the country. Will he at least consider that in the coming weeks?

[Stuart Andrew]

I am keen to ensure that we get it right. Of course I will consider it, because I want to ensure that we consider all aspects. There could, however, be unintended consequences in other parts of the country. We will want to ensure that we get it right, but I will look at all options. I have made that commitment to numerous colleagues who have raised the issue with me.

I turn to infrastructure. I want to mention in particular my hon. Friend the Member for South West Bedfordshire (Andrew Selous) , who seems to secure a Westminster Hall debate on this issue every other week. I congratulate him on that. Many have asked what the Bill means for our infrastructure: our roads, bridges, schools, GP surgeries and so on. This is where I believe communities stand to really benefit from our reforms. All of us know that, without new infrastructure, when people see new homes going up in their community, too often they fear the worst. They fear that it will result in more congested roads, busier trains and fewer services to go around.

I hope that the proposals that we have set out in the Bill will go a long way towards allaying those fears for good. I am determined to continue working with hon. Members on both sides of the House to do so. That starts with sweeping away the old, opaque section 106 agreements and replacing them with one simple infrastructure levy that is set and raised by local authorities. The new levy will be fairer, simpler and more transparent, and it will be imposed on the final value of a development. It is important to stress that, with the housing market as buoyant as it is, the levy will easily be able to respond to market conditions. Put simply, when prices go up, so will the levy.

Crucially, our Bill also requires councils to prepare an infrastructure delivery strategy, setting out how and when the levy receipts will be used. That means new development will always bring with it the new schools, nurseries and GP surgeries that communities want and need. I have listened, in particular to the debates secured by my hon. Friend the Member for South West Bedfordshire. He knows that I will be meeting my colleagues in the Department of Health and Social Care next week to see what more we can do to ensure that local health services are more involved with the planning process.

We will run a test and learn approach. We are holding a series of roundtables with stakeholders because we want to get it right. It is important to remember that councils can borrow against the levy, so they can bring the infrastructure in as soon as the development is happening.

[Sir Geoffrey Clifton-Brown]

I am grateful to the Minister for giving way. He will have heard what I said in my speech about the gross added value method of charging for the infrastructure levy, which will act as a disincentive to developers to put added value on environmental and design matters. Will he please discuss that matter with me to see whether we can use a better method by capturing the increase in land value?

[Stuart Andrew]

I certainly make that commitment. My hon. Friend raised that point with me earlier this afternoon. There are some points there that I want to further explore, so I will ensure I meet him in the next week or so.

[Richard Graham]

Will the Minister say something in his summing up on the points that I and my hon. Friend the Member for Sevenoaks (Laura Trott) raised, and which we discussed earlier with his colleague the Secretary of State, to reassure us that there is no intention to devolve upwards and that the powers of district councils will remain as they are without being poached by some CCA?

[Stuart Andrew]

I hope my hon. Friend saw the enthusiastic nodding on the Front Bench, which will give him the reassurance he seeks.

The Levelling-Up and Regeneration Bill represents a major milestone in our journey towards building a stronger, fairer and more united country. As my hon. Friend the Member for Aylesbury (Rob Butler) said, it is for all parts of the country. It confers on local leaders a suite of powers to regenerate our high streets, towns and cities, and gives them unprecedented freedoms to build the homes and infrastructure that communities want and need, following all the BIDEN principles—that is, the Secretary of State’s, not the President of the United States. I also take on board the points raised by my hon. Friend the Member for Wantage (David Johnston) about the environmental standards of homes. I hope to do some more work on that in the coming weeks.

[Marsha De Cordova]

I thank the Minister for giving way. He has not responded to the point raised by my hon. Friend the Member for Nottingham North (Alex Norris) about publishing an impact assessment. Will he confirm that one will be published, and will he let us know when?

[Stuart Andrew]

Yes, there will be, and it will come at the second stage of Committee.

[Munira Wilson]

The Minister talked about building the homes that communities want and need, and he made a commitment to the hon. Member for Gloucester (Richard Graham) about not devolving powers upwards. Last year, central Government pushed through permitted development rights, which enable developers to put whole storeys on top of existing buildings, causing misery for leaseholders even when residents and local planning authorities have opposed them. Will he look at rescinding those powers in the Bill?

[Stuart Andrew]

No, I will not.

As I said, these new freedoms will help communities to repurpose and redesign old unused sites, and turn them into new vibrant communities. The Bill allows us to become a regeneration nation. It will support the housing and construction sector to play its part in growing our economy, creating well-paid jobs and levelling up. At the same time, the Bill brings our ageing analogue planning system into the digital age, with residents able to share their views at the touch of a smartphone. It places local people at the heart of a smoother, simpler more streamlined planning system using street votes, new design codes and community-led plans.

Most importantly, by enshrining the 12 missions of our levelling-up White Paper into law and offering every part of England a devolution deal by 2030, the Bill fulfils our promise to the British people—a fundamental promise upon which the Government were elected—to take power away from Whitehall and place it directly in the hands of communities, so that they can determine their future and realise their full potential. That is the pledge we made and that is what the Bill delivers. I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.