Neighbourhood Planning Bill Debate

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Neighbourhood Planning Bill

Teresa Pearce Excerpts
2nd reading: House of Commons & Money resolution: House of Commons
Monday 10th October 2016

(8 years, 1 month ago)

Commons Chamber
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Teresa Pearce Portrait Teresa Pearce (Erith and Thamesmead) (Lab)
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I would like to put on record my thanks to the Secretary of State for his warm welcome.

The Neighbourhood Planning Bill does not appear at first glance to be a controversial one. Indeed, it includes many measures that we support. There are, however, elements of the Bill that could be strengthened or amended, so it was good to hear the Secretary of State say that he might be open to amendments in Committee. Labour Members will support appropriate measures that seek to streamline the delivery of much-needed new homes and further engage local people in the shaping of their communities.

We urgently need new homes, so it is a shame that the Bill misses measures to achieve what was announced in the Queen’s Speech in May, namely putting the National Infrastructure Commission on a statutory footing. However, we are pleased that, following pressure from both sides of the House, the unnecessary step to privatise the Land Registry has been dropped. That has been warmly welcomed by almost everybody in the housing sector, but the Bill must be seen in context, and it cannot be detached from the wider housing crisis we currently face.

The Government say that the aim of the Bill is to free up more land for new housing and to expedite the beginning of building once planning permission has been granted. We face the biggest housing crisis in a generation and urgently need more homes, and the Bill does not go far enough to provide them. The Bill could do so much more to encourage development and engage local residents in the process.

The Bill introduces measures in four key areas: neighbourhood planning, planning conditions, the planning register and compulsory purchase orders. The proposals on neighbourhood planning will allow neighbourhood plans to influence the planning process at an earlier stage, and will help to streamline the making and revision of neighbourhood plans. We support measures to streamline neighbourhood planning and to promote the ability of local residents to participate, but the Bill raises a number of questions. First, as the British Property Federation has noted, greater clarity is needed on the level and weight attributed to neighbourhood plans at every stage of their preparation. For example, more clarity is needed on whether a general direction of travel of a neighbourhood plan would be considered in the determination of a planning application.

Secondly, there is huge concern surrounding resources and the impact that the measure will have on our already stretched local planning authorities. Many of them already lack the resources they need to promote quality placemaking. The new measures make significant demands in terms of time and resources, and many planning departments are working on local plans before the deadline next year. How will the Minister ensure that they will be able to resource both adequately? Local authorities have a statutory duty to support neighbourhood planning groups and to provide a local plan. That could present problems for smaller district councils that have limited resources and capacity to respond to multiple pressures.

Chris Philp Portrait Chris Philp (Croydon South) (Con)
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Will the hon. Lady give way?

Teresa Pearce Portrait Teresa Pearce
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I would rather not give way because many hon. Members want to speak and we are short of time.

The Bill needs further measures to clarify the true costs of neighbourhood plans. Currently, councils receive £5,000 for each neighbourhood plan area designated, and £20,000 for each neighbourhood plan referendum, but those figures are the same regardless of the number of electors or the complexity or size of the neighbourhood plan. The costs can exceed the moneys that the council receives.

In addition, neighbourhood planning must be open to all, and disadvantaged communities need to be able to participate. Neighbourhood planning comes with complexities and can require professional support. Planning Aid England and the RTPI help to support groups across the country pro bono, but the Government should adequately support local planning authorities and local communities to shape development in their areas.

The Bill allows the Secretary of State to prescribe when councils should review their statement of community involvement, but why are local councils, which understand their communities and can respond directly to local needs, not trusted to decide when to review their statements of community involvement? Why cannot that be decided at local level rather than being imposed from above? A better balance can be achieved, possibly through amendments in Committee.

The British Property Federation has made a number of recommendations on neighbourhood planning that the Government have failed to explore, including ensuring that neighbourhood plans are consistent with and conform to the national planning policy framework, and setting a minimum turnout threshold in referendums on the adoption of neighbourhood plans. I would be interested to hear whether the Minister is receptive to those suggestions.

The greatest concern in the Bill is on pre-commencement planning conditions. Councils approve almost nine of every 10 planning applications and there is little evidence to suggest that development is being delayed by pre-commencement planning conditions. There has been a cautious reception for the Bill from the sector. London Councils has said that there is little robust evidence to suggest that the current planning conditions system has led to an under-supply of housing.

Chris Philp Portrait Chris Philp
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Before being elected to the House, I ran a business that financed construction projects. I have to tell the hon. Lady that people engaged in such projects frequently complain about the onerous conditions. To give one example, they complain about the requirement to have a bat survey.

Chris Philp Portrait Chris Philp
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And newt surveys. Such surveys can be done only at certain times of the year. That is a very onerous and often very serious set of conditions.

Teresa Pearce Portrait Teresa Pearce
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I am very interested in the hon. Gentleman’s previous employment, but people always complain about restrictions. Our job is to balance the complaints of the developer against what is best for a local community. I am yet to see firm statistical evidence of how much pre-commencement planning conditions restrict building.

Teresa Pearce Portrait Teresa Pearce
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I will give way one more time, but we really must get on.

Lord Barwell Portrait Gavin Barwell
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If the hon. Lady is not inclined necessarily to listen to the voice of developers, may I refer her to the representations all hon. Members have received from the District Councils Network? It states:

“The DCN has acknowledged that the discharge of planning conditions can be a factor in slow decision making and supports the government in seeking to address conditions.”

Teresa Pearce Portrait Teresa Pearce
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I thank the Minister for his intervention but I would like to see real statistical evidence. Are we trying to solve a problem that does not exist? We all have anecdotal evidence, but perhaps in Committee we will see more evidence.

It is my experience that some developers welcome pre-commencement planning conditions because they enable planning permission to be secured without finalising the full details. It can save work duplication. For example, a developer may not wish to spend significant amounts of time deciding between different types of render for the outside of a development when they know it could be agreed at a later date. Indeed, a condition could be established in the consent to match the local area and street scene.

London Councils says that the measure will put considerable strain on the resources of local planning authorities. It proposes that a better solution would be to promote best practice in pre-application discussions between developers and local planning authorities. There are questions on the process. For example, what if late representations are received, and what if a councillor wishes to add a pre-commencement condition on the night of the planning committee?

Behind that lies the fact that pre-commencement planning conditions are not a bad thing. They have an important role in securing sustainable development that is careful and considerate of local communities. Conditions should be imposed only when consent would not be acceptable without them. By allowing room for negotiation, we are changing the nature of how conditions are set and their purpose. We could inadvertently either encourage inappropriate development by lowering our standards of acceptable development or, when disagreement arises between applicant and planning authority, discourage developers from building, which no hon. Member wants. There are questions about whether the measure is necessary. I look forward to seeing the stats behind it to show that it is. There is an existing framework for applicants to appeal specific conditions that they consider do not meet the national policy tests.

If we are to proceed, it is essential to ensure that the Bill does not have unintended negative consequences. Greater clarity is needed on appeal routes when agreement cannot be reached, and on pre-completion and pre-occupation conditions. It is right that there is a public consultation, but even if the Bill becomes law, I do not anticipate it adding any of the extra homes that we urgently need. It is not pre-commencement planning conditions that slow planning consent, but the chronic underfunding of local planning authorities. It is not pre-commencement planning conditions that slow construction, but the drastic skills shortage in the construction sector. It is not pre-commencement planning conditions that slow new schemes coming forward, but the lack of strategic infrastructure involvement.

Teresa Pearce Portrait Teresa Pearce
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I am afraid I need to move on because many hon. Members wish to speak and the hour is late. [Interruption.] There are lots of Government Members.

The Bill makes provision for permitted development to be recorded on the planning register. Given the existing pressures and further commitments in the Bill— I have mentioned the wider question of resourcing—I should like the Minister to consider the funding of planning authorities. When local authorities are pressed for resources—they must decide, for example, between child protection and adult social services—planning is often squeezed.

The Bill attempts to streamline compulsory purchase powers, and includes temporary possession of land to enable schemes to store equipment and machinery so that they can be delivered. The temporary possession of land has been used widely in my constituency under the Crossrail Act 2008. The proposed changes to compulsory purchase orders would enable councils to capture the value from increased land prices to invest in the local infrastructure needed to complement and facilitate new housing schemes. While that can accelerate development, CPOs still require approval from the Secretary of State. Nevertheless, it is hoped that those measures will help to encourage development.

Perhaps the most striking thing about the Bill is what is not in it. Along with the Local Government Association and others, we welcome the news that the Government have not included the planned privatisation of the Land Registry. Will the Minister clarify whether the initiative to privatise the Land Registry has bitten the dust? Has it been kicked into the long grass or is in the rubbish bin?

The Bill is quite different from the measure outlined in the Queen’s Speech earlier this year. The Prime Minister said in her conference speech last week,

“something…we need to do: take big, sometimes even controversial, decisions about our country’s infrastructure.”

However, in the Bill, the Government’s proposal to place the National Infrastructure Commission on a statutory footing has been withdrawn. I hope that the Government will think again.

The Bill aims to build houses, but it does nothing to build communities. The failure to provide the commission with statutory powers to enable strategic decision making on infrastructure is a missed opportunity to tackle the housing crisis. The House Builders Association, which represents small and medium-sized builders, said that the Bill was unlikely meaningfully to increase supply.

This is the sixth piece of legislation in the past six years to make provision for planning. Another Bill passes and the Government fail adequately to resource planning departments, which have faced a 46% cut in funding over the past five years. A recent survey by the British Property Federation identified under-resourcing as the primary cause of delays to development. Another Bill passes, and the Government fail to increase the transparency of viability assessments, which many people believe is the key to ensuring that there is sufficient and appropriate affordable housing. Another Bill passes and we are no closer to developing garden cities and new towns, which we need to build to ensure that our children and our children’s children can find a home of their own.

The Bill will not deliver social housing and the genuinely affordable homes that are desperately needed. It will not provide facilities on new housing developments that are required to build communities, and it is unlikely to facilitate opportunities for the struggling SME builder, or tackle the growing skills crisis in the construction sector. The Bill has failed to tackle those issues, but I am interested to hear the Minister say that there is an appetite to look at the Bill and perhaps amend it in Committee. If it is not amended, the missed opportunity will manifest itself in a continued housing crisis until the Government can step up and match their rhetoric with substance.