Chatham Docks Basin 3 Redevelopment

Theresa Villiers Excerpts

Wednesday 1st May 2024 Westminster Hall

[Kelly Tolhurst]

I thank the hon. Gentleman for his comments. He is right that Medway Council is out of a local plan. The previous local plan, which is occasionally referred to regarding planning applications, clearly designates Chatham docks as a commercial rather than residential area—hence my campaign, with others across the Medway towns, to demand and ensure that Chatham docks remains a commercial site, rather than a residential-led development.

Peel has also claimed that, on completion, 2,701 jobs will be in office space. Without the density specified, that would pose a risk of under-utilisation of the available area. Independent analysis revealed that in reality we have seen a shortfall in job creation, with around only 200 full-time jobs materialising since the plans were first introduced more than 14 years ago. That represents 26% of phase 1 jobs estimates and 6% of the total jobs promised across the whole of the Chatham Waters development—a far cry from the lofty estimates put forward.

It transpired that in 2019 Peel had desires to redevelop the Chatham docks site into primarily residential areas. The updated plan was led by 3,600 homes and claimed it would support over 2,000 jobs on site. Although the shift towards housing development appeals to Medway Council’s housing targets, it raises concern about the potential impact on existing jobs and industries at the docks.

It has been clear that Medway’s housing targets have been disproportionately affecting my constituency of Rochester and Strood. Over the past 15 years, we have seen delivery of thousands of new homes, with thousands more in the pipeline for my constituency, while sites such as Chatham docks are now at risk due to Medway’s focus on meeting targets. We require a more strategic approach to housing development, focusing on suitable locations with adequate infrastructure.

[Theresa Villiers (Chipping Barnet) (Con)]

Does my right hon. Friend agree that, with these important sites, it is crucial to respect the character of the surrounding area in deciding what is to be built? In particular, there is a need for larger family homes, but many developments of this sort seem focused almost entirely on small flats.

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[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to serve with you in the Chair, Sir Philip. I congratulate the right hon. Member for Rochester and Strood (Kelly Tolhurst) on securing this important debate. I know that a great many of her constituents value immensely the contribution that Chatham docks has made to Medway over many decades. I recognise that there is a general desire among them for greater clarity on the future of the site as a whole and the jobs linked to it, including, but not confined to, the 18-acre basin 3 plot that is the subject of this debate.

Constrained as I feel I am from delving into the fine detail of what is a live planning application, I will take a step back and place the debate in a wider context. As we all know, previously developed brownfield land is a finite resource and subject to competing demands when it comes to future use. The intense competition for such land in urban areas and the ever-present tension between economic and residential uses that results is precisely why a brownfield-first approach to development, which Government and Opposition agree on in principle, cannot mean a brownfield-only one, and it is why the current plot-by-plot approach to development will never be sufficient to meet total housing need across England. It is precisely because the Opposition recognise that the shortage of employment land is a growing concern that, although we are determined to improve on the Government’s lacklustre record when it comes to brownfield build-out rates, we intend to take a more strategic approach to planning in terms of both green-belt land release and planning for many more large-scale new communities, whether new towns or urban extensions, so that we are better able to sustain housing and employment growth across the country.

As things stand, the Government’s persistent failure to support local communities to accommodate housing growth strategically either by means of the development of major sites in their boundaries or through cross-boundary, strategic growth in co-operation with neighbouring authorities forces local planning authorities to wrestle with competing demands for employment and residential uses on the limited brownfield sites available to them.

[Theresa Villiers]

Many of my constituents are really worried about the statement by the Leader of the Opposition that he proposes to ignore the views of local communities in determining what gets built. Will the shadow Minister distance himself from those comments?

[Matthew Pennycook]

We certainly will not ignore the views of residents when it comes to planning proposals. However, it is fair to say—this is partly why I find the yimby/nimby debate incredibly reductive—that there is a core of people in the country who do not want development—

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[Matthew Pennycook]

I thank the right hon. Lady for that point. I did indeed write to her; it is a small number, but I have a few constituents who work at Chatham docks. As I said in opening my remarks, I very much recognise the existing concerns about the future of the sites and the jobs linked to them. To clarify what I said, I did not condemn nimbys in the debate: I said that we need to move beyond the incredibly reductive debate between yimbys and nimbys. There is a far more nuanced position out there. As I said, there are people who oppose development under any circumstances, and we are clear that we will take them on. There is a wider group of people who oppose bad development, and we must change the offer to them.

[Theresa Villiers]

May I respond to one final point?

[Matthew Pennycook]

I will give way one final time.

[Theresa Villiers]

I thank the hon. Gentleman. Does he acknowledge that the vast majority of people expressing views about development proposals accept that we need new housing, but we just need the right homes in the right places?

[Matthew Pennycook]

I take issue with the right hon. Lady on the idea—I think that phrase is used too often to obscure what I think is her real position, to be fair to her—that her local authority should be able to plan for less housing than the standard method that the target implies. We take the opposite view; we have a very legitimate difference of opinion here. We do not think that local authorities should be able to plan for under-housing need targets, and that is where the difference comes on the NPPF changes. It is not a question of whether there should be good development. Yes, we must change what the offer of development means, but it cannot be the case, as the right hon. Lady so often advocates, that no development takes place because of the characteristics of a local area or many other attributes that local authorities can now use as a result of the NPPF to come in under target. That is a clear difference of opinion between the Government and the Opposition.

I will return to the argument I was making. Like many other councils across England, Medway Council now confronts a dilemma with this brownfield site as a result of the nature of the housing and planning system over which the Government preside. First, through changes to national planning policy, Ministers have ensured that there is no effective mechanism for sub-regional strategic planning that might enable what is a relatively small unitary authority in Medway to meet housing need in a co-ordinated manner. That could have been done through a joint plan with neighbouring two-tier authorities in north Kent, as the historic south-east regional spatial strategy did with the Kent Thames Gateway.

Secondly, because central Government support has not been forthcoming, the number of viable potential sites within Medway Council’s own boundaries has narrowed. The most pertinent example is the Government’s decision to withdraw from the authority £170 million in housing infrastructure grant funding that would have facilitated the construction of 10,000 homes over 30 years on the Hoo peninsula, despite the Department seemingly not having spent £2.9 billion of the £4.2 billion allocated by the Treasury to that fund. As a result, Medway Council now must determine alone how it meets its housing targets across the sites that remain available and viable. As I said, we take the view that they must meet those targets.

The challenge I put to the right hon. Member for Rochester and Strood, leaving aside the considerations of investment required in the docks to bring it up to a viable operation in the future, is for those who take the position that it should remain a working port to identify the collection of sites across Medway that will ensure the authority can build 29,844 homes—the numbers have been slightly updated since the ones she cited were published—between now and 2040, because that is what it will take to meet housing need in that particular authority.

Medway Council proposes—quite rightly, in our view—to make that determination in a considered manner through the local plan development process. I very much welcome the fact that the present leadership of the authority have restarted the process and are working at pace to complete it. The pattern of indecision and delay that characterised the approach of previous Conservative administrations to planning and development in Medway over two decades was lamentable as, it must be said, is the Government’s record on boosting local plan coverage across England more generally. It is frankly laughable that, despite the extensive range of powers to intervene that Ministers enjoy, the Government are presiding over a local plan-led planning system in which only a third of authorities—and falling—have a plan that is less than five years old, with the number of plans published, submitted and adopted last year the lowest for a decade.

The local plan-making process in Medway is now firmly underway, and I do not think it is for Members in this place to pre-empt its outcome, but it is worth remarking that Medway Council obviously cannot prohibit Peel Waters from submitting a proposal for mixed-use development on the wider Chatham docks site as part of the local plan preparation process, in the same way that the authority cannot force that developer to make the necessary investment that might sustain the docks as a working commercial port. Just as the contents of the developing draft local plan are ultimately a decision for Medway Council itself, considering not only how to meet housing need but how other economic, social and environmental priorities can be addressed, so is the determination of the basin 3 application submitted for the present industrial state to be redeveloped for employment facilities.

As such, while I certainly appreciate that concerns exist about the employment opportunities changing on the site in question, and whether all the sitting tenants will agree to be relocated or compensated, it would not be appropriate for me to comment on the application, just as I know the Minister will not be able to discuss details of the proposal, given the quasi-judicial role of the Secretary of State in the planning system.

To conclude, the case of Chatham docks reinforces our strong belief that we need to make changes to the planning system to ensure that the Government take a more strategic approach to development across the country, thereby enabling local planning authorities to better balance competing priorities regarding brownfield regeneration. It also highlights the pressing need to do more to boost local plan coverage. An up-to-date local plan is the most effective means of influencing where and how development takes place in any given authority area for both the housing and jobs that communities need.

The situation is lamentable, and many of the problems we are discussing stem from the fact that the authority has not updated its plan since 2003. Much of the uncertainty that the constituents of the right hon. Member for Rochester and Strood are feeling about the future of Chatham docks would be significantly abated had previous Medway Council administrations prepared and adopted an up-to-date local plan with a robust and viable proposal for the site—the present administration finally doing so is to be commended. It is the elected members of that authority who are best placed through engagement and consultation with the local community to take decisions on local planning matters, including in due course the basin 3 application.

[The Minister for Housing, Planning and Building Safety (Lee Rowley)]

It is a pleasure to serve under your chairmanship, Sir Philip. I congratulate my right hon. Friend the Member for Rochester and Strood (Kelly Tolhurst) on securing this debate. I thank her for the opportunity to be able to talk—in the limited way that I am able to—about the importance of the Medway towns, and getting planning right in them and in her constituency of Rochester and Strood over the years ahead.

My right hon. Friend is a huge advocate for her constituency. We have spoken on a regular basis since I have taken this portfolio, so I know how strongly she rightly feels about ensuring planning is as right as it can be in the area. She strongly advocates for her constituents and for how important it is to get planning right. As the hon. Member for Greenwich and Woolwich (Matthew Pennycook) indicated, it is now Labour members who have the opportunity to make progress with those specific local plans. Given their variation of views in the last few months alone, that does not bode well. However, we wish them well, because we all want them to get it right, and we hope that they will do so, even if their current record does not indicate that this is very likely.

The speech by my right hon. Friend the Member for Rochester and Strood highlighted not only what a strong advocate she is for her constituency but the huge importance of this issue from a historical perspective. She talked about her background and those of many of her constituents in the area. As someone who shares that link with my constituency, I know how important it is that representation is brought to this place, and my right hon. Friend did that in this debate, as well as in others before.

As my right hon. Friend the Member for Rochester and Strood appreciates, and as the hon. Member for Greenwich and Woolwich indicated, there are limits to what I can say. There are some things that I can say and some I cannot. The Secretary of State and Ministers in the Department have a quasi-judicial role within the planning system, which means there is the potential for all planning applications to come to us for final decision, so it is both inappropriate and incorrect for us to talk about individual planning applications. Thus, I am unable to talk about the specifics of the planning application today. I know that my right hon. Friend knows that and appreciates the point I am making.

When I have had debates like this in my constituency, I used to be frustrated by that answer, but it is a necessary one and one that we must honour to ensure that we do not prejudice anything that may come in the future. None the less, I hope I can say a few things about the general position and about planning. In order to enter them into the record, I will say a few things about the national planning policy framework, and the overall framework, not least because the hon. Member for Greenwich and Woolwich has made a number of assertions, which I will come on to in a moment.

The Government set the legislative and policy framework, including the NPPF, within which the planning system operates. Local planning authorities, as has been outlined today, are responsible for preparing a plan, then for making decisions that align with that plan. In doing that, they interpret the national policy and guidance, which is primarily generated through the NPPF, within the legislation and then according to local circumstances.

The stated and avowed purpose of the planning system in this country is to contribute to the achievement of sustainable development that considers economic, societal, social and environmental objectives. Planning policies and decisions should play an active role in guiding developments towards sustainable solutions, but they must and should take into account local circumstances and reflect the local character, needs and opportunities of each area. We recognise that Rochester and Strood is very different from North East Derbyshire, as it is from Chipping Barnet and from Greenwich and Woolwich, which is why it is correct that local politicians lead planning within a broad national framework that the Government of the day set out.

We have talked in much of this debate about the importance of economic development and about protecting commercial activity. The NPPF also sets out the importance of planning for economic development. Planning policies and decisions should help to create the conditions in which businesses can invest, expand and adapt. That is why the NPPF states that significant weight should be placed on the need to support growth and productivity, taking account of both business needs and wider opportunities for development. As hon. Members have outlined, the NPPF was last revised in December 2023 following a consultation process. The changes that we made try to support our objectives of creating a planning system that delivers the new homes we need while taking into account the important areas, assets or local characteristics that should be protected or respected.

[Theresa Villiers]

One of the important changes in the new NPPF is the affirmation that councils should not be forced to build at densities that are significantly out of character with the surrounding area. Can the Minister tell the House how that is operating in practice and what difference it is making to developments such as the one we are debating today and others around the country?

[Lee Rowley]

I am grateful to my right hon. Friend for her question. As she rightly outlines, we made a number of changes to the NPPF, including one to indicate that the character of an area is important to consider within any future local planning. As she will appreciate, local plans often take several years to come through, so we revised the framework a number of months ago. We have been clear that councils should seek to move quicker when they need to. We have asked a number of councils to provide timetables for getting to the endpoint, and we will closely monitor what is happening in the months ahead not just on the point about character, which is important, but on the other changes that we made. We made changes about the potential for local councils to look at alternative methods to assess their needs, the importance of beauty within a system, support for small sites and community-led developments, and greater protections for agricultural land. One of the reasons for the debate today is that, as we all know, the planning system is not perfect, but trying to balance all those individual areas is important.

As a constituency MP who went through an extremely difficult time with local planning a number of years ago—down to the Labour party, which failed our area for many years because it was too unwilling, unable and incompetent to ever put a local plan in place, creating over 1,000 more houses than was necessary—I have seen the pain caused by not doing local plans in a timely manner. I know how important it is to think through the implications that plans have for the local community and the consequences of not making decisions. I appreciate the points made by my right hon. Friends the Members for Chipping Barnet (Theresa Villiers) and for Rochester and Strood.

Before concluding, I will turn to a number of points made during the debate. My right hon. Friend for Rochester and Strood has made a clear case for the position that she and many of her constituents have adopted. I know that she made that case over a number of parliamentary debates before I came into post, and she will continue to make it. We have spoken about the importance of getting planning in Medway into a better place that works for people. As we have just mentioned, the Labour party is now in charge. It owns the situation and it has the choices. It made a series of cases to the electorate a number of months ago, and now it has to work through that.