(2 years, 3 months ago)
Public Bill CommitteesThe hon. Member for Greenwich and Woolwich has just provided almost infinitely more detail than there is in the Bill. My understanding is that the whole point of a Bill Committee is that we get to grips with the detail, and yet the Government are providing us with very little.
This really matters. I will set out a particular case of my community experiencing the real sharp end of the crisis, but every community in the country is experiencing a crisis of housing quality, availability and genuine affordability. This just tickles it, if we are lucky. We have a lack of detail. The idea itself is vague, and what we do know about the infrastructure levy is that it is likely to be complex, and the more complex it is, the more we favour the developer. In a situation where the nervous planning authority errs on the side of caution and, therefore, lack of ambition when seeking planning gain, the more the developer manages to gain advantage for itself. Given that there is no guarantee that any value from the levy will accrue to the community where the development will take place, the likelihood of communities opposing developments will increase, therefore making them less likely to go through.
On top of all of that, as has already been mentioned, a fundamental flaw of using GDV as the measure for what the levy should be in practice is that we are basically putting all the risk on the community and not the developer. That is obvious. It is probably why developers have been relatively silent over this—because they see that it is potentially in their favour. It is also why housing associations and others, including housing charities, have been very concerned—because they worry that is a slow, downward slope towards reduced delivery of affordable housing.
It may well be that, when the detail is forthcoming—and if not now, why not now?—we may be pleasantly surprised and, incrementally, we might find that the infrastructure levy, in detail, after pilots, does add value. However, the concern that many of us have is that this is untested and replacing a scheme which, while imperfect, does deliver some affordable housing.
The problem with section 106 and the infrastructure levy is that it is an entirely incremental, weak and fairly tepid approach to a massive problem. Our way of developing affordable housing is just to get the odd scattering of homes per development, if we are lucky and can find a system that will make a planning gain and gain something of the land value uplift that a developer has from the project. The reality, however, is that communities such as mine—I will speak specifically to the issues in Cumbria—have high house prices, an evaporated, almost non-existent long-term private rented market, and vast numbers of second homes, meaning properties not lived in all year around.
Cumbria is a nice part of the world—absolutely beautiful. Eden and the south lakes is a very beautiful place. If someone builds a five-bedroom house there, it will fly off the shelf within hours. There is no problem with building homes for demand. The Minister and the Government must understand—and I hope the new Prime Minister understands—that what is desperately required when it comes to housing policy is that, for a period at least, we stop building for demand and start building for need. The reality is that, as things stand, the infrastructure levy and section 106 only skim the top of the problem. That demonstrates a complete lack of ambition behind the concept of levelling up. We are not levelling up; we are getting some crumbs from the table. It is just a different way of getting some crumbs from the table, not actually producing any real bread.
Clause 113 introduces the new infrastructure levy. It is well known that new development creates demand for public services and infrastructure. Local authorities should secure contributions from developers to share in the land value uplift that comes from granting planning permission and use that value to deliver infrastructure and affordable housing for communities.
One of the main criticisms of new developments in local communities, however, is that they are not accompanied by the infrastructure that communities often need. The current system of developer contributions is uncertain and fragmented. Local planning authorities can negotiate section 106 agreements to secure affordable housing and contributions to infrastructure, and can choose to charge the community infrastructure levy to collect money from developers for infrastructure that is not affordable housing.
The protracted negotiation of a section 106 agreement delays the granting of planning permissions. Agreements can be renegotiated as the development progresses—a point that has been raised by several Opposition Members. Both negotiation and renegotiation generate uncertainty for local communities over how much affordable housing will be available and what infrastructure will be delivered by a development. On the other hand, the community infrastructure levy is a non-negotiable charge, and it is optional as to whether local planning authorities charge it. Only half of local planning authorities currently charge the CIL. Of those that do not, more than a third believe that introducing it will increase their ability to capture land value. Common reasons for not implementing CIL include concerns that the extra charge will reduce the amount of affordable housing delivered because, unlike the levy, CIL cannot be used for affordable housing.
Also, CIL and section 106 do not capture all of the increases in value that occur as a result of increases in house prices. Average house prices in England have increased by nearly 22% over the past two years. CIL rates do not increase to capture more of that uplift, as they are based on the value when planning permission was granted. Although some section 106 agreements may capture an element of the uplift, many will not. As a result, local authorities are not capturing as much value for key services as they could.
Clause 113 provides for the introduction of a single charge that will largely replace the existing system of developer contributions. The infrastructure levy is an opportunity to deliver better outcomes for communities and to address shortcomings in the system that incremental change is unlikely to deliver. The levy will aim to capture land value uplift at a higher level than the current developer contribution regime by charging rates based on the final value of developments. I hear what the hon. Member for Greenwich and Woolwich has said about that, and the concerns he has raised. To clarify that point, the gross development value can be captured because we know what the sale price of that property is when it is sold, just as we do when stamp duty land tax is charged.
(2 years, 5 months ago)
Public Bill CommitteesAlthough I entirely understand the desire of the hon. Member for Westmorland and Lonsdale for more affordable housing, particularly in national parks and areas of outstanding natural beauty, I fear that the approach he advocates would be counterproductive.
Clause 88 sets out what communities can address in their neighbourhood development plans. It already allows communities to include policies on the provision of affordable housing in their area, taking into account local circumstances. We recognise that delivering affordable housing in national parks and AONBs can be a challenge. To help address that paragraph 78 of the national planning policy framework includes a specific rural exemptions sites policy. It allows affordable housing to be delivered on sites that would not otherwise be developed to meet specific local housing need, and the majority of that housing will be required to remain permanently available to those with a local connection. In addition, in 2021 we published planning practice guidance to help bring forward more of those sites in the future.
Hon. Members will be aware that authorities in designated rural areas can set policies that contain a lower development threshold, above which affordable housing can be sought. That threshold can be between one and five units, compared to a threshold of 10 units in other areas. We will be consulting on how the small sites threshold should work in rural areas under the infrastructure levy.
New clause 40 would enable planning authorities for national parks and AONBs to mandate that new housing under their jurisdiction is affordable and to define “affordable” for that purpose. Authorities are already empowered to set policies in their local plans that require developers to deliver a defined amount of affordable housing on market housing sites, unless exemptions apply. These policies are able to take into account local circumstances in setting the appropriate minimum amount of affordable housing to be delivered, which will vary across the country.
Under the infrastructure levy, we will introduce a new “right to require” through regulations, by which authorities can require a certain proportion of the levy to be delivered as on-site affordable housing. That will be in addition to the rural exemptions sites, which I have already outlined. The revenue from market housing is vital for delivering affordable housing and other vital infrastructure, with over 24,000 affordable homes being delivered through developer contributions in 2020-21. As we will discuss, the new infrastructure levy has been designed to deliver as much on-site affordable housing as at present, if not more. Requiring only affordable housing could therefore reduce the amount of affordable housing obtained in these areas by making market development unable to proceed at all. Ultimately, that would make the affordability challenges in those areas worse rather than better. As such, although the concerns raised by the hon. Member for Westmorland and Lonsdale are valid and the Government are taking them seriously in our design for the infrastructure levy, I hope he will agree to withdraw his amendment.
Just to be clear, the wording of the amendment means that it would enable national parks to do these things, and they can choose not to if they wish. If we are about respecting local communities, then what we do is about giving people power, not telling them what they must or must not do. For the Government to not support what I am proposing is effectively removing that choice from them.
I hear what people say about the impact on neighbouring communities. It is worth bearing in mind that national parks are—rightly or wrongly—made up of people from a whole range of different backgrounds. The people who are placed on national parks include those appointed by a Secretary of State, people from parish councils within the national park, and the principal authorities that make up that national park, which also cover areas that are not in the national park. At the moment, most of the area that Cumbria County Council covers is not a national park. It includes larger towns and, indeed, one city within Cumbria, which are not in the national park. Likewise, the district councils also have representatives, and not one of those district councils is majority national park in terms of population, so there is that understanding of the impact beyond the boundaries of a national park.
I understand what the Minister says about the importance of the revenue raised by market housing, but the evidence we see with our own eyes in communities like mine is that when communities can bank on new developments being affordable, we suddenly see a huge reduction in build costs, because landowners will give up land for significantly less than they would have done otherwise. Build costs reduce, and the whole community tries to find ways to achieve things. It is very similar to what has happened in my area with rural broadband—communities can deliver broadband much more cheaply than BT because, as it turns out, landowners are quite happy to allow a bunch of people to dig trenches as part of a community effort. People will do that for nothing, whereas they would not do that for a commercial enterprise. So that does not undermine the case at all.
The evidence I have brought before the Committee—the Rural Services Network stating and showing evidence that, on the Government’s own metrics, rural England is more in need of levelling up than any of the geographical regions of England, even the poorest of them—tells us that we have to do something to tackle the need. This amendment is one way in which that could be done. I understand, however, and was interested in, some of the things that the Minister said, so I will not press it to a vote at the moment. I would love to see further action from the Government to address the issue in the coming weeks. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
(2 years, 5 months ago)
Public Bill CommitteesIt is a pleasure to serve under your guidance today, Mr Hollobone. This proposal from the Government feels rather tin-eared, and the amendment—or something like it, at the very least—seems appropriate. It is good that the official Opposition have put forward a route that the Government could choose to go down.
It seems odd that there is not a worked-out process for properly scrutinising and consulting on national policy statements that could have huge ramifications for every part of this country. This is a very diverse country: we have four nations, and communities that are rural, urban and suburban. National planning policy could have many different ramifications on different communities.
I think of my own community, with 67 parish councils and the need for them to be involved and to understand the issues. Further north in Cumbria, we have the very live issue of Britain’s first new coalmine in 30 years potentially being given permission later this summer—we will wait and see about that. It will be hugely significant for the community it could impact directly, but it will also have a national impact. For us not to have a level of scrutiny and consultation for national plans—something that a local authority would be slaughtered for not doing with its own local plans—seems to be very wrong and, as I say, somewhat tin-eared.
It goes back to a theme that I have tried to develop throughout debates on this Bill, which is about trying to understand the motivation. It could be that the Government are just being tin-eared and have not thought this through properly. That is entirely possible—Governments do that. The question is, who is this for? Is this devolution? Is this empowering local communities? That is what the Government claim it is. Or is it just for the convenience of central Government? If there are national plans and a national planning framework allowing Government to take forward their central agenda without proper consultation of local communities—be they rural or urban or in any part of this country—that will meet with huge opposition, including in the constituencies of Opposition Members.
It is a pleasure and an honour, as ever, to serve under your chairmanship, Mr Hollobone. I thank the hon. Member for Greenwich and Woolwich for tabling this amendment. The national development management policies are an important change to the system, and I understand the desire to ensure that they are properly considered.
The amendment has three elements: consultation, parliamentary scrutiny and policy review. I will deal with each in turn. On consultation, the existing clause already imposes an obligation on the Secretary of State to ensure that such consultation and participation as are considered appropriate take place. The previous Secretary of State was clear in his comments to the Levelling Up, Housing and Communities Committee that consultation on the national development management policies will indeed be carried out. The consultation specified by the amendment is therefore unnecessary.
Moreover, we need to bear in mind the possibility that circumstances may occasionally arise in which the Government need to make urgent change. I heard what the hon. Member for York Central said earlier, and I would like to give her an example that became apparent during the pandemic of when we had to act quickly. Hon. Members will recall, during the first part of the pandemic, the significant issue with food supply. One of the decisions that was therefore made at a national level was to disapply planning conditions relating to the hours during which supermarkets could be served by delivery vehicles. Because of the way supply chains were at that point, it was extremely important to get food through to the stores. In those circumstances, it may not be feasible to do everything that the amendment seeks to do, for reasons that I hope she understands.
I am very concerned about this part of the Bill. If we ask people in England which part of our country has the most autonomy and sovereignty and is listened to the most, most of them will say London—and they would be broadly right. It is really concerning to any person in this country who cares about genuine devolution and the empowerment of local communities that the part of England with the most powers devolved to it is having many of those powers curtailed, qualified and restricted by the clause, and the amendments are important because they put a spotlight on that issue.
Some of the language around levelling up may in fact be divisive, because it is about setting ourselves against one another. Rural communities are the poorest and most needy in England, but there is much that binds us all together. We need to consider ourselves as a United Kingdom and to make common endeavour, but we can do that only if we trust one another, give communities genuine sovereignty and power, and trust them.
Again, there is a theme with the Bill: it is about levelling up and devolution in name, but in reality it is about a lack of trust in the local electorate, local communities and local leaders—in this case, the Mayor of London. Anybody in this country—in England at least—who is concerned about their autonomy, their sovereignty and the devolution they want for their community should be deeply concerned about this proposal and should stand in solidarity with communities in London, who seem to be having theirs curtailed in the Bill. That is the opposite of levelling up and the opposite of devolution, and it increasingly sounds not like devolution but like delegation.
Clause 85 reaffirms the vital role of the London plan in setting strategic policy for the capital. However, the London plan is intended, and was originally designed, to deal only with matters of strategic importance in London. Those are limits to which the London plan has not always strictly adhered, and it now often touches on matters that no one would consider as strategic in nature, but rather as instances of applying the strategy.
Let me give an example of where the Mayor of London has overstepped that strategic objective. Policy H16 in the London plan refers to laundry, bedding and linen services, which do not seem overly strategic. The inclusion of non-strategic matters means that the London plan is far lengthier and more detailed than it needs to be—the current London plan is over 500 pages long. Not only does that increase the time taken to produce it, but it makes it more complicated for the people of London to work out what policies apply in their area and how those interact.
One of our most important objectives in reforming the planning system is to give a distinct and clearly defined role to each part of the development plan. By clearly specifying that the London plan must cover matters of strategic importance to London, we are making the plan’s role and its relationship to individual local plans easier to understand.
The text that amendment 93 proposes to remove also underlines that policies should relate to the particular characteristics or circumstances of London. During the preparation of the London plan, there is nothing in the Bill that would prevent the Mayor of London from considering matters that affect London but relate to areas outside Greater London. However, I hope we can agree that the policies themselves should relate to the area for which the Mayor has jurisdiction. Likewise, on amendment 94, it seems entirely reasonable that any policy included at the level of the London plan should have more than a local impact. Otherwise, it would be properly a matter for the appropriate local planning authority’s local or supplementary plans.
On that subject, under the provisions in the Bill, the Mayor of London may prepare a supplementary plan relating to design matters for the whole of Greater London, and amendments 91 and 92 concern that new power. I agree entirely with the intention behind amendment 92, but the amendment is needed to achieve that aim, because the Mayor’s supplementary plans will be part of the development plan, and schedule 7 inserts proposed new sections 15CA(5)(g) and 15CC(8), which provide that, in preparing local and supplementary plans, London boroughs—as local planning authorities—must have regard to the development plan.
Turning to amendment 91, supplementary plans provide local planning authorities with the flexibility to bring forward policies for specific sites, or groups of sites, quickly—for example, in response to a new opportunity that had not been identified in the local plan, or to set design standards too detailed for the local plan itself. They are not intended to supplant the primacy of the local plan or to circumvent the fuller process to which local plans will be subject. Supplementary plans are therefore primarily intended as a tool for local planning authorities to set more granular policies. Allowing the Mayor to set such policies would be contrary to the strategic—rather than locally specific—role of the Mayor. The Mayor’s role should be in setting design standards on a London-wide basis.
That is what the Mayor’s supplementary plan power provides for, while not precluding the Mayor from producing guidance on particular planning matters—a tool that I understand he has made good use of. However, the Mayor of London does not allocate sites in the London plan. Therefore, the ability to produce site-specific supplementary plans is not necessary. In the same way, in the current system, the Mayor does not produce supplementary planning documents.
That leads on to the effect of amendment 97. The London plan has never been able to allocate specific sites. It will retain its ability to identify broad locations for development, which will inform site allocations in individual local plans produced by London boroughs. Local plan making is the correct level at which to allocate individual sites for development, as boroughs work closely with their communities to identify the most suitable sites.
The Mayor should therefore not be able to allocate sites for development through either a supplementary plan or the London plan itself. That preserves the defined roles for strategic planning relative to the local plan. For that reason, it would be inappropriate for the Mayor alone, as suggested by amendment 95, to determine what should constitute “strategic” across more than one borough. That is not to say that the Mayor’s opinion on what constitutes a strategic matter is not essential. However, it is legitimate for other organisations and people, including the boroughs and those examining the London plan, to take a view on the issue.
In addition—although I do not think we need to repeat our earlier debate on this point—we have included the requirement not to be inconsistent with, or to repeat, any national development management policy, to ensure that the whole planning system, from national to local level, is consistent. That allows those matters that are best dealt with at the national level to have status, without requiring repetition in the development plan, potentially at both the strategic and local plan level.
Finally, on amendment 96, we want to remove unnecessary obligations from plan makers. Removing the requirement for the Mayor to include statements on general spatial development aspects of their other strategies and policies does not bar the Mayor from so doing. It merely allows the Mayor to judge how far it would be helpful to do so. I hope we can agree that that is a more sensible position.
I am aware that I have spoken at some length on these points, but I hope that has been helpful for the Committee. In the light of what I have said, I hope that the hon. Member for Greenwich and Woolwich will feel able to withdraw the amendment.
This is an important part of the Bill. I am comfortable with much of the direction that the Government seek to go in, but if we are to offer the power to develop joint spatial development strategies, it should be to everybody. I will make particular reference to national parks in England and the duty to consult with them.
It is worth bearing in mind that national parks are quasi-local authorities. In many ways, they have the functions of a local authority, particularly when it comes to planning and some other associated issues. They do not have council tax-raising powers and they are not directly elected in any shape or form in England or Wales. In Scotland, there is an element of direct election to the national parks.
I will make two suggestions. First, the needs of national parks and areas of outstanding natural beauty are significant. They are parts of the country that we have collectively decided are so important that they need to be protected for environmental reasons, to provide education and enlightenment about our heritage and our culture, and to protect the communities within them. I am especially concerned about that latter point.
In national parks, decisions are made about housing, planning and development that have a huge impact on the lives of the people who live within them. The Lake District national park has between 40,000 and 50,000 full-time residents, a not inconsiderable number of people whose lives are affected by an unelected authority. By the way, the national parks do a great job—I have a lot of time and praise for what the Lake District national park and the Yorkshire Dales national park in my constituency do—but it is not true to say that they make their decisions entirely democratically.
When we are consulting and imposing a duty to consult, we must have a duty to consult the national parks. They must not be considered things to be overlooked, and communities must not be overlooked. We need to remember that decisions made about affordable housing and allowing farmers to do something on their farms that might enable them to diversify and to provide a home for agricultural workers, or a home for a farmer to retire into so that a young farmer can come and take their place, are often decided by people who do not live in the national park and who are not elected by the local community.
It would be interesting if the Minister could reflect on the extent to which the Government might consider learning from the Scottish example, whereby a number of members of national park authorities are directly elected. When we place a duty to consult, which means that we bring in the national parks, we should consult people who are there representatively, who are democratically elected and who are there to speak on behalf of the community. If we do not do that, the national parks will continue to be considered simply places for people to visit, not places for people to live. It is essential that we consider the living, vibrant communities of our national parks, as well as the fact that they are huge assets for the nation as a whole.
Although I understand the reasons for the amendments, our intention is for the reformed planning system to be district-led. As we have discussed previously, we do not want to see planning or any other powers being drawn upwards as a result of our reforms. As such, joint spatial development strategies need to be driven by the authorities closest to their communities.
We agree that county councils should play an important role in the plan-making process. They will have significant influence over the development of a joint spatial development strategy, and we envisage that they will be closely involved with its day-to-day production. To make sure that happens, we are giving them the formal status of statutory consultee so that they can bring their experience and expertise in a range of issues, particularly highways, transport, flood mitigation, education and the rules on waste, to the creation of a joint spatial development strategy. Planning inspectors examining the joint spatial development strategy will want to see evidence of work on those key issues and to make sure that any views expressed by the county council have been properly taken into consideration.
The approach that we are proposing strikes a balance between ensuring that joint spatial development strategies are developed at the right level and ensuring that the views and expertise of county councils are part of the process. Likewise, in areas with an elected Mayor, we believe it is vital that the Mayor is formally involved in the production of a spatial development strategy, in order to provide clear and accountable leadership for it. That is why combined authorities should not be eligible to produce a joint spatial development strategy. In such cases, the Mayor, with the support of all the member authorities, can approach the Government to ask for spatial development strategy powers to be conferred on them as part of their devolution deal.
I hope that was the response that the hon. Member for Greenwich and Woolwich was looking for. His amendments seem to view spatial development strategies as a co-ordinating layer in the planning system. Amendment 102 seeks to resuscitate the duty to co-operate, which is widely agreed—most Conservative Members would agree, at least—to have been an ineffective mechanism, criticised as inflexible, bureaucratic and slow. That is why the Bill abolishes it. We can all agree that it is vital for local planning authorities to work together to make sure that cross-boundary issues are properly addressed. We expect them to plan for, and deliver, the housing and infrastructure our communities need. The planning system provides a number of mechanisms to assist them in doing so to which we are adding.
We intend to replace the duty with more flexible policy within the revised national planning policy framework, upon which we will consult. This will enable local planning authorities to address any issues of alignment during the preparation of a plan. At present, if an authority fails the duty its local plan must be withdrawn. The Bill also introduces a new requirement to assist with plan making, which we will consider more fully in due course. That will ensure the involvement of those who are vital to production of plans, including the delivery and planning of infrastructure. As such, joint spatial development strategies should not be seen as a co-ordinating function, replacing the duty to co-operate. I hope that the hon. Member for Greenwich and Woolwich will agree to not to press the amendments to a vote.
(2 years, 5 months ago)
Public Bill CommitteesIt is worth observing that a previous Government ripped up completely the spatial development strategy process, largely because of the sense that the populations of this country felt that it was utterly disconnected from the plans, desires and priorities of their communities.
If we are to go down this route and not enable a formalised process by which communities can have their voices heard when it comes to spatial development plans, we are just setting ourselves up for the same mistake that the previous Government made. If we want people to feel confident in these plans and believe that they are in their interests and right for the future of their communities, children and grandchildren, we need to give them the chance to have their voices heard and to have their say. The amendments seem entirely sensible to me.
As we discussed in relation to digital reforms of the planning system, we absolutely share the objective of improving community engagement in all parts of the planning system. It is, however, appropriate to allow different procedures for that engagement, based on the role of the plan or strategy in question.
The current procedure for the examination of spatial development strategies is now well established. It is true that, unlike for local plans, there is no formal right to appear in person. However, we are confident that the current arrangements are fair, proportionate and effective. Experience shows that planning inspectors go to great lengths to ensure that a broad range of relevant interests and views are heard at examinations for spatial development strategies. The Committee may like to know that the most recent spatial development strategy examination, for the London plan in 2019, took place over 12 weeks and the list of participants ran to 27 pages.
The fundamental difference between spatial development strategies and local plans is that they do not designate or allocate specific land for development; that remains the role of the local plan. It should also be remembered that written and oral evidence carry equal weight at examination, and there is no limit on the submission of written evidence.
That brings me to amendment 90. We intend supplementary plans to replace supplementary planning documents, and, once they have successfully passed through consultation and independent examination, to be afforded the same weight as a local plan and other parts of the development plan. We are committed to a fair examination process, which is why we have based it on the arrangements for neighbourhood development plans.
The Bill sets out that, as a general rule, the independent examination of a supplementary plan is to take the form of written representations. That is expected to be more appropriate to their role in setting more specific policies for smaller areas than the local plan. The examiner must, however, hold a hearing if they think that is necessary by virtue of the issues raised or to ensure fairness. We expect there to be a need for guidance to support the independent examination of supplementary plans in general. We have been clear that we will work closely with the sector to refine our implementation plans, and we will be keen to hear views on whether further clarification on the matter of public hearings is necessary.
We have also committed to producing new guidance on community engagement in planning, which will describe the different ways in which communities can get involved and will highlight best practice. The guidance will cover supplementary plans. Given that the processes for both joint spatial development strategies and supplementary plans build on proven existing processes that have been designed to reflect their intended role, I hope the hon. Member for Greenwich and Woolwich will feel able to withdraw the amendments.
The hon. Member for York Central will forgive me if I do not get into the internal politics of York city, but all the same I think her proposals have real merit.
It seems that the housing market—in York, in the lakes and dales, elsewhere in Cumbria and in other parts of the country as well—has got into such a ludicrous situation that our planning law is just not able to keep up with it or to provide local communities with any kind of protection or agency when it comes to challenging that spiralling, out-of-control housing market.
Fairness in the planning system is essential. It is utterly frustrating—in fact, it is absolutely heartbreaking, as the hon. Member said—when communities see the desperate need for affordable homes for families who either are local or who will become local and for those working in social care, hospitality and tourism, schools and every other part of our economy, but the planning system permits us to build for demand and not for need. Communities must have that power and that agency.
Structured fairness in the planning system is essential, but it will require resourcing because the better planning decisions are those made with the community fully involved and with the planners getting out of their offices and meeting developers and communities semi-formally on site long before a proposal has been put in, so that we end up with a proposal that is, effectively, agreed on almost in advance.
When communities feel they are having things done to them, and when whole neighbourhoods are evicted and expelled through section 21 evictions, which the Government are yet to do anything about, those communities are bound to be desperate to have control and agency, to make sure that we make the best use of the resources and powers we have. What a slap in the face it would be for communities if we went down the deliberative route and then found at the end that communities do not have any power to enforce 100% affordability on any development or the permanent occupancy of houses that are developed.
We need to give communities that proper engagement and involvement, and we need there need to be enough planners, with enough resources, so that they can get out of the office and help to communicate with the community and indeed with developers in a consensual and pragmatic way. However, if we do not have the powers and the control at local planning level, we will find people who have been consulted but who still feel completely and utterly powerless.
I thank the hon. Member for York Central for tabling the amendments and the new clause, because they provide us with an opportunity to talk about community engagement.
The English planning system already gives communities a key role, so that they can take an active part in shaping their areas and, in doing so, build local pride and a sense of belonging. We are strengthening that role through the Bill. Communities must be consulted on local plans and on individual planning applications. However, we know that current levels of engagement do not match our ambition of community involvement. That is why, through the Bill, we will increase opportunities for the community to get involved in planning for its area, to ensure that development is brought forward in a way that works best for local people.
The Bill reforms the process for producing local plans so that it is simpler, faster and easier for communities to engage with, and a number of measures in the Bill will create wholly new opportunities to engage. Neighbourhood priority statements will make it easier and quicker for local communities to determine priorities for their area, which will need to be taken into account in preparing local plans. Mandatory design codes will ensure that communities are directly involved in making rules on how they want developments to look and feel. Finally, street votes will provide a new way for residents to permit the additional development they want on their streets.
We intend to set out in regulations the minimum consultation periods on local plans, of eight and six weeks respectively, before a plan can be submitted for independent examination, which is longer than the current statutory requirements.
The amendment is very helpful. I mentioned last week a decision taken recently by the Yorkshire Dales national park authority to ensure that 100% of all new developments will be for permanent occupancy. Although I would like to be wrong, I am pretty sure that it will not be able to enforce that condition. The amendment suggests how the Government might allow planning authorities, be they national parks or local councils, to have that kind of power.
In a community like mine if we build it, they will come. There is no problem meeting demand. If we build a three, four or five-bedroom property anywhere in the lakes, the dales or elsewhere in Cumbria, there will be a person who will pay top dollar for it. It will probably not even be their first home. Meeting demand will always be an answer that developers put forward; the properties will not stand empty—or at least they will not stand unowned. However, we have a planning regime that does not allow communities the agency and control to ensure that we build not for demand but for need.
One of the many blessings of having two national parks in a constituency is that we can compare them and try to encourage one to learn from the other. The Lake district does a great job, but the Yorkshire Dales national park authority has been far-sighted in saying, “These are the houses we need in our community. We don’t need more half-a-million, three-quarters-of-a-million or million-pound barn conversions. We need affordable homes for local families—or for those who will become local families.”
We are welcoming to offcomers from anywhere if they put down roots and contribute to our community. If the local plan could overrule outline planning permission, so that we can ensure that we deliver the homes, properties and business developments that we actually need rather than those that happen to have a place in the market, that would be a real power for communities like mine. I encourage the Minister to take the amendment seriously.
I thank the hon. Member for York Central for the amendment. I thought she was almost tempting me to work with her during part of her speech. I could not quite understand why she seems to want me gone so quickly from this role.
It is good to have the opportunity to debate the amendment, which seeks to allow local plans to amend the details of existing outlined planning permissions so that they are in accordance with the local plan adopted after the grant of those permissions. Our planning reforms seek to ensure that local plans have a greater influence over individual planning decisions to ensure that development reflects what local communities want. In particular, our new decision-making framework under clause 82, which the Committee has debated, will lead to a more plan-led system, providing greater certainty to all.
I must say to the hon. Member for York Central that I cannot accept the amendment. To enable local plans to alter existing outline planning permissions, even when development has already started, runs counter to the long-standing position that the grant for planning permission is a development right. That right provides the certainty that developers need to raise finance and implement the permission. Allowing local plans to effectively rewrite permissions, even when they had already started, would create unnecessary uncertainty, and could see developers, especially small and medium-sized builders, faced with significant wasted costs and delays at a time when we need to support them.
Local planning authorities already have channels to revoke or modify existing planning permissions under section 97 of the Town and Country Planning Act 1990. Importantly, those powers cannot affect works previously carried out and require the local planning authority—this is an important point—to pay compensation in respect of expenditure, loss or damage, so their use should be considered only as a last resort.
Furthermore, as developers often seek in practice to amend outline planning permissions, local planning authorities already have the opportunity to take account of new local plan policies when considering section 73 applications to vary planning conditions. That will also be the case under our new route to make minor variations to planning permissions, as set out in clause 98. For those reasons, I am sorry to tell the hon. Member for York Central that we will not be able to accept the amendment.
This is one of many really helpful amendments being put forward today. I hope the Minister will seriously consider it.
In communities such as mine, there is a housing catastrophe—“crisis” is not an adequate word for it. There is a huge change in the demographic, as well as in the nature and the usage of the housing stock; I am sure that the situation is similar in your constituency, Mrs Murray. The nature of rural and holiday-destination communities has put us in a desperate state, so there is a need for urgent action.
One of the reasons why I am delighted to be a member of this Bill Committee is that it gives us the opportunity to talk about policies that could lead to urgent change. We do not have the time to be deliberative, and to take forever over all this; the crisis is happening now. The horses are leaving the stables at a canter. We need to shut the stable door at the very least, and then put some more horses in, if hon. Members do not mind me flogging a dead horse of a metaphor.
We need to think about this very seriously because so much has changed in the last few years. The timeliness of local plans is critical. We would make poor decisions if we used demographics on housing tenure and demand from 10 years ago; actually, we would probably make poor decisions if we made them on the basis of the way things were three years ago.
The recent census results show that in my community, there has been a 30% rise in the proportion of people who are retired—brilliant! But there is a drop in the number of people in the working-age population. It is therefore unsurprising that we face an absolute care crisis. We cannot find staff to provide support for people in their older age, or at other points in their life when they need care or support. Likewise, there would be 60,000 people working in the hospitality and tourism industry, which is utterly fundamental and the biggest employer in Cumbria, if we could fill the vacancies.
There has been a clear and very quick change in the nature of our demographic, with whole clearances of the working-age population. Long-term rentals are collapsing, and at least 50% of those properties are moving into the short-term Airbnb sector. We need to ensure that plans for development in our communities are based on live, current data. That is essential, so I hope the Minister will take this amendment seriously.
In the new planning system, supplementary plans will replace supplementary planning documents. Once they have successfully passed through consultation and independent examination, they will be afforded the same weight as a local plan under the parts of the development plan.
Supplementary plans will provide local planning authorities with the flexibility to make policies for specific sites, or groups of sites, quickly. That could help to address urgent site-specific matters, for example in response to a new regeneration opportunity that had not been identified through the local plan, or to set out design policies outside the normal local plan process. We envisage a connection between local and supplementary plans in some cases—for example, where a local plan allocates a site-specific plan, and the supplementary plan sets out a design code for that site.
However, imposing an arbitrary tie between local and supplementary plans, as proposed by this amendment, could fetter the ability of authorities to use supplementary plans to respond positively to changes in their area at pace in the way that was intended. We have made clear our intention to bring forward in regulations a requirement for all local plans to be updated at least every five years. It is therefore not necessary to require supplementary plans to be made within five years of a local plan being adopted.
This is a wise amendment and I hope that the Minister will take it seriously. I mentioned earlier the fact that fewer than 1% of the county’s population engaged with a consultation on local government reorganisation in Cumbria. The fact that they were ignored probably explains why people do not engage so much: never have we been more consulted as a society, and never have we been less listened to.
It is important to flesh out the status of neighbourhood priority statements. When people make representations on the future of their communities, we need to know whether they hold any status whatsoever. For example, a parish might identify a specific need for supported living for younger people with learning disabilities or for older people. There may be a specific need, as is the case in many parishes in my constituency, for on-farm agricultural dwellings for farmers to retire to or for agricultural labourers to live in while working on site. Such special needs identified by district and parish absolutely should be incorporated into the planning process.
Furthermore, neighbourhood priority statements should be taken into even greater consideration in planning discussions and decisions in those areas where the planning committee is not elected. I mentioned national parks earlier. Not a single member of the national park planning boards in England and Wales is directly elected. They are good people—most of them are very good people—who do their very best, but it does not seem right that people who make decisions are not directly accountable to those affected by them. That should be addressed in other ways, but in the meantime it is important that even greater consideration is given to neighbourhood priority statements in those communities where democracy is not part of the planning process.
I welcome the Opposition’s support for neighbourhood planning. However, I do not agree that the amendment is necessary to ensure that neighbourhood priorities statements are properly considered in the planning process. The amendments made by schedule 7 set out that local planning authorities must have regard to any neighbourhood priorities statements in their areas when preparing their local plans. That will be tested independently at examination, which I think is an important point. The new local plan will be informed by any neighbourhood priorities statements and, alongside any neighbourhood plans in force, will form the basis for decisions on individual planning applications and enforcement decisions.
To respond to the hon. Member for Greenwich and Woolwich, the intent is not for neighbourhood priority statements to replace a community’s ability to engage and form a neighbourhood plan. However, we do not want to create another layer to the formal development plan by turning priorities statements into a form of plan. That would make the planning system more complex and go against what we are trying to achieve with our reforms.
We are clear that the planning process must be more democratic, which is why we are making it easier and simpler for communities to engage. In addition to neighbourhood priorities statements, communities will be also be able to engage through new measures, including mandatory design codes, allowing communities to be directly involved in making rules on how they want developments to look and feel, with a much greater emphasis on environmental sustainability; street votes, allowing residents to propose developments on their street and for a vote to be held on whether planning permission should be given; and measures on street names, removing a local authority’s ability to impose street name changes on a community and instead requiring it to first obtain support from a majority of the local electorate on the street.
We are clear that communities should be at the heart of the local plan-making process, which is why we intend to include a requirement for two rounds of community engagement, for a minimum of eight and six weeks respectively. That is longer than the current statutory minimum.
We will create new guidance on best practice in community engagement, including digital approaches to engagement with sector experts, to provide local authorities and developers with a toolkit to improve local engagement. We will ensure that all members of the community have the opportunity to engage if they wish, supported by digital tools to make engagement easier and more accessible, bringing the current system into the 21st century. On that basis, I hope that the hon. Member for Greenwich and Woolwich will withdraw his amendment.
(2 years, 5 months ago)
Public Bill CommitteesIt is a great pleasure to serve under your oversight and chairmanship, Mr Hollobone, and I offer a huge welcome to the new Ministers. I also pay tribute to the right hon. Member for Pudsey and the hon. Member for Harborough. The debate in Committee has indeed been consensual, collegiate and courteous, and I am sure that is how it will continue. It is a privilege to be on the Opposition side of the room and to join in the important endeavour of scrutinising this important Bill.
When it comes to communities like mine, it is worth bearing in mind that long-term empty dwellings—properties that are not used at all—are a challenge. In my district of South Lakeland, we have something in the region of 900 to 1,000 of such properties at any given time. It is likely that there are between seven and 10 times as many properties not lived in, but classified as second homes. If the Government are committed to retrieving properties that are out of permanent usage, and which are effectively displacing local people and the local workforce, empty homes are important, but not nearly as important as tackling the excessive second home ownership problem in communities such as the lakes and the dales. We look forward to discussing those issues when we consider later amendments today.
First, I thank the hon. Member for Nottingham North for his very kind welcome. I look forward to working with him and his fellow shadow Minister, the hon. Member for Greenwich and Woolwich, in a good spirit. I suspect that we may not agree on everything as the Bill goes through the House, but I am confident that we will work together with a good spirit, both in Committee and outside.
In response to a couple of the points that have been made, I know that the impact assessment has been a concern. It will be provided shortly, and I would certainly expect that to be the case before the conclusion of the Committee’s proceedings. I hope that we will provide it as soon as we can.
On Wales, we have already given councils the power to apply a 300% premium to properties that have been empty for more than 10 years. That is part of our stepped approach to increasing the level of premium the longer the property remains empty. What we propose strikes the right balance between providing an incentive to bring empty properties back into use while recognising more challenging cases in which owners are taking action to have property suitable for accommodation within that time frame.
I thank the hon. Member for Westmorland and Lonsdale for his kind welcome. I do not disagree with his point about the challenges in many areas, especially those that have a strong tourist economy. I am sure that we will debate those challenges when we come to the next set of amendments. It is good to hear his comments, and that the ministerial team are thinking about that issue.
Question put and agreed to.
Clause 72 accordingly ordered to stand part of the Bill.
Clause 73
Dwellings occupied periodically: England
I also agree that the amendments are helpful, and I urge the Government to seriously consider them. There is no doubt in my mind that although the housing crisis is one of supply, the supply that we have is distorted. We live in a strange world in which property is seen more as an investment than places for people to live and have homes. That is the way the market is, but if the market is broken, surely we have to intervene.
Levelling up is an interesting phrase and concept—one that I personally believe in—but we have to understand carefully what drives the absence of opportunity that we are trying to tackle. Housing, more than any other issue that the Government will consider through the Bill, is the cornerstone. There are challenges in every part of our country, so there will need to be an acknowledgment that the market is distorted and broken, and that it will therefore need radical intervention if we are to make best use of the properties we have and maximise opportunities for everybody, in every part of this country.
Empty dwellings—as distinct from second homes and holiday lets—are a challenge. I mentioned that they are a big problem in my community, although not as big a problem as second homes and holiday lets. Properties are empty for a range of reasons, some of which are perfectly understandable, others less so. Having time limits is wise, as is ensuring that homes are effectively monitored. Using fiscal measures—fines, taxation and so on—to encourage people and focus their minds to make the best use of the property they own is also wise.
I encourage Ministers to make the available tools easier to use. They include empty dwelling management orders, which basically allow local authorities to requisition an empty home and turn it into a social rented property. I have seen that work in my own community, but it is hard to do. Such orders are valuable, because a property can be brought back into usage—it effectively becomes a social rented property under the control of the local authority for seven years—but they are most useful because they act as a warning shot to other landlords and show what might happen to them if they do not make good use of their properties. The problem is that the process is lengthy, laborious, expensive and difficult. I encourage Ministers to look carefully at beefing up that existing provision by ensuring that councils can use it more readily.
We want to build more genuinely affordable homes for people, but it is just as important that we made good use of properties that already exist by turning them into formal homes. That is a no-brainer, really. As far as I am aware, empty dwelling management orders are not addressed in the Bill, but I would love it if the Government considered beefing them up and making them more easily accessible, which would draw more homes back into use for local communities.
I thank the hon. Member for York Central for her kind welcome to the Committee. It sounds as though I am likely to hear a great deal about York Central—somewhere I am not a stranger to, having been there to present a high streets award to Bishy Road some years ago, in the dim and distant past when I was last a Minister in this Department.
The Government’s proposal for a second homes premium makes clear the situations in which a council may quite properly apply a premium. Those situations are, first, that a property is substantially furnished—distinguishing it from empty property dwellings that may more properly be subject to the empty homes premium—and secondly, that there must be no resident of the property. For the purposes of council tax, a resident is someone who has their sole or main residence in the dwelling. In that case, the resident would pay the council tax normally due on that dwelling as essentially it would be their main home. They would not be subject to a premium as it is their sole or main residence.
Owners of second homes may well occupy those properties during the course of the year, and how much use they make of them will vary depending on circumstances. It may be that the hon. Member’s amendment is to enable the premium to be applied only when the homeowner does not use the property for more than six months a year. If that is the case, it might be helpful to set out how councils already determine what is and is not a second home.
Councils already make judgments as to whether an individual’s property is their sole or main residence and, by default, what might be a second home. That is because they want to be satisfied that any discounts or exemptions are applied correctly and to the right property. In making a judgment on whether a property is a sole or main residence, councils will reflect on legislation and case law and take into account a range of factors including where the person is registered with a doctor, where they are registered to vote and the occupancy of the property.
Given those established processes for assessing what is a second home, I do not believe that a further restriction on the definition of properties that may be subject to a premium is needed. In addition, the assessment of whether a property is a second home will take into account a number of factors and not just the period of occupation. A reference to the number of days may well preclude treatment of the property as a second home when other factors suggest that, in effect, it is being used as a second home. The amendment could result in a reduction in the number of second homes liable for the premium.
Amendment 80 would mean that, where the property has a tenant for more than six months, the premium would not apply. Council tax is usually paid by the occupants of the property and, in cases where a tenant is occupying the property as their sole or main residence, the tenant would be liable for that council tax, not the property owner. Therefore, no premium would be due.
The premium is not aimed at properties that are let out to a tenant as they will be somebody’s sole or main residence. It is right that a second homes premium should not apply to such properties. With those clarifications, I hope the hon. Member will agree to withdraw her amendment.
This, too, is a welcome amendment. It is also a reminder to us all that if we are to take the radical action needed to make the best use of the properties we have in this country, so that we can underpin communities, particularly those such as mine in the Lakes and the Dales in Cumbria, we will have to be wise in ensuring that the radical measures in the Bill are actually enforced. For example, I can think of countless properties in Cumbria with a local occupancy clause on them that are currently being advertised as Airbnbs. I see that the Yorkshire Dales National Park Authority recently made great strides forward, making it clear that new properties to be built within the national park must all be for 100% permanent occupancy. I do not think the authority has the power to enforce that, but the fact that it is showing that leadership is something we should massively welcome.
There will be a whole industry built around trying to create loopholes and get around any mechanisms—those either already in the Bill or that might come into it—to control excessive second home ownership, numbers of holiday lets and the presence of unused, empty properties, so we must be savvy and wise, and prevent that. Not all of that will be about the right legislation; it will also be about the right commitment to funding.
The Government talk about funding levelling up and putting money into projects that may involve construction, and so on. That is absolutely right. It is a great use of money—and will probably cost less money—to invest better in planning departments and to make sure we have the quality and the numbers of people to get out there and police the regulations that already exist and those we hope will come in through the Bill.
There is no point having the power in theory to maintain a permanent population in our towns and villages if we cannot enforce that. At the moment, the evidence before our eyes, certainly in Cumbria, is that we are unable to ensure adequate enforcement. The Government must invest, and it would be a wise investment, as it would rescue many homes for local communities to underpin the local workforce.
I thank the hon. Member for York Central for the thought that has gone in to her amendment. I am sure we all agree about the importance of ensuring that people play by the rules and provide accurate information to allow councils to issue the correct council tax bills, and also that when people do not do the right thing, councils can take the appropriate steps.
The proposed amendments would require the Secretary of State to make regulations to create new offences, punishable by a fine, in relation to the submission of occupancy information. I completely understand the objectives of such a measure. However, I assure the hon. Member that existing powers already enable councils to take appropriate action where there is evidence that the individual has taken steps to avoid payment of the premium. The Local Government Finance Act 1992 already provides powers for councils to issue penalties to a person who fails to provide information requested to identify who is liable for council tax on a dwelling, or knowingly supplies information that is inaccurate. In addition, where false representation is made dishonestly for gain, the Fraud Act 2006 may well apply.
I share the hon. Member’s concerns about ensuring that evidence of wrongdoing is tackled and that councils have appropriate powers, and I have described those that already exist. However, if we do become aware of evidence of an underlying problem that cannot be covered by the powers that I have set out, the Secretary of State does have powers to make regulations to create powers for councils to require information and to create offences for a failure to provide information or for providing false information. We have already used those powers in connection with information for local council tax support schemes. We would be able to use them again if evidence were provided that the application of the premium was being frustrated by misinformation that could not be tackled by the existing powers. I trust that, with the assurances that I have described, the hon. Member for York Central will withdraw her amendment.
(2 years, 5 months ago)
Public Bill CommitteesI thank the hon. Member for Greenwich and Woolwich for his kind welcome and good wishes. I look forward to working with him across the Dispatch Box, in a reasonable and constructive way.
We spoke at length earlier about second homes, which I suspect will be a running theme for the Committee. We talked about the importance of addressing the issues that can be caused by second homes and holiday lets in an area. I want to focus on why the amendment is not needed.
We acknowledge the importance of data on holiday lets for supporting tourism and manging the impacts on local communities. However, I believe that there may have been some misrepresentation of the intent of clause 75. The clause aims to require planning authorities to process their planning data in accordance with approved data standards, whereas the amendment seeks to regulate for the collection of data by planning authorities. Nothing in the clause can require the collection of data by planning authorities.
Having said that, let me add a point of reassurance: where planning authorities have holiday let data, subsection (2)(b) provides the ability for data standards to be set for it. The amendment tabled by the hon. Member for Westmorland and Lonsdale is not necessary to achieve his intention. Regulations will specify which planning data can be made subject to data standards and require planning authorities to comply with those standards once created.
We will turn to the substance of second homes and short-term let policy in due course. We take the concerns raised by the hon. Member for Westmorland and Lonsdale seriously. I hope that I have provided sufficient reassurance at this point to allow him to withdraw his amendment.
I will not press the amendment to a vote at this point, but I may bring the measure back later in another guise. I am very grateful that the Minister has accepted the need for this data, so that decisions can be made and otherwise.
As I and other hon. Members said earlier, the existence of second homes and holiday lets is not, by any means, an unalloyed bad. The holiday let market, in particular, is crucial to the economy and the hospitality and tourism industry in Cumbria, which is worth £3.5 billion a year and employs 60,000 people, but we have to get the balance right. There is not a lot of point in having holiday cottages where people go on holiday but find they cannot get a bite to eat, because it turns out that their holiday cottage was the chef’s house last year, and they have been evicted and the balance is all wrong.
One assumes that, if the Government were to accept further amendments that might be proposed later, there would be powers available to local authorities to restrict the number of second homes or holiday lets in a community. We would not want to do that carte blanche; it would have to be done on the basis of information. We might decide that up to 20% of a community could be second homes. How would we know whether that was the case and be able to make a judgment, unless the data were available?
I will not press the amendment to a vote now, and I am grateful for the Minister’s remarks. It is important that we make decisions to save our communities based on the reality of the situation out there. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
This is a good and wise amendment that looks at the additional responsibilities placed on planning departments and how important it is that the Government ensure adequate resourcing for these new functions so that the digitisation of the planning system is performed adequately. It really opens a window on the wider issue that the hon. Member for Greenwich and Woolwich rightly highlighted into the staffing, resourcing and competence of planning departments across the country.
The Bill introduces many measures—perhaps many more than some of us would like. How frustrating will it be to developers, proposers, local residents, members of councils and local communities—everyone—if it turns out that the new powers and functions that might come about simply cannot be enacted? We see around the country a reduction in the quality of planning decisions, not because planners are not good people but because there are too few of them.
There is not the capacity for planners to go and spend a semi-formal hour with a potential developer or householder to scope out what may or may not be possible. That would save people putting in an application that was always doomed to fail, or ensure that an application is more likely to be in line with planning policy and the wishes of the local community. We get bad decisions that end up being appealed, which is more expensive for everybody and sucks all the energy out of that planning department when it should be focused on trying to preserve and promote the community’s priorities.
We will have many debates—we have had some already—about what planning provisions should be in the Bill and what powers local communities should have. It will all be pretty meaningless if there is no way whatsoever of ensuring that the new provisions are enforceable.
In considering the thrust of the hon. Gentleman’s amendment, the Government recognise the need to ensure that planning authorities are well equipped and supported to successfully deliver these reforms. The Department has already adopted a joint approach with local authorities to modernise the planning system. Examples include the work to reduce invalid planning applications, the back-office planning system software projects and our local plans pathfinders.
We will continue to fund and run pathfinders and pilot projects to test and develop the standards, tools, guidance and templates needed by planning authorities. Central to that, we will work with planning authorities to ensure that the reforms and the legislative requirements we are placing on them work as we all want and intend. We therefore agree on the need to support planning authorities. That work is already under way and will continue. I am unconvinced that putting a vague requirement of doubtful enforceability into law would meaningfully add to that commitment.