Levelling-up and Regeneration Bill (Twenty Fifth sitting)
(Limited Text - Ministerial Extracts only)
Read Full debateTuesday 18th October 2022
(1 year, 6 months ago)
Public Bill CommitteesLevelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Amendment Paper: Public Bill Committee Amendments as at 18 October 2022 - (18 Oct 2022)
The Committee divided: - Ayes: 5 / Noes: 8 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 8 - Question accordingly negatived.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
It is a pleasure to serve under your chairmanship, Sir Mark. I am grateful to the hon. Member for South Shields for raising this matter. As MPs for the north-east, we are acutely aware of the value of manufacturing. She referred to her manufacturing powerhouse, which the north-east certainly is. We want it to continue to thrive, but we also want the entire UK to thrive when it comes to manufacturing.
Manufacturing is vital to levelling up as it provides high-skilled and well-paid jobs. It is supported by the Government, including through a new £1.4 billion global Britain investment fund, with grants to encourage internationally mobile companies to invest in the UK’s critical and most innovative industries.
There are already publicly available official statistics covering matters in the new clause, such as the number of manufacturing jobs by region. We are a little concerned that the new clause would require an additional and disproportionate burden on businesses to collect data in a timely manner at a time when they are already facing unprecedented rising costs, which are particularly acute for manufacturing businesses. We therefore feel that the new clause is unnecessary at this stage.
The hon. Member for Westmorland and Lonsdale talked about having real metrics at the heart of levelling up, which the Government are certainly passionate about. We want to be able to measure levelling up to show that we are successfully delivering it. That is why we are already taking steps to improve the quality of the spatial data that we have available.
My Department has established a new spatial data unit to drive forward the data transformation required in central Government. The unit supports the delivery of levelling up by transforming the way the UK Government gather, store and manipulate sub-national data to underpin transparent and open policy making. On that basis, I think we are reaching for the same end here. I reassure the hon. Member for South Shields that the spatial data unit will be pivotal in this matter. The Department for Education is also working to deliver a better understanding of local area skills demand and supply through its unit for future skills.
Mrs Lewell-Buck
I referred to the fact that the Government’s technical annex to the White Paper identifies an issue with measuring and understanding pay, jobs, living standards and productivity. If the Government do not want to put an extra burden on businesses, who will they ask to get this data for them? How will they do that?
Dehenna Davison
This is a matter for our excellent new spatial data unit, which is doing valiant work. It will really help us to understand the scale of the challenges, as well as the progress that we are making against the levelling-up missions. As a Government, we are determined to level up and make progress against those missions.
We are doing a lot of great work in this area and the spatial data unit really will be revolutionary in how we gather this data. For the reasons I have outlined, I ask the hon. Lady to withdraw her new clause.
Tim Farron
I congratulate the hon. Member for Buckingham on bringing forward these important new clauses. I agree with an awful lot of what he said. Undoubtably, food security is something that our country has overlooked hugely in recent decades, to our great cost. By some metrics, we produce only about 55% of the food we eat. That is not just a dangerous position to be in given the global situation, but it is morally questionable. As a first-world nation, we will go out and find the food we need, and we will inflate prices on the commodities markets, which will end up increasing prices for the poorest people in the world. On that level, we have a moral requirement to make good use of the land we have to produce food to feed ourselves so that we are not literally starving other people around the world.
It is worth pointing out that 70% of England’s land and about 72% of the United Kingdom’s land is agricultural. If we are serious about tackling global carbon emissions and improving biodiversity, we have to start with those working in farming. Anyone who thinks we can improve our environment without keeping people farming to deliver those environmental policies is not living in the real world.
The other thing that makes the new clauses attractive to me is that they refer to the responsibilities not just of planning authorities, but of Ministers. When it comes to planning authorities, a requirement to look at the impact of any proposal on food production and farming may sometimes mean that we protect land and do not allow development. It may also sometimes mean that we permit development, in order to allow, for example, diversification. Some level of renewable energy on farm sites is something that farmers actively want, to help shore up their businesses. I agree that we do not want to see whole farms handed over to solar, but many farmers would like the option to use renewables for environmental reasons and to cross-subsidise and diversify their business. Also, sometimes we simply need labour in those communities, and we may need to build some houses to ensure that we have sustainable farming.
I wish that the provisions of these important new clauses were already in law, because they would stop the Government botching the transition from the common agricultural policy, which was far from perfect, to the new ELM scheme. That will see farmers lose 20% of their income by the end of this year, with very little to replace it. Fewer than 2% of the 1,000 farmers in my patch—13 of them—have signed up for the new sustainable farming incentive. The botching of the transition means that farmers will lose their income, and so far they have very little to compensate for it.
However, to botch the unbotching is almost inexcusable. In the last few weeks, the Government have signalled that they might be ready to rip up ELMS altogether, after farmers have spent two years preparing for it. We see foolishness upon foolishness, all of which puts our farmers in a desperate position. They have never been more angry with the Government of the day—and we do not have time to go into the damage being done to our farming community by trade deals. We desperately need to remember, at the heart of policy making, nationally and locally, the importance of farmers and farming to food production and the environment. If the hon. Member for Buckingham were to press the new clauses to a vote, he could count me on his side—I would vote with him.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)
It is a pleasure to serve under your chairmanship, Sir Mark. I thank my hon. Friend the Member for Buckingham for his introduction to the new clauses and for the work he is doing on this important policy area. We absolutely accept the challenge that he puts to us. He made strong points about the importance of balancing competing demands, all of which are important in isolation and need to be thought through and integrated as best as possible, while recognising that it is sometimes not possible to do everything. The point of Government, both local and national, is to try to ensure that that balance is struck in the best possible way.
I hesitate to go too much into an agricultural discussion, although the hon. Member for Westmorland and Lonsdale was keen to move into that space, but I acknowledge the points that have been made. It is critical that we continue to have food security in the United Kingdom, that consumers have access to good quality, healthy and sustainable food and that domestic producers have a viable business in the long run. Although I do not want to trade figures, the figures I have in front of me state that we produce about 60% of what we eat, and we produce roughly 70% to 75% of what we can produce in this country. Given the problem of dates, times and the like, I recognise that those things move around, although they seem to have been relatively static over the last 20 years. Therefore—to my hon. Friend’s point—the question is whether the planning system needs further content and signals so that it is clear that these things can be weighed up more clearly.
At the current time, things are going on elsewhere in Government, particularly around the Agriculture Act, which my hon. Friend referenced. The Act commits the Secretary of State to have regard to the need to encourage the production of food by producers in England and for that production to be done in an environmentally sustainable way. Also in the Agriculture Act is a legal obligation to produce an assessment of food security once every three years. I hope that goes some way towards reassuring my hon. Friend, although I acknowledge that he is also interested specifically in the planning element.
This might be one of the statements that I make regularly over the next few minutes or so, but I am happy to talk to my hon. Friend in more detail about the underlying intent and calls behind his new clause. However, at the current time, I ask him to withdraw it in lieu of further discussions and debate outside after our sitting.
Greg Smith
I welcome my hon. Friend’s commitment to keep the conversation going. This is a subject, as right hon. and hon. Members can perhaps understand, that I get very passionate about. I could have a debate on agriculture for as many hours as the hon. Member for Westmorland and Lonsdale could. Our farmers produce the best food in the world, and we have to find the right balance to ensure that they have the land on which to produce it. In the spirit of carrying on the conversation before the Bill reports, I will not push the new clause to a vote, but I urge the Government to keep listening and talking to protect our world-class, best-in-class British farmers. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 14
Prohibition of mandatory targets and abolition of five-year land supply rule
“(1) Any housebuilding target for local planning authorities in—
(a) the National Planning Policy Framework (NPPF),
(b) regulations made under any enactment, or
(c) any planning policy document
may only be advisory and not mandatory.
(2) Accordingly, such targets should not be taken into account in determining planning applications.
(3) The NPPF must not impose an obligation on local planning authorities to ensure that sufficient housing development sites are available over five years or any other given period.”—(Greg Smith.)
This new clause requires a revised NPPF within six months to provide that housing targets are advisory not mandatory and that the five-year housing land supply rule will no longer apply.
Brought up, and read the First time.
Greg Smith
This should be relatively straightforward, given the commitments that my right hon. Friend the Prime Minister made in the leadership election during the summer. I believe that she described her approach as ending the Soviet-style, top-down housing targets that exist in the United Kingdom at the moment.
New clause 14, in the name of my right hon. Friend the Member for Chipping Barnet (Theresa Villiers), gets to the nub of the matter by getting rid of mandatory targets and leaving local areas free to decide what housing development, commercial development, infrastructure and so on they need. It also gets rid of something that has been an aberration in the planning system for far too long. I have talked to local government colleagues up and down the land, and the five-year land supply rules have got in the way of many areas deciding exactly what is right for them and of their ability to be dynamic.
The new clause gets to the nub of these issues. I hope that the Government can listen and that we can move forward by adding to the Bill either this new clause or whatever the Government wish to bring forward to meet the Prime Minister’s commitments over the summer.
Lee Rowley
Again, I am grateful to my hon. Friend the Member for Buckingham for tabling the new clauses and for articulating the rationale and reasoning for them. I think he and everybody else present would accept the principle that these would be significant changes, whatever people’s views about some of the important points he highlighted, such as the five-year housing land supply rules, local plans and the NPPF. The appropriate balance needs to be struck in each case, and those debates could detain the Committee for many hours, with extremely strongly held views in many places. Each of us will have—as I do and as my hon. Friend the Member for Buckingham and my right hon. Friend the Member for Chipping Barnet, who is not on the Committee, do—individual recollections and experiences of the implications of the NPPF, the five-year housing land supply rules and other things for their constituencies and more broadly.
I recognise and acknowledge the significant underlying element of change that is proposed in the new clauses, the significant move away from the current approach, and the balance that needs to be struck. I also acknowledge that, as part of the leadership campaign, my right hon. Friend the Prime Minister made a series of statements over the summer about looking again at this area and bringing forward new proposals. However, I hope that my hon. Friend the Member for Buckingham will be content on this occasion to emphasise the point in his speech, which was that we should either look at the new clauses or bring forward additional proposals. I hope we can bring forward proposals in due course that he will have the opportunity to comment on, so I ask him to withdraw the new clause, pending further discussions in advance of the Bill coming back at a later stage.
Greg Smith
I am grateful to my hon. Friend the Minister for those commitments. The statements made over the summer were very clear, and I look forward to working with the Government on their proposals or to put new clause 14 into the Bill on Report.
New clause 15 goes to the heart of localism and the same issue that new clause 14 talks about: the ability of local communities, rather than Whitehall, to decide. Given the commitment that the Minister made, I am equally content that we continue the conversation, which we will come back to on Report. For the time being, I am content not to press new clause 15.
I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn
New Clause 16
Character test: determination of applications
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to serve with you in the Chair, Sir Mark. New clause 37 in my name and that of my hon. Friends, is, like new clause 16, a simple amendment. I will not devote too much time to making the case for it.
We all agree that it is essential that the integrity of the planning system is upheld, not only to ensure that unauthorised development cannot blight local communities, but to maintain public trust and confidence in the planning decision-making process. When considering chapter 5 of the Bill, we had a number of debates about how planning enforcement might be improved as well as better resourced. A number of members of the Committee, including my hon. Friend the Member for South Shields, have spoken at length about the impact that rogue developers can have on communities across the country.
New clause 37 seeks to probe the Government on a specific issue of concern. As the hon. Member for Buckingham has just made clear, at present it appears that it is entirely permissible for an individual developer to consistently breach planning control, with the only risk being that they face enforcement action in respect of that specific breach. We believe that it is right that enforcement of planning law and regulation is based on the principle of proportionality and that when it comes to cases of alleged unauthorised development, local authorities have discretion to determine how the breach can be remedied. However, we also believe there is a strong case for changing the law so that certain categories of proscribed persons, in particular those who breach planning control and make no efforts to rectify those breaches, can be prohibited from carrying out development of any kind.
New clause 37 would allow that sanction to be applied to those who persistently offend when it comes to contraventions of planning law and regulation. Its objective is the same as new clause 16, on a character test and the prior record of an applicant. Adopting new clause 37, or a version of it, would reduce the burden on local authorities that are attempting to deal with the minority of rogue developers of this kind, and would also strengthen the integrity of the system overall. I hope the Government will give it serious consideration.
Lee Rowley
I thank my hon. Friend the Member for Buckingham and the hon. Member for Greenwich and Woolwich for their new clauses. I am extremely sympathetic to some of the concerns. I agree with the hon. Member that ensuring the integrity of the planning system is paramount. We will all have examples from across the country of where development does not occur in the way that is sanctioned, or before it is sanctioned, and then an attempt is made to gain planning permission retrospectively by those who are not necessarily following either the letter or the spirit of the rules as set down. It is extremely frustrating.
By the same token, we have to tread extraordinarily carefully here. There are a set of principles, which my hon. Friend and the hon. Member acknowledged in their speeches—that the planning system is based on a specific application, which should be judged accordingly on its merits. It is challenging to bring forward a form of character test within those principles, although I recognise that there is an issue here that many communities up and down the land are seeing.
As those who have debated it for longer than I have will know, the Bill already includes a significant package of measures that will help tackle persistent abuses of the system. Those will speed up the enforcement process, restrict the circumstances in which an appeal can be lodged, increase fines for non-compliance and discourage intentional unauthorised developments that rely on a slow enforcement timescale. The Government acknowledge some of the concerns and are trying to find appropriate levers with which to approach them.
While offering a commitment to continue to talk about this issue, although wanting to be being clear that it is extremely difficult in terms of legislation, as my hon. Friend and the hon. Member acknowledged, the Government are not minded to accept the new clauses. I therefore ask both Members not to press them.
Greg Smith
I welcome the commitment my hon. Friend has just made to carrying on the conversation. I accept the complexity, in a system that looks at individual cases, of bringing in a more universal test. However, there are other areas of life where people—for example, those with particular criminal records—are barred from doing certain activities—particularly where children are involved. If we could extend the principle and precedent whereby somebody who has form with rogue development—that is, turn up, build now and apologise later—which blights communities up and down the land, is barred through legislation that is practical and that does not undermine the planning system, I am up for carrying on that conversation. If not through the exact wording of this new clause, then perhaps by another means, we could find a happy solution that protects our communities from those who, I am sorry to say, continue to blight them by building out schemes that they do not have planning permission for.
Lee Rowley
I thank hon. Members for their contributions. At a high level, the new clause is attractive, and I am tempted by it, but for reasons that I will outline, I am afraid that we will be resisting it. I completely accept the way in which all three of my colleagues have articulated the issues. I am sure that everybody in this room has stories of cases in which, although planning applications have gone through the process, there is a general lack of consent from the community to the manner in which they went forward.
Notwithstanding that, and notwithstanding my acceptance of the points that the hon. Member for York Central rightly made about the importance of franchise of place and embedding local consent in decision making, two fundamental principles mean that I am unable to accept the new clause. First, it is absolutely vital that we retain the principle that those who own land have the right to make applications, and to understand the processes that they can go through. Once that due process has been concluded, those landowners have the right to do as they wish with their land, within the established framework that the Government deem it reasonable and proportionate to apply.
Secondly—I recognise that I am speaking to people with a great interest in this area, and I am probably telling them lots of things that they already know—we would all accept that planning is a long, difficult and convoluted process at the best of times. In another part of my portfolio, I am looking at the reasons why a large proportion of local authorities do not have a local plan; a local plan is one of the processes through which discussion takes place and consent, hopefully, is given to development. That is a multi-stage, multi-consultative process in which people can put forward ideas, and in which those ideas can be tested, and then accepted or not, first in the community, and then with an additional body looking at them. Once that process has concluded, on most occasions, there is the opportunity for planning applications to be debated in principle. The community has the opportunity to get involved at that stage, and then once again in the case of reserved matters.
That is a very imperfect process, and we will all have lots of experience of it not leading to communities liking, or particularly wanting, individual applications. However, it is important to note the multi-stage nature of the process and the multiple elements of consultation in. While I understand the sentiments behind the new clause and the frustrations that have been articulated, and while I recognise that the system is very imperfect, I ask my hon. Friend the Member for Buckingham to consider withdrawing the new clause. As many Members know, and occasionally remark on, I am only six weeks in post, but I have spoken to a number of people who have been involved with these matters for years. I understand that this proposal has been around for many decades, and one of the reasons why it has not been taken forward is the fundamental change it would make to the planning system. I accept and understand the importance of the new clause, but we are not able to accept it.
Rachael Maskell
I appreciate that the Minister was not here for earlier stages of debate on the Bill. Will he consider my suggestion about greater community engagement and involvement, and my point about ensuring deliberative democracy when sites are brought forward for use? It would be a way of trying to address the problem at source, rather than retrospectively, and it would give communities that engagement, franchise, and opportunity to determine how the community develops.
Lee Rowley
I am grateful to the hon. Lady for her comments. We may have another discussion about deliberative democracy when we debate another amendment in a few minutes’ time.
I am a great advocate of local communities having as much involvement in these discussions as possible. It is a shame when councils—I experienced this in North East Derbyshire a number of years ago—do not emphasise the discussion at the appropriate point, and people do not feel as involved as they need to if they are to understand what happens later in the process. I hope that local councils take opportunities to be as broad and open in their discussions as possible. I am also a big fan of neighbourhood plans, because they give communities the opportunity to be more involved in discussion. There are parts of the system that can be used at the moment, though I respect and acknowledge the challenge of involving local communities in it. I ask my hon. Friend to withdraw the new clause.
Greg Smith
I absolutely hear what my hon. Friend says about due process for landowners who wish to develop their land. I am not in any way, shape or form seeking to take any of that away through the new clause; it is quite right that landowners or developers should have the due process set out, and a clear path to appeal if they feel that they have not been treated fairly.
What is missing is the other side of the equation, when something materially affects a village, town or neighbourhood. Some months ago, when speaking to an amendment, I gave the example of the way flooding is dealt with in the planning process. In the village of Ickford in my constituency, every villager knew that a piece of land flooded not just a little, but a lot, but that was completely ignored throughout the planning process and when it got to the Planning Inspectorate. The community could see the problem—they knew and felt it; they had puddles lapping up to the top of their welly boots regularly—but was left with a choice of going to judicial review or nothing. That community right of appeal did not exist. They could see, feel and breathe the issues. This was the place they call home, but that knowledge could not be put into any meaningful challenge that would not cost the village £1 million.
I am happy to withdraw the new clause for the time being, but I really urge my hon. Friend to look at how we can restore fairness, so that when a place feels that the planning system has worked against it, it can lodge a good, well-thought-through challenge that that does not go into the unaffordable realms of judicial review. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 18
Start of development for planning purposes
“(1) The Town and Country Planning Act 1990 is amended as follows.
(2) In section 56(4) (time when development begun) leave out paragraphs (aa) to (c)
(3) In section 92(2)(b) (outline planning permission) for ‘two years’ substitute ‘one year.”—(Greg Smith.)
Brought up, and read the First time.
Tim Farron
These interesting new clauses highlight two issues about which I am particularly concerned—issues to which the hon. Gentleman alluded. They are very helpful new clauses, and I am grateful to him for tabling them. He is right that, over the past decade, roughly a million properties granted planning permission have not been built. That tells us something. When the Government consider growth and the need for new developments, they think they just need to loosen planning regulations. Well, the answer to that is that 1 million new homes have obtained planning permission but have not been built. Let us focus on making sure that those developments get delivered, rather than on reducing the regulations, because that tends to lead to the wrong sort of homes in the wrong sort of places.
Another issue affects tens of thousands—but not a million—houses. It is when developments begin but are not completed. That may be for a range of reasons, such as genuine business failure. It may also be due to a disreputable developer; we have seen plenty of those. I think of one in my constituency, a serial bankrupt, and it seems obvious to me that in their case, we are talking about a deliberate business tactic. Developments are either completely or partially abandoned. That is a waste of time and money, and it creates eyesores for communities, when the development could have provided nice, decent homes for people to live in.
Would the Government consider going further than the new clauses suggest and applying existing legislation, namely empty dwelling management orders? They allow local authorities to commandeer empty properties after a period. It should be noted, however, that the period is seven years, which is far too long, but we should be able to commandeer developments that were begun but not completed for public use and public good. I can think of one house in the Kendal Parks area of Kendal that has been uncompleted for 20 years. It is an eyesore, and damaging to the local community. It could be a decent home for someone. I can also think of a whole development in Burton-in-Kendal that has been poorly managed and has fallen out of the hands of one set of owners into those of another. The ability of local authorities to commandeer properties for the public good would be of huge benefit, not just to my community but to every Committee member’s community.
Lee Rowley
I am grateful to the hon. Member for Westmorland and Lonsdale for his comments, and to my hon. Friend the Member for Buckingham for tabling the new clauses.
I accept that this is another area of policy that is difficult and challenging and that a balance needs to be struck. I completely understand the concerns that have been raised. In order not to detain the Committee, and without offering any guarantees, I would be keen to continue the conversation outside the realms of the Committee to consider and reflect on the points made by those who have spoken. I am happy to discuss that in advance of further stages of the Bill, should my hon. Friend be content to do that.
Greg Smith
I welcome that commitment. I stand ready to carry on the conversation; therefore, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Greg Smith
I beg to move, That the clause be read a Second time.
This new clause is in a similar vein to many of the others that I have tabled, although it looks at the controls for planning enforcement and essentially abolishes the time limits so that where rogue development or development carried out without planning permission takes place, especially in protected landscapes, it can no longer be timed out by a lack of enforcement action. I accept that planning enforcement is not a statutory service on local authorities, which are often overstretched. Removing the time limit would ensure that those who have done wrong by a community and developed that which they should not have, or have developed in a manner that is not commensurate with their planning permission, can still face the appropriate planning enforcement beyond the current statutory time limits.
Lee Rowley
I share my hon. Friend’s desire to ensure that important landscapes are protected from breaches of planning control. We would need to consider the time limit by which that occurs, and whether an open-ended time limit is the most appropriate way. While I understand the underlying principle and point that my hon. Friend makes, there is a challenge in leaving something so completely open ended, as it could come back in many years’ or decades’ time, however unlikely that may be.
As my hon. Friend will know from sitting on this Committee longer than me, the Bill already increases the time limits for some breaches of planning control from four years to 10 years. We hope that is a positive direction of travel that demonstrates the Government’s willingness to look at this area and make changes where appropriate, but in this instance, I ask my hon. Friend to withdraw the clause. I am happy discuss it further—although it is very difficult to see how an open-ended timeframe can be obtained. I hope that he can see in other parts of the Bill the Government’s intent to look at that where we can and where it is proportionate to do so.
Greg Smith
I very much welcome the Minister’s words. I accept that, with a totally open-ended time limit, the new clause is imperfect. I am happy to negotiate and find a happy medium that sets a more realistic and reasonable timeframe, so that planning enforcement does not just fall off the metaphorical cliff edge and communities are not left wanting. Therefore, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 23
Report on measures to incentivise brownfield development over greenfield development
“(1) The Secretary of State must, within 60 days of the day on which this Act is passed, establish a review of the merits of measures to financially incentivise brownfield development over greenfield development.
(2) The review must, in particular, consider the impact of—
(a) introducing a greenfield plot tax to provide dedicated funding streams for brownfield development,
(b) setting a uniform zero-rating of VAT for development on brownfield sites,
(c) applying standard VAT to development on greenfield sites,
(d) applying variable measures to ensure that increases in land values attributable to the granting of planning permission for development are used in support of communities local to those developments, and
(e) allowing a high degree of variation in the Infrastructure Levy to enable communities to value the loss of greenfield land depending on local circumstances.
(3) The Secretary of State must lay a report on the findings of this review before Parliament no later than one year after this Act comes into force.” —(Greg Smith.)
This new clause would require the Secretary of State to review the merits of measures that would financially incentivise brownfield development over greenfield development and to report the findings to Parliament.
Brought up, and read the First time.
Ben Bradley (Mansfield) (Con)
It is a pleasure to serve under your chairmanship, Sir Mark. I want to give the Committee a change of scenery for five minutes, before I let somebody else speak. I will not develop these points; I will just add a thought that the Minister might wish to take away and consider in further conversations.
The Bill will, I hope, create numerous mechanisms and levers to incentivise local areas to bring forward brownfield sites, not least development corporations, combined authorities and the investment zones that have been the subject of much conversation. I should declare an interest, because I am the leader of a local authority and I am involved in a devolution conversation in the east midlands. At a regional level, we have been given funding to bring forward brownfield sites for development, and we are considering how we might use that funding locally to achieve this goal. Perhaps the Minister might consider whether some of the levers, funds and opportunities that my hon. Friend the Member for Buckingham has proposed would sit better at a devolved, local level within one of the mechanisms created by the Bill, rather than in the Bill itself.
Dehenna Davison
It is a pleasure to speak to this amendment from my hon. Friend the Member for Buckingham. We have done some great work on it together, and I hope we can continue in that spirit. Members will know that the Government strongly encourage the use of brownfield land over greenfield, and in national policy there is an expectation that local planning policies and decisions will give substantial weight to the value of using suitable brownfield land to meet our communities’ housing needs and other identified needs.
My hon. Friend was right to highlight the cost differential that developers face. We are investing significant funding to support brownfield development, including in some of the schemes that he has mentioned. I will rattle through them one more time for the Committee’s benefit. There is the £550 million brownfield housing fund and the £180 million brownfield land release fund 2, which builds on the success of the £75 million first brownfield land release fund. In addition, later this year we aim to launch the £1.5 billion brownfield, infrastructure and land fund, which will unlock sites around the country.
We are particularly sympathetic to this cause, which is why we are setting out a range of new measures and powers in the Bill to support brownfield development. My hon. Friend the Member for Mansfield is right to talk about local empowerment—something that I know he is a real champion of in his other role, at local government level. We are keen that the Bill in its entirety will empower local leaders to regenerate towns and cities through a range of provisions, including new locally led and locally accountable development corporations, which my hon. Friend mentioned, and support for land assembly and regeneration through enhanced compulsory purchase powers.
My hon. Friend the Member for Buckingham mentioned the infrastructure levy introduced in the Bill. It provides a framework in which, where increases in land value are higher—as is often the case with greenfield development—higher rates can be set. This mechanism would allow differential charging rates to be set by local planning authorities for different types of development, so that more could be levied on greenfield land as compared with brownfield land to incentivise development on that brownfield land.
We will also continue to work on wider planning proposals that will give the public an opportunity to shape our future national planning policy, and in relation to which the Government have committed to consult the public.
On that basis—because we are already taking such strong steps to encourage brownfield development and have a commitment to review national policy—we do not feel that the new clause is necessary, so I kindly ask my hon. Friend to withdraw it today.
Greg Smith
I very much welcome the Minister’s commitments. She is absolutely right in outlining the various schemes to support brownfield development. I guess the thought I will leave her with is the reflection that, rightly, there is a lot of carrot in those schemes; where I do not think we have quite enough at the moment is the stick to dissuade people from greenfield development. We need to ensure a proper balance of incentivising, through grant funding or whatever it might be, development on the brownfield sites, and also something to actively dissuade developers from looking at the greenfield sites. If we can carry that conversation on through to Report, I am content to withdraw new clause 23 at this time. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 24
Report on measures to improve the efficiency of the housing market
“(1) The Secretary of State must, within 60 days of the day on which this Act is passed, establish a review of the merits of measures to improve the efficiency of the housing market.
(2) The review must, in particular, consider the impact of—
(a) a stamp duty exemption to encourage elderly homeowners to downsize,
(b) an additional stamp duty surcharge on purchases by person not resident in the UK,
(c) a stamp duty surcharge on second home purchases,
(d) a reduction in the highest rates of stamp duty, and
(e) measures to promote an active market in long-term fixed rate mortgages to encourage lending to first time buyers.
(3) The Secretary of State must lay a report on the findings of this review before Parliament no later than one year after this Act comes into force.”—(Greg Smith.)
This new clause would require the Secretary of State to review the merits of measures to improve the efficiency of the housing market and to report the findings to Parliament.
Brought up, and read the First time.
Lee Rowley
I am grateful to my hon. Friend for tabling the new clause. I absolutely accept his points about discussing this matter sensitively and accepting the real challenges in parts of the housing market. I understand and acknowledge that challenge, which the Department grapples with daily and as much as the state can. It is vital to have an effective housing market and for people to have good-quality properties and roofs over their heads, irrespective of tenure. Most fundamentally, we Conservatives know that expanding home ownership is vital. Although it is starting to increase again as a proportion, a gap remains between the number of people who want to buy a house and the number of people who can.
We all have our own individual stories. In North East Derbyshire, the way that properties are distributed—that sounds like a very technical word for real people’s lives—does not necessarily align in all instances with people’s needs. In one town in my constituency, a significant amount of which was built in the ’60s, ’70s and ’80s, lots of people who purchased properties to bring up their families are struggling to find houses—bungalows in particular—to downsize to, now that their families have flown the nest. Many Members will have similar stories.
At the same time, my hon. Friend has considered the matter closely and will acknowledge that there is a question about whether we need to legislate in this area. I humbly suggest that we do not, but I recognise the intent behind the amendment. Over the course of my time in post, I will continue to do what I can to answer some of those questions, as will the Department, so I ask him to consider withdrawing the amendment.
Greg Smith
I appreciate my hon. Friend’s comments. To clarify, yes, we would be putting a clause into legislation, but we would not be legislating for the outcome. We would be legislating for a duty on his Department to publish a report—to properly kick the tyres, if I may put it like that—on the housing market failures that are leading to the demand for so many new housing units to be built.
Of course, I fully accept that tackling stamp duty is not within the competence of the Department for Levelling Up, Housing and Communities. Altering the rates to get the market moving more quickly would have to be pitched to His Majesty’s Treasury. With that in mind, I am content to withdraw the new clause, but I urge my hon. Friends the Ministers to consider this point as the Bill and the Department’s work on housing and planning move forward. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 25
Report on promoting development in already developed areas
“(1) The Secretary of State must prepare a report on possible measures to promote development in areas that are already developed.
(2) The report must consider measures to promote—
(a) the purchasing by housing associations of properties that—
(i) have been unoccupied for an extended period (with reference to the vacancy condition in section 152), or
(ii) are currently unfit for human habitation (with reference to requirements of the Homes (Fitness for Human Habitation) Act 2018;
(b) novel means of providing increased affordable housing that is sustainable and accords with surrounding areas.
(3) The report must be laid before Parliament before the end of the period of six months beginning on the day on which this Act is passed.”—(Greg Smith.)
Brought up, and read the First time.
Greg Smith
New clauses 25 and 26 are quite important to free up for good use properties that may have fallen into disrepair or been unoccupied for a long time. I am sure that we could all name properties in our constituencies that we have canvassed for five elections running but nobody is ever behind the door. We put leaflets through the door, but the post reaches almost as high as the letterbox itself. Those are homes that I hope all Members, of whatever political persuasion, would acknowledge really should not be sat empty, but should have a family or whoever living in them. Of course, the wider public good is also served by not allowing properties to fall into disrepair and become eyesores or perhaps hotspots for disorderly behaviour, as people seek to take them over illegally.
New clause 25 does not contain specific legislative measures to deliver the outcomes we are seeking, but it creates a duty on DLUHC to report on how better to ensure that empty properties that have fallen into disrepair and are perhaps causing other public health hazards can be more easily brought back into the housing supply chain for social rent, for part rent, part buy, for discount market housing, or for whatever it might be.
New clause 26 is about ensuring that the compulsory purchase powers available to local authorities are suitable, if I may put it in those terms, to enable them not just to get those properties back into productive use and put a roof over human beings’ heads, but to ensure that local authorities that often bang their heads against a brick wall when it comes to certain compulsory purchase powers are freed up to make the right decisions for the communities they represent.
Dehenna Davison
I completely agree with the sentiment behind these new clauses. We can probably all think of examples in our constituencies of the sorts of vacant properties that my hon. Friend mentioned. Indeed, I was out in Eldon Lane with neighbourhood wardens, local police and local councillors—I think last week or the week before—looking at streets where most of the houses sit empty and can become hotbeds for antisocial behaviour and petty crime, so this is certainly something we want to tackle.
I agree with the benefits of promoting development in areas that are already developed, but I do not think that new clause 25 is necessary. We have already debated the Government’s national planning policy framework, which promotes the development of previously developed land and makes it clear that local plans should also include sufficient provision for affordable housing. I share the interest in novel ways of increasing the supply of affordable housing. The Government’s affordable housing guarantee scheme is a good example of this kind of innovation. The same is true of the proposal in the Bill to secure affordable housing contributions in future through a new streamlined mandatory and locally determined infrastructure levy.
My hon. Friend also made the case for housing associations to purchase homes that are empty or not currently fit for human habitation. I agree that this can play a valuable role in expanding the availability of affordable housing and improving the overall quality of our housing stock. Local authorities and other social housing providers can access funding to acquire empty homes on the market and bring them back into use through programmes such as the affordable homes programme and the rough sleeping accommodation programme.
Briefly, on new clause 26, I strongly share my hon. Friend’s desire to ensure that the compulsory purchase system is fit for purpose and can play its part in delivering our levelling-up agenda. My officials have worked incredibly closely with key stakeholders to review the current system and develop the package of measures in the Bill. We believe that these measures, supplemented by improved and updated guidance, will together ensure that local authorities have the powers they need to bring forward the regeneration of their high streets and town centres, and to deliver much needed housing and infrastructure. We also believe they will deliver a faster and more efficient compulsory purchase system and make compensation simpler and clearer. I have also asked the Law Commission to undertake a review and consolidation of the existing legislation on compulsory purchase and land compensation, which will begin shortly.
On that basis, I hope that my hon. Friend will agree that a statutory review is not necessary and ask him to withdraw the new clause.
Greg Smith
On the back of those commitments, I am happy to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 27
Deliberate damage to trees linked to development
“(1) Section 210 of the Town and Country Planning Act 1990 (penalties for non-compliance with tree preservation order) is amended as follows.
(2) After subsection (4) insert—
‘(4AA) Subsection (4AB) applies if—
(a) the court is considering for the purposes of sentencing the seriousness of an offence under this section, and
(b) the offence was committed for purposes connected to planning or development.
(4AB) The court—
(a) must treat the fact mentioned in subsection (1)(b) as an aggravating factor (that is to say, a factor that increases the seriousness of the offence), and
(b) must state in open court that the offence is so aggravated.’”—(Greg Smith.)
This new clause would make damage to trees or woodland in contravention of a tree preservation order an aggravated offence if it was committed for purposes connected to development or planning.
Brought up, and read the First time.
Greg Smith
I beg to move, That the clause be read a Second time.
This new clause goes to the heart of an issue very close to my constituents, who have seen a great number of trees damaged—largely by the Government’s HS2 project, I have to say. It happens far too frequently in rural environments, but it is equally applicable to urban ones, where trees that are unacceptably damaged, often with preservation orders on them, are often the only green for some distance around. Very straightforwardly, this new clause in my name and the name of my right hon. Friend the Member for Chipping Barnet seeks to put in place measures that will clamp down harder on those who deliberately damage trees during development.
Lee Rowley
I am grateful to my hon. Friend for moving this new clause, and I am sympathetic to the issue that he and other Members have raised. The protection of trees and the environment is hugely important, and it is frustrating when others do not support that cause. The information I have is that the law already provides a substantial amount of leeway to seek appropriate financial redress from people who have been accused of damaging trees, should the contravention have been through the local council via a tree preservation order.
With that in mind—I may be misinterpreting my hon. Friend—I am keen to understand from my hon. Friend or his colleagues why they believe there is still a need to change the law. There is obviously a bit of a difference in views at the moment, so we should try to bottom that out. If we can find an issue to debate, I would be very happy to do so, but for the purpose of today, I ask my hon. Friend to withdraw the amendment.
Tim Farron
The two new clauses are about trusting local communities. We are not saying that every meeting must be held virtually, but that local authorities—in this case, planning authorities—should have the power to do so, and for good reason. My preference is for in-person meetings, but for the reasons that have been set out, especially by the hon. Member for Buckingham, local authorities should have that power.
Every part of my patch is parish. There are 67 parishes, and some of them are bigger than most Members’ constituencies and have not very many people living in them. To get from one end of the Lakes parish to the other, people have to pass three or four lakes. We should consider the age profile of some of the members of the parish councils and the distances involved. I said earlier that it rarely rains in the lakes, but occasionally it might. It certainly gets dark at certain times of the year. On a wet November night, holding a meeting on screen rather than physically is probably safer and better for everybody. Let us trust communities to make those choices on the go, and not impose.
The pandemic has been a traumatic and formative experience for us as a culture, as a society and as representatives of the people. We have learned many lessons, and some of them we should carry on with. I was disheartened and disappointed that some members of the Government seemed to be almost determined, as a point of principle, to close down any virtual operation of democracy during the pandemic—never mind at the end of it. It is encouraging to hear a cross-party outbreak of common sense today. It would be great if the Government listened.
Dehenna Davison
As a millennial Minister who is used to swiping and not to turning pages, Members might expect me to say that I prefer virtual meetings, but actually I do not. In-person meetings and the social element are important, yet we saw the value of virtual meetings during the pandemic, at the time when we needed them most. Hon. Members will remember the powers granted through the Coronavirus Act 2020, which allowed local authorities flexibility on remote and hybrid meetings, in certain circumstances. They will also know that those regulations expired back in May 2021. Since that date, all council meetings have had to be in person. The new clauses lean into the terms of those previous provisions and seek to replicate them on a permanent basis, but only for planning committees. I heard the points made by my hon. Friend the Member for Mansfield.
Looking beyond the circumstances of the pandemic, the Government considered that there may be benefits to permanent provisions for remote meetings, and that local councils may be keen to have the flexibility to use that provision as they see fit. I have been lobbied by a lot of my local parish councillors on the benefits that remote meetings can bring.
As my hon. Friend the Member for Mansfield highlighted, the Government conducted call for evidence last year to test the views of those who had participated in and experienced councils’ remote meetings to inform our decision on this matter. I thank the shadow Minister, the hon. Member for Greenwich and Woolwich, and the hon. Member for Westmorland and Lonsdale for their points on trust in local governance and local planning, which we all agree is paramount. Increasing participation is only ever a good thing.
The Department has considered the responses to the call for evidence and we have been weighing the benefits, which hon. Members have highlighted, against views that physical attendance remains important to deliver good governance and democratic accountability. I take on board the point made by my hon. Friend the Member for Mansfield about the investment in the technology that a lot of local authorities had made, which must also be taken into account.
I genuinely thank my hon. Friends for tabling the new clause, but we need to first consider the call for evidence. We will issue our response, which will set out the Government’s intentions. I ask for a tiny bit more patience and for the new clause to be withdrawn.
Greg Smith
The self-styled millennial Minister makes the commitment. Asking for slightly more time seems reasonable to me. However, if we are to be true to localism, I would double-underline and highlight the need to ensure that local people are able to participate in proceedings. Just as we can still have a witness virtually at a Select Committee in this place, councils should have the discretion to use virtual proceedings, to maximise participation locally. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 29
Local authorities to be able to raise planning fees to cover costs including planners
“(1) Section 303 of the Town and Country Planning Act 1990 (fees for planning applications etc.) is amended as follows.
(2) After subsection (5) insert—
‘(5A) Regulations made by the Secretary of State under this section may provide for local planning authorities to vary fees or charges under this section payable to the local planning authority to cover the reasonable costs of their exercise of planning functions.
(5B) In subsection (5A), “reasonable costs” includes the employment of qualified planners.’”—(Greg Smith.)
This new clause would enable the Government to allow local planning authorities to vary planning fees and charges to cover their costs relating to planning, which could include the employment of qualified planners.
Brought up, and read the First time.
Lee Rowley
I thank my hon. Friend the Member for Buckingham for tabling the new clause.
I absolutely accept the validity of this discussion; it is an important one, and I am relatively sympathetic to the point that is being made. It is appropriate that we think through the balance between localism and centralism in this area, and my own personal instincts are that localism should take priority and precedence. So, if he is willing to withdraw this new clause, I am very happy to talk about this matter in more detail.
As I know my hon. Friend will know, we have already committed to increasing planning fees, as part of an earlier discussion. However, I am happy to talk about what he perceives as the need in this area over and above that, particularly given his own local circumstances.
Greg Smith
I very much welcome the Minister’s comments; I fully accept that planning fees are allowed to go up and I look forward to having a discussion with him about how some geographical areas, particularly those areas that border London and that compete with London weighting, need to have greater flexibility.
In the meantime, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 30
Housing powers of the Mayor of London
“(1) Article 7 of the Town and Country Planning (Mayor of London) Order 2008 (direction that the Mayor is to be the local planning authority) is hereby revoked.
(2) Section 333D of the Great London Authority Act 1999 (duties of the Authority and local authorities) is amended as follows.
(3) At the end of subsection (2) (general conformity with the London housing strategy), insert—
‘, but any housebuilding target in the London housing strategy is advisory not mandatory and should not be taken into account in determining planning applications.’”— (Greg Smith.)
This new clause would remove the Mayor of London’s power to direct a London borough that the Mayor will be the local planning authority for a development, and clarify that any housebuilding target in the Mayor’s housing strategy is advisory only.
Brought up, and read the First time.
Greg Smith
I beg to move, That the clause be read a Second time.
We come to the end of this marathon run of new clauses. New clause 30 is one that could be a little bit prickly to navigate.
Without wanting to get into a debate about personalities who occupy the office of Mayor of London, the new clause seeks to test where the principle of localism actually sits, because across the London boroughs there are locally and democratically elected councils or directly elected mayors, and across the whole of the capital there is the Mayor of London. The councils and directly elected mayors, and the Mayor of London, have planning powers, which is an anomaly that has been thrown up and that causes political tension, when there is a Labour Mayor and a Conservative borough, or indeed when there is a Conservative Mayor and a Labour or Lib Dem borough. That tension is real; it exists.
My instinct is always that the most local area should be the one that makes the decision rather than the regional area or a pan-regional area. I accept that that is an ideological position of mine; it is how I believe decisions are best made. However, there is clearly a tension. I have talked to colleagues, such as my right hon. Friend the Member for Chipping Barnet—this new clause has also been tabled in her name—and my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who has been very engaged in this debate as well, so I know that that tension exists.
It might not be my preference, but it might be the case that the most appropriate decision-making level in London is the regional level, which is the Mayor of London. I do not believe that it is, but that would be a legitimate answer. Alternatively, is it the London boroughs that have primacy when it comes to planning? If we are true to the principle of subsidiarity, it would be the London boroughs, but at the moment that tension exists. However, if we were to make the Mayor’s powers in relation to the boroughs advisory as opposed to compulsory, we would take that tension away.
I offer the new clause to the Committee as one that identifies a very tightly defined geographical problem that affects many Members’ constituencies and causes a lot of community upset, where a London borough’s planning authority is essentially over-ruled by a regional structure.
Lee Rowley
I thank my hon. Friend the Member for Buckingham for tabling the new clause. I will resist the opportunity to defend the current incumbent Mayor of London, as I am sure he would expect, although I know other members of Committee would disagree with me.
A number of us in this room share experience of local government in London; at least three of us here—I apologise if I have missed anyone—served simultaneously on different councils in London. I served on Westminster council for eight years, until 2014. Even when there was alignment between regional and local tiers in terms of party, I recall a number of disagreements about individual applications and the general principle of where the relevant powers should sit. We will probably not resolve that philosophical debate today, other than to say that I acknowledge the concerns of my right hon. and hon. Friends who have put their name to the new clause.
It is particularly important to acknowledge the difference between inner and outer London, and the difficulties of making sure that policies can apply to both areas equally. I think we should tread extremely carefully when considering whether to amend the strategic powers of the Mayor, even if I happen to disagree with much of what the current incumbent does. Although my hon. Friend for Buckingham has made known his strength of feeling about the matter, and that of other colleagues, I ask him to withdraw the new clause.
Greg Smith
I welcome the Minister’s comments, and as I acknowledged, it is a difficult issue to navigate. It almost reopens some of the devolution questions. It is an anomaly that many London colleagues, certainly on the Conservative Benches, feel and I welcome the Minister’s commitment to work with them and me. Like him, I was a London borough councillor just a little way up the river from him for 12 years, some moons ago, and felt the same pressures. If he is willing to work with London colleagues to find a satisfactory way through this, I am content to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 34
Local government capital investments: economic appraisal
“(1) This section applies to local government capital investments of a value of £2 million or more.
(2) Before making an investment to which this section applies, a local authority must—
(a) commission an economic appraisal of the investment, and
(b) publish the findings of that appraisal.”—(Rachael Maskell.)
This new clause would require local authorities to commission, and publish the findings of any capital investment of the value of £2 million or more.
Brought up, and read the First time.
Rachael Maskell
I beg to move, That the clause be read a Second time.
It is a pleasure to move the new clause and to give the hon. Member for Buckingham some respite. The new clause relates to fiscal responsibility in local government. Without proper viability being sought, local authorities can pay millions of pounds on projects and never reap the return. That is why the new clause relates to capital investments and economic appraisals, which should be undertaken and understood, but without a Green Book-style appraisal, local authorities can end up paying and developers and landowners gaining, with ultimately no reward and benefit to the local community. The new clause is designed to ensure that the finances on any project are transparent and for the benefit of local people. It would ensure that there is gain for all and not ultimate loss, not least given that we are talking about the use of public resources. That is why the new clause is important.
The case study to which I want to refer particularly is that of the York Central site. The cost of bringing that site forward is now believed to be £200 million of public funding. As that project moves forward, more and more is being demanded from public sources to fund it, and yet the local authority may never see a return on that investment. City of York’s infrastructure investment was planned to be around £35 million, but it has now been given an estimated debt cost of £57 million based on April interest rates, which will clearly be significantly higher now.
The Department for Levelling Up, Housing and Communities has also put in £77 million and it is believed that more than £50 million will have to come through the Mayor’s budget once it is approved and in place—we are expecting that to be in 2024. In a briefing, councillors were told that the council would need to put in £85 million and debt costs to fill the gap, but we could now be talking about nearer £100 million rather than the £35 million once rejected. As a result, it is necessary to weigh up the viability of the site not for the developers, as set out, but for the local authority. It is that check that is not required for such a project today, but it is really important, not least because local authorities simply do not have the necessary margins and, as a result, have to cut back on vital services to fund such capital projects.
My amendment therefore calls for prudence. On sites where any capital investment over the value of £2 million is made, there must be an economic appraisal commissioned and then published assessing the financial viability of the site to the authority. York Central has been developed for housing, so it will not reap the opportunities that a larger business owner could bring in nor those to do with council tax, as most of the properties being developed will be for investment, not for local residents to live in. They will either be empty units, leading to a cost to our city, or will be turned into Airbnbs, a matter that I will turn to later. Of course, Airbnb falls under the thresholds of flipping the property, not paying council tax and not paying business rates either, so the local authority loses millions of pounds as Airbnbs dodge the system.
At a time of significant austerity in local government, it is crucial that more scrutiny is given to the costs it has to expend on sites. My amendment simply calls for proper governance over finances and, at a time when the whole nation is looking at how Governments at all levels are more prudent with the spending of their money, it is right to bring forward such a measure to ensure that public money is spent in a way that will see its return and will be for the benefit of the people, not the developers and landowners who ultimately gain from such development.
Dehenna Davison
I am grateful to the hon. Member for York Central, who always talks incredibly passionately about her constituency. I thank her for bringing her experience of the capital project she mentioned to the Committee. As a Conservative, my ideology tells me that ultimately we always need to get best value for taxpayers’ money.
The Government recognise the importance of local capital investment for economic growth, improved public services and meeting our priorities, such as on housing delivery. That is why we need a robust system that supports the benefits of local decision making and allows sensible investment while safeguarding taxpayer’s money and protecting the local government finance system. Unfortunately, in recent years a small minority of local authorities have taken excessive risks with taxpayers’ money; they have become too indebted or have made investments that have ultimately proved too risky. That is why we need to ensure that the system is fit for purpose.
The changes made through clause 71 provide a flexible range of interventions for the Government to investigate where capital practices may have placed financial sustainability at risk and to take steps to remediate issues if necessary. We think that that is sufficient to address risk.
We have recently taken a number of steps to improve the transparency of local authority capital investment and borrowing. Last year we completed our data survey, which is designed to extract new data from local government and fill our identified information gaps. As of February 2022, we amended our regular statistical returns to obtain more detailed data on local authority investment activity. That will provide the Government with the clarity they need on the performance of investment assets as well as the location and risk management of investment properties.
Rachael Maskell
I am grateful for the Minister’s contribution. However, will she acknowledge that even if the viability of a site stands up, some of the investors in it may not? What ultimately happens is that local authorities become the backstop for financing and have to fill the gaps in order for those sites to be brought forward. As a result, the benefit goes to the developer and the risk sits with local authorities.
Dehenna Davison
I have certainly heard what the hon. Member has said, and we all have examples from our own constituencies and authorities. The current legislation and statutory codes allow local government to appraise risks as they stand. Alongside that, the monitoring and provisions that we are seeking through clause 71 will provide central Government with assurance. We think that the new clause is unnecessary, and I ask the hon. Member to withdraw it.
Rachael Maskell
I am grateful to the Minister for giving way again. Reflecting on the example that I gave, will she say how her Department would scrutinise the funding of sites such as the one in York Central to assess the viability of the local authority’s having to make increased contributions? Has the Department done that?
Dehenna Davison
I will be happy to follow up with the hon. Member on that point in writing.
Rachael Maskell
I thank the Minister for her response, but I am not satisfied that what she says will be sufficient to ensure that there are safeguards on local public resourcing that is brought forward on a site, particularly one as important as the York Central site, where eye-watering sums of money are being spent. I will therefore read with care what she writes to me to see whether there are sufficient safeguards. If I am not satisfied, I will want to return to this issue at a further stage of the Bill, but for now I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 38
New use classes for second homes and holiday lets
“(1) Part 1 of Schedule 1 of the Town and Country Planning (Use Classes) Order 1987 (S.I. 1987/764) is amended as follows.
(2) In paragraph 3 (dwellinghouses)—
(a) for ‘whether or not as a sole or’ substitute ‘as a’, and
(b) after ‘residence’ insert ‘other than a use within Class 3B)’.
(3) After paragraph 3 insert—
‘3A Class C3A Second homes
Use, following a change of ownership, as a dwellinghouse as a secondary or supplementary residence by—
(a) a single person or by people to be regarded as forming a single household;
(b) not more than six residents living together as a single household where care is provided for residents; or
(c) not more than six residents living together as a single household where no care is provided to residents (other than a use within class C4).
Interpretation of Class C3A
For the purposes of Class C3A “single household” is to be construed in accordance with section 258 of the Housing Act 2004.
Class C3B Holiday rentals
Use, following a change of ownership, as a dwellinghouse as a holiday rental property.’”—(Tim Farron.)
This new clause would create new class uses for second homes and short-term holiday lets.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Lee Rowley
I thank Opposition Members for tabling the new clauses, and I understand why they have done so. In all processes, there will be challenges; there will be difficulties at the margins in how things work and where people try to push boundaries beyond where they are intended to be. I do not disagree that there will be examples around the country where PDRs have not been used in the right way, in the same way that there are problems with the existing planning system when people go through planning applications, or with enforcement when people have not done that.
There are problems in all systems, and I accept that the Government’s job is to try to minimise those problems while recognising that it is always a work in progress. I particularly accept the challenge that the hon. Member for York Central made about holiday lets and the like. I am happy to discuss that with her separately, if that would be helpful.
There is obviously a question about where we strike the balance between enabling processes to continue to happen in a way that is sped up, gives certainty and clarity, and brings out the “right answer” most of the time, and where additional consideration or time, or additional processes, are required. The latter all comes with cost, in terms of time and clarity, for those making applications. That balance is very difficult to strike, but we are trying to strike it by ensuring that the PDRs in the system, but also a significant proportion of applications that potentially require further consideration, go through the normal process.
The challenge that I have with the new clauses—I absolutely do not mean to caricature them—is that, in the way that they are written, they seek a review of every single element of PDRs. I know that the Opposition Front Benchers know that a significant amount of permitted development rights are relatively uncontroversial. The Opposition are effectively saying that, in order to look at problems that are understood and that need consideration and review—I am happy to talk to them about what we should do with those, if we are able to—we must also look at every single other PDR, including things such as how porches, chimneys, flues and microwave antennae are changed.
I am not sure that is the Opposition’s intention, so I gently ask them to consider withdrawing the new clauses on the basis that, while I am happy to continue the conversation, I think that their approach may be disproportionate to their intention.
Mrs Lewell-Buck
The Minister admitted that PDRs are not being used in the correct way. He feels that our new clauses seek a review of every element of PDR, but if he and the Government do not want to review every element, what elements would they review? He has already admitted that the system is not working properly, so will he offer an alternative?
Lee Rowley
For clarity, I said that no system is perfect. That is not necessarily a recognition that anything is systemically wrong, although I am happy to debate individual instances if Opposition Members believe that to be the case. We will never create a perfect system. I am sure that we all intend to make the processes better. There will be differences of view, both in the Committee and outside it, about where it is appropriate to draw lines in terms of the use and non-use of PDRs. That will be a discussion long after we have left this place. I am keen to hear from colleagues on both sides of the House about where they think PDRs are not working in the ways that we hope, recognising that no system is perfect but hoping that they are used correctly in most instances. I do not think, however, that it is proportionate to do a wholesale review of PDRs at this stage.
Mrs Lewell-Buck
I thank the Minister for being generous in giving way again. I do not think that he quite understood the point that I was making. He said that PDRs are not being used in the right way, so where do he and the Government feel that they need to be looked at? I am not getting any clarity.
Lee Rowley
I am happy to clarify. I did not say that PDRs were not being used in the right way; I said that no system—
Lee Rowley
I know that Hansard will demonstrate the context. I was saying that no system is perfect. I was not making any comment on individual PDRs, but I have said to colleagues on both sides of the Committee that I am happy to discuss individual areas where they have concerns, outside of a proposal for every single one of the 155-odd PDRs to be reviewed in detail within a timeframe that is not particularly proportionate. If there is a problem, let us talk about it in individual areas, but this approach is disproportionate. I hope that the Opposition will consider withdrawing the motion and having a separate discussion about specific instances that have been raised, and others that they are concerned about.
Rachael Maskell
I listened carefully to the debate, and I am grateful for all the contributions to it. The Minister will know that we are not putting forward a plan to tear up the whole PDR framework; we are simply calling for a review, as we believe is appropriate. After a scoping review, we would determine which points to drill down on, to ensure that we are looking at the parts of the system that are simply not working. That is the intention behind the new clause. Although it has a broader scope, it homes in on some of the challenges in the system. I therefore do not think that the proposal to put a scoping exercise in the legislation is unreasonable. I welcome the Minister’s offer of dialogue on these matters, which clearly are significantly impacting our communities. Dialogue will be really important. I will not press my new clause to a vote, but I will certainly take up that offer.