Planning and Infrastructure Bill (Eleventh sitting)
Tuesday 20th May 2025
(2 days, 16 hours ago)
Public Bill CommitteesPlanning and Infrastructure Bill 2024-26 View all Planning and Infrastructure Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 20 May 2025 - (20 May 2025)
The Chair
I remind Members to send their speaking notes by email to hansardnotes@parliament.uk and to switch electronic devices to silent, please. Tea and coffee are not allowed during sittings. Interventions are taken at the discretion of the Member who has the Floor and they should be short and pithy. Members may bob to make another speech if they want to speak at greater length.
Clause 79
Areas for development and remit
Question proposed, That the clause stand part of the Bill.
The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to continue our proceedings with you in the Chair, Ms Jardine. We have now reached part 4 of the Bill, which concerns development corporations. Among other reforms, the Government are clear that boosting housing supply requires renewed focus on building large-scale new communities across England. Development corporations are statutory bodies established for the purpose of urban development and regeneration. They are important vehicles for delivering large-scale and complex regeneration and development projects. The four clauses in this part are designed to create a clearer, more flexible and more robust framework for their operation.
Clause 79 strengthens development corporations by providing greater clarity and flexibility for them in terms of the variety, extent and types of geographical area over which they can operate. That will ensure that development corporations can be used to respond to site-specific challenges, without having to retrofit the scope of the project to match the development corporation model used. The changes are necessary to ensure that development corporations are suitable for modern development needs. They will enable delivery of more large-scale developments, including consented sites that have been stuck in the system for far too long. They will be vital to the delivery of new large-scale projects, such as the new generation of new towns to which the Government are committed.
Existing legislation provides for five types of development corporation. It is probably worth mentioning them to aid our deliberations: the new town development corporation, the urban development corporation, the mayoral development corporation, the locally-led new town development corporation and the new locally-led urban development corporation, which was introduced in the Levelling-up and Regeneration Act 2023 and is subject to the commencement of its provisions.
Clause 79 clarifies that new town development corporations can deliver urban extensions—expansions of existing urban sites—and that new town development corporations and urban development corporations can develop brownfield and greenfield sites. The clause also expands the remit of mayoral development corporations so that they can be used to deliver new settlements, including on greenfield sites, as well as urban regeneration projects. That will ensure that mayors have the right powers to deliver the range of places their communities need.
Finally, the clause creates maximum application and flexibility for new town development corporations by allowing separate, non-contiguous parcels of land to be designated for development, aligning NTDCs with the other development corporation models. A single new town development corporation will also be able to oversee the laying out of more than one new town site.
By making the legislative framework clearer and more flexible, the reforms will facilitate the use of development corporations and therefore unlock more sites for development, further supporting the Government’s growth mission and the delivery of 1.5 million new homes in this Parliament. I commend the clause to the Committee.
Jim Dickson (Dartford) (Lab)
It is a pleasure to serve under your chairship, Ms Jardine. I welcome these measures to make development corporations fit for purpose. In my constituency, as members of the Committee may know, Ebbsfleet development corporation is building Ebbsfleet garden city. That experience shows how important it is that we align infrastructure delivery with housing growth to ensure that communities are supported from day one with everything that they need to live full and healthy lives. I welcome the clause. Development corporations outside Ebbsfleet, across the country, are an extremely important tool to get the right, well-balanced developments planned and built, so that they become communities. The clauses in part 4 give development corporations the flexibility to adapt, each one to a unique circumstance.
I have a couple of questions for the Minister to come back on if possible. First, given that development corporations are time-limited, what consideration has been given to the need for them to plan for their legacy, and to how their newly-built amenities will be catered for after closure, especially given the financial challenges faced by local government? Secondly, I know there is some desire in the sector for development corporations to have an explicit aim to provide upskilling and training for local residents, so that the economic benefits of their work can be shared across the local area. Have the Government looked at that, or might they consider looking at that in future?
Matthew Pennycook
I thank my hon. Friend for those questions. To be clear, the purpose of the clause is to ensure clarity around the remit and functions of development corporations. I understand his points about legacy and the wider contributions that development corporations can make, not least to construction and other skills areas. I am happy to take those up with him outside the Committee and to provide full responses on those points, but they are slightly outside the scope of this clause.
Question put and agreed to.
Clause 79 accordingly ordered to stand part of the Bill.
Clause 80
Duties to have regard to sustainable development and climate change
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 80 seeks to ensure that all types of development corporation must aim to contribute to sustainable development, climate change mitigation and adaption, and good design. The delivery of large-scale development and regeneration projects is vital to boost the housing supply, as I just mentioned. We must ensure, however, that large-scale new communities are delivered sustainably, with care for our climate, and that they have good design and quality at their heart.
Currently, only new town development corporations are required to aim to contribute to sustainable development and have regard to the desirability of good design. The current legislative framework does not require any development corporation model to contribute to climate change mitigation and adaption. Clause 80 will change that by amending current legislation to ensure that all development corporations must aim to contribute to sustainable development, climate change mitigation and adaptation, and good design.
Through the changes, we will create certainty for local communities that development corporations working in their areas will put sustainable development, climate change, and good design at the heart of delivery. I commend the simple, straightforward and, I hope, uncontroversial clause to the Committee.
Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)
I want to express my absolute support for this clause. I chair the all-party parliamentary water group and the APPG for sustainable flood and drought management, and prior to my time in this place, I worked in the world of design and engineering around the climate, so this is an important issue for me. I support sustainable urban drainage systems, especially after this April and May, as it looks like we will have had the driest spring in 100 years. We need to consider what we are doing on developments about drought, with grey water recycling, and we need to look at how we address future flood risk and build resilience in new towns—and existing ones as well. I am happy to see this measure in the Bill.
Gideon Amos (Taunton and Wellington) (LD)
It is a pleasure to serve on this Committee with you in the Chair, Ms Jardine. I, too, rise to support this clause, but I note that here we will mitigate “and” adapt to climate change, whereas in the spatial development strategies, we will mitigate “or” adapt to climate change. Without wishing to nit-pick, I feel that point needs to be made.
Matthew Pennycook
I will not rehearse our previous debate, in which I was clear that the Government’s intention, and what the Bill delivers, on spatial development strategies does account for mitigation and adaptation. I thank my hon. Friend the Member for Doncaster East and the Isle of Axholme and the hon. Member for Taunton and Wellington for their support of this clause.
This clause is important because, in some cases, development corporations taking on planning powers will already be subject to such duties, but we know that not every development corporation will take on planning powers. Some will have a major role to play in development through master planning, for example, and we want to cater for all eventualities. It is therefore essential that development corporations are subject to the duties in this clause, independent of whether they take planning powers, to cater for the full range of uses.
Question put and agreed to.
Clause 80 accordingly ordered to stand part of the Bill.
Clause 81
Powers in relation to infrastructure
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 81 primarily seeks to standardise the list of infrastructure that development corporations can deliver to be in line with that of mayoral development corporations. The co-ordination of infrastructure with large-scale property development is essential. However, the current legislation is inconsistent concerning the types of infrastructure that different development corporation models can provide, creating unnecessary uncertainty.
In particular, the existing legislation sets out a long list of infrastructure that mayoral development corporations can provide, but the same list is not currently applied to new town and urban development corporations. Clause 81 addresses that by standardising the list of infrastructure that development corporations can provide. It also goes further in adding heat networks to the list. This recognises heat as a distinct utility, alongside others such as water, gas and electricity. The addition of heat networks will also empower development corporations in their aims with respect to sustainable development and climate change, a point that we have just debated.
Existing legislation also places unnecessary restrictions on new town development corporations to deliver transport infrastructure. Clause 81 therefore removes the restriction on new town development corporations so that they can provide railways, light railways and tramways. No other type of development corporation is subject to this restriction, and provision of sustainable transport systems is vital to delivering large-scale developments. These measures will ensure that development corporations are on an equal footing to deliver the infrastructure to unlock more sites and co-ordinate more housing infrastructure and transport in the public interest. I commend the clause to the Committee.
Paul Holmes (Hamble Valley) (Con)
It is a pleasure to serve under your chairmanship, Ms Jardine. It is good to see the Minister and all members of the Committee here again; I have déjà vu, but we are still happy, aren’t we? [Interruption.] “Speak for yourself,” the Minister says.
We generally welcome the powers in relation to infrastructure in clause 81. I particularly welcome what the Minister said about removing restrictions to deliver infrastructure such as trams. That is a welcome move to deliver for those of us who have had constantly had frustrations at the lack of ability to get that infrastructure, but I would like to ask a few questions. Having said that, I deem that the clause does not account for the varying needs and characteristics of different regions. Can he reassure the Committee about the effective standardisation that he is promoting?
We do not necessarily have an argument with it, but we would like to examine the checks and balances in the consultation element of what the Minister is proposing to ensure that there is not a one-size-fits-all model. Even though I know that is what standardisation aims to do, I hope he would accept that in varying regions, with the wants and needs of different communities, that may not be appropriate at all times. Will he outline the checks and balances and how that could be varied according to the needs of local communities? Other than that, the Opposition welcome the clause and the Minister’s commitment to infrastructure.
Matthew Pennycook
I thank the shadow Minister for that question. I think it raises a slightly wider debate than the provisions of the clause and their purposive effect, but he raises a valuable point. Decisions to designate and grant powers to a development corporation must be made via regulations. They are subject to statutory consultation and are carefully made with consideration given to issues of oversight and governance. The particular model selected in a particular area will be chosen by the relevant parties on the basis that it is the model that best suits what they are trying to achieve.
I take the shadow Minister’s point about regional variation in the sense that all this clause does is standardise the list of infrastructure that can be provided by development corporations of all types, making it equal to the existing list that applies to mayoral development corporations. It is a simple simplification to ensure standardisation across the infrastructure that can be provided across all models.
Question put and agreed to.
Clause 81 accordingly ordered to stand part of the Bill.
Clause 82
Exercise of transport functions
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 82 seeks to introduce a new duty for relevant local transport authorities to co-operate with development corporations in the development and implementation of their plans, Too often developments are not co-ordinated with the transport infrastructure needed to service existing and new communities. That has detrimental impacts on quality of life, productivity and economic growth. Development corporations cannot currently take on local transport powers. As a result, there can be significant delays and barriers to delivering essential transport infrastructure, particularly where local transport authorities are unaligned with the plans of development corporations. Clause 82 will therefore place a duty of co-operation on local transport authorities to ensure that sites delivered by development corporations include the necessary transport infrastructure and are seamlessly integrated into the wider spatial plan for the area.
Local transport authorities must have regard to the plans of development corporations and co-operate in the development and implementation of their plans. Where that duty is not fulfilled—resulting, for example, in a failure to produce key outputs in an agreed timeframe or transport provisions being blocked and impacting growth potential—the Secretary of State will have a new power to direct relevant local transport authorities. Where the direction is not complied with, and as a last resort, the Secretary of State will have the new power to transfer specific transport functions from local transport authorities to the development corporation in question.
In addition to transport planning functions, the transfer may also include specific property rights and liabilities—for example, in instances where the development corporation needs to undertake upgrades to existing highways within its red line area. Any such transfer will be made by regulations and in relation to the development corporation’s red line area. The measures are intended to increase co-operation while ensuring that development corporations can ultimately deliver necessary transport infrastructure in a timely manner. I want to be very clear: our preferred approach is for the development corporation to work with the local transport authority in the first instance. The measures are therefore escalatory and will be used only as a last resort. On that basis, I commend the clause to the Committee.
Paul Holmes
I welcome the Minister’s commitment to transport infrastructure. We have had disagreements on other parts of the Bill that we have discussed in previous sittings, and no doubt we will in this afternoon’s sitting on the new clauses, but I think this part of the Bill genuinely tries to reform models to make sure that transport infrastructure, which is often controversial, is delivered. We welcome his commitment and foresight in that.
The clause aims to address, as we know, the co-ordination issues between development corporations and fragmented local transport authorities by placing the statutory duty of co-operation on the latter. Although the intention to improve alignment between housing and transport planning is welcome, I have a couple of questions about its practical impact and enforceability. None of the questions comes from a place of criticising or carping; they are to get genuine clarification for Opposition Members. By simply requiring transport authorities to “have regard to” and “co-operate” with development corporations, does the Minister not have a concern that the plans may not be sufficient to ensure meaningful collaboration? The terms are legally vague and may result in only minimal compliance. He has said that it is escalatory, but I wonder whether the clause needs to be slightly strengthened, in terms of “have regard to” and “co-operate”.
The clause stops short of granting development corporations any direct transport powers. That may be a fundamental disagreement between us, if the Minister does not believe they should have those powers, but we have a concern about the good intentions not being delivered on because of that collaboration and “having regard to”. Other than that, we welcome the clause, which will make a huge difference in delivering the fundamental change that we need in regional and local communities.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
It is a pleasure to serve under your chairship once again, Ms Jardine. I welcome the clause. In the area where I live in Warwickshire, public transport is woeful, which means that children and young people are left behind because they cannot access school and college facilities. It also means that people are reluctant to make a trip to the hospital because they simply cannot get there.
The clause means that young people can have aspirations for their future and live in communities that are connected. The powers will be very welcome in areas like mine where transport authorities seem reluctant to fulfil their functions. I really welcome it.
Jim Dickson
I also very much welcome the clause, which rectifies the fragmentation of housing and transport and therefore the inability to co-ordinate them. It will be hugely important to the new towns that the Government are planning in order to fulfil our housing targets.
I have one query for the Minister. The clause covers local transport authorities and their relationship with development corporations. Did he consider including a provision on the relationship between development corporations and national transport bodies such as National Highways? I can foresee situations in which co-operation between those bodies will be necessary to achieve the aims of the development corporation. In such a situation, would he use powers to ensure that National Highways co-operates with the development corporation, or at least broker the conversation to enable that to happen?
Matthew Pennycook
I welcome the support for the clause that hon. Members have indicated. The integration of transport infrastructure and its timely delivery are essential to delivering large-scale urban developments, and that is what the clause will facilitate.
The shadow Minister and others asked me whether the wording is sufficient to deliver the objectives of the clause. I will reflect on that, as I always do, but we are clear that introducing a duty on local transport authorities to have regard to and co-operate with development corporations—this is our preferred approach in the instance—will facilitate co-operation. Each development corporation will respond to particular and localised delivery challenges, with differences in transport requirements for each development, so it is not possible to specify the nature of the co-operation required in all cases.
In practical terms, officials in my Department will support the development corporation to have those conversations with local transport authorities, try to get a shared understanding and resolve transport challenges in particular circumstances. As a necessary minimum, we will expect local transport authorities to engage constructively with the development corporation’s plans for transport delivery and not unduly block the delivery of transport infrastructure that is necessary to unlock growth in the red line area.
Lewis Cocking (Broxbourne) (Con)
I support this clause on development corporations and transport. NHS and healthcare services in the new development corporations are also vital, so why did the Government not include a clause that would make local NHS trusts behave in the way that the Minister wants transport authorities to behave, so that development corporations cater for healthcare needs as well?
Matthew Pennycook
I thank the hon. Gentleman for his question. We just debated a clause about standardising the list of infrastructure that all development corporations can bring forward, but clause 82 addresses a specific gap in the legislation, which is that development corporations cannot have transport powers and are reliant on local transport authorities to bring them forward. I do not dismiss his point about wider infrastructure—we have debated it elsewhere, and I have taken on board the points that hon. Members have raised—but the clause addresses a specific issue and outlines a way of dealing with it. As I say, the preferred approach is co-operation in the first instance and working with the local transport authority in question.
The ability to transfer transport powers, which is available under the clause, is ultimately a backstop measure, and escalation via direction is an initial measure to address insufficient co-operation. The clause clearly sets out how the escalatory process will work, although it is worth saying that decisions to either direct or transfer powers will be taken on a case-by-case basis and applied only where there is good reason to believe that co-operation on the part of the local transport authority is not forthcoming and necessary transport infrastructure is not delivered.
We think that the backstop is necessary for cases where the local transport authority refuses to co-operate and is blocking necessary infrastructure that the development corporation requires for its urban regeneration and development needs. On that basis, I hope I have reassured hon. Members.
Paul Holmes
You may rule me out of order, Ms Jardine—I entirely expect that you might—but I want to follow up on the point made by my hon. Friend the Member for Broxbourne on health services. I know that it is not directly in the scope of this clause, but I want to explore the fact that, in many of our constituencies, integrated care boards, which, as the Minister will know, are locally responsible for the provision of health services, simply are not doing the work that is needed on demographic or infrastructure changes because of the silo-based approach to central and local government. Can the Minister assure the Committee that he will go away and work with the Department of Health and Social Care—maybe other clauses could be included—on how we can bring that together and allow those health facilities, as well as transport issues, to be delivered?
Matthew Pennycook
I thank the shadow Minister for that question. Hansard will correct me if I am wrong, but I feel that I have already given a commitment in that area, which I am more than happy to give again, on the following basis: to the extent that essential infrastructure and amenities, particularly those delivered via the existing developer contribution system, are not forthcoming in the manner required or in a timely manner, and where section 106 agreements are not being honoured, the Government are looking to take action to strengthen the existing system. There are two aspects to this. One is ensuring that local authorities are in a position to, on a fairly equal basis, negotiate with an applicant and get a good section 106 agreement. Then, there is the other part of the process, which is ensuring that the agreements entered into are honoured.
However, in some instances—I think I have recognised this in a previous debate—there is a co-ordination issue. I am interested in what more can be done and I am exploring that across Government Departments. ICBs are a good example—there have been examples in my constituency. In certain cases, it may be that the 106 agreement or other provision is not bringing forward the necessary—let us put it in very practical terms—GP centre. In other cases, as I hear from many hon. Members across the country, the 106 has facilitated the construction of the building, but there is a workforce challenge. That is a wider challenge for Government and the Department of Health and Social Care to address, which they are doing. I think that co-ordination can help us to address some of these problems.
To bring us back to the clause that we are debating, we are talking specifically about instances of a development corporation, either within the red line area or outside it where transport infrastructure is necessary to facilitate growth within it. We need a mechanism to ensure that co-operation occurs with the local transport authority. As I have said, judged on a case-by-case basis, in instances where the local transport authority in question is not co-operating, or where Government have good reason to believe that it will not co-operate, we need a measure to ensure that those powers are transferred or a direction is put in place. On that basis, I commend the clause to the Committee.
Question put and agreed to.
Clause 82 accordingly ordered to stand part of the Bill.
Clause 83
Electronic service etc
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clauses 83 to 92 relate to compulsory purchase and are designed as a group to improve the compulsory purchase order process and land compensation rules to enable more effective land assembly through public sector-led schemes. As hon. Members will no doubt be aware—I am sure that they have read every word—the Government’s 2024 manifesto made a commitment to further reform compulsory purchase compensation rules to improve land assembly, speed up site delivery and deliver housing, infrastructure, amenity and transport benefits in the public interest. That manifesto promised that a Labour Government would take steps to ensure that, for specific types of development schemes, landowners are awarded fair compensation rather than inflated prices based on the prospect of planning permission.
The Government’s reforms, which were outlined in the consultation published at the end of 2024, are necessary to deliver the housing and critical infrastructure that this country needs and to make it more attractive for the public sector to use its compulsory purchase powers to deliver development in the right places. That is the intent behind the clauses that we are debating this morning. To be clear, changes introduced in the Bill are not targeted at farmers or any particular landowners, and they make a limited addition to the existing power for CPOs to be confirmed with directions removing hope value, so it may apply to parish or town council CPOs facilitating affordable housing provision.
I made this point on Second Reading and I want to be clear: there is nothing in the Bill that changes the core principle of compulsory purchase—that it must be used only where negotiations to acquire land by agreement have not succeeded and where there is a compelling case in the public interest. It will be for individual authorities to decide where it is most appropriate to use their CPO powers to deliver their schemes in the public interest. Taken together, the clauses will ensure that quicker decisions on CPOs can be made, the administrative costs of undertaking the process are reduced, and a better balance is struck so compensation paid to landowners is, as I have said, fair but not excessive.
Clause 83 amends the legislation underpinning the compulsory purchase process and compensation rules to allow the service of statutory notices to be undertaken by electronic methods of communication. Allowing CPO notices to be served on parties by electronic communication will ensure that the CPO process is modernised and made more efficient. Notices may be served by electronic communication providing the person receiving the notice has provided an address for such a service, such as an email address. Where an address is not provided, the existing methods of service—for example, by post—will remain. The default method for service of notices on public authorities will be electronic communication, providing the authority has specified an address for communicating about the specific CPO in question. The clause, which again I hope is uncontroversial, simply intends to modernise and speed up the compulsory purchase process and reduce the administrative costs, and I commend it to the Committee.
Paul Holmes
I will take the tactic of discussing each clause relating to CPOs at a time, if that is all right with the Minister. I know he had to give an overview of clauses 83 to 92, but we would like to scope out some questions before coming on to new clause 52, which we will discuss under clause 88, where most of our disagreement comes from.
I understand what the Minister has said about CPO reform and not targeting farmers. However, the record of this Government’s relationship with farmers in other areas of policy has raised anxieties about agricultural land and the rights of farmers, and the amount of compensation that tenant farmers versus occupied land farmers will be offered. Some of the reforms that the Minister is making raise questions about the Government’s general campaign against farming and agriculture in this country, which we remain very concerned about in other areas of policy, but we will discuss those issues in a moderate and constructive manner when we debate later clauses.
Clause 83 concerns electronic services. We generally welcome any simplification and reduction in costs and administration; that is why I am a Conversative. However, we believe that the clause could still raise some implementation challenges. Public authorities are presumed to consult with an electronic service if they provide a relevant email or web address, but that assumption may lead to issues where authorities have multiple points of contact or emails go unattended, potentially causing delays or disputes within an effective service.
Secondly, the clause introduces a default presumption that notices are received the next business day after sending, but that might not hold in practice—for example, if the message is caught in a spam filter or fails to send due to technical error. There could be some conflicts and complications in some of the cases that the clause seeks to amend. The legislation could benefit from a clearer mechanism for confirming receipt to reduce uncertainty or legal challenge further down the line.
Moreover, although the shift to digital communication is welcome, the clause stops short of encouraging or mandating broader digital transformation across the CPO process. For instance, there is no mention of a centralised digital portal for tracking notices or verifying delivery, which could further enhance transparency and reduce administrative friction. Although modest in scope, the clause is a positive step towards a more efficient compulsory purchase regime, notwithstanding the concerns that we have about further reforms, but its practical success will hinge on thoughtful implementation, clear guidance and ongoing support for acquiring authorities and affected parties.
Matthew Pennycook
I thank the shadow Minister for those fair and reasonable questions. I will provide a reassurance on the central mechanism by which we expect the Bill to operate. Electronic communication will become the default. Where parties do not agree to receive service of notice by electronic methods, or do not provide an electronic address for service, they will continue to receive notices by post, hand delivery or it being left at their address, so there is a clear mechanism for those who do not want to, or feel they cannot, receive such notices by electronic communication.
However, authorities will need to ensure that the electronic address given by recipients for service of notice is the one used when they serve notices electronically on that person. Where an action is triggered by the receipt of a notice under the CPO process, the legislation is clear that if notice is served by electronic communication, the notice will be taken to have been received on the next working day—“working day” is defined in the legislation. We will, of course, provide guidance for local authorities on best practice, and ensure that routes to legal challenge on procedural grounds are maintained.
The central point on which we must be clear is that where parties have agreed in writing to receive service of notice by electronic methods, the burden of responsibility for responding to an action triggered by receipt of a notice will lie solely with the recipient. If they do not feel able to administer the process on those grounds, there is an option to still receive notices in the existing manner.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
It is a pleasure to serve with you in the Chair, Ms Jardine. Is this proposed to become the default across Government? In my experience as a magistrate, large numbers of people do not attend court. The rules essentially say that a notice is deemed served if it has been posted to a correct postal address of the individual concerned. Clearly, that could become more efficient in the days of electronic communication. However, are we going to find that there is a sufficiently consistent approach, especially in situations where there is a dispute between the landowner and those acting in pursuit of the compulsory purchase order, so that there are no misunderstandings by lawyers advising people about which rules apply under this specific legislation, as opposed to other legislation of which they also have experience?
Matthew Pennycook
I take the shadow Minister’s point. He tempts me to opine on digital communication strategy across Government, but it is too early in the morning to do that. Different Government Departments are taking forward reform in different ways. I recognise the point he makes. It may or may not interest the Committee that I am required to do jury service in the coming weeks, which the Whips have some issue with. I received electronic and postal notice of that jury service. Different processes are in different stages of reform.
We are very clear that, for this process, we want to move to default electronic communication, which has lots of administrative benefits, but we have made provision for those who do not feel that they can move, or want to move, to that type of notice. We will, as I have said, provide guidance for local authorities on best practice and ensure that routes to legal challenge on procedural grounds are minimised. However, I will take the hon. Member’s point away. I am happy to share it with ministerial colleagues in other Departments. I think it is a fair challenge that the Government should ensure that, across the board, to the extent that they possibly can, they have a uniform approach to moving to electronic communication in instances where they want to do so.
Question put and agreed to.
Clause 83 accordingly ordered to stand part of the Bill.
Clause 84
Required content of newspaper notices
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Although we are maintaining the requirement for notices on the making and confirmation of CPOs to be published in newspapers, this clause simplifies the information required in the description of land included in those newspaper notices. Instead of giving complete, detailed descriptions of land, authorities will be able to comply with the requirement by briefly identifying the land through stating its postal address or, where that is not available, briefly describing its location. This will mean that newspaper notices contain succinct and clear information regarding the description of land included in CPOs and not overly complex text, ensuring that they are easier to understand and making the CPO process more accessible. The simplification of information in this regard will deliver administrative cost savings for acquiring authorities. I commend the clause to the Committee.
Paul Holmes
Again, we do not see the clause as particularly controversial, but we would like to ask some questions. Can I put on record, first, that I wish the Minister well with his jury service? We will see whether he is the living embodiment of being “tough on crime, tough on the causes of crime”. I am sure that the Whips will love the fact that one of their Ministers is off-site—hopefully on Report so that we can get most of our amendments through.
As the Minister said, clause 84 aims to streamline the content requirements for newspaper notices related to CPOs by permitting either the use of a postal address or a general location description where a specific address is not available. The clause is expected to reduce administrative complexity and cost, which is a welcome step for authorities managing CPOs under tight timelines and budgets.
However, while simplification is beneficial, there is a risk that overly brief or vague descriptions could undermine transparency for affected landowners or the wider public. Newspaper notices remain a critical means of ensuring that individuals who may not be directly notified are still informed about CPOs that could affect them. If the language becomes too generic, individuals may be unaware that their land is included in an order, potentially limiting opportunities for objections or engagement.
The clause could benefit from safeguards or accompanying guidance to ensure that clarity and public accessibility are maintained, especially in cases involving rural land, undeveloped plots or where postal addresses are unclear. Moreover, the clause does not address whether digital platforms could supplement or eventually replace newspaper notices, which could further modernise the process while improving public access to information. Overall, the clause is a pragmatic reform, but we must strike the right balance between efficiency and the need for meaningful public engagement.
Has the Minister had any feedback from local newspaper industry representatives saying that they are concerned, given some of the ways in which these notices provide an income stream to a sector that is increasingly under pressure in being able to communicate with our local residents?
Matthew Pennycook
I again thank the shadow Minister for that fair and reasonable challenge. I recognise—as the other shadow Minister, the hon. Member for Ruislip, Northwood and Pinner, would—that the loss of local newspapers is very keenly felt in a London context. Blogs and other things have sprung up in their place, but this is definitely an issue. That is one of the reasons why we have determined not to remove the requirement to publish CPO notices in newspapers. We think that that does have benefits, particularly for members of the public who cannot access the internet, but we do think that a modernisation of the process is necessary.
This is not about reducing transparency; it is about making the administrative process more proportionate and more cost-effective. The key point is that the information contained in the newspaper notice will still give the location of the land and other information, and, importantly, as I have said, that will be complemented by information available in site notices affixed to the land in question, notices served on individuals, and information published about the CPO on the acquiring authority’s website—for example, electronic copies of the CPO, including a map and notices. The requirement to describe the land fully in these other notices is not changing. We are just trying to make more proportionate the information contained in the newspaper notice in question.
David Simmonds
I agree with my fellow shadow Minister that the Government are landing in the right place on this. It was a great frustration for many of us who served in local government that quite a few of those newspapers moved to being online-only, but maintained a print edition because that meant that they could charge the local authority £5,000 for putting a notice in that, if it was a lonely hearts ad or someone selling their car, would have been £25. The system has been abused at the expense of council tax payers for quite a long time, and this moves us a bit more to the right location.
Matthew Pennycook
I think I have said enough. There is no further information that I can provide on the clause.
Question put and agreed to.
Clause 84 accordingly ordered to stand part of the Bill.
Clause 85
Confirmation by acquiring authority: orders with modifications
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 85 will speed up decisions on CPOs where no objections have been received. Currently, where a CPO is not objected to, the confirmation decision can be made by the acquiring authority, providing certain conditions have been met. One condition is that the CPO does not require modification—for example, to correct an error in the drafting of the order. That adds unnecessary delay and prevents authorities from taking earlier possession of land to deliver benefits in the public interest.
Clause 85 allows an acquiring authority to confirm its own compulsory purchase order with modifications, providing that they do not affect a person’s interest in the land. Where they do, it introduces the ability for acquiring authorities to confirm their own CPOs where modifications are required, providing that the modifications do not affect a person’s interest in a controversial way. Where modifications need to be made to a CPO— for example, to remove land from the CPO, or to correct a drafting error such as the wrong colour used on the map to identify land—the confirming authority will set out in a notice what modifications are required. Acquiring authorities will not be allowed to add new land into CPOs or exclude part of a plot of land from CPOs, as such changes could provoke objections. In those circumstances, the modification and confirmation of the CPO will still be made by the confirming authority.
The changes are intended to speed up the decision-making process for CPOs that have not been objected to, and to allow benefits in the public interest to be delivered more efficiently. They will be particularly helpful in situations where, as part of a wider land assembly exercise, an acquiring authority needs to exercise its compulsory purchase powers to acquire title to land in unknown ownership. Modifications that do affect a person’s interest in land are allowed, but only if the affected person gives their consent for the modification being made. For these reasons, the Government believe that the clause will enable the CPO process to better benefit the public interest.
Paul Holmes
Again, we welcome the Minister taking a pragmatic approach to streamlining the process. That would be useful to some elements of CPOs, with minor modifications. Although the clause is framed around efficiency, however, it raises some concerns about checks and balances. Even modifications deemed minor can have implications for how land is used or valued. Relying on the judgment of the acquiring authority alone may create a risk of oversight or perceived conflicts of interest.
The provision for consent from affected landowners offers a safeguard, but in practice, there may be power imbalances that undermine the voluntariness of that consent, especially if pressure to expedite delivery is high. Furthermore, the process for how affected parties are informed and how modifications are assessed as “non-impactful” remains vague. Without clear guidance or criteria, the risk of inconsistent applications across authorities is significant. I would welcome the Minister’s comments on that specific issue. Although the goal of speeding up land assembly for public benefit is legitimate, greater transparency and procedural clarity is essential to ensure that the clause does not erode public trust in the compulsory purchase process.
Matthew Pennycook
I welcome that question from the shadow Minister. We are confident that the power will not be misused. The legislation will allow acquiring authorities to make minor modifications to CPOs in cases where they do not affect a landowner’s interests, other than with the landowner’s consent. We broadly consider that such modifications are non-controversial and will not provoke objections, but given the strength of feeling that the shadow Minister has expressed on the matter, I am more than happy to write to him to set out some further clarification of how we believe the process would operate, and why we do not think there is risk of misuse in the way that he fears.
Question put and agreed to.
Clause 85 accordingly ordered to stand part of the Bill.
Clause 86
General vesting declarations: advancement of vesting by agreement
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
These clauses introduce provision to allow more flexibility for taking possession of land subject to compulsory purchase. Currently, before an acquiring authority can take possession of land under the general vesting declaration procedure, it must give a minimum of three months’ notice to those with an interest in the land. Generally, this is to allow those who occupy or use the land time to relocate, move out or arrange alternative access. Clauses 86 and 87 introduce the ability for authorities to take earlier possession of land in certain circumstances.
Paul Holmes
I will make some brief comments on the clauses. On clause 86, we believe that the conditions under which earlier possession may occur, such as when land is unoccupied, unsafe or where ownership is unknown, are potentially valid, but they rely heavily on subjective judgements by the acquiring authority. For instance, allowing the authority to determine whether items left on the land are of significant value or whether the land is
“unfit for its ordinary use”
introduces a risk of inconsistent or contested interpretations. The exclusion of illegal occupation from the definition of occupancy is also fraught with complexity, particularly in areas where land may be informally used by vulnerable individuals.
Although the clause provides a process for effective parties to make representations, it does not establish an independent mechanism for appeal or review if the acquiring authority rejects those representations. That could weaken procedural safeguards and may leave individuals or communities with limited recourse. Furthermore, although the clause excludes partial acquisitions of buildings, the broader implications for owners of derelict or disputed property could be significant, particularly in urban regeneration contexts where such assets are common.
Overall, while the reform seeks to introduce efficiency, it must be implemented with caution to avoid undermining rights to property and due process. Stronger safeguards, such as independent oversight of early possession decisions and clearer statutory definitions, may be necessary to prevent potential misuse or unintended consequences.
On the surface, the provisions in clause 87 appear pragmatic: they enable willing parties to bypass the standard three-month wait under the general vesting declaration procedure, and instead agree to an earlier possession date no sooner than six weeks after the publication of the CPO confirmation notice. We accept that this could reduce delays in project delivery, particularly where landowners prefer a swift resolution, or where prolonged possession timelines would otherwise stall regeneration or infrastructure efforts.
However, the clause’s wider implications warrant attention. While this is an agreement-based route, the inherent power imbalance in the compulsory purchase context can make voluntary agreements feel pressurised. Landowners—particularly smaller ones or those with limited legal support—may feel compelled to agree to early possession without fully understanding their rights or the valuation consequences. The clause attempts to address compensation timing and valuation issues, but the technical nature of the provisions may still leave room for confusion or disputes. I look to the Minister for reassurance.
The exclusion of counter-notice rights in cases of partial early possession under schedule A1 to the Compulsory Purchase (Vesting Declarations) Act 1981 also weakens the landowner’s ability to negotiate fairly, as it removes a potential tool for resisting piecemeal acquisitions that may render the remainder of the property less viable. While efficiency is a legitimate goal, it must be weighed against individual rights and procedural fairness.
Overall, while the clause introduces a useful flexibility for streamlined land acquisition, it should be accompanied by strong safeguards, including clear guidance for landowners, transparent compensation mechanisms and accessible dispute resolution processes, to prevent coercion and ensure genuinely informed agreements.
Matthew Pennycook
I thank the shadow Minister for those questions. As ever, I will reflect on his request for procedural fairness to be maintained, but in broad terms, I would say that abuses of the kind he suggests are highly unlikely. I am more than happy to provide him with further reassurance on that point.
Given that clause 87 is about undertaking the procedure in question by agreement, I think it is less controversial. On clause 86, it will be for the acquiring authority to be confident that the conditions for the use of the power have been met, and to objectively identify where it thinks that the conditions for the use of the power have been met. In doing so, it will be for acquiring authorities to respond to and defend against any disputes or challenges made on the use of the power.
Where the land includes a dwelling, the acquiring authority is empowered only to expedite the vesting of the land if the dwelling is unfit for human habitation within the well-understood meaning set out in section 10 of the Landlord and Tenant Act 1985. However, included within the power to take early possession of land or buildings is a safeguard to prevent the vesting of land from being brought forward where there is disagreement as to whether the land is unoccupied or is in a condition that it is fit for use, or where an occupant identifies themselves to the authority. As I have said, parties can make representations to the acquiring authority that those conditions have not been met, but ultimately, the decision as to whether they have or not remains with the acquiring authority. However, I am happy to reflect on whether there is a need for further safeguards in this area and to update the shadow Minister accordingly.
Question put and agreed to.
Clause 86 accordingly ordered to stand part of the Bill.
Clause 87 ordered to stand part of the Bill.
Clause 88
Adjustment of basic and occupier’s loss payments
Paul Holmes
I do not know whether this is helpful clarification procedurally, but on this group, I would like to speak only to new clause 52 under the name of the official Opposition. We are happy not to press amendments 134 to 147 at this stage.
The Chair
With this it will be convenient to discuss new clause 52—Alignment of basic and occupier’s loss payments—
“(1) The Land Compensation Act 1973 is amended as follows.
(2) In section 33B (occupier’s loss payment: agricultural land), in subsection (2)(a) omit ‘2.5%’ and insert ‘7.5%’.
(3) In section 33C (occupier’s loss payment: other land), in subsection (2)(a) omit ‘2.5%’ and insert ‘7.5%’.”
This new clause, being an amendment of the Land Compensation Act 1973, would align the occupier’s loss payments with the basic loss payments at 7.5% of the value of the party’s interest.
Matthew Pennycook
I thank the shadow Minister for not pressing amendments 134 to 147. I would not have been able to accept them for reasons I could have gone into at some length.
I will deal with the clause and then new clause 52, which the Opposition still wish to move. To ensure that compensation paid to those whose land is compulsorily acquired is fair, clause 88 makes changes to the Land Compensation Act 1973 and the framework for basic and occupier’s loss payments. Loss payments exist to reflect the inconvenience caused by compulsory purchase. They are valued either on the market value of a person’s interest or on an amount calculated by reference to the area of the land or buildings known as the “land amount” or “building amount”, whichever is the highest.
The market value of a freehold interest is often more than the market value of a leasehold interest held by an occupying tenant, which often has little or no market value. That usually results in occupying tenants receiving less compensation than owners. As occupying tenants bear the burden of having to close or relocate their businesses, the existing allocation of loss payments is poorly targeted. It unduly favours investor owners over occupying businesses or agricultural tenants who incur greater costs. The Government believe that to be unfair. The clause therefore amends the 1973 Act to adjust the balance of loss payments in favour of occupiers.
Under our changes, we are increasing the land and buildings amount payments, which will benefit occupiers as that is the payment that they usually receive. That will better reflect the level of disruption and inconvenience caused to them through compulsory purchase, compared with investor-owners. It also ensures that the compensation regime is fair. To be clear, the reforms to the CPO process and compensation rules will not encourage the use of any particular type of CPO or change the fundamental principle that there must always be a compelling case in the public interest for use of a CPO.
The changes being made to the loss payments regime will benefit tenant farmers whose land interest is compulsorily acquired, as they will receive a fairer share of compensation to reflect the level of inconvenience that they experience from CPOs. The changes under the clause will not result in landowners being paid less than market value for the compulsory purchase of their interests.
The clause also simplifies the method of calculating the buildings amount for occupier’s loss payments relating to non-agricultural land by using the gross internal area method instead of gross external area, which we believe is more consistent with industry standards. The clause applies to England only, apart from the change to the method of calculating buildings amounts, since the Welsh Ministers have devolved competence to reform loss payments for CPOs in Wales. I therefore see the clause as an integral part of ensuring that the CPO process is built on a fair and balanced compensation process, relative to the level of disruption and inconvenience caused to occupiers of land by a CPO. I commend the clause to the Committee.
I am more than happy to respond in due course, but will first turn briefly to non-Government new clause 52, which seeks to introduce a change to the loss payment compensation regime under the Land Compensation Act 1973. The new clause would increase the amount that occupiers of buildings or land subject to a CPO would be entitled to, and place them on an equal footing with owners. Clause 88 already achieves, in part, what the shadow Minister is looking for: it increases the loss payment compensation due to occupiers of buildings and land in the way that the new clause seeks to do. The purpose of loss payments, however, is to reflect the inconvenience caused by compulsory purchase, and it is occupiers, rather than investor owners, who bear the greater burden in that respect because they are the ones who will need to close or relocate their businesses.
As I said, the clause rebalances loss payment compensation to allow occupiers to claim a higher amount and landowners to claim a lower amount. We believe that that rebalancing of loss payment compensation in favour of occupiers is the right approach. While the clause does some of what new clause 52 seeks to achieve, elements of the new clause are problematic for the reasons I set out. I am afraid I will not be able to accept the new clause, and I ask the shadow Minister not to move it.
Paul Holmes
I thank the Minister for that detailed assessment of the clause. Lord knows how long his speech would have been if we had referred to the amendments that my hon. Friend the Member for Keighley and Ilkley (Robbie Moore) tabled. I thought I would spare the Minister that—and also spare myself having to explain them. We will table more amendments on Report.
As the Minister explained, the clause revises key provisions of part I of the Land Compensation Act 1973, particularly loss payments to landowners and occupiers whose properties in England are subject to compulsory purchase. The intent behind the changes is to ensure that compensation more accurately reflects the disruption and inconvenience caused to affected individuals.
Luke Murphy (Basingstoke) (Lab)
It is a great pleasure to serve under your chairship, Ms Jardine. I want to ask the Minister a couple of questions about compulsory purchase and redevelopment and regeneration schemes. A significant regeneration scheme has been proposed in Basingstoke for the communities of South Ham and Buckskin by the housing association SNG. To say that the consultation with residents has been badly handled is an understatement. I have been calling for a complete reset of the project by SNG, which has fundamentally failed to take the community with it. It has lost the trust of many people, from its tenants to local homeowners and private renters. It must rebuild that trust. I have committed to working with residents to ensure that any plans benefit and have the support of the local community.
One of the key concerns of the community is the threat of widespread compulsory purchase. Can the Minister confirm that nothing in the Bill will weaken the voice or say of residents involved in redevelopment or regeneration schemes, where CPO is involved? Can he also confirm that CPO should always be used as a last resort, that it must always be taken in the public interest, and that it will not change the compensation available to ordinary owner-occupiers and tenants involved in such regeneration schemes?
Matthew Pennycook
I thank all Members for their contributions. To the point made by my hon. Friend the Member for Basingstoke, I do not think that I can add much more to the very clear set of principles that have guided our approach in opening this particular part of the Bill. This is not particularly directed at the shadow Minister, but there has been a fair amount of scaremongering about what the compulsory purchase provisions in the Bill entail, which has not always been completely accurate—let me put it as gently as that.
In response to a number of the challenges, I recognise why the shadow Minister raised his point, and I addressed the point about the Welsh Government. Welsh Ministers have devolved competence to reform loss payments for CPO in Wales, and therefore this clause applies in the way that I have set out. On the more substantive point, without getting into individual cases, I note the case that my hon. Friend the Member for Basingstoke made and I appreciate why he raised it, but he will also recognise why I cannot comment on specific instances of CPO use.
On the general principle of the Bill, I will say a couple of things to the shadow Minister. First, we are not removing the ability for landowners and occupiers to claim for a basic occupier’s loss payment. The Government consider it necessary to rebalance how loss payments are allocated between owners and occupiers to ensure—this is the guiding principle—that those who experience the most level of disruption and inconvenience caused by compulsory purchase are compensated fairly.
The shadow Minister pushed me to reassure him and to go away and reflect to ensure that the system has equal parity. We already have a two-tier system in place; there are differing rates for tenants and landowners. All we are seeking to do through this clause is rebalance the loss payment compensation in favour of occupiers for the reasons that I have given. Landowners and occupiers can still claim for loss payments in addition to claiming compensation for the market value of their land, disturbance costs and other reasonable costs incurred because of a CPO, such as legal and other professional fees.
We may have a principal difference of opinion here; however, on the substantive point, although we have a two-tier system already, we think that it is right to rebalance that two-tier system and weight it slightly more in favour of occupiers of land so that they are entitled to the higher amount of 7.5%, and owners of land to the lower amount of 2.5%. We think that is right, and for that reason, we will not be able to accept new clause 52.
Question put and agreed to.
Clause 88 accordingly ordered to stand part of the Bill.
Clause 89
Home loss payments: exclusions
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 89 amends the Land Compensation Act 1973 and introduces provision to exclude the right to a home loss payment in certain situations. A home loss payment is an additional amount of compensation paid to a person to recognise the inconvenience and disruption caused where a person is displaced from their home as a result of a CPO. We have just had a debate about a slightly different aspect of what the Government intend to effect by these provisions.
Under the current provisions, where property owners have failed to comply with a statutory notice or order served on them to make improvements to their neglected land or properties, their right to basic and occupier’s loss payments may be excluded. There are, however, currently no similar exclusions for home loss payments. Clause 89 amends the 1973 Act to apply this exclusion to home loss payments also. The situations where home loss payments may be excluded will include where certain improvement notices or orders have been served on a person and they fail to undertake the necessary works.
Local authorities can expend significant resource and cost using CPO powers to acquire neglected properties to bring them back into use. Where property owners fail to undertake mandated improvement works to their properties, they should not be able to benefit financially through claiming a home loss payment. Non-compliance with improvement notices or orders can increase the costs to the public purse of bringing valuable housing resources back into use through use of CPOs. If memory serves, we had a short debate on empty homes and what more the Government can do, and I think that making changes in this area will help with that. Introducing provision for these circumstances will lower local authorities’ costs of using their CPO powers. It will support the delivery of more housing for communities. It also further ensures that the compensation regime is fair.
Paul Holmes
I have nothing further to add.
Question put and agreed to.
Clause 89 accordingly ordered to stand part of the Bill.
Clause 90
Temporary possession of land in connection with compulsory purchase
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 90 amends the power to take temporary possession of land under the Neighbourhood Planning Act 2017. Promoters of major infrastructure have indicated that their current consenting regimes provide flexibility for the taking of temporary possession of land, and should the 2017 Act power be commenced, that flexibility would be taken away. The clause sets out that the power for acquiring authorities to take temporary possession of land by agreement or compulsion under the 2017 Act does not apply in respect of: first, other express temporary possession powers provided for by other Acts; secondly, development consent orders made under the Planning Act 2008, and infrastructure consent orders made under the Infrastructure (Wales) Act 2024; thirdly, orders made under the Transport and Works Act 1992.
The clause will enable the taking of temporary possession under the 2017 Act, without interfering with the process for taking temporary possession under development consent orders, infrastructure consent orders or transport and works orders. It will help ensure continued flexibility for the delivery of critical infrastructure, while paving the way for the taking of temporary possession under other regimes such as the CPO process and the New Towns Act 1981.
Paul Holmes
We do not have much to say on this clause, but it would be rude if I did not say something. [Interruption.] I know Government Back Benchers agree.
Clause 90 provides a targeted amendment to the temporary possession provisions under the Neighbourhood Planning Act 2017, clarifying the scope of that Act’s powers in relation to other legislative frameworks. It stipulates that the temporary possession powers under the 2017 Act do not apply where other Acts such as the Planning Act 2008, the Infrastructure (Wales) Act 2024 or the Transport and Works Act 1992 already contain express provisions for temporary possession. That clarification will ensure that there is no duplication or conflict between the different legislative regimes, thereby promoting legal certainty and administrative efficiency.
By explicitly excluding scenarios where other statutory mechanisms are in place, the clause avoids overlapping authorities and potential jurisdictional confusion. Moreover, it preserves the functionality of the 2017 Act for compulsory purchase orders under the Acquisition of Land Act 1981 and New Towns Act 1981, ensuring that those frameworks can continue to utilise the temporary possession powers where no alternative statutory mechanism exists.
Although the clause provides a cleaner legislative structure, it may also introduce complexity for practitioners who must now navigate multiple legislative sources to determine the applicable authority for temporary possession. That could increase the burden on acquiring authorities and landowners alike, particularly in large infrastructure schemes involving various enabling statutes. Overall, the clause serves a valuable purpose in harmonising the law, but may require careful guidance to ensure that its practical application does not create uncertainty or administrative hurdles. Although we are generally supportive, I look to the Minister to see whether he deems it appropriate to provide advisory guides and accompanying documents when the legislation is enacted.
Matthew Pennycook
It is important to make one point about the Neighbourhood Planning Act 2017, and then to reiterate the purpose and effect of the clause. The temporary possession powers in the Neighbourhood Planning Act 2017 still need to be commenced. Before commencing those provisions, the Government must consult on regulations relating to the reinstatement of land, subject to a period of temporary possession.
The commencement of the 2017 Act temporary possession powers is an important reform, to which the Government are committed. However, scoping of the work required to prepare the necessary consultation and draft regulations is still under consideration. The clause is an important tidying-up measure, although I will reflect on whether we can do more through guidance to ensure that the process is as clear as possible for those participating in it. In certain cases, the 2017 Act will—inadvertently, to be fair to the previous Government—prevent the powers from being used to enable major infrastructure regimes.
We want those infrastructure regimes to continue under the current legal provisions granted to them for the taking of temporary possession of land, so we think it necessary to amend the temporary possession powers introduced through the 2017 Act: to disapply them for the consenting regimes I set out, to ensure that, when commenced, the 2017 provisions operate as intended and that this does not frustrate major infrastructure coming through the other consenting regimes. I do not think I can be clearer than that. The clause is fairly straightforward and simple, but I am more than happy to take away the shadow Minister’s points about guidance.
Question put and agreed to.
Clause 90 accordingly ordered to stand part of the Bill.
Clause 91
Amendments relating to section 14A of the Land Compensation Act 1961
Ellie Chowns (North Herefordshire) (Green)
I beg to move amendment 2, in clause 91, page 131, line 17, at end insert—
“(za) after subsection (1) insert—
‘(1A) Subsection (2) also applies if an acquiring authority submits a compulsory purchase order in relation to furthering the purposes of delivering housing targets set out in a local plan.’”
This amendment would provide that, where a compulsory purchase order is applied for to acquire land or property for the purpose of delivering housing targets set out in local plans, the prospect of planning permission being granted can be disregarded when calculating compensation (also known as “hope value”).
The Chair
With this it will be convenient to discuss the following:
Amendment 86, clause 91, page 131, line 17, at end insert—
“(za) in subsection (2), at end insert “unless the acquiring authority states that the whole of the land is being acquired for the purpose (or for the main purpose) of provision of sporting or recreational facilities in which case subsection (5) shall not apply.”
This amendment would enable hope value to be disregarded in calculating the compulsory purchase value of land, where it is being purchased for recreational facilities.
Amendment 87, clause 91, page 131, line 18, at end insert—
“(ab) in subsection (5), at end insert “unless the acquiring authority states that the whole of the land is being acquired for the purpose (or for the main purpose) of provision of sporting or recreational facilities in which case this provision shall not apply.”
This amendment is linked to Amendment 86.
Clause stand part.
New clause 108—Repeal of section 14A of the Land Compensation Act 1961—
“In the Land Compensation Act 1961, omit section 14A.”
Ellie Chowns
It is a pleasure to serve under your chairship, Ms Jardine. I rise to speak to amendment 2. Before I do, I would like to welcome the tone in which the Minister has presented the clauses in this part of the Bill. I recognise and understand the intention to clarify the CPO process and enable it to work better, and I particularly welcome our discussions on clause 88—the determination to ensure a fairer distribution between tenants and owners, for example.
Amendment 2 is intended to be fully in that spirit. It recognises the reality of our dysfunctional land and housing markets in the UK, that hope value plays a part in that, and that reforming hope value could unlock significant resources for the delivery of social and affordable housing. I understand that the calculation is that reforming hope value could free up £4.5 billion a year, which could enable us to build a third more social rented homes than had previously been intended. That would be very valuable.
Under the Land Compensation Act 1961, land owners can potentially claim the value of planning permissions that have not even been thought of, let alone applied for. I understand that land with planning permission is on average worth 275 times more than land without—really quite an extraordinary step change in land value. Reforms to address the issue are very much needed.
Under the Levelling-up and Regeneration Act 2023, changes were made; the previous Government recognised that there was a problem. The 2023 Act allows hope value to be removed when a development is deemed to be in pursuit of public benefit, particularly affordable housing, health and education. It is a step in the right direction, but still requires the local authority to apply to the Secretary of State for permission on a case-by-case basis. Amendment 2 would simply clarify the situation and specify that when a local authority is compulsorily purchasing land to provide affordable housing, hope value can be disregarded. It is entirely in the spirit of previous reforms to the legislation. It clarifies the situation, and it avoids the potential for councils to be subject to challenge from developers on a case-by-case basis. It does that by clarifying that when the public benefit is being served—something that the Minister has repeatedly referred to—it is clear that hope value can be disregarded, because the public benefit from providing affordable housing is, in those cases, overriding. I look forward to the Minister’s comments.
Olly Glover (Didcot and Wantage) (LD)
It is a pleasure to serve under your chairship once again, Ms Jardine. I rise to speak to amendments 86 and 87 on behalf of my hon. Friend the Member for Twickenham (Munira Wilson). In tackling the issue of hope value, the Planning and Infrastructure Bill misses an opportunity when it comes to playing fields. The amendments seek to include recreational facilities such as playing fields by ensuring that when an acquiring authority uses a compulsory purchase order to acquire land for use as a sports or recreational facility, hope value would not be applied, thus making the cost more affordable.
The amendments would enable hard-pressed local authorities to acquire playing fields for their local communities’ use at playing-field value, instead of at an overinflated hope value, to boost additional grassroots sports provision. Such a change would allow sites such as Udney Park playing fields in Teddington, in my hon. Friend’s constituency—they have lain derelict for more than a decade under private ownership—to be acquired for public use. There is a dire need for additional playing space in the area.
The Liberal Democrats believe that everyone should have access to high-quality sports and recreation facilities in their local community. Indeed, Sport England says that those spaces are key to physical and mental health, and to community links. According to a 2023 College of Policing report, such facilities can help to reduce reoffending, particularly among young people. Up and down the country, too many communities lack the necessary land and space to support young people and families, as well as the wider community, to enjoy sport and improve their physical and mental health. I hope the Minister will consider the amendments in the spirit in which they are intended.
Gideon Amos
I rise to support the principle of what is being proposed in clause 91 and what has been said about the need to allow authorities to acquire land without paying additional hope value or value of planning permissions not yet sought or granted. It is a long-standing issue, and debates on it go back a very long time indeed; I think it began with Lloyd George, who said that it should be the state, rather than landowners, that benefits when the state invests resources or increases the value of land from its own actions.
I support the clause as a Liberal Democrat—it was in our manifesto—but I should add that it does not represent a radical or enormous change; in fact, it was the position for a great many years. Following the second world war, the Pointe Gourde case established the principle that hope value would not be paid. As has been mentioned, it was only the Land Compensation Act 1961, exaggerated by further case law in the 1970s, that gradually increased the amount of compensation payable to landowners on the basis of planning permissions not sought or obtained—that is, hope value. As we have been discussing, that frustrates and stymies the delivery of social housing, which we all wish to see, and of other public development.
For all those reasons, this is a welcome clause and we definitely support it. On amendment 2, my understanding is that the clause would allow social housing to be delivered under the provisions of clause 91, but no doubt the Minister will clarify that. We will make our decision about amendment 2 on that basis.
Finally, this has been a long campaign by a number of people and organisations, including the Town and Country Planning Association. People such as Wyndham Thomas, a pioneer in this field, long argued for a change to the hope value provisions. The change, if it comes today, will do credit to those who pushed for it for so many decades.
Paul Holmes
For the Committee’s convenience, I note that we do not plan to speak to proposed new clause 108, tabled by my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins); I have just scribbled it out. We welcome some provisions of clause 91, but we have some concerns. The Minister will definitely come back to me and say, “But your Government made some reforms.” We know that, but the Opposition have some concern about the scattergun—I would not say “spontaneous”—approach to bypassing hope value, which allows its removal through a much more centralised and unfair system. As we said previously about some CPO provisions, we are concerned that the clause will be unfair on some people who are not well off or affluent.
However, overall the clause is a pragmatic and well targeted reform that aims to steer towards prioritising community benefits and affordability. We will look at it in more detail in later stages of consideration; the Minister knows that we will constructively try to reform the elements that we are concerned about. But we will not press proposed new clause 108, and are happy to let clause 91 through without a Division.
Matthew Pennycook
I will first respond to amendments 2, 86 and 87, then speak to clause 91 stand part, and finish by touching briefly on proposed new clause 108.
Amendment 2 was moved by the hon. Member for North Herefordshire. As she set out, it would amend clause 91 to expand the power, introduced by the Levelling-up and Regeneration Act 2023, for CPOs to be confirmed with directions removing hope value. The amendment proposes expanding the direction power to CPOs that are delivering housing targets set out in their local plans.
The Government agree that there is a need to address issues around the payment of hope value, but I am unable to support the amendment. Sympathetic as I am to the greater use of hope value—mayors and local authorities around the country read Hansard closely, so I stress that the Government very much want an acquiring authority to utilise the powers in the Levelling-up and Regeneration Act—I cannot accept the amendment because its principal objectives can already be achieved with the existing direction power. That power has similar effects but, importantly, requires affordable housing to be part of any scheme reliant on CPO powers. We therefore do not believe that the amendment is required.
If the hon. Member for North Herefordshire wants to respond we can have an exchange on this point, but the power in question is used on a case-by-case basis according to the public interest. This Government, like the previous Government, are well aware of the need to meet the public interest test so that use of the power does not fall foul of article 1 of the first protocol of the Human Rights Act 1998, in a true, broader application. That is why the public benefit test is important and needs to be judged on a case-by-case basis. Seeking to expand the use of the power beyond that test, and apply it much more widely, is problematic.
Gideon Amos
It would be helpful if the Minister confirmed what I think he is saying: that the application of compulsory purchase under clause 91 could include compulsory purchase of land that will be used for social or affordable housing.
Matthew Pennycook
I absolutely can confirm that. If the hon. Member is interested, that was set out in the extensive debates on that power during the Levelling-up and Regeneration Bill Committee. The public benefits to which the direction can apply are very clear: transport schemes but also affordable housing schemes. However, it would be judged on a case-by-case basis whether the amount of affordable housing provided, in each instance, was sufficient to meet that public benefit test.
The important point that I need to make is that the reference to the provision of affordable housing and other benefits is an important safeguard, to ensure that directions removing hope value could meet the public interest justification test and ensure that the use of the power would be compliant with human rights legislation. That is really important. Trying to draw the power too widely would fall foul of human rights legislation and we would not be able to use it in any case. That is why it has to be targeted at schemes that deliver in the public interest. That will be judged on a case-by-case basis.
The Government also have concerns that amendment 2 could introduce a change that could make it difficult for authorities to justify directions removing hope value in the public interest. We think that it could make the benefits delivered through use of the existing direction power less clearly identifiable and problematic for those reasons, so I will not be able to accept the amendment, although, as I say, I am sympathetic to the use of the direction in clear instances when a public benefit is at stake.
Although we have commenced the Levelling-up and Regeneration Act provisions only this year, to date no acquiring authority has used them; I suspect that is partly from the usual hesitancy about being the first mover and partly about ensuring that there are sufficient skills in the acquiring authority to use it. But the Government are very clear: we do want an acquiring authority, where appropriate, to make use of the power, although we cannot draw it more widely for the reasons I have given.
I turn to amendments 86 and 87. The amendments seek to amend clause 91 and expand the power introduced by the Levelling-up and Regeneration Act for CPOs to be confirmed with directions removing hope value. The amendments propose to extend the types of CPOs for which directions removing hope value may be sought to CPOs providing provision of sporting and recreational facilities. The amendments also seek to introduce a change so that CPOs that provide sporting and recreational facilities would not have to facilitate affordable housing provision when seeking directions removing hope value.
While the Government recognise the value of parks and playing fields to our communities—we could all give our own examples of how much they are cherished and loved—we are unable to support the amendments. As I have said, the non-payment of hope value to landowners through the use of CPO powers must be proportionate and justified in the public interest. Affordable housing, education and health are types of public sector-led development where the public benefits facilitated through the non-payment of hope value can be directly demonstrable to local communities. The Government have concerns that the provisions would be less compelling for sporting and recreational facilities. The proposed changes could make it difficult for authorities to justify directions removing hope value in the public interest, as the benefits to be delivered would be less clearly identifiable. The Government are therefore unable to support the amendments.
I turn briefly to clause stand part. Clause 91 makes amendments to the power introduced by the Levelling-up and Regeneration Act, which we have just been debating, that allows authorities to include in their CPOs directions the removal of hope value from compensation, when that is justified in the public interest. First, the clause amends the Acquisition of Land Act 1981 and provides that CPOs made with directions removing hope value may be confirmed by acquiring authorities where there are no objections to the relevant CPO.
Alongside that reform, the Government intend to publish updated CPO guidance to make clear their policy that the power for inspectors to be appointed to take decisions on CPOs under the 1981 Act can be used for CPOs with directions removing hope value. CPO guidance published by my Department sets out criteria that the Secretary of State will consider in deciding whether to delegate confirmation decisions to inspectors. The updated CPO guidance, reflecting the Government’s policy, will be published when we implement the Bill’s reforms following Royal Assent. The changes will speed up the decision-making process for CPOs with directions removing hope value and ensure that the process is more efficient and effective.
Secondly, clause 91 extends the power for CPOs to include directions removing hope value to CPOs made on behalf of parish or community councils under section 125 of the Local Government Act 1972. That will allow parish or community councils, when seeking to deliver affordable housing in their areas, to acquire land without paying hope value compensation—again, when a direction removing hope value is justified in the public interest demonstrably and clearly. The change is intended to increase the viability of such schemes to deliver more affordable housing, which these communities desperately need.
Lastly, the clause amends the legislation to ensure that when CPOs are confirmed with directions removing hope value, the directions apply not only to the assessment of market value of land taken but to loss payments where the assessment of market value is a relevant factor. That makes it clearer that hope value will be removed from all heads of claim where market value is assessed. That provides for the consistent application of the principles for the assessment of the market value of land where CPOs are confirmed, with directions removing hope value. It also ensures that the compensation regime does not deliver excessive compensation where compulsory purchase is used to deliver benefits in the public interest.
I again make it clear that these reforms are not about targeting farm owners or any specific types of land or landowner. Neither do the clauses seek to change—returning to the point made by my hon. Friend the Member for Basingstoke—the core principles of compulsory purchase, which remain. There is nothing in the Bill that changes the core principles of compulsory purchase. As I have said, it must be used only where negotiations to acquire land by agreement have failed, and where there is a compelling case in the public interest. To deliver the homes and infrastructure we need, we must look to unlock land in the right places. These clauses ensure we have the correct tools to realise that.
Briefly, new clause 108, tabled by the right hon. Member for Louth and Horncastle, seeks to repeal section 14A of the Land Compensation Act 1961, which provides the power for CPOs to be confirmed, with directions removing hope value where justified in the public interest. For that reason, I understand why the shadow Minister has at the last moment hesitated to speak to it. In essence, the new clause would remove the power introduced by the Levelling-up and Regeneration Act 2023, which allows acquiring authorities to take forward certain types of scheme by compulsory purchase and to pay a reduced value for land where it will deliver clear and significant benefits and is justified in the public interest.
I disagree with the reforms made by Baron Gove—I think that is now the correct terminology—in a number of areas. He tainted his record in my Department very late on in the previous Government by abolishing mandatory housing targets under pressure from the so-called planning concern group, the ringleaders of which all lost their seats in any case. He did, however, introduce a number of very valuable reforms, one of which is that reform to CPOs. It is therefore absolutely right that we do not attempt—as the right hon. Lady clearly does, if not the shadow Minister—to remove it from the statute book.
Paul Holmes
The Minister is being slightly unfair in saying that I have chosen not to speak to the new clause at the last minute; I had always intended not to speak to it because we are very collaborative on our Opposition Front Bench in deciding what we will and will not speak to. The Minister should know that there is always a good intention behind a new clause or amendment—in this case, to restrict the unfairness to some people.
The Minister should also not be surprised that the shadow Cabinet and shadow Ministers such as myself are assessing what happened under the last Government. We are looking back and, as we have said repeatedly, we are under new leadership. The Minister will know—in a basic constitutional lesson—that no Government is bound by the actions of its predecessor, and we are not bound by the actions of our previous leader. [Interruption.] They should not be surprised by that. They were always reviewing their successes under Gordon Brown and particularly the right hon. Member for Doncaster North (Ed Miliband). They have changed a lot of their views from what they used to say then. They have definitely changed a lot of what they thought when they were under the leadership of the right hon. Member for Islington North (Jeremy Corbyn) and were extolling the virtues of loyalty.
We will look to see how we can strengthen the provisions in the new clause tabled by my right hon. Friend the Member for Louth and Horncastle, and we will come back to it a further stage. The Minister should not always think that there is a conspiracy when I decide not to press an amendment.
Matthew Pennycook
It has been pretty dry going this morning on these clauses. For the purposes of entertaining the Committee, I just want to make sure I have understood the shadow Minister.
Matthew Pennycook
The Opposition are at liberty to change their position on any policy that the previous Government introduced, but they do not want to change policy in this area as they believe that the power is proportionate and necessary. However, the right hon. Lady still tabled the new clause to signal that they may be willing to come back to it at some point. Is that broadly right?
Paul Holmes
The Minister is being overly cynical. As he knows, our leader, my right hon. Friend the Member for North West Essex (Mrs Badenoch), has said that there is a mainstream review of what worked and what did not work under the very successful Conservative Government that served for the last 14 years. What we are looking at going forward is whether we need a new approach to planning reform. That is exactly what the new clause was intended to probe.
Ellie Chowns
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 91 ordered to stand part of the Bill.
Clause 92
New powers to appoint an inspector
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 92 amends the process for the confirmation of CPOs made under the New Towns Act 1981. Decisions to confirm CPOs made under the Acquisition of Land Act 1981, such as housing and planning CPOs, can be made by inspectors on the Secretary of State’s behalf, but currently, confirmation decisions on CPOs made under the New Towns Act must be taken by the relevant Secretary of State. Clause 92 introduces a power for confirmation decisions on CPOs made under the New Towns Act to be delegated to inspectors, although the Secretary of State will retain the ability to recover decisions for their determination. This change will ensure the decision-making process for CPOs facilitating new towns is streamlined and consistent with the confirmation of other CPOs.
Clause 92 also amends the decision-making process for directions for the payment of additional compensation under schedule 2A to the Land Compensation Act 1961 where an acquiring authority has not fulfilled the commitments it relied on when it obtained a direction allowing it to acquire the land without hope value. The clause introduces a power for the Secretary of State to appoint inspectors to take decisions on applications for additional compensation. This will ensure that the process for considering applications for additional compensation is more efficient and consistent with the approach set out in clause 91, which allows for the delegation of decisions on CPOs. The clause will make the authorisation process more efficient, resulting in quicker decisions.
David Simmonds
I just want to ask the Minister, in respect of the appointment of the inspector, what the Government’s thoughts are about the requirements for who that inspector would be. With reference to my fellow shadow Minister’s point on an earlier clause, one of the concerns is whether what emerges from this process will be a fair level of compensation, particularly in a constituency such as mine on the edge of London, where there is a lot of farmland—a lot of green-belt land—for which the occupiers will have paid a significant hope value premium to Parliament, sometimes decades ago. The same will be true in many potential development areas on the fringes of cities.
Clearly, it will be necessary that the inspector, who comes to a view about what an appropriate compensation payment is, has a relevant level of qualification. Again, does the Minister have a view about including a requirement for the inspector to have a relevant accountancy, surveying or other qualification that would enable them to discharge this function, or to secure the relevant advice, so that all parties can be confident in the decision that is made?
Matthew Pennycook
If the shadow Minister will allow me, I will come back to him in writing on the specific point of how the Government will ensure that the relevant inspector has the correct skillset to make the necessary decisions.
I think it is probably worth making two other points. First, how will the delegation of decisions to inspectors on CPOs made under the New Towns Act 1981 be considered? The appointment by the Secretary of State of an inspector to make the decision on a CPO made under the 1981 Act will be considered against the delegation criteria published in the Government’s guidance on the compulsory purchase process.
Secondly, there is the important question of whether the decision on an application for additional compensation will be delegated to the same inspector who considered the original CPO with the direction removing hope value. In that regard, it is important to note that the timescales between the confirmation of a CPO with a direction removing hope value and the determination of an application for additional compensation will vary in each case. As such, it may be impractical for the inspector who considered the original CPO with the direction removing hope value to determine the direction for additional compensation, so we need that flexibility.
David Simmonds
I understand the point the Minister is making. The lessons learnt from the HS2 project is that this can become a very significant source of hardship for land occupiers. I think of a constituent in his 90s who has waited six years for the payment of compensation for land that has been occupied throughout that time by HS2 in pursuance of its project. There are ongoing debates about how this will be settled. Despite an agreed figure having been reached some time ago, payment was held up. If the Minister is not minded to introduce deadlines around that, he might wish to table amendments to that effect at a later stage. I am interested in what he has to say about that.
Matthew Pennycook
I note the point that the hon. Gentleman is making. I will not comment on the specific case he raises, but I am keen to provide him with as much reassurance as possible about the skillset of inspectors, and that skillset being directly applicable to the types of cases they will be looking for in terms of compensation. On the practical considerations around the timescale of the process and other issues he has raised, I am more than happy to set that down in writing to him.
Question put and agreed to.
Clause 92 accordingly ordered to stand part of the Bill.
Clause 93
Reporting on extra-territorial environmental outcomes
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
As the Government move to bring forward the new system of environmental outcome reports that will replace the EU processes of environmental impact assessment and strategic environmental assessment, it is necessary to make a minor amendment to the original drafting to ensure the new system can comply with relevant international obligations. Environmental outcomes reports provide the opportunity to streamline the assessment process while securing better outcomes for nature, but it is vital we start this journey with the right powers.
Clause 93 amends the power to specify environmental outcomes to ensure they can relate to areas outside of our national jurisdiction. This is to ensure that the new system of EORs can comply with, among other things, the UK’s obligations under the Espoo convention, which requires signatories to consider the potential transboundary impact of development. This measure will ensure that, as the Government progress with developing the new system of EORs, they will have sufficient powers to ensure the new system can adequately fulfil all our international obligations.
Paul Holmes
Before we receive a statement later from the Prime Minister, can the Minister outline whether any of the movements in this domestic legislation, which stem from the transitioning of EU-derived systems, will be affected by any Government deal made between the EU and the United Kingdom?
Matthew Pennycook
I will come back to the hon. Member on that point in writing, because it is important that I am precise on it. Obviously a series of obligations stem from the trade and co-operation agreement, and they are set out. This clause specifically attempts to ensure that the new system of EORs—legislated for through the Levelling-up and Regeneration Act 2023—can, once it is brought into force, function in a way that is compliant with all our international obligations. I think members of the Committee would very much support that being the case. I commend the clause to the Committee.
Paul Holmes
I would expect the Minister to write to us; I would not expect an answer on the Floor of the Committee. What the Prime Minister is going to outline later is a detailed and holistic deal. When we talk about a change that is being framed within the context of transitioning from the EU-derived systems of environmental impact assessments and strategic environmental assessments—I have only read what is in the papers; I am sure the Minister has, too—any area that is encapsulated within that wider deal may affect this domestic legislation going forward, so I would appreciate his writing to us on that.
By expanding the geographical scope within that derived system, the clause allows for a more holistic consideration of environmental impacts, including transboundary and global effects, as the Minister has outlined, which are particularly relevant in an era of climate change, biodiversity loss, and other interconnected environmental challenges. The broadened scope may be seen as a progressive move, enabling regulators to take a more comprehensive view of environmental harm such as greenhouse gas emissions or marine pollution, which can extend well beyond national borders. It aligns with growing international expectations that environmental assessments account for broader spatial impacts, enhancing the credibility and robustness of the UK’s post-Brexit environmental governance framework, although that is potentially subject to change by the Government.
Although the clause strengthens the theoretical scope of environmental assessments, it does not clarify the practical mechanisms by which the likely significant effects beyond the UK will be evaluated or enforced. Without that clear guidance, the broader remit could become more symbolic than operational, risking inconsistencies in application. Bearing in mind the time, I would appreciate it if the Minister could briefly come back on those points, and then we would be content not to vote against the clause.
Matthew Pennycook
In speaking to the clause, I stressed that the purpose is to ensure that the new system of environmental outcomes reports introduced by the Levelling-up and Regeneration Act, which this Government are committed to proceeding with, is compliant with all our international obligations. I mentioned, for example, the Espoo convention. The UK is party to that convention, and thus all development must consider whether the project will have likely significant effects on the environment in other states that are also party to it. I understand the shadow Minister’s points, but this is a non-controversial clause that simply ensures that once we bring the new system into force, it is compliant with all our international obligations.
Gideon Amos
It might be helpful to point out that the Espoo convention—the transboundary convention—is not, although the shadow Minister referred to European obligations and transition, a European convention; it is a United Nations convention. It is therefore not related to Brexit. It is a convention signed under the United Nations commission. It is important that the clause addresses that.
The Espoo convention also reminded me of the training for inspectors point that the Minister made. I wonder whether the Government, given the clauses in the Bill, particularly the hope value clause we discussed earlier, would ensure that training of inspectors is brought up to date across the board to ensure that the provisions are properly applied. I declare an interest as a former inspector.
Matthew Pennycook
We value the hon. Gentleman’s expertise and insight. I would say two things. It is worth clarifying—apologies if I gave the impression otherwise—that it is for the upper tribunal to determine compensation cases, but I reassure the Opposition that when it comes to inspectors and their role in the CPO process, they have the necessary skillset. I will provide further reassurance on that point.
To the hon. Gentleman’s point on the Espoo convention, although I do not want to answer for the shadow Minister, it is right that, while the convention is not EU-derived, the new system of EORs will replace the EU-derived processes of EIAs and SEAs. I think that is the point that the shadow Minister was making. We want to ensure that the new system that replaces the EU-derived existing assessment regime is compatible with our international obligations, and nothing more.
Question put and agreed to.
Clause 93 accordingly ordered to stand part of the Bill.
Planning and Infrastructure Bill (Twelfth sitting)
Tuesday 20th May 2025
(2 days, 16 hours ago)
Public Bill CommitteesPlanning and Infrastructure Bill 2024-26 View all Planning and Infrastructure Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 20 May 2025 - (20 May 2025)
The Committee divided: - Ayes: 9 / Noes: 5 - Question accordingly agreed to.
The Committee divided: - Ayes: 9 / Noes: 5 - Question accordingly agreed to.
The Committee divided: - Ayes: 3 / Noes: 8 - Question accordingly negatived.
The Committee divided: - Ayes: 3 / Noes: 8 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 7 - Question accordingly negatived.
The Chair
Following a request, Members may now remove jackets if they are finding it oppressively warm.
We now come to the new clauses. I remind Committee members that Government new clauses are considered first, with other new clauses then being considered in numerical order, as listed on the amendment paper and the selection and grouping paper. Some new clauses may be grouped with others for the purpose of debate and some new clauses have already been debated during the Committee’s consideration of the Bill. When a new clause has previously been debated, it cannot be debated further when it is reached; Committee members should let me know if they wish to press it to a vote. We start with Government new clause 39, which was debated with clause 44.
New Clause 39
Surcharge on planning fees
“In the Town and Country Planning Act 1990, after section 303ZZA (inserted by section 44) insert—
‘303ZZB Surcharge on planning fees
(1) The Secretary of State may by regulations make provision for a surcharge to be imposed on a fee or charge paid—
(a) to a local planning authority in England under section 303(1) or (2),
(b) to the Mayor of London or a specified person under section 303(1ZA), or
(c) to the Secretary of State under section 303(1A), (2), (3) or (4A).
(2) Where regulations under subsection (1) provide for a surcharge to be imposed on a fee or charge paid to a person other than the Secretary of State, that person must pay to the Secretary of State the amount they receive from any surcharges—
(a) subject to such deductions, and
(b) at the times and in the manner,
as set out in regulations under subsection (1).
(3) Regulations under subsection (1) may—
(a) specify the level of the surcharge as a percentage of the level of a fee or charge;
(b) make different provision for different purposes, including setting different levels of surcharge for different fees, charges, cases or circumstances.
(4) Regulations under subsection (1) may provide that where the level of the fee or charge has been set by—
(a) a local planning authority under section 303(5A), or
(b) the Mayor of London or a specified person under section 303(5B),
the surcharge may be set as a percentage of the fee or charge that would be payable had the level of the fee or charge not been so set.
(5) The Secretary of State must list in regulations the persons whose relevant costs the surcharge is intended to cover (“listed persons”).
(6) In setting the level of the surcharge, the Secretary of State must have regard to the relevant costs of the listed persons, and must secure that, taking one financial year with another, the income from the surcharge does not exceed the relevant costs of the listed persons.
(7) In subsections (5) and (6), “relevant costs” means the costs of providing advice, information or assistance (including the provision of a response to a consultation) in connection with—
(a) applications,
(b) proposed applications, or
(c) proposals for a permission, approval or consent,
that are made under or for the purposes of the planning Acts and that relate to land in England.
(8) Regulations under subsection (1) may set the surcharge at a level that exceeds the costs of listed persons of providing advice, information or assistance in connection with the application, proposed application or proposal in respect of which the surcharge is imposed.
(9) Paragraphs (a) to (f) of section 303(5) apply to regulations under this section as they apply to regulations under subsection (1), save that references to a fee or charge are to be read as references to the surcharge.
(10) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.’”.—(Matthew Pennycook.)
The effect of this new clause is to allow the Secretary of State to make regulations imposing a surcharge on planning application fees. The surcharge must, if imposed, be set by reference to the costs incurred by bodies, listed in regulations, which provide advice in the planning application process, including by way of consultation responses.
Brought up, read the First time and Second time, and added to the Bill.
New Clause 42
Planning Act 2008: right to enter and survey land
“(1) Section 53 of the Planning Act 2008 (rights of entry) is amended as set out in subsections (2) to (7).
(2) In subsection (1), for “Any person duly authorised in writing by the Secretary of State” substitute “An authorised person”.
(3) After subsection (1A) insert—
“(1B) In subsection (1) “authorised person” means a person who is authorised in writing to exercise the power in that subsection on behalf of—
(a) a person who has made an application for an order granting development consent that has been accepted by the Secretary of State,
(b) a person who proposes to make an application for an order granting development consent, or
(c) a person who has been granted the benefit of an order granting development consent of a kind specified in subsection (1)(c).”
(4) Omit subsection (2).
(5) In subsection (4)—
(a) in the words before paragraph (a), for “authorised under subsection (1) to enter any land” substitute “acting in the exercise of a power of entry onto any land conferred under subsection (1)”;
(b) insert “and” at the end of paragraph (a);
(c) in paragraph (b)—
(i) for “any land which is occupied” substitute “the land”;
(ii) for “the occupier” substitute “every owner or occupier of the land”;
(d) omit “and” at the end of paragraph (b);
(e) omit paragraph (c).
(6) After subsection (4) insert—
“(4A) Notice given in accordance with subsection (4)(b) must include prescribed information.
(4B) A justice of the peace may issue a warrant authorising a person to use force in the exercise of the power conferred under subsection (1) if satisfied—
(a) that another person has prevented or is likely to prevent the exercise of that power, and
(b) that it is reasonable to use force in the exercise of that power.
(4C) The force that may be authorised by a warrant is limited to that which is reasonably necessary.
(4D) A warrant authorising the person to use force must specify the number of occasions on which the person can rely on the warrant when entering land.
(4E) The number specified must be the number which the justice of the peace considers appropriate to achieve the purpose for which the entry is required.
(4F) Any evidence in proceedings for a warrant must be given on oath.”
(7) After subsection (8) insert—
“(8A) Section 4 of the Land Compensation Act 1961 (costs) applies to the determination of a question referred under subsection (8) as it applies to the determination of a question under section 1 of that Act, but as if references to the acquiring authority were references to the person from whom compensation is claimed.”
(8) In paragraph 7 of Schedule 12 to the Planning Act 2008 (application of Act to Scotland: modifications of section 53)—
(a) after paragraph (za) insert—
“(zb) in subsections (4B) and (4E), the references to a justice of the peace were references to a sheriff or summary sheriff,”;
(b) omit “and” at the end of paragraph (b);
(c) after paragraph (b) insert—
“(ba) in subsection (8A)—
(i) the reference to section 4 of the Land Compensation Act 1961 were a reference to sections 9 and 11 of the Land Compensation (Scotland) Act 1963, and
(ii) the reference to section 1 of the Land Compensation Act 1961 were a reference to section 8 of the Land Compensation (Scotland) Act 1963, and”.
(9) In the Localism Act 2011—
(a) omit section 136(4);
(b) in paragraph 12 of Schedule 13—
(i) in sub-paragraph (2), omit “and (2)”;
(ii) omit sub-paragraph (3).”.—(Matthew Pennycook.)
This clause amends existing rights to enter and survey land in connection with development consent orders, to: (1) remove the requirement for authorisation by the Secretary of State before entry, and (2) allow the use of force if authorised by a warrant issued by a justice of the peace.
Brought up, and read the First time.
The Minister for Housing and Planning (Matthew Pennycook)
I beg to move, That the clause be read a Second time.
At present, we know that it is taking too long for promoters of nationally significant infrastructure projects to prepare applications for development consent that are robust and ready for examination. Part of the reason is the time it is taking for promoters to gain access to the land to carry out surveys to understand its condition and status, to inform their assessments of the project’s environmental impact.
The Government remain committed to ensuring that applicants and landowners reach agreements privately on when land can be accessed and on any compensation necessary as a result of activities carried out by the promoter when surveying the land. However, we appreciate that such agreements cannot be made in every circumstance. While that is regrettable, it should not come at the cost of delaying the delivery of the critical infrastructure that this country needs.
In this new clause, I am making changes to provide a more efficient route to accessing land to carry out surveys for promoters of nationally significant infrastructure projects. These align with rights already available to, and often used by, DCO applicants under the Housing and Planning Act 2016. The changes will give authorisation to promoters to access land on the premise that sufficient notice is given to landowners and occupiers, with regulations to be made requiring the specific information to be contained in that notice.
Should access be unreasonably prevented, promoters will be able to apply to a justice of the peace for a warrant to use force to enter the land and carry out the surveys required. The use of force that may be authorised by a warrant is limited to what is reasonably necessary to exercise the power conferred by the provision. The new clause is an important step change in speeding up the preparation stage of applications for development consent and ultimately the delivery of nationally significant infrastructure projects. It will come into force when the Secretary of State introduces the associated regulations.
Gideon Amos (Taunton and Wellington) (LD)
I have a couple of queries. I understand the spirit of the proposal; when I was involved in this part of the planning regime, almost no applications came forward for the power to enter land because of the elaborate process involved, so I very much understand and welcome the spirit in which these changes are made.
However, I ask the Minister to consider whether there is a risk of going from one extreme to the other. The new clause would grant any person who proposes to make an application the power to enter land. We would be interested to know what provisos will sit around that. Can anybody simply say, “I am going to make an application” and therefore get an order to enter land? Do the Government envisage guidance or regulations on that aspect? Generally, however, we support the clause.
Matthew Pennycook
I appreciate the reasons why the hon. Gentleman has raised those points; I have a couple of points that may provide him with reassurance. The provisions in section 53 will allow authorised persons to carry out surveys required in connection with the preparation of environmental assessments and habitats assessments. The entry powers being sought are for a very specific purpose.
As I said, the Government strongly advocate that applicants and landowners should first reach agreements privately when access is required. The problem that the new clause is trying to address is that that does not always happen. We want to ensure that, when necessary, there is a mechanism for applicants to be able to access land and carry out the requisite surveys.
When exercising the power conferred under section 53(1), authorised persons are required to provide the owner or occupier of the land with at least 14 days’ notice of their entry. Regulations, to come forward in due course, will specify certain information that the notice will contain. That information will include details of the negotiations that have been held regarding the entry, full details of the surveys to be undertaken and the rationale for undertaking them, and evidence that the surveys are required in connection with the NSIP in question.
To the points made by the hon. Gentleman, I say that access is required for specific purposes, notice will have to be given and regulations will be forthcoming that provide further details. In general terms, however, we absolutely want in the first instance for applicants and landowners to be able to reach agreements. We think that this power is required and proportionate for circumstances when that does not take place.
Gideon Amos
Those provisos on the regulations are helpful. They are important because to go on to someone else’s land without their agreement initially is a significant power. We agree with the Minister that it should be used only as a last resort, once all the alternatives set out in the guidance have been explored.
Question put and agreed to.
New clause 42 accordingly read a Second time, and added to the Bill.
New Clause 43
Changes to, and revocation of, development consent orders
“(1) Schedule 6 to the Planning Act 2008 (changes to, and revocation of, orders granting development consent) is amended as set out in subsections (2) to (4).
(2) Omit paragraph 2 (non-material changes to orders granting development consent) and the italic heading before it.
(3) In paragraph 3 (changes to, and revocation of, orders)—
(a) in sub-paragraph (3)(b), omit “or paragraph 2 of this Schedule”;
(b) in sub-paragraph (5A), after “should” insert “, when considered in conjunction with any other changes already made,”.
(4) In paragraph 4 (changes to, and revocation of, orders: supplementary), after sub-paragraph (6) insert—
“(6A) If a development consent order is changed in exercise of the power conferred by paragraph 3(1), the development consent order continues in force.
(6B) If a development consent order is changed or revoked in the exercise of the power conferred by paragraph 3(1), the change or revocation takes effect on—
(a) the date on which the order making the change or revocation is made, or
(b) if the order specifies a date on which the change or revocation takes effect, the specified date.
(6C) Except in a case within sub-paragraph (7), the Secretary of State must publish an order making a change to, or revoking, a development consent order in such manner as the Secretary of State thinks appropriate.”
(5) In section 118 of the Planning Act 2008 (legal challenges)—
(a) omit subsection (5);
(b) in subsection (6)(b), for “notice of the change or revocation” to the end substitute “the order making the change or revocation is published.”
(6) In consequence of the amendment in subsection (2), omit—
(a) paragraph 4(6)(a) of Schedule 8 to the Marine and Coastal Access Act 2009,
(b) paragraph 72(4) to (7) of Schedule 13 to the Localism Act 2011,
(c) section 28(2) of the Infrastructure Act 2015,
(d) paragraph 8(3)(b)(i) of Schedule 7 to the Wales Act 2017, and
(e) section 128 of the Levelling-up and Regeneration Act 2023.” —(Matthew Pennycook.)
This clause amends the Planning Act 2008 concerning changes to, and revocation of, orders granting development consent. The key change is to repeal the procedure for making non-material changes that is currently in paragraph 2 of Schedule 6 to that Act.
Brought up, and read the First time.
Matthew Pennycook
I beg to move, That the clause be read a Second time.
New clause 43 will make the process for post-consent changes to development consent orders more proportionate to the change requested. That will allow greater flexibility than the existing binary process. The current change process takes too long to deliver on the ground, and is putting developers off requesting changes that have the potential to improve design, reduce adverse environmental impacts, better meet community interests, reduce costs and speed up delivery.
The removal of the distinction between material and non-material changes will allow us to design a more proportionate single process for changes, the detail of which will be set out in new regulations. The new system will be commenced by the implementation of updated regulations. As such, there will be no impact on existing DCOs that are considering change applications in the immediate term, while the Government develop the new process alongside industry stakeholders. Transitional provisions will be included in the revised regulations to ensure an efficient transition to the new system.
The measure will support the Government’s growth and clean energy missions, giving certainty to developers, reducing cost risk and supporting faster decisions. It will ensure that we can deliver the critical infrastructure the country needs in the best form. I am grateful to the expert input provided by stakeholders through feedback on the limitations of the existing change process. Officials in my Department will continue to work with stakeholders and practitioners to refine the new process, and to ensure it delivers efficiencies and better supports the delivery of infrastructure across the country.
Question put and agreed to.
New clause 42 accordingly read a Second time, and added to the Bill.
New Clause 44
Applications for development consent: removal of certain pre-application requirements
“Omit the following sections of the Planning Act 2008—
(a) section 42 (duty to consult);
(b) section 43 (local authorities for purposes of section 42(1)(b));
(c) section 44 (categories for purposes of section 42(1)(d));
(d) section 45 (timetable for consultation under section 42);
(e) section 47 (duty to consult local community);
(f) section 49 (duty to take account of responses to consultation and publicity).”—(Matthew Pennycook.)
This new clause omits sections of the Planning Act 2008 which currently require a person who proposes to apply for development consent to consult particular people about the proposed application, including prescribed bodies, local authorities, the local community and persons with an interest in the land in question.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Ellie Chowns (North Herefordshire) (Green)
I beg to move, That the clause be read a Second time.
The Chair
With this it will be convenient to discuss the following:
New clause 15—Requirement to undertake planned affordable housing construction—
“(1) Where an application to develop affordable housing has been granted, no amendment to the amount of affordable housing to be developed may be made if the reasons for the amendment include—
(a) the affordability to the applicant; or
(b) that providing such affordable housing would make the development unprofitable for the applicant.
(2) This section applies where the provision of affordable housing forms the whole of or a part of the proposed development.
(3) For the purposes of this section “develop” has the meaning given by section 336 of the Town and Country Planning Act 1990.”
This amendment would mean that, where a developer has committed in their initial application to providing a certain number of affordable homes, they would be prohibited from lowering that provision based on affordability or profitability.
New clause 25—Requirement to undertake planned affordable housing construction (No. 2)—
“Where an application proposes—
(a) to develop more than 10 houses, and
(b) that at least 20% of the houses to be developed will be social housing,
no amendment to the amount of social housing to be developed may be made if the amendment would reduce the amount of social housing below 20% of the houses to be developed on the grounds of viability to the applicant.”
This new clause would prevent developers from seeking to reduce commitments to provide social housing on the grounds of viability.
New clause 55—Transfer of land to local authority following expiry of planning permission—
“In section 91 of the Town and Country Planning Act 1990 (general condition limiting duration of planning permission), after subsection (3) insert—
“(3ZZA) Subject to subsection (4), where a development includes the construction of 100 or more houses and has not begun within the applicable period, ownership of the land on which such development was permitted transfers to the relevant local authority on the expiration of the applicable period.””
This new clause would mean that, where permission for a development of 100 homes or more is not used within the applicable period, ownership of the land to which the permission applies passes to the relevant local authority.
New clause 60—Thresholds for affordable housing provision—
“Where an application proposes or is required to provide affordable housing, no amendment to the amount of affordable housing to be developed may be made if the amendment would result in the amount of affordable housing to be developed failing to exceed the higher of—
(a) the relevant authority’s affordable housing threshold, or
(b) twenty per cent of the total amount of housing provided in the development.”
This new clause would place lower limits on the amount of affordable housing developments which intend to provide such housing must provide.
New clause 61—Additional business rates for developers not completing approved development—
“(1) The Secretary of State must, within six months of the passing of this Act, hold a public consultation on providing local authorities who exercise the functions of local planning authorities with the power to levy additional business rates on—
(a) land owners, and
(b) developers
who fail to complete the development of projects for which permission has been granted within a reasonable period.
(2) The Secretary of State must, within 18 months of the conclusion of the public consultation, lay before both Houses of Parliament—
(a) a report on the findings of the consultation, and
(b) a statement setting out the Secretary of State’s response to those findings.”
New clause 76—No planning permission to be granted in cases of intentional unauthorised development—
“(1) A local planning authority may not grant consent for development where there has been intentional unauthorised development in respect of the land or properties which are to be subject to that development.
(2) For the purposes of this section, “intentional unauthorised development”—
(a) includes any development of land undertaken in advance of obtaining planning permission;
(b) does not include any unintentional, minor or trivial works undertaken without having obtained the relevant permission.
(3) Where works under subsection (2)(b) are undertaken, the local planning authority may require relevant permissions to be obtained retrospectively.”
New clause 82—Duty to complete development of local infrastructure—
“(1) This section applies where—
(a) a Development Consent Order is made providing for, or
(b) a Strategic Development Scheme includes provision for,
the development of local infrastructure.
(2) Where subsection (1) applies, the developer must deliver the relevant local infrastructure in full.
(3) For the purposes of this section, “local infrastructure” has such meaning as the Secretary of State may specify, but must include—
(a) schools,
(b) nurseries, and
(c) General Practice clinics.
(4) A duty under this section may be disapplied [by whom] with the consent of the relevant local planning authority.”
This new clause aims to ensure that commitments to provide local infrastructure such as schools and GP clinics, approved as part of a development, are permanent and legally binding.
New clause 83—Development of land for the public benefit—
“(1) This section applies where—
(a) a developer has entered into an obligation under section 106 of the Town and Country Planning Act 1990 which requires the development of local community infrastructure; and
(b) such development—
(i) has not been completed, and it is not intended or anticipated that the development will be completed; or
(ii) has been subject to a change of circumstance which means that it will not or cannot be used for its intended purpose.
(2) Where this section applies—
(a) the relevant land remains under the ownership of the local planning authority;
(b) the local planning authority may only develop or permit the development of the land for the purposes of providing a community asset;
(c) the local planning authority must, when proposing to develop the land under subsection (2)(b), must consult the local community before commencing development or granting permission for any development.
(3) For the purposes of this section—
“local community infrastructure” means a development for the benefit of the local community, including schools, nurseries, and medical centres.
“community asset” means—
(a) a public park;
(b) a public leisure facility;
(c) social housing;
(d) such other assets as the local planning authority may specify, provided that their development is to meet the needs of the local community.”
This new clause provides that land designated development as community infrastructure under a S106 agreement will not be returned to a developer to use for other purposes in the event that the original purpose is not fulfilled. It provides instead that land would remain under the control of the local planning authority for development as a community asset.
Ellie Chowns
New clause 1 was tabled by the hon. Member for North East Hertfordshire (Chris Hinchliff), and I remind colleagues that I am the Member for North Herefordshire—always a cause for confusion. I will also speak to six other new clauses, three of which are intended to dissuade developers from engaging in land banking, and three to ensure that affordable housing targets are met.
New clause 1 would give the planning authority the power to decline future planning applications from a developer that had failed to use, or at least to make sufficient progress on, planning permission that they had already been given. This is designed to stop the practice whereby developers purchase land, get planning permission on it and do nothing with it. I think we all agree, on both sides of the Committee, that we need to expedite the building of affordable housing, so this is a proportionate and clear measure to support that. It relates to new clause 55, which was tabled by the hon. Member for Taunton and Wellington. If such land is not built on, the land should transfer to the local authority, so that it can get on with doing the job instead.
New clause 61, which was also tabled by the hon. Member for North East Hertfordshire, suggests extending business rates for developers that do not build. Each new clause is designed to prevent the practice of land banking, to encourage developers to get on and build when they have been given planning permission.
Paul Holmes (Hamble Valley) (Con)
I completely understand why the new clause has been tabled, and we support the premise behind it, but can I ask the hon. Lady for clarification? She may not know, and that is perfectly acceptable. Say an application went in for a nursing home, but the business went bust before the initial build out was delivered. If the developer wanted to change the application to allow it to build a block of flats, how would the new clause prevent that from happening? It is a genuine question, and I do not know what the answer is.
Ellie Chowns
I thank the hon. Gentleman for his genuine question. He highlights a case that arguably represents complexities that the Government employ lots of lawyers to fix. I do not think it would prevent a new clause such as this from progressing. The intention is to prevent land banking, and if lawyers need to tweak the language a little bit, so be it.
I will move on briefly to new clauses 15, 25 and 60, which are all about ensuring that affordable housing is actually built. New clause 60 would set a lower bound on the amount of affordable housing that was due to be constructed. New clauses 15 and 25 are intended to ensure that the affordable housing commitments that developers make in their initial applications are not subsequently chipped away at or eroded by arguments about viability.
Fundamentally, if there are issues around viability, the Government and local authorities should prioritise the building of affordable housing, not the safeguarding of developer profits. The new clauses are therefore intended to ensure that when developers commit during the planning process to building affordable houses, they stick to those commitments. I commend the new clauses to the Committee, and I look forward to the Minister’s response.
Gideon Amos
I rise to say a few words about new clause 1, but I will principally speak about our new clause 55, which is a mechanism to incentivise the building of housing developments that have lain unbuilt and undeveloped for three years.
On new clause 1, I am very sympathetic to the proposal made by the hon. Members for North Herefordshire and for North East Hertfordshire—we are only missing Hampshire—but, frankly, we prefer our approach. There is a long-standing principle in planning law that the person of the applicant is not a relevant consideration, and by and large we wish to stand by that. There is scope for the new clause to be used to prejudice particular applicants.
There is also a practical consideration. Land changes hands very quickly and, whoever owns it, different applicants can make applications. I am reminded of the famous case in Oxford of university students applying for a nuclear power station on Christ Church meadow, because a person can apply for anything on any land, whether they own it or not. In fact, the Town and Country Planning Association applied for permission for an airport on Maplin Sands, even though it was probably not going to be able to build it. Those bizarre examples demonstrate that the person of the applicant is not a relevant consideration.
Under new clause 1, a different applicant with a different name or a different agent of the same landowner could immediately come forward, so I have practical concerns about it. Our approach is to introduce a “use it or lose it” principle into the planning system. Specifically, where a development of 100 homes or more has been granted permission but not started within the applicable period—usually three years—the land will transfer to the relevant local authority. We expect that in those circumstances, the usual provisions of the Land Compensation Acts and the principles of fairness in compulsory acquisition, which I referred to in a previous debate, would apply.
We accept the principle that developers and house builders need a pipeline—a plan for their land—but three years is a significant amount of time. The recent moves to encourage the build-out of homes that have not been built have not succeeded. We have had a reduction from five years to three years in the lifespan of planning permissions, but there has not been a significant change in the build-out rate, so we need significant measures if we are to make these major schemes happen.
This is not about penalising people; it is about dealing with an issue that is clearly undermining our ability to tackle the housing crisis. Across the country, there are permissions for 1.5 million new homes that have not been built—13,000 in my authority area of Somerset alone. Those homes could house thousands of families. Research from TerraQuest, which operates the planning portal—not a particularly radical or out-there organisation —shows that a third of all homes given planning permission since 2015 have not been built. Ten years on, that shows that unbuilt permissions are an enduring problem that needs to be tackled. If all those permissions had been built out, the Government would have hit their annual 300,000 homes target in eight out of the last 10 years, and yet the approach so far focuses almost entirely on allocating more and more permissions in the hope that that will result in more homes being built.
There is no lack of planning permissions; the problem is that developers are not building out the ones they already have, because the current system does not penalise delay. Two big things could be done to improve housing supply: funding social housing and funding infrastructure. If those things were funded in a range of areas around the country, there would be almost unlimited build-out rates on stalled sites.
Developers clearly, and I think reasonably and rationally, will only build out at a rate that sustains the price of their product and their viability. They have fiduciary duties to their shareholders, and they need to maintain the viability of their companies. So they will not build out at a rate significant enough to flood the local market with housing and depress the price. We cannot blame them for wanting to make a profit—that is what we expect them to do—but we need to fund social housing publicly, as it was funded in the past, to get out of that bind. That is why I believe we need a stronger lever than we currently have.
Paul Holmes
It is a pleasure, as ever, to serve under your chairmanship, Ms Jardine. I would like to speak to new clause 76, which is in my name.
This new clause seeks to probe the Minister’s thoughts about the success of local authorities in tackling and challenging the unauthorised development that has gone on. As he will know, the last Government made intentional unauthorised development a material consideration, meaning that planning permission could be refused, and there is a presumption that it should be refused, when development has taken place without consent.
I think it is safe to say that we do not think—many of us see this in our constituencies—that that is being enforced uniformly. The shadow Secretary of State, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), has an open case at the moment, and I am sure all of us, as elected MPs, have had such cases in the past. There is also an issue with unauthorised encampments. The new clause goes a step further by saying that if development has taken place without authorisation, the planning authority should not grant consent. This is a probing amendment because such provisions already exist, but there are many examples across the country of enforcement not taking place.
New clause 76 requires that no planning permission is to be granted in cases of intentional unauthorised development. It would provide a power to the local planning authority not to grant consent for development
“where there has been intentional unauthorised development in respect of the land or properties which are to be subject to that development.”
It gives further detail about the meaning of “intentional unauthorised development”, which
“(a) includes any development of land undertaken in advance of obtaining planning permission”,
but
“(b) does not include any unintentional, minor or trivial works undertaken without having obtained the relevant permission.”
We have put in paragraph (b) to take account of householders who have undertaken small modifications—for instance, small extensions, walls or garden sheds—that in certain circumstances would need planning permission. We do not want to persecute or make the law come down hard on those who have made a genuine mistake. This is about larger unauthorised development. The reason for tabling the new clause is that we think the Bill should go further in restricting unauthorised development, and that we want local planning authorities to be able to enforce the powers they have through the legislative changes made by the last Government.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Does my hon. Friend agree that, particularly in the context of our earlier debate about hope value, it is important that this issue is addressed? For law-abiding citizens, nothing is more frustrating than someone carrying out an unauthorised development, potentially on a site in the green belt, as we have seen on a number of occasions, and then being able to regularise that by obtaining retrospective planning permission, when, had they applied lawfully to begin with, it would have been refused. That is an injustice in the planning system that needs to be addressed.
Paul Holmes
My hon. Friend is right; I think that we have all seen that happen as Members of Parliament. It makes a mockery of the planning system when people—they know exactly what they are doing—retrospectively apply for permission and still reap the benefits. There was an example of this in my old constituency that involved removing trees that had tree preservation orders, in order to build on some land. Doing so destroyed that area of land, and it went completely against what should have happened. When the developer went to the local authority, it retrospectively granted planning permission, and the local villagers were outraged.
My hon. Friend is right: the new clause is meant to tackle those who know how to play the system. However, if someone has made unintentional changes to a house that could be covered under permitted development rights, but may go slightly beyond them, we would give local planning authorities the jurisdiction and authority to use their own minds in such cases.
I hope that the Minister understands why we are trying to probe him to see whether he can strengthen the Bill in relation to unauthorised development. He may have to write to me after the Committee—I am sorry to the officials for asking for another letter—about whether the last Government’s measures to give local authorities that power has worked and, if not, how we could work together to ensure that unauthorised development is stopped. We do not want to stop developments, but we think that there needs to be fairness in the planning system. People, who may not be well off, who want to make a planning application for their own home often find it a difficult experience when, just down the road, people are doing it willy-nilly whenever they want to. I look forward to clarification from the Minister. If he needs to write to me, that is absolutely fine.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
It is a pleasure to serve under your chairship again, Ms Jardine. I rise to speak first to new clause 1, which seems to me, as someone who has worked closely with developers, ill thought out. It does not address the need to build more social and affordable homes.
Permissions that are granted, particularly on brownfield sites, often contain any number of conditions that are extremely difficult for developers to achieve—discharging conditions around environmental remediation and, for example, looking after bats or newts, which are common where I practise. There is also a lack of local authority staff competent to deal with section 106 agreements. Permissions are often granted to developers before they own the land, and there may be suitable tax reasons why people do not wish to sell the land until the following tax year. It is easy for those things to stretch over way more than three years, and sometimes up to five years. I am in favour of building more social homes, but the new clause would not achieve that objective. It also does not take into account the massive shortage of workers in the construction sector, the skills that we need or the shortage of materials, which has become even more acute in the past couple of years.
I also want to talk about new clause 76. The hon. Member for Hamble Valley has entertained us for most of the day with minor matters, but his new clause would have an effect that he has perhaps not thought about. The majority of unauthorised planning that I saw in my practice was carried out by farmers who were not able to make enough money from farming their land, so very often diversified their large warehouse-type structures and started using them for small businesses—perhaps renting them out to local engineering firms and so on. After a period of 10 years, somebody would complain in the local village and they would then apply for an authorised use certificate, and nine times out of 10, it would be granted.
The impact of new clause 76—that unauthorised change of use—would prevent those people from developing new homes on their site or opening up more opportunities for new businesses. It needs more thought and attention, because the very people who would be impacted are those who the Opposition say that they stand up for. Very often, they will be farmers who are looking to diversify their property.
Olly Glover (Didcot and Wantage) (LD)
It is a pleasure to serve under your chairmanship this afternoon, Ms Jardine. I wish to speak to new clause 25, which would, for developments of more than 10 houses, require that where 20% of those houses are to be developed for social housing, developers would not be able to reduce that amount below 20% over the fullness of time, as often happens today. We all seem to support the need for more social housing, but we have debated at length in Committee how best we get there.
In the interest of brevity, and conscious that we have more new clauses coming than the entire Dead Sea scrolls, I will keep my remarks concise. We in the Liberal Democrats feel that new clause 25 is necessary to hold developers account to that 20% quota for social housing, rather than being able to fritter it away. It relates to points that we previously made, that it would seem that without more regulation, market forces alone are not succeeding in delivering the social housing that we all recognise we need.
Matthew Pennycook
I appreciate hon. Members speaking to these new clauses. I recognise the worthy intentions that sit behind many of them. The Government certainly recognise the challenges of many of the issues that they touch on. It will not surprise Members that the Government will not be able to accept them, but I hope I can set out in some detail why that is the case.
Let me first deal with new clauses 1, 55 and 61, all of which relate in some way to build-out. All seek to improve the speed of build-out of developments by giving local planning authorities greater control and power where developments are not built out fast enough. New clause 1 seeks to introduce a power to decline applications based on outcomes of previous grants of permission. New clause 55 seeks to introduce a new mechanism for developments of 100 houses or more where, if permission is not used within an applicable period, the ownership of the land would pass to the relevant local authority.
I want to make clear to the hon. Member for Taunton and Wellington that the Government agree with the objective of improving the build-out rate of residential development. We want to see homes built out faster where they have consent, and I very much recognise—I say this as a constituency MP, as well as a Minister—the frustrations that stalled or delayed sites can cause to communities, particularly to people in communities who have gone through the process of putting in a view on an application. They have an application that they want to see come forward, and then the site does not develop.
The Government expect developers to do all that they can to deliver, but we do not think these new clauses are necessary to achieve that. In the case of new clause 55, which effectively involves the transfer of land to a local authority without compensation if planning permission is not commenced, we feel that would be disproportionate, not compatible with the European convention on human rights and would have a chilling effect on development, as it would create risks for developers that their planning permissions may not be implemented.
Instead, we are introducing new requirements for statutory build-out reporting by implementing the provisions in the Levelling-up and Regeneration Act 2023 on commencement notices and development progress reports. That will provide local planning authorities and communities with greater transparency about the rate of build-out of developments and any delays that may occur.
Nesil Caliskan (Barking) (Lab)
Let me emphasise the point around viability and the impact of a precarious economic situation on developers’ ability to build. Does the Minister agree that the challenges for the private sector that he has set out also apply to local authorities? In estate renewal in London, for example, many have had to relook at the viability of that and have seen delays for a number of years because markets have changed and the land analysis has altered. It is a changing picture depending on the moment in time, and one that it is inextricably linked to the economic picture at the time.
Matthew Pennycook
My hon. Friend is right. If we are having a mature conversation about this, we have to recognise that economic circumstances can change and that the costs that developers are having to deal with—build material costs have increased significantly, particularly in London—are factors they do have to weigh in their judgments. On the other side of the coin, it is important, in strengthening the section 106 system, that we are ensuring local authorities can negotiate robustly on those agreements and that we hold developers to the commitments that they make. The Government’s intention is to do both.
Matthew Pennycook
I will, but I do not want to lead us down the path of a long debate on viability.
Lewis Cocking
I thank the Minister for giving way. He is talking about changes in viability. What does he say to councils that are in the position of having granted planning permission, had a viability assessment and agreed a 106, and the developer comes back a year or two later and says that they cannot do it and will have to put in a new planning application, have a new viability assessment and a new 106, but because the council has determined a planned application on that site, if it went to the planning inspector, there would be a lower bar for that development to get over? That is because the council has already accepted the principle of development on that site under the premise of one section 106 negotiation.
Does the Minister think that, on the second go, the developer should have to start from the beginning, have the same principles to get the development off the ground, and that the same higher bar should apply? At the end of the day it is the community that lose out from the community obligations that the developer is trying to get out of.
Matthew Pennycook
The hon. Member tempts me into commenting on hypotheticals. I will instead say the following. There are two things happening here. We have to be aware of the ability for some existing mechanisms—section 73 applications are a good example—to be gamed in terms of viability to drive down the amount of public gain. I am aware of that, and I have been very candid about it. On the other hand, and correspondingly, if a permission such as the one he hypothetically mentioned is in place, I think that is testament to why it is so important that we bring forward measures on build-out transparency and have the powers to be able to say to developers, as the Government are saying to all developers, “If you’ve got a consent, then get on and build.”
The Government are making a variety of reforms to the planning system, which in any number of ways will provide for a more rules-based system, more certainty and will drive down development costs. We are firming up planning policy guidance and expectations. We are making it clearer and easier for developers to put in an application and we should reduce costs as well. Correspondingly, we can ask for more. We are bringing forward measures in fairly short order on build-out and we will turn on the LURA provisions that I have mentioned. On that basis, I ask for the new clauses to be withdrawn.
New clause 76, tabled by the shadow Minister, the hon. Member for Hamble Valley, seeks to prevent those who have deliberately undertaken unauthorised development from obtaining planning permission retrospectively. The Government do not condone unauthorised development and are clear that anyone seeking to undertake development should first obtain planning permission where it is required. I therefore very much appreciate the sentiment behind his new clause. I recall debating with a shadow Secretary of State this particular matter in relation to Gypsy and Traveller camps, and I appreciate that across the House there is concern about the use of unauthorised developments.
However, the Government’s view is that there may be circumstances—I am happy to set this out in writing to the shadow Minister—in which unauthorised development, even if it is intentional, may be acceptable in planning terms or may be made so by the imposition of planning conditions. I say that only to make the point that we believe that there is a need for some pragmatism here and that such developments should be considered by the local planning authority. It is already the case that intentional unauthorised development, as he said, is a material consideration. It must be weighed in the balance when determining planning applications and appeals. That approach retains local decision making.
The Government obviously keep this matter under review. I am more than happy to have a conversation with the shadow Minister about the Government’s view as to whether the enforcement powers available to local planning authorities—they have a wide range of powers, with strong penalties for non-compliance—are being used, and if not, why not. I am also more than happy to share with him our understanding of how local planning authorities and inspectors are treating unauthorised development as a material consideration, as they are now required to do. I hope that, on that basis, I have provided him with some reassurance.
Paul Holmes
I appreciate the Minister’s being so open and genuinely—I wouldn’t say I didn’t believe him before—promising to go away and look at this issue. We would like to take him up on that; we will not press our new clause today, but there are conversations to be had further down the line on this topic. Will he just confirm whether his Department holds any statistics on how many unauthorised developments we are talking about? Is there is a reporting structure for local authorities, which may be held by the Planning Inspectorate? We would like to know how his Department is monitoring the number of unauthorised developments that are using the powers that were given to local authorities, if that makes sense.
Matthew Pennycook
What I can commit to—I feel the glares from my officials on me now—is this. If we have the information, I am more than happy to have a conversation with the shadow Minister to give him a sense of, across the country, how local authorities are using their existing enforcement powers and the extent to which, although I think this will be difficult information for Government to track, local planning authorities and inspectors are relying on unauthorised development as a material consideration. I am thinking, for example, of inspectors allowing things on appeal that are unauthorised. If we have that information, I am more than happy to share it and to have that conversation with the hon. Gentleman.
Ellie Chowns
I thank all those who have contributed and the Minister for his very thoughtful responses. On new clause 1, I note the Minister’s assurances that existing mechanisms will be going some way, at least, to addressing the concerns I have raised about build-out, so I will not push it to a vote at this point. I will not push the new clauses on affordability to a vote at this point, either, because I will be speaking to new clause 3, which is specifically on this issue, but I will emphasise that when we are thinking about viability, we must remember that we have a huge crisis of a lack of affordable housing in this country. We do not have a crisis in developer profits—not at all.
I would like to cite to the Committee a paragraph from a report that I have just checked out:
“Since 2014, the largest housebuilders, and in particular the three largest housebuilders by volume (Taylor Wimpey, Barratt and Persimmon…) have consistently reported supernormal levels of profitability, with gross profit margins reaching 32% and never falling below 17%”.
That is the reality of the crisis of excess developer profits that we face in the current housing market, and it is from independent academics. In that context, I think that it is incumbent on the Government and everybody to do everything possible to ensure that viability tests are not used as an excuse by developers to wriggle out of commitments to providing affordable housing. I am genuinely concerned that the provisions in existing law and in this Bill will still leave a huge viability loophole for developers. If in the next 10 years we continue to have those levels of supernormal profits on the part of developers, this Government will have absolutely failed all those who are struggling in the face of the housing crisis.
Matthew Pennycook
I think some of this will become evident in the fullness of time. There has been an implicit criticism of the Government at several points in Committee that we are entirely reliant on a market-led approach, and are happy with an entirely developer-led, market-led approach. That is not the case. We think that targeted reforms to the planning system are necessary, but we also absolutely believe that reform of our broken house building model is required. I have said on many occasions that we are overly reliant on a speculative development model that produces bad outcomes. Hon. Members across the Committee will see before too long other measures that the Government are bringing forward to both transform and disrupt that market in ways that are beneficial.
Matthew Pennycook
Well, the market does need to be disrupted, in the particular sense that we need new entrants coming forward, and small and medium-sized enterprises and community led-housing back in the game.
The hon. Member for Taunton and Wellington said, and I think he is right, that developers have a business model, particularly volume builders. Some are changing their business model and we would encourage change to those business models, but there is a particular model that relies on very high margins. I know the academic study that the hon. Member for North Herefordshire cited. We must and will reduce our reliance on that. We also must be careful about weighing in on viability in a way that would just stop house building coming forward in lots of cases, because that would ultimately help nobody.
A final point that I think is pertinent to this debate: I always find the nimby and yimby debate incredibly reductive, but I think that some who oppose development on the basis that they only prioritise social and affordable housing discount the fact that building homes of any tenure in localities assists people trying to access social and affordable rent. It all helps and it need not be one or the other.
Rachel Taylor
I think what comes across in some of the proposed new clauses, which is not the case in the Bill itself, is a punitive scheme for developers. What we need to do is work in partnership with smaller developers and community developers in particular, so that we can build out any number of different types of homes—whether they are apartments, bungalows, or small starter homes. All of those are important in the market and will help young people to feel that they can get on the housing ladder and not have to rely on living in their parents’ spare room until they are in their mid-30s.
Matthew Pennycook
That is a good point. To wrap this debate up, I think it is right that the Government seek to take forward planning reform in the way we have, and to streamline the planning process in a way that drops costs on developers where it is appropriate. Equally, we must be robust with developers. We want to put this mechanism in place and ensure that local authorities can negotiate section 106 agreements robustly. Where those agreements are entered into, we expect them to be delivered and we expect sites to be built out. As I say, hon. Members will not have to wait too long to see some of the changes that are not in existing law, but that the Government are bringing forward. On that basis, I hope hon. Members might not press the new clauses.
Ellie Chowns
I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 2
Review of the setting of local plans under the National Planning Policy Framework
“(1) The Secretary of State must, within 6 months of the passing of this Act, review the National Planning Policy Framework with regard to the setting of local plans.
(2) The review must consider in particular replacing the existing “call for sites” process with a requirement for local planning authorities to identify sites within their areas which are necessary to meet—
(a) local housing targets, and
(b) the United Nations’ 17 Sustainable Development Goals.” —(Ellie Chowns.)
This new clause would require the Secretary of State to review the setting of local plans with a view to replacing the existing “call for sites” process with a requirement for local planning authorities to identify sites which meet housing targets and the UN’s Sustainable Development Goals.
Brought up, and read the First time.
Ellie Chowns
I beg to move, That the clause be read a Second time.
I am reflecting on the comments that the Minister just made on the broken speculative model of development that we are currently stuck with. The new clause actually fits with amendment 2 to clause 91, which I spoke to earlier. Essentially, the new clause is asking the Government to review the way that local plans are set under the national planning policy framework, and specifically, to consider replacing the existing “call for sites” process with a requirement in which the onus is on local planning authorities to identify sites in their areas that are necessary to achieve local housing targets and sustainable development. Currently, under-resourced and underfunded councils are forced to accept whatever ill-suited sites are offered up by developers. The pressure of meeting local housing needs often means that there is pressure to accept the sites that are offered rather than no sites.
The new clause does not force the Government to do anything apart from a review that specifically looks at redressing the power to identify which sites housing should be built on, and putting it much more in the hands of local planning authorities. That way they can take a genuinely strategic approach, rather than being at the mercy of developers’ initiatives, which may not be in the interests of the public.
Matthew Pennycook
New clause 2, which the hon. Lady has just spoken to, was tabled by my hon. Friend the Member for North East Hertfordshire. The purpose of the planning system is clear: to contribute to the achievement of sustainable development. The UN’s sustainable development goals are important to that. It is because of their importance that they are already addressed via existing planning laws, planning policy, guidance and processes.
The objective of contributing to the achievement of sustainable development is being delivered by the existing requirement to prepare local plans under the Planning and Compulsory Purchase Act 2004. The national planning policy framework already contains policy on sustainable development with the presumption in favour of sustainable development at its heart.
National policy includes how to plan for good design, sustainable modes of transport including walking and cycling, an integrated approach to the location of housing, economic uses and the community services and facilities needed. It recognises the importance to health, wellbeing and recreation that open space and green infrastructure provides, and is clear that local plans should seek to meet the identified need and seek opportunities for new provision. It also contains policies on how to achieve healthy, inclusive and safe places, and sets out that the planning system should support the transition to a low-carbon future.
The NPPF is also clear that planning policies and decisions should promote an effective use of land in meeting the need for homes. The framework must be given regard to in preparing the development plan, and is a material consideration in planning decisions. The “call for sites” process ensures early engagement with landowners and land promoters to understand the availability and achievability of land identified to deliver sustainable development. The current process ensures consideration of the economic, environmental and social impacts of proposed sites for development, and how those contribute to a more sustainable future.
The important part here is that the assessment does not in itself determine whether a site should be allocated for development. It is the role of the assessment to provide information on the range of sites that are available to meet the local authority’s requirements, but it is for the local development plan, taken through with consultation with the local community—we definitely want more consultation with communities upstream in the local plan development process—to determine which of the sites in a “call for sites” are the most suitable to meet the requirements.
While I recognise the intentions behind it, the new clause would ultimately undermine the Government priority for extensive coverage of local plans across England, which is the key mechanism that enables sustainable development and housing delivery to take place. Although I understand the spirit of the new clause, the Government oppose it, as these important matters are already being considered and addressed through existing laws, systems, national planning policy and associated guidance—which are obviously kept under review at all times. On that basis, I hope the hon. Lady will withdraw the new clause.
Ellie Chowns
I honestly do not entirely follow the Minister’s argument about this measure potentially replacing the work of local authorities in driving development plans, because that is specifically what the new clause is about. It is about putting more power in the hands of local authorities rather than in the hands of the developers. However, given that we have multiple other new clauses to get to, some of which I am especially keen on, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 3
Housing plans to include quotas for affordable and social housing
“(1) Any national or local plan or strategy which relates to the building or development of housing must include specific quotas for the provision of—
(a) affordable housing, and
(b) social housing.
(2) Where a national or local plan or strategy includes quotas for the provision of affordable and social housing, the plan or strategy must include justification for the quotas.”—(Ellie Chowns.)
This new clause would require national and local housing plans to include, and justify, quotas for the provision of both affordable and social housing.
Brought up, and read the First time.
The Chair
With this it will be convenient to discuss the following:
New clause 8—Local planning authority discretion over affordability of housing—
“(1) The Secretary of State must, within six months of the passing of this Act, provide guidance to local planning authorities on how to define or classify new or prospective developments as affordable housing.
(2) The guidance must make clear that a local planning authority may, while having regard to national or general guidelines, determine what is to be understood to be affordable housing in its area based on local needs and circumstances.”
This new clause would enable local planning authorities to use their discretion to determine whether certain housing is to be “affordable housing”.
New clause 26—Provision of Older Persons Housing and Later Living Homes—
“The Secretary of State must, within 1 year of the passing of this Act—
(a) require 10% of homes delivered through the Affordable Homes Programme to be Older Persons Housing or Later Living Homes, and
(b) provide grant funding to support the capital costs of developing Older Persons Housing and Later Living Homes.”
This new clause would support the capital costs of developing affordable and inclusive housing for older people and support the provision of adequate supply.
New clause 37—Local planning authority powers relating to new towns—
“(1) A local planning authority whose area includes the whole or any part of a new town may—
(a) include any of the area of the new town as land to be developed in any local plan which covers a period between the designation of the new town and the completion of development,
(b) include in the local planning authority’s housing target any houses expected to be provided by or in the new town during the period covered by the local planning authority’s local plan, and
(c) include any housing expected to be provided by or in the new town in any consideration of the local planning authority’s 5 year housing land supply.
(2) A local planning authority whose area includes the whole or more than 2,500 houses of a new town ma—
(a) disregard National Planning Policy Framework guidance relating to the duty on local planning authorities and county councils to cooperate on strategic matters crossing administrative boundaries, and
(b) extend the area designated for the new town through its local plan process.
(3) For the purposes of this section, ‘new town’ means a town developed by a corporation under section 1 of the New Towns Act 1981.”
This new clause would provide local planning authorities with the ability to include new towns in local plans and housing targets, and give planning authorities certain powers with regard to new towns.
New clause 48—Review of method for assessing local housing need—
“(1) The Secretary of State must, within six months of the passing of this Act, review the standard method for assessing local housing need.
(2) A review under this section must consider—
(a) how the method for assessing local housing need should consider different types of property;
(b) basing calculations on price per square metre rather than price per unit.
(3) In conducting a review under this section, the Secretary of State must consult—
(a) local councils; and
(b) any other parties the Secretary of State considers appropriate.
(4) Upon completion of the review, the Secretary of State must—
(a) lay before Parliament a report which summarises the evidence considered in the review and the review’s final conclusions or recommendations;
(b) provide guidance to local planning authorities and other relevant bodies on how they should calculate and consider local housing need.”
New clause 49—New towns to contribute towards housing targets—
“In any national or local plan or strategy which sets targets for the building of new houses, houses built as part of new towns may contribute to the meeting of such targets.”
New clause 50—Local Housing Plans—
“(1) A local planning authority must develop a Local Housing Plan for its area for the purposes of informing its local plan.
(2) A Local Housing Plan must outline the number and type of homes—
(a) required, and
(b) proposed to be built,
in the authority’s area.”
New clause 75—Requirement for 20% of housing to be on small sites—
“(1) The Secretary of State must, within six months of the passing of this Act, issue or update guidance for local planning authorities regarding the identification of sites for housing development.
(2) The guidance must outline a requirement for at least 20% of an authority’s housing requirement to be accommodated on sites no larger than one hectare.”
New clause 92—Housing needs of ageing population—
“Any plan or strategy produced by a local planning authority which proposes the development of housing must include an assessment of the housing needs of an ageing population.”
Ellie Chowns
It continues to be a pleasure to serve under your chairship, Ms Jardine. The new clause was tabled by the hon. Member for North East Hertfordshire, and I give the Minister notice that I am particularly keen on it. It would require any national or local housing plan to include and justify quotas for the provision of affordable and social housing.
To me, the new clause seems like a no-brainer, and a measure that we should already have, given that we have such a huge housing crisis, have had no coherent Government housing strategy over the last decade or more, and have no serious goal to end homelessness or deal with the social housing waiting list or affordability issues. I recognise that the Government are making some efforts in the legislation they are introducing. I am particularly excited by the Minister’s promise of disruptive measures to tackle some of the remaining problems in the housing market.
We absolutely have to build more homes for social rent. In the 10 years between 2014-15 and 2023-24, England built 2.2 million homes. Would anybody like to guess what percentage of them were for social rent? Only 3% of them were for social rent, which is the only tenure that is genuinely affordable to those on the lowest incomes. I recently saw stats about the changes in planning permissions in the last six months: 6% of the permissions granted in that time have been for social rented homes. It is nowhere near enough. We desperately need more homes for social rent.
Paul Holmes
I understand and agree that we need to build more social rented homes, but does the hon. Lady not agree that the figures she gave could be perceived as being slightly simplistic, because they do not take into account the regional variations in where housing lists and social homes are most needed? I accept that social rent made up 3% of the total, and permissions recently increased to 6%, but in areas such as Southampton, London, Basingstoke or big urban centres, the proportion will be dramatically higher.
Ellie Chowns
I would be more than happy to go through spreadsheets with the hon. Member, because I like a nice spreadsheet. Although the figures might be slightly higher in London, I do not think anybody would argue that there is therefore sufficient affordable housing in London, or anywhere close to sufficient.
Ellie Chowns
I am delighted that the hon. Member agrees. We can all agree that there is a crisis in affordable and social housing. Unless we set targets to tackle that at every level of housing planning, we will be guaranteed to fail to create the affordable and social housing we need.
Nesil Caliskan
Does the hon. Member recognise that targets were in place for a number of years, and that in most cases local authorities failed to meet them, not because of a lack of trying, but because market circumstances meant that viability did not work and planning permissions could not get through, and for a variety of other reasons? Targets do not, in and of themselves, drive delivery in the numbers we need in this country.
Ellie Chowns
I recognise that multiple factors drive the delivery of social and affordable housing—and, indeed, the achievement of any targets so to do—but what the hon. Member said is a bit inconsistent, because the Government have just introduced huge new housing targets based on an argument that we have to have targets for particular numbers in particular locations, no matter how well suited or otherwise they might be to the circumstances of the local planning authorities. Members cannot argue that housing targets are really useful at the level of overall numbers but not useful in relation to affordable and social housing, which is the point of crisis.
The Minister said, in his response to a previous new clause that I spoke to, that we need to recognise that building any sort of housing is helpful. I kind of get his point; I think he is trying to make a sort of “trickle up” point—that people can trickle up out of the most affordable housing and into more expensive housing, and that vacates the cheaper housing—but the fundamental problem is that we have nowhere close to enough genuinely affordable housing, by which I mean social rented housing, being built.
This is therefore a very reasonable amendment, simply asking that, at every level of housing plan—local and national—targets are set. It does not say what those targets should be; it just says that each plan should set a target for affordable housing and social housing.
Lewis Cocking
Does the hon. Member not agree that, in most local plans—if not all local plans that come forward; I took one through for Broxbourne when I was leader of the council—we do have targets for affordable and social homes? The reason lots of those do not get built out is because of the issues that we discussed earlier around viability. Just having a target does not necessarily deliver what she and I want to deliver: more social homes. We can have that target, but it is about the viability and the costs that developers try to get out of. That is why they do not get built.
Ellie Chowns
I thank the hon. Member for his point, which is actually exactly the same point that the hon. Member for Barking made, essentially—
Ellie Chowns
Yes—both singing from the same hymn sheet on this. I refer the hon. Member for Broxbourne to the answer that I gave two minutes ago to those comments: I am not saying that just setting a target for social and affordable housing will magic it up, and I am not denying that multiple factors impact on the delivery. In fact, I think the hon. Gentleman might be so gracious as to recognise that, in many of the previous measures—and ones coming up—that I have tabled to the Bill, I have been trying to address some of those issues, for example, in relation to hope value, restrictions on local authorities, and so forth.
I am not saying that the new clause is a magic bullet, and I welcome the fact that many local plans contain targets for affordable and social housing. I certainly do not think that just having the targets will ensure that they are achieved, but if the Government are to be consistent in their own rhetoric, that setting targets is important because it gives people something to aim for, then I very much hope that they will support the setting of targets for affordable homes, and particularly social rented homes, because that is where the crisis is in our housing supply. I look forward to the Minister’s response.
Olly Glover
I rise to speak to new clauses 8, 26 and 92, just to introduce briefly what they do. New clause 8 is about coming up with a more sophisticated definition of what “affordable housing” is, taking into account local needs and circumstances, while new clauses 92 and 26 are about quotas, funding and the assessment of the housing needs of an ageing and older population.
I shall keep my remarks on new clause 8 concise, because the hon. Member for North Herefordshire has made many of the points that I would otherwise have made. I agree with her that there seems to be a bit of cognitive dissonance going on when those on the Government Benches express scepticism about the ability of targets for affordable and social housing to deliver progress, yet are adamant that targets for housing overall will do that. Perhaps the Minister will address that point in his remarks.
The key issue in terms of new clauses 26 and 92 is that the current definition of “affordable housing” is not considered affordable by many organisations. That particularly applies to people of an older age on a low income, who are still subject to many aspects of housing costs. It is not just me who thinks that the current definition of “affordable” is nothing of the sort. Shelter agrees, calling it
“unaffordable for those on average incomes”.
Similarly, Crisis and the Joseph Rowntree Foundation have argued for affordability to be linked to local incomes, not market rates, and the Town and Country Planning Association also recommends local flexibility, stating in its housing guides that the 80% rule does not work in areas of high market distortion. Even the Labour-run Greater London Authority operates its own model, with the Mayor, Sadiq Khan, introducing a new category of “genuinely affordable” rent, which includes social rent, London living rent and shared-ownership schemes, as a way of creating a better benchmark.
As mentioned previously in this Bill Committee, house prices in constituencies such as mine still reflect a distorted market in which housing remains inordinately expensive despite enormous housing growth. Residents would certainly benefit from local authorities’ having the power to set what is meant by affordable housing, taking into account local circumstances on issues such as wages.
We also need to be more detailed and thoughtful about how we go about the issue of our ageing population. This is not just about the older old in care homes and similar facilities; it is also about people becoming old. For example, 40% of homeowners and 60% of renters aged 70 will have moved into their homes since the age of 50. Those homes may suit them when they move in, but they may not suit them as they age and will need to be adaptable. That is something that local authorities and all of us need to consider a lot more.
Equally, 50% of renters aged between 45 and 64 have no savings, and many will struggle to afford their rent in retirement. The Pensions Policy Institute estimates that if current trends continue, the cost of housing benefit for older renters will increase by 40%, or an additional £2 billion per annum.
Thinking more carefully about how we provide for an ageing population, as these new clauses propose, would benefit not just those who are affected by the cost of housing, but the public finances, given the ever-increasing housing benefit bill that we will face if we do not take serious action and change our approach. I look forward to the Minister’s comments.
Paul Holmes
I rise to speak to new clauses 48, 49, 50 and 75, most of which are in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner—I do not know whether he intends to intervene or to speak after me, but he is more than welcome to do so, because he drafted the new clauses and can do them a lot more justice then I can.
These wide-ranging provisions would help strengthen the legislation. We tabled new clause 48 because we want to review the method for assessing local housing need. The current method does not adequately account for the type of home being built. For example, a family home can accommodate more people than a one-bedroom flat, and it should count for more because it goes further towards meeting a local area’s housing need. Under the current methodology, we often end up with the wrong stock being built and with people being displaced or having to move away from long-standing connections in their local area.
New clause 48 states:
“The Secretary of State must, within six months of the passing of this Act, review the standard method for assessing local housing need…A review under this section must consider…how the method for assessing local housing need should consider different types of property”—
as we have indicated, that should be based on demographics and local housing lists—
“basing calculations on price per square metre rather than price per unit…In conducting a review under this section, the Secretary of State must consult…local councils; and…any other parties the Secretary of State considers appropriate.”
David Simmonds
My hon. Friend is making an excellent and eloquent speech—far more excellent and eloquent than my contribution will be. Does he agree that one of the big concerns the Bill needs to address is the sense among some constituents that new housing development is not built for them or their community? We need to make sure that this debate is about homes, and that means we need greater subtlety and nuance in housing plans and the targets we set. It is not simply about delivering units—the dark towers we see in parts of central London, whose units are not available to or occupied by the local community—but about having a housing supply that reflects the needs of a particular place.
Paul Holmes
My hon. Friend is absolutely correct. Who can say the Conservative party is divided when we have a bromance like this? My hon. Friend and I agree with each other all the time. He says that my speech is better than his, which is untrue, but he makes a serious point. The whole point of the Bill, and of our being here, is to ensure that housing is deliverable and accountable, and that it adapts to the will and the needs of local people. We are in Parliament and we stand for election predominantly to make our areas better and to leave the world in a better place, with people feeling better.
In my constituency, we have many four-bed and five-bed family homes. We also have a huge housing waiting list. Those homes cost £250,000 each. Of course, I aspire to being able to afford a house like that myself one day, but we need to ensure that the right housing is being built for people in Eastleigh and Fareham town centres. Often, they are displaced down the road to Southampton and Portsmouth, or to other areas of the country with which they have no connection. That is simply not fair. We tabled the new clause to see, first, whether the Minister agrees with it—I suspect he will do more resisting—and secondly, whether he will try to ascertain how we genuinely improve the method for assessing local housing need.
We had a brief debate about whether housing targets were warranted and whether people think they are good or bad. The Minister knows my position: I think they have been set for a particular reason, but that was a debate on a different clause. We want new towns to contribute towards meeting housing targets. As the Minister knows, new towns do not currently do that and are not included among those that can meet housing needs in local plans. New clause 49, which my hon. Friend the Member for Ruislip, Northwood and Pinner tabled, would change that to include new towns, for several reasons.
First, that would give certainty to constituents that once a local plan had been developed and proposals had gone forward for consultation, they would not be surprised by the Government’s suddenly announcing a new town. The Government are prone to doing that at the moment—I say that neutrally. When that happens, an area seems to have to take much more housing because the new town does not, on paper, contribute to the targets. I believe that, because new towns do not contribute to those targets, they suffer in terms of their services and infrastructure. The new clause would help with fairness in the system and with housing targets and planning. It is not nimbyism—I agree with the Minister that the terms yimby and nimby are reductive. To provide clarity for the consumer, as well as stability for local areas, the Government should make new towns contribute to housing targets.
The Minister should view new clause 50 as productive. If he is worth his mettle, he will see that. Its purpose is to require local authorities to have a housing plan for their areas to inform their local plans. The housing plans would cover types of home, demographics and first-time buyer homes. Subsection (2) of the new clause provides that the local housing plan
“must outline the number and type of homes…(a) required, and…(b) proposed to be built…in the authority’s area.”
That would strengthen local authorities’ and local people’s ability to have a say about what they want to be built for them in their areas.
Yesterday, my hon. Friend the Member for Ruislip, Northwood and Pinner and I had an interesting meeting with several house builders. The Government should embrace and look to expand retirement villages in local plans. People are getting older, and many older people prefer to stay at home, but the system is slightly broken in terms of service charges and the leasehold model. That is not working.
David Simmonds
I am grateful to my hon. Friend for giving way during a speech that is as eloquent as it is stylish. He makes a serious point. One change in the UK housing market is the collapse in the provision of small developers; something like 93% of homes are now built by very large housing providers. Particularly in pursuit of developing some of the smaller sites, in which the Minister has expressed a clear interest, we need to bring those types of development to market at scale. That is what new clause 75 seeks to do, and I hope that the Minister will—in a speech that will no doubt be equally eloquent and stylish as that of the shadow Minister—set out his thinking to ensure that that happens, so that the Bill does not become purely a charter for large developers while the huge number of smaller sites, which could deliver so much additional housing, are left undeveloped.
Paul Holmes
My hon. Friend raises a good point; in fact, we have tabled some amendments on targets regarding small and medium-sized enterprises. He is right that we must ensure that development is not just carried out by the usual large-scale developers; we must bring vibrancy into the sector and, more importantly, allow local authorities to make those decisions.
On retirement villages, the system does not work, but new clause 50 would allow local authorities to have the authority to focus on the demographics and first-time buyers. It would ensure that SME builders are allowed to be designated by the local authority to build those houses.
It is shameful that, for the first time in a long time, housing policy in this country does not have any incentives for first-time buyers. This point relates to the new clause, Ms Jardine. For the first time, we do not have incentives such as stamp duty relief or Help to Buy, so I hope that the Minister’s disruptive and radical solutions, which he teasingly announced, will include incentivisation. That would allow local authorities to say, “We have a lot of young people who should be entitled to be on the housing ladder; we want to put some first-time incentives into our local plans.”
John Grady (Glasgow East) (Lab)
On assistance for first-time buyers, is the lifetime ISA not still in operation?
Paul Holmes
Yes, the lifetime ISA is still in operation—the last Government brought it in—but it does not deliver the real numbers that we need, as the Help to Buy and stamp duty relief systems did. We brought those in, but they have been reversed.
Paul Holmes
Not yet. Those have been reversed by a lot of the things that this Government have done. For the first time, the sector does not have any incentivisation.
Paul Holmes
If he has a quote, then I am not giving way. I say to the hon. Member for Glasgow East that the local housing plans that we are proposing must also include social housing. Local authorities need to put forward a proper housing mix.
Luke Murphy
I thank the hon. Member for giving way, and apologise to the rest of the Committee—I do not have a quote. Under its new leadership, his party is reflecting on the policies of the previous 14 years, so given that he is making an argument about first-time buyers and SME builders, why did the number of SME builders in the UK catastrophically decline over the past 14 years while the average age of the first-time buyer increased?
Paul Holmes
The hon. Gentleman does not have a quote, but his intervention is still misguided. He fails to realise that under the past 14 years of the Conservative Government, 800,000 people bought their first home through schemes such as Help to Buy and the stamp duty relief, and 2 million homes for first-time buyers were built. This Government have not even shown that they have the aspiration to match that, because they have cut a lot of the products that turbocharged first-time buyers’ getting on to the housing ladder.
I gently say to the hon. Gentleman that if he wants to, he can come for an appointment. By the way, we are under new leadership, and we are constantly reviewing our policies. We will be making announcements on the new products we will be bringing to people to fill the void that this Government have simply left for the first-time buyer.
Ellie Chowns
The hon. Member has issued a paean to Help to Buy, which at the time it was introduced was identified as a policy that would likely drive up housing prices and do nothing to address the real problems in the housing market. As I have repeatedly emphasised in this Committee, those problems relate particularly to affordable and social rent housing.
I have a quote for the hon. Member. A report published by the House of Lords Built Environment Committee in 2022 concluded that the
“Help to Buy scheme…inflates prices by more than its subsidy value”
and does
“not provide good value for money, which would be better spent on increasing housing supply.”
It pointed out that it cost the taxpayer £29 billion—more than £29 billion—over a decade, and that cash should have been used, as I have said, to replenish England’s falling stock of social housing.
The London School of Economics has found that Help to Buy boosted house prices in London by 8%—just that policy boosted house prices in London by 8%— and it boosted developers’ revenues by 57%. Does the hon. Member recognise that it is not a panacea for the problems in the housing market that we face, and that investing in social rent housing should be our priority?
The Chair
Order. Before we go on, could we keep to these new clauses, please, because we are getting a little off-track?
Paul Holmes
I will heed your advice, Ms Jardine, and bring this back to new clause 50.
The hon. Member for North Herefordshire said there should be more social homes, but that comes under the remit of local authorities to set in their housing plan. In response to what she said about Help to Buy versus social homes being a panacea, I gently say to her that I never at any stage said that Help to Buy was a panacea. I said it was part of the mix in which we could help people, if they so wished, to get on to the housing ladder for the first time.
Paul Holmes
I have not finished my point, if the hon. Lady would let me do so. I feel like the Minister last week.
I am saying that Help to Buy was part of a wider mix. The hon. Lady is absolutely right that we need to focus on building more social housing, but I have a fundamental political disagreement with her, which is that social housing is not a panacea either. There are people who want to buy and there are people who want to be helped to buy, and that is why I say that, under this Government, the incentivisation for first-time buyers in the context of that argument has been abandoned, and that happened when we left office.
Ellie Chowns
My point is brief: given that the Government have a limited amount of money available, should it not be spent on the things that are most effective in tackling the reality of the housing crisis? It is clear that Help to Buy was not that.
Paul Holmes
I agree with the hon. Lady that the Government should be focusing on social housing. However, to be fair to them, they have announced a huge amount of money for it, as we discussed in the Westminster Hall debate six or seven weeks ago. I cannot remember the figure, but it was a great figure for building social housing. They have gone further than the last Government did on social housing, and I said in that Westminster Hall debate that I welcomed the Minister’s and the Deputy Prime Minister’s commitment to building that affordable and social housing, but we need a housing mix that also allows for first-time buyers. That is the argument I originally made, and I do not think many people in the House or out there would disagree that we need such a mix.
Briefly, new clause 75 relates to small site allocations in local plans. Currently, local planning authorities are expected to allocate 10% to small sites in local plans, unless they can provide a strong explanation why that is not possible. The Government have recognised the strength of feeling that small site policy generally is not working for both planning authorities and small and medium-sized developers, and they are strengthening the wording in the Bill. However, this new clause is designed to reverse that, and to up the percentage of small sites that should be accessible to SME developers, as my hon. Friend the Member for Ruislip, Northwood and Pinner outlined in his intervention. I think the Minister should be able to agree to it.
We discussed this morning how SME developers could be enabled to build more homes. There would be a requirement for 20% of housing to be on small sites, and:
“The Secretary of State must, within six months of the passing of this Act, issue or update guidance for local planning authorities regarding the identification of sites for housing development…The guidance must outline a requirement for at least 20% of an authority’s housing requirement to be accommodated on sites no larger than one hectare.”
I hope that also shows many Members across the House that we believe in a solid and varied housing mix, built by a solid and varied housing sector. A number of these measures will help deliver just that. I would welcome the Minister’s thoughts.
The Chair
Before we go on, let me say that the Minister is under no obligation to discuss Help to Buy in his response.
Matthew Pennycook
I will obey your strictures, Ms Jardine, and avoid a debate on Help to Buy. I welcome hon. Members moving this group of new clauses, but I will be fairly brief. Although they may not want to, I am keen to debate all the other new clauses they have tabled and to make good progress through them. However, I am more than happy to address these new clauses.
It will not surprise hon. Members that the Government do not feel able to accept the new clauses, but for good reason. I am happy to discuss why and to set out, where applicable, how our proposals to disrupt—these are not disruptive proposals, just to clarify that for the shadow Minister, the hon. Member for Hamble Valley—the housing system, so that it functions better, play a part in that.
I will first address new clauses 3 and 8, tabled by my hon. Friend the Member for North East Hertfordshire and the hon. Member for Taunton and Wellington respectively. It is true that the Government have not yet set a social and affordable housing target, but we are clear that we need to significantly increase the number of social and affordable homes built each year. There is a particular focus on that under this Government, because I would argue that we have seen the engineered decline of social rented housing over the previous 14 years. That included not only the significant cuts the coalition Government made to affordable housing grant, but other measures that were introduced. I think, in particular, of the generous right-to-buy discounts introduced by Grant Shapps when he was Housing Minister, which have seen our stock sold off in too large a quantity. We are determined to build more and, through the changes we are making to right to buy, to retain more of our stock, while recognising that long-term tenants should still have a right to buy, where applicable.
We do not believe that the new clauses are the right way forward. I think there is a difference—I am more than happy to debate the issue outside the Committee Room, but it is probably too extensive to go into now—between the standard method for calculating assessed housing need in the national planning policy framework, which sets overall assessed housing need numbers, with those being translated into local targets for housing as a whole, and affordable targets.
As I said, we have not set a target yet, but we are clear, through the NPPF, that local authorities should, in producing their local plan, assess their need for affordable housing and social rented homes, and then plan to meet those needs. That includes establishing the total need for affordable housing and setting out the amount of affordable housing that should be secured on development. Those plans are then obviously independently examined as to whether they are sound. We have also made changes to the NPPF to provide greater flexibility for local authorities to deliver the right tenure mix to suit the particular housing needs in their areas.
In addition, we are introducing new measures in the Bill to allow spatial development strategies to specify an amount or distribution of affordable housing to be delivered. I have also already committed to considering further steps to support social and affordable housing as part of our intent to produce a set of national policies for decision making in 2025. It is as part of those changes that further steps will, in many instances, best be taken, including on the content and timing of further updates to guidance. I really do recognise the point behind the new clauses, and we are keeping the matter under review, but for the reasons that I have given, I would ask that the new clauses are not pressed to a vote.
I now turn to new clause 49. Our approach to housing targets has been put in place to support our ambition to build 1.5 million new homes over the next five years. In our view, that reflects the scale of house building needed to address the current acute and entrenched housing crisis in this country, which I think we all recognise, and we have heard the statistics. As things stand, there are nearly 30,000 people on my local housing waiting list, and huge numbers are in temporary accommodation. Everywhere I go, I say that this is an acute and entrenched crisis; in many parts of the country, particularly for those of us in urban areas, it is nothing short of an emergency, and we need to take steps to respond to that.
The Government have been clear that new towns—this is our preferred approach as we proceed now—will deliver over and above the targets produced by the standard method across the country. I say that for the following reason, but with the caveat that we are keeping the matter under review: I do not know what precise list of recommended sites the new towns taskforce will bring forward, and some of those sites may build out in this Parliament, but a great number will either not have started building out in this Parliament or will only just have started. For that reason, I do not think it is reasonable, in many instances, to say that a significant proportion of the LHN we are asking local authorities to meet can be absorbed by a new town that is to come in a future Parliament.
Lewis Cocking
Local plans are done over a 15-year period, so they are over multiple Parliaments. When the Government set the housing targets for local councils—if what the Minister has just said is the Government’s position on new towns—should the situation not be the same as for local plans? Broxbourne has a local plan over 15 years, which is three Parliaments, so all the housing targets given to local authorities will not be done in one Parliament.
Matthew Pennycook
The hon. Gentleman makes a fair point. Local plans are set over a longer time horizon. There is an issue, as he knows, with the number of local plans across the country that are up to date. There are other, corresponding issues about the date at which those local plans that are brought forward begin, and whether they are brought forward at all. Our general position—I will not go any further than that—is that we are keeping this under review. It has been our stated position so far that new towns will deliver over and above the targets produced by the standard method.
When a new town might build out will be highly place-dependent; it will depend on the particular circumstances and delivery vehicle. Let us see what sites the new towns taskforce recommends. We are keeping this under review because we recognise that we need the right incentives in place to support proactive local authorities to work with us to bring new towns together. Although we have been clear that the site selection will ultimately be in the national interest, in terms of building these large-scale new communities out quickly and effectively, and ensuring that they are exemplary developments, it will obviously be far easier if local authorities are proactive and constructive.
Gideon Amos
The Minister is making a very important point. He will no doubt recall that, on a number of occasions, I have argued that those new towns should be within the housing targets. Our view is that if they are going to be successful, they need to be community led and embedded in the mission of that council area or community.
To the Minister’s point about aligning incentives, we encourage him to continue to keep that matter under review and open for a further reason: the scale of the increase in allocations. For example, my council has to find a 46% increase in housing allocations, which is extremely challenging, as it is in areas where, for example, there are green belts or protected land. It is extremely challenging for some authorities to identify land for housing, and if that has to be on top of a new town, it will be even more challenging. I welcome the Minister’s statement that he is keeping the matter under review, and we encourage him to do that.
Matthew Pennycook
The hon. Gentleman’s position on the matter is very clear. We will keep under review how the taskforce’s recommendations on new towns interact with housing targets.
Although I appreciate that the hon. Member for Ruislip, Northwood and Pinner is seeking, understandably, to prevent areas with a new town from taking unmet need from neighbouring areas, his new clause would have the effect of discouraging effective cross-boundary co-operation on a much wider range of matters, which could lead to issues with local plans in those areas. For that reason, I ask him not to press it.
I turn to new clause 48. In our manifesto, the Government committed to restoring mandatory housing targets and reversing the supply-negative changes introduced by the previous Government in December 2023. In December 2024, we therefore implemented a new standard method for assessing housing needs that aligns with our ambition for 1.5 million new homes over this Parliament and better directs homes to where they are most needed and where housing is least affordable. The standard method is an important tool to ensure that housing is delivered in the right places, which is critical to tackling the chronic shortages facing the country across all areas and all tenures.
We consulted extensively on our changes to the standard method. Our public consultation received more than 10,000 responses from a range of relevant parties, including 387 submissions from local authorities. Our response to the consultation sets out the evidence received and how the Government have responded to the points raised. We have also published revised guidance to support authorities utilising the standard method. Given the recent consultation exercise on the revised standard method, I do not believe that new clause 48, which seeks further consultation and procedural steps, is the right way forward. I ask the hon. Member for Ruislip, Northwood and Pinner not to press it.
I turn to the hon. Member’s new clause 50. National planning policy—specifically paragraph 72 of the NPPF—already expects local planning authorities to prepare strategic housing land availability assessments to provide evidence on land availability within their area. Authorities should then set out, through their local plans, a sufficient supply and mix of sites that can be brought forward over the plan period. Through this existing policy, local planning authorities are already expected to make an assessment of the number and type of homes that are required and proposed to be built in the authority’s area. I note the comment that several hon. Members have made about older people’s housing. I think it fair to say that the housing and planning system has not kept pace with demographic change, but that is why the Government are exploring the recommendations of the older people’s housing taskforce, for example.
In addition, we are committed to introducing the new plan-making system, which includes the following provision set out in new section 15C(8) of the Planning and Compulsory Purchase Act 2004, as inserted by the Levelling-up and Regeneration Act 2023:
“The local plan must take account of an assessment of the amount, and type, of housing that is needed in the local planning authority’s area, including the amount of affordable housing that is needed.”
New clause 50 would therefore duplicate national planning policy and legislation that we anticipate will come into effect later this year. It would create new burdens on local planning authorities, with the effect of delaying plan making. It would also undermine the Government’s priority for extensive coverage of local plans across England, reducing much-needed housing supply. I ask the hon. Member for Ruislip, Northwood and Pinner not to press it.
I fully understand and support the principle behind new clause 75, tabled by the hon. Member for Hamble Valley. The Government fully recognise the benefits that small sites can offer in contributing to house building, diversifying the housing market and supporting faster build-out. We are therefore fully committed to increasing delivery on small sites and supporting our SME developers. This is a real priority for the Government. The statistics show that back in the 1980s SMEs built something like 40% of housing supply; the figure now is less than 10%. That is a large part of the reason that we are not bringing homes forward in the numbers we would want. Council house building is another example.
Via the NPPF, local authorities are already expected to allocate 10% to small sites in local plans unless they can provide a strong explanation why this is not possible. If such an explanation proves wanting, the plan can be found unsound when it is examined by an independent inspector. In line with the thinking behind new clause 75, we consulted on strengthening that requirement by making it wholly mandatory in local plans. That was part of the summer 2024 consultation on the NPPF, but the responses we received were clear that making the target fully mandatory would be resource-intensive, would put significant pressure on local authorities, would be unworkable in many areas and might lead to delays in plan making.
In the Government response to the NPPF consultation in December, we therefore made clear our intention to explore other options to support small site delivery as part of the upcoming national development management policies. I do not want to tease the Committee again, but details will be forthcoming and will be subject to consultation. Although I appreciate the principle behind new clause 75, I therefore do not believe that it is the best way to support small site delivery. I ask the hon. Member for Hamble Valley not to press it.
Paul Holmes
I am a pragmatist, so if the Minister says that he will make announcements in due course to strengthen what he already has a track record of doing, which is what the new clause seeks, we will welcome that. I must press him slightly, however. I grant that he has only been in his position for 10 months, but if the 10% is already in the NPPF and has not made any real change, and if he is reluctant to make legislative changes to enforce it, what other measures can he introduce to increase the number of houses that SME builders can build?
Matthew Pennycook
It is worth referring to the NPPF consultation in the summer and the Government response. We think that there was good reason not to make the 10% allocation mandatory. Local authorities, in particular, told us that they had concerns in that regard. There are many other things we could do. Without using this as a defence, in fairly short order the shadow Minister will see some of the measures that we want to introduce to support SME house builders. Access to land is a concern, and access to finance is another issue, as is the cumulative burden of regulation on SME house builders, which, for obvious reasons, are less able to cope with that than large-volume house builders. All of that is part of the answer, but I am sure we will have further debates on the matter once the Government have brought forth new measures in that area.
I turn to new clauses 92 and 26. I share the commitment of the hon. Member for Taunton and Wellington to enhancing provision and choice for older people in the housing market. I agree that the need to provide sufficient housing to meet older people’s specific needs is critical. We must ensure that the housing market is moving with demographic change. I also recognise that well-designed, suitable housing can improve the quality of life, health and wellbeing of older people, as well as supporting wider Government objectives.
That is why the revised national planning policy framework already makes it clear that local authorities producing a local plan should, as I have said before, assess the size, types and tenure of housing for different groups in their communities, including older people, and reflect that in their planning policies. Supporting guidance also makes it clear that an understanding of how the ageing population affects housing needs should be considered from the early stages of plan making through to decision making.
Furthermore, clause 47 contains provision for spatial development strategies to take account of that factor. It provides that SDSs
“may specify or describe…an amount or distribution of affordable housing or any other kind of housing”
if the provision of that housing is considered
“to be of strategic importance to the strategy area.”
One can well imagine how, in particular sub-regions of the country with high proportions of older people, SDSs may want to take particular account of that factor.
We will of course consider how we can continue to make progress on delivering sufficient housing for older people, as we develop our long-term housing strategy, which we will publish later this year. I recognise that that will have benefits not only in meeting housing need for older people, but further down the housing chain, by unlocking homes that are inappropriate for older people. Those people may wish to move if they have a better offer and if challenges such as those mentioned by the shadow Minister, the hon. Member for Hamble Valley, such as the excessive service charges on some older people’s residential housing, are dealt with.
On new clause 26, I do not believe that introducing legislation to impose targets and capital funding for the affordable homes programme is the best way to incentivise the market to increase the supply of older people’s housing and later living homes. The Government’s view is that local housing authorities are best placed to bring forward the right amount of new housing for older persons and later living homes in their areas through the planning and care systems, and based on local need. The Government will obviously support them to do that when they set out the full details of a new grant funding programme to succeed the 2021 to 2026 affordable homes programme at the spending review on 11 June. Alongside wider investment across this Parliament, the new programme will help to deliver our commitment to the biggest increase in social and affordable housing in a generation. For that reason, I respectfully ask that none of the new clauses in this very large group are pressed to a vote.
Ellie Chowns
I thank the Minister for his comments. I will briefly pick up on a couple of the issues he mentioned. On housing for older people, and new clause 92, I welcome the Government’s recognition that this is a serious issue, and that there are real benefits to enabling greater provision of housing for older members of the community—not least that it would also unlock housing for others. I look forward very much to the measures with which he is tantalising us coming forward. Likewise, as support for SME house builders is an issue close to the hearts of those in my constituency of North Herefordshire, I am on tenterhooks waiting for his forthcoming announcements.
However, I do intend to push new clause 3 to a vote. The Minister has not explained why he thinks that mandatory housing targets are essential, but targets for affordable and social housing are apparently unacceptable.
Matthew Pennycook
In part, I would like to correct the hon. Lady, because at no point did I say that such targets are unacceptable; I said that we have not, to date, set one. I will give her an idea of some of the reasons. The hon. Member for Broxbourne will remember discussion of this in my evidence to the Housing, Communities and Local Government Committee: there are factors that bear on the delivery of social and affordable housing that sit outside the control of a local authority area.
For example, while a lot of social and affordable housing comes through section 106 agreements, large amounts come through grant funding from Government, and we cannot impose an arbitrary target without other measures, which the Government are bringing forward, being in place. We have not set a target for now; we think it is right that local authorities lead on assessing that need and ensuring that it is reflected in local plans. However, at no point did I say that it is unacceptable—
David Simmonds
On a point of order, Ms Jardine, we had agreed, through the usual channels, that the Whip would move the Adjournment for the Committee at 4 pm—that was agreed with the Labour Whip yesterday. I appreciate that, for very good reasons, she is not here today. I also understand that Ministers may have a preference, given our progress, to continue a degree further. I will not move the Adjournment if the Ministers indicate that they wish to continue a little later, but may I seek your guidance, Ms Jardine, on how to resolve that, given that the schedule on which hon. Members’ diaries have been constructed included an adjournment at 4 pm?
The Chair
I am sorry, but I have had no instruction about that. There has been no mention of it.
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
I am standing in as both Energy Minister and a Whip, Ms Jardine. As far as I know, the assumption was that we would have made speedier progress on various clauses today, and might have concluded line-by-line scrutiny by 4 pm. I do not think it was agreed that we would adjourn at 4 pm, but I am not party to any of those conversations, so I am afraid I cannot help. I think all other hon. Members have 5 pm in their diaries—and, given the lack of progress that we have made, we probably should proceed.
David Simmonds
Further to that point of order, Ms Jardine, I accept that it was a discussion between me, as the Opposition Whip, and the Labour Whip yesterday, which is the usual channel through which times are agreed. That being the case, and in her absence, I will not move the adjournment, in order to enable the Committee to proceed. However, I respect that hon. Members may have to leave—including me, because I have built my diary around that agreement and I have childcare responsibilities.
Paul Holmes
Further to that point of order, Ms Jardine—I do not wish to waste any more of the Committee’s time—for my part, I am content for the Committee to sit until 5 pm to ensure that business gets through. However, given my own diary, I would take a dim view if the Government should seek to continue beyond 5 pm.
The Chair
To clarify, the Committee sits until the Government moves the adjournment, so it is entirely up to the Government as to what they wish to do.
Michael Shanks
In all our diaries, the session was from 2 pm until 5 pm. That is when the Government will adjourn.
The Chair
We will continue; I believe the hon. Member for North Herefordshire was speaking.
Ellie Chowns
I was not speaking at the moment of the point of order—the Minister was. I confess have been slightly thrown by the intervention from the hon. Member for Ruislip, Northwood and Pinner, but I think that at the time of the point of order, the Minister was intervening on my summing-up speech, which was about pushing new clause 3 to a vote. I take the Minister’s point that he did not say that such targets were unacceptable; however, if he fails to support the new clause, he is effectively indicating that it is fine for the Government to specify where houses must be built, but not to say that local authorities should specify that certain types of housing must be built, as they see fit.
Matthew Pennycook
I would genuinely like to understand the hon. Lady’s thinking in this area. Does she think that it is the role of Government to prescribe, for every local planning authority in England, the precise mixes of tenure and affordable housing, and, for example, the number of older people’s homes they bring forward? It would be helpful to have clarity on where the line is drawn.
Ellie Chowns
I am pleased to clarify that no, that is not my proposal, nor is it what the new clause says. It simply states:
“Any national or local plan or strategy which relates to the building or development of housing must include specific quotas for the provision of—
(a) affordable housing, and
(b) social housing.”
The elaboration of those national and local plans remains in the hands of those who are responsible for producing them under existing legislation. There is nothing in the new clause that says that it has to be at a specific level.
If the Government take the provision of affordable and social housing seriously, and recognise that the existing level of social rented housing—whether it is 3% or 6%—is nowhere near sufficient, then why not have the Bill specify that a quota for affordable and social housing should be set by the authorities that write the local plans? The new clause is moderate, reasonable and proportionate, and is entirely in line with the Government’s commitment to setting targets for housing overall.
The net effect of not accepting the new clause may well be that the housing market continues to be just as distorted as it currently is, so I warmly encourage the Minister to consider supporting it. I think that others will find it difficult to understand why a Labour Government would not support targets for affordable and social housing—not specifying the numbers, but requiring that such targets are a necessary part of achieving what the Government say they want to achieve in improving access to housing.
Question put, That the clause be read a Second time.
The Chair
Before we move on, I think we could all do with a brief comfort break. I will suspend the sitting until 4.15 pm, which will give us eight minutes.
The Chair
With this it will be convenient to discuss the following:
New clause 11—Accessibility requirements to be made mandatory—
“The Secretary of State must, within six months of the passing of this Act—
(a) make provision for M4(2) (Access to and use of dwellings) in Schedule 1 of the Building Regulations 2010 to be made mandatory, and
(b) issue guidance for developers and other relevant stakeholders on how M4(2) is to be complied with.”
This new clause would make the existing Building Regulations requirements in relation to accessibility, which are currently optional, mandatory.
New clause 110—Accessibility standards for new homes—
It must be a condition of any grant of planning permission for new homes that—
(a) all planned homes meet Building Regulation M4(2) (accessible and adaptable dwellings); and
(b) where an application for planning permission is for 20 or more homes, a minimum of 15% of planned homes meet Building Regulation M4(3) (wheelchair user dwellings).”
Gideon Amos
It is a privilege to continue to serve under your chairmanship, Ms Jardine.
New clause 5 would require building regulations to be made that require new homes to meet the zero carbon standard and to include renewable energy. Back in 2006, the then Labour Government rightly set out plans to achieve zero carbon in new housing. The same Government made a commitment in the carbon plan that there would be a regulatory requirement for zero carbon homes from 2016, which was the key date. That 2016 commitment was renewed by the coalition Government in 2011 and was included in the 2014 Infrastructure Bill. However, all the commitments to on-site efficiency standards and allowable solutions—the extra bit to make new homes zero carbon—were cancelled by the incoming Conservative Government in 2015, in a shocking retrograde step in addressing carbon emissions.
We came so close to achieving the zero carbon homes standard back then. A cross-sector ministerial taskforce had been in place from around 2008. Two preparatory upgrades to building regulations had already been made—by the Labour Government in 2010, and by the coalition Government in 2013—and regulations were drafted for the 2016 upgrade that would have delivered zero carbon homes.
Labour housing and planning Ministers who are now in the Cabinet—I will not name them in case they do not want to be named—chaired the ministerial taskforce and took the programme forward. Under the coalition Government, a predecessor of my hon. Friend the Member for Hazel Grove (Lisa Smart), Andrew Stunell—to whom I pay tribute, and who introduced his first Bill on this subject back in 2004—continued the zero carbon homes programme as a Minister until 2015.
We then had the complete cancellation of the programme in 2015. The Energy and Climate Intelligence Unit has estimated that, had the zero carbon standard been reached, residents would have paid £5 billion less in energy bills since 2016 as a result of living in better insulated and more energy-efficient homes.
My noble Friend Baroness Parminter tabled a zero carbon homes amendment to the 2015-16 Housing and Planning Bill on Report, but the then Government did not support it. The Minister at the time in the Lords said that the Government would
“introduce nearly zero energy building standards”.—[Official Report, House of Lords, 25 April 2016; Vol. 771, c. 925.]
Of course, that falls well short. Undeterred, the Lords voted in favour again; the then Government ultimately tabled their own amendment that committed to reviewing energy performance requirements under building regulations, but they never did so—and, again, that fell a long way short.
Almost 20 years on, we still do not have a zero carbon standard for new homes. It was, and still should be, a cross-party and cross-sector issue. There is a legal commitment to reduce carbon emissions in this country, and mandating zero carbon new homes would ensure that we do not make the task even harder for ourselves than it already is. Zero carbon homes insulate households not just in terms of energy but from fluctuations in energy prices. They reduce demand for electricity from the national grid and obviously reduce carbon footprint.
Much more recently, my hon. Friend the Member for Cheltenham (Max Wilkinson) tried again to acquire a degree of solar generation on new homes with a private Member’s Bill—his sunshine Bill. When the Minister responded to that debate back in January, he said that
“the Government already intend to amend building regulations later this year...that will set more ambitious energy efficiency and carbon emissions requirements for new homes.”—[Official Report, 17 January 2025; Vol. 760, c. 652.]
I am not sure why I am quoting the Minister to himself, but he will no doubt recall saying that rooftop solar deployment will increase significantly as a result.
We look forward to a response on the new clause, which moves us towards and helps to deliver zero carbon homes. It would give the Government six months to set out regulations, and it merely seeks to hold the Minister to his word on the topic. The Minister ought to emulate once more the forward-looking approach of the Labour Government back in 2006, who committed this country to a trajectory of zero carbon homes. Almost 20 years on, we and many others want the certainty of a legislative provision to secure a zero carbon future for British housing and bring the benefits of solar generation to all residents.
After all, we could have avoided building an entire new power station had this standard been introduced in 2016, as was proposed through cross-party agreement at the time. It is now almost a decade since the first zero carbon homes plan would have been introduced. This will be a lost opportunity if Parliament does not commit, finally, to taking that last step to make all new homes zero carbon.
Ellie Chowns
I warmly welcome the new clause tabled by the hon. Member for Taunton and Wellington. I refer colleagues to the fact that I have proposed a private Member’s Bill on exactly this topic—the Carbon Emissions from Buildings (Net Zero) Bill—and my very first Westminster Hall debate was on environmental building standards, so I am fully behind the new clause.
It is essential that we build new housing to the best possible standards, and that we build new homes that are fully fit for the future. We know that doing so has social, environmental and economic benefits. It has social benefits, because it reduces people’s fuel bills and tackles issues such as mould in homes. It has environmental benefits, because, of course, there are huge energy efficiency advantages. It has economic benefits, not least because it is much more economically efficient in the long run to build houses effectively at the start so that we do not have to retrofit them years down the line. We already have a huge retrofit challenge in the coming years, so the very least we can do is to ensure that all new houses are built to zero carbon standards.
The new clause refers specifically to solar power generation on roofs. I warmly welcome the Government’s announcement—I believe it was on local election day—that they are moving in that direction. However, in zero carbon design, other factors are much more important, including building orientation, design around transport and fabric first. I would like to discuss another factor, namely embodied carbon. I have tabled new clause 91 on the subject, but I am not sure that we will get there. When we talk about zero carbon, we need to recognise both the operational carbon, which is the carbon produced by a building during its lifespan—over the next, say, 80 years—and the embodied carbon in buildings, which is becoming a larger factor in the construction industry. We will soon be at the point where embodied carbon is half of the carbon associated with a building during its lifetime.
Rachel Taylor
I thank the hon. Member for her lengthy and detailed explanation of zero carbon standards. Does she think it is appropriate to constrain the Minister to bringing forward building regulations within the short period of six months? Would that take longer? Not all of us have the same detailed and intricate knowledge of the standards that would be required, although I understand a great deal about building regulations.
Ellie Chowns
In fairness, I did not draft the new clause. I recognise that it says six months, but as the hon. Member for Taunton and Wellington spoke about so eloquently, we had proposals for net zero carbon building standards on the table 10 years ago. This has been in development for 20 years. The sector itself is way ahead of Government on this. A huge amount of work has been done by the Low Energy Transformation Initiative, the Royal Institute of British Architects and all sorts of organisations to develop zero carbon building standards.
Although bringing regulations forward within six months is arguably ambitious, it is not that the work is not available. The missing thing is political will, and political will can be found, as we have seen—we have passed a bill in less than 24 hours in this House within the last few weeks. Where there is political will, things can be done quickly. This is not an unreasonable proposal in this legislation. All the technical work is there; it is political will that is missing to bring forward a zero carbon standard for new homes. I could not more warmly welcome this new clause.
Olly Glover
I wish to add some concise thoughts to support the new clause, tabled by my hon. Friend the Member for Taunton and Wellington, which requires new homes to be built to a net zero carbon building standard and include provision for generation of solar power. My comments relate to the current political context in our country, which is—regrettably, in my view—more and more cynicism about net zero and the feeling that climate change mitigation is a negative, a drag on our lives and something that will cost us loads of money.
These proposals on zero carbon homes and solar panels are the exact opposite of all that. They are a good example of how taking action on climate change and striving for net zero brings economic opportunity by stimulating supply chains and the labour force and helping people to reduce their bills, creating more money for them to spend on the wider economy. Of course, it helps our planet as well. We need to be far more radical on policies like these, and there needs to be far less delay. We really need to get on with it, because they benefit people, planet and economy.
Matthew Pennycook
I thank the hon. Member for Taunton and Wellington for tabling the new clause, and other hon. Members for speaking to it. They are all right to highlight the damage caused by the scrapping of the zero carbon homes standard back in 2015. It is worth recalling that that was widely criticised at the time, not only by environmentalists, but by house builders that had geared up to be ready to make the change. It is particularly regrettable, not least to me—I know that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen, will feel the same—to confront the collective costs of the retrofit that is now required because those standards were not in place.
The Government agree that reducing carbon emissions from new homes is a vital part of our ambition to reach net zero by 2050, and increasing solar power in the country must play an important role in that transition. However, as the hon. Member for Taunton and Wellington said when he referenced the debate on the private Member’s Bill that we had a few months back, it is already the Government’s intention to amend building regulations later this year and set more ambitious energy efficiency and carbon emission requirements for new homes. The future homes and building standards will set our homes on a path that moves away from relying on volatile fossil fuels.
We are conducting further technical stakeholder engagement on solar energy following feedback from the future homes and building standards consultation. It is our responsibility to make sure that solar provision is included in the new standards in a way that is ambitious, but technically achievable. We are working through the details to get that right. It is also our responsibility to provide industry with sufficient time to prepare to ensure that any transition to new standards is as smooth as possible. The time spent carefully engaging with industry on the future homes standard makes me confident that a smooth transition to higher standards is entirely possible.
Therefore, I can assure hon. Members that the Government remain committed to improving the energy efficiency of new homes and increasing solar panel deployment. Without seeking to tease hon. Members, who will not have to wait too long for further information in this area, we are doing that. I reassure the hon. Member for Taunton and Wellington that very fruitful conversations continue with the hon. Member for Cheltenham. I recognise the leadership he has shown in bringing his private Member’s Bill, which has drawn more attention to the issue. For those reasons, and in view of our firm commitment to bring forward those future standards, I hope the hon. Member for Taunton and Wellington might withdraw his new clause.
Gideon Amos
Before I respond to the Minister, I note that I should have spoken to new clause 11. I will not do so at length, but it would improve accessibility for new homes, make sure they are adaptable and introduce a minimum standard for them.
On the zero carbon standard, I am grateful for the Minister’s generally positive response about the direction of travel, but so far, the rhetoric has been about getting us nearer to zero carbon. We need to be bold and decide that we are finally going to make new homes zero carbon. It is a small step to take. In previous legislation, there was an allowable solution that would compensate for the final balance of emissions in any new house that could not achieve it through fabric first. It is achievable, it needs to be done, and we will push new clause 5 to a vote.
Question put, That the clause be read a Second time.
The Chair
With this it will be convenient to discuss the following:
New clause 34—Sustainable drainage (No. 2)—
“The Secretary of State must, within one month of the passing of this Act—
(a) bring into force Schedule 3 (Sustainable drainage) of the Flood and Water Management Act 2010, and
(b) provide guidance to local planning authorities, land and property developers and other relevant stakeholders on—
(i) how to incorporate sustainable drainage into new developments, and
(ii) the minimum expected standards for ongoing maintenance of sustainable drainage infrastructure.”
This new clause would require the Secretary of State to bring into force the sustainable drainage provisions of the Flood and Water Management Act 2010 and provide guidance on the building in of sustainable drainage in future developments.
New clause 89—Review of drainage performance of new developments—
“(1) A review of a development’s drainage performance must take place five years after the completion of the development.
(2) Where a review recommends that action be taken to improve the development’s drainage performance, the developer must implement such recommendations, giving priority to those relating to flood risk.”
This new clause requires developers to review the drainage performance of a development five years after being built.
Gideon Amos
It is a pleasure to speak to new clause 7, which would require schedule 3 of the Flood and Water Management Act 2010 to be commenced. My Liberal Democrat colleagues have pressed on this matter repeatedly over recent months and years, including in Westminster Hall. The schedule, which was never commenced, would require sustainable drainage systems—SuDS—to be provided in all but the most exceptional cases. It would establish a proper authority for regulations to ensure they are properly designed and maintained. It is not right that because of inadequate regulation and safeguards, the burden of poorly constructed drainage systems should fall on individuals who have saved for years to get their first home. Without proper enforcement of sustainable drainage, there is a real risk that the drive to increase housing numbers will exacerbate the current problems with drainage and flooding.
After the 2007 floods, Sir Michael Pitt recommended the introduction of the provision. It was duly passed as part of the 2010 Act, but it was never commenced. By 2014, the Government had consulted on the necessary guidance and were on track for commencement before the end of 2015. In 2015, the consultation came to an end, the work came to an end and it was not commenced. The policy approach taken by the then Conservative Government was that we would deal with sustainable drainage through policy, and policy would be sufficient. A little later on, in their 2023 review of the implementation of schedule 3 to the Flood and Water Management Act 2010, they set out that a previous review had concluded that
“non-statutory technical standards for sustainable drainage systems should be made statutory: as the ambiguity makes the role of the planning authority very difficult. The review also found that in general there were no specific checking regimes in place to ensure that SuDS had been constructed as agreed, leaving concerns about unsatisfactory standards of design and construction, and of difficulties of ensuring proper maintenance once the developer has left the site.”
If only that schedule had been brought into effect, a great deal of flooding of people’s homes would have been avoided.
In the past, we have had a body of law to control our sewage and drainage system, originally from the Public Health Act 1936, which dealt with any kind of drain that is
“communicating with a public sewer”,
in the words of the Act. But SuDS are a new way of doing things, and they do not have the same body of regulation. There is therefore no longer any reason why schedule 3 should not be commenced as soon as possible, if not immediately. It should not take another flood to make that happen.
It is time to implement the recommendations of the 2008 review, the Government’s consultation response in 2014, the 2023 Department for Environment, Food and Rural Affairs review that I quoted, and schedule 3 of the Flood and Water Management Act 2010 before our constituents find themselves forced into communicating with a public sewer in their homes and gardens in a way that is all too close and personal.
Paul Holmes
I commend the hon. Member for Taunton and Wellington on tabling the new clause. It is very similar to new clause 34, which is in the name of my hon. Friend the Member for Mid Bedfordshire (Blake Stephenson). My hon. Friend’s goes slightly further, in that it would ensure
“minimum expected standards for ongoing maintenance”,
but we welcome the sentiment, and we understand why the hon. Gentleman and the Liberal Democrats have tabled the new clause.
This is an issue that many of us have faced. The hon. Gentleman and I both attended a Westminster Hall debate about problems with drainage in new developments. I said then that in our constituencies, several of us could point to new developments in which planning officers and constituents had no confidence, even though the planning authority had acted entirely appropriately within the guidelines. I think particularly of Botley parish council in my constituency and Boorley Green, where development is going on along the River Hamble and further up into Winchester Street. Schedule 3 of the Flood and Water Management Act 2010 was supposed to help with the expected standards.
With many new developments, a lot of the water companies are not sufficiently accountable to the people they serve. Local authorities are slightly constrained by the planning system from making the changes that they could make to help the long-standing flooding problems, if schedule 3 was brought in.
I welcome the new clause, and it will have our support. We will work with the hon. Gentleman on Report to strengthen the new clause. I do not mean that there is anything wrong with it, but I would like it to be combined with new clause 33 and the standards on ongoing maintenance. I hope the hon. Gentleman takes that as a helpful suggestion, and we look forward to supporting his new clause.
Ellie Chowns
I rise to speak in support of new clause 7. I have spoken about flooding in the main Chamber at least five times. Constituents have come to see me in my surgeries to tell me that they have been flooded out of their new homes only six months after they were built, because of a lack of appropriate drainage. As climate change brings us greater extremes and severity of weather, we know that frequent flooding will become even more of a problem, so it is imperative that any new building is flood resilient.
I draw the Committee’s attention to my new clauses 85 and 86, which I will move if we have time tomorrow or on Thursday. They are also designed to prevent building on flood plains, and to ensure that flood resilience measures are in place for all new buildings. It is quite extraordinary that 15 years after SuDS were provided for in the Flood and Water Management Act 2010, they have still not been brought in. I add my voice to those of my Lib Dem and Conservative colleagues urging the Government to support the new clause, and to ensure that all new building is genuinely flood resilient and does not contribute to further problems downstream for other areas, housing or infrastructure.
Olly Glover
I rise to speak to new clause 89, tabled by my hon. Friend the Member for Henley and Thame (Freddie van Mierlo). It would support what other hon. Members have been seeking with their amendments by requiring developers to review the drainage performance of a development five years after being built and by clarifying that it is very much for the developer to take remedial action when such drainage performance is found to be inadequate.
My hon. Friend tabled the amendment for a range of reasons, not least because the new house building in his constituency, and indeed in mine, has included a number of areas where drainage installation has not been done adequately. There have subsequently been lots of issues with the local authority not being willing to adopt because of that; then there has been all the usual argy-bargy that many of us are familiar with between developer and local authority.
The amendment also speaks to a concern of many residents that the scale of house building and the drainage facilities put in place contribute to local flood risk and flooding incidents. A couple of examples from my constituency: the Anderson Place estate in East Hanney and the Childrey Park estate of East Challow have had both flooding issues and those arguments between local authority and developer. For those reasons, we have tabled new clause 89 to put greater onus on developers to ensure that they are installing drainage to the required standard, and that assessment takes place subsequently within five years.
Matthew Pennycook
I thank the hon. Members for proposing these amendments. Once again, the Government very much sympathise with their objectives. I personally found the recent Westminster Hall debate extremely useful in clarifying my thinking on this matter and the wider issue of water infrastructure.
The Government are strongly committed to requiring sustainable drainage systems in new development. The hon. Member for North Herefordshire cites 15 years—we have had 10 months, and within that time we have already taken steps to improve the delivery of SuDS through the planning system. The revised national planning policy framework, published in December, expanded the requirement to provide SuDS to all development with drainage implications. The framework now also makes clear that SuDS provided as part of proposals for major developments should have maintenance arrangements in place to ensure an acceptable standard of operation for the lifetime of the development. The Government also provide planning guidance on sustainable drainage, which supports policies contained within the NPPF.
Some time has passed since the Flood and Water Management Act 2010 came into force, and it is important that we consider the most efficient and effective way of securing its objectives in the current circumstances. More specifically, better delivery of SuDS may be achieved by continuing to improve the delivery of the current policy-based approach, rather than commencing schedule 3 to the Flood and Water Management Act 2010.
I believe that the underlying ambition is shared. We want to improve the take-up of SuDS, but the means of achieving that are under active consideration. I understand why in all these debates hon. Members wish to push the Government because they feel an urgency to use this legislation to enact every change to the planning system that they want to see. However, I say to the hon. Members for Taunton and Wellington and for North Herefordshire that a final decision on this particular matter will be made in the coming months. I hope that on that basis they will feel able to withdraw their amendments.
I turn to new clause 89. It seeks, as the hon. Member for Didcot and Wantage just set out, to introduce a new requirement for developers to undertake a review of the drainage performance of a development five years after being built and to take action when it is needed to improve the development’s drainage performance. As part of the planning application process, developers will need to set out plans for the long-term management of a site, including for drainage infrastructure. That will be agreed as part of the planning permission for the use of the planning conditions or section 106 agreements, and can include arrangements for agreed bodies to take on the management of drainage infrastructure.
When a developer proposes to use SuDS as part of a development, it is clear in planning practice guidance that the proposal should include arrangements for their long-term maintenance. The arrangements will include setting out an agreed body that will adopt the SuDS once the development is completed and take on the maintenance of this infrastructure.
Gideon Amos
I genuinely appreciate the Minister’s constructive response; I know that he is interested in and concerned about the issue.
We all know that the industry will have objections to new regulations—back in the day, house builders objected to being required to put bathrooms inside houses. Objections will come as surely as night follows day. Previous Governments responded by saying, “Don’t worry; we can just change policy—it will be fine.” The 2023 report explicitly states that the policy approach has not worked. We have had 10 years of experimentation and a full Government review by the Department for Environment, Food and Rural Affairs, and the response was that the current ambiguity makes the role of the planning authority very difficult—essentially, it has not worked.
Relying on policy is also a departure from the tried-and-tested approach in which things to do with the physical structure of the building—drainage and all those matters—come under the building regulations. All drainage matters come under the building regulations, so why would sustainable drainage not be covered by regulations but be a matter of policy? That leaves the ambiguity that the DEFRA report points out, and it simply has not worked. For all those reasons, I cannot see any alternative to our pressing the new clause to a vote.
Question put, That the clause be read a Second time.
The Chair
With this it will be convenient to discuss the following:
New clause 14—Purposes and principles to be followed by parties exercising planning or development functions—
“(1) Any party exercising any function in relation to planning and development must—
(a) have regard to the purpose of the planning system outlined in subsection (2), and
(b) apply the principles outlined in subsection (3) for the purposes of achieving sustainable development.
(2) The purpose of the planning system is to promote the spatial organisation of land and resources to achieve the long-term sustainable development of the nation and the health and wellbeing of individuals.
(3) The principles are—
(a) living within environmental limits;
(b) ensuring a strong, healthy and just society;
(c) achieving a sustainable economy;
(d) promoting good governance including promoting democratic engagement and accountability; and
(e) using sound science responsibly.
(4) For the purposes of this section, ‘sustainable development’ means managing the use, development and protection of land and natural resources in a way which enables people and communities to provide for their legitimate social, economic and cultural wellbeing while ensuring the health and integrity of terrestrial and marine ecosystems and the species within them, as well as the wellbeing of future generations.”
The new clause would define the purpose of the planning system and of planning as promoting the efficient spatial organisation of land and resources to achieve the long-term sustainable development of the nation and the health and wellbeing of individuals.
New clause 41—Exercise of planning functions to be compatible with the purpose of planning—
“(1) Any person or body exercising a planning function must do so in a manner that is compatible with the purpose of planning as set out in subsection (2).
(2) The purpose of planning is to manage the development and use of land in the long-term public interest.
(3) Anything which—
(a) addresses the long-term common good and wellbeing of current and future generations,
(b) has full regard to the achievement of the commitments in and under the Climate Change Act 2008 or the Environment Act 2021,
(c) is in accordance with the United Nations Sustainable Development Goals, and
(d) delivers fair planning processes that are open, accessible and efficient,
is to be considered as being in the long-term public interest.
(4) In this section, a planning function means any statutory power or duty relating to the use or development of land in England.”
This new clause would introduce a purpose of planning and provide that anyone exercising a planning function must do so in a manner that is compatible with that purpose.
Gideon Amos
New clause 9 concerns healthy homes, and would ensure that national and local government plans are designed with a clear and explicit aim of improving the physical, mental and social health and wellbeing of people in those homes.
We cannot afford to keep building homes that make people ill. It is instructive to recall that the original planning system and the original planning Act emerged from the garden city movement, the public health movement and the desire to enable people to escape from slums. The first planning Act was the Housing, Town Planning, etc. Act 1909, which was mainly concerned with public health. We need to re-establish the link between planning and health if we are going to improve our health outcomes, prevent health inequalities and address the sicknesses in our society.
Right now, 3.5 million homes, which are lived in by around 15% of households, fail to meet the decent homes standard. That is not just a housing issue; it is a public health issue. According to the Resolution Foundation, poor-quality housing doubles the likelihood of someone experiencing poor general health. It costs the NHS £1.4 billion a year to treat to treat and costs society an estimated £18.5 billion, because it damages productivity, education outcomes and life chances. If we are serious about levelling up and addressing health inequalities, we must start with the homes that people live in.
We know that deregulation has not worked. The extension of permitted developments under the last Government allowed the conversion of offices and shops into substandard housing, flats without windows, and rooms too small for someone to stretch their arms out without touching the walls. Those were “homes” in name only. If the Government enact any further changes to permitted development rights, they should at least adopt this new clause to ensure that those homes are healthy, regardless of how they are built.
Even the revised national planning policy framework, while nodding towards health inequalities, includes no effective levers to address them or to force those making development decisions to consider health outcomes. A vague instruction to have regard to local health inequalities is simply not enough.
Similarly, while the decent homes standard refers to health outcomes, it deals only with fixing the dangers in the existing rental stock. We need to consider health outcomes during the development stage to prevent dangers, rather than considering them only when they have already become a problem. This new clause would do that. It is about designing out risks from the start and embedding health into the DNA of planning once again, and into development policy.
This new clause is backed by the Town and Country Planning Association, which says it will establish clarity on housing standards and wider development quality, setting a level playing field for industry. That is fundamental for promoting positive health outcomes across all new homes and communities.
Surely, it is time that we moved from building homes quickly and at any cost to building them well and making them healthy for the people who live in them. I urge the Committee to support new clause 9.
Ellie Chowns
I rise to speak to new clauses 14 and 41, which have been grouped with new clause 9 and address the same question of what the purpose of planning should be. To be clear, new clause 14 has the support of the Town and Country Planning Association, and new clause 41 has the support of the Royal Town Planning Institute. Indeed, there is a widely held view in the planning sector that it is necessary to have a clear statutory purpose for planning, both to guide planning decisions and to make it more publicly understandable what planning does and what it is for.
The suggestion in these new clauses is that the Planning and Infrastructure Bill should take the opportunity to set out a clear purpose for planning, based on the UN’s sustainable development principles, to which, of course, the UK Government are a signatory and make fairly frequent reference. That would offer an opportunity to build consensus around the purpose of planning in all its diverse glory—not just in plan making, but in decision making.
What we have seen with the Government’s emphasis on reframing national planning policy in the NPPF as being all about economic growth is not just bad for the environment but risks missing out on the opportunity to ensure that all planning policy and decisions are good for people, as the hon. Member for Taunton and Wellington just explained.
Creating a statutory purpose for planning would give a clear foundation for national planning policy and would help to prevent the sudden shifts in national policy direction that have been a feature of the system since 2010. As it currently stands, planning law has only an exceptionally weak duty:
“to contribute to the achievement of sustainable development”.
That duty is limited only to plan making and does not extend to decision making. That existing duty contains no definition of sustainable development and makes no reference to the internationally recognised framework of the sustainable development goals.
I feel that in framing a vision for our future development, as outlined in new clause 14, a specific requirement should be placed on the Secretary of State to have special regard for the wellbeing of present and future generations in planning. Planning decisions are, by definition, long term. The world we inhabit today is shaped by planning decisions made decades in the past, so it can only be right that we explicitly recognise the needs of children and young people in both plan making and decision making.
Although new clauses 14 and 41 have slightly different wording, their intention is effectively the same, which is to ask the Secretary of State to use the Bill as an opportunity to set out a statutory purpose for planning that specifically frames all planning decisions around the broad concept of sustainable development, as very clearly articulated in the SDGs and elsewhere.
Matthew Pennycook
We can all agree that the design and use of the built and natural environment are major determinants of health and wellbeing. That is why this important matter is addressed in the planning system through both policy and guidance such as the NPPF and PPG, which includes the national design guide and the national model design code.
The hon. Lady said that the Government have made the NPPF all about economic growth. No, we are very clear that we made changes to ensure that the NPPF is pro-growth, but the NPPF makes it clear that the purpose of the planning system is to contribute to the achievement of sustainable development, with a fundamental part of this being to support strong, vibrant and healthy communities.
Ellie Chowns
Will the Minister set out his definition of sustainable development?
Matthew Pennycook
I will do better than that and direct the hon. Lady to the appropriate paragraphs in the NPPF, which set out a clear explanation of what is meant by the purpose and the presumption that runs through it.
The framework further sets out that planning policies and decisions should aim to achieve healthy, inclusive and safe places that promote social interaction. This includes opportunities for meetings between people who might not otherwise come into contact with each other, and that enable and support healthy lives—both by promoting good health and preventing ill health, especially where this addresses identified local health and wellbeing needs and seeks to reduce health inequalities.
The framework also recognises that access to a network of high-quality open spaces and opportunities for sport and physical activity is important for health and wellbeing and it is clear that local plans should seek to meet the identified need for open space, sport and recreation facilities and should seek opportunities for new provision.
It is a legal requirement to have regard to national policies and guidance issued by the Secretary of State, such as the NPPF and the national design guide, when preparing a local or strategic plan. Such policies and guidance are also material considerations in planning decisions, where relevant. Therefore, while I understand the intent behind this amendment, we are clear that these important matters are best recognised and addressed through national planning policy and guidance, all of which must be considered in the preparation of local plans and, where relevant, in planning decisions.
I thank my hon. Friend the Member for North East Hertfordshire (Chris Hinchliff) and the hon. Member for North Herefordshire for tabling new clauses 14 and 41. They are right that planning should serve a clear purpose, which is why its purpose is front and centre of our NPPF to contribute to the achievement of sustainable development, including the provision of homes, commercial development and supporting infrastructure in a sustainable manner. What that should mean in practice is set out through the policies in the framework, and through the policies in the development plan for each area. Planning law requires that applications for planning permission be determined in accordance with the development plan in question, unless material considerations indicate otherwise. The NPPF is one of those material considerations and must also be taken into account in preparing the development plan.
Furthermore, there are already well established mechanisms in place to enable communities to engage with planning processes and shape the development that takes place in their area. This includes through statutory consultation, which local planning authorities are required to undertake, as the hon. Lady will be aware, for both plan making and when determining planning applications.
Ellie Chowns
Would the Minister care to explain why the TCPA and the RTPI feel that the existing framework is not adequate?
Matthew Pennycook
No, in short, and I will give the hon. Lady my explanation. I had extensive debates during the last Parliament with the TCPA and Lord Crisp, who is a proponent of healthy homes. I well understand where the TCPA is coming from, but I am not going to purport to set out the reasons why it thinks this issue is important. I am setting out the Government’s position, and why we think that existing national planning policy and guidance are sufficient in this area. However, I accept there may be a genuine difference about how necessary and beneficial it is to define a clear purpose of the planning system. The Government have a view on that, and I concede that the TCPA and others will continue to campaign in this area.
Gideon Amos
I simply make the brief point that there is a whole swathe of statutory requirements on planning—good design, sustainable development, mitigating climate change—and such legal duties can be included in planning legislation.
Matthew Pennycook
I venture to say that the hon. Gentleman almost makes my point for me. There is a whole layering of statute, policy and guidance, and if we had more time, we could have a more extensive debate on the merits or otherwise of including a clear purpose of the planning system. I am sure there would be lots of disagreement about what that purpose should be. However, on the principle, as I have set out, the Government think that planning policy and guidance are adequate to achieve the outcomes we all want to see achieved through the planning system.
Gideon Amos
Thank you, Ms Jardine. You have reminded me that I have the right to sum up, which I am happy to forgo in the interests of time. We will not push new clause 9 to a vote, so I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.