Planning and Infrastructure Bill

Baroness Pinnock Excerpts

Committee stage
Thursday 11th September 2025 Lords Chamber

[Lord Banner (Con)]

My Lords, I will speak on Amendment 167, which stands in my name. It would require future neighbourhood plans to be consistent with national planning policy, in particular the National Planning Policy Framework. Neighbourhood plans, once made, form part of the statutory development plan in accordance with which planning decisions must be made, unless there are other material considerations indicating to the contrary.

Typically, for their first five years, neighbourhood plans attract the protection of paragraph 14 of the NPPF. Even if the tilted balance in paragraph 11(d)(ii) applies, the proposed development is consistent with the NPPF and there is a lack of a five-year housing land supply, a development that conflicts with the neighbourhood plan will fail to get permission, so they carry real force in the plan-making and development control system. The problem with this is that, under the so-called basic conditions against which new neighbourhood plans are examined, a neighbourhood plan has only to have regard to national policy, not be consistent with it. There is a world of difference between the two. I am sure that the Minister will have regard to everything that we say in this debate, but I dare say that not everything in her response will be consistent with it. There is a world of difference.

Neighbourhood plans of course have a role to play in what my noble friend Lord Jamieson called the “pyramid” of planning policy, in giving effect to national and district policy, but they should not be able to undermine it—yet that can happen currently. From my experience at the coalface of planning decision-making, as an advocate in planning proceedings, I know that happens with real regularity. For example, a neighbourhood plan can have regard to NPPF policies on greenfield development but then impose more restrictive criteria, making it harder than national policy envisages for developers to get permission on greenfield sites. Neighbourhood plans can self-impose a housing requirement for their area that is not consistent with the NPPF’s standard method for assessing local housing need, thereby downplaying local needs within their area and stifling necessary growth.

With the greater direction on planning policy from central government under this Government—something with which I have more sympathy than perhaps some other colleagues on this side of the House—the risk of neighbourhood plans undermining national policy is even greater. This tends, in my experience, to be particularly prevalent in those areas where parish councils or other neighbourhood planning authorities are well resourced: areas which are wealthy, where the affordability gap is perhaps greatest and where the need for new affordable homes is particularly severe. It is in those kinds of areas where neighbourhood plans tend to have the most deleterious effect on delivering necessary growth.

My Amendment 167 would eliminate this issue by putting neighbourhood plans in their proper place in the hierarchy of planning policy—not letting the tail wag the dog, as so often happens. I agree with my noble friend Lord Lansley that bringing Section 98(3) of LURA into effect would also help in relation to national development management policies, but that would still leave a lacuna in relation to the NPPF. I urge the Government to consider this proposal very carefully. I also endorse the comments of my noble friend Lord Jamieson on his Amendments 150ZA and 150ZB.

[Baroness Pinnock (LD)]

My Lords, I have Amendment 185M, which proposes a vital duty to ensure due consideration of neighbourhood plans. I am delighted that, in discussions on the Bill, we are spending time considering the importance of neighbourhood plans, because they represent the heart and soul of local communities’ aspirations for their areas. They are often painstakingly developed by local people, often without much in the way of expert advice, and the plans reflect the needs, the character and the priorities they want for their areas. However, without adequate statutory backing, these plans risk being marginalised by larger-scale development decisions.

If adopted, Amendment 185M would achieve two important outcomes. The first would be that a planning authority, including the Secretary of State, would have to give due consideration to any neighbourhood plan or, indeed, any draft neighbourhood plan when making a decision on an application for planning consent. If that happens, the voices of local residents, as expressed through their neighbourhood plans, will not just be there but be factored into major development decisions. Maybe that is where I differ from the noble Lord, Lord Banner, and others in this group of amendments.

The other outcome of the amendment would be that the Secretary of State would permit a variation to a neighbourhood plan only if the variation were clearly justifiable and unlikely to compromise the overall intention of the neighbourhood plan that has been proposed in a clear manner. The amendment would safeguard the integrity of neighbourhood plans, preventing arbitrary or poorly considered alterations that could undermine their community-driven objectives.

I suppose that, in the end, it depends how we look at planning. We have had two analogies today: a planning hierarchy from the noble Lord, Lord Banner, and a pyramid from the noble Lord, Lord Jamieson, and I wonder whether using those images makes us think that the important bit is the apex. I would use a different analogy: our road system. The big NPPF, strategic plans and local plans are like major roads and motorways, but what gets us from one place to another are local lanes and byways—and that is the neighbourhood plans. Those are the ones that matter to people. Once we start thinking of pyramids and hierarchies, I think we tend to think that the top of the pyramid is the important bit, but actually it is the foundations. I have probably said what I need to say about that.

I am in broad agreement with the amendments in the name of the noble Lord, Lord Lansley. We went through all of them during the passage of the Levelling-up and Whatever Bill, now an Act. It is important that public bodies are made to assist with plan-making. If you do not, where does that end? The issue that the noble Lord, Lord Lansley, is trying to get us to think about is that frequently, in my experience, local people engage in planning only when it comes to a practical application on the table for a planning decision on a housing site, a commercial development or whatever it is.

Unfortunately, my starting point is that as a local councillor I often have to say to people that a housing site is already in the local plan and therefore the principle of development has been determined. Often, they will say, “Well, where was our say in this?” I will go through what I and others tried to engage with them and let them know what the proposals were. The difficulty that people often find is that this is a theoretical plan at a strategic level with great big sort of proposals for transport infrastructure, commercial development or housing. It is theoretical, as is local planning, even when it is allocation of sites. People often struggle to engage at that level. In this era of thinking about the creation of strategic planning and local authority local plans, we need to think very carefully about how that information is transmitted to the public.

Amendments in an earlier group on this Bill, probably two or three days ago, were about digital modelling. I think that would bring to life for people land-use planning and the allocation of sites. So that is my only difficulty with the argument made by the noble Lord, Lord Lansley.

The collective impact of all these amendments would create a more integrated and responsive planning system. If we want to put local communities at the heart of engaging with and taking part in responsible decision-making about what happens where they live, neighbourhood planning must be at the heart of that, because it enables proper democratic participation in making decisions about their area for their future. I hope that the Minister will give that a positive nod.

[Baroness Taylor of Stevenage (Lab)]

My Lords, all the amendments in this group concern the interaction between spatial development strategies, local plans and the neighbourhood planning system. I absolutely take the point that this must be a coherent system. To pick up the point made by the noble Lord, Lord Jamieson, about the scars on our backs from local plan delivery, we in Stevenage found ourselves in the crazy situation of having had three years of consultation on our local plan and a three-week public inquiry, which is quite unusual, and then having the plan held up for 452 days on a holding direction. That is exactly the kind of thing we are talking about; we have to get over these delays and glitches in the system.

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[Baroness Andrews (Lab)]

My Lords, I am intrigued by this exchange, because the thought had occurred to me that, by introducing a principle of proportionality into the legislation, we would then open the floodgates to contention about what is proportional. The question of JR seems to be immediately rearing its head. Therefore, I cannot see how, rather than simplifying the system, it would not add a layer of complication.

The argument about the CIL in relation to small developments is a different one. There is some merit in that because of the flexibility one needs for small builders. However, that is only part of an ancillary argument to the broader and slightly dangerous argument brought forward by the noble Lord, Lord Banner, in favour of over-complicating the planning system in the way he suggests.

[Baroness Pinnock (LD)]

My Lords, proportionality is in the eye of the beholder; it depends on your perspective. These ideas—proportionality, reducing bureaucracy, speeding up small developments and reducing costs—are seen from the perspective of the developer. Those are fair arguments to make, but, equally, if we are to be proportionate, we need to see the other side of the balancing scales: the perspective of those on the receiving end of the development. For example, taking away the importance of bats, badgers or whatever might reduce costs and bureaucracy and speed up development, but it would anger local people.

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[Lord Banner (Con)]

There is a definition in proposed new subsection (4) of the amendment:

“The principle of proportionality in planning means that the nature and extent of information and evidence required to inform the determination of any permission, consent, or other approval within the scope of the Planning Acts shall be proportionate to the issues requiring determination, having regard to decisions already made … and the extent to which those issues will or can be made subject to future regulation”.


Proposed new subsection (5) then says:

“The Secretary of State may publish guidance”.


It is spelled out and would be eminently capable of being applied.

[Baroness Pinnock (LD)]

My Lords, it is about “having regard to”. We have had that debate on other groups.

[Baroness Scott of Bybrook (Con)]

My Lords, I thought that everybody would be in favour of this. I begin by thanking my noble friend Lord Banner for tabling Amendment 166 and bringing this important issue before the House. The principle of proportionality deserves to stand alone in this debate, for it goes directly to the heart of the speed, efficiency and accuracy of our planning system.

As ever, my noble friend has presented the case with his customary clarity and intellectual weight; I thank him for that. He has shown that this principle is not only desirable, but essential. His amendment would embed proportionality firmly within the planning process, giving decision-makers, applicants, consultees and indeed the courts confidence that less can sometimes be more. It would allow for decision-making that is sharper in focus and public participation that is clearer and more effective.

I accept that this is a technically complicated clause, but it is also a vital one. At its core, it states that the information and evidence required to determine any planning application should be proportionate to the real issues at stake, taking into account decisions already made at the plan-making stage and recognising where issues could be dealt with later, whether through planning conditions, obligations or other forms of regulation. It is important to be clear about what this amendment would not do. It would not dilute or weaken the responsibility of local planning authorities to justify their decisions, particularly when refusing or withholding planning permission. Rather, it would ensure that planning does not become mired in an endless accumulation of unnecessary reports, assessments and duplications that add little value but cause delay and frustration.

That is why this apparently technical definition is in fact deeply needed reform. It would be a practical safeguard against a system that too often risks becoming paralysed by its own complexity. If we are serious about unblocking progress and enabling the timely delivery of new homes—1.5 million in the next three and a half or four years—and, with them, the wider infrastructure and investment our communities require, principles such as this must be at the heart of a modern planning system. The Government would do well to accept this amendment. In doing so, they would signal that they are not just merely managing a process but are serious about reforming it, serious about tackling the barriers that hold us back and serious about delivering the homes and the growth that this country so urgently needs.

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[Lord Gascoigne (Con)]

My Lords, if my noble friend Lord Banner is doing reverse declarations, I should probably just check; I think I have made them at this stage, but just in case, I declare that I am a director of Peers for the Planet, although I speak entirely independently of them on this and on all the amendments I have tabled to the Bill.

It is a pleasure to kick-start this group and speak to Amendment 170. I express my gratitude to my noble friend Lord Parkinson, who, sadly, is unable to speak to this amendment today but has assured me of his continued support despite his absence. I am grateful to all the other noble Lords who have spoken to me of late to support me on this and to the external organisations that have been in touch too.

The amendment has a series of parts to it. First, I will set out the context of why I feel something is necessary before talking through what the amendment seeks to do. The amendment relates to two aspects of planning law where a local authority receives funds through development. These are Section 106, which is part of the planning law that allows councils to negotiate money from developers in exchange for granting planning permission to offset the impact of new development and fund specific improvements in the area, while CIL, the community infrastructure levy, is a charge for infrastructure in the broader area.

For background, I first became interested in support of these forms of investment many moons ago when I worked in London City Hall alongside another noble friend who is sadly not with us, my noble friend Lord Udny-Lister. It was amazing to see, alongside many other developments across the capital, things that were being delivered through this funding. In particular, I was always struck by the work that was taking place in Vauxhall Nine Elms and the extension to the Northern line, and how that unlocked the wider development in that area.

I was blown away only recently when the Bill started when someone mentioned in passing that, last year, the Home Builders Federation did an analysis in which it calculated that around £8 billion-worth of unspent money is sitting in local authorities across England and Wales. I say that again: £8 billion. I know in today’s age of Monopoly money that may not mean much to some, but it certainly means a hell of a lot to me. Within that, there is money for affordable housing, which could unlock around 11,000 affordable homes, and an estimated £1 billion for highways and roads—I know we have elections next year; let us just dream of all those leaflets where we could have candidates pointing at the potholes being filled. There is £2 billion-worth to go towards schools and education and an estimated £850 million that could go towards recreation and play areas. In the same report, the HBF estimates that

“the total amount of unspent Section 106 contributions has more than doubled”

since the year before, suggesting a growing backlog of undelivered infrastructure. I think everyone would accept that obviously it takes time to deliver and build, but it is worth noting that

“around a quarter of the unspent contributions have been held for more than five years”,

and some councils

“admit to holding on to funds for more than 20 years”.

How did HBF get that information and is it easy for any of us to gather? It is not, and that is another part of the problem. There are, as I am sure the Minister will say, the infrastructure funding statements that each receiving authority has to publish annually. Much of the information is mandatory and some information is advisory, but it could be clearer and more transparent. The statistics that I have used earlier, where there is a breakdown, do not have to be sought through the FoI process, which is what the HBF had go through. The same goes for how long the funds have been held and why there has been a delay. In today’s data age, there is no reason why this information could not be readily accessible and available. 

Turning specifically to the proposed new clause in the amendment, noble Lords will see that it contains a number of parts tackling the challenges I have laid out. The first relates to transparency, and seeks to ensure that the data which is published through the infrastructure funding statement has even more information—information which the local authority will already have—setting out the purpose of the original funding, the amount which has been unspent and the reason for it not being spent. If there is readily accessible information, the public can see what is expected and not have to put in FoIs to understand why it is not happening.

This in itself can help the local authority deliver, but I want to explore what more can be done. The second part relates to delivery. If the government department deems that the local authority has not done enough to attempt to deliver this improvement, the Secretary of State would be able to require an authority to get on with the job, or at least make steps to deliver what has been agreed. I am pleased to see the noble Baroness, Lady Pinnock, nodding—I will come to her in a moment, but it is good that I have her support already. This in itself is not radical. It says only that the local authority should be doing what it said it would do. For the public, it would mean additional accountability.

Finally, the third part would require that, if the developer’s funds have not been spent during a previously agreed timeline, the local authority must contact the developer to ensure that it is possible to work together to deliver this service. I did contemplate, when I was drafting this, including another line in the amendment which would effectively mean that, if a local authority had failed to deliver the agreed improvement during the agreed timeline, the funds would be handed back to the developer, as I know has happened in some circumstances. I took it out in the end because, ultimately, I thought that it would be the local communities who would be losing out on the benefit and it would let the local authority off the hook. I hope that the noble Baroness, Lady Pinnock, would agree with that, given her Amendment 220.

I am pleased to see the noble Lord, Lord Best, and my good and noble friend Lord Lansley sat here. This was, I think, touched on two days ago, when we last convened on this Bill. As ever, my noble friend made the customarily brainy observation that, ultimately, this is a contract with the developer. Further, it is something that the National Audit Office looked at in only the last couple of months.

I want to be clear that I am moving this amendment not because I want us to debate the virtue or otherwise of such measures on development. I am not suggesting that we change how these charges are levied, or indeed whether they should be reduced or made higher. Most people would say that we need to be acutely aware of not making development so burdensome and costly that it happens even less than it already is. I am merely trying to find a better way to deliver what is in the existing law.

From every aspect, this seems to me to be an absolute no-brainer. For example, many developers say that they want something like this—they want people to know not just about the development that they have built but that they are contributing something to the community. Local people too want it; rather than the money sitting in a council—perhaps they do not even know about it—and gathering dust in someone else’s account, local people would actually benefit from it.

Some may think that this would put additional pressures on the local authority to deliver when it is, as we all know, facing many pressures. Obviously, we respect everyone who works in a local authority, from the leader down. I just need to look around the Chamber to know that we recognise on all our Front Benches the importance of local authorities. But these funds should be spent as they were intended. It cannot be right, to my mind, that up and down the land £8 billion pounds is sat there when it is meant to be for the people.

Without adequate information, it is not possible to ascertain why this money has not been spent in every location. In some cases, it has been made clear that it is for a multitude of reasons, but there should be an element of pressure on an authority to deliver. If it does not, it should be compelled to go back to the developer to explore what else is possible to make it happen. I am not suggesting that the developer should therefore contribute even more again. The authority should have secured enough to deliver in the first place. It may be that the agreement needs to be revised, or it could be that the development can deliver something in collaboration with the authority, or that the intended amenity is no longer required as previously intended. While that money is in limbo and not being spent, it is not delivering for the people who felt the impact of the original development in the first place.

I start from the position that growth and development are good. We need good-quality homes, more business and the economy to grow. I know some do, but I do not see growth as a bad thing. At the same time that we say that growth is good and we need it, we must say that need people to see the benefit. Yes, there will be more people buying things in shops and milling around, with more money going into the general pot.

Equally, people in those communities will have had some upheaval with the development that was there first. As a result, people may be concerned about the extra demands on local services and that their trains and roads may be busier. At Second Reading, everyone said that they broadly support growth and development. If the Government are serious about changing the public’s views on growth and development then giving communities better visibility of the benefits of that development is essential. Recent polling from Public First, published in the last few days, found that 55% of people generally support development in their area. Some of the reasons for that are that they want to see regeneration, jobs, investment, and more shops and amenities. But by far the biggest reason for people opposing development is concern about pressures on local infrastructure. That is what I am trying to fix.

This amendment is not political—it is certainly not party political. It would help the Government, as they would be able to demonstrate that growth is good and that they are on the side of the people. It would not be onerous because it would not put anything additional on to a developer. It would not stop development; in fact, I genuinely think that it would be good for development and would improve accountability and transparency. Because of that, I want it to be there for people, to deliver what they expect and deserve. I beg to move.

[Baroness Pinnock (LD)]

My Lords, Amendments 185K, 185L, 218 and 220 in my name follow on well from the amendments tabled by the noble Lord, Lord Gascoigne, which these Benches fully support. The noble Lord is absolutely right to highlight the importance of community benefits coming from development and ensuring that they are delivered. The amendments in my name would add to those that the noble Lord has just introduced.

Amendments 185K and 185L would insert new clauses after Clause 52 providing a duty to compel a complete local infrastructure. Amendment 185K seeks to make legally binding agreements associated with development consent orders or SDSs. Community benefits are the elements of a consent order that will be the last stage, almost inevitably, of implementation of a scheme. Without legal enforcement, it is possible for developers to significantly delay that implementation. Amendment 185K would empower local planning authorities to resist such moves and ensure that community benefits are fulfilled.

Amendment 185L would provide a further safeguard for local communities where a developer has signed a Section 106 agreement for the provision of a local amenity. If the amenity has not been built, the relevant local authority will have the power under this amendment to take over that responsibility but, crucially, will not be able to use that land for any other purpose, and neither will the developer. Those amendments relate to development consent orders and SDSs.

Amendments 218 and 220, although they have identical wording, relate to later parts of the Bill concerning compulsory purchase orders. Amendment 218 seeks to insert a new clause after Clause 106, relating to compulsory development orders. It would require the Secretary of State to conduct a comprehensive review of land value capture. This is a policy concept and a way of raising funds, where public authorities recover the unearned increase in land value, often created by public investment in infrastructure or planning permissions, then reinvest it in public services and projects. This ensures that the benefits of public development—I emphasise that it is public development—are shared with the community, rather than solely accruing to the private landowners. That seems fair to me.

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[Lord Jamieson (Con)]

My Lords, we have already debated some complex topics in Committee and the issue of land value capture certainly continues in that vein.

[Baroness Pinnock (LD)]

Yes, it does.

[Lord Jamieson (Con)]

Yes—maybe we need a review of the Committee stage of this Bill.

I thank my noble friend Lord Gascoigne for his amendment and agree with the spirit of his proposals. Greater transparency is positive, and most good authorities would have that information readily available. I can say that, for my own council, I could phone up and get a spreadsheet of exactly how much each development has contributed in my ward.

As an ex-chairman of the LGA, I just want to say something in defence of councils and the fact that there is a considerable sum, so to speak, sitting on the balance books. As an ex-leader, I know how difficult it is to get these big projects over the line. Even a good secondary school can cost £25 million or £30 million; you will be reliant on four or five different Section 106 payments for that, you will be waiting for grants, and you will have to get the land. These things can take three, four, five or six years. To go on to the topic of bypasses, that is an entirely different timescale. We should look not just at the quantum of money but at how difficult it is to pull these sums together and get things going.

I come to the amendments from the noble Baroness, Lady Pinnock, where I think that review might even address some of these timescale issues. The noble Baroness has raised a number of important issues, particularly around the delivery of infrastructure promised through development agreements, the use and protection of land set aside for community purposes and the broader question of how the public might benefit when land values increase sharply. I hope that the Government will reflect seriously on the principles raised and, in that spirit, I want to put a few questions to the Minister, which I hope she might be able to respond to today; if not, perhaps she could come back at a later time.

First, what assessment have the Government made of the effectiveness of existing mechanisms, principally Section 106 agreements and the community infrastructure levy, in ensuring that local communities receive the schools, highways, GP surgeries and other facilities promised? Too often, we hear of permissions granted on the basis that there will be improved infrastructure and then, over time, it is slowly whittled away and we find new housing without that infrastructure and communities having to cope with more traffic on the roads, more crowded GP surgeries, schools with portakabins and so forth. If residents see new developments going up without the infrastructure that they were promised, they will lose confidence in the planning system and will therefore fight every single development, which some of us do find. We need reforms that get trust back in the system.

Secondly, does the Minister agree that there is a risk that infrastructure commitments can in practice be watered down or renegotiated, leaving communities without these services?

Thirdly, on land value capture more broadly, does the Minister believe that the current system allows sufficient benefit from rising land values to be shared with the wider public, or does she see scope for reform, as envisaged in Amendment 218?

Fourthly, will the Government commit to reviewing international examples of land value capture—for instance, models used in parts of Europe or Asia—to see whether there are lessons that might be drawn for a UK context?

Finally, how do the Government intend to balance the need to secure fair contributions for infrastructure and community benefit while ensuring that development remains viable and attractive to investors? I appreciate that these are difficult issues, but it is important that we resolve them.

Moving on, Amendment 148 in the name of the noble Baroness, Lady Thornhill, raises a really important issue. We have a housing crisis and we need to look at all solutions that may resolve it. I commend her for once again placing the needs of young people at the centre of our deliberations. The question before us is a delicate but important one. It concerns whether planning authorities should be permitted to approve high-quality transitional accommodation for young people leaving supported housing or at the risk of homelessness in circumstances where our national space standards would otherwise disallow such provision. The case for doing so is strong. The housing crisis is not abstract; it is a real matter facing the young of today. Too many of them find themselves renting late into life, sofa surfing or returning to the parental home, not through choice but because there are no realistic alternatives. At precisely the stage in life when young people should be gaining independence, putting down roots, building families and contributing to the wider economy, instead they face barriers at every turn.

We are all familiar with the macroeconomic challenges of house prices that have outpaced wages, a lack of genuinely affordable starter homes and, in certain parts of the country, rents which are, frankly, extortionate. That is why the noble Baroness is right to highlight the importance of stepping-stone accommodation, a flexible transitional model that can bridge the gap between institutional supported housing and permanent independence.

But, as ever in this House, we must balance principle with practice. I support wholeheartedly the spirit of the amendment, but I sound a note of caution. Our space standards were developed for a good reason. They exist to prevent the return of poor-quality housing, of rabbit-hutch flats, of homes that compromise health, dignity and long-term liveability. If we are to disapply such standards in certain cases, we must do so with clear safeguards in place. So, I urge that, if this amendment is taken forward, it is accompanied by precise definitions, strict planning guidance and a rigorous framework, to ensure that genuine transitional high-quality schemes can benefit from the flexibilities proposed.