English Devolution and Community Empowerment Bill Debate
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(1 day, 11 hours ago)
Grand Committee
Baroness Shah (Lab)
My Lords, I apologise for not having been here previously. I was not a Member of the House when the Bill first came to the House, so I could not speak on it then, but I would like to speak on it today. I will set out some context about my understanding of planning and where I come from. I was eight years as a planning lead in my local council, as the regeneration and planning cabinet member. I should also point out that I am an employee of the Local Government Association and I am still a councillor, so my remarks will be based on my own opinions and experience.
I will speak on Amendment 126, and I thank the noble Baroness, Lady Pinnock, for explaining her position on her amendment. I want to challenge that perception with my experience. I do not think this amendment is needed in actual practice. The points around democratic accountability and community involvement are based within the planning system already and the planning reforms that have come through. Good local plans should have involvement of the community and are democratically voted on in a full council chamber. Should an applicant come to a local council with a planning application and in good faith follow those policies, there should be some safeguards around making sure that those plans are upheld and seen through in development coming forward.
In my experience in London, in the eight years that I was planning lead, not one application needed to be called in or used by the Mayor of London to challenge what the local council had done, because we made sure that the developer or the applicant was able to follow the planning policies. So it is important to note that, in a good planning process, the local plan should be where the heavy lifting is done through community engagement and democratic accountability.
My Lords, I have added my name to Amendment 131 in the name of the noble Lord, Lord Lansley, also supported by the noble Baroness, Lady Bennett of Manor Castle, and the noble Lord, Lord Shipley. The amendment requires local planning authorities, separately or jointly, to appoint one qualified and experienced person to be chief planner. It would give due recognition to the officer responsible for planning matters in each local authority, as promoted by the Royal Town Planning Institute—I declare that I am an honorary member of the institute. A very similar amendment was debated in the Planning and Infrastructure Bill last October. At the conclusion of that debate, the Minister said that she would
“keep this issue under review as we progress with further reforms to the planning system”.—[Official Report, 27/10/25; col. 1199.]
Our hope is that she will now be able to accept this proposition.
The case for a chief planner seems an excellent one. It would be a boost to the morale of those working in local planning authorities. It would represent an acknowledgement by the Government that planning needs to be recognised, as it once was, as a very prominent part of local government. When we debated this matter last year, it was noted that identifying the chief planner role is now more significant than it was following the Government’s action to achieve a national planning scheme of delegation for planning decision-making. Decisions on whether a planning application should be taken to the planning committee or dealt with by officers alone will depend on the judgment of two individuals: the elected member who chairs the planning committee and the chief planning officer. This important responsibility underlines the need for an enhanced status for the planning officer at the helm.
In preparation for the debate on this issue during the passage of the Planning and Infrastructure Bill, I spoke to the chief planner for Glasgow City Council, where legislation already confers a statutory status on the chief planning officer, accompanied by guidance from the Scottish Government on the duties, responsibilities, qualifications, skills and experience required. Glasgow’s chief planner told me of the importance of having one fully qualified person holding the position of chief planner, not least in enabling everyone to identify the key person responsible for planning matters. Indeed, events are now being organised that bring together chief planners from across Scotland, now that it is clear who shares this common identity. I spoke to an experienced planner in Wales who told me of hopes for a similar measure for Wales to that addressed by this arrangement. I strongly support this amendment as part of the devolution package for England.
Lord Jamieson (Con)
My Lords, I, too, welcome back the noble Baroness, Lady Pinnock—it is great to see her back here on her two feet. I shall speak first to Amendment 130 in my name and that of my noble friend Lady Scott of Bybrook. This amendment is straightforward. It provides that greenfield land should not be designated for development unless the relevant authority
“is satisfied that no suitable brownfield land is available within the relevant area”.
There appears to be universal agreement that building on brownfield first is the right thing to do. It provides a number of advantages. Not only does it save greenfield land, but it helps regeneration, utilises existing infra- structure and minimises transport distances, whether that is to work or to employment. It creates a better environment and promotes growth. While this is recognised, what does not appear to be recognised is the difficulty of building on brownfield land, particularly in high-cost areas such as London, due not only to the remediation costs but to high existing land use values.
When it comes to financing, if you are building an apartment block, you cannot generally sell an apartment until you have built the whole block, whereas if you are building on a green field, you can virtually sell house by house. Time scales tend to be longer and costs higher, due to the complexity of building in urban areas. Because of the high and early capital outlays, return on capital is often the determining factor, meaning that delays inevitably make projects unviable. In urban areas, it is all too easy to find grounds for objection, delaying the process. While a committed applicant may get through all these hoops, it can take years, by which time the project is no longer viable. Many do not even try, or they seek to build with lower quality in order to recoup their costs.
That is a particular problem in London. Last year only around 5,000 new private homes were started, against a target of 88,000 new homes. That has real-world consequences. London Councils estimates that more than 200,000 people in London are living in temporary accommodation or are homeless, of whom around 100,000 are children. That is more than 50% of the UK total. The previous Government introduced a presumption in favour of sustainable development. This has proved to be a very effective tool in delivering development in rural areas because the relatively low upfront costs and the potentially sudden significant uplift in land values where there is not a five-year supply mean that landowners and developers can profitably challenge the planning system and regularly do so. Local planning authorities generally recognise this and tend to be much more reasonable with applications because they do not want planning by appeal and the risk of unplanned and poor-quality developments. This does not appear to work in urban brownfield areas, where, as I outlined earlier, high upfront costs and the complexity of development militate against challenging planning decisions, with developers often taking the easier route of seeking greenfield development opportunities elsewhere.
If we are to get more brownfield development, the balance between brownfield and greenfield needs to be tilted more in favour of brownfield. That is why the previous Conservative Government proposed a strong material presumption in favour of development on brownfield land. The purpose of this amendment is to oblige planning authorities to look at brownfield first, to recognise the potential additional costs and timescales of brownfield development and, through the strategic spatial plan, to seek to address them. With greater certainty and speed in the planning process, we will get the homes that this country needs with more on brownfield, helping urban regeneration and protecting greenfield sites. While the Minister may say that this is already in guidance, that has been the case for many years and it is simply not delivering. It needs to be stepped up; it needs to be in legislation.
I will speak briefly to the other amendments in this group. The amendments from the noble Baroness, Lady Pinnock, reflect a shared concern that strategic planning powers must be accompanied by safeguards, transparency and engagement with local communities. The amendment from the noble Baroness, Lady Freeman of Steventon, would extend this to national parks in a similar vein. My noble friend Lord Lansley’s Amendment 131 relates to a chief planner. We believe it has considerable merit, and I have heard similar from both the industry and the planning profession, as he outlined. My noble friend Lady McIntosh of Pickering rightly raised again the issue of flooding and the role and benefits of SUDS. This is an important issue that needs to be addressed. I look forward to the Minister’s response on all these issues and, in particular, on whether this Government are prepared to take the necessary step of legislating for brownfield development.
My Lords, I will speak to the three amendments in this group, starting with Amendment 133, which has the heading
“Support for Mayoral Development Corporations”.
The amendment concerns the measures in Part 2 of the Bill that will facilitate strategic authorities establishing mayoral development corporations and development corporations of combined authorities, including combined county authorities. These development corporations can take on planning powers and land acquisition and development powers.
I believe that these development corporations could create the real alternative that we need to the current reliance of government on a small number of volume housebuilders, on which we all depend for the delivery of most of the 1.5 million homes planned for this Parliament. The hope is that these developers will plan, design and construct the majority of new housing development, achieving high housing standards and a good quantum of affordable accommodation for local communities. But these companies have often failed to achieve the speed or quality of development, let alone to include a fair proportion of affordable homes.
An alternative is badly needed and the development corporations could be that alternative. Development corporations can trace their origins to the establishment of planning and development bodies for the pre-war garden cities and then for the post-war new towns. The London Docklands Development Corporation utterly transformed that part of east London and, more recently, the London Legacy Development Corporation —the LLDC—has been doing great work in the redevelopment of the 2012 Olympic Games site and its environs.
The excellent 2018 Letwin review recommended ending our dependency on the oligopoly of developers that, entirely predictably, work at their own pace and negotiate down the standards and quotas of affordable housing to maximise their profits. In their place, Letwin advocated the establishment of development corporations that would acquire the land and capture the increase in its value when planning consent was subsequently granted. The corporation’s master plan can then parcel out the site to different profit-making and non-profit-making bodies, incorporating a mix of house types, green space, play areas and a mix of providers—housing associations, SME builders, specialist players et cetera. Development corporations will be the chosen vehicle for the delivery—
My Lords, development corporations will be the chosen vehicle for the delivery of the new generation of new towns. I was delighted to hear today the Housing Minister, Matthew Pennycook, announcing a consultation on the details of creating a development corporation for greater Cambridge. This model can be used far more widely, for other developments and area regeneration as well. But my worry is that this does not happen elsewhere, that new development corporations do not appear and that this part of the Bill—unless amended by Amendment 133—turns out to be a damp squib. Mayors and combined authorities have other important matters to handle and may fail to take advantage of the opportunity presented by the Bill to create the development corporations that really can achieve more and better new homes and communities.
Amendment 133 is intended to enable government to engage with the strategic authorities to incentivise and support the setting up of development corporations and sometimes to provide them with financial assistance, perhaps via Homes England, as well as ongoing advice on their governance, on land acquisition—including through compulsory purchase—on the creation of the masterplan and on the subsequent oversight of the management of the new development. The measures in this amendment could help to radically change the way housing and infrastructure are currently delivered. Publicly accountable bodies empowered to work for the common good could dramatically improve the speed of build-out, ensure more affordable homes and achieve the benefits of great place-making for the communities destined to live there.
Amendments 240 and 242 in my name have been grouped with my amendment on development corporations. These two additional amendments would insert a new clause with the heading
“Duty to optimise the use of public land”.
The amendments attempt to ensure that the precious asset of land owned by local authorities, including strategic authorities and development corporations, is put to best—“optimal”—use. The amendments seek to resolve long-standing complexities and arguments over the treatment of land holdings by public bodies. I pay tribute to the land economist, Stephen Hill, supported by leading real estate experts and a large number of public interest institutions, for his help in preparing these two amendments.
The amendments address the barrier of land prices being too high to allow for new developments to embrace important social purposes. The amendments would bring down the value of land by requiring public bodies to make available their own land holdings and redundant buildings on terms that make possible their best use. They would have to follow the 2018 principle of law set out by Mr Justice Holgate, which holds that true market value must reflect compliance with public policy. So this amendment would ensure that the market value of land must take account of the cost of abiding by the obligations both set out in the local plan and contained in central government’s requirements. Local authorities would have a duty to create a land use management plan for sites in their ownership to ensure that developments are ultimately for the public good.
Since the duty to optimise the use of public land would very often be of relevance when it is planned to dispose of land to others, the amendment also provides clarification on the meaning of the phrase “best consideration reasonably obtainable”, which governs the sale of publicly owned land at present. Public bodies believe that this means that they must accept the highest price offered, irrespective of the effects of this on their local community. Taking this line can prevent efforts to improve the quality of life for local citizens for generations to come.
I will illustrate this by reference to negotiations in which I was involved to acquire a redundant hospital building for an extra care housing development for older people. This use of the old building and surrounding land would provide a service that meant substantial annual savings for the NHS and care services as a result of the housing with care provision. But the NHS trust was adamant that the sale must be to the highest bidder—in this case to a developer of luxury flats, principally for overseas buyers, forfeiting the gains to the community in return for a short-term financial receipt.
I am very grateful to noble Lords for their support. The noble Lord, Lord Lansley, is as experienced as anybody in this field and my noble friend Lord Mawson brings community-based experience as well. They are heavyweights in support of my amendments, and I am most grateful for that. I am also grateful to the noble Lord, Lord Shipley, for not only supporting the amendment on mayoral development corporations but for his amendment on the optimum use of land.
I am also grateful to the noble Lord, Lord Jamieson, who rightly pointed to the role that councils must play within a development corporation set up by a mayoralty or a strategic authority of any kind. Local authorities must continue to play their part within that. He asked some important questions which I am not sure we have had very full answers to from the Minister. He basically said that central government has the power to support local initiatives and local development corporations and has strategic funds available to those mayoralties that could be used to promote new development corporations. My problem is that in a lot of cases, this will not be a priority. It will be something put to one side. Some incentive is needed to unlock that opportunity for the mayors and the strategic bodies, something that enables priority to be given to this way of producing homes that will end our dependence on that oligopoly of volume housebuilders and bring in a new way of doing things.
I am grateful to all noble Lords who have supported these two amendments, and we live to fight another day. I beg leave to withdraw the amendment.