Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Thursday 18th May 2023 Lords Chamber

On Amendments 356 and 357, the infrastructure levy will be a non-negotiable charge on the final gross development value of a completed development. It will be responsive to the market, reducing the need for negotiation. However, we acknowledge that site-specific infrastructure and mitigation are important. That is why the Government are proposing to retain Section 106 in some very limited circumstances—for instance, to secure integral infrastructure such as sustainable drainage, and to allow the negotiated in-kind delivery of infrastructure on large sites. We are consulting currently on these circumstances before we develop regulations.

[Lord Foster of Bath (LD)]

I am sorry to interrupt the Minister. She has given a number of examples. Will the biodiversity net gains required in the Environment Act 2021 be included in the exceptions she has just listed?

[Baroness Scott of Bybrook (Con)]

I think I have just said that we are currently consulting on what will be in those. I would prefer to wait until after that consultation and then we will know what is going to be in them.

Amendments 332 and 333 seek to require a local authority to prepare an assessment of its affordable housing need and for the infrastructure levy rates to be set at a level that will meet this need in full. We must recognise that the total value that can be captured by the levy, or indeed any system of developer contributions, will not necessarily match the costs of meeting the entire affordable housing need of an area. Revenues will depend on the value of development that comes forward, and that will not always match need.

Nevertheless, new Section 204G(2) in Schedule 11 requires that charging authorities, when setting their rates, must have regard to the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. That will ensure that affordable housing need is accounted for when levy rates are set. Furthermore, charging schedules will be subject to scrutiny by public examination to ensure that it does.

I want to make it clear that the list of infrastructure issues is not in priority order. Although affordable housing may be seventh on the list, that does not make it a priority. That list is also not necessarily complete.

As noble Lords will no doubt be aware, strategic housing market assessments or similar documents are currently part of the evidence base used to prepare a local plan. These are required as a result of national policy contained in the National Planning Policy Framework, rather than in primary legislation. Under the new system for preparing local plans, local authorities will continue to be required to prepare evidence regarding different types of housing need, including affordable housing. That will inform not only the local plan but the infrastructure delivery strategy.

I agree that it is important that the levy is based on up-to-date evidence of affordable housing need. It is the intention that local plans, charging schedules and infrastructure delivery strategies are prepared together. However, during the transition period, this may not always be possible. That is why our preferred approach is to use regulations and guidance to set out how evidence-based documents, including evidence on different types of housing need, should be considered. I hope I have given reassurance to the Committee that the provisions in the Bill will enable levy rates to be set with proper regard to affordable housing need, and that the noble and learned Lord, Lord Etherton, will feel able not to press his amendment.

Amendments 334 and 334A have the commendable purpose of ensuring that the levy meets its aims of delivering at least as much affordable housing as the current system, if not more, or otherwise addressing locally identified need for affordable housing. The Bill allows regulations to make provision about matters to be considered by charging authorities when setting rates, including the desirability of ensuring that affordable housing funded by developer contributions equals or exceeds present levels. This will ensure that affordable housing need is accounted for when rates are set but, if the Government are overly prescriptive about requirements, the development of an area could become unviable. That is because affordable housing need may exceed what can be captured through the levy. In such circumstances, rates would need to be set at such high levels that neither affordable housing nor market housing would come forward.

The Bill has been drafted carefully to enable local authorities to find the right balance when setting rates and capture as much value as they can while maintaining viability. As I have said, local authorities’ infrastructure levy charging schedules will be subject to public examination, meaning thorough scrutiny of how and why levy rates are set at a particular level. The infrastructure delivery strategy will also be subject to examination, alongside either a local authority’s charging schedule or its local plan. We envisage that the infrastructure delivery strategy will set out the proportion of levy payment that an authority will require to be delivered in kind as affordable housing. I hope that this provides the noble Baronesses, Lady Warwick and Lady Taylor, with sufficient reassurance not to press these amendments.

Amendments 340, 341, 344, 344A, 349 and 350 are all concerned with how local planning authorities should spend levy proceeds. With regard to Amendment 340, the infrastructure levy is an important tool to support sustainable development objectives at the local level. There is an existing requirement for local authorities, when exercising any function in relation to local plans, to do so with the objective of contributing to the achievement of sustainable development. This is set down in Section 39 of the Planning and Compulsory Purchase Act 2004 and will remain in the new plan-making system.

To create sustainable development and successful places, it is important that the infrastructure is appropriately planned for. Contributions from developers are a key tool in mitigating the impacts of new development, alongside wider government funding. The Bill provides a flexible framework to allow local authorities to decide which infrastructure projects they spend the proceeds on. When making such decisions, the Government expect local authorities to fulfil their functions by having regard to all their legal requirements in the round—for example, contributing to the achievement of sustainable development.

I turn to Amendments 341 and 344. As I hope that I have impressed on the Committee, we have designed the levy with the aim of delivering at least as much affordable housing as the current system of developer contributions, if not more. Should the levy generate more revenues than at present, local authorities would be able to choose to direct those additional revenues to meeting their local affordable housing need. Nevertheless, local authorities will need to balance this objective of affordable housing delivery with the levy’s other objectives, such as supporting the development of new roads and medical facilities. We think it is right that local authorities, which know their areas best, are best placed to make local decisions in balancing funding for matters such as affordable housing and other local infrastructure need. I hope noble Lords will therefore feel able not to press these amendments.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

[Baroness Henig (Lab)]

I am extremely pleased to support the noble Baroness, Lady McIntosh of Pickering, who introduced this amendment in, if I may say so, an extremely detailed speech, which means that I can be somewhat briefer. I think noble Lords will be pleased about that, because I have a dreadful cough which might manifest itself in the next five minutes. I apologise if it interrupts what I want to say.

I was a member of the committee that was so ably chaired by the noble Baroness, Lady McIntosh of Pickering, to carry out the post-legislative scrutiny of the Licensing Act 2003. There was an extremely strong team on that committee, quite apart from the chair and the House of Lords back-up team; Sarah Clover was an extremely helpful special adviser. I am grateful to Sarah for sharing with me her vast legal expertise on this topic, and for guiding me through the more arcane elements of this particular legal element.

The agent of change principle was one of the issues that came up during our proceedings. The Government professed themselves to be sympathetic to the problems being faced by the night-time economy. Indeed, their response to our recommendation that the agent of change principle should be adopted in both planning and licensing guidance was that they were consulting to see whether the agent of change principle should be emphasised by changes to the National Planning Policy Framework. That was in 2017; perhaps the Minister could tell me what the outcome of that consultation was, since the trail seems to have gone a little cold and I have not heard whether there has been any follow-up. I would be most grateful if perhaps the Minister could bring us up to date on that particular matter.

Now, of course, since 2017, the landscape has changed considerably for the worse as far as the night-time economy is concerned, as the noble Baroness, Lady McIntosh, quite rightly pointed out. It was decimated by Covid and is only just recovering from the impact. Along with the rest of the economy, the night-time economy faces critical staff shortages and considerable inflationary increases. Frankly, it needs all the help it can get. It needs the Government not to just pay lip service to helping the economy in these difficult times but to actually do something to assist.

This is one obvious way that the Government can help. Here is the Government’s opportunity to enshrine in primary legislation the agent of change principle, so that the interests of the night-time economy, local residents, and possible new local developments are all taken into account equably in planning decisions. It seems to me that that is a very important principle. Furthermore, it seems to me absolutely right, and very important, that this happens right at the outset of new developments, so that all interests at local level can be fully taken into account, difficulties can be pinpointed and ways to mitigate these difficulties can be identified early on.

Really, this is a very straightforward amendment to try to assist in the current process, and to improve it. Therefore, I commend it to the Minister as one which could bring great benefits up and down the country at, as far as I can see, hardly any cost. I very much hope it will be taken on board by the Government.

I will just add that the noble Baroness, Lady McIntosh, and I have some form in putting forward amendments which are then taken on by the Government and presented subsequently as government amendments. I am therefore extremely hopeful that this might happen in relation to this very constructive and helpful amendment, and I commend it to the Minister.

[Lord Foster of Bath (LD)]

My Lords, I too served on your Lordships’ Select Committee on licensing in 2017, and on the subsequent follow-up committee. I join with the noble Baroness, Lady Henig, in heaping praise on the absolutely able chairmanship of the noble Baroness, Lady McIntosh of Pickering. As we have heard, both committees concluded that it was important to incorporate the agent of change principle in planning policy and guidance.

In case anybody is in any doubt what this means, the agent of change principle ensures that a new development must shoulder responsibility for compliance when situated near, for example, an existing music venue. Similarly, if a music venue opens in an existing residential area, it would be responsible for complying with residential requirements to minimise nuisance. For example, based on this principle, an apartment block built near an established music venue would have to pay for soundproofing, while a live music venue opening in an existing residential area would be responsible for the cost of soundproofing.

The committee was therefore very pleased that the Government agreed that the agent of change principle should be reflected in the National Planning Policy Framework and in Section 182 guidance. That has now happened. However, the follow-up committee heard that the principle as it stands, reflected in those documents, does not sufficiently explain the duties of all parties involved. The committee argued that the principle needs to go further to protect licensed premises and local residents in our changing high streets, and that a lack of consistency between the planning and licensing systems—something that it believed needed to be changed anyway—has led to, for example, live venues not being guaranteed to be protected. I will give two quick examples.

The Night & Day Café is a live music venue in Manchester’s Northern Quarter. It opened in 1991 and is the venue that launched the careers of, for example, Elbow and Arctic Monkeys. In November 2021, the venue was served with a noise abatement notice from Manchester City Council. This followed ongoing complaints from local residents who had moved into a new development—warehouses converted into flats—during the Covid pandemic when the venue was temporarily closed. The case provoked a huge degree of interest. Some 94,000 people have signed a petition asking for the notice to be withdrawn, with one signatory describing the situation as

“like moving to Leicester Square and complaining about there being too many cinemas”.

Night & Day Café’s appeal over the order has been adjourned until later this year. It has still not been resolved.

The Jago is a venue in Dalston that hosts live music events, screenings and workshops. It is registered as an asset of community value and is very highly regarded in the local area. It has hosted musicians for almost two decades, but since the pandemic many surrounding buildings have been converted into residential properties, which has led to an increase in noise complaints and, in June 2022, it received a noise abatement notice. It too has been the subject of a petition trying to help, with over 2,500 signatures. Again, its problem has not yet been resolved.

The committee recommended that, to resolve issues such as these, the Government should review and strengthen the agent of change principle and consider incorporating it into the current planning reforms in the Levelling-up and Regeneration Bill. The Government did not disagree, and themselves pointed to the then upcoming Levelling-Up and Regeneration Bill as a vehicle to address these concerns. This amendment is simply by way of helping the Government achieve what they agreed was needed: greater clarity about what is expected of councils and businesses. In that light, I hope the Minister will see that the amendment is designed to support and help the Government. I hope she too will support it.

[Lord Brooke of Alverthorpe (Lab)]

My Lords, I am grateful to the noble Baroness for moving the amendment and to others who have spoken. I too was a member of the original committee, although not the follow-up committee. It is amazing to look at how life has changed so quickly since the report in 2017 and the subsequent report. Since then we have had the pandemic and a whole new experience of living in a different world entirely, including a different world of work, from what we had in the past.

Leaving aside nightlife, look at what is happening with online trading and with the high street. When one wanders around Oxford Street one sees quite large premises now empty and not being used. The Strand has been transformed completely from what it was like 20 years ago. Companies that had been there for almost a century and a half have disappeared, yet the properties remain empty. What will happen to them? Without any doubt, if they fail to get commercial operatives they will be converted into residential premises in due course.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Monday 27th March 2023 Lords Chamber

To close the circle, I will say that I live in a house that was built in 1678. When I first went to live there, many would have regarded it as a rather large heat sieve. I have gone around plugging most of the bigger rat holes that have occurred in the interim, post construction. But this is not just about energy use, although that is a very important thing. Energy use is probably the major net present value of energy component; that tends to be the situation. I see my noble friend Lord Ravensdale nodding at that. But, if we can make sure that the buildings we build today will last at least as long as some of those Victorian buildings—so they are built in a robust style with things that do not fall apart, so people feel that they are not then threatened by continual recurring costs of making good and patching up—we will tick boxes in terms of energy, on the one hand, and human satisfaction and commitment for the long term, on the other. That must make a lot of sense.

[Lord Foster of Bath (LD)]

My Lords, there appears to be a clear consensus across your Lordships’ House that we need to improve the mental and physical health and overall well-being of citizens, and that we can do that, in part, by improving the area around where people live and the homes in which they live.

Amendment 241, to which I have added my name, and which was powerfully introduced by the noble Lord, Lord Young of Cookham, deals with the issue of the area around people’s homes and how it could be improved. A very good example of that is access to nature, and it is worth remembering that the Environment Secretary, Thérèse Coffey, very recently said:

“Nature is vital for our survival, crucial to our food security, clean air, and clean water as well as health and well-being”.


So access to nature is important for health and well-being purposes, as well as the other things that she mentioned.

When I was a Minister in what was then the Department for Communities and Local Government, I had a responsibility, for a while, for green spaces, and I had an opportunity to see some tremendous work being done by some planners. However, I was very acutely aware of the enormous pressures that they were under to achieve further access to green spaces. They faced huge conflicts, where many other issues often took priority over access to green spaces, and therefore priority over citizens’ health.

As part of the Government’s recently announced plans for nature recovery—which, in part, we were discussing in relation to earlier amendments—the House will know that the Government have set a target to ensure that everyone will live within 15 minutes of a green space or water, but, unfortunately, there is very little detail expressing how that will be achieved. So one of the benefits of Amendment 241, it seems to me, is that it will help the Government achieve that particular objective. However, as others have said, in particular the noble Lord, Lord Stevens, and the noble Baroness, Lady Jones, this is about more than just access to green spaces: it is about access to amenities and being able to get to them easily by walking, wheeling or cycling, which are all forms of exercise that improve health.

It is worth noting that in 2021 Sustrans carried out a survey that found that walking, wheeling and cycling together prevented almost 130,000 serious long-term health conditions every year. Yet we are still building developments that are far from existing settlements, and where you cannot even buy a pint—perhaps I should say a litre these days—of milk, or at least you will not be able to until a later phase of development. So people have to resort to using their cars or, where it is available, public transport, thereby again reducing exercise opportunities.

Planning departments can play a role in enabling people to exercise as part of their everyday lives, but they need help. We know from the Sustrans survey that 64% of planners who responded called for “robust … guidance or regulation” to help them prioritise health and well-being. I believe that this amendment—which is based, as we have heard, on the 20-minute neighbourhood approach—would help achieve that, while also providing the flexibility that planners need because they know their area best.

As we have heard, subsequent amendments in the group look at ways in which we can improve the housing in which people live in order to improve their overall well-being. Like others, I pay enormous tribute to the noble Lord, Lord Crisp, for the work he has done leading so many of us in the direction he has taken us with his string of amendments, which I very much hope will be incorporated, in some form, in the final version of the Bill.

I will pick up on one aspect that is not covered by his amendments, but is covered by Amendment 504GF, which was very well introduced by the noble Baroness, Lady Hayman, and to which I have added my name. It does not deal with new homes being built but looks at existing properties and how they could be improved to help the health and well-being of their residents and to achieve our net-zero target.

One of the reasons I am particularly attracted to this amendment—there are many others—is that it introduces into legislation targets for improving the energy efficiency of existing properties. As the Minister knows, this is an issue that I have raised on very many occasions in your Lordships’ House. I am always pointing out that there are 17 million homes that are currently below the acceptable energy efficiency level. In one of my many attempts to do this, I referred three years ago to the report by the Climate Change Committee, UK Housing: Fit for the Future?, which assessed the preparedness of our housing stock for the challenge of climate change. It concluded that the measures to reduce

“emissions … from the UK’s 29 million homes”—

responsible for 17% of all carbon emissions—had

“stalled, while energy use in homes”

had increased, and adaptations of housing stock to meet the impact of climate change were

“lagging far behind what is needed to keep us safe and comfortable”.

Three years on, the CCC’s most recent report shows that the situation is still dire. The decline in work to retrofit existing properties has hardly been halted. It says:

“Installation rates for building insulation have plummeted over the last decade, and are far below the level they need to be”


to deliver on UK climate targets.

Of course, as I have said in your Lordships’ House on previous occasions, I welcome a number of recent initiatives by this Government—ECO+, for example, and the announcement only three days ago of £1.4 billion to improve energy efficiency in social housing, although it is from a pot that was previously announced—and I look forward to hearing plans from the newly established Energy Efficiency Taskforce.

Housing: Conditions in Rented Sector

Lord Foster of Bath Excerpts

Thursday 16th March 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I thank the right reverend Prelate. If he looks at the LUR Bill, he will see that we are dealing with this exact problem at the moment. It will probably be debated next week in this Chamber and I look forward to being able to tell him further about what we are going to do.

[Lord Foster of Bath (LD)]

My Lords—

[Lord Carlile of Berriew (CB)]

My Lords—

[The Earl of Courtown (Con)]

My Lords, I think it is the turn of the Liberal Democrats.

[Lord Foster of Bath (LD)]

My Lords, during the passage of the Social Housing (Regulation) Bill, your Lordships’ House voted for an amendment that would have reduced energy costs in social housing. In the other place recently, without any explanation or debate, that amendment was removed. Is that not a gross discourtesy to this House? Can the Minister now explain why that amendment was removed?

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Wednesday 15th March 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I will make a brief contribution because tonight, in East Suffolk Council, where I now have the great privilege of living, there is to be a debate on the very subject of democracy at local government level. I have just received a copy of the speech that will be given by David Beavan, the councillor for Southwold ward. He will say—he has not yet said it—the following:

“The Conservative party won the last election with 38% of the vote, but this gave them an overwhelming majority with 71% of the councillors. We are not allowed to debate the unfair first past the post system but we can debate ways to mitigate it so that the silent majority of non-Conservative voters are represented … This administration used its majority as a sledge hammer to close down debate in this council and to pack every committee and outside body with their own … We believe there is a better way to run this council … Where all members of every party have an opportunity to work for East Suffolk … Where debate is open and considered not predetermined by a party political whip … Where opposition members are given a fair chance to make their point in meetings … Where officers are not dragged into petty party politics … Above all we need a Scrutiny committee that is not directed by the administration. An opposition chair would ensure this independence … East Suffolk today faces big challenges. We need to work together as a community and a council. We should set aside party politics after the election and knuckle down to govern fairly for all of East Suffolk.”


I entirely agree with him, and I note that in an earlier discussion on Monday the noble Earl the Minister said clearly that this Bill is all about getting rid of “central diktat” and giving local people an opportunity to have a say. This amendment from my noble friend gives an opportunity to do that. I hope it will be supported by the Government.

[Lord Stunell (LD)]

My Lords, we have had a short debate and it will be very interesting to see how the Government respond to it. I wait in hope that something can be done, as my noble friend said in moving this amendment, to turbocharge local democracy. There is no doubt that it needs turbocharging: we see elements of its alienation every day of the week. We are moving closer and closer not to better local democracy, but to perhaps better but certainly more intense local administration. I have spoken on that already today. My noble friend made the extremely powerful point, and certainly a very good debating point, that if ID cards are good enough for Northern Ireland, surely a proportional voting system is good enough for England. I hope the Government have a really plausible reason for not accepting that argument.

My noble friend Lady Harris has accurately reported, I am sure, the views of Richmondshire District Council—incidentally, it is in North Yorkshire, which we were of course discussing earlier today—and the value of every vote being equal and the opportunities for regeneration that flow from that. The noble Baroness, Lady Bennett of Manor Castle, drew our attention to some examples of bad practice and pointed out the damaging impacts of single-party rule. Since we certainly think it is inappropriate, to say the least, in North Korea, it ought to be inappropriate in our town halls in England as well. Restoring that element of local choice and broader representation ought surely to be one of the objectives of this levelling-up Bill.

My noble friend Lord Foster of Bath drew attention to the not untypical situation with East Suffolk Council whereby a party with less than 40% of the vote finishes up with over 70% of the representation and therefore of the decision-making. We had debates earlier about the Government’s intention, set out clearly in the Bill, to suspend the operation of proportionality in local authorities in the formation of CCAs. I hope the Government Front Bench will take note of some of the malign consequences that can arise when proportionality is not adhered to. Of course, in terms of representation, a sense of alienation can grow in voters, and in non-voters but electors, who repeatedly say, “It’s not worth voting because they always get in”. That happens time and again, particularly in local government. Surely, we have to make sure that the voices of the silent ones—the voices being suppressed by that system—are in fact heard.

I want to hear the Government say, “There are things about this we do not like; we do not really want anything other than first past the post; but we do recognise that local communities, local councils, should have the right to choose for themselves the voting system they use”. My noble friend has set out in considerable detail a very compelling case: we are not suggesting throwing the whole system up in the air, but simply using systems already in operation in various parts of the United Kingdom, including in England.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Monday 13th March 2023 Lords Chamber

Moved by

[Lord Foster of Bath]

70: Clause 8, page 8, line 18, at end insert “but no more than any other constituent council”
Member’s explanatory statement
This amendment ensures that any constituent council has, as part of a CCA, the same number of appointed elected members as any other constituent council.

[Lord Foster of Bath (LD)]

My Lords, in moving Amendment 70 I am extremely conscious that it is a probing amendment to look at one aspect of the Government’s thinking on the creation and operation of CCAs. However, in many ways it is also a paving amendment for many of the other amendments in this group. Clause 8 confers on the Secretary of State, subject to the consent of the constituent parts of the proposed CCA, numerous powers in relation to it, ranging from membership and voting powers to the appointment and function of an executive of the CCA. It also covers the overview and scrutiny arrangements as well as the appointment of a mayor, where relevant, and of non-constituent and associate members. So it is very wide-ranging and to some extent, the amendments in this group touch on many of those issues.

It is important to begin by making it clear that, for we on these Benches, at least one issue is really important. Given their crucial role, not least in planning and economic development, we believe that district councils should be full members of any CCA. We have already moved amendments to that effect, as have other noble Lords, and we will continue to do so at later stages of the Bill. I note that, in Amendment 81 in this group, my noble friend Lady Scott of Needham Market and the noble Earl, Lord Lytton, are also proposing a role for parish councils.

We have also been clear that the voting membership of a decision-making body such as a CCA should comprise only those who have been elected to it or one of the constituent organisations that makes it up. In simple terms, we believe that those who have to abide by a law or decision should have some say in deciding who makes those decisions; I certainly believe that that should be true of a second Chamber of this Parliament. For those reasons and many others, as my noble friend Lady Scott will no doubt discuss in a few minutes, we oppose the appointment of non-constituent and associate members to a CCA. We certainly feel, as expressed in Amendments 155 and 156 from my noble friend Lord Shipley, that if they are put in place, these unelected CCA members should not have a vote.

Even if we reach agreement on who should be constituent members of a CCA, there remains the crucial question of what the voting arrangements should be. As I mentioned in an earlier debate, I appreciate the concern that if, for example, district councils are allowed to become constituent members of a CCA, they could, because of their number, always outvote the other constituent members and, in effect, have a veto. It is therefore important that we are clear about how the voting arrangements will be made. Incidentally, I entirely accept that my probing Amendment 70 could lead to that very problem of district councils having a veto.

The Minister has already made it clear that the Government intend to allow CCAs to determine their own arrangements where possible. We broadly agree with this approach, but surely we need to be clear whether that freedom will extend totally to, for example, voting arrangements, without any restrictions on local decision-making. After all, subsection (2)(b) of Clause 8, which refers to the Secretary of State’s power to make regulations, states that regulations may—so it is possible for the Secretary of State to do this—cover

“the voting powers of members of the CCA (including provision for different weight to be given to the vote of different descriptions of member)”.

Like my noble friend Lord Stunell, who will go into more detail on this at a later stage, we are concerned that, for example, setting aside a requirement that the CCA need not be constructed in accordance with the balance of political representation among the constituent members could lead to serious problems with its voting on the issues on which it makes decisions. Not limiting the number of associate members—who could, as we have heard, be given a vote—as per the current arrangement could also have a significant impact on the voting decisions of the CCA.

I am absolutely clear that while we support the Government’s principal intention of ensuring that decisions on these matters are made by the CCA itself, we need to be very clear what freedoms it will really have and what the implications of Clause 8(2)(b) really mean. No doubt, that clarity will come when the Minister winds up. I beg to move.

[Baroness Scott of Needham Market (LD)]

My Lords, I wish to speak to Amendment 81, which is the first of a number of amendments I have tabled that relate to the powers and duties of town and parish councils. In doing so, I declare an interest as the president of the National Association of Local Councils. These councils are well understood, well established and are a serious part of the fabric of local government. In some cases that is by virtue of size—they spend significant amounts of money—but in others it is about the role they play as, if you like, a convener of local interests, creating that sense of place which we know is so important in any venture that we might call levelling up.

When you talk to Governments of any persuasion and their Ministers, they always say nice things about this sector. They always say that it is very important and does great work, but when the legislation is drafted and the cheques are written, it always feels as though it is at the back of the queue. This is an example of new structures being created that, arguably, are to some extent devolutionary, but there is no mechanism for onward devolution to the town and parish council sector. So, this amendment simply argues that when it comes to the overview and scrutiny arrangements for the combined county authorities, there ought, as of right, to be a requirement for some involvement of this sector, perhaps through the county associations. Having this tier of local government represented would actually strengthen the overview and scrutiny function overall, and it would certainly strengthen the sector.

--- Later in debate ---

[Lord Foster of Bath (LD)]

My Lords, the whole House is inordinately grateful to the noble Earl the Minister for genuinely listening to what people say and seeking to provide responses to our questions. Nevertheless, he has just acknowledged how complicated this Bill is and how much murk still remains to be resolved. We are therefore particularly grateful that he acknowledges that these issues can be raised again not only at a later stage but in the round table that he now assures us has moved some way towards being formed.

I do not want to dwell on all the points raised, but I pick up very briefly on the contributions by my noble friend Lady Scott and the noble Earl, Lord Lytton. Both have been doughty campaigners for parish councils and the crucial role they often play in our communities, not least, in many cases, in driving forward neighbourhood plans but, as my noble friend pointed out, through their convening powers. It would be helpful to hear in more detail the Minister’s thoughts on where exactly he sees them fitting into the structure.

The key thing that has yet again been raised today, even though it is not directly related to any of the amendments in this group, is the passionate belief in many parts of your Lordships’ House that district councils have a crucial role to play. It was great to hear the noble Lord, Lord Mann, a passionate supporter of Bassetlaw District Council, promoting the contributions that all district councils can make.

We will have an opportunity to raise these issues again in considering other groups. However, while the Minister has said time and again that he is great believer in devolution of power and getting rid of central diktat—I applaud that approach—I say carefully to him that, unless we get the mechanisms right and are clear about exactly what the Government will or will not permit through the various regulations, there is a real danger that we could move from central diktat to party-political diktat in a particular area.

Much confusion still remains. The noble Earl, in his letter to many of us, said that the enfranchisement arrangements for other categories of membership would be determined through a unanimous decision-making system whereby all constituent parts would have a clear vote. However, Clause 10(2), for example, does not say that there has to be unanimity on such decisions. We can deal with issues such as this at a later stage, and my noble friend Lord Stunell certainly intends to probe the Minister in more detail. Given that we have these further opportunities, I beg leave to withdraw the amendment.

Amendment 70 withdrawn.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Wednesday 22nd February 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I want to talk briefly about the granularity of data, the choice of data and its use, and the need for independent assessment and evaluation of the use of that data in judging the success or otherwise of attempts to level up. On Monday, I raised the need for granularity of data, particularly in relation to my concern about the disparities between urban and rural areas. I am very pleased to see that Amendment 10—I support my noble friend, and my name is on the amendment—proposes that the granularity could be done perhaps at local authority level and even, where possible, at postcode level. The noble Baroness’s Amendment 58 talks about data collection at the level of

“regions, counties, councils and council wards”.

We should all be thankful to the Minister, because she has already very helpfully responded to many of these concerns in a response on Monday to my request for granularity. She agreed with the sentiments but then went on to provide rather more detail, which she said was very complicated. I promised to go away and put a wet towel on my head and look at it in detail afterwards, as she promised she would—I suspect we both now have. It is very interesting to read. She told us what is happening within government to better identify geographical disparities, and talked about

“data visualisation and experimentation techniques”

and

“a transformative data analysis strategy at subnational level.”

I still do not really know what that all is, which is the point of what I want to say, but crucially, the Minister said that:

“The spatial data unit will also consider the differences between geographical areas, such as regions, counties, councils, and even down to council wards, according to the needs and objectives of specific missions or policy areas.”—[Official Report, 20/2/23; col. 1482.]


We should be enormously grateful that that is on the record.

However, the problem is that we also have to be very clear about how the data is going to be used. We might collect it at a granular level but I hope we will also be able to have more detail about how the data is going to be used. Why? Because, sadly, there have been examples where this Government claim to have collected and used data but that does not really seem to follow.

I note, for example, that the current Prime Minister, when he was Chancellor of the Exchequer, announced a tranche of the levelling-up fund allocations. In the press conference that followed, when he was asked how this money had been allocated, he said it was

“based on an index of economic need which is transparently published”.

However, when people went to look for this transparently published documentation, they could not find any. The Treasury had to come up with a statement afterwards to say that the information was coming “shortly” but was unable to say when that would be. When at a later stage people questioned how this all worked, the Treasury spokesman, in explaining the bandings which had apparently been used to allocate how the money was spent, went on to say:

“The bandings do not represent eligibility criteria—and money will be allocated to the areas most in need. Further technical details will be published by the government in due course.”


When, in due course, it eventually came out, and there were queries about all this, the Treasury announced that the factors used included

“strategic alignment with government priorities”,

whatever that may mean.

My point is that it is really good that we are going to have granular data, and I think we should specify in the Bill how that is going to be done. But we also need openness and honesty about how the data is going to be used. That is why the other amendment from the noble Baroness, Lady Hayman of Ullock, is so important, talking as it does about the independent body that will analyse this information.

My final point is simply that I absolutely accept what the Minister says about her concern about putting all the missions on the face of the Bill. But it seems to me that the public have a right to know the key areas of concern that we will use to judge whether levelling up between the various areas of the country has taken place or not. My noble friend on the Front Bench used a very good phrase: she said we should have it in “headline form”. That is really what my noble friend’s Amendment 10 does. It makes a suggestion; I am sure he would accept it is a starter for ten. Other issues have been raised; I could raise, for instance, the issue of home insulation, which is a hobby-horse of mine. In any case, we have time, as my noble friend said, between now and Report to actually get consensus across the House on what the key headline issues are that we are keen to tackle. We can then have separate debates elsewhere about the details. So I think all three amendments in this group cover these three crucial areas of having granularity of data, having a clear understanding of how the data is going to be used and independently evaluated, and what the data is actually going to cover: what are the key issues of concern that we have in the whole effort to level up?

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I am beginning to think that eight days is not enough for Committee. I am sorry about that, but it is such an exciting Bill and we all have so much to say. The point about which data to collect is interesting, because, of course, there is data that is extremely negative and it would be difficult, perhaps, to find a category for it. For example, so far, a huge amount of money has been wasted by the levelling-up funds, because local authorities have often used a lot of time and energy putting together bids that have failed. Are the Government going to collect the data on that waste of money, which obviously —in these days of 13 years of underinvestment in councils and the loss of EU structural funds—means a lot to councils and will affect the service that they can give to their residents? There has been a failure of levelling up already and perhaps we are not measuring everything we should be measuring.

There are a couple of dozen local authorities run by Greens as part of the administration. Many Green councillors have expressed their dismay to me at the level of waste in the levelling-up fund, and it very much concerns me. Instead of taking a long-term view of what is needed, the Government sought quick wins, quite understandably; I can entirely support that idea. However, they demanded submission of “shovel-ready projects”, combined with tight deadlines for submissions, so local authorities had to quickly piece together bids, rather than taking the time to develop what they might have thought were the most impactful and valuable project proposals for their areas. Personally, I see this as a continuation of Boris Johnson’s natural urge—which I saw quite a lot of when he was Mayor of London—to splash money around on grand ideas that grabbed headlines but often failed to come to any sort of fruition.

So far, I do not think the levelling-up fund has been value for money, and it has not been targeted at areas that need it most. There has been a lot of political decision-making about where the funds go, and it is alleged that they have disproportionately benefited Conservative-voting areas. The Government now need to give local authorities a long-term view of what is needed and let them put together long-term proposals. They need capital funds that will be made available over a period of years and support them to dig deep into what would benefit their own areas, because they will know best. I can see a lot of late nights in my future with this Bill, and I do hope that the Government will listen to what we are saying.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I do not know, but the council is already in train and working. On the fact that it has not come to Parliament, I will ask what the remit has been for the past year. It may have been a remit just to get together on some early work, but I will get an answer to my noble friend on that.

[Lord Foster of Bath (LD)]

I am sorry to interrupt because I know that the Minister wants to get on, but can she tell us at least whether the advisory board has expressed any view on the levelling-up Bill before us, and whether she will make that public?

[Baroness Scott of Bybrook (Con)]

I do not know whether it has any views on it at the moment, but I will ask that question.

Alongside this, my department has also established a new deep-dive team, to take a new place-based approach to policy-making. This is quite important. This team gets to know specific places. To date, these places have included Blackpool and Grimsby. It combines the granular data that we are beginning to put together with local knowledge, to identify a set of policy interventions to make a noticeable difference to the people living there.

The noble Baronesses, Lady Taylor of Stevenage and Lady Young of Old Scone, brought up individuals. We go down to council wards, but there are people. We are talking about people. The levelling-up White Paper is a plan for everyone. The focus is on the left-behind places, but the ultimate goal of levelling-up policies is to improve the living standards and quality of life of the people living in those places. This means that where individuals with certain protected characteristics are disproportionately affected, they will benefit from the whole levelling-up programme policies and systems change. For example, some ethnic minority groups have, on average, poorer health outcomes. They are more likely to be living in non-decent homes. By aiming to reduce these disparities across the UK and in places where they are most stark, levelling up will have a positive impact on the places and, as importantly, on the people.

There were a number of questions or comments on the levelling-up fund, which I would suggest are probably for the sixth group of amendments. However, I will answer a couple of them; they were all more or less the same views. The levelling-up fund index identifies those places in greatest need, as we have heard, of this type of investment. In this round 2, 66% of funding has gone to category 1. Those are the places of greatest need. Over rounds 1 and 2, 69% of funding has gone to category 1. I can also say that in investment per head of population, the highest investment went to Wales, followed by the north-west and then the north-east. The money is going to the right places but that is just as an aside because this will come up again in group six.

This approach, set out in the Bill, sets a clear, uncluttered and long-lasting framework for measuring the progress of levelling-up missions. I hope that this provides the noble Lord sufficient assurance to withdraw his amendment.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

Committee stage
Monday 20th February 2023 Lords Chamber

Moved by

[Lord Foster of Bath]

3: Clause 1, page 1, line 9, after “disparities” insert “including between predominantly urban and predominantly rural areas”
Member's explanatory statement
This amendment ensures that the objectives the Government intends to pursue to reduce geographical disparities will include the reduction of disparities between predominantly urban and predominantly rural areas.

[Lord Foster of Bath (LD)]

My Lords, the amendments in this group are about ensuring that the levelling-up agenda addresses the needs of rural and coastal communities, which many of us believe have been left behind—some would say ignored—by the policies of successive Governments, which have focused on the needs of urban communities. In moving Amendment 3 and speaking to Amendments 11, 12 and 35 in my name, I thank other noble Lords who have supported them. I certainly support the other amendments in this group, which complement my own.

At Second Reading, I reminded your Lordships that back in 2019 I chaired the Select Committee on the Rural Economy. Our inquiry found that rural communities and the economies in them have been ignored and underrated for too long, with government policies designed primarily for urban areas. Compared with such areas, we discovered that in rural ones, house prices were higher while wages were lower; council taxes were higher while Governments’ support for their councils was lower; funding per head for services such as healthcare, policing and public transport was lower, despite costing more to provide; and broadband business support, banking and other services lagged way behind those in urban areas. We concluded that we must act now to reverse this trend, and that we can no longer allow the clear inequalities between the urban and rural to continue unchecked. Yet there is no evidence that any serious efforts have been made to address these inequalities since that time.

More recently, writing in the House magazine just last month, the Conservative MP for North Devon, Selaine Saxby, wrote,

“there are far too many left behind rural and coastal communities, often overlooked by government policies.”

This view is echoing the April 2022 report by the APPG for the rural powerhouse, Levelling Up the Rural Economy, which said:

“The overwhelming consensus was that no government in recent memory has had a programme to unlock the economic and social potential of the countryside.”


The Rural Services Network has illustrated this brilliantly by using government headline metrics to show that, if all rural areas together were treated as a single region, their need for levelling up would be greater than that of any other region in the country.

Despite Selaine Saxby’s call for

“more consideration of rurality when considering policies and funding decisions”,

it is clearly not currently happening. As the RSN has shown, current government-funded spending power for predominantly rural areas lags way behind that for predominantly urban areas. Government grants per head for services such as police and public health—and even from the UK shared prosperity fund, excluding Cornwall—are lower in rural areas. A different approach, one that takes account of the very special and varied needs of rural and coastal communities, would be of enormous benefit to not just the individuals living in such communities but to the overall economy of the country.

As the APPG report points out, at present,

“the rural economy is 18% less productive than the national average. Closing this gap would be worth up to £43bn in England alone”,

with

“the creation of hundreds of thousands of good jobs in areas so often blighted by underemployment”.

So it would have been reasonable to assume that, as a major element, the Government’s levelling-up agenda would have had measures designed to close that gap. That is what they actually promised. When the White Paper was published last year, a departmental spokesman said:

“Rural areas are at the heart of our levelling-up agenda. Our White Paper is a plan for everyone, including rural communities who rightly expect and deserve access to better services, quicker transport and quality education.”


I believe that the Government also said this in their second report on rural proofing, an issue to which I will return in a second. They are fine words, but it appears that they are not backed by action. There is nothing in the Bill or the Explanatory Memorandum that refers to rural issues. There is no evidence whatever that the Bill has a focus on the need to level up between urban and rural, as either an objective or part of a mission.

Amendments 3, 12 and 36, together with Amendment 5 in the name of the noble Baroness, Lady McIntosh of Pickering, are needed to ensure that the Government’s stated intention becomes part of the legislation and hence a driver for measures to close the urban-rural gap. They insert the reduction of the disparities between urban and rural as an objective and part of the missions. A similar case can be made—and, no doubt, will be, by the noble Baronesses, Lady Hayman of Ullock and Lady Taylor of Stevenage—for coastal communities, as covered in Amendments 53 and 488.

In addition, two other things are needed. We have to ensure that all the measures taken by government, whether arising from the Bill or any other, take account of the often very different needs of rural communities. That requires ensuring that all go through a process of rural proofing. The Lords Select Committee report that I referred to earlier called for the whole process of rural proofing to be significantly improved. In responding, the Government agreed. They accepted that “more can be done” and promised the development and promotion of a greater understanding across departments of the opportunities and challenges in rural areas, the development of supporting resources and the establishment of a rural affairs board.

--- Later in debate ---

In light of these efforts and commitments, I ask the noble Lord to withdraw his amendment.

[Lord Foster of Bath (LD)]

My Lords, I begin by thanking all noble Lords who have spoken in the debate, particularly the noble Duke, the Duke of Montrose, who referenced the amendment from the noble Baroness, Lady McIntosh of Pickering, which, together with my Amendment 3, focused the debate very clearly on the difference in the current approach between urban and rural.

I was heartened by a couple of things the Minister said. First, I was genuinely pleased by her remarks about the data transformation programme that is taking place. Like her, I might have to put a towel over my head later tonight in order to read the detail and understand it. Talk about timely data, granular data, harmonised data at a subnational level, and then gathering, storing and manipulating it is great—as long as that data is at a very refined subnational level, not just a regional level. However, I think that is what the Minister said we are going to get.

I was also heartened by the Minister’s reference to the need for different solutions in different places—a place-based approach, which I think is fundamental. The noble Baroness, Lady Bennett, talked about problems in rural areas, such as with transport and education. I was involved, not very many years ago, in a conversation with a group of people looking at how to deal with FE college students in rural areas being unable to get to work experience placements. The solution arrived at was giving free bus passes to all 16 to 19-year-olds, which sounds great—until there are no buses. A solution was found in some rural areas and it is still operating: “wheels to work”. It is the local solution that is necessary, but if that is going to happen, there needs to be local leadership and a fair funding formula that enables the funds needed.

Notwithstanding the list the Minister just gave us of things she claims the Government are doing to help rural and coastal areas, the RSN analysis clearly shows that they are still losing out. So, while we welcome some moves in the right direction, they do not go far enough. I will of course withdraw the amendment for now, but so far I have been given no justification whatever for why, since the Government claim to believe in what I am saying, they are not prepared to put this on the face of the Bill. For the time being, I beg leave to withdraw the amendment.

Amendment 3 withdrawn.

Levelling-up and Regeneration Bill

Lord Foster of Bath Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I, too, congratulate both maiden speakers on excellent and powerful contributions.

As others have said, the Bill as it stands leaves a great deal to be desired. Opportunities to deal with many issues have been missed, from addressing, for instance, how our creative industries could play a greater role in levelling up to including reference to climate issues in the planning elements of the Bill. Smaller but important issues have been missed, such as electrical safety in short-term lets. Electrical Safety First points out that there is an alarming situation where STLs are not covered by the same electrical safety regulations as traditional holiday accommodation, rented accommodation or STLs in Scotland.

However, those and many other issues can be covered by amendments. I want to concentrate on one issue that has not yet been mentioned: the failure of the Bill to tackle inequalities between rural and urban areas. Back in 2019, I chaired the Select Committee on the Rural Economy. Our inquiry found that rural communities and the economies in them have been ignored and underrated for too long, with government policies designed primarily for urban areas. Compared to such areas, we discovered that in rural ones: house prices were higher while wages were lower; council taxes were higher while government support for their councils was lower; funding per head for services such as healthcare, policing and public transport was lower despite costing more to provide; and broadband, business support, banking and other services lagged way behind those in urban areas. The committee concluded:

“We must act now to reverse this trend, but we can no longer allow the clear inequalities between the urban and rural to continue unchecked.”


It is clear—at least to me—that any Bill that aims to level up should have, at least as one of its key components, steps that will start the process of levelling up between urban and rural communities. The challenge now is well illustrated by recent work by the Rural Services Network. Using government headline metrics, it demonstrated that if all rural areas together were treated as a single region, their need for levelling up would be greater than any other region in the country. However, the Bill does nothing to address that challenge, which is especially surprising given the promises made by the Government when they responded to that Rural Economy Select Committee report. Sadly, in their response they rejected our key proposal for a comprehensive rural strategy but promised—back in 2019—that all future policies would be rural proofed.

I have therefore looked for evidence that the Bill before us has been rural proofed. There is nothing in either the Bill itself or the Explanatory Memorandum that refers to rural proofing. The evidence of any desire by government to begin the process of levelling up between urban and rural communities, whether in the Bill or in any other actions, is hard to find.

Analysis by the Rural Services Network also showed that current government-funded spending power for predominantly rural areas lags way behind that for predominantly urban areas. Government grants per head for services such as police and public health and even from the UK shared prosperity fund—excluding Cornwall—are correspondingly lower in rural areas at a time when, for example, house prices are rising faster than elsewhere.

Therefore the challenge remains, despite even more recent promises that we heard when the White Paper was published. In June last year a departmental spokesman said:

“Rural areas are at the heart of our levelling-up agenda. Our White Paper is a plan for everyone, including rural communities who rightly expect and deserve access to better services, quicker transport and quality education.”


I have two simple questions for the Minister. Where is the evidence that rural areas are at the heart of the levelling-up agenda, and what happened to the requirement to rurally proof Bills, including this one? It appears that once again our rural communities are being left behind.

Social Housing (Regulation) Bill [HL]

Lord Foster of Bath Excerpts

Report stage
Tuesday 18th October 2022 Lords Chamber

[The Lord Bishop of Chelmsford]

My Lords, it is good to see this important Bill continuing its progression through this House. I begin by declaring my specific interests as the Church of England’s lead bishop for housing and as a beneficiary of the Church Commissioners.

I add my support to Amendment 1 in the name of the noble Baroness, Lady Pinnock. As the energy crisis unfolds, it is surely wise to address the issue of energy efficiency in the social housing sector in a systematic way, by including it as a fundamental objective. Many who live in social homes are among those with the lowest incomes, so they are already struggling to meet their energy bills right now. In addition to immediate relief and support, we also need to address energy efficiency to ensure true affordability in the long term.

Amendment 2, tabled by the noble Baroness, Lady Pinnock, would secure continued accountability on progress to remove dangerous cladding and the remediation of fire safety work—an important part of ensuring that a tragedy such as the Grenfell tower fire cannot happen again. As the Archbishops’ commission on housing, church and community rights states in its Coming Home report:

“The Grenfell victims and bereaved families deserve a profound change of culture in the housing sector to make the safety of residential housing stock an absolute priority.”


I also support Amendment 14, tabled by the noble Baroness, Lady Hayman. A government strategy setting out a plan of energy demand reduction for social housing will be a significant step towards reducing energy bill costs and meeting our net-zero targets. Our national commitment to net-zero carbon emissions by 2050 will be achieved only if we are intentional about building to high thermal efficiency standards.

I very much look forward to the Government’s response on these important amendments, and to working with noble Lords across all Benches to address this nation’s housing crisis. Clearly, there is consensus across the House on the importance of addressing the major problems we now face in our social housing sector.

[Lord Foster of Bath (LD)]

My Lords, I too am delighted to support Amendments 1 and 14, and the others in this group.

As we have heard from other speakers, we are in an energy crisis. Despite the welcome government support —we will be debating that in more detail tomorrow—it is the least well-off who will be hit hardest, many of whom live in social housing. As the noble Lord, Lord Bourne, has pointed out, one of the best ways of helping such people is by reducing their demand for energy in the first place, not least by improving the energy efficiency of their homes, reducing bills, reducing excess winter deaths, improving the quality of life and, as the noble Lord pointed out, increasing the number of jobs.

The Building Back Britain Commission argues that energy bills can be reduced by at least £200 every year by improving a home’s energy performance from level D to C. Many homes start at an even lower level, so the savings would be even greater. Improving the energy efficiency of social housing makes sense, so I am delighted that the Minister has agreed to support the amendment of my noble friend Lady Pinnock, which makes it a fundamental objective of the regulator to include reference to energy efficiency.

However, by itself, that does not go far enough. Amendment 14 fills the gaps, not least by requiring the Government to publish a strategy on reducing energy demand for social housing properties within 12 months of the Bill being passed, with appropriate consultation; requiring a programme to support social housing providers to encourage energy demand reduction; and, crucially, establishing in law a target which ensures that all social housing properties achieve EPC level C by 2030.

I have spoken many times in your Lordships’ House about the need to establish the Government’s own energy efficiency targets in law. I have argued that the retrofit industry that will deliver the Government’s energy efficiency targets, but which has been let down by numerous failed schemes, has lost confidence. The industry has shrunk and energy efficiency work has fallen dramatically. It is the industry itself that argues that to be persuaded to invest in research, training and equipment, it needs the confidence that putting targets into legislation would give.

--- Later in debate ---

Social landlords must balance many competing pressures to ensure that tenants live in safe, decent and well-maintained homes. It is of the utmost importance that the standards we set are agreed through consultation with that sector. Although the noble Baroness’s amendment contains a requirement to consult, this is not on the standards themselves. Imposing overly burdensome standards may risk resources being diverted from other areas, such as cladding remediation or even, as my noble friend Lord Young of Cookham said, the supply of new housing stock.

[Lord Foster of Bath (LD)]

Can the Minister confirm whether the Government already have their own target in relation to the number of homes that should be brought up to EPC level C, including all fuel-poor homes and those in the social housing sector?