Energy Performance of Buildings (England and Wales) (Amendment) Regulations 2021

Lord Lansley Excerpts

Thursday 18th March 2021 Grand Committee

[Lord Lansley (Con)]

My Lords, it is a genuine pleasure to follow my noble friend Lord Moynihan, who has made lots of good points. Some of them relate directly to points that I was hoping to make, so I will not repeat them, but the importance of the building sector in achieving our net zero carbon objectives should not be underestimated. The second largest source of emissions is from buildings.

It is easy for us to focus far too much on the commendable achievements in building net zero carbon homes, but by my calculation, we simply have to recognise that, by 2050, something like two-thirds of the homes we live in will already have been built, so retrofitting and securing energy efficiency in our existing housing stock is absolutely critical. There are government schemes for this purpose, such as the Whole House Retrofit plan related to social housing, and so on.

The scope of these regulations is modest, and I welcome that. I know that we are all grateful to the Minister for explaining the regulations at the outset, but I shall unashamedly take the opportunity to talk about not the price of EPCs but the uses to which they should be put. Far too infrequently are EPCs seen as the spur to energy efficiency improvements that they should be, which is what we are looking for.

On this occasion I will not be drawn into the private rented sector. I know that the Government undertook a consultation in the latter part of last year. I am probably slightly disappointed that, in the event, they were not a bit more ambitious, because the cost-benefit ratio they ended up with suggested that the benefits did not outweigh the costs, but that of course was at the carbon price assumed between now and 2050.

Again, I will not go down this rabbit hole for too long because it is too important and too deep, but we ought to ensure that our carbon pricing is set at a level that forces change. If it is set at that level, it is also one that is likely to deliver substantial benefits in relation to the energy efficiency of buildings and the costs that renters and landlords have to meet.

I come back to the use of the EPC. Two-thirds of the existing housing stock has a rating of D or worse, so we need to effect change. There are government schemes: my noble friend Lord Moynihan is quite right; it is not that there are not schemes. The Government have put money and resources behind grant schemes, but the supply chain and the people influenced by it need these things to be sustained over a considerable period and we need the response to be substantial and positive. I am afraid it is not.

At the moment, even in the last few weeks, we are sitting here saying, “Why are people not taking up the green homes grant?” I think it would be far too easy to blame it on Covid and say, “They do not want people in their homes, understandably, so they are not taking up the grant.” However, it was true beforehand. We have had this with other insulation schemes. It is sometimes as brutally simple as people living in a house not wanting to empty their loft to let somebody up there to put the right insulation in place. They do not want the disruption.

I will put just one point to my noble friend in the hope he will convey it into the right ears across government. Like we do in the private rented sector, focusing on when there is a new tenancy, in the owner-occupied sector we must focus on the moment of sale—when the EPC is given to a potential new owner and they have a period ahead of them when they might reap the benefits of investment in energy efficiency. At that moment, they also are likely to empty the house. They may empty the loft and sometimes they can engineer a short window of opportunity for energy efficiency improvements to take place.

I suggest that, at that moment, rather than a grant scheme which comes and goes and depends on the vagaries of spending reviews, there could be a permanent allowance against stamp duty for energy efficiency improvements up to, say, the value of £5,000 that they undertake—if recommended as a result of an energy performance certificate. Such a scheme could be confined to houses with an EPC of D or worse or, to start off with, those rated F and G, to see how it goes.

I prefer tax incentives to government grant schemes. I prefer tax relief to expenditure. I prefer incentives people can permanently rely on and where they feel they are getting some of their own money back or not having to give their money to the Government. As the tax is targeted on that moment, the incentive can be deployed in that moment as well. I commend that thought to my noble friend.

I know government departments not only hesitate, but will not enter the territory of tax, because it is all the Treasury’s business. But if they have an objective—and there is an objective here—and they think it can best be achieved by working with the Treasury through a tax incentive, I ask that they go down that path.

[The Deputy Chairman of Committees (Lord Caine) (Con)]

The noble Baroness, Lady McIntosh of Pickering, has withdrawn, so I call the noble Lord, Lord Addington.

Business and Planning Bill

Lord Lansley Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Tuesday 14th July 2020 Lords Chamber

Moved by

[Lord Lansley]

59: Clause 17, page 27, leave out lines 18 and 19 and insert—
“(i) beginning with 25 June 2020, and”Member’s explanatory statement
This will provide that where a relevant planning permission has a time limit for commencement of development between 25 June (when this Bill was introduced to Parliament) and 31 December 2020 , the time limit will be extended as provided for in subsection (2).

--- Later in debate ---

[Lord Lansley (Con)]

My Lords, I should draw attention to my interest as chair of the Cambridgeshire Development Forum, as entered in the register. As other noble Lords have done, I express my thanks to my noble friends for their discussions following my speech at Second Reading and for the very helpful letter from my noble friend Lord Howe.

I confess that all 13 amendments in this group are mine, but they are to achieve two purposes. The first is to substitute June for April, so extending time limits on permissions and listed building consents. Clause 17 relates to planning permissions; Clause 18 relates to outline planning permissions; Clause 19 relates to listed building consents. In all three cases, the Government have given a three-month extension from December to the end of March. My amendments would take that from 1 April to 1 June. Nine of the amendments are to achieve that in relation to these three clauses. The other amendments, which I shall come to later, are to deal with the circumstances in which those planning permissions should be revived or extended where additional environmental approval has been sought and given.

I start with the question of adding two months to the proposed three months' extension. There is a balance to be struck, and I quite understand the thinking of my noble friend and the Government. They want to reflect the fact that there has been a delay—a serious interruption—to the delivery of the project pipeline for development; equally, they do not want to extend so far as to allow for such developments to be delayed when they could and should proceed. I completely understand that. From my point of view, this is not a probing amendment; it is my assessment of what a practical decision is in the light of all the circumstances.

As I mentioned on Second Reading, practical issues may have been lost sight of in substituting the three months lost—essentially, April, May and June—with three months gained: January, February and March. The most obvious, which I mentioned on Second Reading, is that the industry has lost three months of prime building season in the middle of late spring and early summer and is receiving, by way of compensation, time in the middle of winter. We do not know what seasonal effects January, February and March 2021 will have but if they were particularly inimical to development, it would mean quite a significant deficit in the opportunity for development. From my conversations with housebuilders it is not the case that on returning to site, generally in late June, they were able to do so on the basis of achieving full capacity. Many were starting at 50% capacity; those who I talked to only a week ago were generally at 80% capacity. The pipeline will have lost a further few weeks by the end of December. Adding that together, one might say “If not three months, perhaps four—or even five”. It depends on how one looks at it.

My noble friend Lord Howe has very helpfully said that in any case, all one needed to do is to implement a planning permission. He said: “Digging a trench or pegging out a road may suffice”. I have to tell him that I have looked into this and the courts have often taken a view about what commencement might be. Digging a trench might be sufficient; pegging out a road probably is not. The point is that neither takes account of two significant additional factors. First, when one commences development, often one also commences a legal obligation for community infrastructure levy, so significant costs may then arise. One does not commence a development simply by digging a trench, walking away and saying, “I’ve done what the planning permission requires”. That is not sufficient and, in the eyes of many developers, would be quite an unwise thing for them to do. Secondly, one cannot simply commence development until one has received the discharge of pre-commencement planning conditions.

I checked with the Greater Cambridge Shared Planning service and as of the beginning of last week, on 6 July, it began to look at applications received on 15 April for the discharge of pre-commencement planning conditions. That is a 10-week delay. Of course, discharge of conditions under these circumstances would generally take eight weeks, so there is an 18-week potential delay. When one begins to add these things together—they are not necessarily in series but may be concurrent—none the less it is far from obvious, in my view, that these particular three months at the beginning of next year are a sufficient addition to the time which developers need to compensate for the time they are losing in the course of 2020.

My point here is that my practical view was, “Let’s add two months”. In this respect, I shared the exact view—which I reflected in asking my noble friend some weeks ago whether he would add six months to planning permissions beyond the end of December—of the Home Builders Federation. It has welcomed what the Government are doing and is grateful for their bringing forward this legislation, but in fact asked for 1 July, not 1 April. I have not asked for 1 July; I have asked for 1 June. I think there is a practical answer somewhere beyond 1 April, in the light of all the circumstances.

--- Later in debate ---

[Lord Greenhalgh]

I am grateful to my noble friend Lord Lansley for speaking to this group of amendments which relate to the extension of planning permissions and listed building consents. These amendments have been supported by my noble friend Lord Balfe. Let me begin by saying that this is a very unusual and challenging time for the development industry, and we recognise that many developers of residential and commercial buildings have had to pause projects.

First, I recognise my noble friend’s comment that the proposed extension for those permissions and consents due to lapse close to 31 December 2020 will represent an extension of only three months, and I take his point about the quality of those three months. However, where a planning permission is due to lapse earlier in the year, for example in September, it would benefit from an automatic extension of closer to seven months. This, we believe, is proportionate.

Secondly, we should be clear that these measures to extend planning permissions and listed building consents are intended to support developers to implement their permissions—that is, to make a start on site—as we know that many of them will have experienced disruptions or delays due to the pandemic. However, it need not take very extensive works to implement a planning permission, and we think it is reasonable to expect starts on site to take place by 1 April 2021. I note my noble friend’s points about the community infrastructure levy, but we have made provisions so that the payment can be deferred and I am sure we will see improvements with regard to the current delays in the discharge of pre-commencement planning conditions.

Finally, my noble friend will be aware that we have included powers to extend, by regulations, both the 31 December 2020 date and the 1 April 2021 date to allow more or longer extensions, should that become appropriate. I am happy once again to commit to my noble friend on the Floor of your Lordships’ House that I would be pleased to engage with him on this matter in the coming months as we better understand how the industry is recovering from the impacts of the pandemic.

My noble friend also spoke to Amendments 59, 62, 66 and 68 to Clauses 17 and 18 in relation to the scope of the additional environmental approval process. These amendments would shift the cut-off date for those permissions which require additional environmental approval in order to be extended to April 2021. This date is currently set at the date these provisions take effect, which is four weeks after Royal Assent. My noble friend’s amendment would shift this to 25 June 2020 to cover just planning permissions that have expired. He will understand that where planning permission has lapsed, an extension effectively reinstates the permission, thereby permitting something that otherwise would not be allowed to go ahead. So it is right in those circumstances, having regard to our environmental commitments and obligations, to check whether the existing environmental assessments are still up to date. However, it is important that these provisions capture not only permissions which have actually lapsed, but those which, while technically still extant as of now, in practice could not be implemented within their original time limit. That is why it is right that there is a short delay between this Bill achieving Royal Assent and the cut-off date when these provisions take effect.

Developers with a permission that has not yet expired, but which is due to do so before these provisions take effect, still have the option to implement their planning permissions now, if they can. This would avoid any need to apply for additional environmental approval. If they cannot, it is right that before an extension is granted, there should be a check on whether the requisite environmental assessments remain up to date. The process for doing so is not burdensome, is focused and would be free of charge for applicants.

I hope that with this assurance my noble friend will feel able to withdraw Amendment 59 and will not press the others in this group.

[Lord Lansley]

My Lords, I am very grateful to my noble friend Lord Balfe and the noble Baronesses, Lady Pinnock and Lady Wilcox, for their contributions to the debate and for their positive remarks. I am also grateful to the Minister for his response. He demonstrated that he is trying to work this through as a practical issue. There are powers in the Bill to change the dates for the extension later on by way of regulation. I will consider what he said in his reply before we think about this on Report. It seems to me that if we recognise the strength of the case we should perhaps reflect it in the Bill to some extent, but there may be other and better ways of achieving that than in my amendments to date. I beg leave to withdraw the amendment.

Amendment 59 withdrawn.

Business and Planning Bill

Lord Lansley Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Monday 13th July 2020 Lords Chamber

[Baroness Noakes]

My Lords, I have not smoked for nearly 40 years and I loathe cigarette smoking, so I gently say to the noble Lord, Lord Clement-Jones, that he has misremembered my involvement in earlier anti-smoking legislation.

Nevertheless, like my noble friend Lady Neville-Rolfe, I do not think that the Bill is the right place for this amendment. The amendment would affect the granting only of new licences and would therefore discriminate against any premises granted a temporary licence under the Bill. Echoing what my noble friend Lady Neville-Rolfe said, I think that there is a massive danger to our economy of not getting it going again. It is not an overall concept of the economy; these are individual businesses that will go under if they cannot find a way of becoming viable. We should not lumber them with a competitive burden not borne by other businesses that already have pavement licences.

I do not know whether this is a real problem. The Health Survey for England 2017 had only around one-quarter of people self-reporting exposure to second-hand smoke, and only around 15% saying that it was smoke from outdoor areas outside pubs and restaurants. The majority appear not to be bothered. Be that as it may, we should cover that in a consultation and an evidence base that is sought on the normal basis before taking primary legislation to deal with this, if indeed it is an issue, rather than trying to squeeze it into the Bill, which is about trying to make things easier for some businesses to get going again.

[Lord Lansley (Con)]

My Lords, I congratulate the noble Baroness, Lady Northover, on bringing forward this amendment and I support it. If I may presume to say so, we were together as part of the health team in the coalition Government. I am very proud of the fact that we implemented the display ban on tobacco in shops and brought in the ban on vending machines, which was particularly important in restricting the access to tobacco and cigarettes for young people. I also initiated the consultation that led subsequently to standardised packaging.

Between 2011 and 2018, the proportion of adults in this country who were smoking went down, as the noble Baroness suggested. It has gone down from nearly 20% to below 15%. Most encouragingly, among 18 to 24 year-olds the reduction has been largest: from 25.8% down to 16.7%. There has been a reduction of more than one-third in the number of young people smoking—the 18 to 24 year-olds. That is one of the reasons why the impact of this issue in relation to pubs, clubs, restaurants and the like is particularly important for young people who are out and about.

I want to make three points. First, we are in the midst of a health crisis. In a health crisis, which is probably demonstrating to us that one of the underlying factors that has not helped us is the poor underlying health of many people in this country, we must do everything we can to try to improve population health in this country. We have not done enough and need to do more. We must prioritise public health and, by extension, if this amendment were taken on board this measure—modest as it may be in the overall scheme of things—would move us in the right direction.

My second point comes to the point made just now by my noble friend Lady Noakes. It is an important one. This is a temporary measure and would be specific in relation to new licences, but the essence of this Bill is that it will give an opportunity for premises which have previously been licensed for indoors to move outdoors; it gives an opportunity for licensed premises to operate on pavements and the like. In effect, what it says is, “We are extending the public space.” In my view, as we extend the public space, so we should extend the protections for the public that go with it. That means a ban on second-hand, passive smoking for those people who are enjoying that opportunity.

I shall make a third point. I am reminded of when my noble friend Lord Young of Cookham and I worked together on a little conspiracy of our own when we were in the other place: the ban on smoking in public places. I was the shadow health Secretary at the time. The nature of our conspiracy was that we secured the agreement of the whips that there would be a free vote. So I very much hope that neither my noble friend nor I will have to vote against a government whip on this matter. The Government could adopt exactly the same approach and give noble Lords in this place a free vote on the amendment. They might also do the same in the other place, and we shall see where we end up on the basis of the arguments. We implemented a ban on smoking in public places on a free vote and, in these circumstances, I think that we might well extend that ban on the same basis for this measure.

[Lord Naseby [V]]

My Lords, this is not a health Bill, as my noble friend Lady Noakes pointed out; it is a temporary measure. I am sorry to say this, but I think that this is an emotional amendment—and I speak as someone who is a non-smoker. I would remind your Lordships that tobacco is a legal product that is marketed with awareness packaging. Moreover, we need to take on board that we are talking about the nearly 7 million people in our population who still smoke, plus the 3.6 million who are vaping.

A great deal has been said about smoke curling around people who are eating and so on, but in an outdoor situation, tobacco smoke is highly diluted and dissipates very quickly in almost every atmospheric condition. It is absolutely right that smokers have a responsibility to behave properly towards the people around them, particularly when they are accompanied by children.

The proposal being put forward in this amendment to force pubs and cafés to ban smoking outside their premises—otherwise they will be refused permission to serve drinks—is wholly disproportionate. At a time when all our small businesses are on their knees, struggling to survive under the pressure of coping with Covid-19, I suggest that the last thing they need is further restrictions that will drive away desperately needed customers.

I am not saying that this measure would not be appropriate in a proper health Bill at some point, as soon as the authorities deem it to be relevant to take a particular action one way or another—but to hang this ban on to a temporary Bill that is designed to help every small business, not just those whose customers are not smokers, is entirely wrong in my view.

Planning Process: Probity

Lord Lansley Excerpts

Tuesday 16th June 2020 Lords Chamber

[Lord Greenhalgh]

Of course these requirements apply to the Secretary of State, but it is absolutely clear that at every step of the way, he disclosed all that he needed to disclose to the department, and that he followed the rules set out in the MHCLG’s propriety planning ethics.

[Lord Lansley (Con)]

My noble friend will be aware that public confidence in planning appeals and called-in decisions on appeals depends on speedy and independent reports from the Planning Inspectorate. Considerable progress was made last year, following the Rosewell review, in speeding up Planning Inspectorate decisions, but we may have lost quite a lot of that in the last few months. How might the Planning Inspectorate speed up its decisions in the months ahead to give greater confidence in these decisions being made?

[Lord Greenhalgh]

My Lords, probity in the planning system is absolutely critical to its function. We are also aware of the delays in making decisions on the part of the Planning Inspectorate. The Secretary of State and Ministers have insisted on the Planning Inspectorate responding to the current environment and delivering decisions from mid-June by virtual means.

Covid-19: Planning System

Lord Lansley Excerpts

Monday 8th June 2020 Lords Chamber

[Lord Greenhalgh]

I note the point about the potential deferral of sizeable planning applications, but at the moment we have introduced measures that are pragmatic and temporary to enable a proper continuation of the planning system, even for major decisions.

[Lord Lansley (Con) [V]]

My Lords, I declare an interest as chair of the Cambridgeshire Development Forum. Can my noble friend assure the House that the Government are following through on their guidance to local authorities by ensuring that they make a swift and positive response to requests from developers to extend construction working hours, so as to facilitate safe working and social distancing?

[Lord Greenhalgh]

My noble friend raises an incredibly important point. It is important that we recognise that the extension of construction hours, as provided for in the guidance, is there to enable construction to continue within social distancing guidelines. We will continue to ensure that it is enforced through regular engagement with the construction industry and other interested parties.

Covid-19: Housing

Lord Lansley Excerpts

Monday 18th May 2020 Lords Chamber

[Lord Lansley (Con)]

My Lords, I declare an interest as chair of the Cambridgeshire Development Forum and I welcome my noble friend to his ministerial position. Will the Government introduce primary legislation to give a general power to local authorities so that they will be able to extend planning permissions that are currently in force, taking into account the disruption to construction and development activity?

[Lord Greenhalgh]

The Government are aware, from both local planning authorities and the development industry, that there are delays caused by the Covid-19 pandemic. There is a risk of unimplemented planning permissions collapsing and therefore undermining the delivery of projects. We recognise these concerns and are considering whether permissions should be extended.