Planning and Infrastructure Bill (Third sitting)

Debate between Lewis Cocking and Matthew Pennycook

Committee stage
Tuesday 29th April 2025 Public Bill Committees

[Lewis Cocking (Broxbourne) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I draw your attention to my entry in the Register of Members’ Financial Interests. I concur with my colleagues. I have concerns about removing the response from Ministers to Parliament. We are told that constituents and residents will be kept at the heart of such decisions—they will have some say in the national planning policy framework through consultation on national infrastructure projects when they are in their area. Indeed, I asked the Prime Minister a question on the topic at PMQs. I was not convinced by his answer.

How can the Government, on the one hand, say that we will keep local people at the heart of those decisions and allow local people to have a say on them, while on the other, in this part of the Bill, remove parliamentary scrutiny? That will fill the British people with dread, that they will not have such a say in some of those infrastructure projects in their area.

[Matthew Pennycook]

May I correct the hon. Gentleman? Local people in any part of the country affected by a development consent order will still be able to have their say on it. Nothing in the clause affects that arrangement.

[Lewis Cocking]

My point is, if we remove parliamentary scrutiny, the British people out there watching this will think, “Well, hang on a minute, the Government are saying on the one hand that we will still have a say and feed into that process, but on the other they are removing parliamentary scrutiny from the process, so how do we weigh that up?” When the Bill has been through the full process to Third Reading, how can we and the British people trust that they will still have a say over national infrastructure projects in their area if parliamentary scrutiny is being removed? That is taking with one hand and giving with the other, and it could be perceived that people will not have a say; they might not believe the Government saying that they will have a say. I hope that the Minister will comment on that.

[Matthew Pennycook]

Let me be clear. I appreciate the concerns that hon. Members have expressed. I hope that I can provide some reassurance, but I am more than happy to have further exchanges on this point, which is an important one.

The clause introduces a new streamlined procedure for making material policy amendments to national policy statements, where the proposed amendments fall into four categories of changes to be made since the NPPS was last reviewed: reflecting legislative changes or revocations that have already come into force; relevant court decisions that have already been issued; Government policy that has already been published; and changes to other documents referred to in the NPPS.

A good example is our recent changes to the national planning policy framework—consulted on publicly and subject to a significant amount of scrutiny in the House. If a relevant NPPS had to be updated to reflect some of those policy changes, which have already been subject to consultation and scrutiny on their own terms, as I said, that would be a good example of where this reflective procedure might be useful.

The primary aim of the clause is to expedite the Parliamentary process for updating national policy statements. By doing so, it ensures that amendments that have already undergone public and parliamentary scrutiny can be integrated more swiftly into the relevant NPPS. In enabling reflective amendments to be made, the new procedure will support the Government’s growth mission by ensuring that NPPSs are current and relevant, increasing certainty for developers and investors, and streamlining decision making for nationally significant infrastructure projects.

Hon. Members should be assured that, where applicable, the statutory and regulatory prerequisites of an appraisal of sustainability and habitats regulation assessment will continue to apply to amendments that fall within this definition, as will the existing publication and consultation requirements for material changes to a national policy statement. The clause does, however—this is the point of debate that we have just had—disapply the requirements for the Secretary of State to respond to resolutions made by Parliament or its Committees. We believe that change is necessary to enable reflective changes to be made to NPSs in a more timely and proportionate manner.

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[Matthew Pennycook]

I simply disagree with the hon. Gentleman. It is a matter for the House rather than the Government. On their own terms, we think the changes made through the clause are proportionate and will ensure that the system is more effective. Again, I make it clear that we are talking about reflective amendments to national policy statements in the four specific categories I have given.

[Lewis Cocking]

Will the Minister give way?

[Matthew Pennycook]

I will give way one last time, and then I will make some progress.

[Lewis Cocking]

If we are talking about small, minor changes, surely the consultation period does not need to be that long—it will not take Select Committees long to produce a report to feed into the process if these are only minor changes. I do not see the need for change that the Minister is setting out.

[Matthew Pennycook]

All I would say is that if the hon. Gentleman looked at the history of the response times on some of these matters he would see that in not every instance is there a timely response. It can delay the process quite significantly. We appreciate the concerns, but the procedure cannot and will not be used to bypass due parliamentary scrutiny.

Any court decision change being reflected in the NPS will have been scrutinised by the public and Parliament on its own terms. We are adjusting the parliamentary scrutiny requirements to update an NPS, so that it is more proportionate and enables those documents to be updated more quickly. The process retains scope for Parliament to raise matters with the Government. The Secretary of State is required to lay a statement in Parliament announcing that a review of the NPS is taking place. The Government will write to the relevant Select Committee at the start of the consultation period, and Ministers will make themselves available to speak at the relevant Select Committee during the consultation period, so far as is practical. Finally, the NPS as amended will still be laid in Parliament for 21 days and can be prayed against.

I turn to amendment 8, tabled by the hon. Member for Taunton and Wellington; we have covered many of the issues it raises. In seeking to remove clause 2(3)(a), it is a wrecking amendment, in our view. It would fatally and fundamentally undermine the introduction of a new streamlined procedure for updating national policy statements by requiring the Government to respond to a Select Committee inquiry before being able to lay a national policy statement before Parliament. We will therefore resist it. As I have set out, the new procedure introduced by clause 2 will help to unlock growth in our country by enabling policy to be updated more easily, providing certainty for applicants using the NSIP regime and for decision makers. On that basis, I ask the hon. Gentleman to withdraw his amendment, and I commend clause 2 to the Committee.

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[Matthew Pennycook]

I thank the hon. Gentleman for that question. I want to be very clear about the circumstances in which this measure can be used. As he will appreciate, I will not comment on a specific application, for reasons he will well understand, but, in such a scenario, I struggle to see how that application could feasibly come within the NSIP regime process at all. It sounds like a straight-down-the-line application that would be made by the applicant, across two local authorities, through the Town and Country Planning Act regime.

What the clause seeks to do is ensure that, in cases where, due to the nature of the development, the only route to go down is the NSIP regime via a development consent order, an applicant can apply to have that application determined in a different consenting order if it will lead to a faster, more proportionate and more effective decision-making process. As I say, it will therefore be for the Secretary of State to consider the unique circumstances and impacts of any specific development so that the consenting of certain developments can be undertaken by whatever body the applicant appealing to the Secretary of State says is the more appropriate route. In most instances, I would assume that that would be the local planning authority, but I gave the example of the Transport and Works Acts regime for roads.

We are trying to get at the type of examples where developments need limited consents or may not need compulsory acquisition—in a sense, when the one-stop-shop nature of the NSIP regime may not be the most proportionate means to take that through. The redirection under the clause will not be appropriate for all developments, and, for a direction to be given, the Secretary of State must consider that it is appropriate for an alternative consenting regime to apply rather than the Planning Act.

[Lewis Cocking]

I thank the Minister for giving way. Has his Department done any analysis of how many requests the Government are likely to get under the clause, and how many applications will want to change how they are determined?

[Matthew Pennycook]

I think the thrust of the hon. Member’s question was about a numerical analysis. No, we cannot account for the behavioural change that would come if this clause is enacted. What we do know, from significant engagement with stakeholders in the infrastructure sector, is that lots of applicants would make use of the redirection route and are eager to do so.

The examples I have heard from particular major economic infrastructure providers are where, as I say, they have a constructive and healthy working relationship with a local authority that they are confident is resourced and able to take the decision to approve or reject an application in a timely manner and they do not want to have to take it through the NSIP regime, which is currently their only route.

As I said, section 35 already allows the Secretary of State to pull applications from other regimes into the NSIP regime. This will work the other way, and just provides a necessary flexibility. The point of clause 3, though, is to ensure that any given applicant can make a case to the Secretary of State to go into the regime that they feel is the most appropriate and proportionate for the application in question.

[Lewis Cocking]

I thank the Minister for giving way again. I just want to press him a little more. He is saying that people can choose to go through the Town and Country Planning Act regime, but we were always told by this Government that that is a long, arduous process that developments take a really long time to go through. Why are they suggesting that they might want to put more development through that process if, as they are saying, it is not working?

[Matthew Pennycook]

The Government are agnostic on which route a developer will wish to go down. As I say, developers will have to apply to the Secretary of State and make a case that, in the specific circumstances in which they are operating, there should be an alternative consenting route. The hon. Gentleman will know that we are making significant efforts to speed up and streamline the town and country planning regime. From previous debates, I know that he takes issue with some of that, but if he has had a conversion, I would very much welcome it.

Residential Estate Management Companies

Debate between Lewis Cocking and Matthew Pennycook

Tuesday 22nd April 2025 Westminster Hall

[Matthew Pennycook]

To be clear, the protections we are talking about, which we intend to switch on as soon as is feasible and were provided for by powers under the Leasehold and Freehold Reform Act passed by the previous Government, will benefit existing residential freeholders on existing estates. I will come to the prevalence of those arrangements in due course, but I can reassure hon. Members that we intend to carry out that consultation this year, as promised, and that I am doing everything I can to expedite it.

Beyond the short-term need to protect residential freeholders better, we have to take steps to reduce the prevalence of private estate management arrangements, which are the root cause of the problems we are considering today. In my written ministerial statement, I committed the Government to consulting on legislative and policy options to achieve that objective. I hope that hon. Members appreciate that this is not a simple and straightforward area of policy and that the implications of policy choices are potentially far-reaching.

[Lewis Cocking]

Will the Minister give way?

[Matthew Pennycook]

Yes. I will try to give way to as many hon. Members as I can.

[Lewis Cocking]

I want to make a point about solicitors’ practices and what information people get when they buy their properties. I think that a number of people go into these contracts under false pretences and do not fully understand what they are responsible for and what they may end up paying for.

[Matthew Pennycook]

There are undoubtedly issues around the purchase of homes on these estates. For example, it appears to be fairly common for residential freeholders not to be notified of their future liability for charges early in the conveyancing process. We are giving due consideration to those issues as well.

On the prevalence of future arrangements, the Government intend to seek views from a wide range of interested parties, including local authorities, management companies, developers and residential freeholders themselves. Our consultation will need to consider a wide range of trade-offs, including costs to homeowners, costs to local authorities, potential impacts on housing supply and the links with the planning system. As promised, we will consult on that matter this year.

Oral Answers to Questions

Debate between Lewis Cocking and Matthew Pennycook

Monday 7th April 2025 Commons Chamber

[Lewis Cocking (Broxbourne) (Con)]

My constituents in Broxbourne rightly expect new schools and health facilities, particularly GP surgeries, to be in place before any new housing development. What action is the Minister taking to force developers to deliver infrastructure first?

[Matthew Pennycook]

The Government recognise the importance of ensuring that new housing development is supported by appropriate infrastructure. The revised national planning policy framework, which we published last year, included changes designed to improve the provision and modernisation of various types of public infrastructure. As the hon. Gentleman is well aware, we are also committed to strengthening the existing system of developer contributions to ensure new developments provide the necessary infrastructure that communities such as his expect.

Draft Town and Country Planning (Fees and Consequential Amendments) Regulations 2025 Draft Community Infrastructure Levy (Amendment etc.) (England) Regulations 2025

Debate between Lewis Cocking and Matthew Pennycook

Tuesday 25th March 2025 General Committees

[Matthew Pennycook]

It is a pleasure to serve under your chairmanship, Ms Lewell. The draft Town and Country Planning (Fees and Consequential Amendments) Regulations were laid before the House on 13 February. The draft Community Infrastructure Levy (Amendment etc.) (England) Regulations 2025 were laid before the House on 25 February. Let me set out in turn the reasons why we are bringing each set of regulations forward, and what they will provide for, starting with the draft Town and Country Planning (Fees and Consequential Amendments) Regulations.

Planning is principally a local activity, but a well-established principle is that, in limited circumstances and where issues of more than local importance are involved, it is appropriate for the Secretary of State to make planning decisions. Recent experience, including the response to covid-19, has exposed that the existing route for securing planning permission on Crown land, namely the urgent Crown development route under section 293A of the Town and Country Planning Act 1990, which was introduced in 2006, is not fit for purpose. Indeed, it is telling that it has never once been used. Furthermore, Departments have struggled to secure local planning permission for nationally important public service infrastructure such as prisons.

The Levelling-up and Regeneration Act 2023, passed by the previous Government in the last Parliament, made provision to address those challenges by providing two new routes for planning permission for Crown development in England. The first route, referred to as Crown development, is for planning applications for Crown developments that are considered of national importance. Such applications are to be submitted to the Planning Inspectorate directly, instead of to local planning authorities. An inspector will consider and determine the application, unless the Secretary of State for Housing, Communities and Local Government recovers the application to determine herself.

The second route is an updated urgent Crown development route, which will enable applications for nationally important developments that are needed urgently to be determined rapidly under a simplified procedure. Applications under the urgent route will be submitted to the Secretary of State for Housing, Communities and Local Government. Those new routes can be used for developments only where clearly justified. Provisions in the Levelling-up and Regeneration Act require that applications can be accepted by the Secretary of State only if she deems that the proposed development is of national importance and, in the case of the urgent Crown development route, urgent.

[Lewis Cocking (Broxbourne) (Con)]

I draw the Committee’s attention to my entry in the Register of Members’ Financial Interests that I am a local councillor. Given what the Minister has outlined, will he give us a flavour of how local people can make representations, even if it is straight to the Secretary of State or the Planning Inspectorate? I am concerned that removing applications from local councils and putting them through the new routes he has described will make it harder for local residents to feel that their voice has been heard, even on important national infrastructure projects.

[Matthew Pennycook]

Let me deal with community engagement under both routes. With the Crown development route, community engagement will be a key part of the process. Communities will be fully engaged throughout. Much like an application submitted to a local planning authority, there will be mandatory consultation and publicity about the consultation for a minimum period of 21 days. That period will be 30 days if the development is one that requires an environmental impact assessment and is therefore an EIA development. That will enable members of the community to view and comment on the application.

We expect that the majority of Crown development applications will be subject to a public hearing. Those who made comments will be notified when that is to take place. Interested parties may attend the hearing if the inspector allows it. Only comments made during the consultation, the publicity period and the hearing that raise material planning matters will be taken into account as part of the decision-making process.

The local planning authority will be consulted and will have a role to play in publicising the application. It will need to place the application and associated documents on its planning register. Where PINS—the Planning Inspectorate—does not have a local presence, the local planning authority will be required to affix site notices during the mandatory period and to notify those owners or occupiers who adjoin the site. For urgent Crown development, the other route that the Levelling-up and Regeneration Act provides for, the local planning authority will again be consulted as part of the application. That is mandated by section 293C(2)(a) of the Town and Country Planning Act 1990. In the draft regulations, we have made provision about the consultation procedure.

While we appreciate the importance of community engagement, given the urgency with which decisions must be made, under the approach to consultation with the community in this process they will be assessed on a case-by-case basis. In circumstances in which decisions need to be made very quickly, it may not be possible to conduct a meaningful public consultation and reach an urgent decision. I hope that satisfies the hon. Member for Broxbourne on the different types of community engagement under both routes.

The new routes, as I said, can be used only for developments for which it is clearly justified, and provisions in the Levelling-up and Regeneration Act require that applications can be accepted by the Secretary of State only if she deems that they are of national importance and, in the case of the urgent Crown development route, urgent. I made a written ministerial statement on 13 February that set out the principles under which national importance and urgency will be determined. When submitting an application, applicants are required to set out the reasons why they consider that the development is of national importance and, in the case of urgent Crown development, needed as a matter of urgency.

The draft Town and Country Planning (Fees and Consequential Amendments) Regulations make amendments to primary legislation to reflect the two new Crown development routes. For instance, they amend references to planning permission set out in a range of pieces of legislation. They also remove references to the previous urgent Crown development route in section 293A of the Town and Country Planning Act, which now applies only in Wales. The instrument also sets the fee for an application for planning permission under both routes, set at the same fee, which would have been paid to the local authority.

Following the statutory instrument coming into force, a further suite of statutory instruments will be made through the negative parliamentary procedure. They will set the procedures for the two routes and make further consequential changes to secondary legislation to reflect their implementation. We have published the instruments in draft ahead of the debate, in order to provide proper transparency about how the routes will operate. I reiterate that the Government are committed to ensuring proper transparency to Parliament at every stage when the routes are used. When the matter was considered in the Levelling-up and Regeneration Bill Committee, I stressed that point to the then Minister.

The following are the ways in which we want to ensure that proper transparency takes place. First, where an application under any of the routes is accepted, the relevant Members of Parliament will be sent a letter. That letter will include details of where the application can be viewed and the next steps. The letter will also be deposited in the Libraries of both Houses. Secondly, when a decision is made on whether to grant planning permission, the relevant Members of Parliament will be sent another letter. That letter will also be deposited in the Libraries of both Houses. Finally, on an annual basis, the Secretary of State will publish a report of all decisions taken under the routes. Taken together, those steps will ensure that Members in the other House are properly appraised of any applications that relate to their constituencies. It also means that both Houses of Parliament will be provided the opportunity to consider and scrutinise the general operation of the routes.

The second set of regulations we are debating make changes to the Community Infrastructure Levy Regulations 2010. The changes will ensure that when development comes forward after it is granted planning permission through the Crown development route, such development can be liable to pay the community infrastructure levy if the local authority charges CIL in that area. In addition, under section 62A of the Town and Country Planning Act, applicants can apply to the Planning Inspectorate, acting on behalf of the Secretary of State, for a planning permission decision when an authority has been designated for poor performance. We are amending the CIL regulations to ensure that the levy can be charged on development that comes forward under this route if the local authority charges CIL in its area. That ensures that fair financial contributions to local infrastructure are made by such development.

Finally, some incidental and consequential amendments are made to the Town and Country Planning (Section 62A Applications) (Procedure and Consequential Amendments) Order 2013 to enable relevant information to be provided in relation to CIL where an application is made under section 62A.

To summarise, the regulations are important in ensuring a more timely and proportionate process for dealing with planning applications for Crown development in England. The Government are taking steps to ensure that the routes are used appropriately, and that there is full scrutiny of the use of the powers. The changes we are making to the CIL regime are also important to ensure that CIL can be charged on development in a consistent and fair way, even when the local planning authority is not the decision maker.

Draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment and Transitional Provision) Regulations 2025

Debate between Lewis Cocking and Matthew Pennycook

Tuesday 25th February 2025 General Committees

[Matthew Pennycook]

I thank both the Liberal Democrat spokesman and the shadow Minister for their contributions. I note that the shadow Minister does not feel strongly enough about the reforms to formally divide the Committee, but he makes a number of pertinent challenges and asks a number of questions that I will seek to answer.

Both Members outlined the problem we face, which is that local planning authorities are significantly under-resourced and hard pressed. On planning application fees, despite the increases made by the previous Government in December 2023, we have a funding shortfall across the whole of England of £362 million. That is the problem we are attempting to address with the regulations. Fees were consolidated in 2012 by the coalition Government and have been increased only twice since, in 2018 and 2023. Importantly, prior to changes in 2023 that will come into effect on 1 April, they were never index linked, so they have never risen with inflation. As such, the gap between the cost of processing an application and the fees charged has widened over time.

The Government propose, through the regulations, to increase the fees on certain types of applications, which as I said in my opening remarks constitute the bulk of applications to local authorities, where the funding shortfall is most acute. The current fee of £258 on householder applications—just to give the shadow Minister a sense of the shortfall we are talking about—covers less than half the cost of processing the application to the local authority. As I have said, we think it is right in principle that taxpayers should not bear that burden, but the people making the application who will directly benefit from consent once it is processed. The planning application fee represents a small proportion—as I said, less than 1%—of typical overall development costs and, through permitted development rights, certain types of applications incur no fee at all.

The shadow Minister rightly raised ringfencing. The Government are clear that they expect the income from planning fees to be retained and directly invested in the delivery of planning application services. Managing public money principles should ensure that planning fees are effectively ringfenced. We believe that they are in most instances, but I have heard anecdotal accounts of planning fees being used to cross-subsidise other council services. We are therefore considering ringfencing as part of the Government’s longer-term plans for planning fees, which will enable local planning authorities to set their own fees.

On performance, in return for increasing planning fees, we expect local authorities to invest more in their planning service to deliver better performance. We are able to monitor, and will continue to monitor, the performance of local planning authorities through the planning performance dashboard and the quarterly planning statistics seen by the Department. The planning performance regime ensures that underperforming local planning authorities are held to account. The previous Government took action in that respect and we stand ready to do so where necessary.

Both Members raised concerns about general funding for local authorities. The Government are under no illusions about the scale of the financial issues facing councils and the potential for continued instability as we work to fix the foundations of local government. That is why we have a framework in place to support councils in the most difficult positions and why we work on a collaborative basis to help councils to manage their financial challenges.

Lastly, let me say something about local fee-setting. As we have said, it is important that local planning authorities are well resourced so they can deal with planning applications efficiently and do not hold up the development necessary for economic growth.

[Lewis Cocking (Broxbourne) (Con)]

I draw the Committee’s attention to my entry in the Register of Members’ Financial Interests as a local councillor. The Minister proposes to increase fees, but from my understanding they will not go to full cost recovery. Will he set out why they are taking a leapfrog approach and not going to full cost recovery, if that is indeed where the Government want to get to?

[Matthew Pennycook]

We think we are striking the right balance between increasing fees on the type of applications outlined in the regulations and making it very clear that nationally set planning fees can never be set in a way that covers every local authority’s costs for their planning application service, because costs vary between local authorities. The hon. Gentleman will be fully aware of that in his role. We think the only way to do this is ultimately for local planning authorities to be able to set their own planning fees. As I said, we intend to introduce a power in the proposed planning and infrastructure Bill that will enable local planning authorities to set their own fees, so that they will be able to recover their costs for their planning application services.

The proposed increases in fees are necessary and timely. The changes address the critical funding shortfalls faced by our local planning authorities and will provide them with the resources they need to deliver improved services in the short term. I hope the Committee will welcome them. As I have made clear, they will help to ensure that our planning system is faster and more efficient, and better equipped to facilitate our ambitious plan for change milestone of building 1.5 million new homes in this Parliament.

Question put and agreed to.

Building Homes

Debate between Lewis Cocking and Matthew Pennycook

Thursday 12th December 2024 Commons Chamber

[Lewis Cocking (Broxbourne) (Con)]

Nothing in this statement outlines the new powers for councils to build development infrastructure—including roads, schools and GP surgeries—before new housing. What powers will my local councils of Broxbourne and East Hertfordshire get to build development infrastructure before these massive housing targets are forced upon them?

[Matthew Pennycook]

Local authorities are already required to put in place plans for infrastructure delivery, and to set out how that infrastructure is funded and should come forward. We have made a number of targeted changes to the framework today, to support the delivery of infrastructure. That will not be not the last word on our reforms to the housing and planning system, and we are considering what more we can do to ensure that we get infrastructure for developments up front, in the way that communities want.