English Devolution and Community Empowerment Bill

Lord Best Excerpts

2nd reading
Monday 8th December 2025 Lords Chamber

[Lord Best (CB)]

My Lords, my contribution today addresses one ingredient in the Bill that is easily overlooked but which could prove of immense significance in achieving the quantity and quality of new homes the nation needs. I am referring to the measures in Part 2 that will facilitate strategic authorities—mayors and combined authorities—establishing mayoral development corporations and development corporations of combined authorities, including combined county authorities. These development corporations can take on planning powers, land acquisition and development powers. They will be single-minded and focused on achieving new housing and all the related infrastructure. This will create an alternative to the nation’s current total reliance on a small number of volume housebuilders who plan, design and provide most of this country’s new housing development but who so often fail us in what they produce.

Development corporations can trace their origins to the establishment of overarching planning and development bodies for the pre-war garden cities, and then for the 32 post-war new towns. The most recent example is the London Legacy Development Corporation, or LLDC, which has been doing such good work in the redevelopment of the Olympic site and its environs. Development corporations are already the chosen vehicle for delivery of the new generation of new towns, as set out in the excellent report from the New Towns Taskforce published in September. New town development corporations will follow the pattern of land acquisition and land value capture, creating a master plan, with private financing, and long-term, overarching control in the hands of a publicly accountable body. Now this Bill enables all strategic authorities to establish their own development corporations and assume the same roles as the new town development corporations.

For some years, I have championed the report by Sir Oliver Letwin which dates back to 2018. The Letwin review pointed out that the oligopoly of volume housebuilders will build only at the speed they can sell, without having to reduce their prices. This has ensured that there is always a gap between supply and demand, leading inexorably to growing housing shortages. Letwin recommended ending our dependency on developers that, entirely predictably, work at their own pace and negotiate down the standards and quotas of affordable housing to maximise their profits. In their place, Letwin advocated the establishment of development corporations that would acquire the land and capture the increase in its value when planning consent was subsequently granted. The development corporations’ master plans can then parcel out the site to different profit-making and non-profit-making bodies, covering the full range of types, tenures and uses: housing for sale but also for shared ownership, market rents and social rents; housing for older people and for students, with specialist and pioneering ingredients; plus the place-making green spaces, mixed uses and amenities needed for all new homes.

As an example of the potential of this approach, the Devon Housing Commission, formed by the local authorities in that county, pointed to the opportunity for a development corporation to develop strategic sites in Devon. This would ease pressure on the county’s 10 planning authorities, with the combined county authority taking a cross-boundary view for exemplary major developments. The danger here is that mayors and combined authorities have other important matters to handle, and this route to more and better housing provision may not lead to the strategic authorities taking advantage of the opportunity presented by the Bill.

I have three questions for the Minister, who has a deep understanding of these issues. First, will the Ministry of Housing, Communities and Local Government provide the necessary seed corn as a financial incentive for the strategic authorities to set up their own development corporations?

Secondly, will the MHCLG be drawing up guidance on the governance, funding and delivery of new development corporations? If so, I commend a new report from a distinguished group of architects and planners called Placemaking not Plotting, which provides a helpful basis for the key aspects of urban design to be adopted in place of current poor practice.

Thirdly, are the Government planning to support delivery by these new development corporations with grants or guarantees, perhaps via Homes England, for the initial land purchase on which so much will depend? Any news from the Minister on government support to get these development corporations off the ground would be greatly welcomed. With proper backing from the MHCLG, this component in the Bill, which streamlines the development corporation approach, could revolutionise the quality and quantity of tomorrow’s new homes and communities.

English Devolution and Community Empowerment Bill

Lord Best Excerpts

Committee stage
Tuesday 20th January 2026 Grand Committee

As the Minister had a lovely birthday yesterday, I am sure, I hope that she is in such a good mood that she will look favourably on Amendments 52, 56, 60 and 260 and the reasons that they are needed. We need a legal base to create an additional commissioner, and I argue very vigorously that it should be a rural commissioner. The amendments tabled by the noble Baroness, Lady Royall, quite rightly create the possibility of considering the needs of rural communities by having rural affairs added as a competence. I believe that there should be an obligation in the Bill for deeply rural areas such as North Yorkshire to have the possibility, with the legal basis in these amendments, of creating a rural commissioner. With those few words, I urge the Minister to support these perfectly formed amendments for this purpose.

[Lord Best (CB)]

My Lords, I shall speak to Amendments 7 and 128 in the name of the noble Baroness, Lady Royall of Blaisdon. They are supported by my noble friend Lord Cameron of Dillington and the noble Baroness, Lady Bennett of Manor Castle. I declare my interests as a vice-president of the Local Government Association, a vice-president of the Town and Country Planning Association, and an honorary member of the Royal Town Planning Institute, and I was once a rural development commissioner.

These amendments would add rural affairs to the areas of competence for strategic authorities and require those bodies to have regard to the needs of rural communities. As the noble Baroness explained, these amendments would ensure that rural areas are not overlooked in the affairs of mayors and combined authorities in relation to the use and development of land, regeneration, housing, employment, health and well-being. The fact is that rural areas have distinct characteristics, but rural communities are likely to comprise only a small fraction of the total population of a mayoralty or combined authority. The amendments would ensure that the needs of these localities get proper consideration.

I shall illustrate the kind of differences that distinguish a rural area from the rest by reference to the all-important housing matters that affect so many households in these places. They are very likely to be areas of lower incomes and higher house prices relative to the rest of the strategic authority area. The local population also faces extra competition for available accommodation from those commuting from elsewhere, rightsizing retirees and, in many places, second home buyers and those letting on a short-term basis of the Airbnb variety. Yet the amount of social housing is appreciably lower: about 11% for areas classified as rural locations, compared with 17% for the country as a whole. The right to buy has removed a larger proportion of council housing in these areas, and many villages now face a virtual absence of affordable homes for those born and bred in the area or needing to live there for family, caring or occupational reasons. Without affordable homes, rural communities can die. Recently, I chaired the Devon Housing Commission, which made important recommendations in relation to the strategic advantages of combined authorities. It also gave clear warnings of the huge significance of housing pressures for those living in rural areas. Since rural housing schemes are mostly small, they do not trigger the obligation on house- builders to include any affordable accommodation.

Set against these many disadvantages facing rural areas, there are positive opportunities that can uniquely help to address their different circumstances. Rural exception sites allow development that would not be permitted elsewhere. Rural housing enablers can help match social housing providers with landowners. Special grants are available from Defra and Homes England, so on the plus side as well, things are different for rural communities. The danger is that these distinctions are not taken on board by authorities which have very many other matters on their plates. Hence the value of these two amendments in requiring attention to be given specifically to the special aspects, good and bad, facing rural areas, as illustrated by my housing example. These amendments would ensure that these areas get the priority they so clearly deserve and I strongly support them.

[Lord Cameron of Dillington (CB)]

My Lords, I support the amendments in the names of the noble Baronesses, Lady Royall and Lady McIntosh, to all of which I have added my name.

First, I must declare my interest in that I still have a family farming interest in Somerset, although I am now retired and live in Cornwall. I must also declare an interest—it is more of a perspective, really—as having been the Prime Minister’s rural advocate under a previous Labour Government. I was charged with representing rural interests in the Blair Government and often reported directly to the Prime Minister himself, especially during the foot and mouth disease outbreak at that time, which caused major problems—both social and economic—for rural areas. At that time, I was also charged with producing an annual rural-proofing report for the Government. Believe me, it was badly needed—and still is, in my view. The Social Mobility Commission recently reported that inter- generational poverty in rural England is now as bad, if not worse, than in our most deprived urban slums.

I might add, just to prove my Cross-Bench credentials, that I was also asked to produce a one-off rural-proofing report for the Conservative Government some 10 years ago. I should say that I had more difficulty with the latter role than the former. No sooner had I produced my 2015 report outlining the important job that the rural affairs section of Defra had to play in the agenda than the department, under Liz Truss—she of sound judgmental fame—virtually closed down the rural affairs section, so the Department for Environment, Food and Rural Affairs ceased to be Defra and became just Def.

I am glad to say that those times are now over and the voice of the countryside is once again being heard. Defra still seems to be a slightly shy promoter of the rural voice in MHCLG, the Department for Transport, the Department of Health, the Department for Education and, above all, the Treasury. It needs to be saying again and again, “Hey, what about our agenda? What about those who live in the countryside?” In the same way, such a voice is needed, or is going to be needed, in the new strategic authorities. Mainstreaming rural issues into policy-making and decision-taking is fundamental to enabling all strata of rural society to engage fully with modern life; and to ensuring that rural businesses, which are the lifeblood of these communities, can thrive in even the remotest parts of England. Of course, having a rural voice at the top table—or, at the very least, a duty to consider rural needs in each and every region—is absolutely key to this agenda.

There are more VAT-able businesses per head of population in rural England than in urban England. There are more manufacturing businesses in the countryside than in the towns—per se, not just per head. The percentage of self-employed people in the countryside is also more than in the towns, especially—this is why I am particularly proud of my fellow country folk—among those who are below the poverty line. This proves to me that we country folk desperately want to stand on our own two feet, but we need help to do so; we need help to release that entrepreneurial spirit.

As was touched on by the noble Lord, Lord Best, housing problems in most rural areas are worse than in towns. There are few affordable houses left. The houses are more expensive and wages are lower. The houses tend to be less well insulated and heating costs are higher; mains gas, for instance, is rare in rural areas. Of course, the solutions are different there than in the towns, but I will not go into that here.

Training and skills problems are also different. How does a young person get to their class in their college 15 miles away when there is no bus? There might be one at 11 am or once a week on a Tuesday, for instance, but that is of no use to anyone. After college, how do you then get your first job? It is probably 10 miles away or more. It is a rural Catch-22 situation: you cannot get a job without a set of wheels, and you cannot get a set of wheels without income from a job.

Again, there are solutions to these problems, such as Wheels to Work, but the solutions need knowledge and need thinking about, along with a drive to push them through. For that, you need someone at the top table to tell it as it is—someone who is perpetually thinking about rural issues to ensure that the right policies are put in place. We need to try to create local jobs in as many communities as possible. That means improving connectivity, broadband and mobile services, as well as enabling planning policies; again, both of those are large subjects that I will not go into here.

The point is that ordinary life in rural England—shopping, doctors’ visits or even sports for the kids—is immensely hard when the only, but vital, family car has gone to work with the breadwinner. This lack of a car also means that kids at many schools miss out on all the extracurricular activities—football, sports, drama, music, et cetera—because they have to be on that school bus which takes them back to their rural village immediately after lessons are finished.

Also, rural households in poverty experience what academics call a rural premium, with living costs some 14% higher than for their urban counterparts, according to the academics. There is no cheap mains gas, which I have already mentioned, but only Calor gas or electricity; there is only older housing stock with poor insulation; food, clothing and transport costs are consistently higher; and there is limited access to childcare, healthcare and other basic services. All this compounds financial vulnerability. Thus, I say again that you need someone who understands all this, and who can speak up for rural interests when decisions are being taken at the top table.

Another factor which underlines the need for rural focus or a rural commission in these strategic authorities is the desperate shortage of government funding for rural areas. Although it is quite obvious to anyone who thinks about it that it costs more to deliver services to remote and sparse populations, central government funding for rural councils is on average 40% less per head of the population than for urban authorities—yes, 40% less per head. This differential is about to get worse under the so-called fair funding review. Therefore, a rural commissioner, or at the very least a duty to consider rural communities, is desperately needed to find ways of minimising the harm that such urban prejudice imposes on rural people.

This prejudice already results in rural council tax payers, for instance, having to pay on average 20% more per head than their urban cousins. For too long, I have been knocking my head against this concrete wall of prejudice against rural areas—too long to think that there is any chance of actually changing the financial situation. That is why I believe it will require a real rural understanding and focus to come up with the imaginative solutions which are so desperately needed to correct this long-standing imbalance.

It is crucial that mayors should have to appoint a commissioner for rural affairs whenever there is a rural element in their bailiwick. It has to be someone who can promote new jobs and make the necessary links. As I say, I know from experience that such a person can make a big difference to the quality of life for many people, whether it be in business, sport, transport, education, health or housing; or whether it be for the young, old or those in between. The countryside deserves a voice at the top table, and I believe these amendments will provide it.