Planning and Infrastructure Bill

Lord Jackson of Peterborough Excerpts

Committee stage
Thursday 11th September 2025 Lords Chamber

[Lord Jackson of Peterborough (Con)]

My Lords—

[Lord Best (CB)]

My Lords, possibly it is suitable for me to go next, because I shall speak also to Amendment 184, just to conclude the debate on that.

Amendment 184 is in the name of the noble Baroness, Lady Thornhill, who has presented it in such an engaging way that I hardly feel it worth any of the rest of us saying anything. She was nobly supported by my noble friend Lord St John and the noble Lord, Lord Banner. Centrepoint, the promoter of the amendment, is a highly respected homelessness charity, and its ideas for creating stepping-stone accommodation are innovative and imaginative.

When asked to support the amendment, I raised three queries and received some helpful responses that I will share with your Lordships, as others may have had similar thoughts to mine. First, I noted that the scheme depended on the young renters moving on to permanent homes in due course to make way for the next young person. But what if the acute shortages of affordable homes made this move-on impossible? The clogging up of short-term supported housing has been the undoing of many earlier such projects. In response, I was assured that these tenants would be supported by a visiting tenancy sustainment worker, who would not only help the young people to pay their rent and maintain their home but would help with move-on options.

Secondly, I pointed out that living in 24 square metres would not normally be regarded as tolerable. The national minimum space standard for a flat is 37 square metres, which is over 50% bigger. Was there a danger that this might be the thin end of the wedge, leading to more exemptions from the norm over time? Experience of the abuse of permitted development rights for property conversions into tiny slums shows us where this might lead. In response, it was pointed out that the circumstances in which the amendment would permit the much-reduced space standards exclusively for otherwise homeless young people were very tightly circumscribed, defined and limited—and I note that they get the seal of approval from the noble Lord, Lord Banner.

Finally, I wondered whether it would be more companionable for the young renters to be in a shared flat with three or four others with their own room but sharing a bathroom and kitchen diner. The reply was very convincing: Centrepoint had consulted widely with young people and those who had spent their time in local authority supported housing with communal areas and shared facilities, and they wanted space that was entirely their own responsibility. Small developments of 12 to 36 studio flats would mean young people living alongside each other while learning to live independently.

It would be up to local planning authorities as to whether any stepping-stone schemes emerged, but this amendment would make them a possibility. Centrepoint and maybe other charities should be enabled to take their model forward to its next stage, no doubt with further pilot schemes to test the concept. With these comments, I support the amendment and look forward to the response from the Minister.

[Lord Jackson of Peterborough (Con)]

My Lords, I am delighted to have the opportunity to contribute to the Committee’s deliberations. I say at the outset that Amendment 184 from the noble Baroness, Lady Thornhill, and my noble friend Lord Banner is eminently sensible, and there appears to be a strong consensus in its favour. I therefore that my Front Bench but also the Minister will give it a fair hearing and possibly support it, because it seems to be a great compromise.

I was fortunate when serving in the other place to support a very good charity called Hope into Action, with local churches banding together to buy residential properties for those in the most acute need, sometimes ex-offenders or people who were just generally down on their luck economically. However, I understand that that is very much a niche activity and it is not possible to buy freeholds outright, so you need this intermediate accommodation in order to give people a chance to get back on the employment or education ladder. So I strongly commend that amendment.

Principally, I want to support the amendment moved by my noble friend Lord Gascoigne. I am old enough to remember when the Town and Country Planning Act 1990 got Royal Assent. I declare from the outset—practically everyone declares this in this Committee—that I am another former vice-president of the Local Government Association, although quite some time ago. I was also a London borough councillor, and I had the good fortune to serve on the planning committee.

It should be remembered that the purpose of Section 106 was very much benign and supported by the community. It was essentially about whether expenditure was necessary, directly relevant to the planning application, and proportionate. It was absolutely the right thing to seek to ameliorate some of the impacts of residential development by providing community facilities such as schools, GP surgeries, community centres and transport infrastructure. Obviously, there was a distinction between the community infrastructure levy and Section 106. Of course, when I was a Member of Parliament and member of the borough council, those financial contributions made in support of affordable housing were very important. They obviously made a big contribution to the provision of decent housing in our borough and in my constituency.

The reason why I think this is an excellent amendment is that not all local authorities are the same. One of the frustrations is that, unless you are focused every day on trying to find the audit trail of funding from Section 106, when you have multiple stakeholders, landowners, local councillors and council officers—who often change over time—it is very difficult to follow the money in terms of what was actually delivered.

You often found in my experience that residential developments ended up with groups of homeowners or local residents who were very unhappy at, for instance, being members of a limited company and responsible for the management of their community areas. They did not want to do that; they just wanted a children’s playground, a bus shelter or a bus route, or a post office, for instance. Therefore, the openness and transparency that this very laudable amendment would give rise to would allow the distinction between good authorities which are putting much-needed money into local communities in a timely way, and those local authorities which are dragging their feet.

I accept that there is a distinction between preparing a local development plan and a county structure plan, et cetera. That is much more of a legalistic exercise, which has to be undertaken under various pieces of legislation. This is about keeping the faith and the trust of the local people you are interested in providing with very good local services, using what is effectively a tax—public money. Having the imperative of publishing that information on a regular basis would allow you in real time to account for why you have not spent that money, what priorities have changed and what the needs of the community as they evolve might be.

I cannot really see why there would be a reason not to do this. Irrespective of party in local government, whether it is independent, Liberal Democrat, Reform, Conservative or Labour—I think that is everyone; unless you are in Epsom and Ewell, and then it is ratepayers, bizarrely—everyone has an opportunity to make sure that that money is spent effectively and in a timely way.

For that reason, I support the amendment. I hope that, if the Minister rejects the amendment, she explains clearly why it is not possible to support it and incorporate it into the Bill. It is long overdue; it is what transparency campaigners in local government want, what local councillors want and probably even what planning officers want, providing clarity on expenditure. It would be a very good development, and I hope the Minister will support it.

[Lord Fuller (Con)]

My Lords, I support Amendment 170 in the name of my noble friend Lord Gascoigne. As I indicated in the previous group, I sat on the CIL review 10 years ago with Liz Peace, whom some noble Lords may know from the restoration and renewal programme, as well as Andrew Whitaker from the Home Builders Federation, which is probably where my noble friend gets his figure of £8 billion from.

When I was a council leader, we had three councils that came together in the Greater Norwich area, and we were early adopters on CIL. We were only the 12th area to do it, and we pooled our CIL, blind to the administrative boundaries between us, to try to make a step change in the amount of infrastructure delivered. Sadly, following the CIL review in 2017, few other areas joined the bandwagon, and now many areas are not in scope—they have Section 106. But in principle the community infrastructure levy has much to commend it, as it is quick, simple, clear and a lot more straightforward than Section 106. However, there are some problems, one of them being sufficiency.

What we discovered on the CIL review was that the amount of money generated by the CIL was probably some 15% of the total infrastructure requirement, aggravated in many cases by a large number of exemptions—self-built homes, offices converted under permitted development to residence, and so forth. There was a further aggravating factor, in that local authorities are not permitted to borrow against future CIL receipts as they are against Section 106. That made it significantly harder to get the big, chunky infrastructure done.

As a group of local authorities, we created the Section 123 list, where we listed all the things we expected CIL to fund—and there were sections on green infrastructure, social infrastructure, education, highways and community facilities, including libraries. More than 400 lines populated that Section 123 list, which was published annually as a big report, so that everybody could see what we planned to spend the money on. Of course, I support completely the principle of Amendment 170, but it does not go far enough. It is not enough just to say, “Well, this much money is being raised on this job, and that is it”. You have to balance it—not just with the money coming in but with what you plan to spend out on, and the cash flow. It is a simple truth that after you raise the money, and it is only 15%, the next work and the hardest work is leveraging that 15% in with other sources of money, possibly joint ventures and so forth.

CIL is about financing infrastructure, not just funding it. Financing is putting that deal together, whereas funding is just writing the cheque. It is really important that we help the public to understand and see that essential difficulty. Time does not permit describing all the ways in which we have tried to do that, but this amendment does not go far enough. We need to ensure the money coming in and the Section 123 list of the infrastructure going out, as well as the financing. The most important thing that this amendment falls short on is that it does not set the cash flowing—where do you see the money going in 2026, 2027, 2028 and so forth, in a 10-year rolling period? Unless you do that, just by publishing the amount of money that you have raised, there is pressure to get the money out of the door on less important projects with lower impact, which is where we found a difficulty.

By having a more thoughtful, five or 10-year rolling programme, which contains the income, expenditure and cashflow, you would also give clarity to the development community. If you wish, and if it is sensible to do so, you could make a substitution—take an investment in kind, if you will—instead of making an upfront cash payment. That can be very useful. If a new school, for example, is on the Section 123 list, and the developer is interested in it, the new school can help him sell his houses in a large development, but if the money is not quite there yet, being open, honest and transparent, in this more complete way, makes it clear how schools can be financed in kind by the developer, and sometimes you can leverage more in that case.

I support the principle, although I do not believe it goes far enough; we need a five or 10-year programme. In my area, we publish a comprehensive annual report, which includes all the lines—the income and the outcome. However, while posting the balance is useful, it does not tell the whole story. That is what we need to do to get the infrastructure built but also the public onside.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

As the noble Lord predicts, I do not have the figure in front of me, but I will write to noble Lords and confirm what it is.

Amendment 185L seeks to deal with instances in which community infrastructure secured through Section 106 cannot be delivered as originally intended. In our view, this amendment risks unintended consequences which could hinder, rather than facilitate, sustainable development. I emphasise that local planning authorities can already take enforcement action if a developer fails to deliver on the obligations they have committed to in a Section 106 agreement, including failure to deliver community infrastructure where relevant. This may include a local planning authority entering the land to complete the works and then seeking to recover the costs or applying to the court for an injunction to prevent further construction or occupation of dwellings. This amendment would prevent the modification of planning obligations even where a change of circumstances means that the community infrastructure in question can no longer be delivered by the developer.

As I have set out, the Government are committed to strengthening the system of developer contributions, including Section 106 planning obligations. To deliver on this commitment, we are taking a number of steps, including reviewing planning practice guidance on viability. However, we must have flexibility where necessary to ensure that development, where there are genuine changes in circumstance, can continue to come forward. We must also think carefully about the demands we are placing on local planning authorities, which may not have the capacity or resources to take on responsibility for delivery in the way this amendment proposes.

Amendments 185K and 220 focus on the development consent order process and strategic development schemes and seek to achieve the same outcome. The clauses proposed by the noble Baroness, Lady Pinnock, would place a legal requirement on developers to deliver on commitments made to provide specified local infrastructure as part of their projects.

First, I want to express my sympathy with the spirit behind this proposal. We all agree that communities must be able to secure the infrastructure they need, especially when new development brings added pressure on local services and existing infrastructure, including schools, nurseries and GP surgeries. In particular, I acknowledge that the concerns that may be driving the amendment relate to the impact of temporary workers or additional traffic on local communities caused by large-scale infrastructure projects, which can remain under construction for significant periods of time.

[Lord Jackson of Peterborough (Con)]

Does the Minister agree that the problem with the amendment proposed by the noble Baroness, Lady Pinnock, is that the viability of affordable housing changes all the time? Because there is a link between the viability of residential housing and community facilities, that amendment could lock in the development in a restrictive way—for instance, it might not allow off-site commutation of funding to fund other projects.

[Baroness Taylor of Stevenage (Lab)]

I understand the noble Lord’s point, and it is of course important that we get the balance right between the delivery of the infrastructure as set out and having flexibility, so that when circumstances change, this can change too.

The amendments seek to focus on the issue by ensuring that commitments to delivering local infrastructure need to reduce the impact of a large-scale scheme. In responding, I have assumed that the reference to strategic development schemes is intended to relate to spatial development strategies, which are introduced through this Bill. These strategies, along with local development plans, set out infrastructure needs but are not applications and do not have developments attached to them. I agree strongly with the noble Baroness, and when it comes to large-scale new developments, the Government agree that delivering local infrastructure is crucial. If a project approved through a development consent order creates a need for local infrastructure such as roads, schools or drainage works, those needs can be addressed in two ways.

First, development consent order requirements, which are similar to planning conditions on planning permissions issued under the Town and Country Planning Act 1990, control how and when the development is carried out, and may require the approval of subsequent details by the local planning authority. These can be used in cases where changes to local infrastructure are needed to make development acceptable in planning terms. For example, if a developer is providing a relief road to mitigate an identified impact on local infrastructure as a result of constructing a large-scale infrastructure project, the necessary works can be detailed in the requirements. Relevant requirements may mandate subsequent plans—which outline proposed design, works phasing and traffic management—to be submitted to the highways authority, and these plans would then need to be approved and adhered to when implementing the development consent order.

Secondly, local infrastructure can be secured through development consent order obligations. These legal agreements can be used to require the payment of money as contributions towards the provision of local infrastructure, or to secure commitments to delivering that infrastructure. An obligation can be used to ensure that impacts on local infrastructure are properly taken into account and to mitigate identified adverse effects. The Secretary of State may take into account development consent obligations that meet the relevant legal and policy tests when deciding whether to grant development consent for the project. Once an obligation is enforced, it becomes legally binding and runs with the land, even if the land changes hands. A local planning authority has a range of enforcement options available to it if developers or the owners of the land, subject to the development consent obligation, do not fulfil their legal commitments.

While we fully support the goal of ensuring communities get the infrastructure they need, we believe the existing system already provides the right tools through legal requirements where appropriate, and these clauses would not add clarity or effectiveness to that process. I thank the noble Lord, Lord Jamieson, for his series of questions. I will check in Hansard which ones I answered. If there are any I did not answer, I will reply to him in writing. However, for all the reasons I have set out, I kindly ask the noble Baroness, Lady Pinnock, to withdraw her amendment.

Amendment 218 would require the Secretary of State to conduct a review of land value capture, including consideration of the merits of alternative methods of land value capture, within six months of Royal Assent to the Bill, and to report on the findings to Parliament.

I thank the noble Baronesses for raising this amendment. It is critically important that local planning authorities can capture a proportion of the land value uplift that often occurs when planning permission is granted in order to deliver affordable housing and the infrastructure needed to mitigate the impacts of new development. Local planning authorities currently use the well-established and effective mechanisms of Section 106 planning obligations and the community infrastructure levy. That is why the Government are committed to strengthening this system, and we have chosen not to implement alternative proposals for land value capture provided for in the Levelling-up and Regeneration Act 2023, such as the infrastructure levy.

The Government have already made important progress in delivering against this commitment. For example, through the revised National Planning Policy Framework, published on 12 December last year, the Government introduced new “golden rules” for major development involving the provision of housing on land within or released from the green belt. Our “golden rules” aim to deliver higher levels of affordable housing alongside necessary infrastructure and accessible green space.

Through the English Devolution and Community Empowerment Bill, currently in the other place, we are also legislating to give mayors of strategic authorities the power to raise a mayoral CIL alongside the requirement to have a spatial development strategy in place, enabling them to raise revenue for strategic growth-supporting infrastructure where this is balanced with viability. The department has provided evidence to the Housing, Communities and Local Government Select Committee inquiry into land value capture, and we very much look forward to engaging with the findings and recommendations of that inquiry in due course.

Amendment 184, tabled by the noble Baroness, Lady Thornhill, seeks to exempt local planning authorities from applying the nationally described space standards on planning applications concerning the delivery of “stepping stone” accommodation. I also thank Centrepoint for its continuing and proactive support regarding the housing crisis among young people, and for its work on the Bill.

As helpfully set out by the noble Baroness, Lady Thornhill, in her explanatory note, the thrust of this amendment is to promote accommodation for young people who are leaving supported housing or who are at risk of homelessness. I have delivered similar schemes to the ones she described through our housing first scheme in Stevenage, including some for young people with learning disabilities, which was a remarkable experience. It was a small development, but it was life-changing for those young people. The community they formed in that housing development was wonderful to see, so I do not need any convincing of the reasons for delivering schemes such as these.

I give my support to the principle of the amendment of the noble Baroness, Lady Thornhill, and agree that regulation should not unnecessarily get in the way of providing safe and secure housing for our most vulnerable, particularly vulnerable young people. However, I hope I can reassure her that the amendment is not needed.

The purpose of the space standards is to provide guidance on the minimum area of new dwellings across all types of tenures, based on the number of bedrooms and bedspaces. The nationally described space standards are not set out in legislation, and they are not mandatory. It is at the discretion of local planning authorities to choose to adopt the space standards through their local planning policies where there is an identified need for additional technical requirements. As set out in planning practice guidance, when establishing a clear need for adopting the space standards locally, they must assess the impact on local viability and housing supply.

By law, planning applications are determined in accordance with the development plan, unless material considerations indicate otherwise. Each application is judged on its own individual merit, and the weight given to these considerations is a matter for the local planning authority as the usual decision-taker in the first instance.

What constitutes a material consideration is very widely defined and it is for the planning decision-maker to determine what is a relevant consideration, based on the circumstances of a particular case. We feel this is best for local areas to determine on a case-by-case basis, rather than being dictated by central government. For example, if the local planning authority considers that the need for a particular housing tenure—such as “stepping stone” housing—would, when considering all relevant material considerations, outweigh the policy requirement to have that housing meet the optional space standards adopted in its local plan, it may grant planning permission. In short, the current planning framework—