Planning and Infrastructure Bill (Second sitting)

Rachel Taylor Excerpts

Committee stage
Thursday 24th April 2025 Public Bill Committees

[Lewis Cocking]

Q Sorry; yes. We have spoken about local plans and outline planning permission, and I will link those two together. There is a lot of consultation around development that comes forward, and the public in the area buy into it, because it is almost like it is painted in gold. The developers say that they can deliver all the amenities and everything the residents want, and then when they come forward for full planning permission, the proposal is completely changed. The residents have bought into something that they want, in the form of the fantastic development that the developers proposed. But when the developers come for full planning, it is completely different, so the residents are up in arms because they have not really bought into that. Would you make some comments on the differentials there?

Faraz Baber: The outline, as you say, is an outline, but the reality is that any full application that comes forward should be aligned with the agreement on social infrastructure and all the other elements that are required, whether that is the affordable housing, social infrastructure, civil payments or whatever. There was an earlier question: what is planning for? Well, planning is for that—to ensure that those community benefits are derived from development and to ensure that it is inclusive, not just for new residents but for existing residents as well.

I think that is a guardianship point, where the planning team or the local authority have to ensure that what they said they wanted to see from the plan is ultimately delivered. People will go into viability discussions and say, “I can’t afford that and I can’t afford this.” That is a judgment that has to be made about what can be delivered in the public interest. In answer to your question, that is very much where planning sits at the fore, to ensure that the right development with the right social infrastructure comes forward, and that it is fitting for the place it is sitting in.

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

Q I would like to focus again on local planning authorities. I am acutely aware, from my constituency in North Warwickshire and Bedworth, of the under-resourcing of planning authorities, and this Bill enables us to charge increased fees, but I am also aware of the frustration from local developers and businesses about delays in the planning system. Do you think that the ability to charge extra fees will strike the right balance, and should they be ringfenced to make sure that decisions are made in a timely manner?

Victoria Hills: We have been advocating for the ringfencing of fees since time began. It is absolutely essential, and—I am sure that Faraz will pick this point up in a moment for his clients—I have not met a single developer that is not willing to pay for more for a service. The problem is that they are paying more but not getting the service. In some places, they are, but not in others. The opportunity, through this Bill, to strengthen the ringfencing and ensure that the money stays within the planning team to deliver the service cannot come soon enough to help to reduce some of those delays.

Having the opportunity for local areas to work out what good looks like for them is absolutely a sensible way forward within that. Again, we do feel that having the right level of seniority within the department to ensure that the money stays there is going to be a key part of it.

Faraz Baber: Moving towards this ringfencing idea within the planning service is hugely positive, although when I say the planning service, it may extend slightly to the legal side as well, because you have to get those section 106 agreements signed off to make things happen. The key, though, is that it has to stay ringfenced for that resource to happen. We often see that PPAs—planning performance agreements—are paid up front for meetings, and that there is a very uneven balance in how well those deliver, in terms of the service that the clients receive when they pay those large chunks of change for that service. So, developers are right—applicants are right—to get frustrated when they think they are getting a premier service to help facilitate the bringing forward of an application, then find that it does not move the dial one iota.

I think the very basic premise is that instead of the chief executive or the finance director of the council saying, “I’ll take that because I need to put it into social care or into education,” the money actually stays there. Remember, if we keep that money inside the planning service, it will drive the growth that the Government have said that they want to achieve. The devil is in the detail, and we need to see that more, but it is the right direction to take.

Hugh Ellis: I would say that it would stabilise issues for development management, but, for the policy officers who we work with, it would not necessarily support their work.

Also, a piece of heresy, if it is okay: the private sector complains a lot about delays, despite getting 86% of all its applications approved, but I think that there needs to be more debate about competence in the private sector. When a private sector developer applies for a category 3a floodplain development and then complains that the Environment Agency wants it to go through a flood risk assessment process, my blood boils. Planners are doing life-and-death stuff. For example, no house built after 2009 is part of the insurance compact, so if we get this wrong, negative equity will look like a picnic. Planning is trying to do really complicated stuff and it needs time to do that. Statutory consultees are also crucial to that, and they need to be resourced properly to play that role as well.

[The Chair]

We are coming to the last few seconds so I am going to call an end to the session. Sorry that we did not get everybody in. As it is the end of the time allocated to the Committee to ask questions, on behalf of the Committee I thank our witnesses for their evidence.

Examination of Witnesses

Jack Airey and Sam Richards gave evidence.

--- Later in debate ---

[The Chair]

Rachel Taylor, you have about a minute and a half; maybe you will get a quick answer.

[Rachel Taylor]

Q I am interested to hear your quite controversial views on the role of local councillors in the planning process. I am sure that a lot of developers might agree with you. We heard from the previous panel that planning with consent is key to securing good communities. How do you feel it is best to consult the public? Should it be via their elected representatives, or should there be something in the local planning framework to do so?

[The Chair]

You have less than a minute.

Sam Richards: This has been more Jack’s point than mine, so I will let him come back to it, but I think it is reasonable that that is handled through the local plan.

Jack Airey: Sorry, another controversial opinion: I do not think development necessarily has to have consent. Lots of development happens that does not have consent—for example, things that go through the permitted development rights regime. I lived in a home that was built through the PDR regime, and it was perfectly nice—it was really nice. You see lots of homes that are built that way. There is no democratic engagement because MPs grant national planning permission for that through the general permitted development order. I get what people are saying and I am not trying to question it entirely, but you can have nice homes that are delivered outside that system.

To answer your second question on whether consultation should be done through representatives, the most important thing is that you go and ask people what they think.

--- Later in debate ---

[Gideon Amos]

Q May I ask a supplementary of James? We hear a lot from the federation about the viability challenge of sites. Without rehearsing the whole system and the pressures on development value, what is the HBF’s approach to resolving that issue so that there are fewer schemes going back to appeal, with 106s renegotiated and affordable housing targets reduced? That is something that we see in all our constituencies.

James Stevens: We think that affordable housing, as part of section 106, is probably one of the most important planning obligations, and our members generally support that, because they know how to build houses. Capturing an element of development gain is a real feeding frenzy, particularly among every public agency. They are all attempting to finance their policy objectives off the back of capturing an element of the developed land value. That can result in very difficult competing claims over viability. I have looked at viability plans supporting lots of spatial strategies and local plans up and down the country, and very often large elements of a local authority area are unviable because they just cannot afford the cumulative claims upon that development value. Greater scrutiny at the examination level, and perhaps a stronger steer from the Government that affordable housing and public contributions to public transport are the foremost claims upon development value, would be a major step forward.

Savills has identified that the viability system—section 106 and the community infrastructure levy—is fairly successful. It is pretty successful at capturing the majority of development value that is out there. The Government could go further by being very clear that these are the requirements in local plans, they are not negotiable and schemes are expected to be policy compliant, but that would need to be underpinned by a more rigorous system of assessing viability of the local plan stage. That would provide the Government with the certainty.

[Rachel Taylor]

Q James, I would like to ask you a question first. We heard a lot on earlier panels about the number of permissions that have been granted but not yet delivered. How do you think your members can be helped by the Bill to deliver those homes? Also, when we talk about affordable housing, how much of that really needs to be socially rented housing to help deliver homes that homeless people need? That second question is more for Kate.

James Stevens: On the first element of that question, we really dispute the notion that house builders just bank land and are not interested in building out. Craig Bennett of the Wildlife Trusts cited a figure on Radio 4, I think, of 1.4 million homes that have granted permission but that have not been built out. We strongly contest that. A lot of those things are not counted as a completion until they are actually completed. A lot of those schemes have to work through very complicated discharge conditions. A lot of those permissions can just be outline planning permissions, and not the detailed planning permissions that you need to be an implementable consent. A lot of those figures are just poor figures that do not reflect the true numbers that have actually been built out.

Lastly on that, this accusation of land banking has often been levelled at the house building industry over the last 20 years. Consistently, independent studies, including one by the Competition and Markets Authority last year, have given us a clean bill of health on that. There is an issue about absorption rates—the ability of a local market to absorb certain sales—but house builders do not make their money from sitting on land. That costs them money. We make money from the sale of homes.

The issue of social housing—I will allow Kate to come in shortly—is very important. The problem is that we have a severe housing crisis. As Kate said, we have many thousands of children in temporary accommodation. Local authorities had to spend something like £2.3 billion last year on temporary accommodation; local authorities would go bankrupt there. Therefore, the tendency is to try to maximise social housing provision—social rented housing. We can understand why local authorities want to do that. However, to follow up on the point I made to Gideon Amos, the problem is that if local authority policies are too prescriptive on the tenure split, that can make it very difficult for house builders to contract with registered providers, to provide registered providers with the type of tenure mix that they need. We need to be a bit more realistic and flexible about that.

The key issue is to get houses built—to focus upon the quantity—in order to alleviate the affordability problems that make people so dependent upon social housing in the first place. But absolutely, social rented housing is very important. We are not trying to say that we do not want to build it.

Kate Henderson: Social housing is needed in every part of the country. What is really important is that we have objectively assessed needs and that those needs are then incorporated in local plans, and that we deliver mixed, sustainable communities that reflect the needs of those areas.

I will just dispute a little bit the point about the London situation and the London plan. London is the only part of the country where we have a strategic development strategy. The reason that we have a crash of supply in London is not because of strategic planning. It is because of a building safety crisis, hugely high inflation, huge land prices, an absolute crisis in temporary accommodation, and huge pressures that have happened across the social housing sector over the last 15 years in terms of cuts and caps to our income.

To get out of the situation in London and in the rest of the country, we need a comprehensive planning system that is based on objectively assessed need; a long-term housing strategy that looks at our existing homes as well as new homes; a rent settlement, including convergence, and funding that addresses building safety as well as new supply. Those are all things that the Government are looking at, which is welcome.

As for bringing forward those spatial development strategies in the rest of the country, it is really important that they have a focus on social and affordable housing, and that that should be mandated within them. The percentages will need to reflect the context of the areas and the need in those areas, so there will need to be a degree of flexibility in accordance with place, but it is vital that that is mandated as part of the remit of those strategies. We welcome their introduction.

[Olly Glover]

Q Mr Stevens, you mentioned local plans briefly in one of your previous answers. Do you feel that the draft Bill sufficiently considers the interaction between the proposed spatial development strategies and existing local plan processes? Kate Henderson, it would also be good to hear your views on that.

James Stevens: I have been involved in commenting on, I think, all the last four iterations of the London plan, so I can see that it is a successful model, in that it does a lot of the heavy lifting for local authorities in terms of identifying broad locations of growth, but in particular setting out the housing requirement for all the constituent local authorities. Once that strategic plan is adopted, it becomes part of the legal development plan, and it means that whatever stage the local authority is at with developing its plan, at least the policies, including the policies for the number and distribution of housing set out in that spatial plan, become part of the development plan, so it does assist the Government in ensuring that their new mandatory standard method is embedded within the planning system as quickly as possible.

I have been involved also in all the spatial strategies produced by the mayoral combined authorities to a greater or lesser extent over the last six years. I think the Government’s measures to reform the governance so that with spatial development strategies, the Mayor only needs majority support rather than unanimity is a very important step forward.

Kate Henderson: Returning to a system of strategic spatial planning is really welcome. Trying to work out our housing need based on 300-plus local authorities does not get us up to the sum total of actually doing things comprehensively. In terms of addressing the housing crisis, economic growth and opportunity, nature recovery, landscapes, our utility provision and how we get to work, we need to work on a larger than local scale. The ability to co-ordinate all that infrastructure at a spatial scale where authorities are working together makes a lot of sense.

What is going to be a challenge is how we do this in a comprehensive way when there are huge capacity pressures on local authorities. There are some welcome measures in the Bill around ringfencing planning fees to give some additional capacity there and we support that, but how do you do the strategic planning function, in getting local authorities to have local plans in place and getting strategic plans in place at the same time, while also recognising that we are having local government reorganisation in the forthcoming English devolution Bill?

We would really like the long-term housing strategy, which is due to come forward this summer, to be the overarching framework for at least the next decade for how we transform the housing offer to people in this country. There is a question here about boosting capacity in the system. There is also about where levels of primacy are going to sit when it comes to decision making. There are lots of different things coming forward, so we need to be really clear, if there is a spatial development strategy coming forward and local plans coming forward, about how they will interact, how they will be democratically consulted on and agreed, and where the primacy of decision making is. That is what we expect more detail on in the secondary legislation and consultations to come.

James Stevens: There is a risk, though, that the prospect of a spatial development strategy will slow down local plan making. That is something we are quite anxious about. That is what we saw in Greater Manchester. The promise of a spatial strategy for Greater Manchester meant that for about 10 years, I think nine of the 10 constituent local authorities did not bother producing a local plan, so the Government need to be very clear. It is set out in the explanatory notes to the Bill, but the Government need to be very clear that local plan production must not stop under any circumstance.