Local plans – Page 2

LURB Lords Latest

The Levelling-up and Regeneration Bill resumed its progress through Report stage in the House of Lords this week, with sessions on 4 and 6 September. This post seeks to identify the main amendments made in those sessions.

I know what you’re all asking – what about the Government’s late proposed amendment to address the nutrient neutrality issue (see my 29 August 2023 blog post The Government’s Big Move On Nutrient Neutrality – Now We Have Seen The Government’s LURB Amendment)? That will be debated at a further session next week, on 13 September 2023. The proposed amendment was in the meantime the subject of an urgent question tabled in the House of Commons by the Green Party’s Caroline Lucas on 5 September 2023. The debate is interesting as a hint of what awaits both in the Lords on 13 September but then once the Bill returns to the Commons for its final stages:

The Speaker agreed that the urgent question was appropriate notwithstanding the Secretary’s written ministerial statement the previous day: “I expect Ministers to come to the House, as I did not think a written ministerial statement was the way to inform the House.”

On being challenged that the amendment amounted to a regression from current standards of environmental protection, the minister, Rachel Mclean responded: “It is important to consider what we are talking about here, which is unblocking 100,000 homes that add very little in terms of pollution. To be clear, our approach means that there will be no overall loss in environmental outcomes. Not only do the measures that we are taking address the very small amount of nutrient run-off from new housing, but at the same time, we are investing in the improvement of environmental outcomes. We do not agree that this is regression on environmental standards. We are taking direct action to continue to protect the environment and ensure that housing can be brought forward in areas where people need it.”

A nuanced question from shadow minister Matthew Pennycook:

“As a result of the Government’s failure over many years to make decisive progress in tackling the main sources of problem nutrients, namely farming and waste water treatment works, the requirements for nutrient neutrality in sensitive river catchments present a challenge to securing planning permission for new housing development. It is therefore right in Labour’s view that the operation of the rules around nutrient neutrality is reviewed with a view to addressing problematic delays and increasing the pace at which homes can be delivered in these areas.

However, we have serious concerns about the approach that the Government have decided on. Not only does it involve disapplying the Conservation of Habitats and Species Regulations 2017, but it does not legally secure the additional funding pledges to deliver nutrient management programmes and does not provide for a legal mechanism to ensure that housing developers contribute towards mitigation.

I put the following questions to the Minister: what advice did the Government receive from Natural England about potential reform of the laws around nutrient neutrality? Did it offer a view on the Government’s proposed approach? Given the amount of mitigation currently available in the pipeline, which is estimated at allowing for approximately 72,000 homes, did the Government consider an approach based on the habitat regulations assessment derogation and a revised credit mitigation system to front-load permissions and provide for future compensatory schemes? If so, why did they dismiss that option? What assessment have the Government made of the impact of their proposed approach on the nascent market in mitigation credits, and investor confidence in nature markets more generally? Why on earth do Ministers believe developers will voluntarily contribute to mitigation under the proposed approach?

Finally, the Government claim their approach will see 100,000 planning permissions expedited between now and 2030. Given that house building activity is falling sharply and the pipeline for future development is being squeezed—not least as a result of housing and planning policy decisions made by this Conservative Government—what assessment has the Department made of the number of permissions that its disruptive approach will unlock within the first 12 months of its operation?”

A rather pithy summation of the position, from the chair of the Levelling Up, Housing and Communities Committee, Clive Betts:

“This is hardly a new problem, is it? The Court decision was in 2018, yet last year we had the levelling-up Bill, which was really a planning Bill with a bit of levelling up added on—no mention of the issue there. In December we had major consultations on changes to the national planning policy framework—no mention of the issue there. The Committee wrote to the Minister and asked how many more consultations on planning issues there would be this year. We were given nine of them—no mention of the issue there. If it is such a serious issue, why has it taken the Government so long to act? It looks like the Government are making it up as they go along. This is a panicked response from the Government to the collapsing numbers of housing starts which the Minister simply wants to do something—anything—about.“

Turning now to the Report sessions on 4 and 6 September 2023 , I set out below the main amendments agreed upon (subject to them surviving the return of the Bill to the Commons). The full list of amendments is much longer and for the detail you can click on the following:

Hansard debate 4 September 2023

Minutes to proceedings 4 September 2023

Hansard debate 6 September 2023 (Part 1)

Minutes to proceedings 6 September 2023 (Part 1)

Hansard debate 6 September 2023 (Part 2)

Minutes to proceedings 6 September 2023 (Part 2)

[Many thanks to my Town Legal colleague Amy Penrose for detailed work on all this].

Amendment 184A

This amendment clarifies that inserted subsection (5B) in section 38 of the Planning and Compulsory Purchase Act 2004 requires a determination under the planning Acts to be made in accordance with the development plan and any national development management policies, taken together.

So the replacement to section 38 (6) would now read: “the determination must be made in accordance with the development plan and any national development management policies taken together, unless material considerations strongly indicate otherwise”. What does “taken together“ add? Perhaps to avoid an interpretation that the determination needed to be both in accordance with the development plan and in accordance with any national development management policies – instead look at it all together in applying planning judgment as to whether the determination is in accordance? It’s great being a lawyer.

Amendment 190 (tabled by Baroness Thornhill) – voted through against the Government 186 – 180

The amendment requires the Secretary of State to carry out a sustainability appraisal before designating a national development management policy; it must comply with public consultation requirements and a process of parliamentary scrutiny based on processes set out in the Planning Act 2008 (as amended) for designating National Policy Statements, and it must contain explanations of the reasons for the policy, including an explanation of how the policy set out takes account of Government policy relating to the mitigation of, and adaptation to, climate change.

Amendment 191 (tabled by Lord Ravensdale) – voted through against the Government 182 – 172

The amendment places a duty on the Secretary of State and relevant planning authorities respectively to have special regard to the mitigation of, and adaptation to, climate change with respect to national policy, local plan-making and planning decisions.

Amendment 191A (tabled by Lord Crisp) – voted through against the Government 158 – 149

The amendment specifically places a duty on the Secretary of State to promote healthy homes and neighbourhoods – a huge success for the Town and Country Planning Association’s Campaign for Healthy Homes.

(see also a detailed Schedule to be inserted into the Bill setting out for instance what is meant by healthy homes principles – amendment 191B).

Amendment 193A (tabled by Lord Best) – voted through against the Government 173 – 156

The amendment requires local plans to “identify the local nature and scale of housing need in the local planning authority’s area and must make provision for sufficient social rent housing, to eliminate homelessness within a reasonable period as stipulated in the updated local plan, and to provide housing for persons registered on the local housing authority’s allocation scheme within the meaning of section 166A of the Housing Act 1996.” It would apply both “in relation to social housing provided both by the local housing authority where it retains its own housing stock and by private registered providers of social housing”. The information would need to be updated at least annually.

These are all significant interventions. Let’s see the approach that the Government takes back in the Commons. A motion will also be needed to carry over the Bill to the next Parliamentary session, without which we will see (wait for the LURB pun, wait for it, wait) .. LURB’s labours lost.

Simon Ricketts, 9 September 2023

Personal views, et cetera

Photo courtesy of Peter Kostov via Unsplash

Local Plans System Fails Soundness Test

A vision softly creeping, left its seeds while I was sleeping:

Why don’t we test the whole local plans system against the soundness requirement in paragraph 35 of the National Planning Policy Framework?

Of course it’s not an exact fit but what’s sauce for the goose is sauce for the gander (an expression which also occurs to me whenever we have criticism from Government directed at local authorities for not moving faster). Is the current local plans system, for instance:

positively prepared
justified
effective
consistent with national policy?

Plainly not.

Is it a strategy which, as a minimum, seeks to meet the country’s objectively assessed needs? First of all, the 300,000 homes target, whilst undoubtedly being too low, has not been objectively assessed (so as, if nothing else, to reassure the sceptical) and secondly there is an increasing disconnect between that aspiration and local plan making reality.

Is it an appropriate strategy, taking into account the reasonable alternatives, and based on proportionate evidence? Reasonable alternatives? Evidence? Not how national policy-making seems to work.

Deliverable? Of course not.

Consistent with (other) national policy? Given the vital policy objectives to be delivered by proper forward planning – housing, economic growth, climate change mitigation, levelling up – again it’s a no.

I also query whether the proposed changes in the Levelling-up and Regeneration Bill and more detailed implementation proposals, currently being consulted upon, would get to the root of the problems.

This thought occurred when reading the Tandridge local plan inspector’s 10 August 2023 letter to the council’s chief executive, in which the inspector (Philip Lewis) concludes that his concerns as to the soundness of the plan are such that he invites the council to withdraw it, failing which he will write a report setting out his reasoning.

His letter follows a procedural meeting on 27 July 2023 which you can watch on line here . A detailed paper was provided for the inspector by the council ahead of that meeting as a final, unsuccessful, attempt to avoid this outcome. The council issued a statement on 22 August 2023 indicating that it will look to resolve its response to the inspector’s letter at a meeting of the council’s planning policy committee on 21 September 2023.

I was taken back to the opening day of that examination, 8 October 2019, on legal compliance. I’m not sure that I have ever been at a local plan examination session with quite so many lawyers in attendance (not a good thing).

Mr Lewis’ concerns include:

unresolved highway capacity issues following the subsequent refusal of HIF funding for transport infrastructure, including works to junction 6 of the M25 on which the deliverability of the south of Godstone new settlement option was predicated– together with the consequent need for further lengthy transport assessment and modelling work

the need for the sustainability appraisal to reconsider reasonable alternatives in the light of the change in circumstances

the need for the council’s 2017 Gypsy and Traveller Accommodation Assessment to be updated.

The fact that we are already half way through the plan period of the submitted plan which is 2013 to 2033 (incidentally is there anything more absurd than these plans which literally are planning for the past?)

The fact that much of the evidence base for the plan is now out of date, given for instance changes in the Use Classes Order.

Of course, it took time for the scale of the problems facing the council to become clear, particularly on the question of the deliverability of the south of Godstone new settlement proposal once the Government had refused HIF funding for the necessary infrastructure improvements. I know that it is in the public interest that plans generally should not be found unsound and that time should be given to enable plan-making authorities to do what may be needed to arrive at a sound plan, but was it necessary for the process to take almost four years before we finally get to a conclusion that has seemed on the cards for a long time now, sending the authority right back to the beginning?

I don’t want to make this a piece about the Tandridge plan and its site-specific issues. Because, if you have been out of the country for a few years I can reassure you that the York examination is also still underway – the first hearing session having been on 10 December 2019 – and indeed the Welwyn Hatfield examination is still underway – the first hearing session having been on 21 September 2017!

There is a common factor with all three examinations: these are authorities with large areas of green belt within their boundaries and where their local housing needs cannot be met without releasing land from the green belt, leading to politically-charged debates as to

the extent to which any planned shortfall is acceptable;
whether sufficiently exceptional circumstances can be demonstrated so as to justify release;

the selection of appropriate sites (including the extent to which there is reliance on new settlements rather than more dispersed patterns of growth); and as to

whether the selected sites are in fact deliverable.

In areas where housing supply is so constrained, and without any definitive Government guidance as to how these matters are to be resolved, or required timescale for so doing, or consistent, credible, penalties for not having an up to date plan in place, is it any wonder that we are where we are?

To the extent that the Government’s planning reforms would:

weaken the role of the standard method as a starting point for determining how many homes need to be planned for;
remove any requirement for authorities to review green belt boundaries to meet housing needs;

replace the duty to cooperate with an undefined “alignment” test, and

propose removing the “justified” limb of the soundness test

how precisely would these changes assist in say Tandridge, York or Welwyn Hatfield? Would the idea be to allow the authority the freedom to plan to undershoot its local needs by a huge margin and simply accept the consequences of the lack of supply of homes for those needing to live in those areas – for family connections or work or for the sake of achieving balanced communities rather than the lucky few behind a raised drawbridge, perish the thought – to allow the situation to reach boiling point? The process improvements set out in the LURB will help at the margins but will not ease (1) the difficult local politics of arriving at a sensible plan for submission or (2) the difficult task of the inspector at examination (it’s not the local development management policies, or the lack of digital planning, or even the extent of supporting evidence required, which has held up these plans!).

Not only have we had these marathon local plan examinations, akin to the infamous (at the time, maybe now forgotten) Leeds local plan inquiry, the length of which I recall as one of the catalysts for the 2004 Act system in the first place, but we are also seeing authorities trying to read between the lines as to the latitude they perceive that they may now have.

For instance, take Three Rivers Council which has now torn up its draft plan and published a statement announcing that is starting work on an alternative plan that will “protect 98% of [its] precious green belt”, proposing that “the new housing figure for the district over the next 18 years should be 4,852 as opposed to the Government’s high target of 11,466.”

Or take Lichfield District Council which today (25 August 2023) announced that it was proposing to withdraw its submitted plan from examination:

“Councillor Alex Farrell, Portfolio Holder for Housing and the Local Plan, says “It is clear to me that our proposed new Local Plan is not suitable, and I’d like to see a new approach to housing that suits our local communities. We want to explore the idea of a new settlement in the district, as opposed to the current approach that is suffocating local communities with a disproportionate amount of housebuilding without sufficient infrastructure.”

He continues “It’s clear that the proposed new Local Plan 2040, which was submitted for examination last year, was not appropriate given both the changes that we have seen (and continue to see take place) in government national policy in the four years since it was initiated, plus the level of dissatisfaction we heard from residents about it in its current form. It became evident that the proposed Local Plan no longer resonates with the evolving needs of our district, and we needed to change.

“We only have two options. One; progress with the currently submitted plan or two, regroup and build a strong, strategic vision for the district that people can support and adopt. We recommend that we take the second option to deliver a strategy that is appropriate for the district today, and in the future, and therefore our recommendation is to withdraw the current plan and work in consultation with our residents and stakeholders to develop a new approach.”

When is the Government going to stabilise what, in local plan making terms, seems to me to be equivalent to a run on the markets? (Although in the world of planning that’s obviously a very slow walk rather than anything approaching a run). I’ve previously described Michael Gove’s statements on planning reform as akin to Trussenomics in terms of the (presumably wholly unintended) effect that they have been having on plan making. How else to describe it? Doesn’t something need to be said…?

The sounds of silence.

Simon Ricketts, 25 August 2023

Personal views, et cetera

The Message

Double-digit inflation. Can’t take the train to the job, there’s a strike at the station.

Don’t push me cause I’m close to the edge.

I’m trying not to lose my head.

It’s like a jungle sometimes.

The House of Commons rose on Thursday 20 July 2023, and only then did we have a spate of DLUHC announcements from the following Monday onwards.

This blog post simply aims to keep track of it all. For the actual analysis, you will need to tune into two Clubhouse sessions (Clubhouse! It’s a bit like when people talk about “old-school hip hop” – nod appreciatively, high five, lockdown vibes, those were the days were they not?):

– 5 pm, 2 August – Gove’s “long-term plan” – RSVP here

– 5 pm, 3 August – plans, GPDO, fees – RSVP here

I’ll be joined by my rock steady crew: Sam Stafford (HBF), the eponymous Catriona Riddell, Landmark’s summer signing Hashi Mohamed, Annie Gingell (Tetlow King), Claire Petricca-Riding and Nicola Gooch (Irwin Mitchell), my Town Legal partner Victoria McKeegan and also perhaps by you?

We’ll discuss:

Michael Gove’s “long-term plan for housing” speech and press statement (24 July 2023), preceded by the same day by Rishi Sunak’s “PM to build 1 million new homes over this Parliament” announcement

A consultation paper on (more) changes to permitted development rights (24 July 2023)

A consultation paper on the implementation of plan-making reforms proposed in the Levelling-up and Regeneration Bill (25 July 2023)

The Government’s response to its consultation on increasing planning fees and performance (25 July 2023), following on from the draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2023 (laid before Parliament on 20 July 2023)

(All the above are summarised in a Town Legal update, which also features an analysis of the Secretary of State’s recent M&S Oxford Street decision).

A consultation paper on operational reforms to the NSIP consenting process (26 July 2023)

Updates to the following sections of Planning Practice Guidance (both 26 July 2023):

It makes me wonder how I keep from going under.

Simon Ricketts, 28 July 2023

Personal views, et cetera

Drop The Pilot: Community Land Auctions

Hey let’s get Joan Armatrading on the Walkman. We’re going back – way back…

The Levelling-up and Regeneration Bill had its first reading in the House of Commons over a year ago on 11 May 2022. It’s not just intervening political chaos which has caused this slow-moving caravan of disparate policy notions to lurch from side to side with occasional abrupt halts Along the way additional bright notions have been loaded onto it, impeding progress still further.

One of those notions is the old chestnut of community land auctions. Clauses 127 to 137 were added to the Bill in November 2022 without prior consultation, once Michael Gove became Secretary of State, so as to allow community land auctions to be piloted for ten years.

Many of you will remember economist Tim Leunig promoting the idea back in the early days of the Coalition Government. See for instance Tim Leunig’s blog post Housing is expensive in Britain. This is because we have built too few houses for the number of new households – land auctions will help give us the homes we need (LSE, 23 March 2011). In fact some of you may even have been at an event I hosted back then where we had a discussion around a swanky breakfast table at the firm I was then at, with property and planning people quizzing him as to how it would actually work. Leunig is now Gove’s senior policy advisor at DLUHC.

CLAs are of course catnip to many political types and economists, for instance supported by Policy Exchange (see eg Alex Morton’s 2013 paper A Right To Build) and the YIMBY Alliance, as part of the wider thinking on land value capture (see eg my 20 May 2017 blog post Money For Nothing? CPO Compensation Reform, Land Value Capture). My conclusion remains that the introduction of community land auctions would inevitably be harmful to the principled operation of the planning system – it’s just too darned complicated – and to the delivery of development in the right places – for instance it introduces a huge conflict of interest for the local planning authority as between whether to plan for the best places or the best returns. In my view primary legislation to allow for a pilot is premature. If there are excess unearned gains for the state (in addition to what is already extracted via the planning system), why not just openly tax them rather than embark on this three cup trick?

The current concept is set out in pages 125 to 133 of the Explanatory Notes to the Bill.

Clause 127 (3) of the Bill:

“A “community land auction arrangement” means an arrangement provided for in CLA regulations under which—

(a) a local planning authority is to invite anyone who has a freehold or leasehold interest in land in the authority’s area to offer to grant a CLA option over the land, with a view to the land being allocated for development in the next local plan for the authority’s area,

(b) any CLA option granted under the arrangement ceases to have effect if the land subject to the option is not so allocated when that plan is adopted or approved (unless the option has already been exercised or been withdrawn or otherwise ceased to have effect), and

(c) the local planning authority may—

(i) exercise the CLA option and dispose of the interest in the land to a person who proposes to develop the land,

(ii) exercise the CLA option with a view to developing the land itself, or

(iii) dispose of the CLA option to a person who proposes to exercise it and then develop the land.”

Clause 128: “Power to permit community land auction arrangements

(1) This section applies where—

(a) the Secretary of State directs that a local planning authority which is to prepare a local plan may put in place a community land auction arrangement in relation to that plan,

(b) the local planning authority resolves to do so (and that resolution has not been rescinded), and

(c) the community land auction arrangement has not come to an end.

(2) The local plan may only allocate land in the authority’s area for development—

(a) if the land is subject to a CLA option or a CLA option has already been exercised in relation to it, or

(b) in circumstances which are prescribed by CLA regulations.

(3) Any financial benefit that the local planning authority has derived, or will or could derive, from a CLA option may be taken into account—

(a) in deciding whether to allocate land which is subject to the option, or in relation to which the option has been exercised, for development in the local plan;

(b) in deciding whether the local plan is sound in an examination under Part 2 of PCPA 2004.

(4) CLA regulations may make provision about how, or to what extent, any financial benefit may be taken into account under subsection (3) (including provision about how any financial benefit is to be weighed against any other considerations which may be relevant to whether the land should be allocated for development in the local plan or to whether the plan is sound).”

Receipts are to be used to support development in an area by funding infrastructure and paying for the administration of the community land auctions process.

The provisions were debated in House of Lords Committee on 18 May 2023 (the relevant part of the debate starts from amendment 364B) and it might put some flesh on the bones to see how a Government minister, Earl Howe, explains how it is all intended to work:

“Community land auctions are an innovative process of identifying land for allocation for development in a local planning authority’s area in a way that seeks to optimise land value capture. Their aim is to introduce transparency and certainty by allowing local planning authorities to know the exact price at which a landowner is willing to sell their land. The crux of our approach is to encourage landowners to compete against each other to secure allocation of their land for development in the local plan by granting a legally binding option over their land to the local planning authority.

The competitive nature of community land auction arrangements incentivises landowners to reveal the true price at which they would willingly part with their land. If the land is allocated in the local plan upon its adoption, the local planning authority can sell the CLA option, keeping the amount that the successful bidder has paid and capturing the value that has accrued to the land as a result of the allocation. The successful bidder must then pay the price set out by the original landowner in the option agreement to purchase the land. The detailed design of community land auction arrangements will be set out in regulations that will be subject to the affirmative procedure.”

“…sustainable development remains at the heart of our approach. Piloting authorities will decide which land to allocate in their emerging local plans by considering a range of factors, which the Government will set out in guidance. Unlike conventional local plans, when allocating sites, local planning authorities will be able to consider the financial benefits that they are likely to accrue from each site. How, and the extent to which, financial benefits may be taken into account will be determined in regulations. Importantly, the existing requirement to prepare local plans, with the objective of contributing to the achievement of sustainable development under Section 39 of the Planning and Compulsory Purchase Act 2004, will remain.

We are not altering the existing local plan consultation and examination process. Piloting authorities will still be required to consult on the proposed land allocations in their draft local plans, before they are submitted and independently examined in public in accordance with the local plan preparation procedures, as modified by Schedule 7 to the Bill.

… the Secretary of State is required to lay a report before each House of Parliament on the effectiveness of the pilot within the timeframe set out in Clause 134(2). There is a requirement to publish this report, which means that it will be publicly accessible and available to any combined authority that was involved in the pilot.

The noble Baroness, Lady Taylor, asked about whether there had been prior consultations. We will consult on community land auctions shortly, and taking part in the pilot will be voluntary for local authorities. We need the powers in the Bill to enable the pilot to happen.

I appreciate the thought behind my noble friend’s Amendment 366. However, as community land auctions are a new and innovative process for identifying land for allocation for development, our view is that it is right that the Bill makes provision for them to be piloted on a strictly time-limited basis.

If community land auction arrangements are deemed successful, and if there is ambition to extend the approach, further primary legislation would be required to implement them on a permanent basis. As we do not have the evidence about their effectiveness yet, we think it right that the Bill does not include provisions that could make CLAs a permanent fixture. Instead, the Government will take a decision at the relevant point in the future, based on the evidence.”

“The simplest way I can describe this is that community land auctions will be a process of price discovery. In the current system, local planning authorities have to make assumptions about the premium required by a reasonable landowner to release their land for development. For Section 106 agreements, this manifests itself through viability negotiations between the local planning authority and a developer. As these can be negotiated, there is a higher risk that, in effect, higher land prices lead to reduced developer contributions, rather than contributions being fully priced by developers into the amount that they pay for land.

For the community infrastructure levy and the proposed infrastructure levy, a levy rate is set for all development within certain parameters. When setting rates, the local planning authority has to calculate how much value uplift will occur on average, and has to make assumptions about landowner premiums and set a levy rate on that basis. The actual premium required by individual landowners will not be available to local planning authorities and will vary depending on individual circumstances. If the local planning authority makes an inaccurate assumption about landowner premiums, they may either make a lot of sites unviable by setting too high a levy rate, or else they will collect much less than they might have done otherwise by setting too low a levy rate.

Under the CLA process, landowners bid to have their land selected for allocation in an emerging local plan, as I have described, by stating the price at which they would willingly sell their land to the LPA for development. The offer from the landowner, once an option agreement is in place with the LPA, becomes legally binding. The LPA can either exercise it themselves, thereby purchasing the land, or auction it to developers. The competitive nature of CLAs incentivises landowners to reveal the true price at which they would willingly part with their land. If they choose to offer a higher price, they risk another piece of land being allocated for development, in which case they will not secure any value uplift at all.”

But if you’re regularly involved in local plan making and/or the promotion of land for development, obvious points arise, none of which are addressed in the above – or anywhere as far as I can see:

the nature, terms and timing of these “options”. They would need to be investment-grade binding commitments on the owner (or owners – many potential allocations are a patchwork of interests knotted together by land promoters) and the owner’s successors in title, with all those with relevant interests (eg mortgagees, tenants) having consented, legally binding for a very long period of time, until drawdown which would be way past local plan adoption, with no get out if any owner changes its plans.
The above means heavy-duty conveyancing input on the part of the owner but also on the part of the local authority, all within the necessary local plan preparation window. Given the number of sites proposed in any local authority’s “call for sites” this is a truly massive amount of work to be resourced by the authority, even with terms as standardised as possible.
The proposed option price by the land owner is going to be influenced by whether best values are to be achieved (1) blind via this route, (2) by in some way bringing forward a scheme outside the process (if this is ruled out the system is utter nationalisation and state control of development – if that’s what you voted for, fine, but I suspect it’s not) or (3), as has happened with other forms of development land tax, by just waiting it out for a less restrictive regime.
Say two pieces of land are put forward as alternative locations for the expansion of a town, one less sustainable than the other (eg it may be greenfield rather than brownfield, remote from public transport connections). The owner of the less sustainable site may offer to make its land available for a lower price. To what extent can or should the authority take into account the additional monies to be extracted from on-sale of the less sustainable site in deciding which to allocate? My early years as a planning lawyer were in the out of town supermarket wars, where the common situation was the local authority seeking to promote a supermarket on its own, worse, site in opposition to better proposals by others, for obvious reasons that at the time of course had to remain unspoken because having regard to the authority’s potential financial returns was obviously verboten. Just think how this would play out under what is proposed – and with much of the decision making inevitably taking place behind closed doors due to inevitable commercial confidentiality.
How is commercial and mixed used development to be approached and dealt with in valuation terms? Is this how we are going to allocate land for major logistics or industry? It’s a cookie cutter approach as presented: housing, housing, housing.
The local authority is envisaged to be the ring master and banker of the whole processes. Whilst this may be welcome in some ways, capacity building would be required on a huge scale.
In any event, the current system already minimises land values, and will increasingly do that if relatively recent changes to the viability process are allowed to bed down. Every time development comes forward with less affordable housing than required by policy, that is because the authority, or inspector on appeal, has been satisfied, on the basis of valuation advice, that no more affordable housing could be extracted and the scheme still proceed, based on an appraisal that doesn’t feed in the price the developer may actually have paid for the land but, usually, just existing use value with a premium set at the minimum that the valuers agree would have been necessary to persuade the owner to sell. I would like to see an explanation of why the option price offered by a land owner would be likely to be lower than EUV+.
Oh and there’s nothing “community” about it.

That’s just the outcome 15 minutes’ thought at the kitchen table on a Saturday morning with Joan Armatrading on in the background.

Some people seem to think that the planning system can be used as a sandbox for trying out these over-complicated, theoretical constructs. I set out my brief thoughts on the infrastructure levy last week and see also the “no hope value” thinking. We’re barking up the wrong tree folks. Drop the pilot. We don’t have the time. Get the existing system to work, now, with more resources and less complexity, better guidance and – perish the thought – some political consistency. Use the local plans system for planning and the tax system for taxation rather than creating something which sounds more like a complicated board game. In my humble opinion.

Simon Ricketts, 19 May 2023

Personal views, et cetera

The phrase to “drop the pilot” means to abandon a trustworthy adviser. This 1890 Punch cartoon depicts the dismissal of Otto von Bismarck from the Chancellorship of the German Empire by Wilhelm II.

May Day, May Day – Labour’s Proposed Approach To Planning Reform

Brave timing, with local elections this week, but it is helpful finally to see some detail today as to Labour’s proposed approach to planning reform in today’s Times piece, Starmer’s growth plan is built on houses (The Times, 1 May 2023 – behind paywall):

“Labour will pledge to restore housebuilding targets and hand more power to local authorities; promise 70 per cent home ownership and hundreds of thousands of new council homes. Given the resistance of so many local authorities to development, that may sound like a contradiction in terms. But I’m told a Starmer government would wield both carrot and stick: councils would be made to work together to come up with plans for development at a regional level, spreading a burden few want to shoulder individually, with cash and infrastructure as the prize for new housing. (Bafflingly, they are under no obligation to work together now.) If proposed developments meet the standards set out in those local plans, they will be approved. So no longer would each town hall have to agree to what one senior Labour source calls “shitty speculative developments” to meet targets arbitrarily imposed upon them. But nor will they be allowed to opt out of building either.

Starmer’s government would also look anew at the green belt, swathes of which — including a petrol station in Tottenham Hale, north London — are neither green nor pleasant. Those sites would be liberated. Not all politics is local, however. We can also expect to hear more about national projects, driven from the centre too: intensive development on the 50-mile Oxford-Cambridge Arc and a generation of new towns are all under discussion as Starmer’s aides work up plans to be announced at Labour conference in September.”

It’s Been A Good Year For The ROSEs (& Bloggers Etc)

A tumultuous year ends. Authority after authority in the south east, or the Rest of the South East, as we used to call it before regional planning so as to exclude London, is pausing or going slow with its local plan, given the signals from Government that authorities will soon find it easier to decide not to plan to meet their local housing needs. (It’s not just in the south east I know but I desperately needed to make the Elvis Costello pun work).

In terms of policy, nothing yet has changed at all. But the excuses are already being found.

Planning Resource for instance reported on 19 December 2022 that:

Horsham District Council has delayed its cabinet meeting to consider its proposed Regulation 19 consultation draft plan from 15 December 2022.
Mole Valley District Council has paused preparation of its new local plan/
The Vale of White Horse and South Oxfordshire District Councils have announced an 11 month delay to the preparation of their emerging joint local plan

And this was before Michael Gove’s 22 December 2022 announcements as to proposed reforms to national planning policy that I blogged about that day (and which we will be discussing on clubhouse at 4 pm, 4 January – tune in to blow those cobwebs away! Join via this link – do RSVP in the link and get it in your diaries).

Someone please post some stats, I can’t immediately find them in my post-Christmas haze, but these delays have of course been building up over the year. Back on 2 September 2022 Planning Resource was reporting on the 19 authorities that have withdrawn or delayed local plans in the past year . Before that on 26 April 2022 Lichfields were reporting on 11 authorities that had either stalled, delayed or withdrawn their local plans. Go back even further to my 12 February 2022 blog post, Local Plan Breaking.

No doubt we will see over the course of 2023 how all this plays out in the light of the two successive waves of changes to the NPPF that we have now been told to expect.

It’s also been a good year for the bloggers and podcasters. Shout outs to Zack the Planorak, Nicola the Gooch, Sam 50 Shades Stafford, Raj Compulsory Reading Gupta and to my colleagues responsible for the Planning Law (With Chickens) podcasts (Victoria McKeegan, Nikita Sellers and Meeta Kaur). You all keep me on my toes and occasionally wondering what I have to add. But in any event thank you everyone for continuing to read and engage – sitting down every week for an hour or two to do these notes to self remains the only way I can hope to keep track for myself of what is happening and for people to find this occasionally useful or entertaining is always an unexpected bonus..

These were my most-read posts of 2022:

New NE Nutrient Neutrality & Recreational Impact Restrictions (+ DEFRA Nature Recovery Green Paper) (18 March 2022)
Running Down That Hillside (2 November 2022)
EZ Does It: Charter Cities, Freeports, Development Corporations (30 July 2022)
Local Plan Breaking (12 February 2022)
It Will Soon Be Christmas & We Really Don’t Have To Rush To Conclusions On This New NPPF Consultation Draft (22 December 2022)

Looking back, these were the posts that pretty much wrote themselves in reaction to what was happening all around us: the neutralities issues, the implications of the Supreme Court’s ruling in Hillside, the bizarre happenings within that brief Truss premiership, the local plan making crisis and of course the Government’s planning reform agenda. In fact, at the foot of this post there is a table of month by month views of the blog since it started in June 2016. Views have been dependent not on any writing quality but on subject matter (oh, and the lockdowns certainly helped).

I’m sure there will be plenty of planning law to write about next year, all of it as yet unplanned.

Healthy new year all. And in the wise words of Elvis Costello: Get Happy.

Simon Ricketts. 31 December 2022

Personal views, et cetera

Prospective Prospectus

My 6 December 2022 blog post Gove Gives: Local Housing Need Now Just “Advisory” summarised the contents of his written ministerial statement that day which promised a “National Planning Policy Framework prospectus, which will be put out for consultation by Christmas”.

I mentioned in the blog post a letter which he had written to all MPs the previous day which had gone into more detail that the statement. I hadn’t included a link to the letter. It is here. What is even more interesting is that there is another letter, of the same date, written just to Conservative MPs. The link to that one is here.

The introduction to the letter to Conservative MPs makes the intended policy direction very clear. For instance:

“Whatever we do at a national level, politics is always local and there is no area that demonstrates this more than planning. Through reforms made by Conservative-led governments since 2010, we have a locally-led planning system – for instance, by scrapping policies like top-down regional targets that built nothing but resentment – and introducing neighbourhood planning. These reforms have delivered a record of which Conservatives can be proud. I also do not need to remind you that under the last Labour government, housebuilding reached its lowest rate since the 1920s.

But there is much more to do to ensure we can build enough of the right homes in the right places with the right infrastructure, and to ensure that local representatives can decide where – and where not – to place new development. As Conservatives, we recognise both the fundamental importance of home ownership and that we can only deliver the homes we need if we bring the communities we represent with us. These are the promises on which we stood in our manifesto and ones that I and the Prime Minister are determined to deliver.

I am therefore writing to set out the further changes I will be making to the planning system, alongside the Levelling Up and Regeneration Bill, which address many colleagues’ concerns. They will place local communities at the heart of the planning system.

As you know I share the views of many colleagues about the current system. That it does not provide the right homes in the right places, and at its worst risks imposing ever more stretching housing targets that are out of touch with reality – leading to developers taking advantage through planning by appeal and speculative development. Communities feel that they are under siege, and I am clear that this approach will never be right or sustainable if we want to build the homes that our communities want and need.”

This Government weaves around planning reform like Kylian Mbappe. First the 2020 white paper, then the u-turn after the Chesham and Amersham by-election, then the Kwarteng “growth growth growth” plan – and now placing house-building delivery firmly in the hands of “communities” – in reality, at root, existing home owners – with a weakened process for local plan examination:

“I will ensure that plans no longer have to be ‘justified’, meaning that there will be a lower bar for assessment, and authorities will no longer have to provide disproportionate amounts of evidence to argue their case.”

Is all of this just another feint, a shimmy past the Tory rebel MPs to ensure that planning reform can actually progress? Or genuine capitulation – genuflection to the election pamphlet needs of political colleagues? Zack Simons doesn’t mince his words in his 8 December 2022 blog post Notes on reform: the Government gives up – essential reading.

The matters to be consulted upon in the forthcoming prospectus are numerous. Steve Quartermain and I were counting them this week and ran out of fingers – the letters include commitments to consultation as to at least the following matters:

Changes to the method for calculating local housing need figures
Dropping the requirement for a 20% buffer to be added to housing land supply numbers for both plan making and decision taking
What should be within the scope of the new National Development Management Policies
Each new National Development Management Policy before it is brought forward
Detailed proposals for increases in planning fees
A New planning performance framework that will monitor local performance across a broader set of measures of planning service delivery, including planning enforcement
Further measures (i) allowing local planning authorities to refuse planning applications from developers who have built out slowly in the past and (ii) making sure that local authorities who permission land are not punished under the housing delivery test when it is developers who are not building
A new approach to accelerating the speed at which permissions are built out, specifically on a new financial penalty
How to address the issue of the planning system being “undermined by irresponsible developers and landowners who persistently ignore planning rules and fail to deliver their commitments to the community”.
Amending national policy to support development on small sites, particularly with respect to affordable housing
Further measures that would prioritise the use of brownfield land
Details of how a discretionary registration scheme for short term lets in England would be administered
Reviewing the Use Classes Order so that it “enables places such as Devon, Cornwall and the Lake District to better control changes of use to short term lets if they wish“.

There is a lot to take in here – both what is written and what is between the lines. To try to help make sense of the prospectus when it lands, there will be a special Planning Law Unplanned clubhouse discussion at 4pm on 4 January 2023 featuring various planners and planning lawyers, including myself, Zack, Steve and many more. Join the event via this link – do RSVP in the link and get it in your diaries.

Simon Ricketts, 10 December 2022

Personal views, et cetera

Gove Gives: Local Housing Need Now Just “Advisory”

A deal has been reached between the Government and those rebel MPs who had threatened to derail the Levelling-up and Regeneration Bill. And so we have Michael Gove’s written statement to the House of Commons today 6 December 2022, in the wake of a letter written to all MPs on 5 December 2022 and a 5 December 2022 press statement. Of course, when we talk about the Bill, that is short-hand for the reform package as a whole, including most crucially the proposed amendments to the National Planning Policy Framework.

Those proposed amendments are soon to be fleshed out in the National Planning Policy Framework prospectus, “which will be put out for consultation by Christmas” (i.e. by the time that the Commons rises on 20 December 2022). It is going to be thin gruel for those of us who believe that this country has a housing crisis and that part of the solution to that crisis is to build more homes, where they are most needed.

I’ll just summarise here what the written ministerial statement covers. The letter to MPs goes into further detail.

There will be an amended method for calculating local housing need, which will be “advisory”. “It will be up to local authorities, working with their communities, to determine how many homes can actually be built, taking into account what should be protected in each area – be that our precious Green Belt or national parks, the character of an area, or heritage assets. It will also be up to them to increase the proportion of affordable housing if they wish.”

Of course it is not currently mandatory that local authorities plan for the level of local housing need arrived at via the current standard method, but there is a heavy onus on authorities to justify departures.

Paragraph 35 of the current NPPF sets out the “soundness test”, including that plans are “positively prepared”, meaning that they are “providing a strategy which, as a minimum, seeks to meet the area’s objectively assessed needs; and is informed by agreements with other authorities, so that unmet need from neighbouring areas is accommodated where it is practical to do so and is consistent with achieving sustainable development.”

Paragraph 61 of the current NPPF says this:

“To determine the minimum number of homes needed, strategic policies should be informed by a local housing need assessment, conducted using the standard method in national planning guidance – unless exceptional circumstances justify an alternative approach which also reflects current and future demographic trends and market signals. In addition to the local housing need figure, any needs that cannot be met within neighbouring areas should also be taken into account in establishing the amount of housing to be planned for.”

It is plain that those circumstances are now to be widened, in ways which are more subjective, eg relying on perceived capacity constraints based on “the character of an area” (the letter to MPs gives the example of for instance “new blocks of high-rise flats which are entirely inappropriate in a low-rise neighbourhood” and talks of the need for “gentle densities”). It will be open season for authorities and/or local campaigners to press the case for lower numbers to be adopted and/or for the required proportion of affordable housing to be set at such a financially onerous level that in practice chokes off the prospect of development. The proposed abolition of the duty to cooperate and its replacement by an “alignment” mechanism yet to be articulated just increases the plain jeopardy here. Open question: how will the Government be able to hold to its 300,000 homes a year target if significant numbers of authorities adjust their numbers downwards? Another open question: how important is mitigating the housing crisis to the Government versus fending off internal rebellions and having constituency-friendly developer-phobic policies?

Five year housing land supply requirement:

“We will end the obligation on local authorities to maintain a rolling five-year supply of land for housing where their plans are up-to-date. Therefore for authorities with a local plan, or where authorities are benefitting from transitional arrangements, the presumption in favour of sustainable development and the ‘tilted balance’ will typically not apply in relation to issues affecting land supply.

I also want to consult on dropping the requirement for a 20% buffer to be added for both plan making and decision making – which otherwise effectively means that local authorities need to identify six years of supply rather than five. In addition, I want to recognise that some areas have historically overdelivered on housing – but they are not rewarded for this. My plan will therefore allow local planning authorities to take this into account when preparing a new local plan, lowering the number of houses they need to plan for.”

“…Where authorities are well-advanced in producing a new plan, but the constraints which I have outlined mean that the amount of land to be released needs to be reassessed, I will give those places a two year period to revise their plan against the changes we propose and to get it adopted. And while they are doing this, we will also make sure that these places are less at risk from speculative development, by reducing the amount of land which they need to show is available on a rolling basis (from the current five years to four).”

“I will increase community protections afforded by a neighbourhood plan against developer appeals – increasing those protections from two years to five years…”

Ensuring timely build out:

“I already have a significant package of measures in the Bill to ensure developers build out the developments for which they already have planning. I will consult on two further measures:

i) on allowing local planning authorities to refuse planning applications from developers who have built slowly in the past; and

ii) on making sure that local authorities who permission land are not punished under the housing delivery test when it is developers who are not building.

I will also consult on our new approach to accelerating the speed at which permissions are built out, specifically on a new financial penalty.”

Character of a developer:

“I have heard and seen examples of how the planning system is undermined by irresponsible developers and landowners who persistently ignore planning rules and fail to deliver their legal commitments to the community. I therefore propose to consult on the best way of addressing this issue, including looking at a similar approach to tackling the slow build out of permissions, where we will give local authorities the power to stop developers getting permissions.”

Brownfield first:

“I will consult to see what more we can do in national policy to support development on small sites particularly with respect to affordable housing and I will launch a review into identifying further measures that would prioritise the use of brownfield land. To help make the most of empty premises, including those above shops, I am reducing the period after which a council tax premium can be charged so that we can make the most of the space we already have. I will also provide further protection in national policy for our important agricultural land for food production, making it harder for developers to build on it.”

Tourist accommodation/short-term lets

“I intend to deliver a new tourist accommodation registration scheme as quickly as possible, working with DCMS, starting with a further short consultation on the exact design of the scheme. I will also consult on going further still and reviewing the Use Classes Order so that it enables places such as Devon, Cornwall, and the Lake District to control changes of use to short term lets if they wish.”

More anon.

Simon Ricketts, 6 December 2022

Personal views, et cetera

Needs, Damned Needs & Logistics

Will the Government’s proposed planning reforms help bring forward more logistics floorspace, for which there is an acknowledged and unmet need? We’ve been talking about the housing crisis (now apparently – wrongly – seen by Michael Gove as a “not enough home-owners” crisis) for so long now but what about the need for other land uses? Logistics (warehousing and distribution in old money) is a prime example. It has to be accommodated in the wider public interest – unless we are going to change radically our economy, life style expectations and the way in which we source much of our food and other products – but has locational constraints and the need is not necessarily “local”. How do we make sure that deliverable sites are allocated or can otherwise come forward?

Land-hungry as it can be, and sometimes competing for sites which might otherwise be released for residential development (meaning that clear policy guidance is particularly important), there are various reasons why more “big box” and “last mile” logistics space is needed. For instance:

⁃ the structural change in shopping patterns, with a huge move, accelerated by the pandemic, towards on-line retail.

⁃ the drive on the part of operators towards more efficient, better located and sustainable modern facilities – ideally rail-connected, certainly increasingly automated.

⁃ Post-B****t changes in delivery networks and the urgent need for more resilient supply chains, demonstrated by recent temporary product shortages

⁃ the Government’s freeports agenda.

The NPPF currently says this:

“Planning policies should:

a) set out a clear economic vision and strategy which positively and proactively encourages sustainable economic growth, having regard to Local Industrial Strategies and other local policies for economic development and regeneration;

b) set criteria, or identify strategic sites, for local and inward investment to match the strategy and to meet anticipated needs over the plan period;

c) seek to address potential barriers to investment, such as inadequate infrastructure, services or housing, or a poor environment; and

d) be flexible enough to accommodate needs not anticipated in the plan, allow for new and flexible working practices (such as live-work accommodation), and to enable a rapid response to changes in economic circumstances.” (paragraph 82).

The Government’s planning practice guidance is more specific:

“How can authorities assess need and allocate space for logistics?

The logistics industry plays a critical role in enabling an efficient, sustainable and effective supply of goods for consumers and businesses, as well as contributing to local employment opportunities, and has distinct locational requirements that need to be considered in formulating planning policies (separately from those relating to general industrial land).

Strategic facilities serving national or regional markets are likely to require significant amounts of land, good access to strategic transport networks, sufficient power capacity and access to appropriately skilled local labour. Where a need for such facilities may exist, strategic policy-making authorities should collaborate with other authorities, infrastructure providers and other interests to identify the scale of need across the relevant market areas. This can be informed by:

• engagement with logistics developers and occupiers to understand the changing nature of requirements in terms of the type, size and location of facilities, including the impact of new and emerging technologies;

• analysis of market signals, including trends in take up and the availability of logistics land and floorspace across the relevant market geographies;

• analysis of economic forecasts to identify potential changes in demand and anticipated growth in sectors likely to occupy logistics facilities, or which require support from the sector; and

• engagement with Local Enterprise Partnerships and review of their plans and strategies, including economic priorities within Local Industrial Strategies.

• Strategic policy-making authorities will then need to consider the most appropriate locations for meeting these identified needs (whether through the expansion of existing sites or development of new ones).

• Authorities will also need to assess the extent to which land and policy support is required for other forms of logistics requirements, including the needs of SMEs and of ‘last mile’ facilities serving local markets. A range of up-to-date evidence may have to be considered in establishing the appropriate amount, type and location of provision, including market signals, anticipated changes in the local population and the housing stock as well as the local business base and infrastructure availability.

Paragraph: 031 Reference ID: 2a-031-20190722”

The reality is that very often local plans have not kept pace with the extent of need. I wrote about two decisions by the Secretary of State to allow appeals in relation to large logistics proposals in the green belt, in Bolton and Wigan in my 25 June 2021 blog post The Very Specials.

It is certainly a hot market: Logistics space under pressure and could run out in just five months (London First in partnership with CBRE, 3 March 2022).

As somewhat of an advocacy document for the sector, the BPF industrial committee published in January 2022, in conjunction with Savills, Levelling Up – The Logic of Logistics, a “report demonstrating the wider economic, social and environmental benefits of the industrial & logistics sector”, going into detail with facts, figures and examples as to the extent of the current need and extent of historically supressed demand, the functions of logistics space in the economy, the nature of the jobs created, sustainability credentials and its potential “levelling up” role (was this indeed a factor in those Bolton and Wigan decisions?).

The document repeats from the BPF’s Employment Land Manifesto (July 2021) what changes are sought to the planning system:

“■ Introducing a Presumption in Favour of Logistics Development … when precise criteria are met. This is needed as Local Plans can take years to be adopted and therefore are completely out of kilter with the pace of market changes;

■ Ensuring Local Plans allocate sites in the right locations to respond to a broad range of market needs;

■ Modernising Employment Land Reviews to allow for the utilisation of ‘real time’ information so that they can be kept up to date; and

■ Introducing an Employment Land Delivery Test to ensure that a commensurate amount of employment land is brought forward to counterbalance housing and that any employment land lost to other uses is delivered in the right locations. If a local planning authority failed to meet the delivery test, a presumption in favour of sustainable logistics development could be engaged.”

My 14 May 2022 blog post Does LURB Herald A More Zonal Approach to Planning After All? focused on housing issues but the risks are at least as great for logistics (and indeed industrial development more generally and of course often the boundary lines between light industrial, general industrial and logistics are increasingly blurred). With a planning system which is even more plan-led, where planning decisions are to be made in accordance with the development plan and national development management policies “unless material considerations strongly indicate otherwise”, and with the duty to co-operate with other local planning authorities abolished, logistics promoters will have to put all their faith in each local planning authority making the right choices, in an environment where this form of development, often necessarily on green field sites, can often be locally unpopular. Might national development management policies indeed point towards a criteria-based presumption on certain types of unallocated land? We just don’t know.

Of course, it may be that we start to see some large logistics schemes go by way of the Planning Act 2008 NSIPs route, requiring a direction first from the Secretary of State that the project is indeed to be considered a nationally significant infrastructure project. However, until such time as the procedure is reformed, it is an enormous undertaking in terms of process. The track record for business and commercial DCOs is not good: two sought, two withdrawn! The DCO application for the London Resort theme park in Kent was withdrawn on 29 March 2022 and on 13 April 2022 the Secretary of State withdrew (at the request of the promoter, so that the proposal could continue by way of a Town and Country Planning Act application for planning permission) the direction that he had previously made that phase 2 of the international advanced manufacturing park (IAMP) proposal in Sunderland be treated as an NSIP. Of course, the position for rail-connected logistics schemes which meet the tests in section 26 of the 2008 Act for a strategic rail freight interchange is more positive, with four DCOs made to date (Daventry, East Midlands Gateway, Northampton Gateway and West Midlands Interchange).

We will be discussing many of these issues on clubhouse at 6 pm on Tuesday 24 May, where we will be focusing on the BPF’s Levelling Up – the Logic of Logistics report and, in particular, the likely prognosis for industrial and logistics development under the planning reforms now announced. I’ll be joined by Gwyn Stubbings (GLP) and Ben Taylor (Newlands) from the BPF’s industrial committee, together with the BPF’s head of planning and development Sam Bensted. Join us here.

A little further ahead, please also consider registering for a Town Legal/Landmark Chambers webinar (yes a good old fashioned 2020-style webinar…) at 5 pm on Monday 6 June back on the theme of housing: “Will the Bill deliver more or less housing? Yes or no?” Simon Gallagher (Department of Levelling Up, Housing and Communities) will join Zack Simons (Landmark Chambers), Kathryn Ventham (Barton Willmore now Stantec) and myself in a session chaired by Town Legal’s Meeta Kaur. Join us here.

Simon Ricketts, 22 May 2022

Personal views, et cetera

Image from *Levelling up – the logic of logistics*, courtesy of the BPF and Savills

Does LURB Herald A More Zonal Approach to Planning After All?

I’ll explain what I mean in a moment.

But first some preliminaries.

LURB of course seems to be the now accepted acronym for the Levelling-up and Regeneration Bill, laid before Parliament on 11 May 2022.

The Bill proposes a wide range of legislative measures across local government, regeneration, planning and compulsory purchase.

Aside from the Bill itself it’s worth having to hand:

⁃ the Explanatory Notes

⁃ the Government’s policy paper

⁃ the Government’s response to the Select Committee report on the planning white paper

My Town Legal colleagues have put together a fantastic (I think) 17 page summary of the main planning and compulsory purchase provisions of the Bill. Thanks Safiyah Islam and the following contributors:

• Part 3, Chapter 1 – Planning Data – Aline Hyde

• Part 3, Chapter 2 – Development Plans – Emma McDonald

• Part 3, Chapter 3 – Heritage – Cobi Bonani

• Part 3, Chapter 4 – Grant and Implementation of Planning Permission – Lucy Morton

• Part 3, Chapter 5 – Enforcement of Planning Controls – Stephanie Bruce-Smith

• Part 3, Chapter 6 – Other Provision – Stephanie Bruce-Smith

• Part 4 – Infrastructure Levy – Clare Fielding

• Part 5 – Environmental Outcomes Reports – Safiyah Islam

• Part 6 – Development Corporations – Amy Carter

• Part 7 – Compulsory Purchase – Raj Gupta

* Relevant clauses in Part 2 (Local Democracy and Devolution), Part 8 (Letting by Local Authorities of Vacant High-Street Premises), Part 9 (Information About Interests and Dealings in Land) and Part 10 (Miscellaneous) – Victoria McKeegan

If you would like to receive further detailed updates from time to time please email town.centre@townlegal.com.

I held a Clubhouse session on 12 May 2022 where I discussed the changes and their possible implications alongside Catriona Riddell, Phil Briscoe, Nick Walkley and Meeta Kaur. It is available to listen to here.

For a deeper dive into the compulsory purchase elements, do join our next Clubhouse session at 6 pm on Tuesday 17 May 2022, where my colleagues Raj Gupta and Paul Arnett will be leading a discussion with special guests Charles Clarke (DLUHC, previous chair of the Compulsory Purchase Association), Henry Church (CBRE, and current chair of the Compulsory Purchase Association), Caroline Daly (Francis Taylor Building), Virginia Blackman (Avison Young) and Liz Neate (Deloitte). Some line up! Join here.

Raj and Paul have also started a blog, Compulsory Reading, focused on CPO issues. The first post is here and, guess what, this will be compulsory reading if your work touches at all on the intricate and changing world of compulsory purchase law.

Phew! So what was I getting at in the heading to this post? Surely any fule kno that there was once a government white paper in August 2020 that, amongst other things, proposed a more zonal approach to planning – with local plans throwing all areas into three hoppers: protected, restricted and growth – but that the political lesson learned was that this would be a vote loser and so the zonal approach was abandoned by incoming Secretary of State Michael Gove in the wake of the Chesham and Amersham by-election?

The idea of growth areas (where allocation would amount to automatic development consent) has certainly been abandoned, but the consequence of a number of the proposals in the Bill in my view leads us more towards a system where there is much less decision making flexibility in relation to individual planning applications and appeals. Instead, planning decisions will need to be made in accordance with the development plan and national development management policies “unless material considerations strongly indicate otherwise”.

So developers will need to make sure that:

⁃ development plans (local plans, neighbourhood plans) etc allocate the necessary land.

– the associated mandatory local design codes are workable

⁃ they can work within the constraints of whatever national development management policies the Government arrives at.

If development accords with these requirements, planning permission should be a doddle. If not, you plainly need to overcome a heavy presumption against. Our current flexible system (sometimes good, sometimes bad) will take a big lurch towards being rule-based or, dare I say it, zonal.

This may be a Good Thing or it may be a Bad Thing. Much depends on whether development plans, local design codes and national development management policies are properly tested for their realism. There will be even more focus on testing the soundness of local plans.

However, when it comes to local plan making, there are some major unresolved uncertainties:

⁃ First, what housing numbers do local authorities need to plan for? The Government still aspires to a 30 month local plan preparation to adoption timescale but that is only going to work if you have a largely “plug in and play” approach to the numbers, as was envisaged in the White Paper. What will happen to the standard methodology? We don’t get know. The Government’s policy paper says this:

“The changes in the Levelling Up and Regeneration Bill will require a new National Planning Policy Framework for England. The Government continues to listen to the representations of MPs, councillors and others on the effectiveness not only of the formula but the surrounding policies. Alongside Committee stage of the Bill, it intends to publish an NPPF prospectus setting out further thinking on the direction of such policies.”

What numbers are we planning for as a country? Are we still targeting 300,000 homes a year? The Government’s response to the Select Committee report on the planning white paper says this:

“The Government is determined to create a market that builds the homes this country needs. Our ambition is to deliver 300,000 homes per year on average and create a market that will sustain delivery at this level. There is compelling evidence that increasing the responsiveness of housing supply will help to achieve better outcomes. There seems to be consensus that 250,000 to 300,000 homes per annum should be supplied to deliver price and demand stability. For example, a 2014 joint KPMG and Shelter report highlighted that 250,000 homes per annum were needed to address price and demand pressures.”

⁃ Secondly, what will replace the duty to co-operate, which will be abolished? What will the new duty to assist really amount to? Can authorities adjoining urban areas with high unmet housing needs simply turn away from meeting those needs?

⁃ Thirdly, what if the allocations in the plan prove to be undeliverable or do not come forward? The safety net/potential stick of the five year housing land supply requirement (and presumably the tilted balance) in the case of up to date plans is to be abolished according to the policy paper:

“To incentivise plan production further and ensure that newly produced plans are not undermined, our intention is to remove the requirement for authorities to maintain a rolling five-year supply of deliverable land for housing, where their plan is up to date, i.e., adopted within the past five years. This will curb perceived ‘speculative development’ and ‘planning by appeal’, so long as plans are kept up to date. We will consult on changes to be made to the National Planning Policy Framework.”

Much is to be resolved here before we can begin to work out whether the proposals in the Bill will be an improvement on the present position.

Of course, the Government recognises that more work is needed. The following forthcoming consultation processes are identified:

“Technical consultations on the detail of the Infrastructure Levy and changes to compulsory purchase compensation.

• A consultation on the new system of Environmental Outcomes Reports which will ensure we take a user-centred approach to the development of the core elements of the new system, such as the framing of environmental outcomes as well as the detailed operation of the new system.

• A technical consultation on the quality standards that Nationally Significant Infrastructure Projects will be required to meet to be considered for fast-track consenting and associated regulatory and guidance changes to improve the performance of the NSIP regime.

• Proposals for changes to planning fees.

• Our vision for the new National Planning Policy Framework (NPPF), detailing what a new Framework could look like, and indicating, in broad terms, the types of National Development Management Policy that could accompany it. We will also use this document to set out our position on planning for housing, and seek views on this, as well as consulting on delivering the planning commitments set out in the British Energy Security Strategy.”

I hope this serves as some sort of introduction to the Bill and a taster as to some of the issues which will be occupying so many of us as the Bill passes through its Parliamentary stages. I don’t expect it to be on the statute book before early 2023, with a fair wind, and most of its provisions will not be in force until 2024 at the earliest. Final health warning: Bills change – we can expect plenty of amendments, omissions and additions over coming months.

Aside from my earlier plugs for our newsletters and the Planning Law Unplanned clubhouse sessions, I would also recommend two other blog posts: those of Nicola Gooch and Zack Simons . None of us has come up with a satisfactory LURB pun yet but I’m sure we all have our teams working on it.

Simon Ricketts, 14 May 2022

Personal views, et cetera

Beauty, Infrastructure, Democracy, Environment, Neighbourhoods

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