My Lords, it is a pleasure to open the Second Reading debate of the Levelling-up and Regeneration Bill. For decades, successive Governments have failed to address the inequality of opportunity in our country. Economic growth has for too long been concentrated in a select few areas. This Bill creates the foundations for our long-term efforts to address entrenched geographic disparities across the UK. It does not purport to deal with every aspect covered in the levelling up White Paper, although noble Lords could be forgiven for thinking otherwise, given the scale of the Bill.
We all know the scale of the challenge that we face in levelling up our country. We see the consequences of geographic disparity across the country: in the unaffordability of housing for so many; in the hollowing out of our communities, as people leave for lack of local opportunities; and in the stark differences in educational attainment, health and quality of life depending on where you live.
The case for change is both economic and moral. Leaving parts of our country behind means opportunities are missed through underinvestment and overfocus on specific sectors. That costs us in terms of economic growth, of benefiting from our world-leading research and, most importantly, of each person who cannot achieve their potential through no fault of their own. We have a duty to support those already affected by geographic disparities, but we must also solve the underlying problems. To treat that support as the long- term solution is to fall into the same well-meaning trap which led to the current situation.
The Bill is intentionally designed to put in place the structures and tools to enable that long-term solution. The framework it creates will work with our efforts to support communities but it is deliberately focused on the wider objectives set out in the Government’s levelling up White Paper. It is for this reason that Part 1 creates a statutory framework for the setting, reporting upon and review of levelling-up missions. As noble Lords will be aware, the missions set out in the levelling up White Paper set out the Government’s 12 priorities for levelling up between now and 2030. I do not intend to relist the missions but as your Lordships will know, they range from health and well-being through transport and digital connectivity to devolution across England.
This ambitious programme for our country provides a mechanism for this House and the other place to hold the Government’s efforts to account and to scrutinise any changes in the missions or how they are measured. It is right, I hope noble Lords will agree, that missions should be adaptable to the needs of the country, but that any adaption should take place openly.
Part 2 builds directly upon the local leadership levelling-up mission and provides the means to simplify, expand and deepen devolution across England, to which the White Paper committed. It creates a new institutional model more suitable for devolution to whole county areas outside city regions which have more than one council—the combined county authority. Alongside this, we are improving the existing combined authority and local authority models for devolution. This work is creating a consistent architecture across local government for devolution in England, where it is led by local areas.
My Lords, first, I thank the Minister for the meeting she kindly arranged last week to enable questions on the Bill in advance of it coming before this House.
When I was growing up in the Sixties, we would occasionally speculate with our pocket money on something called a Jamboree Bag, I am sure that noble Lords are far too young to remember this piece of sweet shop nostalgia, but I say “speculate” because these bags offered far more in hope than they did in expectation. They generally contained about six sweets. Two would be sweets you really liked, two would be sweets you absolutely did not like, and the other two would be too stale to eat. They would also have a novelty or toy, which was inevitably disappointing—unless you got the fortune-telling fish we all longed for.
As I started the marathon read of this Bill, I had that same feeling of expectation. I am passionate about local government and the power of localism— I have spent half my life engaging in it—because I genuinely believe that only local solutions will work to solve some of the endemic inequalities our communities face. At the last general election this Government were elected on a promise to address geographical inequalities and regenerate and level up the UK. This Bill has the very noble aim of delivering that, but I am afraid to say that it lacks the ambition needed to address this mammoth challenge.
It is not just that the missions are not detailed in the Bill; it is difficult even to trace the link between them in some of the provisions, so the Bill is in danger of falling far short of expectations. This is exacerbated by weak reporting mechanisms, allowing for a bizarre pick-and-mix system whereby Government departments can choose which missions they will follow. The Bill as proposed allows Ministers to mark their own homework, so it should be accompanied by some sort of independent oversight and a clear role for Parliament to judge whether each department is adhering to its statutory responsibilities. If Ministers are able to revise, amend and delete missions at will, they absolutely must work with local leaders and representatives from across the UK on that.
My Lords, I begin by reassuring the House that my noble friend Lady Harris of Richmond is not leaving the House. The V next to her name on the speakers’ list stands for virtual, not valedictory.
I thank all the creators of the excellent briefings we received, which are too numerous to list individually. From them it is clear that the Bill carries a huge weight of expectation. It seems as though a lot of these experts —pressure groups, charities and professional bodies—are not convinced that it will ever deliver what it says on the title page, while welcoming many individual aspects, as do we. We believe that this Bill will neither measurably level up nor ensure long-term regeneration, which is regrettable. We on these Benches think it is a missed opportunity to do both. The rhetoric will not match the reality. To echo the noble Baroness, Lady Taylor, it is like getting a soft Christmas present—you are hoping for a silk scarf but you get socks.
The Bill provides a framework for delivering the Government’s 12 missions for reducing inequality by 2030, but it is a shaky one at best. Someone has definitely failed to look at the instructions for assembly, as it really does not hold together. The Explanatory Notes give us four overarching objectives, but it is hard to see how they live up to the aspirations of the missions. The missions themselves are not part of the Bill—Part 1 sets out how they will be set, monitored and reported on annually but not how they will be effectively delivered and funded.
Let us be candid: aspirations of this breadth and magnitude have failed to a greater or lesser extent under successive Governments over many years. This is a herculean task which we all want to get behind. Our job is to ask the Government what will be different this time. I am certain that we all want to see the missions succeed, but is everything underneath them strong and clear enough to actually deliver? Is there really a cross-government focus on levelling up? After all, you do not fatten a pig by weighing it.
My Lords, we have had a survey of the vast canvas set out by this Bill, especially from the Minister. Like many of your Lordships, I have many interests in the themes that have already been raised, but your Lordships cannot bear it now. I will draw attention to just one aspect and look forward to other speeches which, with the expertise of so many Members of the House, will deal with other aspects of the Bill.
A mention has been made of pride of place. One of the things about levelling up is the extreme importance of allowing local voices a share in creating development plans that really enhance pride of place in every part of the country. I want to draw attention to the immense potential of heritage, not only as something to be preserved and even enhanced but as a lead for regeneration—heritage-led regeneration, of which there are so many examples.
I really ought to declare an interest—my many years spent as chairman of the cathedrals and churches building division of the Church of England. The Church of England is entirely responsible for 45% of all the grade 1 listed buildings in the country. There are of course many other faith communities that have a similar stake in the built environment.
Heritage-led regeneration is very visible in a place such as Bishop Auckland. That must be one of the places where levelling up is a passion. The work of the Auckland Castle Trust has brought in local partners, increased pride of place, galvanised the local community and contributed considerably to the revenues from tourism. It is a very good example of heritage-led generation, not just a static effort to preserve something precious from the past, in a part of the country where levelling up is a very important theme indeed.
That is the first point. The second is one that we have already heard from the noble Baroness speaking from the Opposition Front Bench, who drew attention to the experience in other parts of Europe. The German Government have spent trillions of euros on levelling up and I hope that we are paying special attention to what has and has not worked in their strategy and planning.
4:04 pm
The Lord Bishop of Leeds
My Lords, I am delighted to follow the noble and right reverend Lord, who has already stolen some of what I was going to say—great minds and all of that, maybe. When I first heard the phrase “levelling up”, I thought, “Here we go again—another slogan in search of substance”. Yet what we have heard today so far is that there is a great deal of potential substance to this Bill. I applaud the motivation and ambition behind it, and the attempt in the 12 missions to have a holistic approach rather than simply to pick off bits of our society. But I do think we need to take seriously, after the honest analysis that we had from the Minister, the argument that it gives the lie to the opening assertion of the White Paper that the UK is an unparalleled success story. If it was, we would not need the detail that we have before us. This sort of language of hubris can very easily militate against us taking seriously the scale of the task.
The parallel with Germany has already been mentioned. What is key to Germany—and I spent yesterday evening with 40 German soldiers and academics at a symposium in Leeds, in a curry house, but I will leave that bit out—is that what we learn from post-1989 Germany is not only that it has put in trillions of euros to level up between east and west but that the key to German success in many areas has been its federalism and its devolution of real power. Power is not centred in one geographical location. That means that investment and opportunity are able to take a long-term view, precisely because all of these things are rooted in local voices and real local power structures, not least in devolution to the Länder.
This approach to devolution has an impact on two of the missions that I want to focus on briefly. I realise the screen has gone blank, so I do not know how long I have got, but I will keep going. Oh, good—I have another five minutes. Marvellous.
I will be very brief. One of them is transport. One of the things that has constantly surprised me since I have been in this House is that investments in the north and south—in rail, for example—just do not bear comparison. If we look at the investment in Crossrail and then look at what was proposed several years ago for the entire north of England, it is ridiculous. There has to be serious investment, perhaps a rebalancing of investment, from the south-east and south to the entire north. HS2 might get you from London to Leeds 20 minutes quicker, but there is no point getting there if you cannot get anywhere else once you get off the train at Leeds. Having spent 90 minutes delayed on a train this morning, I feel that viscerally.
The east-west communications in this country are appalling, and they have economic, tourism, business and heritage weaknesses built into them. If you want to go east to west, you have to drive along the M62. What does that do to you when you live in the north-east? So that is transport—and do not get me on to the TransPennine Express, which is a great misnomer.
My Lords, it is a great pleasure to follow the right reverend Prelate, who has made some powerful points. Where to start? Well may one ask. There is certainly no shortage of challenges. The area is a real minefield. I suppose the right place to start is with the Bill, although it may not necessarily be the right place to finish.
I first thank my noble friend the Minister. Let us spare a thought for her; she has to grapple with a 400-page Bill, quite apart from all the additional documents and memoranda—and with Members of this House. She has set out the case very fairly and clearly and will approach the issues with characteristic hardworking determination.
The Bill is the right place to start and, as someone who believes very much in devolution, I think devolution is the right and wise approach. Indeed, the right reverend Prelate himself lives in, and is representative of, an area that now has devolution and which is all the better for that. People are better served by it, often with better solutions, arrived at nearer to people and often more effectively, be it Manchester, the West Midlands, Teesside, Tyneside or, indeed, West Yorkshire. It is the right process. I also very often support the combining of county authorities.
As I have said, the Bill is a starting place—this is a process—but clearly, it offers just a procedural framework. Given what we have seen during the pandemic and the cost-of-living crisis, the idea that we will solve some of these problems with a statue of JB Priestley and a sense of place is for the birds. We need a better-performing economy and better public services, and certainly, we need to concentrate on housing. I hope we will be able to approach the Bill in that spirit, in respect of both private and social housing. We need more of it, and urgently. That will happen only with those magic words: “a budget”.
My Lords, it is a great pleasure to follow the noble Lord, Lord Bourne. As we have heard, levelling up embraces so many economic and social challenges, but I believe that the most fundamental is ensuring that families have a home, and it is on this basic issue that I want to focus.
In December 2020, PricewaterhouseCoopers published a survey titled “Rethinking ‘levelling up’”. It found that:
“Housing was the stand out priority for our respondents ... 70% agree a focus on housing would be the most effective in levelling up the country and reducing inequality.”
Polling by YouGov last year found that a clear majority of Conservatives want their party to deliver more affordable housing, with two-thirds calling for new developments to include more affordable housing.
It is clear that housing must play a key role in the levelling-up agenda. Social housing in particular is central to addressing regional inequalities, particularly health outcomes. For families struggling with unaffordable private rents and unsuitable or overcrowded accommodation, social housing would transform living standards, and the nation’s health. Yet we currently face a grave affordable housing crisis: 4.2 million people are in need of social housing in England. Research from the National Housing Federation found that to meet demand, England currently needs 340,000 new homes a year for the next 10 years, including 145,000 affordable homes.
Social housing on this scale would help to bring down the housing benefit bill, support better health and well-being outcomes and reduce reliance on temporary accommodation. So why have successive Governments failed to realise this? Why have they allowed the supply of social rented housing to fall by 85% since 2010-11? The Bill could have really got to grips with this. Sadly, it is a missed opportunity to tackle our housing crisis and deliver the real levelling up which communities need and voters clearly want.
My Lords, I remind the House that I am a vice-president of the Local Government Association. I agree strongly with what the noble Baroness, Lady Warwick of Undercliffe, said in her comments on housing. As my noble friend Lady Thornhill said, levelling up is a herculean task that we should all get behind. I therefore welcome the Bill, in so far as it could start to spread power away from Whitehall if properly implemented and expanded, and could help to drive further regeneration and more skilled jobs. However, I fear that the Bill as it stands will not achieve the Government’s stated levelling-up objective to
“grow the economy in the places that need it most”.
It will need substantial amendment to do that. There is at least to be a statutory requirement to report on progress with the 12 levelling-up missions, and I welcome that. But I hope the Minister can confirm that it will include the scale of private sector investment into those areas.
The three things that most people want from a Government are a decent home, a secure job paying a fair income and a rewarding education, and yet the number of households renting in England and Wales has doubled over the last 20 years, as revealed in the 2021 census. Inflation today is reducing the value of pay. The cost of childcare is too high for many families. ONS data has shown recently that disadvantaged pupils in schools in the north do less well than their peers in the south. Transport poverty is growing in rural areas as public transport services are cut. Local authorities are being forced to bid for extra money for key public services because the money is no longer in their baseline. This is not levelling up.
The levelling-up Bill is effectively a planning Bill. On housing, the test for the Government is whether it leads to the building of more homes, particularly homes for social rent. The Bill may help, but we will need to examine the detail of the infrastructure levy to assess that further. As our briefing from Shelter has said,
My Lords, the challenge for any large organisation, whether in the public or private sectors or within government, is how to combine strategic direction with effective on-the-ground delivery. The Bill sets out many laudable aims, but does it add up to a strategy for regeneration and will it really deliver levelling up?
Among our greatest problems is housing; we have heard a lot about that already. Our social housing stock has shrunk by more than 2 million homes over the past 40 years. In the past decade, we have been building far fewer homes than we did in the 1950s, yet our population has grown by 9 million since 2000, and household growth is rising at an even faster rate; thus we are completely failing to match supply and demand and to meet every kind of housing need. How can we create, over the next decade or so, the many millions of homes we require, while at the same time delivering other public goods, protecting our countryside, constructing well-insulated homes and once again building houses of beauty? How can we combine national direction with local delivery? I hope the Minister can persuade us that the Bill will help us do all that.
I sit on the board of a company which is national in reach but is based in the heart of the north. Like any modern business, it draws on myriad different specialist skills, thus many staff travel long distances daily to work—some have homes hundreds of miles away from their place of work and find weekday lodging. Accordingly, any modern economy needs, nationally, an effective strategic road and rail system and, regionally, metropolitan transportation systems in areas of high population density. Around 6 million people live in the adjoining metropolitan areas of Merseyside, Manchester and West Yorkshire. How will the measures in the Bill enable a concentrated focus on creating an appropriate transport infrastructure to unlock the full potential of that vast population?
There is work to be done. Currently, we are missing a plan to link HS2 to Leeds or Liverpool—and to speed the right reverend Prelate the Bishop of Leeds home. The woefully misnamed TransPennine Express takes, plus or minus, one and a half hours to traverse the 72 miles between two great northern cities. Moreover, the M62 is routinely gridlocked, and many small roads between northern towns are overloaded. Just before Christmas, it took me a miserable three hours to travel the 16 miles by road from Leeds station to my destination near Halifax.
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Part 3 reforms the planning system to improve planning authorities’ ability to shape their areas in accordance with the needs and wishes of their communities. Principally, this is achieved by giving greater weight to the development plan when decisions on applications are made, so that there must be strong reasons to override the plan, and by making a number of changes to aid the adoption of local plans. These include the introduction, through secondary legislation, of new gateway checks to help spot and correct problems and reduce the risk that local plans will fail at examination. We are also removing the pressure many planning authorities feel to duplicate national policy in their local plans to ensure it has sufficient weight in their decision-making. This will enable plans to be produced more quickly by streamlining the contents of plans to policies which are bespoke to the area, rather than those which apply across the country.
As at present, we will also produce some high-level policies on matters to be considered when preparing local plans. These will be separate from the new national development management policies, which will sit alongside the polices in the development plan. Part 3 makes a number of other changes to the planning system. This is a substantial part of the Bill and there are a few significant changes among the numerous technical improvements included in this part.
Chapter 1 enables the digitisation of the planning system, in support of which we are already working with planning authorities across the country. Our aim is to enable greater involvement at all stages in the planning system, but particularly to increase engagement in the production of the local plan, where local voices can be so important. We are also strengthening the regard of heritage within planning law and creating a new system of “street votes”, allowing additional development on existing streets, where it meets prescribed requirements and is supported at a referendum. The issue of build-out of planning permissions also remains of concern to communities, and I know that many noble Lords have raised this issue before. Part 3 therefore introduces measures which will improve transparency around the speed of build-out and delivery expectations, backed up by new and strengthened powers for local planning authorities to act against unreasonably slow development.
Part 4 provides for the replacement, in most cases, of negotiable development contributions with a locally set, non-negotiable infrastructure levy. Planning authorities can at present often feel themselves at a disadvantage in these negotiations, particularly with the larger developers. Similarly, your Lordships will know that uncertainty over the obligations which will be requested can be a barrier for some of our smaller developers.
The levy addresses these concerns. The legislation will allow the levy to be set locally, meaning that local authorities can set different rates according to the nature of development. This will allow authorities to set rates reflecting their priorities, including securing at least as much affordable housing as that secured under the existing system, if not more. The new levy will be implemented through a test and learn approach, by introducing it in some local authorities first before rolling it out nationally to support local authorities through the transition period. We will publish a technical consultation on the new levy very shortly.
Part 5 grants time-limited powers for community land auction pilots. These will test an innovative mechanism for securing value and infrastructure for the local area from the allocation of land for development in a local plan. The Secretary of State is required to report to Parliament on the results of those pilots.
I turn to Part 6. Following our departure from the European Union, we want to learn from the experience of the past 40 years to tailor environmental assessment to better reflect the current pressures on the environment and meet the nation’s environmental needs. The Bill will secure powers to address issues with the current system that have seen environmental assessment become less proportionate, less effective and more cumbersome. Even if nothing else were to change, the Government would need to take powers to avoid these regimes becoming outdated. As a core principle, we would not wish to see environmental protections eroded over time, and the Government wish to go further to ensure that these assessments deliver for the environment.
These assessments could and should be more effective, both in identifying the impacts which could occur and as tools for promoting environmental improvement. We want these reports to be an active means for pursuing environmental improvement and protection. It is this objective, building on the work of the Environment Act 2021, which we are pursuing through this part.
Further to Part 6, Part 7 puts into law a requirement for water companies to address nutrient pollution arising from wastewater treatment works by 2030. This, together with a nutrient mitigation scheme led by Natural England, will reduce the barriers to significant numbers of new homes while creating new and improved wetlands and woodlands, enhancing access to nature, improving the environment and helping to build much-needed homes.
Part 8 reforms development corporations in England to create a new, locally led form of development corporation to support local leadership of regeneration efforts. We are also updating other forms of development corporations to ensure that these valuable tools for co-ordinating large-scale developments can all benefit from the powers suited to their circumstances.
Part 9 makes changes to the system for compulsory purchase, including enabling its digitisation similarly to Chapter 1 of Part 3. The purpose of these changes is to allow authorities to make better use of powers in their areas, where they find that there is a case for their use in shaping and regenerating those areas.
Part 10 provides local authorities with a tool in their efforts to regenerate and protect their high streets. By means of a high-street rental auction, planning authorities will be able, where a property has been vacant for at least a year—or at least 366 days within a two-year period—to make arrangements for that property to be let on appropriate terms. This is a discretionary power for local authorities, and we will provide guidance to support them as to how and when to use this new power. However, we expect it to form a backstop position to assist in preventing the decline of those high streets at the hearts of our communities.
Penultimately, Part 11 provides for powers to acquire more information about land ownership and arrangements. These powers respond to calls we have often heard regarding the barriers for local authorities and others arising from the lack of transparency about who ultimately owns land and who has options and other interests in it. As noble Lords will know, the possible arrangements are myriad. The powers we are taking have been deliberately constructed to try to preclude the possibility that a form of interest in land might escape the transparency that we seek to create.
Finally, Part 12 makes a number of changes which seek in large part to tidy up various regimes and systems that interact with the main elements of the Bill. We are taking powers to create a scheme for the registration of short-term lettings, the proliferation of which can cause problems in specific communities. The register will improve consistency in standards across all types of guest accommodation and deliver much-needed evidence and data on the number and locations of short- term lets in England.
We are also making permanent the provisions, introduced during the pandemic, streamlining the application for pavement licensing for outdoor dining in the Business and Planning Act 2020. To make these provisions work, they will be taken forward with minor modifications to their previous form based on feedback on the operation of the temporary measures during the pandemic.
In connection with our wider improvements to the heritage regime, we are placing into statute the requirement for authorities to maintain a historic environment record for all their areas. We are also allowing the Secretary of State to commission a review of the governance of the Royal Institution of Chartered Surveyors and providing powers for fees to be charged in connection with monitoring, variations and transfers of marine licences.
The breadth of the subject matter I have outlined seems eclectic, but these measures are all connected by our desire to empower areas through both devolution and improvements to existing systems to take advantage of the opportunities that they see. Through the reforms in the Bill, we seek to make it easier for areas to agree to devolution suited to them and shape their areas to take advantage of new opportunities while supporting their communities and safeguarding and improving the environment.
For the majority of the measures in the Bill, we are making changes only in relation to England. In some areas, the Bill extends beyond England, such as on environmental assessment, where it extends across the UK. I hope to have more to say on that subject later during the passage of the Bill once discussions with the relevant devolved Governments have concluded.
The House will also have noted the delegation of powers which the Bill provides to Ministers. We recognise the legitimate concerns that noble Lords have on this topic. We have sought to ensure that the powers we take are justified and appropriate to the policy in its context. I hope to be able to reassure your Lordships and make our case in relation to each measure as the Bill progresses. We will, of course, listen carefully to any suggestions that noble Lords may have.
The Bill enjoyed extended scrutiny in the other place and emerged all the stronger for that consideration. Your Lordships’ expertise on the complex matters with which the Bill is concerned can only further assist, and I look forward to working with them on achieving its objectives.
I very much look forward to the maiden speeches of the noble Lord, Lord Jackson of Peterborough, and the noble Baroness, Lady Anderson of Stoke-on-Trent. I join the House in giving them a very warm welcome to this place. I also look forward to the valedictory speech of the noble Baroness, Lady Harris of Richmond, who will contribute virtually. I hope that she can hear me when I say how much she will be missed in this House. I commend the Bill to the House and beg to move.
On the issue of local voices, I want to turn next to the local government and devolution provisions in the Bill. The House will know that the UK today is the most centralised state in Europe. Stevenage, which I proudly call home, has twin towns in both Germany and France, and things are very different there. Ingelheim, on the west bank of the Rhine, is home to a global drugs company and keeps every euro of business rate that it raises. Autun, meanwhile, in the Morvan Forest, an area as protected as our Lake District, was able to build an agricultural conference complex from concept to first event within 18 months. My point is not that these exact policies are necessarily the right ones for the UK, but that we should be far more ambitious and open to ideas when looking to address the imbalance of power in our country. So I welcome the Minister’s accepting that national challenges require place-based solutions, but I feel strongly that Part 2 would better deliver this if accompanied by greater powers and fairer funding, so that leaders can support local recoveries according to the needs of their own areas.
I do want to welcome the implicit recognition that devolution can drive economic, social and environmental development in local areas, but questions remain over whether the specific model of county combined authorities is the right one for every area. Local residents and leaders will always know their own area best and the powers they need to deliver their ambitions, so we will be seeking amendments to allow greater flexibility for our towns, cities and counties to determine their own future.
Despite its omission, I also want to address the barriers to levelling up presented by the Government’s approach to local government finance. As a local government leader for 17 years, I can say from first-hand experience that the drastic savings imposed on local authorities since 2010 mean that their achievements during this time are all the more impressive.
All major projects coming before any council are always subject to detailed analysis of how the outcomes will be measured and monitored, including the environmental, legal and equalities impacts, and especially the financial impact. At a time when even the Conservative Hertfordshire County Council is announcing that it has “exhausted all options” in meeting its budget deficit, I hope the Minister will reflect on how the Government can better enable local councils to level up their areas.
Turning next to the planning provisions, I am sure I am not the first to suggest that the Bill might better be described as a planning and regeneration Bill. Despite the Government recognising the need for planning reform, Part 3 misses many of the proposals in the White Paper and lacks the ambition needed to address the housing emergency. Local communities deserve a greater say in the housing needs of their area, but I am concerned by clauses which seek to override local voices, particularly those involved in the creation of the national development management policies, and that these may take precedence over local development plans and diminish the local voice in favour of the mysterious “office for place”. That is potentially a retrograde step, making planning something done to, not with, a community. We will examine the clauses on street votes too, including seeking clarification on voting systems, consultation and the registration of interests.
I also encourage the Minister to consider new provisions on how housing and planning can deliver on levelling-up missions. In particular, I hope the Minister will consider amendments from this House urgently to tackle the provision of social housing and ensure the right financial instruments exist to empower local authorities and social landlords to deliver. We will seek further amendments to ensure that local businesses benefit from housebuilding and construction in their area by addressing questions over local procurement. As I will discuss in further detail later, we should also consider opportunities to incorporate our net-zero ambitions into planning policy and benefit from the economic opportunities that this can bring.
Serious concerns were raised in the Commons about the infrastructure levy proposals in Part 4—that the levy as proposed will fail to secure as much, let alone more, public gain from developers as the present Section 106 and community infrastructure levy system. I am sure there will be significant scrutiny of this part, and we will seek particular clarification of how the Government’s plans will address developers’ claims that the levy makes schemes unviable. I hope the Minister can also give greater detail on how the levy can contribute to social housing and schemes of mixed tenure.
Parts 6 and 7 broadly relate to the environment. Whether intentional or not, it is regrettable that the Bill does not take further steps to use the planning system to tackle climate change and its impact on the most deprived communities. I will be particularly interested to hear the Minister’s thoughts on how green jobs, new biodiversity targets and environmental planning challenges each relate to the levelling-up agenda. Unfortunately, the Bill does none of this, and we will explore amendments on these points.
I will be taking a particular interest in development corporations and Part 8, given my experience of growing up in a new town under the governance of a development corporation. I welcome the Minister’s commitment to work with the House to ensure that we benefit from lessons learned and are able to strengthen the Bill in this respect.
Determining ownership of land and property can be fraught with difficulty. I am sure the House would agree that local authorities and developers should be able to make better use of brownfield sites for development. However, decontaminating brownfield land too often requires considerable expenditure. Those costs can mean that developing the land is unviable, which then disincentivises developers. Does the Minister believe that Part 9 could help to address this?
The Bill was an ideal opportunity to set out a framework for the regeneration of high streets. While I am pleased that the Government recognise the issue, I am unconvinced that the minimal provision in the Bill for rental auctions and the letting of vacant premises anywhere near tackles the major issues of town centre regeneration set out clearly in the two reviews undertaken by Bill Grimsey. These include looking at the disparity in costs between online and high street retail; creating more workspaces and homes in town centres to drive footfall; ensuring a sound leisure, culture, sport and tourism offer alongside retail to add to dwell time; and incentives for independent businesses. Without looking at these factors, we will never see our high streets thrive.
The Bill before us had enormous potential to genuinely address the structural inequalities of our country. I am greatly encouraged by the interest from this House in ensuring that it meets the challenges facing our towns, cities, counties and villages. We must not let that potential be squandered. Levelling up should be more than a slogan; it must be a cross-governmental strategy. That is why it is essential that the mission statements are embedded in what is proposed in the Bill. The provisions on devolution are a step in the right direction, yet, as the Bill currently stands, they are undermined by the retention and creation of other powers. The emphasis on the future of high streets is welcome, but must be paired with more ambitious action.
Unfortunately, as it stands, the Bill is a wasted opportunity. However, given the interest from all sides of the House in improving it, I have every confidence that, as amended, it will provide much more. I look forward to the debate, particularly the maiden speeches from my noble friend Lady Anderson of Stoke-on-Trent and the noble Lord, Lord Jackson of Peterborough.
The second objective covers
“the devolution of powers through the creation of a new model of combined county authorities”.
Our view is that devolution should be much more than this, and so the Bill is yet another missed opportunity. It is centralist, with the regions of England controlled out of Whitehall still. It could be argued that it is about delegation with a bit of decentralisation, but it is not what we would call devolution. There is no significant commitment to fiscal devolution, nor to devolving appropriately down to parishes and districts—those closest, after all, to the communities that the Government seek to empower and engage with.
The third objective covers the regeneration of town centres and is probably set to be the most disappointing of all. For levelling up to work in the longer term, it must be about transforming the economic fortunes of left-behind areas. The proposals in the Bill are largely cosmetic quick wins, probably designed to arrive in time for the next election—heaven forbid—and not bold policy solutions to drive regional economic success. As a party, we will continue to work for more transparency in politics. We were particularly concerned at the apparent lack of impartiality in the distribution of the towns fund.
Your Lordships must excuse me while I take a drink: my cancer treatment has side effects, including dry mouth—I am sure lots of noble Lords are familiar with that.
A more attractive high street is important to how residents feel about where they live—I have no doubt about that. But a nice-looking high street will not thrive unless residents have more money in their pockets to spend in it and a reason to go to it. New businesses will not invest in challenging high streets without incentives, including serious reform of business rates and a costed and coherent plan to address wider economic factors. Drab, rundown town centres are a symptom of economic decline. This Bill does not address the root causes of that decline. Giving residents more say in street names and protecting alfresco dining does not quite get the investors’ pulse racing. I admit that proposals for high street rental auctions and compulsory purchases sound interesting, but on closer examination, which we will all surely do, they could well have the opposite effect of decentralising investment —something to scrutinise at the Bill’s next stages.
The fourth objective is the most controversial and has aroused the most comment. The Bill has at its heart the much-heralded planning reforms. We have been inundated with briefings from different organisations about this section, and they have been very revealing and sometimes worryingly contradictory in their interpretation. We will seek clarification on those contradictions.
One major concern is who wins at Top Trumps— the local plan or the proposed national development management policies? Which will the Planning Inspectorate give most weight to? These are really important questions. How will these play out in council chambers and planning offices up and down the country? We will be seeking an unequivocal answer during the passage of the Bill.
The Bill is full of words which are subjective and open to interpretation, such as targets being “advisory”, but what does this actually mean? The word “guidance” pops up a lot. When does guidance mean that you can take it or leave it, it is up to you, and when is it a very strong diktat with punishment for non-compliance, such as the current housing delivery test? The word is very useful when MPs are playing the blame game: “It is not the Government’s fault but the council’s interpretation of the guidance”. We will be seeking clarity on these issues. More seriously, the Bill is peppered with wide-ranging Henry VIII powers, not least the proposals in Part 5 to give the Government extensive powers to change a range of environmental protections, with very limited scrutiny.
One word we would like to see banished from the Bill is “affordable”, in relation to housing. It is meaningless; affordable to whom? Our country needs social housing on a scale not seen for decades, and we will support all measures to ensure that this happens. We are deeply concerned that although one of the missions is restoring pride in place, and talks about community engagement and empowerment, the only solution that is offered to the problem of the second homes and short-term lets which blight parts of the country is a registration scheme. We believe that the Bill could do more to respond to the concerns of these communities.
A new draft of the National Planning Policy Framework is out to consultation at the moment, including the delivery test. The consultation closes in March. The final details of both will be extremely important in the application and interpretation of many of the measures in the Bill. The draft of the NPPF is a serious document which deserves serious scrutiny. It may well, I hope, answer many of our questions and concerns and allay fears, but it may also provoke many more.
We are dismayed by the lack of focus on the role of the planning system in tackling the climate crisis. People living in the most deprived areas are often the most vulnerable to threats from a changing climate, and their homes urgently need to be prioritised for retrofitting. We are not convinced of the Government’s commitment to this, as the rhetoric does not seem to match reality. There is much in this Bill—too much, one could argue—and I am sure that your Lordships are looking forward to getting stuck into the detail, because the devil will be in the detail.
Speaking from long acquaintance with the Berlin/Brandenburg area in former East Germany, one of the things that has worked really well, while certain other aspects of the plan have left a great deal of resentment behind them, is the cultural aspect of the plan, to regenerate areas and increase pride of place. So I hope that we will pay attention to the experience of some of our continental partners and that, as this Bill and programme develop, we will make sure that, in local development plans, local voices are really prominent in devising ways in which the heritage of the past can contribute to the regeneration of the future.
The second area I want to focus on is education. The disparities between north and south are shocking. Partly it is not simply because of poverty. Poverty is a phenomenon in itself, but it has to be related to housing, education and some of the other missions that are set out in the Bill. Some 1.2 million people are waiting for social housing. I think it was Shelter that pointed out that since 1993 we have lost 21,000 social houses every year—and we wonder why we have a problem. Some 120,000 children are living in temporary accommodation, yet we expect them to perform at school. We have schools as well as churches and other institutions having to feed children when they come to school because they are not able to be fed at home.
Look at the free school meals stats and discrepancies, and at the number of food banks. What will we offer through this Bill to articulate hope and create a vision for a generation of young people who have not really had it thus far? It needs more than technocratic solutions; it needs an articulation, a vision, that is more than economic. What about the social capital? Are food banks now priced in? We are now seeing in parts of the north, where I live, people who gave to food banks queuing up to receive from them. That social capital cannot be taken for granted—and I would extrapolate from that to the wider charitable sector.
I want to applaud a more holistic, long-term, hopeful proposal whereby the missions are not, in the end, in competition with each other. Reporting will be crucial.
Before I sit down, I want to signal that my right reverend friend the Bishop of Durham is in discussion with the DfE and, through it, the Department for Levelling Up, about tabling an amendment, which was lost with the withdrawal of the Schools Bill, on land clauses affecting church schools in relation to local authority provision of sites for academies. So, this has been a general run around the issues, with a specific one at the end.
This is not down to the Minister. The Minister will perform and do a good job on the Bill, but we need to look beyond the Bill to how we deliver our country out of the crises and challenges we face—housing, the economy, and the health service. This Bill is not an obvious candidate for addressing the health service but, when we talk about levelling up, people are looking to our health service, thinking about how it served us during the pandemic and wondering how we will get ourselves out of this god-awful mess. That has to be with a budget to enable the health service to face up to some of the challenges of the 21st century—treatments, vaccines and so on. Similarly, on skills, many of our youngsters are still grappling with problems from the pandemic; that area too needs resourcing.
I hope the Bill is able to do something about the challenge of climate change, as well as housing. It has always been a mystery to me—and not just me—why we do not do more on the insulation of old buildings. It would be a boost for a green economy, for energy security, for our housing stock and for jobs. In short, it would be popular with everyone. No wonder the Government do not want to touch it. It really is extraordinary, so I hope we will be able to do something about that too.
The Bill is welcome. The Minister is working hard and should be congratulated on her efforts, but it is about not just what happens here—although that it important—but what happens elsewhere. We have to keep that within our sights and make a real difference to the lives of people in our country today.
Happily, the noble Lord, Lord Bourne, mentioned health. There is a strong link between housing and health. In November 2021, a Building Research Establishment report, “The Cost of Poor Housing in England”, found that poor housing could be costing the NHS £1.5 billion a year in treatment bills. Legal and General’s research, “Levelling up through health”, found that investing in housing, particularly affordable housing, yields a multiplier effect which creates jobs, boosting the economy as well as public well-being.
In particular, supported housing helps ease the pressure on the NHS and care services and saves the public purse around £940 per resident per year. It makes a vital contribution to positive health outcomes for disabled people, homeless people, older people, people with mental health problems, people who have experienced domestic abuse and many others. Yet the sector is under acute pressure from inflation, rising costs and funding uncertainty, leaving vulnerable people without a safe place to live. Will the Minister give us the Government’s estimate of the impact on levelling up of the contraction in supported housing, and how they propose to reverse that decline?
I will briefly touch on regeneration, featured in the title of the Bill, and planning. Many communities are crying out for regeneration, but where are the measures that would unlock housing-led regeneration? With access to appropriate funding, councils and housing associations can deliver regeneration and employment support where it is most needed. Under current net additionality rules, housing associations cannot access grant funding for regeneration projects from Homes England, so they cannot regenerate homes that are often unfit for purpose. By changing that rule, the Government could unlock significant new funding for regeneration, delivering high-quality new affordable homes that support better environmental and health outcomes for residents. I hope the Minister will address this issue in her reply.
Lastly, on planning, there is a real risk that the Bill would further reduce the supply of affordable housing. Part 4 of the legislation creates provision for a new infrastructure levy to replace the current system for developer contributions via the planning system. That system is responsible for almost 50% of all new affordable housing. Without further protections included in the Bill, the new infrastructure levy risks diverting funds away from affordable housing towards other unspecified forms of infrastructure. In areas of low land value, it is difficult to see how levy rates will be able to deliver the same level of affordable housing as the present system. Ministers have said that the levy will deliver at least as much affordable housing as the current system, but can the Minister provide the evidence to support that claim? I urge the Minister to heed the calls from across this House, and from the housing sector, and include stronger protections for affordable housing in the Bill.
“the current planning system prioritises maximum delivery of unaffordable homes that can be sold to the highest bidder, instead of well-planned developments with homes that people can genuinely afford.”
As we have heard, there is currently a consultation on national planning policy. It ends in early March. Will the Government give us feedback before Report? We should have it.
Part 2 of the Bill is highly centralist. It does not offer devolution; it offers delegation and decentralisation, in which mayors and combined authorities compete against each other to win support from Ministers and the Treasury. Wales, Scotland and Northern Ireland all have devolved powers, but the Bill will not treat the constituent parts of England in the same way, and I do not understand why. England needs greater fiscal devolution. No Government can run England, with its population of 56 million people, out of Whitehall, and yet England will continue to be run out of Whitehall if the Bill is enacted in its current form.
We need to provide proper empowerment to the geographical areas of England, following the example of the Basque country in Spain, where public and private sectors have worked in partnership with trade unions and the voluntary sector to drive prosperity in their region. It could be done in the UK as we build capacity, but it will not happen with the degree of centralised control by Whitehall that the Bill proposes. Strangely, the Bill is far too centralist even at a local level, so we should look very carefully in Committee at the powers that will lie in the hands of mayors and at how mayors will be scrutinised on the decisions they take. There is an assembly in London but there is no such structure elsewhere in England—why is that?
I accept that the Government cannot do everything, but they can drive more and better jobs, build homes that people can afford to live in, do more in education and training, deliver better transport, and lead proper devolution throughout England with greater fiscal powers to generate growth beyond the limited financial powers planned by the Bill.
Finally, I turn to skills. Despite being on the verge of recession, we have vast skills shortages in every part of the economy—data scientists, financial analysts, digital marketeers, construction workers and every kind of engineer, to name but a very few. I am unpersuaded that the Government have yet analysed the UK’s precise skills needs, now and in the future, or yet identified the means of their delivery. How will the framework outlined in the Bill address this vital issue? My fear is that, absent a clear delineation of responsibility, power and accountability at every level, we will fail coherently and expeditiously to address these critical and urgent issues, and thus continue to fail to achieve the levels of equality and prosperity that, as a nation, we all fervently desire.