With your permission, Madam Deputy Speaker, I will make a statement on the Government’s ongoing efforts to overhaul the planning system.
As the House is fully aware, England remains in the grip of an acute and entrenched housing crisis. It is a crisis, first and foremost, that is blighting countless lives, not least those of the more than 170,000 homeless children living in temporary accommodation today, but it is also hampering economic growth and productivity by reducing labour mobility and undermining the capacity of our great towns and cities to realise their full economic potential. In grappling with this crisis, the Government have never been under any illusions, either about the monumental scale of the task before us or about the challenges that must be overcome and the pitfalls that must be avoided if we are to succeed. However, we remain absolutely determined to tackle this task head-on and make tangible progress towards a future in which all our people have a decent, safe, secure and affordable home in which to live.
We have committed ourselves as a Government unashamedly to an incredibly stretching house building target of 1.5 million new homes in this Parliament. In the face of a housing crisis of such severity, anything less would have been a dereliction of duty. Progress towards that ambitious target of 1.5 million new homes was always going to be slow in the early years of this Parliament; after all, the Government inherited a housing market downturn, one that was exacerbated by the conscious and deliberate decisions of Ministers in the previous Conservative Government to make a series of anti-supply changes to national planning policy, including the abolition of mandatory housing targets. Such is the protracted nature of the development cycle that the corrosive impact of those changes is still in evidence today.
However, on taking office, this Government acted quickly and boldly to put in place the foundations of a revamped planning system that will facilitate the delivery of high and sustainable rates of house building in the years ahead. In December last year, we revised the national planning policy framework, reversing the previous Government’s anti-supply changes, implementing a new standard method aligned to our more ambitious national housing target, and releasing more land into the system through a modernised, strategic approach to green-belt land designation and release. In March, we introduced our landmark Planning and Infrastructure Bill to further streamline and speed up the delivery of new homes and critical infrastructure, and I am delighted that that Bill will receive Royal Assent before the House rises on Thursday.
Over recent months, we have carefully considered the extensive feedback we have received on a range of policy propositions, from a brownfield passport to reforming site size thresholds. As a result, I am today setting out details of the next phase of this Government’s planning reforms. That next phase consists of action on two main fronts. First and most significantly, we are today publishing for consultation a fuller and more definitive overhaul of the national planning policy framework. This wholly restructured framework maintains and builds on the initial revisions we made in December last year. It includes a range of new measures to support key economic sectors and incorporates new clear and rules-based national policies for the making of both plans and decisions.
As a result of the not insignificant risk and uncertainty that such an approach entailed, we took the decision not to proceed with statutory national development management policies at this stage. Instead, we have chosen to realise their benefits swiftly through agile national policy changes, while leaving open the possibility of a future transition to statutory NDMPs should it be required. The new decision-making policies in the framework published today are therefore designed to make development management more certain, consistent and streamlined; to standardise policies that apply across the whole of England; and to reduce duplication and avoid unjustified local deviation from national policy in local plans.
As well as setting out national planning policy in a clearer and more comprehensive manner, we are proposing a number of substantive reforms to boost housing supply and unlock economic growth in the years ahead. These include a permanent presumption in favour of sustainable development, building on the proposals outlined in our brownfield passport working paper to make development of suitable land in urban areas acceptable by default; a default yes for suitable proposals for development of land around rail stations within existing settlements and around well-connected stations outside settlements, including on green-belt land, to ensure that sufficiently dense development comes forward around existing transport infrastructure; and a targeted series of changes to drive urban and suburban densification, including through the redevelopment of corner and other low-density plots, upward extensions, infill development and residential curtilages. We will also take action to secure a diverse mix of homes. There will be stronger support for rural social and affordable housing; clearer expectations will be set for accessible housing to meet the needs of older and disabled people; and more flexibility will be provided on the unit mix of housing for market sale where local requirements for social and affordable homes have been met.
In addition to these and other important policy changes on matters such as design, vision-led transport and climate change mitigation and adaptation, the revised framework delivers on various commitments made either at this Dispatch Box or in the other place. As a result, it now includes a clear requirement to incorporate swift bricks into new developments; the application of new national standards for sustainable drainage systems; explicit protection for our precious chalk streams; and, as a result of sustained advocacy by my hon. Friend the Member for Bournemouth East (Tom Hayes), recognition of the importance of providing new, improved, accessible and inclusive facilities for children’s play.
Taken together, these changes represent the most significant reform to national planning policy since the original NPPF was introduced more than a decade ago. The proposed framework is the culmination of a sustained effort over the first 17 months of this Parliament to revamp our planning system so that it meets housing need in full and unleashes sustained economic growth. We look forward to receiving feedback through the consultation.
Further revisions to the NPPF are not all we are announcing today. The second main front on which we are acting is support for small and medium-sized house builders. As a Government, we are clear that ramping up housing delivery requires us to diversify the house building market. Integral to such diversification is not merely arresting, but reversing, the decline of small and medium-sized enterprise developers that has taken place over recent decades. Building on the steps we have already taken to better support SME house builders to access finance and land, we are today announcing a series of policy and regulatory easements to help them thrive and grow.
In May, the Government published a working paper seeking views on a new medium threshold for development of sites up to 1 hectare with between 10 and 49 homes, noting that over 80% of such sites are developed by SME builders. Having reflected on the useful feedback we received, we have decided to go further. While the 10 to 49 unit threshold will apply, we propose to increase the size of sites covered by the new medium category to up to 2.5 hectares, thereby increasing the number of SME house builders being supported.
To support development activity on this new category of site, we are proposing limiting information requirements to what is necessary and proportionate. We are also setting a clear expectation that local planning authorities allocate 10% of their housing requirement to sites between 1 hectare and 2.5 hectares, in addition to the existing requirement to do so for sites under 1 hectare, to better support different scales of development. Without compromising building and residents’ safety rules, we are using the consultation to ask the technical questions necessary to determine whether to exempt this new medium category of development from the building safety levy, and we are exploring further the potential benefits and drawbacks of enabling developers of medium sites to discharge social and affordable housing requirements through cash contributions in lieu of direct delivery.
Finally, having considered carefully the responses to the consultation undertaken by the Department for Environment, Food and Rural Affairs earlier this year, I can confirm that the Government will exempt smaller developments of up to 0.2 hectares from biodiversity net gain and introduce a suite of other, simplified requirements to improve the implementation of BNG on small and medium sites that are not exempted. DEFRA will also rapidly consult on an additional targeted exemption for brownfield residential development, testing the definition of land to which it should apply and a range of site sizes up to 2.5 hectares.
This Government promised to get Britain building again, unleash economic growth and deliver on the promise of national renewal. While there is more that needs to be done to transform the failing housing system we inherited, the further changes to regulation and policy we have announced today are integral to our plans to improve housing availability, affordability and quality in this Parliament. They will not be without their critics, both in this House and in the country, but in the face of a housing crisis that has become a genuine emergency in many parts of England, we will act where previous Governments have failed to ensure that a decent, safe, secure and affordable home is the right of all working people, rather than a privilege enjoyed only by some.
I commend this statement to the House.