Town and Country Planning

Before I call the Minister to move motion 3 on town and country planning, I should inform the House that the Speaker has certified that, for the purposes of the Standing Order, it relates only to England and is within devolved legislative competence. I remind Members that the statutory instrument must therefore be approved by both a majority of all Members and of those Members representing constituencies in England.

I beg to move,

That the draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2019, which were laid before this House on 10 June, be approved.

The regulations were laid before the House on 10 June 2019. If approved and made, they will remove a sunset clause in the existing 2012 fees regulations, thereby ensuring that local planning authorities can continue to charge fees for planning applications. Planning fees are an important source of income, supporting local authorities to have the resources and capacity to make effective planning decisions. It is therefore vital that the fees regulations remain in force. The regulations introduce a fee of £96 for prior approval applications for a larger single-storey rear extension to a house. If approved by this House, this new charge will come into effect 28 days after the regulations are made.

Planning application fees are crucial for a well-resourced, effective and efficient planning system. They provide local planning authorities with much-needed income to consider planning applications, which in turn provide new homes and deliver economic growth for our country. In January 2018 we raised planning application fees by 20%—the first uplift since 2012. This has increased income for the planning system and has enabled local planning authorities to improve their performance. We estimate that in England the total income raised through planning applications fees is £450 million. If there was no application fee, this cost would have to be funded by the council taxpayer.

I turn to the details of the regulations. First, the regulations propose to remove the sunset clause of 21 November 2019 contained in the existing 2012 fees regulations, the Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) Regulations 2012. By removing the sunset clause, local authorities will be able to continue to charge planning application fees, in accordance with the 2012 fees regulations, beyond that date. If the sunset clause were not removed, the fees regulations would cease to have effect after 21 November. This would mean that local planning authorities would no longer be able to charge fees for planning applications.

The 2012 regulations provided that there should be a review of their operation within five years, to ensure that they continued to achieve their objectives. The accompanying sunset clause meant that no action would be required if it was decided that the regulations were no longer necessary. I am pleased to confirm that the review was undertaken in 2017 and the outcome report laid before Parliament in December 2017. The review concluded that the 2012 fees regulations had achieved their objective. It confirmed that they ensured an effective planning application fee regime, which benefited both applicants and local planning authorities in providing for the proper consideration of planning applications. It is therefore appropriate that I bring these regulations before the House, to ensure that the planning application fees regime continues. The regulations will also ensure that those wishing to take forward development pay a fair fee and that local planning authorities have the resource and capacity they need to make high-quality and timely decisions.

I thank the Minister for his outline of this statutory instrument. The important first part of the SI ensures that the fee regime set out in the 2012 regulations is able to continue. Secondly, and perhaps more controversially, the SI amends regulation 14 of the 2012 regulations to include a £96 fee for an application for prior approval to build a larger rear extension to a dwelling house without the need for a full planning application to be made.

The Opposition do not seek to prevent the 2012 regulations from continuing, but we point the Government to their own consultation on devolving fee setting to local authorities. It would be good to have an explanation as to why the Government have failed to act on the outcome of their planning consultation, particularly on full cost recovery. As the Minister will know, the consultation found that there were substantial cross-party concerns that local authority planning departments do not have sufficient resources to provide an effective and wide-ranging service. The majority of respondents from all sectors supported increasing planning fees beyond the 20% increase already given by Government, often citing concerns about the low level of resourcing in local authority planning departments.

There are issues with local fee setting, as it may help resource planning departments better in areas of high growth but does little for those where development is more difficult to achieve. Nevertheless, the issue of getting more money to planning needs to be resolved urgently. Labour’s planning commission has found that poor resourcing of planning departments is the most significant issue raised by communities, planners and developers alike. The Government need to set out clearly what they are going to do to ensure that all planning departments are properly funded.

Total expenditure on planning has fallen by almost 20% since 2010. That fall would be far higher were it not for the fact that spending has been propped up by a 50% rise in planning income. If we remove income from the equation, total net expenditure on planning has fallen by 42% on average, and by up to 60% in some regions, and that of course has led to a huge reduction in the number of public sector planners. In a recent report, the Royal Town Planning Institute showed that when a high number of applications are permitted, with fewer resources committed to each, the main loser may be local communities. Another crucial issue is that planning officers may, as a consequence, have less time truly to engage communities. The impact of austerity on planning is felt keenly by planning officers, who have to operate with fewer resources and to deal with the public dissatisfaction that can arise from that. It would be useful to hear how the Minister intends to address that issue.

I am grateful to the hon. Lady for her remarks. I accept the challenge that if we are to hit 300,000 homes a year by the mid-2020s we need to find a way to get more resources into local planning departments. It will be one of the constraints on volume, and we are looking at what we can do to enhance their ability to deal with planning applications swiftly and in volume. When we bring out the accelerated planning Green Paper later in the year, no doubt that will be included.

I also recognise the hon. Lady’s longstanding opposition to permitted development rights, although I fear she may be wrapping what is generally a domestic extension by a householder—normally in non-contentious situations —into her general opposition to PDR across the piece. The PD rights for domestic extensions have proved to be successful, and of course we made them permanent earlier this year. I note that when we did so—the hon. Lady and I were both present for that SI—she did not divide the Committee and oppose it.

I recognise the issues that the hon. Lady raises, but £96 will help to mitigate some of the impact of PDR on local authorities and we therefore think it judicious to introduce it in line with many other PDR charges that local authorities are interested in. I commend the regulations to the House.

That the draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2019, which were laid before this House on 10 June, be approved.