That this House regrets that the Town and Country Planning (General Permitted Development) (England) (Amendment) (No. 2) Order 2020 (SI 2020/755), the Town and Country Planning (General Permitted Development) (England) (Amendment) (No. 3) Order 2020 (SI 2020/756), the Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 (SI 2020/757), the Town and Country Planning (Use Classes) (Amendment) (England) (No. 2) Regulations 2020 (SI 2020/859), and the Town and Country Planning (Use Classes) (Amendment) (England) (No. 3) Regulations 2020 (SI 2020/895) laid before the House on 21 July were made as delegated legislation because it would have been more appropriate to have brought forward such substantial and wide-ranging changes to the planning system in primary legislation.
Relevant document: 25th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)
My Lords, I have two interconnected reasons for tabling this debate today: first, to examine the significance of the measures in these regulations, and, secondly, to scrutinise the parliamentary procedures used to introduce them. I look forward to the debate and particularly to the two maiden speeches that we will hear today.
The pieces of legislation that we are debating today were introduced using the weakest form of parliamentary scrutiny available—the negative procedure—and yet these measures, now laws, have a significant impact on planning policy in England. If they are indeed significant, and I maintain that they are, they have avoided the proper scrutiny that Parliament is supposed to provide to ensure they provide the best outcomes possible. The role of Parliament is to assess, amend and correct the laws of our land, and to ensure that the impact of any changes is fully understood. The negative procedure that brought these measures into law means that unless a Member prays against them within 40 days of their being laid, they will automatically enter into law. However, it is primarily a procedure meant for routine and non-controversial matters—the least form of scrutiny for the least controversial matters.
The policy issues in these orders have the effect of reducing the level of scrutiny that local people and their local councils have on a range of planning applications. This in turn raises concerns about the ability of local authorities to deal adequately with the needs of their local communities. The policy changes include making it easier to demolish vacant buildings to create new homes, with reduced scrutiny of the quality of new housing, and changing the use of certain properties—for example, changing the use of a building from an office to a restaurant, including a fast food restaurant—without the need for full planning permission.
These new laws also permit the building of additional storeys on houses and flats, with very limited ability for the local council to intervene. Of particular concern is that these additional storey regulations came in two batches, the second of which is before us today. Amazingly, the regulations on the charges to be applied for making these additional storey planning applications came to the House by the affirmative procedure, thereby guaranteeing a debate in the House, whereas the policy changes themselves on additional storeys on properties were brought in by the negative procedure. Therefore, the only way of getting a debate on these and the other planning changes, and the only way of having it discussed by the House, was to put down a take-note or regret Motion, of the kind we are using today.
My Lords, it is a great pleasure and privilege to speak in your Lordships’ House for the first time and to follow the very passionate speech by the noble Lord, Lord German. I am immensely grateful for the warm welcome I have received from all sides of this House. The support from Black Rod, the Clerk of the Parliaments, attendants and other staff has also been greatly appreciated. I am especially grateful to my noble friends Lord Hendy and Lord Haskel for introducing me to this great House, and to my noble friends Lady Crawley and Lord Kennedy of Southwark for mentoring me.
A special year in my life was 1966. It was then that I arrived in England with my family to join my father, who had already come here a few years earlier. Regrettably, my full-time education ended in 1968, when I left school with no qualifications of any kind. After that, I worked full-time and studied part-time to acquire GCE O-levels and A-levels, professional accounting qualifications, an MSc in accounting and finance, a PhD in accounting and a BA in social sciences. Along the way, I worked as an accountant for some of the largest corporations in this country. I subsequently held professorships in accounting, or accounting and finance, at the University of East London, the University of Essex and the University of Sheffield. I published research in scholarly journals on matters such as accounting, auditing, corporate governance, insolvency, globalisation, tax avoidance, bribery and corruption, and my research received recognition from the British Academy and the US Academy.
Over the years, I have given evidence to many parliamentary committees in the UK and the European Union, and advised them as well. Most recently, I advised the House of Commons Work and Pensions Committee on its investigations into the collapse of BHS and Carillion. My research has often focused on what I call the dark side of capitalism. For example, the UK has the highest number of qualified accountants per capita in the world, but this huge social investment has not really given us good corporate governance, reliable financial reports or even honest audits.
My Lords, I am honoured to follow the excellent maiden speech of the noble Lord, Lord Sikka. He has had an acknowledged academic career, during which he has relentlessly shone a clear spotlight on the self-interested behaviour of various corporations that are acting against the public interest. He has shown how they have often been unchecked by the accountants and the banks—truly, as he said, the dark side of capitalism. His lifetime of working for justice in the taxation and accountancy fields will be of great value to your Lordships’ House, and I look forward to working with him.
I also welcome the opportunity that the noble Lord, Lord German, has grasped in bringing forward his concerns. These statutory instruments reveal how the Government have become excessively fixated on housing delivery in their approach to the planning system, almost to the exclusion of all other issues. According to a government response to a Parliamentary Question, these instruments are aimed at reducing planning bureaucracy and speeding up housing development. Now everyone in this House recognises the need to build more houses of good quality in the right place, and which are, above all, affordable; but we also know that laying the blame for lack of housing delivery at the feet of the planning system is a wrong premise. There are already over 1 million houses that have been granted planning approval which have not yet been built and will not be built for many years, as developers build out sites sparingly to avoid reducing housing prices locally—the exact opposite of what the Government are trying to achieve.
These statutory instruments are also harbingers of the sort of stripping down of the planning system that the Government’s overall planning reforms, which are currently out for consultation, will bring. Those proposals will considerably reduce the say of local people over what gets built and where in their local area. The planning system used to be one of the few forms of genuine democracy in this country, balancing competing local development needs and making decisions locally. But local authority planning departments have been hollowed out, denuded of specialists and hounded by an unholy alliance of government and housebuilders to give in to any housing development that will help them meet the government-imposed housebuilding targets.
My Lords, it is a tremendous honour to be able to contribute to this important debate, and to follow the noble Baroness, Lady Young. I add my congratulations to the noble Lord, Lord Sikka, on his excellent maiden speech.
I will start by thanking all those—both Members and staff of this House—who have been so kind with their time and generous in welcoming me to this place. In particular, I thank my two introducers, my noble friend Lord Arbuthnot, who 15 years ago took me under his wing when he was chair of the Defence Select Committee and I a new Member, and my noble friend Lord Randall. I must say that ours was a slightly less cordial first meeting when I was a very junior Member of Parliament and he a very senior Whip. After what, frankly, could only be described as a good dinner with fellow new MPs, I found myself coerced into being a rebel Teller on the Crossrail Bill, which was something of a surprise to the Whips. We all know that Whips do not like surprises but, to my noble friend’s credit, his only concern was not that I was rebelling but that I knew what I was doing and did not make a fool of myself in the Chamber of the House of Commons—and we have been firm friends ever since. It was fun, but government Whips can rest easy; I might wait a couple of weeks before trying the same thing here.
I confess that I was rather hoping to be able to give my maiden speech on 5 November. Fifteen years ago—exactly 400 years after the Gunpowder Plot—I became the first fireworks manufacturer to be elected to Parliament. My family firm, sadly now sold, was founded by my father, the Reverend Lancaster—to some an eccentric cleric, to me my dad, and to the industry affectionately known as the “Master Blaster Pastor”. Noble Lords will have seen his fireworks at the Hong Kong handover, the London Olympics and, for many years, on New Year’s Eve here on the river. Alas, my date of 5 November was not to be. It appears that my arrival in this place has caused such concern that we may not be sitting next Friday, for fear that I will attempt to repeat the events of 1605.
My Lords, I congratulate the noble Lord, Lord Sikka, on his excellent maiden speech. I am sure we look forward to many such contributions in future.
I also congratulate my noble friend Lord Lancaster of Kimbolton on his fine maiden speech. We entered the House of Commons together 15 years ago. He served for far longer than I did as a Minister and, as he reminded us, was and is a serving officer in the Army. His bomb disposal experience is a talent that may well be deployed in the Whips’ Office; I am sure they will be in touch with him shortly. At the tender age of 50, he is one of the younger Members of your Lordships’ House. His achievements are indeed so great that I am reminded of Gore Vidal’s much-quoted statement that
“Whenever a friend succeeds”
in politics,
“a little something in me dies.”
I must say to my noble friend that that was not the case in relation to his excellent speech.
On the legislation, I want to make two simple points. First, irrespective of the process issues raised by the noble Lord, Lord German, I believe it is a good thing in principle that government policy is focused on encouraging and facilitating development on brownfield sites, so that it is as easy and rapid as possible; otherwise, we face very difficult choices regarding the development of greenfield sites. One can imagine that the Covid epidemic will result in considerable changes in the use of buildings. That particular permitted development has led to the creation of tens of thousands of homes.
Process apart, the use of these orders has given rise to two concerns, the first of which is design quality. I urge the Minister and the Government to have regard to good design in how these permitted development orders are applied, because it is the absence of good design that has driven down public support for development generally.
I am delighted to be sharing the Chamber today with our two new Members, who are clearly going to bring to it the considerable expertise for which we are known and renowned—but, I expect, from very different perspectives.
My noble friend Lord German was right to table his Motion as it seems there is much disquiet about these and previous SIs, as well as the proposals in the Government’s current White Paper. Our concern is that taken together these constitute, in the words of a government Minister, the most significant changes to the planning system in 20 years and, in the words of another, a complete overhaul of the planning system. Thus, we feel there has not been sufficient consultation, or opportunities to really know and understand the cumulative impact of the Government’s legislative changes.
I too question the premise on which the current policy direction appears to be based: that the underdelivery of homes is largely the fault of the planning system. It has been mentioned many times in this Chamber that 90% of permissions are actually granted and that close to a million permissions have still not been built out. I wonder if there is something in the Government’s new proposal to take care of that, but I do not believe there is. The Letwin report also made it clear that the financial model on which the construction industry is based is far more significant in affecting the actual delivery of homes. I hope that we can have another debate on this issue, as in my experience it is a very complex one and government agencies also play their part in planning delays.
Permitted development rights were rightly introduced to reduce bureaucracy in specific and clearly understood circumstances, but these SIs drive a coach and horses through the normal system of judging and determining a proposed development. Together, the changes represent a significant shift in control away from local authorities and the communities they represent towards a significantly less regulated environment. I believe that nationally prescribed development rights disempower communities and local councils. Is it too cynical of me to suggest that that is the intention?
2:33 pm
20 of 41 shown
I recognise that the ability of the Government to use these parliamentary procedures stems from the primary legislation on planning currently in place. However, it is also clear to me that that primary legislation did not envisage such large-scale changes to be dealt with in this way. Moreover, the Government are proposing new primary legislation in this area and have issued their White Paper, Planning for the Future. Given the Government’s intentions in the White Paper, it would have been the appropriate mechanism for introducing the widespread changes provided by these regulations. The Government state that the reason for their new planning Bill is:
“Thanks to our planning system, we have nowhere near enough homes in the right places.”
If that is the Government’s objective in these regulations then why not debate them properly in the course of this upcoming new primary legislation?
I draw the attention of the House to two facts worthy of consideration. First, planning permissions are already given for enough homes to meet the Government’s target of 300,000 a year. Secondly, there are about 1 million unbuilt homes for which planning permission has already been granted.
The Secondary Legislation Scrutiny Committee, of which I am a member, expressed big concerns about the restriction that these regulations place on the expression of local concerns that could be considered by councils. Additionally, the committee felt that the ability of local councils to shape the character of their high streets would be curtailed, in particular their ability to control the number of fast food restaurants in their areas.
The committee’s report to your Lordships’ House says that these new orders and regulations
“make substantial and wide-ranging changes to planning legislation”
and warrant much deeper scrutiny and analysis. If these changes had been made under primary legislation, such detailed scrutiny would have occurred. Better law depends on the detailed scrutiny and broader consultation which Parliament provides. Planning decisions are a delicate balance between different pressures on the use of our land. These measures move the needle away from local decision-makers and could damage the framework of our local communities. I agree with the comments of the noble Lord, Lord Lisvane, on the committee’s report:
“The more that secondary legislation is used for significant matters of policy, the more the balance of power is tipped towards the executive and away from parliament. For parliament to serve our citizens properly, it needs to have effective means of debating, scrutinising and deciding upon proposals such as these.”
The Motion today provides an opportunity to debate these matters. It would have been far better for this House, and us all, if the Government had engaged properly with Parliament to enable us to carry out our role effectively. I look forward to the upcoming maiden speeches by two new Members of the House, and to the Government explaining why they have taken this route and acknowledging the significance of these changes.
The problems are systemic, going far beyond the affairs of just BHS and Carillion. This country has had a banking crisis in every decade since the 1970s. The finance industry has been a serial mis-seller of products and has admitted to rigging exchange rates and interest rates. These events draw attention to very deep-seated cultural and regulatory fault lines, which really need to be looked at.
The UK is also the home of a rampant tax avoidance industry, which enables companies to avoid taxes by shifting profits to low or no-tax jurisdictions through intragroup transactions. My response to that was to join up with some colleagues; in 2003, I became a co-founder of the Tax Justice Network, with the sole aim of sensitising people to how taxes are avoided and what the social consequences are.
I am a person from a working-class background, somewhat overawed at being here, and I wondered what on earth my objectives should be. I think there are really only two: to increase people’s prosperity and people’s happiness—there can be no other objective. However, in a country where 14 million people live below the poverty line, it seems that both happiness and prosperity are in short supply.
Some 250 years ago, Adam Smith said:
“No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.”
Smith suggested—and it is highly relevant today—that policymakers need to focus not only on what can be done but, above all, on what should be done. And, of course, there are numerous obstacles in trying to do what should be done. Here, I take some comfort in the immortal lines from Winifred Holtby’s great novel South Riding:
“We’ve got to have courage, to take our future into our hands. If the law is oppressive, we must change the law. If tradition is obstructive, we must break tradition. If the system is unjust, we must reform the system.”
These sentiments were also expressed by the noble Lord, Lord German, in his speech, with a recognition that decent, well-planned and affordable housing is key to people’s prosperity and happiness.
These targets are now highly questionable. Covid has radically changed the view of many people as to where they will want to live and work remotely. The targets are based on estimates of population growth, which included 5 million net additional migrants to this country—and that is now highly unlikely to happen on this scale. Surely the Government need to reassess the housing targets urgently, if only to address the two issues of Covid and immigration.
We already build the smallest houses in Europe. The Government’s own review has revealed that housing built under permitted-development rights is of a worse than average quality. Can the Minister tell us what he plans to do about this, and what safeguards will be put in place to prevent this widened permitted-development regime building even more substandard housing? Can he also tell us how these statutory instruments accord with the Government’s stated desire in the planning system consultation for beauty, high quality and sustainability, when permitted developments are exempt from the local services infrastructure payments that are so often vital for enabling place-making and the development of sustainable, fair local communities?
However, I offer noble Lords some reassurance that I come to this place with some useful skills. I am a qualified bomb disposal officer. I started my career in Hong Kong with the Queen’s Gurkha Engineers. I continue to serve after 32 years in the Army Reserve and I am very proud to be chairing the Reserve Forces 2030 review. I continue my links with the Brigade of Gurkhas as the deputy colonel commandant. It was perhaps my operational service in Bosnia, Kosovo and Afghanistan that led me into politics. War is a terrible thing and it has left a lasting impression on me. I found myself agreeing with Winston Churchill that
“Meeting jaw to jaw is better than war.”
That inspired me to stand for Parliament.
There seems to be a tradition, in the Commons at least, of Ministers being appointed to a department for which they have little or no relevant experience. Perhaps I and my noble friend the Minister are exceptions to this rule; I was deeply honoured to be a Minister at the Ministry of Defence for five years, ending my time there as Minister for the Armed Forces. I challenge anyone not to be uplifted by spending time with our service men and women. I take this opportunity to pay tribute to all those who have made such a contribution to our nation.
My wife, Caroline Dinenage, is Minister for Digital and Culture and a veteran now of some six departments. She always says to me that I am so lucky only to have served in one, and I always tell her that she is and always will be a far better Minister than I ever was.
I am equally proud to have represented Milton Keynes for nearly 15 years, a wonderful city of wonderful people, all with a positive can-do attitude. In Milton Keynes it is rare, if ever, for a political party to have a majority, and this means a level of party-political co-operation rarely seen elsewhere. That is just the sort of approach and attitude that I intend to bring during my time in this place. Situated at the centre of the Oxford-Cambridge arc, Milton Keynes is an area of high growth that is in desperate need of new housing if it is to continue to attract skilled workers and to be the economic powerhouse it is.
The measures before us today are a positive move by the Government, giving home owners the freedom to extend their own homes as their families grow and for us to regenerate the brownfield areas of our towns and cities. There is just one area where I seek reassurance from the Minister: that the conversion of family homes into houses in multiple occupation will still require planning permission. As my noble friend knows, an excess of HMOs in any community brings with it a whole host of challenges worthy of an entirely separate debate in this Chamber.
Secondly, and in conclusion, so far as process is concerned, the noble Lord, Lord German, is right about the importance of parliamentary discussion and scrutiny of major changes to development. That is particularly true of a related matter: the new formula to be applied to development on greenfield sites, which has been described by my successor as Member of Parliament for Arundel and South Downs, Andrew Griffith, as a “mutant algorithm”. I do not believe that the current formula can stand. It is so much better if we can ensure that development starts on brownfield sites. That is why the formula in its current iteration is wrongly calibrated, and why, in principle, the permitted development orders that encourage development on brownfield sites are right.
It is also clear that the Government’s current White Paper foreshadows the possibility of further changes to the entire planning system over the coming months, and it may well be that further permitted development reforms follow. This is perhaps why there is considerable disquiet and concern in many quarters. Alan Jones, president of the Royal Institute of British Architects, said of the Government that the arrogance and lack of understanding was “breathtaking.”
It is not just RIBA that thinks the extensions to permitted development are a bad idea. They are opposed by the Royal Town Planning Institute, the Royal Institute of Chartered Surveyors, the Chartered Institute of Building, the Chartered Institute of Housing, the Town and Country Planning Association, and more. Uniting all of these organisations, which are far from always being in happy harmony, is a remarkable achievement and a sign of the real problems of this approach that need to be looked into. Apart from those who seek to make serious money from these changes, it is hard to see who supports them.
The reputable planning consultancy, Lichfields, has stated that the changes are very significant, but are only the tip of the iceberg for potential planning changes on the immediate horizon. Hence the collective concern that the Government have failed to allow adequate time and scrutiny for these SIs and we have had no concrete reassurances as to how they will be evaluated in their totality. That is a concern which appears to be justified when you consider that the Government’s independently commissioned work on permitted development rights was damning. The report of the Building Better, Building Beautiful Commission notes that permitted development rights for office-to-residential change of use has led to much criticism for diminishing quality, delivering lower levels of affordable housing and reducing developer contributions. Those are three key issues. The Commission concludes that PDRs
“have inadvertently permissioned future slums … allowing sub-standard homes to be built with little to no natural light and smaller than budget hotel rooms.”
Can the Minister offer any serious reassurance that these concerns have been addressed?
The Housing, Communities and Local Government Select Committee produced a report in 2019 on the future of the high street which said:
“The Government should suspend any further extension of PDRs, pending an evaluation of their impact on the high street.”
Yet in these SIs we see significant changes to class uses that we have heard little about but which I have no doubt will have some concerned.
Do the Government intend to do a cumulative impact assessment of these and other recent SIs in tandem with the current proposals in the pipeline? If not, why not, and if yes, whoopie, but when?