Cross-Boundary Housing Developments

Motion made, and Question proposed, That this House do now adjourn.—(Jeff Smith.)

15:37:00

I draw the House’s attention to my entry in the Register of Members’ Financial Interests, as I am a serving councillor in Leicestershire. I am grateful for this opportunity to raise the challenges posed by cross-boundary planning applications, and I thank Barrie Gannon, a Markfield parish councillor who has campaigned for changes in this area. My constituency is unique in many ways, but most pertinently to this debate, it is unique because it straddles three council boundaries: Blaby district council, Charnwood borough council, and Hinckley and Bosworth borough council. Generally, these councils work constructively alongside each other and with Leicestershire county council. However, one area of tension surrounds development, collaboration on local plans, and housing allocations within each council area. It is clear to me, and to many of my constituents, that some of the councils are purposefully granting applications on the edge of their boundaries, which has a disproportionate impact on the neighbouring council. In essence, they are taking all of the benefits but none of the negatives. I have secured the debate not because I am a nimby, but because I want to see a more collaborative approach from local planning authorities. As a Conservative MP, I fully support the notion of a property-owning democracy, particularly for those from the next generation, who find it increasingly difficult to get on the property ladder. However, the free-for-all approach offered by the current system is harming many of the beautiful villages in my Mid Leicestershire constituency. How can it be fair that borough, district and parish councils are able to democratically pass local plans, but adjacent boroughs can undermine them by allowing development on the edge of their boundaries? I have seen many such examples in Mid Leicestershire. In Markfield, the challenges posed by cross-boundary planning applications have been raised with me many times by Councillors Claire Harris and Deborah Taylor, and local activist Dave Hyde, who lobby me regularly on the frustrations of cross-boundary anomalies.

I commend the hon. Gentleman for securing the debate. One of the issues that clearly arises from what he refers to is the impact of development on GPs, education, roads and leisure infra- structure in adjoining constituencies or council areas. Houses may be built in one area but people in other areas will be affected. Does he agree with many hon. Members that there needs to be a co-ordinated plan, perhaps at a higher level, that brings future proposals together, so that when houses are built in one area, associated infrastructure is spread across all affected areas?

The hon. Gentleman is absolutely right. I will go on to address some of those points, particularly in relation to the use of infrastructure. Markfield village sits in the local planning area of Hinckley and Bosworth borough council, but under the current framework, Markfield parish council and Hinckley and Bosworth borough council have very little say or influence over such decisions, as they are made in the adjacent Charnwood borough. It is obvious that the new Markfield residents will use services in Hinckley and Bosworth, Markfield and the surrounding areas, but those areas will see very little benefit, because those benefits will go to other villages. Worst of all, such developments are going ahead without constructive or binding input from the local parish council or the adjacent borough council. Another example is in Glenfield village, in my constituency, which sits in Blaby district council, adjacent to Leicester city council. Steve Walters, who heads a local action group, has raised the issue that the city council plans to build several hundred homes on the edge of Glenfield village, but because the village does not sit within the city council boundary, it will see all the detriment of that development but have very little input in the decision-making process. Indeed, Steve has campaigned many times against the urban sprawl of the city affecting villages such as Glenfield. He is working constructively with me and local councillors to try to get progress on the issue.

In my constituency of Horsham, we are almost entirely surrounded by other areas that, for one reason or another, have constrained housing targets—they have areas of outstanding natural beauty, are in national parks or are already built up. As a result, under the duty to co-operate, Horsham has to take a very unfair proportion of housing to serve the whole area. Does the hon. Gentleman agree that the duty to co-operate system needs to be revised to stop freak results happening in constituencies such as mine?

I absolutely agree with the hon. Gentleman. He gives an example in his constituency, but I have seen the same in Leicestershire and, from speaking to other hon. Members, I know there are similar examples in other constituencies. So where are we heading? We have a Government that are steadfast in their plan to concrete over our green and pleasant land, especially in rural constituencies such as mine. In July, the Secretary of State for Housing, Communities and Local Government said that she believed the national planning policy framework “offers extra stability to local authorities.” Is that really the case? The Government’s approach is to alleviate the pressure on housing in UK cities and force additional housing on rural areas, without providing sufficient support to the communities that will impact. That was seen by the Government’s plans to reduce housing targets for cities by an incredible 35% in the NPPF. In the village of Ratby in my constituency, predatory developers such as Lagan Homes are taking advantage of the current situation, forging ahead with proposals to bulldoze over The Burroughs, despite a staggering 900 households in that village writing to the borough council to oppose that ecological vandalism. I am sure Leicester city council was jumping for joy at the news that it would have to build 31% fewer homes by 2030, but that meant rural areas such as mine and my residents’ would have to see additional housing, as it is pushed further and further out. In truth, the reduction is why the decision to build houses on the edge of Glenfield leaves such a sour taste in the mouths of local residents, particularly in Glenfield and Blaby district. What does it look like in context? The city council has been asked to produce fewer houses, whereas rural areas, such as Blaby and Hinckley and Bosworth, have been asked to dramatically increase their target, by 69% and 59%, respectively. Unfortunately, the planning reforms do not really take into account the cross-boundary implications, so what should we do instead? The Government should foster a co-operative relationship from the top down. Our local authorities should be encouraged to work alongside one another to prevent situations such as those I have described. That can be done by allowing adjacent borough and district councils to have a say in housing development policies through their various local plans, particularly where that will have an impact on the neighbouring authority. There should also be an ability for residents in adjacent boroughs to view and comment on plans in other local planning authority areas. Furthermore, the increased arbitrary housing targets for each borough council area simply do not take into consideration the impact of the adjacent targets. There is surely a better method for developing sustainable housing county-wide, rather than local authorities parking houses next to their own front lawn. Finally, and probably most importantly, under the current regime there is no requirement for financial compensation for local authorities that are adversely impacted. No thought is given to that. Section 106 agreements and community infrastructure levy contributions are paid by developers to local authorities to mitigate the impact of specific developments. They are well-intended negotiated agreements that force developers to give something back to the community, whether that be funding for infrastructure, improvements or green spaces. However, they fall short in cross-boundary considerations, as we have seen in the examples I have given from Markfield and Glenfield. Charnwood borough council has made it explicitly clear that the section 106 moneys for the developments along the boundary of Hinckley and Bosworth would go to its own borough. How can spending all those allocations for a development on the edge of Markfield, to the benefit of Loughborough and Barrow, be in the interest of Markfield residents, who sit in a different borough? That undermines local buy-in to the planning process. Instead, there should be a more practical approach whereby section 106 agreements go to the authority where the services are actually being used. Another anomaly of cross-boundary development is the distribution of council tax precepts, with the new residents in Markfield, for example, paying into Charnwood borough council rather than their own. I am not a nimby. I called this debate to raise the issue posed by cross-boundary planning applications. I believe there should be a collaborative, holistic approach, as mentioned by other hon. Members. I encourage the Government to listen to the debate and consider bringing about the changes and proposals that I have outlined.

15:48:00

I start by congratulating the hon. Member for Mid Leicestershire (Mr Bedford) on securing this debate on an important but often overlooked issue. Having known him for many years before we took up our new roles, I can say with authority that his constituents will be well served in this House, particularly because they, like mine, are represented here by one of their local councillors. I too want to draw attention to the Register of Members’ Financial Interests, which includes my ongoing unpaid role as a district councillor for my home village of Norton Canes. As councillors, we know that cross-border developments can cause various complications, which I am sure are seldom considered when developments are brought forward. We all know that council boundaries do not always reflect local communities, and that is inevitable to some extent, with boundaries going down the middle of main roads, for example. It is not particularly logical or necessary, however, to have housing estates or even individual homes divided between different council areas. I am a bit of a local government nerd, so I could give many examples from close to where I live and across my region, but I will spare the House that and focus on my constituency. On the north-east edge of Cannock Chase, we have a small estate nonsensically split between Brereton and Ravenhill, in my constituency, and Armitage with Handsacre in the constituency of my hon. Friend the Member for Lichfield (Dave Robertson). This is reflected in council boundaries as well, so there is clearly an impact on our local services. However, a far bigger cross-border development is fast approaching in the form of the redevelopment of the huge former Rugeley power station site. When it was a 1,000 MW power station, nobody particularly knew or minded where the boundary was. My predecessor and the former Member for Lichfield would often joke about which of the cooling towers were in each of their patches. But once 2,300 homes, around 900 of which will be in Cannock Chase, have been built, this could become a major issue. Rugeley already has several developments on its fringes, which are outside our boundary, including the Hawkesyard estate and Hathorn Grove. The vast majority of those new residents feel that they live in Rugeley and go into Rugeley for various services, yet their lower-tier local authority council tax goes to Lichfield district council. This means that any service that draws on district council resources is strained by an inconsistent council tax base. The same is true of parish and town council services. This is not just about services that residents go out to use, but about the services that come to them at home—bin collections, for example. We also know that NHS commissioning decisions, for example on special educational needs and disabilities provision, are sometimes done on a district by district basis. The chronic lack of general practice capacity in Rugeley and Brereton will be a major issue for the new power station development unless our integrated care board acts quickly. There can sometimes be a democratic deficit, as residents in those cross-border developments are split between different council areas and different parliamentary constituencies. Knowing who to contact about various local issues can be challenging enough as it is, without estates being bisected by boundaries that make no sense. Sometimes, those boundaries are tidied up through ward or constituency boundary reviews, but we know that the process of changing council boundaries can happen only at the request of both councils. Clearly there is no incentive for the council that benefits from council tax payers who do not tend to use its services to consent to a principal area boundary review. As the hon. Member for Mid Leicestershire said, those councils have all the benefits and none of the drawbacks. That process can also be cumbersome, so it rarely happens, even when a small move in a boundary would be the logical thing to do. Given that our constituency boundaries are often based on council boundaries, such discrepancies are often not corrected for Westminster elections either. I do not come here with any oven-ready solutions, although it does strike me that in other countries—Canada for example—local authorities can, with appropriate oversight, annex territory from others to prevent these cross-border challenges and inefficiencies from arising. I hope that the Government will consider how we can better address these challenges. Any solutions that we can come to will certainly greatly benefit community identity and local services.

15:52:00

Having not had the chance to do so personally, may I begin by welcoming the hon. Member for Mid Leicestershire (Mr Bedford) to his place? I think it is fair to say that the important issue of cross-boundary planning co-operation has received far too little attention in this place over recent years, and I therefore very much welcome the hon. Gentleman giving the House an opportunity to consider it in some detail. I also appreciate the clarity with which he set out his position on the matter. He will know that the eight Leicestershire authorities are at different stages of plan preparation, having delayed due to further work addressing Leicester city’s unmet need. Owing to the Secretary of State’s quasi-judicial role in the planning system, I am unable to comment on the details of specific local plans or specific local applications, but the points that the hon. Gentleman has made are on the record and I would expect him to make written representations to the Department in the appropriate way on some of the specific concerns that he has raised. As the hon. Gentleman knows, the nine local authorities in Leicester and Leicestershire voluntarily came together to collaborate on the publication of a non-statutory strategic growth plan in 2018. That plan provides a high-level vision for the sub-region up to 2050, setting out its housing and economic development needs, and focusing growth on key strategic areas. Key to securing cross-party political support for voluntary collaboration along those lines has been the commendable desire to address the negative impacts of ad hoc, speculative development and to stimulate infrastructure investment to support growth. But equally vital has been a shared understanding of the obvious functional geography of a sub-region with a city at its heart, strong pre-existing relationships at member and officer level, and clear governance structures that are independent of any one authority. While the partnership arrangements in Leicestershire took a not insignificant amount of time to establish, and to the best of my understanding nearly collapsed several times, they aptly demonstrate that local planning authorities can, and already do, work together informally to deal with cross-boundary and cumulative matters. Notwithstanding the concerns that the hon. Gentleman raised, Leicestershire is a rare example of relatively successful cross-boundary co-operation in a planning system whose incentive structure is not geared towards facilitating it. The Government have inherited a planning system in which, outside London, some metro mayors have spatial planning powers while others have only the power to prepare non-statutory plans. A lack of effective levers, whether that be governance arrangements that require unanimity or an inability to set the strategic direction for where new affordable housing should be delivered, prevents mayors who do have spatial planning powers from realising the full potential of those powers. In the rest of the country there is a duty to co-operate, as the hon. Member for Horsham (John Milne) mentioned. The requirement provides a minimum standard for cross-border strategic planning, but by common consensus has not proved to an effective mechanism for fostering the kind of deep strategic co-operation that enables areas to meet their cross-border challenges and unmet local need to be shared with adjacent authorities. The Levelling-up and Regeneration Act 2023 includes provisions that enable local authorities to come together to produce joint spatial development strategies, but as that is entirely discretionary and the current incentives are weak, there is no evidence that scores of areas eagerly await the opportunity to take that particular approach. The result is a planning system that currently lacks any effective mechanisms for cross-boundary strategic planning. That has not always been the case. Indeed, planning for housing growth and infrastructure at a larger than local scale has been integral to the functioning of England’s planning system for most of the past half-century, whether through county structure plans, regional planning guidance or the comprehensive system of regional strategic planning introduced by the last Labour Government, including regional spatial strategies. The period since that architecture was abolished by the coalition Government in 2011 has been something of an aberration, with the duty to co-operate ostensibly facilitating necessary strategic cross-boundary planning, but in practice failing to do so in any meaningful way. The result has been large parts of England where no strategic planning activity takes place, a number of notable local plan failures, increased delays in local plan production, growing public antagonism towards the planning system, and a yawning gap between the amount of development that the country needs and what is actually being built. The Government are committed to bringing that sub-optimal situation to an end by first, in the short term, strengthening the existing national planning policy framework requirements on effective co-operation, and then introducing effective new mechanisms for cross-boundary strategic planning through legislation, with a view to implementing a universal system of strategic planning in this Parliament. Let me make it clear that we do not intend to return to the pre-2011 regional planning regime; rather, we will look at how we can ensure that effective cross-boundary co-operation—the kind that I take it the hon. Member for Mid Leicestershire wants to see in his constituency—is taking place at a sub-regional level. While it is still too early to be definitive about the precise model, the Government are attracted to the spatial development strategy, which is well established in London, with the London plan having been produced and continually reviewed over a 20-year period by successive London Mayors. Whatever model is ultimately selected, it is important to note that strategic plans are not big local plans. Nor should the forthcoming introduction of statutory strategic planning arrangements be taken by local planning authorities as a reason not to progress the development of their local plans. Local plans are the best way for communities to shape future development in their areas. The Government are determined to progress toward our ambition of universal local plan coverage, and we intend to drive local plans to adoption as quickly as possible. In all areas, strategic sub-regional plans will guide development for the local planning authorities in the area, and local plans will need to be in general conformity with them. We will expect local plans to be updated or developed alongside the strategic planning process, and we envisage that that process is where those larger than local level questions and negotiations about large-scale housing growth will be determined. Given that the hon. Gentleman’s constituency spans three local authorities, I know he will take an active interest in the Government’s plans. Local authorities in Leicester and Leicestershire have shown what can be achieved through the voluntary production of a non-statutory strategic growth plan. I note that they have been working effectively on their local plans, including various local authorities meeting unmet needs from Leicester city. However, the experience of the partnership arrangements being in place in the county also highlights the risks and limitations of voluntarism. I hope the intention to require statutory strategic planning arrangements to be put in place across England will be welcomed by the authorities that lie within the boundaries of Mid Leicestershire as a means of more quickly and effectively resolving cross-boundary and cumulative issues of the kind the hon. Gentleman has drawn attention to. On that note, I look forward to further discussions with him and other hon. Members as the Government take forward their plans in this area. Question put and agreed to.

15:59:00