It is a pleasure to serve under your chairmanship, Ms Jardine. As I welcome him to his place, the Minister can be reassured that, although I like a challenge, we will not divide the Committee this morning given the number of Government Members on the other side. However, as he would expect, we have some questions to follow up on some of the points that he made in his concise speech.
We are here because the Government have announced a hike in fees for householder development applications, applications for prior approval, and applications for the approval of details reserved by condition. The increase is a further blow, we would argue, to homeowners, who already face the complexities and red tape of the planning system. I understand that new burdens are also being introduced: applications for prior approval and for the approval of details reserved by condition, to approve details not fully described in planning permission, now face added layers of paperwork, all of which will add to the burden on ordinary people trying to make improvements to their homes.
Let us be clear about the context. When increases in fees were necessary in the past, the last Government always took care to ensure that they were fair and kept as low as possible. That is why, as the Minister outlined, in December 2023 the last Government increased planning application fees by 35% for major developments and 25% for all other applications. We understood that householders already contribute to local authorities’ budgets, primarily through council tax.
Now, fees will jump by 105%—from £258 to £528—for single dwelling house improvements and other alterations. For two or more dwelling houses, the increase is also an eye-watering 105%, from £509 to £1,043. We remain concerned that the measure means that people simply trying to make improvements to their homes, in line with local planning policies and national regulations, are being burdened with ever higher fees. As a result of Labour’s local government finance settlement, councils are already having to raise council tax by 5%—the maximum they can raise without going to a referendum. Those councils represent people already dealing with the tax hikes imposed by this Government; now those people must navigate these increased costs just to make small improvements to their properties.
We are concerned because there is no evidence that the rises will deliver a better service for local people who are going through the planning system for simple changes and low-level planning alterations. Nowhere in the impact assessment is there conclusive proof that the money will go back into restaffing planning departments or helping with the efficiency of planning decisions—as we know, those take far too long for far too many people. Meanwhile, costs increase on people already suffering the brunt of the Government’s fiscal decisions.
The Minister hinted at an expectation that local authorities would keep the extra revenues within planning departments, but I would be grateful if he outlined what monitoring mechanism he will personally put in place to see whether the increases deliver better services and planning decisions for local people. If the improvement in efficiency that we expect does not take place, what mechanisms will he put in place to bring the increases back down?
The Local Government Association has identified a £1.7 billion shortfall, directly resulting from the Government’s national insurance contribution hikes. This is not a hypothetical problem; it is a real issue impacting local services, including planning authorities. As I said, there is no guarantee that that extra burden will result in quicker planning decisions. Furthermore, local authorities across the country are facing cuts that go beyond planning. As my hon. Friend the Member for Ruislip, Northwood and Pinner has pointed out, millions of pounds are being cut from crucial funding schemes, such as the new homes bonus and the rural services delivery grant. Those cuts, combined with the national insurance hike and this increase, are pushing councils further into financial crisis.
There is a clear case for treating householders differently from large developers, as the last Government did. Home improvements, however small, are a right of homeowners, in line with local and national planning policies. They are not there to be priced out of reach for ordinary homeowners. Improvements to homes, under schemes as described, free up the market and help to create sustainable communities and local supply chains. I urge the Government to reconsider these fee increases and the impact that they will have on ordinary households across the country. I cannot see that there will be better services at the end of this proposal.
As I mentioned, we will not divide the Committee, but I hope the Minister will take onboard some of these comments and outline to the Committee how he expects efficiencies to improve. We need a fairer, more balanced approach to funding planning authorities—one that does not target hard-working homeowners. It is time for the Government to rethink their approach to planning and local funding, and stand up for the people who matter most: the citizens who contribute to their communities and the local economy.