Planning Reforms: Energy and Housing Costs

Question

11:31:00

Asked by

To ask His Majesty’s Government what assessment they have made of the potential impact of their proposed planning reforms on productivity in the United Kingdom, specifically in relation to the impact of the reforms on the cost of energy and housing.

My Lords, my noble friend points to the key role our Government’s steps to unblock a sclerotic planning system will play in delivering our growth mission. The Government continually assess the potential impact of our policies, including the proposed planning reforms. This is backed up by the independent OBR, which has forecast that the Government’s reforms to the National Planning Policy Framework will add around £6.8 billion to GDP in 2029-30 and raise UK housebuilding to its highest level in 40 years. The Government’s other planning reforms, including the Planning and Infrastructure Bill, will help deliver the Government’s clean power 2030 commitment, which, overall, is expected to unlock £40 billion of investment a year in clean energy infrastructure.

I thank my noble friend for that helpful response, and I refer the House to my entry in the register of interests. Working with not-for-profits, I have seen how vital and often popular projects can be delayed or derailed by the complexity of the planning system, which is often used by small, well-organised local opposition. Larger developers can usually navigate this; smaller organisations, especially those without a profit motive, can struggle. Do His Majesty’s Government consider planning complexity itself a barrier to progress that is worthy of attention as part of the planning system reform?

My noble friend is quite right. We have made it a priority of this Government to develop a simplified planning system with a policy framework that is accessible and understandable to all. Our reforms will streamline planning processes to help provide more homes of all tenures and accelerate the delivery of major infrastructure projects. They will modernise the decision-making process and increase local planning authorities’ capacity to deliver that improved service. We have also committed to establishing a clearer set of national policies for decision-making, so the system is clearer and more consistent. All this should help smaller developers.

My Lords, is it not mandatory for all new houses to have on their roofs solar panels or photovoltaics?

My Lords, we are developing the future homes strategy, which will point to all the net-zero measures that we want to see. We do not want new houses being built that have to be retrofitted, or that are technology-specific, because the technology is developing at pace and we want to make sure there is enough flexibility in the system for new technologies to be adopted. Things such as solar panels and air source heat pumps are great innovations that are really changing our homes, keeping them warmer and making them more carbon neutral.

My Lords, in future, a number of major planning applications will require environmental development plans, which will be written by Natural England. Yet there is a great scepticism about the efficiency of that, because Natural England does not have the resources, and it is going to be very difficult to recruit them in time to meet the planning targets. Can the Minister assure us that, somehow, these plans and Natural England will be properly resourced to make sure that those efficiencies can happen, and that nature can be protected?

My Lords, it is important that, as we go forward with our ambitious target to build 1.5 million homes, we take care of the environment at the same time. Natural England’s role in that, which the noble Lord points to, is key in developing the plans that will protect nature as we build those homes. I understand the concerns that he and other noble Lords have about the resources in Natural England. We are working very closely with it, and we will provide it with additional resources to help it deliver with us what I do not think is a contradiction: the development and infrastructure that we all want to see, while protecting our precious natural environment at the same time.

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We will hear from the Cross Benches.

My Lords, the Minister herself referred to the sclerotic system. I declare my interest as president of the British Chambers of Commerce. One contributor to that system is the chronic lack of planners themselves. We are working on a project with Aviva to try to help build that capacity, but it will only ever deliver a fraction of the Government’s ambition. Is the Minister aware of the project, and what other creative plans do she and her department have to turbocharge the number of planners in the country?

I thank the noble Baroness for her question. The Government have announced additional funding to support the recruitment and training of 300 graduates and apprentices for local planning authorities. However, I have worked in local government for a long time, and I am not naive enough to think you can pick planners from trees; they need to be trained. This forms part of a wider £46 million package of investment in the planning system to upskill local planners and ensure they can implement our reforms, including ensuring that everywhere has an up-to-date local plan in place. We need to inspire young people into these careers and make sure that they see the benefit of a career in planning. We are never going to be able to compete with the private sector on salary, but we can compete on the excitement of developing local places and good places for people to live, and I hope that will inspire people.

My Lords, I invite the noble Lord, Lord Campbell-Savours, to participate remotely.

My Lords, do not planning reforms which fail to address land costs for housing development perpetuate a system in which high costs determine affordability of housing for sale? Again, I ask my oft-repeated question: why not examine arrangements in Nijmegen in Holland and Hammarby in Sweden, where housing for sale has been built on land acquired at agricultural prices? Indeed, we could go further by adopting new forms of title which lock in discounted affordable sale prices with occupancy and resale restrictions. We need to think out of the box in this housing crisis.

My Lords, I have heard my noble friend speak on this issue many times, and he is quite right to point to the restrictions that the value of land places on the system. Of course, we are always looking at new methods of making sure that the houses we need are viable and will deliver the quantity of housing needed, and we continue to explore all avenues to deliver that properly. I hope my noble friend will look at the Planning and Infrastructure Bill: there is progress in there, and I hope he likes what he sees.

My Lords, I declare my interest as a councillor in Central Bedfordshire. The benefits to growth and innovation of densifying our cities are well recognised, yet the UK has some of the lowest-density cities in the G7, and this Government are now seeking to facilitate building on the green belt rather than driving densification and regeneration of our cities. Will the Minister confirm that this Government will move forward with the previous Conservative Government’s strong presumption in favour of brownfield development?

I am sorry, but the noble Lord is quite wrong in his assumption. We are prioritising building on brownfield sites. I know he has a particular bugbear about London; I was with the Mayor of London just last week and was very pleased to see his review of the use of the green belt in London as part of the work on the London Plan. I was interested to hear that, of the half a million hectares of green belt in London, just 13% is made up of parks and accessible green space. The mayor is making progress on this, and so are we. Brownfield will always be our first choice, but we are looking at grey-belt and green-belt development as well.

Will the Minister look carefully at the cumulative impact on rural and coastal communities of major infrastructure projects? When an offshore planning application is made for a wind farm, it is causing real distress: before people realise it, they have substations to take the electricity on board, and then lines of pylons. What steps will the Government take to alleviate this situation?

We now have a land-use framework from Defra, and we will be producing a long-term housing strategy, which will include information about how we intend to work in rural areas. I hope the noble Baroness will contribute to the consultation on that. It is of course very important that we develop the infrastructure we need as a country and continue our move towards a clean-energy future. That will mean some use of land in rural and urban areas, but that can sometimes be exaggerated. The figure my noble friend the Energy Minister often cites is that, at the moment, our plans mean that 0.1% of land would be used for solar farms. So we have to be careful about over-exaggerating the issue, but the noble Baroness’s point is well made and we do need to protect good-quality agricultural land—that is our intention—as well as making sure we build what we need.

My Lords, I recognise the Minister’s desire not to be technology-specific regarding the new homes building standards. But I wonder whether she agrees with me that by not laying down a requirement for solar energy when it is applicable to new building, you leave the decision in the hands of the developers, who may well choose not to do something that would contribute to energy security in this country and to lower heating bills for the owners or tenants of those properties?

We have made it clear that the drive in the National Planning Policy Framework, which we have just reviewed, is towards renewable energy. The noble Baroness points to just one of the reasons, which is the cheaper energy supply for householders and businesses, but we need to focus on energy security as well as making sure we are not damaging the planet through the energy we use. Importantly, the planning reforms will help to fast-track projects to create homegrown renewable electricity for homes and businesses. The national planning policies we have set out move towards that, but as I said, we have to be careful not to shut off new technologies and to make sure that we leave flexibility for new technologies as they develop.