Home Builders Federation Respondent No. 1874 Matter 1 Hearing Session : 19th March 2014

CHARNWOOD LOCAL PLAN CORE STRATEGY EXAMINATION

MATTER 1 - DUTY TO CO-OPERATE

Inspector’s Key Issues and Questions in bold text.

Issue : Whether the Council has complied with the duty to co-operate in the preparation of the Core Strategy.

Questions 1 – 13 : Overall housing provision

The HBF submits this response to the Charnwood Local Plan Core Strategy Examination in the context of previously submitted written representations to the Charnwood Pre Submission consultation and evidence to be given at the forthcoming Hearing Sessions. In answering the Inspector’s Questions 1 – 13 as set out above, the HBF replies as follows :-

Section 110 of the Localism Act 2011 provides for a duty on Local Planning Authorities (LPA) to co-operate with each other. This co-operation should be a constructive and active engagement as part of an on-going process to maximise effective working on the preparation of Development Plan Documents (DPD) in relation to strategic matters including sustainable development that would have significant wider impacts. At examination of DPDs LPAs will have to provide evidence that they have complied with this duty if their plans are not to be rejected by an Examiner.

This Duty to Co-operate is reiterated by Paragraphs 17, 157 and 178 of the National Planning Policy Framework (NPPF), whereby neighbouring authorities should work jointly together and co-operate to address planning issues which cross administrative boundaries and on matters that are larger than local issues. Moreover in accordance with Paragraph 181 of the NPPF, LPAs are expected to demonstrate evidence of having effectively co-operated to plan for issues with cross boundary impacts when their local plans are submitted for examination. This co-operation should be continuous from engagement on initial thinking through to implementation. The NPPF requires the preparation of a Strategic Housing Market Area Assessment (SHMAA) to assess in full housing needs across the relevant Housing Market Area (HMA) with neighbouring LPAs working together (Paragraph 159).

Whilst neither the Localism Act nor the NPPF define co-operation, the Planning Inspector examining the North London Waste Management Plan in finding that the Duty to Co-operate on had not been satisfied by the respective London Borough Councils involved, referred to the dictionary definition meaning “to work together, to concur in producing an effect”. The Inspector also noted that the NPPF refers to co-operation rather than consultation, therefore “it is reasonable to assume that engagement as part of co-operation

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is more than a process of consultation” (Paragraphs 22-25 Appendix 1 North London Waste Plan Inspectors Report March 2013).

The Duty to Co-operate comprises of two distinctive parts, which are irrevocably linked. Firstly legal compliance associated with the process and procedures of co-operation. So the Council must co-operate with all of its neighbouring authorities and other prescribed bodies to ensure legal compliance with the Duty to Co-operate under Section 33(A) of the Planning & Compulsory Purchase Act 2004 as amended by Section 110 of the Localism Act 2011. Secondly the outcomes from such co-operation associated with the four tests of soundness of positively prepared, justified, effective and consistent with national policy as defined by Paragraph 182 of the NPPF.

Charnwood Borough Council is situated within and centrally located between the cities of , and . Charnwood Borough Council has six neighbouring authorities namely Leicester City Council, Harborough District Council, Melton District Council, Borough Council, & Bosworth Borough Council and North West Leicestershire District Council. Charnwood Council must demonstrate co- operative working within this context of neighbouring authorities.

The DCLG Advice Note “Identifying Sub-Regional Housing Market Areas” published in March 2007 in Paragraph 6 states “sub-regional housing market areas are geographical areas defined by household demand and preferences for housing. They reflect the key functional linkages between places where people live and work”. These functional linkages are of vital importance when determining strategic housing policies as neither LPA administrative areas nor HMAs are self-contained entities with border controls. Charnwood is part of the Leicester & Leicestershire HMA which comprises of all Charnwood’s neighbouring authorities except Rushcliffe District Council, which is part of the Greater Nottingham HMA. Paragraph 4.1 of the “Charnwood Local Plan Core Strategy Housing Requirements” Topic paper written by the Council, which is undated (but supersedes the May 2013 Topic Paper) confirms that the most notable functional relationship for Charnwood is with the adjacent city of Leicester.

At the time of the Pre submission Local Plan consultation there was great uncertainty about housing requirements across the HMA with no agreement between the Leicestershire District Councils on the overall level of objectively assessed housing needs or the distribution of housing throughout the County. Without the proper assessment of housing needs, further housing pressures could impinge upon Charnwood Borough Council. These potential pressures are summarised below :-

Three neighbouring authorities of Leicester City Council, Hinckley & Bosworth Borough Council and Harborough Borough Council (all within the Leicestershire SHMA) have adopted Core Strategies in which housing requirements are aligned with the revoked EMRP. The draft National Planning Policy Guidance (NPPG) states that “it should be borne in mind that adopted plans based on a revoked Regional Spatial Strategy may not adequately reflect current needs” (ID3-028-130729).

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Two neighbouring authorities of Melton and North West Leicestershire have withdrawn plans from examination at the request of Inspectors. In May 2013, Melton Borough Council withdrew its Local Plan. The withdrawn plan proposed 170 dwellings per annum as set out in the now revoked EMRP. The North West Leicestershire Core Strategy was withdrawn after the Inspector noted that “the stated CS housing target (an average of 388 dwellings per year 2006-2031) derives from the Leicester and Leicestershire Housing Requirements Study (LLHRS). However, the LLHRS states that an annual provision for the housing market area (HMA) of 4,000-4,500 homes per annum would represent a positive planning framework which would ensure that housing provision did not constrain the ability of the sub-region’s economy to achieve a level of growth above the baseline forecast. This is similar to (or higher than) the EMRP’s requirement for the HMA (of 4,020 dwellings per annum). Taken together, these factors suggest that the CS figure may result in a shortfall within the HMA as a whole. It should be remembered that paragraph 47 of the Framework refers to meeting needs in the market area. In that context, a number of other planning authorities within the HMA have objected to the CS housing target, raising concerns that this would not enable a strategic policy approach to be taken to the distribution of housing development within the HMA. This is a matter that I will need to consider both in terms of the Plan’s soundness and the legal duty to co- operate under section 33A of the Act (as amended).”

The neighbouring authority of Rushcliffe Borough Council (part of the Greater SHMA rather than the Leicestershire SHMA) has suspended its Core Strategy Examination due to concerns raised by the Inspector about compliance with the Duty to Co-operate and the lack of an objective assessment of housing needs.

However since then, the Charnwood Local Plan Core Strategy Duty to Co- operate Topic Paper dated October 2013 confirms that the Leicestershire Councils have agreed to undertake a new NPPF compliant SHMA to inform future plan making including a review of the Charnwood Core Strategy. The overall housing requirement figure for the HMA is expected in Autumn 2014 however this will not consider the ability of the Districts to meet this need and therefore its consequential distribution. Paragraph 3.3 of the “Charnwood Local Plan Core Strategy Housing Requirement” Topic Paper, which is undated (but must post date the Housing Requirement Study dated October 2013 by J G Consulting Ltd) states that “the partners within the HMA are currently working together to consider the mechanism for preparing and agreeing future housing requirements and their distribution”. As the Duty to Co-operate does not necessitate agreement this on-going dialogue does demonstrate joint working between neighbouring authorities as required by the Duty to Co-operate even though as yet there is not a satisfactory outcome, which is a matter of soundness.

The HBF welcomes the commitment of the Leicestershire Councils to the new SHMA. On completion the new Leicester & Leicestershire SHMA will address the current weaknesses of the Council’s evidence base. The NPPF also emphasises that LPAs should ensure that their plans are based on adequate,

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up-to-date and relevant evidence about the economic, social and environmental characteristics and prospects of their area. LPAs should ensure that their assessment of and strategies for housing, employment and other uses are integrated, and that they take full account of relevant market and economic signals (Paragraph 158).

The HBF agrees with the Council that there should be a plan led system as stated in Paragraph 3.4 of the “Charnwood Local Plan Core Strategy Housing Requirement”. However irrespective of the stage of plan making or the status of its plan, positive planning requires that as much land as possible is brought forward as quickly as possible by the granting of planning consents by the Council and pro-actively working with developers.

The Council refers to a similar position in which Solihull MBC found itself. Whilst the Solihull Plan proceeded to adoption the HBF would point out that the Inspector’s Report recommended that a new SHMA be carried out immediately (in 2014) and if necessary the Plan reviewed. If the Charnwood Local Plan proceeded to adoption a similar proviso would be required as a policy commitment. Alternatively the North Core Strategy was temporarily postponed until the preliminary findings of the new Coventry & Warwickshire SHMA were available.

Susan E Green MRTPI Planning Manager – Local Plans

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