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Localism Bill: Planning and Housing Bill 126 of 2010-11 RESEARCH PAPER 11/03 11 January 2011

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Localism Bill: Planning and Housing Bill 126 of 2010-11 RESEARCH PAPER 11/03 11 January 2011 Localism Bill: Planning and Housing Bill 126 of 2010-11 RESEARCH PAPER 11/03 11 January 2011 The Localism Bill 2010-11 was introduced in the House of Commons on 13 December 2010. This Paper summarises the planning, housing and London sections of the Bill. Aspects of the Bill relating to local government and community empowerment are summarised in Research Paper 11/02. The Bill is due to receive its second reading in the House of Commons on 17 January 2011. Part 5 of the Bill will abolish regional planning, introduce a neighbourhood planning regime and abolish the Infrastructure Planning Commission. Part 6 of the Bill will make significant changes to the way in which social housing is provided and will also repeal the legislation governing the provision of Home Information Packs (HIPs). This Part includes provisions that will enable the long awaited reform of council housing finance. Part 7 of the Bill will make changes to housing and regeneration functions in London. It will abolish the London Development Agency and introduce a regime for Mayoral Development Corporations. Changes to Greater London Authority governance will allow the delegation of functions by Ministers to the Mayor. Christopher Barclay Wendy Wilson Recent Research Papers 10/76 National Insurance Contributions Bill [Bill 79 of 2010-11] 17.11.10 10/77 Savings Accounts and Health in Pregnancy Grant Bill: Committee Stage 18.11.10 Report 10/78 Daylight Saving Bill [Bill 7 of 2010-11] 01.12.10 10/79 European Union Bill [Bill 106 of 2010-11] 02.12.10 10/80 Economic Indicators, December 2010 07.12.10 10/81 Police Reform and Social Responsibility Bill [Bill 116 of 2010-11] 09.12.10 10/82 Loans to Ireland Bill [Bill 125 of 2010-11] 13.12.10 10/83 National Insurance Contributions Bill: Committee Stage Report 14.12.10 10/84 Unemployment by Constituency, December 2010 15.12.10 10/85 Armed Forces Bill [Bill 122 of 2010-11] 17.12.10 Research Paper 11/03 Contributing Authors: Christopher Barclay, Planning, Science and Environment Section Wendy Wilson, Housing, Social Policy Section Keith Parry, Local Government, Parliament and Constitution Centre Adam Mellows- Facer, Economic development in London, Economic Policy and Statistics Section Matthew Keep, Social Statistics, Social and General Statistics Section This information is provided to Members of Parliament in support of their parliamentary duties and is not intended to address the specific circumstances of any particular individual. It should not be relied upon as being up to date; the law or policies may have changed since it was last updated; and it should not be relied upon as legal or professional advice or as a substitute for it. A suitably qualified professional should be consulted if specific advice or information is required. This information is provided subject to our general terms and conditions which are available online or may be provided on request in hard copy. Authors are available to discuss the content of this briefing with Members and their staff, but not with the general public. We welcome comments on our papers; these should be e-mailed to [email protected]. ISSN 1368-8456 RESEARCH PAPER 11/03 Contents Summary 1 1 Part 5: Planning 3 1.1 Planning and the Labour Government 3 1.2 Coalition Government proposals 8 1.3 Abolition of regional planning 11 1.4 Community Infrastructure Levy 16 1.5 Neighbourhood planning and consultation 19 1.6 Enforcement 29 1.7 Nationally significant infrastructure projects 31 2 Part 6: Housing 34 2.1 Housing allocations 34 2.2 Homelessness 42 2.3 Tenancy strategies 47 2.4 Flexible tenancies 49 2.5 Housing finance 58 2.6 Housing mobility 73 2.7 The regulation of social housing 77 2.8 Wales 79 2.9 Housing ombudsman 80 2.10 Home information packs 82 3 Part 7: London 84 3.1 Background 84 3.2 Economic development in London 85 3.3 Housing and regeneration functions 86 3.4 Mayoral Development Corporations 89 3.5 GLA governance 91 RESEARCH PAPER 11/03 Summary Part 5 of the Bill will abolish regional planning, introduce a neighbourhood planning regime and abolish the Infrastructure Planning Commission, along with other changes. The planning measures in the Bill apply to England and Wales only, except that Clause 107, relating to abolition of the Infrastructure Planning Commission, affects pipelines crossing the Scottish border. Chapter 1 will abolish regional strategies and introduce a duty to co-operate for local authorities and public bodies. It will increase the freedom of a local planning authority in adoption of development plan documents. Chapter 2 will amend the Community Infrastructure Levy, introduced by the Labour Government just before the General Election. The Bill will require a significant proportion of the money charged to developers to go to local projects. Chapter 3 will introduce a neighbourhood planning regime, allowing both neighbourhood plans and neighbourhood development orders to be prepared in draft by a parish council or similar body, which are then submitted to independent examination. The results would have to be adopted if favoured by 50% of those voting in a referendum, provided that certain international obligations are not infringed. Community Right to Build is covered by a similar procedure. Chapter 4 will introduce new requirements for consultation for large planning applications other than major infrastructure projects of national importance. Chapter 5 will increase enforcement powers, particularly in relation to development undertaken without planning consent. Chapter 6 will abolish the Infrastructure Planning Commission, restoring to the Secretary of State the final decision. Other changes are made to the consent procedures for nationally significant infrastructure projects. Part 6 of the Bill will make significant changes to the way in which social housing is provided and will also repeal the legislation governing the provision of Home Information Packs (HIPs). The requirement to have a HIP was suspended at the end of May 2010. Chapter 1 will give housing authorities additional discretion to determine who can apply for social housing within their areas and will enable them to discharge their duty to secure suitable accommodation for unintentionally homeless households by using privately rented housing. The additional flexibilities offered have attracted “in principle” support from authorities but commentators have emphasised that, in the face of a severe housing shortage, these flexibilities may be of limited benefit. There are also concerns around the impact of Housing Benefit changes announced in the June 2010 Budget and October 2010 Spending Review on the feasibility of increased use of privately rented housing. Chapter 2 will give local housing authorities and registered providers of social housing (housing associations) discretion to offer “flexible tenancies” with a minimum term of two years to new tenants. The circumstances of these tenants would be reviewed prior to the end of the fixed-term in order to assess whether the tenancy should be extended or not. Again, there is some “in principle” support for the flexibility this will offer to landlords but questions have been raised around the potential for further residualisation of social housing and the possibility that the threat of losing their home will act as a work disincentive for social housing tenants. Flexible tenancies are central to the development of the Government’s “Affordable Rent model.” 1 RESEARCH PAPER 11/03 The reform of the council housing finance system has been under consideration since 2006 with much of the preparatory work carried out under the Labour administration. Chapter 3 of the Bill will provide a framework for the introduction of a new “self-financing” system of council housing finance which will enable councils with a Housing Revenue Account (HRA) to keep the rent received from their tenants. A policy document to be published early in 2011 will provide the detailed information that authorities need in order to assess the impact of self-financing on their businesses. The principle of moving to a self-financing regime has overwhelming support from local authorities but there remain issues around the technical detail of the settlement. Chapter 4 contains measures aimed at improving the mobility of social housing tenants while Chapter 5 will abolish the existing regulator of social landlords, the Tenant Services Authority (TSA). The TSA’s functions will be transferred to the Homes and Communities Agency (HCA). The HCA’s regulatory function will focus on economic and financial matters. Chapter 6 will extend the powers of the National Assembly for Wales in regard to housing matters and will provide for a single Ombudsman service to deal with all complaints about social housing. Chapter 6 also provides for the abolition of HIPs. The provisions in Part 6 apply only to England, aside from Clauses 124 and 125 (homelessness) and Clause 152, which gives specific legislative competence to Wales in certain areas of housing finance. Part 7 of the Bill will make changes to London housing and regeneration functions as well as to London governance. Chapter 1 (Clauses 157-161) will provide for the devolution of executive powers over housing investment from the HCA to the Greater London Authority (GLA) “so it can be fully aligned with the Mayor’s own funding pot and the London Housing Strategy.” Chapter 1 will also abolish the London Development Agency and provide for an economic development strategy for London. Chapter 2 will give the Mayor of London the power to designate Mayoral development areas in which a Mayoral Development Corporation will be the local planning authority. The aim is to focus regeneration where it is most needed and to help secure the legacy from the Olympic Games. Chapter 3 will allow ministers to delegate certain functions to the Mayor.
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