Lucy Frazer – 2022 Speech on the Levelling Up and Regeneration Bill

The speech made by Lucy Frazer, the Minister of State at the Department for Levelling Up, Housing and Communities, in the House of Commons on 13 December 2022.

Our houses are not just bricks and mortar; they are homes. And those who live around us are not just our neighbours; they are our communities. We all want to live in streets that uplift our spirits and where our children, and their children, can afford to live and own their own homes alongside us. Churchill once said:

“We shape our buildings and afterwards our buildings shape us.”—[Official Report, 28 October 1943; Vol. 393, c. 403.]

So too, if we empower our communities, they will empower us.

We know that we can do more to ensure that, when we expand our communities, we do so in the right places, with the right infrastructure, and with the support of local people and local representatives. The think-tank Demos asked people whether they would prefer to have more say over how money is spent in their area, or to have more money. People were twice as likely to say that they would prefer to have more say and less money. Our Bill seeks to provide opportunities for collaboration and empowerment. It provides more opportunity for more homes that are beautiful, supported by infrastructure, delivered with democracy, which level up across our country.

I thank all colleagues for their extensive engagement, highlighting to me, to the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Kensington (Felicity Buchan), and to the Secretary of State the issues and concerns in their local areas. All represent different and diverse areas across the country: rural and urban, coastal and remote, island and inner city. I thank in particular my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for Isle of Wight (Bob Seely) for their constructive contribution on this issue and their unwavering commitment to our planning system and their constituents.

I also thank my right hon. Friends the Members for Ashford (Damian Green) and for Romsey and Southampton North (Caroline Nokes), my hon. Friends the Members for Gosport (Dame Caroline Dinenage), for Aylesbury (Rob Butler), for Rushcliffe (Ruth Edwards), for North Devon (Selaine Saxby) and for Buckingham (Greg Smith), and the many Members across the House who have contributed significantly to our policy decisions on these issues.

It is important that we build homes this country needs in the places that we need homes most. We have a moral responsibility to get on and build, but we also have a responsibility to our existing communities to do so in the right way and with community support.

Ruth Edwards (Rushcliffe) (Con)

My constituents in Rushcliffe are supportive of house building, but they rightly object to being forced to build 660% of the national average, as they were last year, often on greenfield sites and without the infrastructure to match. Can my right hon. and learned Friend confirm that the Bill will give real teeth to our brownfield-first policy and give power back to local people to shape the future of their communities?

Lucy Frazer

I was pleased to discuss these issues with my hon. Friend, and she is absolutely right that we must build on brownfield first. That is what local communities want. Through not just this Bill, but the consultation that we will bring forward on the national planning policy framework, we will identify how we can encourage local communities to do just that, with incentives through the infrastructure levy, for example, but through other measures too.

The way for a community and local representatives to shape their area’s future is through the local plan. At the moment, local plans are taking too long. The system is too onerous and councils feel that their local constraints are not properly taken into account. The result is that fewer than 40% of planning authorities have adopted a plan in the last five years. That means that, instead of developments being delivered coherently and in collaboration with communities, new houses are being imposed on local people through successive planning applications. Through the Bill and the consultation on the NPPF, which we intend to launch before Christmas, we will ensure that the needs of the community are taken into account when a plan is designed. Once the plan is in place, it will provide protection against other unwanted development.

Mr Clive Betts (Sheffield South East) (Lab)

I completely agree with the Minister about local plans. The Levelling Up, Housing and Communities Committee has said that on many occasions. May I just ask her, though, whether, in national terms, the Government are still committed to the 300,000 figure, as a target, an objective, an aspiration or whatever and, if they are, how will they achieve that figure unless the numbers agreed in local plans individually throughout the country add up to that 300,000?

Lucy Frazer

I can confirm that the Government are committed to building 300,000 homes because we do need those homes across the country and we need to ensure that young people can get on to the housing ladder. As I have just identified, communities are not agreeing local plans with those figures in them, so they are getting development where they do not want it; it is speculative development. What we will see through this measure is communities coming together with that starting point number, but seeing what works for their communities. When they engage properly on it, I think we will see that housing coming through.

Wendy Morton (Aldridge-Brownhills) (Con)

My right hon. and learned Friend knows that I am a passionate campaigner for brownfield first. When it comes to this point about communities, it is refreshing to hear that the Government have taken on board the points about including communities in that process, making them feel much more involved. Will she, at some point, be giving us further detail on how that process will work and where the opportunities will be for local communities to feed in their views?

Lucy Frazer

I was happy to discuss these very issues with my right hon. Friend, who has written on this issue and I know feels very deeply about it, especially the issue of brownfield land and development. We will ensure that people will build what their local community wants through, for example, not just their local plan, but the mandatory design code. Local areas will have a design code, so that, when a building comes through, it will be in the manner and design that local communities want.

Sir John Hayes (South Holland and The Deepings) (Con)

My right hon. and learned Friend will know that, from the time I was the shadow Housing Minister 15 to 20 years ago, to the Building Beautiful, Building Better Commission and now the Office For Place, I have emphasised exactly what she has just described. Too often in the modern age, development has been out of scale and out of keeping with the existing built environment. Will she ensure that local authorities are fully informed of their ability to turn down an application for housing purely on design and scale terms?

Lucy Frazer

I know that my right hon. Friend is very interested in these issues and is conscious of beauty and the importance for us to maintain that. Of course local authorities will be able to take their local decisions on those matters that concern them.

Richard Fuller (North East Bedfordshire) (Con)

I am pleased to hear what the Minister is saying about improving the efficiency of the process. She will know that my amendment 75 talks about the fact that the guards are down for local authorities when their local plan is in abeyance. That was brought into sharp relief in the village of Harrold. It was only thanks to local councillor Alison Field Foster and the local parish council that development could be stopped. Is what the Minister is saying today going to close that gap to make my amendment unnecessary, or will there still be a liability for local authorities under her plan?

Lucy Frazer

I have studied carefully my hon. Friend’s amendments, which are all on interesting points. We do not think that there is a need for those amendments, because there are provisions in the Bill to ensure that local communities can make decisions to protect local communities.

John Redwood (Wokingham) (Con)

Can the Minister remind the House how the Government will stop developers gaming a local plan and getting permissions that are not within the local plan under some silly rule?

Lucy Frazer

This Bill and the proposals that we are bringing forward through the revised NPPF will do exactly that. At the moment, in 60% of areas, building is through speculative development, not where communities want it. We want to streamline the local plan process, get those plans in place, where communities want it, and then we can start and continue to build.

Rachael Maskell (York Central) (Lab/Co-op) rose—

Lucy Frazer

I will make a little progress, but I am happy to come back to the hon. Member shortly.

In setting the principles for a local plan, we intend to retain a method for calculating local housing need figures. But these will be an advisory starting point. We propose that it will be up to local authorities, working with their communities, to determine how many homes can actually be built. They will take into account considerations such as the green belt, and the existence of a national park or coast. Building densities should not be significantly out of character with an area. We also propose making changes to the rolling five-year land supply, ending the obligation where a planned strategic housing policy is up to date. Communities will have a powerful incentive to get involved in their local plans.

Kelly Tolhurst (Rochester and Strood) (Con)

It is good to hear the policies that my right hon. and learned Friend is outlining. My constituency has a high housing target that is forcing the closure of a working port. How would the options she has just outlined help my constituency keep a working docks instead of seeing the development of high-rise flats?

Lucy Frazer

I know that my hon. Friend is a champion for her area, which has seen significant building. I cannot comment on any particular local plans, but an area must consider all the things that it needs to thrive, and that includes houses as well as employment facilities.

Dame Maria Miller (Basingstoke) (Con)

I thank the Minister for her words, which are incredibly helpful. Not many constituencies are like Basingstoke, which has built 150,000 houses in the last five decades. Can the Minister give me some comfort that that high level of delivery will be taken into account when future house building needs are decided? At the moment, we have to build 1,400 houses a year, which is just not sustainable, not least for the NHS.

Lucy Frazer

I thank my right hon. Friend, and I was pleased to talk to her about her concerns, because I know that she is a huge advocate for her area. I can give her that comfort that we think it should be taken into account if areas have already over-delivered and taken significant housing. That should be taken into account when putting together the local plan.

Rachael Maskell

Further to the point that the hon. Member for Rochester and Strood (Kelly Tolhurst) made, when developers build luxury flats that the local community often cannot afford it adds nothing to the housing numbers that need to be delivered. How will the Bill address that issue?

Lucy Frazer

We are taking a variety of approaches. We emphasise the importance of variety, not just in the types of accommodation provided but in the type of buildings. That is how we get more housing supply, because we will have more uptake. We are also committed to more affordable homes, and we have a £11.5 billion fund to ensure that we get those homes built.

The Bill respects communities, but it also respects the environment. Central to our reforms will be a new system for assessing the impact of development on the environment. The system will replace the bureaucratic maze that we inherited from the EU. We will replace it with a system that is just as protective, but is outcomes based, not systems driven.

Clearly the Bill will not achieve the perfect planning system for every Member, councillor and constituent, when we all live in diverse areas with conflicting needs and interests, but I hope that the amendments will go even further towards improving our planning system.

Andy Carter (Warrington South) (Con)

My right hon. and learned Friend will know that Warrington, as a new town, has seen thousands and thousands of homes built in the last 50 years. It is currently in the process of agreeing its local plan—the local planning inquiry finished just last week. I am pleased to hear today that many of the suggestions will be put into law. Can she confirm that there will be a period in which local plans are paused before they are agreed and adopted? Many of the proposals she talks about today are fundamental to making the changes that we need to see in local plans.

Lucy Frazer

I can give a confirmation that there will be some transitional provisions enabling local councils to proceed with the plan that they are about to adopt, but if they want to reflect, there will be an opportunity to do that as well. We believe that we are improving the system through the measures that we have set out.

Caroline Lucas (Brighton, Pavilion) (Green)

Does the right hon. and learned Lady accept that we also need to level up access to green space and nature? Right now, the distribution of green space is very unequal; many people on the lowest incomes simply do not have access to green space at all. Will she look at my new clause 13 and look again at the whole issue of ensuring a right of access to good green space?

Lucy Frazer

As I mentioned just now, the Bill is not just about building; it is also about protecting the environment. A number of measures in the Bill will ensure that we protect our natural spaces—30% of our nature—and our local nature recovery strategies, which are due to begin across England as soon as possible, were committed to in the Environment Act 2021.

Bob Seely (Isle of Wight) (Con)

Does my right hon. and learned Friend agree that, following the talks between Ministers, my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and me, we should have reached a compromise on a much more community-led, environmentally friendly and regenerative housing policy? As the Minister can hear, however, there is still considerable concern about making sure that we deliver the substance of these things as well as simply the words around them. Will that be reflected in the NPPF?

Lucy Frazer

I reiterate my thanks to my hon. Friend, who has worked so hard with my right hon. Friend the Member for Chipping Barnet to make sure that we get our planning system right, on behalf of and with so many colleagues on our Benches. I assure him that we in the Department for Levelling Up—me and the Secretary of State—believe that we have come to a better solution. We are committed to delivering it, as I am sure my hon. Friend and others across this House will see in the policy that we will propose in the NPPF and bring forward before Christmas.

Mike Amesbury (Weaver Vale) (Lab) rose—

Lucy Frazer

I will make a little progress, because I would like to address the Government amendments, which I will do in five categories. First, we are making it easier for people to develop where they want to develop, and where it delivers the best gain to the community and ensures that planned-for development actually happens. I will highlight five measures in this first category.

Through new clauses 49 to 59, we will pilot community land auctions. They will seek to increase the supply of land and aim to capture more land value more effectively to the benefit of the local community. Planning permission will not be granted automatically on sites allocated in the local plan through the auction process.

Through new clauses 60 and 69, we are allowing for street votes enabling residents to come together and propose additional development on their streets in line with their preferences—subject to meeting prescribed requirements—and vote on whether it should be given permission. In speaking to those new clauses, I would like to acknowledge the work of my hon. Friend the Member for Weston-super-Mare (John Penrose) and the “Strong Suburbs” report by Policy Exchange.

We are making it easier for people to access suitable plots to build their own homes. We are building on the immense work of my hon. Friend the Member for South Norfolk (Mr Bacon). We recognise the importance of self-build and custom housebuilding, and new clause 68 clarifies the duty on authorities to provide for plots for such homes in their planning decisions.

We will also seek to reduce barriers to smaller-scale developments that communities can easily get behind. I know that my hon. Friend the Member for Northampton South (Andrew Lewer) has worked significantly on that area. I can confirm that our intention is to consult on changing national policy to encourage greater use of small sites, especially those that will deliver higher levels of affordable housing.

Importantly, we are ensuring that when permissions are given, developments can be built out quickly. New clauses 48 and 67 deal with that. Members across the House have been concerned about the rate at which development occurs once planning permission has been granted. It is wrong for developers simply to sit on planning permissions, because that increases the number of permissions that have to be granted and risks overdevelopment. The Bill introduces further steps to tackle the issue, including a requirement for developers to report on the rate at which they build, and allowing authorities to deny permission for further development on the same sites where the developers have failed to build out. All those measures will encourage development where people want it and where they have agreed to have it.

Mr Betts

I am not sure whether the Minister has looked at my amendments to her new clause 67. I agree with her about ensuring that builders build out at the required rate. However, some builders build out while ignoring the conditions for the planning permission put on them. I have a really bad case of that in my constituency with Avant Homes, which does not connect with local people, puts mud all over the roads and puts silt in the local brook—that sort of thing. Will she accept that local councils should be entitled to take account of failures to observe conditions when looking at future planning applications?

Lucy Frazer

We are looking at the issue carefully and will consult on further measures that we might be able to bring forward. I assure the hon. Gentleman that where there are reasonable avenues that we can explore, we will look closely at them.

Dame Maria Miller

I want to build further on that intervention with regard to building out. In my constituency, many of those who have built out and built houses have not done so to the required quality, leaving many residents having to seek significant remedial works. However, my local authority is not allowed to take that into account when giving future permissions. Could the Minister look at consulting on that? Surely we should be encouraging quality over quantity.

Lucy Frazer

I am happy to discuss that issue further with my right hon. Friend. As I mentioned, we are very concerned about build-out to increase the number of homes, and I know that the Secretary of State feels strongly about quality.

The second set of measures that we are introducing by way of amendments relates to infrastructure, because put simply, we cannot have houses without services to support them. Through the Bill, we will replace the existing system with an infrastructure levy—a non-negotiable liability for the developer based on the value of the development. Our plan is to implement the levy in stages so that we can adapt it according to the latest data and the latest evidence.

Thirdly, we are protecting the environment. On top of our environmental assessment reforms, new clauses 77 to 79 will support the Government’s efforts to protect and enhance our natural environment. We are creating an obligation on water companies to go further to address nutrient pollution and clean up our rivers. That will unlock thousands of new homes, complemented by new wetland and woodland areas, improving people’s access to green space and delivering new habitats for nature. I am grateful to the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), for her support and to the Secretary of State for Environment, Food and Rural Affairs for working with us so closely to achieve these ends.

Fourthly, we recognise that some areas—Devon and Cornwall, for example—have particular problems with short-term lets, which, while attractive as a tourist industry, mean that large parts of an area have limited long-term residents, creating a real problem for local services. I am grateful to a number of colleagues for highlighting and campaigning on that. I thank my hon. Friends the Members for North Devon, for Cities of London and Westminster (Nickie Aiken), for Totnes (Anthony Mangnall), for Truro and Falmouth (Cherilyn Mackrory), for North Cornwall (Scott Mann) and for St Austell and Newquay (Steve Double) as well as others for the work that they have done. As a result of the points that they have raised, we intend to deliver a new registration scheme for short-term lets, starting with a further consultation on the exact design of the scheme, which will launch before the summer recess.

We will go even further by also consulting on a change to the Town and Country Planning (Use Classes) Order 1987 to enable local areas to better control changes of use to short-term lets, if they wish. Furthermore, the consultation on changes to use classes and the introduction of national permitted development rights to enable change of use where there is no local issue will be launched early next year.

Tim Farron (Westmorland and Lonsdale) (LD)

I am very grateful to the Minister for taking an intervention and for the time she gave me last week to discuss this matter. Can she clarify whether it is now the Government’s intention to make short-term lets a separate category of planning use following the consultation? If so, when would that come in? Will she also ensure that planning departments have the resources to enforce that?

Lucy Frazer

I am grateful to the hon. Gentleman for speaking on this issue and indeed other issues on this topic. We are committing to consulting on the issue. We propose to consult early in the new year. Following that consultation, we hope to bring in some legislation, if that is the result of the consultation. There is a very tight timetable both for that and the registration scheme, and the registration scheme will be coming through in autumn.

Rachael Maskell

Will the Minister explain why she is not bringing in a licensing scheme that would enable local authorities to determine areas where they could exclude the expansion of Airbnbs or control licences where it was appropriate to do so?

Lucy Frazer

We are bringing through a very important first step to identify where people have short-term lets across the country and where there are local issues. We know there are issues in some local areas, but not in others. We want to establish where they are and where they are causing issues for local communities, so we can make evidence-based policy and bring forward action to ensure those communities are not hollowed out, that people live there and that they can get the services they need. I emphasise that that builds on other action the Government have taken to ensure that we act and that people living in those communities get the support they need.

Fifthly, we are making the process work better. The Bill makes it easier to create new, locally led urban development corporations that can be the planning authority for large-scale development. We are also ensuring that all types of development corporation can have the planning powers they need. In support of that, Government amendments 34 and 36 make technical changes. Through Government new clause 64, we are facilitating charging by statutory consultees for nationally significant infrastructure projects. This recognises that commenting can be a resource-intensive exercise, and we do not want valuable advice to delay development. In addition, the Secretary of State will be given powers to commit the Marine Management Organisation to increase its fees for post-consent marine licensing monitoring, variations and transfers.

Our amendments focus on making the planning system, and the systems that interact with it, work better, innovating and improving for the benefit of all our constituents.

Philip Dunne (Ludlow) (Con)

Madam Deputy Speaker, I apologise for not arriving for the beginning of my right hon. and learned Friend’s remarks. On the third group of amendments, on nutrient neutrality, may I applaud the Government for the work they are doing in trying to ensure that water companies take full responsibility for their discharges into our waterways? This is an extremely important and powerful set of amendments, and I applaud her for that. In that context, and in the context of both community land auctions and the infrastructure levy, is it the case that water companies can be in receipt of both those sources of funding in the event that local authorities deem it an appropriate use either of the infrastructure levy or funds arising out of community land auctions? At present, they do not appear to be. Can they become statutory consultees on significant developments, which at present they are not?

Lucy Frazer

I am grateful for my right hon. Friend’s intervention, because I know he has done significant work on this issue. The Department for Environment, Food and Rural Affairs announced future funding from fines handed out to polluting water companies being invested in schemes for the benefit of our natural environment. I know he did a lot of work on that issue.

On the infrastructure levy, water and waste water networks are covered by the broad definition of infrastructure, so the answer to my right hon. Friend’s question on that issue is yes. On statutory consultees, the Secretary of State can make changes to the list of statutory consultees through secondary legislation, and we will consult on whether to make water companies statutory consultees, and if so, how best to do that.

Greg Smith (Buckingham) (Con)

Before the last intervention the Minister mentioned improving communities. I am grateful for the time she has spent with me in the last few weeks discussing this Bill, but will she give some clarity on amendment 2, on including childcare provision within the infrastructure definitions? Conversations with her outside this place indicate that she feels it would be included, but can she give me and the hon. Member for Walthamstow (Stella Creasy), in whose name the amendment stands, the reassurance that childcare provision would be included?

Lucy Frazer

My hon. Friend is a strong advocate for his area; I have dealt with him in a number of Departments, and he stands up for his community on every issue. I am grateful for the work he has done to make sure the Bill overall comes out in a good place, and I know he has also spoken to my colleagues on a number of issues.

On the amendment on childcare, I should emphasise that there is a list of what constitutes infrastructure for the infrastructure levy, and it is a non-exhaustive list, so it will be possible for other items to be included. It is drafted purposefully to give local authorities wide powers to apply the levy to infrastructure that is important and needed in their local area. It contains illustrative examples of what might be included as infrastructure, but in any event the levy will be able to be spent on childcare facilities such as nurseries and pre-schools, as these fall under the definition of

“schools and other educational facilities”

already included in the list.

Stella Creasy (Walthamstow) (Lab/Co-op)

I know the Minister has tried to take account of these concerns, but from what she has just said, it is not the case that childcare would, unless it is connected to a school, be considered part of this. So what amendment 2 does is set out that, whether it is a nursery, a toy library or a childminding setting, if local councils felt that was something that needed to be done, they could work with developers to deliver it. Will she make that commitment, and most importantly will she write it down? It is one thing to make a commitment at the Dispatch Box, but those of us who have dealt with local government know that it needs to be in the guidance and regulations for us to truly declare that childcare is infrastructure.

Lucy Frazer

I totally understand the hon. Lady’s points, and it is crucial that children get the support, care and education they deserve. It must be the case that nurseries and pre-schools fall within the definition of

“schools and other educational facilities”,

which is in the list at proposed new section 204N(3)(c). There is also a question about the provision of the care within that: that would not fall within the definition of infrastructure per se, but proposed new section 204N(5) allows regulations to make provision about when local authorities could apply levy money to non-infrastructure items, which could include subsidising the cost of childcare places for parents and carers if this was considered a priority by the local area.

I want to give Members across the House an opportunity to speak in this debate. We believe that our amendments focus on making the planning system, and the systems that interact with it, work better, innovating and improving for the benefit of all our constituents, and I commend them to the House.