Twelve key structures

The Bill contains a number of "structures" and "tools" spilt into 13 parts with the aim of addressing entrenched geographic disparities across the UK.

It has already been criticised as being "too far reaching", "lacking details and ambition" and allowing too much "self-regulation" but no one can doubt its desire to tackle issues comprehensively.

Part 1

Attempts to create a statutory framework for the setting, reporting on and review of levelling up. This ranges from health and wellbeing, transport, digital connectivity and devolution.

Alongside this come extensive changes to the planning and environmental regimes. Even in an amended form, if and when enacted, this will comprise some of the most far reaching changes to the local government landscape that we have seen over the last 40 years.

Part 2

Considers local democracy and devolution introducing a new model - the combined county authority.(“CCA”),

Comments have been made about ensuring sufficient power is actually devolved to enable change and several questions have been asked:

• Are the right decisions on delivery being made at the right level and by whom?
• Should a mayor be able to have local authority functions conferred on them without the consent of all the participating local authorities?
• What will be the level of accountability of the new CCA
• Should the Secretary of State (“SoS”) be able to override local plans and adopt a development management policy without appeal? The LGA have identified this as an area of concern where more engagement within the Sector is required,
• Should an appropriate authority be able to apply to the SoS for planning permission for crown land where the development is seen to be of national importance?

Governance and function remain to be considered and debated in further detail.

The LGA supports amendments suggested by the Lords to prevent a CCA becoming dominated by one of its constituent members.

Part 3

Brings extensive reform to the planning system with more emphasis being afforded to the development plan which no doubt will be considered in the context of the purposed Investment Zones.

The Lords have identified an opportunity to address instruments to deal, in greater detail, with the provision of social housing and establishing financial clarity.

There may well be further amendment around the national development policies with more emphasis on local plans.

The LGA believe local plans should take precedence.  However, if the current proposal remains unchanged, they stress that flexibility must be built in to allow Local Authorities to respond to local circumstances.

Digitalisation

The planning system is to be digitised, there is also a concept of "street votes".

Questions around this include:

• Does the development meet prescribed requirements?
• Should there be a referendum?
• The Lords have indicated that this needs to be looked at in detail.

The LGA supports the guidance being produced to resolve conflict between a street vote and a development plan.

As with the majority of the Bill, Statutory Instruments will need to be introduced to add further detail and operational clarity.

Enforcement

Local Authorities are to have enforcement powers increased to act against unreasonably slow development. The LGA support this proposal and would welcome enabling Local Authorities to charge full Council Tax for every unbuilt development from the point the original planning permission expires.  In addition, the LGA comment that it should be easier for Local Authorities to use Compulsory Purchase Order powers to acquire stalled housing sites or where there is constant delay.

The LGA has urged Government to urgently resolve Permitted Development Rights primary due to the loss of circa 18,000 affordable homes.

The Bill doesn’t however address the critical issue that planning teams are presently often significantly under resourced and under ever increasing pressure.

Part 4 - The non-negotiable infrastructure levy

Proposes to introduce a locally set non-negotiable levy, local authorities will be able to set different rates according to the nature of the development.

The effect of the levy will enable, when fully introduced, a partial replacement of S106 (still to be determined) and in time on a “test and learn” basis to replace CIL (with the exception of Mayoral CIL in London).

How will the Act address the concern of developers that the idea of a non-negotiable levy is unviable?

The Lords will "test" how the various elements work and seek to address contradictions.

The LGA support the intention to reform the Land Compensation Act (1961) to diminish “hope value” and allow Local Authorities to purchase land nearer to the market value.

The technical consultation closed on 9 June and sought responses on the details to be delivered through further regulations, including the scope of the levy, types of infrastructure and forward funding, use of S106, rates/charging/payment of the levy, affordable housing and exemptions.

The outcome of the technical consultation on the new levy is expected to be published in the coming months. Initial indications suggest the delivery of affordable housing is a major concern, notably the NHF has raised serious concerns about the ability of the levy to deliver affordable housing at the levels the country needs, and that it risks a significant reduction in the delivery of affordable housing. This concern is echoed by the LGA who has called upon Government not to introduce the levy as proposed. We look forward to reviewing the formal consultation response.

Part 5

Will deal with community land auction pilots.

Part 6

Will involve a significant overhaul of environmental legislation, in particular the setting by the SoS of “specified environmental outcomes” and to require environmental outcome reports.

Part 7

Will require the Water Industry to address nutrient pollution arising from waste water by 2030. The extent of scrutiny of the legislation needs to be robustly tested.

Part 8

Will reform development corporations to locally led urban development corporations which, together with digitised planning, Investment Zones, town development corporations and devolution, should enable a comprehensive zoned planning system to start to take shape. This will be supported by changes to the compulsory purchase powers in Part 9 with the aim to help speed up regeneration.

Part 10

Will look at the protection of high streets, auctions of properties or re-lettings, giving Local Authorities power to step in, when a unit has been vacant for at least one year or for 366 days within the previous two year period.

Some have commented that it is a missed opportunity to pick up more recommendations from the two Grimsey reviews.

Part 11

Seeks to tackle transparency around land ownership and the provision generally of information relating to land dealings.

Part 12

Looks at "tidying up" other legislation at the edges of the main aims of the Bill, such as short term lets. The question remains how will this impact on the loss of homes from the rental sector?

In Summary

The LGA are seeking an amendment to ensure, that demographic disparities are also addressed as part of the levelling up agenda.  In addition there is concern that the proposed risk mitigation measures in clause 74 potentially give the SoS too much leeway to intervene. They believe full engagement and consultation should take place prior to enacting these Regulations including preserving the key concerns of prudent of whilst addressing genuine concerns

There is clearly a considerable way to go with all the elements detailed in the Bill to ensure they function as intended and deliver the changes and benefits so urgently required

How Capsticks can help

We will be keeping close to the Bill as it makes its way through the next stages and commenting on the changes. It would be really helpful to have your views on what is key in terms of changes and comments generally on what is provoked. If you want to take part in discussions or comment generally please contact Tiffany Cloynes and Suzanne Smith.