Comment
Reforms to national planning policy – where next for the Government?
At a time of planning inertia following the consultation in December 2022 on reforms to national planning policy[1] the Levelling Up, Housing and Communities Committee’s report released today assessing the effects of the Government’s planning policy reforms makes for sobering reading.
Read the report here.
It notes that “Contrary to the Government’s objective of facilitating local plan-making, the short-term effect of announcing the planning reform proposals has been to halt the progress of local plans in many areas.”
In terms of plan-making, the report notes that “While the Government’s objective to ensure more local authorities have up-to-date local plans is laudable, the Government has not provided sufficient evidence to demonstrate how its proposed reforms will increase housebuilding to meet the national housing target by the mid-2020s. The Government has said it will publish its own analysis as part of the December 2022 consultation outcome, however this has itself been delayed from its originally anticipated publication in spring 2023.”
The report concluded that while the Government is on track to deliver one million new homes over the course of this Parliament, it is not forecast to deliver 300,000 net new homes per year by the mid-2020s. It stated that “The current affordability crisis in the housing sector and the rising cost of living makes the value of achieving this target clear to see and of vital importance.”
Following the release of the report, Chair of the Committee Labour MP Clive Betts said:
“The prospect of a major hit to the building of new homes resulting from the Government’s planning rule changes is deeply concerning, especially for people wanting to get on the housing ladder, families eager to move home, and communities crying out for affordable places to live.”
Whilst these findings will not come as a surprise to many in the development sector, it is worth considering that this is coming from a committee with a membership of a majority of Conservative MPs, reflecting the proportionality of the House of Commons.
Many Conservative MPs representing rural seats oppose development in their constituencies, and the Government was forced to scrap mandatory housing targets in December 2022 to prevent a major Conservative backbench rebellion. This means that despite the large Conservative majority, the Prime Minister is in a weak position to offer leadership to kickstart greater housebuilding numbers or restore mandatory targets (even if he wanted to).
Housing delivery has recently become a major dividing line between the Government and Opposition, as each party seeks to secure support from their core vote in the run up to next year’s General Election. With the Conservatives enduring heavy losses at the local elections in May 2023 and facing three crucial by-election tests next week, along with the polls showing consistent double digit leads for Labour, the main aim of the Conservatives at the moment is to limit the damage.
Sunak’s priority is trying to hold his fragile coalition of MPs together whilst appealing to existing homeowners, who had been a key part of the Conservative core vote but now appear to be abandoning the party. Meanwhile, Labour is seeking to consolidate its support amongst young people and those priced out of the housing market due to the decades of undersupply of new homes.
So the Labour leader has criticised the Government’s decision to scrap mandatory housing targets at Prime Minister’s Questions, claiming it is leading to the lowest level of housebuilding since the Second World War. Seeing this as an opportune area to set out a Labour policy offer that is distinctly different from the Government, Starmer has promised that Labour will “back the builders, not the blockers” and committed to restoring binding local housing targets and reforming planning.
Conversely, the Prime Minister has said he remains committed to moving away from a “system of nationally imposed top-down housing targets on local areas” and protecting the greenbelt from development. He has also highlighted the record of critical Labour MPs who have opposed developments locally.
This report will not make the Government’s choices any easier, and arguably has undermined much of what was contained within their December 2022 reform proposals.
They are now between a rock and hard place – and although we are hearing that the revised NPPF may be published in September, the ongoing impacts of the planning vacuum are being felt hard across the country and affecting the delivery of much needed market and affordable housing.
This debate will doubtless continue as the General Election approaches and both parties seek to use housing and planning issues as a way of maximising their appeal to voters.
We await with interest the Government’s response to the comments and recommendations contained within this important report.
For more information please contact Marley Bennett or Tim Burden.
14 July 2023