Matthew Pennycook
MP for Greenwich and Woolwich · Labour · United Kingdom
“It is a pleasure to serve with you in the Chair, Dame Siobhain. I congratulate the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright) on securing this debate.”
“I will address the right hon. and learned Gentleman’s specific question in due course. Before I do so, I want to put on the record the policy in relation to villages. He can rest assured that I will address the point; if he is unsatisfied, he is more than welcome to intervene again. A number of hon. Members mentioned villages.”
“I will say two things in respect to that, and I will come on to detail how the approach works in relation to decision making very shortly. In general terms, developers can make whatever claims they like about any particular site across the country; it is for the local authority to assess whether, in its view, that site constitutes grey be…”
“and learned Gentleman’s point about what is likely to constitute grey-belt land. Let me directly address his other two specific points. Is this a significant policy? Absolutely, and it has been judged as much by the Office for Budget Responsibility and other external commentators. Is it deliberate? Absolutely. We want, as the right hon.”
“Where authorities may wish to restrict development in villages for other reasons, a range of tools are available, such as conservation areas or normal development management policies. On the right hon.”
“We have to put in place policies that, through the decision-making route, allow homes still to be brought forward in that interregnum, but then we have to push heavily to drive towards universal plan coverage. At that point, the protections are in place.”
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“Gentleman about the particular issues in his constituency.”
“We need more housing in all parts of the country. We do have a brownfield-first approach, and we do want to see infrastructure delivered in a timely manner alongside housing developments, but it is absolutely right that we focus development within reasonable walking distance of train stations within settlements, or well connected stations outside settlements, including those in the green belt. As I have said, these are some of the most sustainable locations for new housing in the country. We have defined well connected stations by the 80 travel-to-work areas of the country, and we have also linked minimum density requirements to service frequency. There is a link between the number of trains that a station receives per hour and the amount of development that we want to see. However, I am more than happy to speak to the hon.”
“I recognise the strength of feeling in the House on this matter. I want to ensure that every opportunity is taken to retain homes in the social housing sector. Although housing associations remain independent organisations that are responsible for their own asset management decisions, I can assure my hon. Friend that we are exploring what further steps could be taken to protect much-needed social housing stock.”
“As I have said, there are strong protections in the national planning policy framework. It is for local authorities to decide whether exceptional circumstances exist for the release of green-belt land, and whether very special circumstances exist that would outweigh the harms involved when it comes to inappropriate development. Those safeguards remain. We are committed to preserving England’s green belts, which have served our towns and cities very well over many decades.”
“The shadow Minister, for whom I have a lot of time, knows full well that development can stall at particular sites for a variety of reasons, not least the viability pressures that we discussed earlier. We are taking action to get sites moving, and the NPPF strengthens expectations in this area. On the specific matter that he raises, primary legislation is not needed. Primary legislation was taken through by the previous Government, and we have a plan to switch on the necessary secondary legislation to ensure that we have transparency over build-out rates. He does not have long to wait for that to come forward.”
“I am always happy to meet my hon. Friend. I think that the matters in question will fall to another Minister, thankfully, but I am more than happy to join that meeting if housing issues are involved.”
“Places for People will no doubt have heard the concerns the hon. Gentleman has raised today. Social housing providers are regulated on the basis of consumer standards, and they are inspected on that basis. We have introduced Awaab’s law, which provides that landlords have to fix hazards within specified time limits. If he wants to write to me with further information about the development in question, I will be happy to look into it.”
“Homeowners should not be expected to shoulder the financial consequences of defective work. However, the case of Goodrich Mews is a challenging one, in that the legal liability appears to now lie with the resident management company. My hon. Friend knows that I have been looking into the matter for her, and I am more than happy to meet her again. I believe that my office has been seeking further information from hers, which we would be grateful to receive.”
“Is the right hon. Gentleman saying that he does not agree with minimum energy efficiency standards? Is he saying that he does not agree with a modernised decent homes standard? These measures are driving up the quality and the safety of homes, and we can do that while increasing supply.”
“It is not a blanket policy; it relates to well-connected stations. I have set out the definition, with appropriate minimum densities to go with it.”
“The Government remain fully committed to delivering nationally significant growth in Greater Cambridge. As my hon. Friend is well aware, we have established a centrally led urban development corporation to take it forward in partnership with local leaders.”
“There is no lack of ambition when it comes social and affordable housing from this Government. At least 60% of that historic £39 billion will go to social rented homes. We have delivered the highest number of council homes since records began in 1991-92. We are taking a pragmatic approach. There are social homes ready to be built by housing associations, but we will ensure that more of the funding goes to councils for direct delivery.”
“It will depend on whether the application in question meets the criteria to allow it to proceed down the Crown development route. Obviously, the applicant is separate from our Department; we are the stewards of the process and will make the determination on the basis of those criteria.”
“There is a variety of practice in the country, and we want to better understand whether local authorities are making full use of existing powers, but I reassure my hon. Friend that we keep the matter under review. We have to ensure that we are regulating HMOs properly.”
“That is precisely why we have introduced strategic cross-boundary planning through spatial development strategies— [ Interruption. ] The hon. Member says that it is not working, but it is not in place yet. We passed the Planning and Infrastructure Act last year, and it will be in place in short order. I am more than happy to have a conversation about it with her.”
“I think the hon. Lady is referring to unauthorised development. We have strengthened national planning policy in respect of intentional unauthorised development, making it harder to grant permission after the fact where there is evidence that development was carried out intentionally without permission. However, it has become evident—we have had a meeting on this subject—that we are seeing the prevalence of a more structured pattern of unauthorised development, and we are working across Government to see what more action might be taken to bear down on that.”
“I thank my hon. Friend for his question and for his support for the new towns programme. We will bring forward final decisions in short order, responding to the consultation that we undertook earlier this year, and those proposed seven new town sites.”
“The Government are committed to delivering the right homes that people need while ensuring that development is supported by the appropriate infrastructure, working in tandem with local areas. We have, as I set out today, taken bold steps to reform the planning system and to drive wider changes across the housing market to improve supply, quality and fairness. I look forward to working closely with colleagues to build a housing system that is both fair and sustainable, and to drive up the quality and indeed coverage of masterplans, particularly on strategic sites across the country. Question put and agreed to.”
“We have not shied away, however, from the fact that we do need to take forward a more strategic, targeted approach to green-belt land designation and release where that is necessary; but when local authorities have to release green belt under exceptional circumstances, we expect them to prioritise previously developed and lower-quality grey-belt land within the green belt. I am extremely grateful to my hon. Friend for securing the debate and bringing this important issue to the House’s attention. I am passionate about well-designed masterplans, which can really reduce opposition to development by convincing people that the development coming forward is infrastructure-led, well designed and sustainable.”
“Friend that the NPPF highlights the importance of conserving and enhancing landscape character, the natural beauty of the countryside and higher quality agricultural land. Local plans may designate land as local green space where that would safeguard green areas of particular value to the local community. We have also introduced a new requirement for plans to set standards for green infrastructure, defined as a multi-functional network of green and blue spaces. The Government are obviously also committed to the ongoing protection of England’s green belts, which have served England’s towns and cities well over many decades.”
“That includes about £5 billion of capital grant funding to address viability challenges across the country, including through remediation of brownfield sites and the provision of unlocking infrastructure. The fund is designed to deliver a range of interventions, including large strategic schemes as well as faster, smaller sites and viability gap projects. Its aim is to accelerate housing delivery, increase supply and support our ambition to build 1.5 million new homes in this Parliament. It sits alongside the £16 billion of financial capacity that we have available to us through our national housing bank. On landscapes and green places, again, it is important for me to say to my hon.”
“More widely, our new NPPF supports the provision of new community facilities and public service infrastructure, particularly where new development would have a significant impact on the number of people needing to use those services. The NPPF is also clear that, in planning for new community facilities and public service infrastructure, authorities should engage proactively with local communities and the relevant service providers, taking into account relevant strategies to improve health, address inequalities and foster social and cultural wellbeing for all sections of the community. At the same time, the Government are backing delivery centrally with the launch of a new national housing delivery fund.”
“Friend raised was infrastructure, the provision of which, as she made clear, communities across the country rightly expect to be delivered alongside development, rather than being an afterthought. We have been clear that while we need to build many more homes, they need to be supported by the right infrastructure to ensure that we are creating functioning places where people want to live and work. The new NPPF has strengthened existing national policy to ensure that developers and local plans deliver much needed affordable homes and the infrastructure required to support new development such as schools and GP surgeries. Through the new NPPF, we have placed a greater emphasis on up-front clarity on expected developer contributions, reducing the risk of lengthy negotiations and again providing greater certainty for communities.”
“Again, national planning policy is clear that local authorities should identify in their development plans where masterplans are necessary to achieve positive design outcomes and that they should use masterplans, where appropriate, to optimise the use of both allocated sites and smaller windfall sites. It also requires that masterplans reflect a clear understanding of local character and the wider context of an area, and should be informed by effective community engagement. We are not complacent; we want to build on what is already in place. Our draft planning practice guidance on design and placemaking, which we consulted on between January and March this year, will go even further to support local authorities to prepare effective masterplans in collaboration with communities and key stakeholders. A chief concern that my hon.”
“Friend’s point on accessibility, the new NPPF also strengthens expectations for a mix of homes and tenures on strategic sites. While it will principally shape future plan making and future site allocations, it does, I hope, demonstrate this Government’s direction of travel, ensuring that large-scale developments are planned comprehensively, supported by timely infrastructure and capable of being well-designed, sustainable places even where a stand-alone masterplan is not in place. However, I understand my hon. Friend’s concerns in the context of her draft local plan being assessed under the old framework, not the new one. I want to touch briefly on design and infrastructure. I absolutely agree with my hon. Friend about the importance of providing a long-term vision to guide the delivery of well-designed, large-scale development.”
“Friend raised, the new NPPF that we published on 17 August has strengthened national planning policy in this area for future plans and sites, including by introducing a definition of what is called a strategic site—a site of at least 1,500 dwellings, most often to be delivered in multiple phases, and that has significant infrastructure requirements. Through that NPPF, we have set clear expectations that such development should come forward in suitable locations, be supported by necessary infrastructure and facilities, address strategic environmental opportunities and—I quote from the glossary—“require a masterplan.” Going forward, we require a masterplan for any strategic site of over 1,500 units to be taken forward. To my hon.”
“Delivering at scale does provide opportunities for comprehensive development where homes, infrastructure, green space and community facilities can be planned together from the outset. National planning policy has long required local plans to take this joined-up approach, including by setting out the infrastructure needed to support growth and clear expectations for the quality of places to be created. That includes using design tools such as masterplans and design codes where they are needed. In response to the specific points my hon.”
“It is important that for those key sites where a local authority wants to see a masterplan in place, they are incorporated into plans. They can also be produced as part of the development management process to support the delivery of larger site allocations. In the new national planning policy framework that we published on 17 August, we included new policy—policy L1, for those who are interested—which encourages the use of masterplans, where appropriate, to optimise the use of site allocations. We included this in response to consultation feedback. My hon. Friend made a number of specific points in the context of her concerns about the BL1 site about large-scale residential development and the importance of master planning to ensure the best outcomes for communities, and I very much agree with her about the benefits.”
“Of course, it is for the inspector to ensure that the plan is in conformity with national policy, which has always been clear that local plans should identify the infrastructure necessary to support the delivery of the local plan, providing certainty and better outcomes for communities, businesses and developers. I want briefly to mention the interaction between design guides, codes and masterplans and local plans. My hon. Friend is absolutely right that local planning authorities can identify and prioritise where design guides, codes and masterplans are produced and can make provision for their adoption as supplementary plans. There is no requirement for them to be adopted as part of the development plan, but where they are incorporated into development plans, they are afforded more weight on that basis.”
“Friend will know that the emerging Stoke-on-Trent city council local plan is undergoing the regulation 19 consultation, and I encourage her and her constituents to engage meaningfully with that process, if they have not already done so, to ensure that any specific concerns are understood by the authority even at this advanced stage. Anyone who has submitted a representation during the consultation on the draft plan may make a request to be heard by the inspector during the examination. Once submitted for examination, it will be for the independent inspector to examine the plan and the proposed site allocations to ensure that they are legally compliant and sound.”
“They enable local areas to set the strategy for future growth and the approach to protecting and enhancing the environment, and they provide the certainty and confidence required to bring development forward across the country. In the absence of an up-to-date local plan, there is a high likelihood that development will come forward on a piecemeal and speculative basis, as my hon. Friend mentioned, with reduced public engagement and fewer guarantees that it will make the most of an area’s potential. That is why the Government remain determined to drive local plans to adoption as quickly as possible in order to achieve our ambition of universal plan coverage and to ensure that plans contribute positively to increasing rates of house building and infrastructure delivery. My hon.”
“Friend’s comments, both today and previously, in respect of the BL1 green-belt site in Lightwood that is identified in the draft local plan, I know she is cognisant of the fact that I cannot comment on specific local plans, sites or planning applications, due to the quasi-judicial nature of the planning process, but I will make some general points that I hope will be of use. I start with plan making. The plan-led approach is, and must remain, the cornerstone of our planning system. The benefits of an up-to-date local plan are significant and well known across the Chamber. Local plans are the best way for communities to shape decisions about how to deliver the housing and wider development that areas need.”
“I congratulate my hon. Friend the Member for Stoke-on-Trent South (Dr Gardner) on securing this important debate. I commend her for the compelling argument she makes about the importance of planning effectively for large-scale residential developments to ensure that they are well-connected, well-designed, sustainable and attractive places where people want to live, with all the infrastructure, amenities and services needed to sustain thriving communities. While I note my hon.”
“I am pleased to say that initial guidance has now been published by the Ministry of Housing, Communities and Local Government, the Department for Environment, Food and Rural Affairs, and Natural England to support the implementation of the first EDPs. The guidance sets out the key steps for NRF users and explains the core operational processes that will underpin the NRF system. We will continue to work with stakeholders to identify further areas where guidance might assist as we work to roll out the NRF. To conclude, the regulations will support the effective implementation of the NRF by ensuring that the levy operates effectively, transparently and fairly so that we can build the homes and infrastructure our country needs while improving our natural environment for future generations. I commend the regulations to the Committee.”
“I am also aware of concerns regarding the potential impacts of EDPs on development viability. I want to make it clear, however, that we have put in place important safeguards to protect developers who choose to use the NRF from unjustified costs. Public consultation and rigorous Secretary of State scrutiny of each EDP will ensure that proposed levy rates are carefully considered before any EDP is made. It is also worth reiterating—we debated this issue at length in Committee—that in almost all cases EDPs will be voluntary and developers will have the option to meet obligations through existing routes if they do not believe that discharging their obligations through the NRF represents good value for money. Although the levy regulations are a key part of the new system, we recognise that users will need proper support to navigate the NRF.”
“At times during the passage of the Planning and Infrastructure Act, concerns were expressed that funds collected through the NRF might be diverted to pay for other, unrelated priorities. I assure hon. Members that the draft regulations will ensure that levy funds can be used only for the delivery of the conservation measures set out in the relevant EDP and for the administrative expenses connected with that EDP. Clear reporting requirements on how levy receipts are spent will further enable the NRF to operate transparently and with appropriate scrutiny. I stress that levy receipts are subject to a statutory ringfence and must be used to deliver the EDP for which they were collected. Only costs reasonably attributable to that EDP can be funded through levy income.”
“The purpose of the nature restoration levy is to enable the delivery, management, maintenance and monitoring of the conservation measures identified in the relevant EDP. The draft regulations therefore provide clear safeguards to support the effective delivery of such measures. They ensure that payments from developers are sufficient to meet the costs of the relevant conservation measures, are properly recovered in a timely manner, and are aligned with the commercial realities of development. Levy rates will be set through individual EDP charging schedules, which will form part of the EDP, which is consulted on. Those charging schedules will be based primarily on the cost of delivering the conservation measures needed to materially outweigh the development impacts.”
“Where an EDP is in place, developers will have the option to pay the nature restoration levy to discharge the relevant environmental obligations that the EDP covers. That levy is the subject of the draft regulations that we are considering. The draft nature restoration levy regulations set out how the levy mechanism will work in practice. They will provide the statutory framework for key elements of the levy’s operation, including how liability to pay the levy may be assumed, imposed or transferred, and they explain how the amount of the levy will be calculated, when payment will be due, and the enforcement mechanisms available to Natural England when obligations are not met.”
“EDPs will be developed by Natural England, the Government’s adviser in respect of the natural environment, and will demonstrate how the proposed package of conservation measures delivered by the EDP will materially outweigh one or more impacts of development on a protected site or species. Those conservation measures will then be deployed by Natural England where they will have the greatest environmental benefit. Each EDP will be subject to public consultation, providing an opportunity for stakeholders to scrutinise the evidence presented by Natural England before an EDP can be made. At the conclusion of that process, the Secretary of State will consider whether the EDP meets the overall improvement test established under the Act before they formally make the EDP.”
“Relevant clauses of the original Bill were strengthened in a number of important ways during its passage to provide further reassurance that the fund will deliver the improved outcomes for nature that are at the core of the model. It would not be appropriate to relitigate the lengthy debates that took place in the Bill Committee, but I take this opportunity to emphasise that strong safeguards were built into the 2025 Act to ensure that the fund will restore, not harm, nature. Those include a binding overall improvement test, monitoring and back-up measures, remedial action and the ability to amend or revoke plans if necessary. Shifting to a strategic approach requires positive planning, which is why the creation of environmental delivery plans sits at the heart of the model.”
“The purpose of the NRF is simple: to end the current suboptimal approach to discharging environmental obligations, in which developers are required to pay for localised and often costly mitigation measures, only to maintain the environmental status quo; and to replace that with a more strategic approach that will streamline delivery of new homes and infrastructure, while efficiently delivering improved environmental outcomes by leveraging economies of scale and reducing need for costly project-level assessments. As hon. Members are aware, the core principles and purpose of the NRF were subject to extensive scrutiny by both Houses.”
“I beg to move, That the Committee has considered the draft Nature Restoration Levy Regulations 2026. It is a pleasure to serve with you in the Chair, Sir Alec. The draft regulations were laid before the House on 18 June. When it comes to development and the environment, this Government have been clear that we want to unlock a win-win for the economy and for nature. To that end, we legislated through the Planning and Infrastructure Act 2025 to introduce a nature restoration fund that will unlock and accelerate development, going beyond simply offsetting harm to unlock the positive impact that development can have in driving nature recovery.”
“Environmental groups, local residents, local authorities and developers will each have a say on the particular levy being consulted on. That gives the public a chance to have input into what is taken forward.”
“The important point to convey to the Committee is that each EDP will be subject to public consultation. In line with the commitment we made in the other place, we have been working for many months with Natural England and DEFRA on the first EDP, which deals solely with nutrient pollution; we thought that was the best constraint to take the first EDP forward on. In bringing forward an EDP, Natural England will have to project and estimate the maximum amount of development that that EDP can cater for and set a levy rate based on what is necessary to deliver the conservation measures required to discharge and meet that overall improvement test; I will come back to that in a second. Natural England will set a levy for each individual EDP. That will be subject to public consultation.”
“Those include promoting nature conservation and protecting biodiversity. We think that Natural England is the appropriate body. It will be supported to take strategic action to deliver the conservation measures set out within individual EDPs, using income from the nature restoration levy. This is a really important point: the levy is based on full cost recovery. As I made clear in my opening remarks, the levy can be used to support administrative duties tied to the EDP, but is primarily to fund conservation measures that EDPs will bring forward, on a full cost-recovery basis. The regulations also enable targeted use of levy funding to cover management, maintenance and other things. That will enable Natural England to build and maintain the capacity and capability needed to design, implement and monitor EDPs effectively.”
“I thank both my hon. Friend the Member for North East Hertfordshire and the shadow Minister for those questions. Let me deal with them each in turn. It may be useful if I set out in plainer terms how an EDP will be made and how the levy will be set. The shadow Minister asked first about Natural England capacity. We debated that at length during the passage of the Bill: we believe that Natural England is the appropriate delivery body for the NRF, given its internal expertise and ability to operate effectively across the whole of England. It is also worth saying that when carrying out its functions under the nature restoration fund, Natural England remains bound by its wider statutory duties and general purposes, as set out in the Natural Environment and Rural Communities Act 2026.”
“I have covered whether the levy funds are not required to meet costs in full. My hon. Friend the Member for North East Hertfordshire raised the absence of a legal route to exit a commitment if circumstances change, but we have designed the draft regulations to accommodate the changing circumstances that developers might face. The regulations allow for levy-related commitments to be cancelled in specified scenarios, ensuring that the system can respond when a development does not proceed as anticipated. That reflects a proportionate approach to provide certainty for Natural England in delivering the necessary conservation measures, while recognising that plans can change over the lifetime of a development.”
“In the very near future we will launch the consultation on the first EDP, which is on nutrient neutrality. Before an EDP can take effect, local authorities, environmental groups and others will have a chance to scrutinise it in its entirety. Natural England must then consider the consultation responses before finalising the EDP and the Secretary of State retains statutory oversight through the approval of the EDP itself and whether it meets the overall improvement test. I do not want to relitigate the extensive debates in Committee, but that overall improvement test is the test that must be met. In the case of the first EDP that we bring forward, it will be the DEFRA Secretary of State who makes the judgment on whether the EDP is to be made following consultation.”
“That allows the levy rate to change to meet the cost of the EDP, in line with the overall improvement test, but it does not require reconsultation in all circumstances. We would not want a wholesale public consultation on minor changes to the levy rate; when there are significant changes, the Secretary of State has the power to do that. The levy rate for developers is set at the point where Natural England accepts the commitment to pay. If the levy rate subsequently needs to be increased to ensure that the required conservation measures can be delivered, the new rate will take effect only for future requests made to the EDP. In terms of independent oversight, EDPs will not be black-box exercises; as we said, they are subject to public consultation.”
“I am sure that developers will start to make better use of the scheme. Let me address the points that my hon. Friend the Member for North East Hertfordshire raised, including on changing the levy without consultation. The Planning and Infrastructure Act 2025 sets out the circumstances where reconsultation on an EDP is required, such as where new conservation measures are proposed or the amount of development coverage is increased. There are a couple of scenarios where that might work. Say the projected development of homes or infrastructure increases; there might be a need to amend the EDP. Alternatively, additional conservation measures might be required. Under the powers in the Act, the Secretary of State may direct Natural England to reconsult when there are changes to the EDP’s charging schedule.”