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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“Clause 90 amends the power to take temporary possession of land under the Neighbourhood Planning Act 2017. Promoters of major infrastructure have indicated that their current consenting regimes provide flexibility for the taking of temporary possession of land, and should the 2017 Act power be commenced, that flexibility would be taken away. The clause sets out that the power for acquiring authorities to take temporary possession of land by agreement or compulsion under the 2017 Act does not apply in respect of: first, other express temporary possession powers provided for by other Acts; secondly, development consent orders made under the Planning Act 2008, and infrastructure consent orders made under the Infrastructure (Wales) Act 2024; thirdly, orders made under the Transport and Works Act 1992.”
“Clause 90 accordingly ordered to stand part of the Bill . Clause 91 Amendments relating to section 14A of the Land Compensation Act 1961”
“In certain cases, the 2017 Act will—inadvertently, to be fair to the previous Government—prevent the powers from being used to enable major infrastructure regimes. We want those infrastructure regimes to continue under the current legal provisions granted to them for the taking of temporary possession of land, so we think it necessary to amend the temporary possession powers introduced through the 2017 Act: to disapply them for the consenting regimes I set out, to ensure that, when commenced, the 2017 provisions operate as intended and that this does not frustrate major infrastructure coming through the other consenting regimes. I do not think I can be clearer than that. The clause is fairly straightforward and simple, but I am more than happy to take away the shadow Minister’s points about guidance. Question put and agreed to.”
“It is important to make one point about the Neighbourhood Planning Act 2017, and then to reiterate the purpose and effect of the clause. The temporary possession powers in the Neighbourhood Planning Act 2017 still need to be commenced. Before commencing those provisions, the Government must consult on regulations relating to the reinstatement of land, subject to a period of temporary possession. The commencement of the 2017 Act temporary possession powers is an important reform, to which the Government are committed. However, scoping of the work required to prepare the necessary consultation and draft regulations is still under consideration. The clause is an important tidying-up measure, although I will reflect on whether we can do more through guidance to ensure that the process is as clear as possible for those participating in it.”
“This Government, like the previous Government, are well aware of the need to meet the public interest test so that use of the power does not fall foul of article 1 of the first protocol of the Human Rights Act 1998, in a true, broader application. That is why the public benefit test is important and needs to be judged on a case-by-case basis. Seeking to expand the use of the power beyond that test, and apply it much more widely, is problematic.”
“Sympathetic as I am to the greater use of hope value—mayors and local authorities around the country read Hansard closely, so I stress that the Government very much want an acquiring authority to utilise the powers in the Levelling-up and Regeneration Act—I cannot accept the amendment because its principal objectives can already be achieved with the existing direction power. That power has similar effects but, importantly, requires affordable housing to be part of any scheme reliant on CPO powers. We therefore do not believe that the amendment is required. If the hon. Member for North Herefordshire wants to respond we can have an exchange on this point, but the power in question is used on a case-by-case basis according to the public interest.”
“I will first respond to amendments 2, 86 and 87, then speak to clause 91 stand part, and finish by touching briefly on proposed new clause 108. Amendment 2 was moved by the hon. Member for North Herefordshire. As she set out, it would amend clause 91 to expand the power, introduced by the Levelling-up and Regeneration Act 2023, for CPOs to be confirmed with directions removing hope value. The amendment proposes expanding the direction power to CPOs that are delivering housing targets set out in their local plans. The Government agree that there is a need to address issues around the payment of hope value, but I am unable to support the amendment.”
“It is therefore absolutely right that we do not attempt—as the right hon. Lady clearly does, if not the shadow Minister—to remove it from the statute book.”
“In essence, the new clause would remove the power introduced by the Levelling-up and Regeneration Act 2023, which allows acquiring authorities to take forward certain types of scheme by compulsory purchase and to pay a reduced value for land where it will deliver clear and significant benefits and is justified in the public interest. I disagree with the reforms made by Baron Gove—I think that is now the correct terminology—in a number of areas. He tainted his record in my Department very late on in the previous Government by abolishing mandatory housing targets under pressure from the so-called planning concern group, the ringleaders of which all lost their seats in any case. He did, however, introduce a number of very valuable reforms, one of which is that reform to CPOs.”
“As I have said, it must be used only where negotiations to acquire land by agreement have failed, and where there is a compelling case in the public interest. To deliver the homes and infrastructure we need, we must look to unlock land in the right places. These clauses ensure we have the correct tools to realise that. Briefly, new clause 108, tabled by the right hon. Member for Louth and Horncastle, seeks to repeal section 14A of the Land Compensation Act 1961, which provides the power for CPOs to be confirmed, with directions removing hope value where justified in the public interest. For that reason, I understand why the shadow Minister has at the last moment hesitated to speak to it.”
“That provides for the consistent application of the principles for the assessment of the market value of land where CPOs are confirmed, with directions removing hope value. It also ensures that the compensation regime does not deliver excessive compensation where compulsory purchase is used to deliver benefits in the public interest. I again make it clear that these reforms are not about targeting farm owners or any specific types of land or landowner. Neither do the clauses seek to change—returning to the point made by my hon. Friend the Member for Basingstoke—the core principles of compulsory purchase, which remain. There is nothing in the Bill that changes the core principles of compulsory purchase.”
“That will allow parish or community councils, when seeking to deliver affordable housing in their areas, to acquire land without paying hope value compensation—again, when a direction removing hope value is justified in the public interest demonstrably and clearly. The change is intended to increase the viability of such schemes to deliver more affordable housing, which these communities desperately need. Lastly, the clause amends the legislation to ensure that when CPOs are confirmed with directions removing hope value, the directions apply not only to the assessment of market value of land taken but to loss payments where the assessment of market value is a relevant factor. That makes it clearer that hope value will be removed from all heads of claim where market value is assessed.”
“CPO guidance published by my Department sets out criteria that the Secretary of State will consider in deciding whether to delegate confirmation decisions to inspectors. The updated CPO guidance, reflecting the Government’s policy, will be published when we implement the Bill’s reforms following Royal Assent. The changes will speed up the decision-making process for CPOs with directions removing hope value and ensure that the process is more efficient and effective. Secondly, clause 91 extends the power for CPOs to include directions removing hope value to CPOs made on behalf of parish or community councils under section 125 of the Local Government Act 1972.”
“Clause 91 makes amendments to the power introduced by the Levelling-up and Regeneration Act, which we have just been debating, that allows authorities to include in their CPOs directions the removal of hope value from compensation, when that is justified in the public interest. First, the clause amends the Acquisition of Land Act 1981 and provides that CPOs made with directions removing hope value may be confirmed by acquiring authorities where there are no objections to the relevant CPO. Alongside that reform, the Government intend to publish updated CPO guidance to make clear their policy that the power for inspectors to be appointed to take decisions on CPOs under the 1981 Act can be used for CPOs with directions removing hope value.”
“Affordable housing, education and health are types of public sector-led development where the public benefits facilitated through the non-payment of hope value can be directly demonstrable to local communities. The Government have concerns that the provisions would be less compelling for sporting and recreational facilities. The proposed changes could make it difficult for authorities to justify directions removing hope value in the public interest, as the benefits to be delivered would be less clearly identifiable. The Government are therefore unable to support the amendments. I turn briefly to clause stand part.”
“The amendments propose to extend the types of CPOs for which directions removing hope value may be sought to CPOs providing provision of sporting and recreational facilities. The amendments also seek to introduce a change so that CPOs that provide sporting and recreational facilities would not have to facilitate affordable housing provision when seeking directions removing hope value. While the Government recognise the value of parks and playing fields to our communities—we could all give our own examples of how much they are cherished and loved—we are unable to support the amendments. As I have said, the non-payment of hope value to landowners through the use of CPO powers must be proportionate and justified in the public interest.”
“Although we have commenced the Levelling-up and Regeneration Act provisions only this year, to date no acquiring authority has used them; I suspect that is partly from the usual hesitancy about being the first mover and partly about ensuring that there are sufficient skills in the acquiring authority to use it. But the Government are very clear: we do want an acquiring authority, where appropriate, to make use of the power, although we cannot draw it more widely for the reasons I have given. I turn to amendments 86 and 87. The amendments seek to amend clause 91 and expand the power introduced by the Levelling-up and Regeneration Act for CPOs to be confirmed with directions removing hope value.”
“Trying to draw the power too widely would fall foul of human rights legislation and we would not be able to use it in any case. That is why it has to be targeted at schemes that deliver in the public interest. That will be judged on a case-by-case basis. The Government also have concerns that amendment 2 could introduce a change that could make it difficult for authorities to justify directions removing hope value in the public interest. We think that it could make the benefits delivered through use of the existing direction power less clearly identifiable and problematic for those reasons, so I will not be able to accept the amendment, although, as I say, I am sympathetic to the use of the direction in clear instances when a public benefit is at stake.”
“I absolutely can confirm that. If the hon. Member is interested, that was set out in the extensive debates on that power during the Levelling-up and Regeneration Bill Committee. The public benefits to which the direction can apply are very clear: transport schemes but also affordable housing schemes. However, it would be judged on a case-by-case basis whether the amount of affordable housing provided, in each instance, was sufficient to meet that public benefit test. The important point that I need to make is that the reference to the provision of affordable housing and other benefits is an important safeguard, to ensure that directions removing hope value could meet the public interest justification test and ensure that the use of the power would be compliant with human rights legislation. That is really important.”
“It has been pretty dry going this morning on these clauses. For the purposes of entertaining the Committee, I just want to make sure I have understood the shadow Minister.”
“The Opposition are at liberty to change their position on any policy that the previous Government introduced, but they do not want to change policy in this area as they believe that the power is proportionate and necessary. However, the right hon. Lady still tabled the new clause to signal that they may be willing to come back to it at some point. Is that broadly right?”
“Clause 92 also amends the decision-making process for directions for the payment of additional compensation under schedule 2A to the Land Compensation Act 1961 where an acquiring authority has not fulfilled the commitments it relied on when it obtained a direction allowing it to acquire the land without hope value. The clause introduces a power for the Secretary of State to appoint inspectors to take decisions on applications for additional compensation. This will ensure that the process for considering applications for additional compensation is more efficient and consistent with the approach set out in clause 91, which allows for the delegation of decisions on CPOs. The clause will make the authorisation process more efficient, resulting in quicker decisions.”
“Clause 92 amends the process for the confirmation of CPOs made under the New Towns Act 1981. Decisions to confirm CPOs made under the Acquisition of Land Act 1981, such as housing and planning CPOs, can be made by inspectors on the Secretary of State’s behalf, but currently, confirmation decisions on CPOs made under the New Towns Act must be taken by the relevant Secretary of State. Clause 92 introduces a power for confirmation decisions on CPOs made under the New Towns Act to be delegated to inspectors, although the Secretary of State will retain the ability to recover decisions for their determination. This change will ensure the decision-making process for CPOs facilitating new towns is streamlined and consistent with the confirmation of other CPOs.”
“In that regard, it is important to note that the timescales between the confirmation of a CPO with a direction removing hope value and the determination of an application for additional compensation will vary in each case. As such, it may be impractical for the inspector who considered the original CPO with the direction removing hope value to determine the direction for additional compensation, so we need that flexibility.”
“If the shadow Minister will allow me, I will come back to him in writing on the specific point of how the Government will ensure that the relevant inspector has the correct skillset to make the necessary decisions. I think it is probably worth making two other points. First, how will the delegation of decisions to inspectors on CPOs made under the New Towns Act 1981 be considered? The appointment by the Secretary of State of an inspector to make the decision on a CPO made under the 1981 Act will be considered against the delegation criteria published in the Government’s guidance on the compulsory purchase process. Secondly, there is the important question of whether the decision on an application for additional compensation will be delegated to the same inspector who considered the original CPO with the direction removing hope value.”
“I note the point that the hon. Gentleman is making. I will not comment on the specific case he raises, but I am keen to provide him with as much reassurance as possible about the skillset of inspectors, and that skillset being directly applicable to the types of cases they will be looking for in terms of compensation. On the practical considerations around the timescale of the process and other issues he has raised, I am more than happy to set that down in writing to him. Question put and agreed to. Clause 92 accordingly ordered to stand part of the Bill. Clause 93 Reporting on extra-territorial environmental outcomes Question proposed, That the clause stand part of the Bill.”
“This is to ensure that the new system of EORs can comply with, among other things, the UK’s obligations under the Espoo convention, which requires signatories to consider the potential transboundary impact of development. This measure will ensure that, as the Government progress with developing the new system of EORs, they will have sufficient powers to ensure the new system can adequately fulfil all our international obligations.”
“As the Government move to bring forward the new system of environmental outcome reports that will replace the EU processes of environmental impact assessment and strategic environmental assessment, it is necessary to make a minor amendment to the original drafting to ensure the new system can comply with relevant international obligations. Environmental outcomes reports provide the opportunity to streamline the assessment process while securing better outcomes for nature, but it is vital we start this journey with the right powers. Clause 93 amends the power to specify environmental outcomes to ensure they can relate to areas outside of our national jurisdiction.”
“I will come back to the hon. Member on that point in writing, because it is important that I am precise on it. Obviously a series of obligations stem from the trade and co-operation agreement, and they are set out. This clause specifically attempts to ensure that the new system of EORs—legislated for through the Levelling-up and Regeneration Act 2023—can, once it is brought into force, function in a way that is compliant with all our international obligations. I think members of the Committee would very much support that being the case. I commend the clause to the Committee.”
“In speaking to the clause, I stressed that the purpose is to ensure that the new system of environmental outcomes reports introduced by the Levelling-up and Regeneration Act, which this Government are committed to proceeding with, is compliant with all our international obligations. I mentioned, for example, the Espoo convention. The UK is party to that convention, and thus all development must consider whether the project will have likely significant effects on the environment in other states that are also party to it. I understand the shadow Minister’s points, but this is a non-controversial clause that simply ensures that once we bring the new system into force, it is compliant with all our international obligations.”
“We want to ensure that the new system that replaces the EU-derived existing assessment regime is compatible with our international obligations, and nothing more. Question put and agreed to. Clause 93 accordingly ordered to stand part of the Bill.”
“We value the hon. Gentleman’s expertise and insight. I would say two things. It is worth clarifying—apologies if I gave the impression otherwise—that it is for the upper tribunal to determine compensation cases, but I reassure the Opposition that when it comes to inspectors and their role in the CPO process, they have the necessary skillset. I will provide further reassurance on that point. To the hon. Gentleman’s point on the Espoo convention, although I do not want to answer for the shadow Minister, it is right that, while the convention is not EU-derived, the new system of EORs will replace the EU-derived processes of EIAs and SEAs. I think that is the point that the shadow Minister was making.”
“Should access be unreasonably prevented, promoters will be able to apply to a justice of the peace for a warrant to use force to enter the land and carry out the surveys required. The use of force that may be authorised by a warrant is limited to what is reasonably necessary to exercise the power conferred by the provision. The new clause is an important step change in speeding up the preparation stage of applications for development consent and ultimately the delivery of nationally significant infrastructure projects. It will come into force when the Secretary of State introduces the associated regulations.”
“While that is regrettable, it should not come at the cost of delaying the delivery of the critical infrastructure that this country needs. In this new clause, I am making changes to provide a more efficient route to accessing land to carry out surveys for promoters of nationally significant infrastructure projects. These align with rights already available to, and often used by, DCO applicants under the Housing and Planning Act 2016. The changes will give authorisation to promoters to access land on the premise that sufficient notice is given to landowners and occupiers, with regulations to be made requiring the specific information to be contained in that notice.”
“I beg to move, That the clause be read a Second time. At present, we know that it is taking too long for promoters of nationally significant infrastructure projects to prepare applications for development consent that are robust and ready for examination. Part of the reason is the time it is taking for promoters to gain access to the land to carry out surveys to understand its condition and status, to inform their assessments of the project’s environmental impact. The Government remain committed to ensuring that applicants and landowners reach agreements privately on when land can be accessed and on any compensation necessary as a result of activities carried out by the promoter when surveying the land. However, we appreciate that such agreements cannot be made in every circumstance.”
“In general terms, however, we absolutely want in the first instance for applicants and landowners to be able to reach agreements. We think that this power is required and proportionate for circumstances when that does not take place.”
“When exercising the power conferred under section 53(1), authorised persons are required to provide the owner or occupier of the land with at least 14 days’ notice of their entry. Regulations, to come forward in due course, will specify certain information that the notice will contain. That information will include details of the negotiations that have been held regarding the entry, full details of the surveys to be undertaken and the rationale for undertaking them, and evidence that the surveys are required in connection with the NSIP in question. To the points made by the hon. Gentleman, I say that access is required for specific purposes, notice will have to be given and regulations will be forthcoming that provide further details.”
“I appreciate the reasons why the hon. Gentleman has raised those points; I have a couple of points that may provide him with reassurance. The provisions in section 53 will allow authorised persons to carry out surveys required in connection with the preparation of environmental assessments and habitats assessments. The entry powers being sought are for a very specific purpose. As I said, the Government strongly advocate that applicants and landowners should first reach agreements privately when access is required. The problem that the new clause is trying to address is that that does not always happen. We want to ensure that, when necessary, there is a mechanism for applicants to be able to access land and carry out the requisite surveys.”
“Brought up, and read the First time. Question put, That the clause be read a Second time.”
“New Clause 44 Applications for development consent: removal of certain pre-application requirements “Omit the following sections of the Planning Act 2008— (a) section 42 (duty to consult); (b) section 43 (local authorities for purposes of section 42(1)(b)); (c) section 44 (categories for purposes of section 42(1)(d)); (d) section 45 (timetable for consultation under section 42); (e) section 47 (duty to consult local community); (f) section 49 (duty to take account of responses to consultation and publicity).”— (Matthew Pennycook.) This new clause omits sections of the Planning Act 2008 which currently require a person who proposes to apply for development consent to consult particular people about the proposed application, including prescribed bodies, local authorities, the local community and persons with an interest in the land in question.”
“Officials in my Department will continue to work with stakeholders and practitioners to refine the new process, and to ensure it delivers efficiencies and better supports the delivery of infrastructure across the country. Question put and agreed to. New clause 42 accordingly read a Second time, and added to the Bill.”
“As such, there will be no impact on existing DCOs that are considering change applications in the immediate term, while the Government develop the new process alongside industry stakeholders. Transitional provisions will be included in the revised regulations to ensure an efficient transition to the new system. The measure will support the Government’s growth and clean energy missions, giving certainty to developers, reducing cost risk and supporting faster decisions. It will ensure that we can deliver the critical infrastructure the country needs in the best form. I am grateful to the expert input provided by stakeholders through feedback on the limitations of the existing change process.”
“I beg to move, That the clause be read a Second time. New clause 43 will make the process for post-consent changes to development consent orders more proportionate to the change requested. That will allow greater flexibility than the existing binary process. The current change process takes too long to deliver on the ground, and is putting developers off requesting changes that have the potential to improve design, reduce adverse environmental impacts, better meet community interests, reduce costs and speed up delivery. The removal of the distinction between material and non-material changes will allow us to design a more proportionate single process for changes, the detail of which will be set out in new regulations. The new system will be commenced by the implementation of updated regulations.”
“That will provide local planning authorities and communities with greater transparency about the rate of build-out of developments and any delays that may occur.”
“The Government expect developers to do all that they can to deliver, but we do not think these new clauses are necessary to achieve that. In the case of new clause 55, which effectively involves the transfer of land to a local authority without compensation if planning permission is not commenced, we feel that would be disproportionate, not compatible with the European convention on human rights and would have a chilling effect on development, as it would create risks for developers that their planning permissions may not be implemented. Instead, we are introducing new requirements for statutory build-out reporting by implementing the provisions in the Levelling-up and Regeneration Act 2023 on commencement notices and development progress reports.”
“New clause 55 seeks to introduce a new mechanism for developments of 100 houses or more where, if permission is not used within an applicable period, the ownership of the land would pass to the relevant local authority. I want to make clear to the hon. Member for Taunton and Wellington that the Government agree with the objective of improving the build-out rate of residential development. We want to see homes built out faster where they have consent, and I very much recognise—I say this as a constituency MP, as well as a Minister—the frustrations that stalled or delayed sites can cause to communities, particularly to people in communities who have gone through the process of putting in a view on an application. They have an application that they want to see come forward, and then the site does not develop.”
“I appreciate hon. Members speaking to these new clauses. I recognise the worthy intentions that sit behind many of them. The Government certainly recognise the challenges of many of the issues that they touch on. It will not surprise Members that the Government will not be able to accept them, but I hope I can set out in some detail why that is the case. Let me first deal with new clauses 1, 55 and 61, all of which relate in some way to build-out. All seek to improve the speed of build-out of developments by giving local planning authorities greater control and power where developments are not built out fast enough. New clause 1 seeks to introduce a power to decline applications based on outcomes of previous grants of permission.”
“My hon. Friend is right. If we are having a mature conversation about this, we have to recognise that economic circumstances can change and that the costs that developers are having to deal with—build material costs have increased significantly, particularly in London—are factors they do have to weigh in their judgments. On the other side of the coin, it is important, in strengthening the section 106 system, that we are ensuring local authorities can negotiate robustly on those agreements and that we hold developers to the commitments that they make. The Government’s intention is to do both.”
“It must be weighed in the balance when determining planning applications and appeals. That approach retains local decision making. The Government obviously keep this matter under review. I am more than happy to have a conversation with the shadow Minister about the Government’s view as to whether the enforcement powers available to local planning authorities—they have a wide range of powers, with strong penalties for non-compliance—are being used, and if not, why not. I am also more than happy to share with him our understanding of how local planning authorities and inspectors are treating unauthorised development as a material consideration, as they are now required to do. I hope that, on that basis, I have provided him with some reassurance.”
“I recall debating with a shadow Secretary of State this particular matter in relation to Gypsy and Traveller camps, and I appreciate that across the House there is concern about the use of unauthorised developments. However, the Government’s view is that there may be circumstances—I am happy to set this out in writing to the shadow Minister—in which unauthorised development, even if it is intentional, may be acceptable in planning terms or may be made so by the imposition of planning conditions. I say that only to make the point that we believe that there is a need for some pragmatism here and that such developments should be considered by the local planning authority. It is already the case that intentional unauthorised development, as he said, is a material consideration.”