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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“I agree with my hon. Friend. Last year, as the housing emergency took hold, the SNP Government cut £200 million from the affordable housing budget. It was only as a result of Labour’s record budget settlement that they were forced to reverse those cuts, but they are still not showing the adequate ambition that we need. The SNP Government must set out a real plan to reform planning and boost house building to meet their affordable housing targets.”
“To add to the responses I gave earlier, we intend to take action to provide leaseholders with the transparency of standardised service charge invoices, so that they can better challenge unreasonable rent hikes. We also need to strengthen the regulation of managing agents, including those such as FirstPort that, as is clear from the feeling in the House, are not performing the necessary services for their residents.”
“Local authorities can be clear about how grey belt should be used because we released planning policy guidance last week to give them a better sense of where it is appropriate to be released and be brought forward for development.”
“I assure my hon. Friend of that fact, and we are also succeeding where the previous Government failed, in that we are finally abolishing section 21 no-fault evictions. The Renters’ Rights Bill will empower tenants to challenge unreasonable within-tenancy rent increases. We also need to boost supply, which is why we set the hugely ambitious milestone, as part of our plan for change, of building 1.5 million safe and decent homes in this Parliament.”
“We want to see far greater use of rural exception sites in particular, and I am more than happy to sit down with the hon. Gentleman—I think we have already planned to do so—to discuss short-term lets as well as this issue.”
“We need to balance speed with care, because we will not make the mistake that the previous Government did and pass flawed legislation that requires us to fix it, therefore delaying reform for leaseholders. We will, as soon as possible, introduce the provisions of the Leasehold and Freehold Reform Act 2024, which will allow us, as I said, to bring in transparency around service charges to allow leaseholders to better challenge unreasonable increases, and we intend to strengthen the regulation of managing agents.”
“The publication of the “Commonhold White Paper” today marks the beginning of the end of the feudal leasehold system. We will succeed where the previous Government failed and bring that system to an end, but we are determined to provide immediate relief for leaseholders suffering from unreasonable and unfair charges at present.”
“As we progress measures for local fee-setting through the forthcoming planning and infrastructure Bill, today’s regulations will provide local planning authorities with an immediate boost in resourcing and greater financial sustainability. That will ensure that they are better equipped to boost housing supply and deliver economic growth. I hope that hon. Members from across the Committee will join me in supporting the draft regulations.”
“The Government have also announced our intention to introduce a measure in the forthcoming planning and infrastructure Bill that will enable local planning authorities to set their own planning fees to meet their costs. That measure will provide local planning authorities with the flexibility to adjust fees according to local needs and circumstances, ensuring that they can manage their resources sustainably and continue to deliver a high-quality service. As a result of those measures, we will ensure that local planning authorities are not only better funded but better equipped to handle the significant demands placed upon them.”
“The fee increase is not made in isolation, but is part of our broader efforts to resource and streamline the planning system. As hon. Members will be aware, in the Budget the Chancellor announced a £46 million package of investment in the planning system as a one-year settlement for 2025-26. As part of that investment, we are working with delivery partners to understand how we can scale delivery and fund the recruitment and training of at least an additional 300 planners. That includes expansion of the Pathways to Planning programme, which has had significant interest from prospective graduates wanting to take up roles in local planning authorities and train while they work.”
“The regulations also make corrections to two fees that were erroneously set too low when the fee regulations were last amended in December 2023. Taken together, the fee increases provided for by the regulations will reduce the current funding shortfalls for the various application types to which they apply, and will thereby enable local planning authorities to hire more staff, invest in better technology and streamline their internal processes, all of which will contribute to faster and more efficient decision making. I want to be very clear that the Government expect local planning authorities to use the income from planning fees on their planning application services, so that they can build up their capability and capacity, and improve their performance. That is what applicants expect in return for paying higher fees.”
“They increase the planning fees for prior approval applications from a flat fee of £120 to £240, and from £258 to £516 where they include building operations, and for a change of use of commercial buildings to residential uses from £125 per dwelling to £250 per dwelling. The regulations also increase the fees for discharge of conditions from £43 to £86 for householders, and from £145 to £298 for all other applications, including discharge of biodiversity net gain plans. Finally, the regulations introduce a new three-tiered fee structure for section 73 applications that are used to vary or remove conditions on extant planning applications. That reflects the higher costs associated with section 73 applications on major developments.”
“Members on both sides of the Committee would accept, in principle, that it is right that those who seek and will directly benefit from the planning permission cover those costs rather than the taxpayer. The application fee represents a small proportion—less than 1%—of typical overall development costs. As I am sure you know, Ms Jardine, certain householder development can also be undertaken through permitted development rights without the need for a planning application, and so incurs no fee at all. The regulations also increase fees for a range of other application types that are currently also set too low.”
“I am sure that the Committee will agree that this is a substantial sum that will significantly enhance the capacity, capability and therefore efficiency of planning services in every part of the country, to the benefit of applicants of all kinds. I will now turn to the detail of the regulations. The regulations increase the fees for householders who want to enlarge, extend or alter their home from £258 to £528 for a single house and from £509 to £1,043 for more than one house. While I acknowledge that this is a large increase, it is necessary to meet the estimated costs to local planning authorities of determining such applications, and I hope that hon.”
“Moreover, the types of planning application with the greatest gap between the fees that can be charged and the actual costs associated with processing them constitute the majority of applications received by local planning authorities. In short, the arrangement that the Government inherited is simply not sustainable. By increasing the level of fees charged for making those applications with the greatest funding shortfalls, we will ensure that local planning authorities can cover a greater proportion of the costs associated with processing them. That will provide an immediate boost to local planning authority resources. We estimate in the impact assessment that the changes will generate an additional £56 million annually for local planning authorities across England.”
“Alongside other steps that the Government are taking to support local planning authorities to build their capacity and capability, the regulations will help to ensure that our planning system is faster and more efficient, and equipped to facilitate our ambitious plan for change milestone of building 1.5 million new homes in this Parliament. Let me start by providing some important context to the regulations. Planning application fees were last increased by 35% for major applications and 25% for all other applications in December 2023, yet when it comes to planning application services in England, we still face a national funding shortfall of £362 million.”
“I beg to move, That the Committee has considered the draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment and Transitional Provision) Regulations 2025. It is a pleasure to serve with you in the Chair, Ms Jardine. The draft regulations, which were laid before the House on 13 January 2025, increase planning fees for householder and other applications, with a view to providing much-needed additional resources for hard-pressed local planning authorities.”
“The previous Government took action in that respect and we stand ready to do so where necessary. Both Members raised concerns about general funding for local authorities. The Government are under no illusions about the scale of the financial issues facing councils and the potential for continued instability as we work to fix the foundations of local government. That is why we have a framework in place to support councils in the most difficult positions and why we work on a collaborative basis to help councils to manage their financial challenges. Lastly, let me say something about local fee-setting. As we have said, it is important that local planning authorities are well resourced so they can deal with planning applications efficiently and do not hold up the development necessary for economic growth.”
“We believe that they are in most instances, but I have heard anecdotal accounts of planning fees being used to cross-subsidise other council services. We are therefore considering ringfencing as part of the Government’s longer-term plans for planning fees, which will enable local planning authorities to set their own fees. On performance, in return for increasing planning fees, we expect local authorities to invest more in their planning service to deliver better performance. We are able to monitor, and will continue to monitor, the performance of local planning authorities through the planning performance dashboard and the quarterly planning statistics seen by the Department. The planning performance regime ensures that underperforming local planning authorities are held to account.”
“As I have said, we think it is right in principle that taxpayers should not bear that burden, but the people making the application who will directly benefit from consent once it is processed. The planning application fee represents a small proportion—as I said, less than 1%—of typical overall development costs and, through permitted development rights, certain types of applications incur no fee at all. The shadow Minister rightly raised ringfencing. The Government are clear that they expect the income from planning fees to be retained and directly invested in the delivery of planning application services. Managing public money principles should ensure that planning fees are effectively ringfenced.”
“Importantly, prior to changes in 2023 that will come into effect on 1 April, they were never index linked, so they have never risen with inflation. As such, the gap between the cost of processing an application and the fees charged has widened over time. The Government propose, through the regulations, to increase the fees on certain types of applications, which as I said in my opening remarks constitute the bulk of applications to local authorities, where the funding shortfall is most acute. The current fee of £258 on householder applications—just to give the shadow Minister a sense of the shortfall we are talking about—covers less than half the cost of processing the application to the local authority.”
“I thank both the Liberal Democrat spokesman and the shadow Minister for their contributions. I note that the shadow Minister does not feel strongly enough about the reforms to formally divide the Committee, but he makes a number of pertinent challenges and asks a number of questions that I will seek to answer. Both Members outlined the problem we face, which is that local planning authorities are significantly under-resourced and hard pressed. On planning application fees, despite the increases made by the previous Government in December 2023, we have a funding shortfall across the whole of England of £362 million. That is the problem we are attempting to address with the regulations. Fees were consolidated in 2012 by the coalition Government and have been increased only twice since, in 2018 and 2023.”
“The changes address the critical funding shortfalls faced by our local planning authorities and will provide them with the resources they need to deliver improved services in the short term. I hope the Committee will welcome them. As I have made clear, they will help to ensure that our planning system is faster and more efficient, and better equipped to facilitate our ambitious plan for change milestone of building 1.5 million new homes in this Parliament. Question put and agreed to.”
“We think we are striking the right balance between increasing fees on the type of applications outlined in the regulations and making it very clear that nationally set planning fees can never be set in a way that covers every local authority’s costs for their planning application service, because costs vary between local authorities. The hon. Gentleman will be fully aware of that in his role. We think the only way to do this is ultimately for local planning authorities to be able to set their own planning fees. As I said, we intend to introduce a power in the proposed planning and infrastructure Bill that will enable local planning authorities to set their own fees, so that they will be able to recover their costs for their planning application services. The proposed increases in fees are necessary and timely.”
“That is why we acted decisively to overhaul the national planning policy framework last year, to revise the anti-supply changes made by the previous Government in December 2023, and to introduce a range of pro-growth measures that will enable us to build the homes and infrastructure our country needs.”
“Friend the Member for Reading West and Mid Berkshire raised a number of distinct issues on the provision of affordable rural housing and I will seek to respond to as many of them as I can in the time available to me. Before I do, I would like to make some brief remarks about planning reform and the role of the planning system in delivering homes of all kinds and meeting identified need for affordable housing, as a means of providing some important context. It is not in dispute in this Chamber, I do not think, that the Government have inherited an acute and entrenched housing crisis, or that significantly boosting the supply of homes of all tenures is essential to tackling it.”
“It is a pleasure to serve under you in the Chair, Mr Twigg. I congratulate my hon. Friend the Member for Reading West and Mid Berkshire (Olivia Bailey) on securing this important debate. She has only been in the House a relatively short time, but she has already established a reputation as a doughty champion of her constituency. Those she has the privilege of representing should be reassured by the fact that she has already assiduously conveyed their views and concerns to Ministers on a range of matters, including the one we are considering today. I also thank my hon. Friend the Member for Hastings and Rye (Helena Dollimore) and others who have made contributions to the debate. My hon.”
“The Government are committed to doing so, and it was a pleasure to have the chance to discuss this matter with my hon. Friend last month. It cannot be right that, as a number of hon. Members said, young people in particular are often unable to remain in the villages in which they grew up. That harms not only them and their families but the vibrancy and long-term viability of rural communities.”
“Local authorities will need to consider these matters as they prepare their plans, but we expect them to explore all options to deliver the homes their communities need. That means maximising brownfield land, densifying available brownfield sites, working with neighbouring authorities on cross-boundary housing growth and, where necessary, reviewing the green belt. They are then expected to evidence and justify that approach to planning for housing in their local planning consultation. An examination of their approach will be scrutinised by a planning inspector to determine whether the constraints are justified and the plan is sound. I turn to the focus of my hon. Friend’s remarks—namely, the case for supporting rural communities to build new homes for local people, and in particular for boosting the supply of rural affordable housing.”
“National planning policy is clear that significant development within a national landscape should be refused, other than in exceptional circumstances where it can be demonstrated that the development is in the public interest, taking into account a range of considerations. That includes fully exploring the role of planning conditions and developer contributions to mitigate the impacts of development or support infrastructure provision as appropriate. When it comes to plan making, local authorities are expected to use the revised standard method to assess housing needs. However, they are able to justify a lower housing requirement than the figure set by the method on the basis of local constraints on land availability, development and other relevant matters such as national landscapes, but also protected habitats and flood risk areas.”
“Friend the Member for Reading West and Mid Berkshire will appreciate that I am unable to comment on her local plan or how her local planning authority may interpret national planning policy due to the quasi-judicial nature of the planning process, but there is merit in me making some general comments on plan making in local authority areas that overlap with national landscapes, as is the case in her own area. As my hon. Friend is aware, the Government are committed to maintaining strong protections for our protected landscapes. We are clear that the scale and extent of development within such designated areas should be limited so that we are able to pass on their attractions and important biodiversity to future generations.”
“I disagree with the hon. Gentleman. We think the changes we have introduced and the revised standard method are appropriate. Every part of the country will need to play its part in achieving our ambitious plan for change milestone of building 1.5 million new homes across the country. That is the scale of ambition we need commensurate with the crisis we face, and that crisis affects every part of England. The Government believe in a plan-led system. It is through local development plans that communities shape decisions about how to deliver the housing and wider development their areas need. Local plans must remain the cornerstone of our planning system and we are determined to progress towards universal coverage. My hon.”
“Planning policies should identify opportunities for villages to grow and flourish, especially where that will support local services. We also want more affordable housing in rural areas, as part of our manifesto commitment to deliver the biggest increase in social and affordable house building in a generation. We have already taken steps to support the delivery of affordable rural housing. For example, our golden rules for green-belt development—which ensure an affordable housing contribution 15 percentage points above the highest existing affordable housing requirement that would otherwise apply to the development, subject to a cap of 50%—will unlock new affordable housing provision in a range of rural locations.”
“As my hon. Friend is no doubt aware, we have already brought into force a discretionary power to disapply hope value in certain instances where a public interest test could be met. We are committed, through the forthcoming planning and infrastructure Bill, to bring forward further reform of the compulsory purchase process and compensation, so he can look forward to seeing more action in that area. National policy makes it clear that local authorities should ensure that their planning policies and decisions respond to local circumstances and support housing that reflects local needs. That includes promoting sustainable development in local areas and ensuring that housing is located where it will maintain and enhance the vitality of rural communities.”
“When taking those reforms forward, we need to ensure that local authorities are better able to negotiate at the point that those agreements are reached and are then able to ensure that developers honour the commitments that they make in those agreements, when struck. In conclusion, I again congratulate my hon. Friend the Member for Reading West and Mid Berkshire for securing this important debate, giving the House an opportunity to consider a range of important issues relating to affordable rural housing supply.”
“We are committed to taking forward the previous Government’s measures—a registration scheme for short-term lets and the abolition of the furnished holiday lettings scheme, which comes into force on 1 April—but we have been clear that that is not enough and we are giving very considered thought to what further powers local authorities need, in particular, though there is a balance to be struck, to deal with excessive concentrations of short-term lets that often deny local people not only homes to buy but, increasingly, homes to rent. On section 106 contributions, we are reviewing viability and we are committed to strengthening the existing section 106 system, in lieu of taking forward the previous Government’s approach, which was an infrastructure levy.”
“The first is the problem highlighted by my hon. Friend the Member for Reading West and Mid Berkshire of developers and housing associations—in her case, Sovereign—selling off much-needed social and affordable homes in rural areas. She might like to know that when and if grant-funded homes are sold or part-sold, there is a system in place to recover Government grants through the recycled capital grant fund. That means that the cash value of the grant is placed in a fund to be used for further investment in new affordable housing supply. I am more than happy to discuss with her the specific issues with Sovereign in her own constituency. Briefly, on short-term lets and the existing developer contribution system, Members across the House will know that we have debated this issue at length on various occasions.”
“That will include consideration of how we can drive greater uptake of rural exception sites and introduce a more streamlined approach. Again, I will set out details about our thinking in due course. I will take forward this work with my colleagues in the Department for Environment, Food and Rural Affairs, including by considering the role that rural housing enablers play in supporting rural affordable housing. My hon. Friend mentioned a case in her own constituency. Again, I am afraid that I cannot give her any firm assurances in this debate in respect of ongoing funding because that is subject to the Government’s ongoing business planning, but I can assure her that we will provide an update at the earliest possible opportunity. I want to briefly reference a couple of issues that hon. Members raised, as I have the time.”
“As she is aware, these allow local authorities to address the housing needs of rural communities by creating sites where local residents, and others with a strong family or employment connection, can live in affordable homes and in perpetuity. Rural exception sites tend to be just outside village boundaries, where housing is not normally granted permission, so it is possible to create them even in the green belt or designated rural areas. We recognise the strong support for rural exception sites and the potential for strengthening this policy. That is why we made clear in our response to the consultation on the revised national planning policy framework that we are giving further consideration to how we can better support rural affordable housing, including through use of exception sites.”
“We know that delivering affordable housing in rural places can be especially challenging. There are particular challenges that come with the delivery of sites in rural areas, so that is one of the factors that will be taken into consideration in the design of the future capital investment programme, which will succeed the existing one. My hon. Friend the Member for Reading West and Mid Berkshire might also like to know that, to provide additional support for rural housing delivery in settlements with populations of fewer than 3,000 people, Homes England has developed a rural housing strategy and has dedicated rural housing champions in each of its operating areas. My hon. Friend rightly drew attention to the significant contribution that can be made by rural exception sites.”
“At the Budget on 30 October 2024, the Chancellor set out details of an immediate one-year cash injection of £500 million to top up the existing affordable homes programme, which will deliver up to 5,000 new social and affordable homes. On 12 February 2025, the Government announced a further cash injection of £300 million to the existing affordable homes programme, which will deliver a further 2,800 new homes, more than half of which will be for social rent. At the multi-year spending review this year, the Government will set out details of new investment to succeed the 2021 to 2026 affordable homes programme. That new investment will deliver a mix of homes for sub-market rent and home ownership, with a particular focus on delivering homes for social rent.”
“The responses we received are informing our ongoing work in relation to producing a set of national policies for decision making—national development management policies, as they were referred to under the Levelling-up and Regeneration Act 2023. Although I cannot give my hon. Friend the Member for Reading West and Mid Berkshire a firm date today, I can assure her and other hon. Members that we will consult on those policies in the spring, as promised, and I will update the House in due course. My hon. Friend also knows that, since taking office, the Government have provided additional grant funding to support the delivery of affordable homes in all parts of England.”
“I think the hon. Gentleman is making a wider point. I am not sure what specific legislative provision he is referring to in the past. There is a very clear place for ensuring we are building the right types of homes in all parts of the country, including homes that support key workers and other frontline public sector staff, and I am more than happy to discuss that matter with him outside the Chamber. The Government have been clear that we want to look further at measures to support affordable housing in rural areas. That is why we asked a question on that issue as part of the consultation on reforms to the national planning policy framework last year.”
“I will not—I am just winding up, I am afraid. I hope that I have not only conveyed the Government’s firm support for delivering much-needed affordable housing in rural areas, but reassured my hon. Friend the Member for Reading West and Mid Berkshire and others that I am actively considering what further measures are necessary to ensure that we do so while balancing the need to ensure that development is sustainable and appropriate. I hope I can continue to draw on the insights provided by my hon. Friend and other colleagues, as the Government continue to develop their thinking in this area. Question put and agreed to.”
“Local authorities will need to consider these matters as they prepare their plans, but we expect them to explore all options to deliver the homes that their communities need. That means maximising brownfield land, densifying available brownfield sites, working with neighbouring authorities on cross-boundary housing growth, and, where necessary, reviewing the green belt.”
“It also provides greater certainty to the sector through more stable and predictable housing numbers compared with the previous approach, which, as the shadow Minister will know, relied on out-of-date demographic projections and unevidenced and arbitrary adjustments. The right hon. Member for East Hampshire raised a specific concern about how the standard method translates into local plan making. Although local authorities are expected to use the standard method to assess housing needs, they are able to justify a lower housing requirement than the figure set by the method on the basis of local constraints on land availability, development and other relevant matters such as national landscapes, protected habitats and flood risk areas.”
“Indeed, we adjusted it from the proposals we consulted on last July in response to significant feedback from experts, developers and local authorities across the country, much of which pressed us on the fact that the formula we consulted on was not sufficiently responsive to affordability demands. The revised NPPF that we published on 12 December contains the adjusted method. The new method better responds to affordability pressures by using a higher affordability adjustment in its calculation. That recognises the importance of housing affordability in assessing housing needs, and helps direct more homes to where they are most needed and least affordable.”
“However, we are clear that local decisions must be about how to meet housing need, not whether to do so at all. That is why we have restored mandatory housing targets, as the manifesto on which we stood and won a decisive victory last July committed us to doing. That means that local authorities must use the standard method as the basis for determining housing requirements in their local plans. However, we made it clear that a mandatory method is insufficient if the method itself is not adequate to meet housing need. That is why our revised NPPF implements a new standard method for assessing housing needs, which aligns with our ambitions for 1.5 million new homes in this Parliament. We think that the new standard method strikes the right balance.”
“I gently say to the shadow Minister that it is not enough to will the ends; we have to will the means as well. That is why we have instituted various reforms to date, and we are planning more. Planning reform is integral to meeting that manifesto commitment, which is why we have already overhauled the national planning policy framework to reverse the anti-supply changes made by the previous Government in December 2023, and to introduce a range of measures that will enable us to build the homes and infrastructure that the country needs. We believe in a plan-led system. It is through local development plans that communities shape decisions about how to deliver the housing and wider development that their area needs, and those plans must remain the cornerstone of our planning system.”
“The crisis is blighting the lives of not just those at the sharp end in temporary accommodation, but the many families out there desperate to buy a first home of their own. It is also hampering economic growth and productivity, and consuming ever-larger amounts of public money in the form of the rapidly rising housing benefit bill. The crisis has many causes, but among the most important is a failure, over many decades, to build enough homes of all tenures to meet housing demand in both rural and urban areas. The Government are absolutely determined to tackle it head on, which is why our plan for change commits us to an ambitious and stretching—I have never been anything other than candid about the fact that it is incredibly stretching—milestone of building 1.5 million new homes in this Parliament.”