The Localism Bill
The Government have introduced the Localism Bill to Parliament; it is the centrepiece of their vision of a “Big Society”.
Described as “a groundbreaking shift in power to councils and communities, overturning decades of central Government control”, aiming to increase the level of control given to Councils and neighbourhoods, providing local communities greater control over housing and planning decisions.
There are several policies contained within the Bill that specifically relate to the planning system in the UK, just a few of the key points are reviewed below.
· Regional Strategies abolished
It is intended to remove the “top-down targets” for housing delivery that have been unpopular with many local councils, and led to an increase in objections to plans from the public.
The concern is that this will mean delivering sufficient housing in the future may be difficult, particularly due to uncertainty while Local Authorities revise Local Development Documents. In the longer term, the greater involvement of local communities, as beneficial as this may be, could result in slowing the pace of the planning process - the exact opposite of what is proposed by the Bill.
· Community Infrastructure Levy
The Community Infrastructure Levy (CIL) is a locally set charge that Local Authorities may levy on developers to contribute to new infrastructure. The Bill aims to change the way this works including the provision for some funds to be passed to neighbourhoods where development has taken place. Alongside the planned New Homes Bonus, where £1bn has been set aside in order to provide incentives and rewards for those councils and communities who wish to build new homes in their area, may provide the correct impetus for new development.
The CIL reforms do not address the reluctance of many local councillors to press for contributions. Although there are financial positives for the local communities, there is a feeling that the CIL will deter developers from their area, to those where the CIL is not levied.
· Neighbourhood Planning
Communities will be able to prepare “Neighbourhood Plans” enabling communities to identify classes of permitted development. Allowing local issues to be settled locally is a welcome change, but the existing permitted development rights are already quite extensive and therefore agreeing a local consensus of additional relaxations may be very difficult to achieve, particularly when trying to protect the quality of the local environment.
Both the good and bad could see homeowners given autonomy to build extensions and conservatories etc. Without the need for planning permission, this needs careful consideration on how it will work in practice. Can anybody else see a future rise in neighbour disputes?
· Community Right to Build
Local communities will have the ability to instigate development in their area without the need to apply for planning permission, subject to meeting certain safeguards and securing 50% support of the community through referendum. Communities will be able to identify suitable land, sources of finance and secure support for their proposals.
This will allow communities to provide new housing and other facilities in areas where there is at present, resistance to change. Particularly advantageous for communities in rural locations, where specific local needs can be identified and provided for whilst also recognising that rural economies must diversify to survive.
· Pre-application Consultations
Developers will have to consult local communities before submitting planning applications for vary large developments. Consultation will give a chance for communities to have an early input into proposals. This could work to the developers advantage, obtaining the approval of the community prior to submission will speed up the planning process but only once a submission has been made.
Other provisions within the Localism Bill that are worth considering at the same time include the following.
· Community Empowerment
The public shall be provided with a “community right to challenge”, whereby the public will be able to approve or veto council tax rises planned by a Local Authority, above a ceiling set by the Secretary of State. Local people, councillors and councils will have the power to instigate a local referendum on any local issue.
Under a new “community right to buy”, Local Authorities will be required to maintain a list of public or private assets. When these come available through disposal, communities will be able to bid and raise capital to buy them. At the moment we are unaware of how this will be affected by the limitations of s123 of the Local Government Finance Act 1972, whereby Local Councils are required to achieve best value.
· Social Housing Reform
Local Authorities will be given the right to offer people who are homeless suitable accommodation in the private rented sector without agreement agreement. Private sector tenancies will be for a minimum fixed term of 12 months.
Home Information Packs (HIPS), suspended on 21 May 2010 are to be abolished. Energy performance certificates will still be required.
Implementation of the Bill will present the greatest challenge. In the wake of the public spending cuts, overhauling the existing planning system will be a rigorous test for many Local Planning Authorities. The objectives are clear, how they are to be implemented and whether they will be effective remains to be seen. The concept of taking power away from central Government and handing it to local communities is to be commended. However, the greater involvement of local people may result in a high degree of “nimbyism” and slow things down rather that speed them up. In the current economic climate, where there are signs of the green shoots of recovery, it will be interesting to see whether greater local involvement in the planning process would encourage the development industry to start to build again.
