Planning Bill

I am grateful for the musical interlude, which is welcome. To ensure that the draft schedules are ready to be examined, subsection (4) requires charging authorities to accompany the draft schedule with a declaration that they have complied with the legal requirements and that they have had regard to the key matters. Subsection (7) requires the independent examiner to consider how the charging authorities dealt with the key issues, recommend that either the draft schedules should be approved, improved through modifications or rejected with reasons given and published, and in keeping with our commitment that charging schedules are tested to the same high standard, subsection (9) provides that CIL regulations must require the charging authority to allow someone, if they so request, to appear in person at the examination to make oral representations. We do not think it would be appropriate to force a charging authority to approve a schedule if it was strongly opposed to the recommendations, so subsection (10) allows it to be withdrawn. I turn to government Amendment No. 438N, which deals with how schedules are approved. In keeping with the arrangements for development plan documents, this amendment ensures that if a charging authority wishes to approve a charging schedule, they can do so only in accordance with the recommendations of the independent person who conducted the examination. This effectively makes those recommendations binding on the charging authority unless it chooses to withdraw it. For charging authorities which are local authorities, approval can only be by a majority of voting members at a meeting of the authority or, in the case of the mayor, personally. Amendment No. 438P is important because it deals with how charging schedules may come into effect and how charging authorities may cease charging CIL. This is because developers and other applicants seeking to apply for planning permission to which CIL will apply have to be able to plan ahead in terms of the likely costs of developing land. In order to do this, they need to be aware of the level of CIL that they will be charged. That is why new subsection (1) prevents charging schedules coming into effect until the charging authority has published it. We will consult through draft regulations on the most effective methods of doing that. It may be that a charging authority’s plans for area change, for example if a planned phase of significant growth comes to an end. It will have no further infrastructure needs that are best met by charging CIL. We have to make provision to stop charging CIL if the situation warrants it, and subsection (3) provides for this. However, allowing charging authorities an unconstrained ability to stop charging CIL could cause uncertainty and would be unfair, so subsection (4) provides that regulations may specify circumstances in which a charging authority may cease to charge, for example—this will be of interest to noble Lords—when there has been a significant and unforeseen downturn in the market. We also require under a power in Clause 205(2) that there be consultation with infrastructure providers. Subsections (5) and (6) of the new clause set out how this will be achieved by a majority of members at a meeting of the charging authority, or in the case of the mayor, by personal decision. Amendments Nos. 438K and 438Q are integrally linked and deal with the application of the charging schedules once they are adopted. Amendment No. 438Q responds to concerns from stakeholders about the need for further clarity about what should happen in the event of a disagreement between a charging authority and a person liable for CIL on matters of fact. It requires the Secretary of State to make regulations providing for a right of appeal on matters of fact relating to the calculation of the amount of CIL. We hope there will be very few cases but, if there is dispute about whether the development is the kind of development on which CIL should be charged or the quantum has correctly identified the amount of floor space and so on, we need an appeal mechanism. Most disputes on matters of fact should be capable of being resolved quickly and simply. Under Amendment No. 438L, we are considering a proposal to require charging authorities to recalculate their estimate of the amount of CIL due from a particular development if requested to do so within a set time of being notified of the amount of CIL due. Only if disagreement remains after this stage would the matter become a formal appeal. It is obviously important that the appeal is decided by a suitably qualified person. Subsection (2) specifies that it must be considered by a person appointed by the Commissioners for HM Revenue and Customs. It is expressed in this way because we want appeals to be considered by a valuation officer or a district valuer. We believe that the Valuation Office Agency, which celebrates its 100th birthday in 2010—I am sure we can all find ways of celebrating that—is best placed to consider these appeals because it has a proven and respected track record in property and land rating assessments. I stress that we do not intend HMRC to have any role in CIL. Given the relatively straightforward subject matter of any appeal, we propose that it should be conducted by written representations rather than through hearings in person. They would be binding but, of course, a further challenge in the courts would be necessary. We shall consult on the detail in the draft regulations. Amendment No. 438K is partly consequential. It deletes the previous provision for regulations to provide for a right of appeal. Amendment No. 438L provides the opportunity for further clarity about how much CIL would be payable under a charging schedule and about the revision of charging schedules. New subsection (8) provides that the regulations may set out when charging authorities must provide an estimate of the amount of CIL chargeable on individual developments—for example, at the time planning permission is granted for the development. This estimate could be used as the basis for an appeal on a matter of fact, as I have just described in relation to Amendment No. 438Q. On the questions raised by my noble friend Lord Woolmer, the new subsection (9) would expressly allow for charging authorities to revise their charging schedules, and new subsection (10) makes clear that the requirement for examination, approval and the bringing into effect of charging schedules which are the subject of other government amendments apply to those revisions in the same way as to the first charging schedule. To be clear, charging schedules should seek to reflect the degree of potential change envisaged in the development plan—for example, the anticipated changes in the economic climate—and so formal revisions of charging schedules should not be necessary simply in response to normal variations in market conditions. But charging authorities should keep under review the effect of the level of CIL on development in their area, perhaps through their annual monitoring report which looks at the delivery of the local development documents. If their monitoring shows that economic circumstances have changed significantly or there is a need to revise the development strategy, the charging authority should also assess the need to revise the charging schedule. I am conscious that a great deal of heavy, technical detail has been placed on the record. I am not sure that I could answer any further questions but I am happy to write to noble Lords if they require further details.