Planning Bill

I take the points raised by both noble Lords. I turn now to the question of which types of developer and development should pay CIL—or, rather, which should not pay CIL. There have been many different opinions, some based on technical measures such as the need for planning permission, others on the type of development or the type of developer. We have always recognised that there may be a case for exemptions to paying CIL, and our policy documents set that out. Amendment No. 437 requires that CIL will not be payable on any development which does not require planning permission. I think the noble Lord thought that I had dealt with this because I have made it clear that that is indeed the case. It is evident that development that does not require planning permission in CIL terms cannot be CIL liable. That must be defined in the CIL regulations and we will do that. I wondered whether the purpose of the amendment was to ensure that development which benefits from permitted development rights is not liable to pay CIL, a point raised by the noble Earl, Lord Cathcart. Paragraph 4.8 of the August policy document sets out the Government’s view that most PDR development is likely to be excluded from CIL. We take that view because PDRs are a good proxy for relatively low levels of impact on infrastructure. That would mean that the day-to-day operations such as maintenance work by statutory undertakers and bodies such as Network Rail would not be liable to pay CIL. I hope that brings some reassurance to noble Lords. We will define the precise boundaries in regulations but we need to be mindful of the fact that some permitted development might have sufficiently significant impacts on infrastructure that a contribution ought to be sought. Planning permission for CIL purposes should not simply mean that which is granted on an application made to a local planning authority under Section 60 of the Town and Country Planning Act 1990 because that might leave a loophole with regard to certificates of lawful development. This is important because these certificates can be issued by planning authorities to confirm that the development is lawful for planning purposes; that it is immune from enforcement action. We want to explore further whether CIL should be payable in respect of development for which a certificate of lawful development is granted in order to avoid creating an incentive for developers to undertake development without the appropriate planning permission and then later to seek a certificate to render it lawful and therefore out of reach of CIL. Furthermore, it may be that development that should be liable to pay CIL is centred through regimes outside the regime under the Town and Country Planning Act. We need to discuss with stakeholders what should constitute planning permission for CIL purposes, bearing in mind that there might be loopholes. We have not, therefore, set that out in the Bill; it will be in regulations. The noble Lord, Lord Berkeley, will not be surprised by my response to his Amendment No. 438, although I appreciate his reasons for tabling it. He is seeking to ensure that organisations whose sole activity is the provision of rail infrastructure and whose profits are used solely for the provision of rail infrastructure are exempt. I am sure he has in mind Network Rail. Amendments to achieve the same effect were twice tabled in the other place and each time they were not carried. However, the amendment is more focused on Network Rail than before. Officials have discussed Network Rail’s concerns with it, and I believe that our proposals, along with government amendments tabled for other clauses, go a significant way towards addressing those concerns. Amendment No. 438 would exempt the relevant organisation in its entirety, regardless of what type of development it undertook. That gives rise to considerable questions of fairness, but does not mean that every development that Network Rail undertakes will be subject to CIL. In due course I shall come on to Amendment No. 437A, which defines what types of development will be CIL-liable. Subject to us being able to cover other structures, the core concept is that CIL-liable development will be development relating to buildings; we do not intend to cover day-to-day operational requirements. We will also be looking at development undertaken through permitted development rights; we do not propose that all such development should be subject to CIL. All that should be welcomed by Network Rail, but for other development we need to consider carefully whether Network Rail should be treated differently. Imagine, if you will, a situation where two office blocks are being developed side by side, one by Network Rail as a new headquarters, the other by a different developer. Is it right that one makes no contribution through CIL to the infrastructure needs it creates in that area while the other, simply because it is being undertaken by a developer that is not Network Rail, is expected to make a contribution? That is obviously unfair. Both office blocks have an impact on the local infrastructure.