Planning Bill

I will try to answer all the points that have been raised, although a few amendments have not been followed through. This group of amendments deals with three core themes: how CIL moneys can be spent; enforcement procedures; and compensation. I will deal with them in turn. My noble friend Lord Berkeley cannot be here and I am grateful that my noble friend Lord Woolmer has spoken to his amendment. He seeks reassurances about the types of infrastructure that might benefit from CIL and asking that railways be included within the scope of the infrastructure to which CIL may be applied by explicitly listing it in Clause 202(2). We fully recognise the importance of new rail infrastructure in supporting development and are clear that CIL should support railways where required. Equally, we recognise the irreplaceable role of other services in the lives of communities, such as police and emergency services. However, the amendment is unnecessary. Let me explain. The purpose of the infrastructure list in Clause 202 is to illustrate the types of infrastructure CIL might finance by providing a wide definition of infrastructure. The list includes examples of infrastructure that CIL could fund without stipulating in detail every item that could benefit from CIL. It is not intended to be an exhaustive list, so the fact that a particular public service or facility does not appear does not mean that it cannot be funded from CIL. The list already covers railways through its inclusion of, "““roads and other transport facilities””." The nature of that definition goes further than conventional concept of infrastructure, such as transport, schools, and flood defences. Because of its illustrative nature, the list also covers a range of other items that support the development of an area. That may include community facilities, schools and police and emergency services. Thus, the items addressed by the amendment already fall within Clause 202(2). We have no doubt about that. I hope that that reassures the noble Lord. In reference to the infrastructure list in Clause 202, Amendment No. 438T, tabled by the noble Baroness, Lady Hamwee, would remove Clause 202(2) and (3) from the Bill, which set out the illustrative list of the infrastructure items that CIL might finance and our power to amend that list. Clause 202(2) defines infrastructure by reference to an illustrative list of the types of infrastructure that CIL might finance and does not seek to be exhaustive by stating each and every infrastructure type included. However, it serves the purpose of establishing the scope for appropriate infrastructure and offering some clarity and certainty about how CIL may be used. For instance, without Clause 202(2), it would not be readily obvious that affordable housing or the provision of open space could be classed as infrastructure for CIL purposes. Furthermore, by providing a list—albeit indicative—Clause 202(2) gives some indication to developers of the type of infrastructure that their moneys may fund. Removing the list risks a narrow interpretation, so limiting the choice of infrastructure that local authorities may use CIL to fund, potentially undermining their ability to use CIL to support their development plans. I therefore resist the amendment and want to retain Clause 202(2). Amendments Nos. 442ZB, C and D, tabled by the noble Earl, Lord Caithness, would remove the possibility that authorities could use CIL revenues to pay for expenditure already incurred and to finance administration costs directly connected with the CIL system or the infrastructure funds. Although I recognise the concerns giving rise to the amendments, I will endeavour to explain why we believe that that is probably not the best way forward. Taking first the suggestion that we preclude CIL from expenditure already incurred, the noble Earl may feel that that is carte blanche for authorities to misuse CIL by channelling it to finance infrastructure that has already been provided, rather than using it to finance new infrastructure or to improve existing infrastructure to unlock growth. I assure the Committee that that is not the intention behind Clause 202(6)(a). The Government have been clear that CIL is designed to support infrastructure for the development of an area, which is what Clause 198(2) provides as one of the purposes of CIL. Clause 202(6)(a) provides the flexibility necessary to allow authorities to choose how to pay for the infrastructure that makes their communities conducive to growth. This might involve building a new train station or repairing an out-of-use station platform to enable new lines to serve the community. Let us suppose that two developments benefit from this infrastructure, one of which is commenced before the station is built or the platform refurbished and one after. The local authority has counted on CIL from both developments when deciding to fund the station. In such circumstances, it is perverse to insist that only the development that happens in advance of the delivery of the infrastructure should fund the station, while the CIL money from the other development cannot be used to reimburse any of the costs here. We need to enable authorities to collect CIL to pay for the costs of infrastructure that has already been built, but always within the context of providing infrastructure to support the development of an area. They could not get way behind in the development plan. I hope that this reassures the Committee of the intentions and the benefits of this component of the Bill. The noble Earl proposes that we remove the power to enable authorities to spend CIL receipts on the administration system that directly supports the operation of CIL or the administrative expenses incurred in providing CIL-funded infrastructure. I thank the noble Lord, Lord Jenkin, for his input. I emphasise that our desire to resist this amendment is based purely on the flexibility brought by the retention of this power in the Bill. This approach provides options for the long term, should we ultimately decide that authorities can use CIL receipts to cover administration costs. The amendment seeks to protect CIL funds exclusively for direct infrastructure delivery and to prevent authorities diluting the benefit to infrastructure by spending CIL receipts on administration costs. I understand that concern, but the removal of the power in Clause 202(6)(c) may be counterproductive. Local authorities may well argue that if they are to introduce CIL, we must equip them to do so. Providing the power to finance the costs directly associated with operating CIL will therefore be an important facility. The clause has been constructed in such a way that regulations can control how money is spent here, and, crucially, in such a way that limits can be set on the amount of CIL contributing to administration costs. In this way, it allows revenues to be protected for their principal purpose while helping authorities to finance the cost of the system. This approach is entirely consistent with practice on existing charges. The revenue from the levy in business improvement districts, for example, may be spent on administration costs. I recognise that the amendment intends to maximise money for delivery. However, the most effective way of achieving this might be to maximise the number of authorities introducing CIL. Permitting them to finance the cost of the system from receipts could serve as a strong incentive, and greater take-up will benefit developers and communities alike. For all those reasons, I ask the noble Earl not to press his amendments. Amendment No. 442ZAA in the name of the noble Baroness, Lady Valentine, seeks assurances that authorities and their delivery partners do their best to ensure that CIL revenues result in infrastructure on the ground. I am sympathetic to that aspiration, but the amendment is unnecessary and may be unworkable. CIL will facilitate the delivery of the infrastructure needed to support growth because it will provide necessary funding. However, ““best endeavours”” creates a significant legal duty of the kind that is placed on managers of airports to assist constables or others in searching buildings, aircraft and people under the Aviation Security Act 1982, and on governing bodies for schools to provide for the special educational needs of children under the Education Act 1996. Why should an authority be required to implement new measures in the delivery of a project simply because CIL is applied to that project? What about other local authority services? Other initiatives ensure that LPAs put infrastructure planning at the heart of the development planning process—for example, the new PPS 12 on local development frameworks. Clause 202(1) contains a requirement to impose an obligation that CIL is applied, or caused to be applied, to funding infrastructure. Charging authorities would not be acting lawfully if they held CIL revenue indefinitely or spent CIL on things other than infrastructure. Another aspect of the amendment is that it calls for an assessment of what might be called a proof of effort, not only on the part of authorities, but also on the part of third party delivery agents. This requires proof of something that would be very difficult for authorities or third parties to demonstrate or for central government to assess. I do however appreciate that at its heart the amendment seeks to secure infrastructure delivery and hold authorities to account for their management and use of CIL revenues. The Government share this desire and for that reason the Bill already provides powers under Clause 202(7) to require authorities to monitor and report on their CIL activity. Local communities and developers will be able to spot any wrongful or inefficient use of CIL receipts and could exert pressure on a charging authority to make better use of moneys or to speed up delivery. Therefore, I believe that we already have sufficient and measurable safeguards within the Bill and through pre-existing practices to achieve the intentions of this amendment. While I have sympathy with its intention, I believe, for the reasons I have set out, that the amendment is unworkable. I would therefore ask the noble Baroness, Lady Valentine, not to press her amendment. On Amendment No. 442A, the noble Lord, Lord Jenkin, said that one of the biggest issues was about stopping planning permission and then having no recourse or compensation, which the government amendment addresses particularly. But he raised a number of other issues on which I will write, if that is acceptable. I therefore would ask him not to press his amendment.