Localism Bill

My Lords, I oppose that Clause 124 stand part of the Bill. My noble friend Lord Jenkin was kind enough to reflect on the fact that I gave notice of this matter only because I think it is important, and it remains an important issue. This clause outlines the fact that financial considerations can be material to a planning application and it was added on Report in the Commons. The Minister then said that, "““it is an incidental measure for clarification””.—[Official Report, Commons, 17/5/11; col. 271.]" Frankly, why is such clarification needed in statute? As my noble friend Lady Hamwee has stated, the test for establishing what considerations are material in planning have developed from case law, not statute, since 1947. The classic statement is found in the 1970 case of Stringer v Minister for Housing and Local Government, which makes it clear that any consideration which relates to the development of land is capable of being a planning consideration. Accordingly, there is no legal or policy restriction in place that forbids financial considerations from being taken into account in relation to judicial decisions on planning applications. Indeed, over time, the courts have asserted that a range of particular financial considerations can be taken into account. However, as this clause stands, it threatens the probity of planning. It sends a message out to developers that under this new planning system, which relies heavily on incentives—not top-down targets—to secure development, such planning permissions can be bought and sold. This concern has a long history. In 1997, the Nolan committee’s report on the standards of conduct in local government made it clear that the Government should consider whether the present legislation on planning obligations is sufficiently tightly worded to prevent planning permissions from being bought and sold. A key principle of planning has been that applications are decided on their planning merits, which can already include financial considerations, as my noble friend Lady Hamwee has said. Many of us who are or have been councillors will be only too familiar with Section 106 and other planning obligations where funding is used to make an otherwise unacceptable planning application acceptable in planning terms. However, this clause elevates financial considerations above all other legitimate planning considerations, which are not mentioned here or anywhere else in statute, and it can be read as meaning that financial inducements that are irrelevant to the merits of a particular development proposal can be material in determining planning applications. As such, it is a fundamental and deeply damaging change to the planning system. If further clarification is needed on the relationship between financial considerations and considering planning applications, then the way to achieve this is by drawing up guidance for local authorities, not through primary legislation. The probity of the planning system is crucial, and is indeed vital if we are to achieve community buy-in to sustainable development, and meet the housing needs that we know are out there in our communities. This clause threatens to bring the planning system into disrepute, and should be withdrawn.