I want to make some progress, so I will not give way.
We take issue with the Government making local housing targets unenforceable in the absence of a viable alternative to try to maintain supply.
We believe it is essential not only that the process by which the Secretary of State must designate and review an NDMP involves minimum public consultation requirements and an appropriate level of parliamentary scrutiny, but that the scope of an NDMP to override local plans is suitably constrained. On that basis, I commend amendments 78 and 79 to the House.
Part 4 addresses the new infrastructure levy, which is the Government’s proposed replacement for the present arrangement by which local planning authorities secure developer contributions. We believe the new levy is one of the most consequential aspects of the Bill and has potentially far-reaching implications not only for the provision of core infrastructure but for the supply of affordable housing. Although we fully appreciate that schedule 11 merely provides the basic framework for the levy, with a detailed design to follow, and that the levy’s
implementation will take a test-and-learn approach, we are convinced that, as a proposition, it is fundamentally flawed.
As we argued in great detail in Committee, the deficiencies inherent in a rigid fixed-rate mechanism for securing both infrastructure and affordable housing, based on the metric of gross development value, almost certainly means the levy will prove onerously complicated to operate in practice and that, overall, it will deliver less infrastructure and less affordable housing in the future, while putting the development of less viable sites at risk.
For that reason, we remain of the view that if the infrastructure levy is taken forward, it should be optional rather than mandatory, with local authorities that believe that the needs of their areas are best served by the existing developer contributions system able to continue to utilise it. Taken together, amendments 81 to 83 and 91 would ensure that local authorities retain that discretion, and I hope the new Minister, whom I welcome to her place, will consider them carefully, along with amendment 86, which seeks to address a specific concern about how viability testing will inform the levy rate-setting process.
Amendment 84 seeks to ensure that if the Government insist it is made mandatory, the new infrastructure levy must deliver sufficient levels of affordable housing. Since the publication of the Bill, Ministers have repeated ad nauseam that the new levy will secure at least as much affordable housing as developer contributions do now, yet the Government have so far been unable to provide any evidence or analysis to substantiate why they believe it can fulfil that objective. More importantly, there is nothing in the Bill to ensure that the commitment made by successive Ministers with regard to affordable housing will be honoured. At present, proposed new section 204G(2) of the Planning Act 2008—in schedule 11, on page 291 of the Bill—only requires charging authorities to have regard to the desirability of ensuring that levels of affordable housing are
“maintained at a level which, over a specified period, is equal to or exceeds the level of such housing and funding provided over an earlier specified period of the same length.”
Put simply, the Bill as drafted would enable—one might even say encourage—inadequate levels of affordable housing supply to remain the norm by making them the minimum requirement.
If we want to ensure that the new levy secures at least as much affordable housing as is being delivered through the existing developer contributions system—and ideally more—we believe the Bill needs to be revised. That is not a view confined only to this side of the House. In the foreword to a report published only yesterday by the Centre for Social Justice, the hon. Member for Walsall North (Eddie Hughes)—himself a former Minister in the Department—argues in relation to the levy that
“it would be good to see stronger safeguards in primary legislation, rather than in regulations, for protecting and increasing the existing levels of affordable housing supply funded in this way”.
Not for the first time, I find myself in agreement with the hon. Gentleman.