I understand that, and I will write to the noble Baroness to explain this completely. I know that this is confusing because the NPPF has not been agreed, so I understand where she is coming from and I will make sure that we send her a letter.
Turning to Amendment 324, I agree with my noble friend Lord Greenhalgh that the emergency and rescue services should be among the infrastructure providers that are able to receive levy funds from local planning authorities. For this reason, they are already included in the illustrative list of infrastructure in new Section 204N(3), which makes it explicit that levy funds can be applied towards
“facilities and equipment for emergency and rescue services”.
We do not provide detailed definitions across all kinds of infrastructure, as this is not necessary. The words used must be given their natural and common-sense meaning—so “infrastructure” too must be given its ordinary meaning. I have stated that it can encompass matters not listed in new Section 204N(3).
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I understand that those representing the emergency services are concerned that, without a clear definition of “emergency and rescue services” in primary legislation, the emergency and rescue services will miss out on the levy proceeds, and that they will be overlooked by the local charging authorities. I will provide some more reassurance in this regard. As I previously set out, under new Section 204Q, local authorities will be required to prepare an infrastructure delivery strategy. The Bill allows us to make regulations stipulating that infrastructure providers should be consulted when preparing the infrastructure delivery strategy. I can commit today to including emergency and rescue service providers as a required consultee for the infrastructure delivery strategy through regulations. That will put the emergency services on an equal footing with other infrastructure providers when the local authority is considering its spending plans for the levy.
I do not believe that there is anything in the drafting of the Bill, or in the design of the new infrastructure levy, that will place the emergency services at a disadvantage. However, I reassure the Committee that, if unintended impacts come to light through our early implementation of the levy through the test and learn approach, we can seek to remedy that through the levy regulations and statutory guidance.
There is also the question of allowing spending on priorities other than infrastructure. We recognise that there are circumstances where local authorities may
wish to have some flexibility to provide revenue funding towards local priorities, and what their communities want to see, which do not meet the natural definition of infrastructure; for instance, a programme supporting local employment in the construction industry or additional support for childcare. For that reason, the Bill contains powers for the Government to bring forward regulations that would enable local authorities to use levy proceeds in this way for funding wider local priorities.
We have published a technical consultation on the infrastructure levy, which considers how the levy regulations could be taken forward in a way that ensures that we are able to prioritise delivering at least as much affordable housing as under the current system, and to deliver priority infrastructure, which is needed to mitigate the impact of development. We are keen to hear from local authorities, developers and communities, through the consultation, to strike the right balance on this issue. I hope noble Lords agree that these stake- holders have an important voice here, and that the Government should give them an opportunity to speak before making a final decision on how to address the matter in regulations.
I thank the noble Baronesses, Lady Hayman and Lady Taylor, for proposing Amendments 314 to 316 and 363, which concern the publication of assessments on the infrastructure levy, relating particularly to the impact on public transport, railway restoration and social infrastructure, and on how the new levy compares to the existing community infrastructure levy. As I emphasised previously, the new levy will aim to capture land value uplift at a higher level than the current system of developer contributions. That means that there will be a greater contribution from the developers to strategic infrastructure, such as enhanced public transport routes and new or improved walking and cycling routes, to support the development of an area. National planning policy is clear that new developments should give priority to pedestrian and cycle movements and facilitate access to high-quality public transport where possible. We want to ensure that the new levy works to support those policy aspirations. Under the provisions in new Section 204N, it is clear that infra- structure can also include improvements to local transport infrastructure, such as roads or railways. A local authority could also choose to spend the levy on improving community facilities and similar social infrastructure. It will be up to the local authority to decide what local infrastructure needs it has and to direct its levy funds to those areas.
Infrastructure delivery strategies will provide scrutiny and transparency as to how levy proceeds are spent and will ensure that the relevant infrastructure bodies have the opportunity to input into how levy revenues are spent, alongside their communities. Our technical consultation on the infrastructure levy explores the design and operation of infrastructure delivery strategies further.
On the publication of a comparison with the community infrastructure levy within 120 days of the Act being passed, I note that much of the detailed design of the community infrastructure levy is set out in the Community Infrastructure Levy Regulations 2010, and the infrastructure levy will be similar in that
regard. We are currently consulting on policy questions to inform the design of the regulations and will further consult on the draft regulations once they are prepared. That means that it will take time for a full comparison to be made and for that comparison to be meaningful.
All local authorities are currently required to publish an infrastructure funding statement, setting out the developer contributions they have secured. We intend to maintain similar reporting requirements under the new levy; it will support the development of direct comparisons between the two regimes. Under the test and learn approach, only a small number of local authorities will adopt the levy initially, so that the policy really benefits from the process of iteration. The local authorities will be supported to introduce their levy charging schedules and their infrastructure delivery strategies, and we will assess what further support they may need during the implementation.
I reassure the Committee that the test and learn approach will be conducted with openness and transparency. The Government will be keen to work with a wide range of stakeholders to make sure that the new levy works as intended. I can commit to publishing an evaluation which will allow us to judge the effectiveness of the levy at an appropriate time. The department has already commissioned a scoping study to develop an approach to the evaluation of the planning elements set out in the Bill, which we expect to report on following Royal Assent. The full evaluation, informed by the findings of the scoping study, will then be commissioned. I hope this provides reassurance that the approach to the implementation of the new levy reduces the need for the formal reporting envisaged in this group of amendments, and that I have persuaded the noble Baronesses opposite that the test and learn approach addresses the underlying concerns raised by the amendments.
Amendments 329 and 360, tabled by my noble friend Lord Greenhalgh, raise the important issue of how the Government intend to apply the levy to publicly funded infrastructure, such as the provision of emergency services. I very much agree with my noble friend that it would not make sense for infrastructure that is provided for the benefit of the general public to be charged a levy for providing additional public benefits. New Section 204D(5)(h) in Schedule 11 provides powers to set out levy exemptions or reduced rates in regulations. It is our intention that publicly funded infrastructure will not be subject to the levy, and we are currently exploring this as part of our levy consultation. That would include infrastructure delivered by the emergency services. Even with such an exemption, all development, including publicly funded infrastructure, will be required to deliver the infrastructure that is integral to the functioning of the site. That may include, for instance, sustainable drainage or safe internal road layouts on emergency services sites. We propose to retain the use of planning conditions and a restricted use of Section 106 agreements to secure such matters.
Amendment 360 also seeks to create an exemption for infrastructure provided by the emergency services in the existing developer contributions system. Local authorities may negotiate a Section 106 agreement only where it is necessary in planning terms. For the
reasons I have already mentioned, it remains important that the direct impacts of public infrastructure can be addressed, under both the new and existing systems. Local authorities are also able to zero-rate public infrastructure in their community infrastructure levy charging schedules.
Amendment 360 also seeks to make further changes to how the existing system takes account of requests for Section 106 and community infrastructure levy funding from emergency services providers, and to when payments towards infrastructure are made. Issues concerning how the existing developer contributions system works are dealt with in policy and statutory guidance for all other infrastructure providers. We do not say anywhere in primary legislation that, when making decisions about developer contributions, local planning authorities should give particular weight to the representations of a specific infrastructure provider. That would unnecessarily constrain local authorities’ discretion.
However, I am content to put on record that the department will happily engage with my noble friend Lord Greenhalgh and representatives of the emergency services to explore how revisions to existing national policy and statutory guidance could address the concerns he raised. I understand that the Housing Minister has already written to him to this effect. While it is not the aim of the Bill to introduce changes to the existing system, I appreciate that it is important that payments under Section 106 and the CIL be made at the appropriate time and that local authorities have the tools to negotiate the timing of infrastructure delivery at the right point. We keep the operation of the existing system under continuous review and my officials will continue to engage with the sector to see if anything else may be needed.