Planning and Infrastructure Bill debate

Labour members of the Commons Planning and Infrastructure Bill Committee voted through Clause 46 in that Bill for delegation of planning decisions. Government guidance is to be produced. Gideon Amos, LibDem MP, said “We are dealing with primary statutory legislation here, and there would be no discretion over its implementation. We are talking about giving him [Mathew Pennycook MP] and all future Ministers, of whatever party, the power to write the delegation arrangements for each local council in the country and tell them what they may or may not be allowed to decide. The Local Government Act will be changed so that Councillors may not have permission to recover such decisions, even if every single member of the council disagrees with a decision. This would be better described not as a national scheme of delegation, but as a forced removal of planning powers from Councillors.”

Clause 44 of the Bill will enable local planning authorities to set their own planning fees and charges to cover their costs. The Committee approved it.

Clauses 83 to 92 relate to compulsory purchase and are designed as a group to improve the compulsory purchase order process and land compensation rules to enable more effective land assembly through public sector-led schemes. They were approved.

A new clause (NC) 39 was agreed to stand as part of the Bill to allow the Secretary of State to make regulations imposing a surcharge on planning application fees. The surcharge must, if imposed, be set by reference to the costs incurred by bodies, listed in regulations, which provide advice in the planning application process, including by way of consultation responses.

NC42 was agreed for right to enter and survey land.

NCs 44 and 45 would omit sections of the Planning Act 2008 which currently require a person who proposes to apply for development consent to consult particular people about the proposed application, including prescribed bodies, local authorities, the local community and persons with an interest in the land in question. The Committee voted by 9 votes to 5 to add the clauses to the Bill.

NC67 and the clauses proposed to be inserted by NC68 to NC71 were added to the Bill in Part 3. They give Natural England powers to enter, survey and investigate land in exercise of their functions under Part 3 of the Bill, and make further provision about the exercise of those powers. This clause allows entry without a warrant. 

There is significant criticism of EDPs in Part 3 of the Bill by Richard Turney KC of Landmark Chambers as here. Opinions of David Elvin KC, Alex Goodman KC, Alex Shattock, David Elvin KC, Alex Goodman KC and Alex Shattock are here. Wild Justice has commenced legal proceedings against the Government’s proposals, as here.

NC 1 would enable local planning authorities to decline planning applications from parties which have failed to build, or make sufficient progress on, projects for which permission has previously been granted.

It was read with the following new clauses:-

• NC15 which would mean that, where a developer has committed in their initial application to providing a certain number of affordable homes, they would be prohibited from lowering that provision based on affordability or profitability,
• NC25 which would prevent developers from seeking to reduce commitments to provide social housing on the grounds of viability,
• NC55 (‘Use It or Lose It’) which would mean that, where permission for a development of 100 homes or more is not used within the applicable period, ownership of the land to which the permission applies passes to the relevant local authority,
• NC60 which would place lower limits on the amount of affordable housing developments which housing must provide,
• NC61 which requires that the Secretary of State must, within six months of the passing of this Act, hold a public consultation on providing local authorities who exercise the functions of local planning authorities with the power to levy additional business rates,
• NC76 which states that a local planning authority may not grant consent for development where there has been intentional unauthorised development in respect of the land or properties which are to be subject to that development,
• NC82 which aims to ensure that commitments to provide local infrastructure such as schools and GP clinics, approved as part of a development, are permanent and legally binding,
• NC83 provides that land designated development as community infrastructure under a S106 agreement will not be returned to a developer to use for other purposes in the event that the original purpose is not fulfilled. It provides instead that land would remain under the control of the local planning authority for development as a community asset.

The Minister, Mathew Pennycook MP, opposed the proposed group of new clauses and said “We are introducing new requirements for statutory build-out reporting by implementing the provisions in the Levelling-up and Regeneration Act 2023 on commencement notices and development progress reports. That will provide local planning authorities and communities with greater transparency about the rate of build-out of developments and any delays that may occur.” 

He added “We have to recognise that economic circumstances can change and that the costs that developers are having to deal with—build material costs have increased significantly, particularly in London—are factors they do have to weigh in their judgments. On the other side of the coin, it is important, in strengthening the section 106 system, that we are ensuring local authorities can negotiate robustly on those agreements and that we hold developers to the commitments that they make. The Government’s intention is to do both.”

The proposed new clauses on developers’ obligations were withdrawn.

The Government has since issued a consultation on a Planning Reform Working Paper ‘Speeding Up Build Out’, with eleven questions.   [note by Peter Eversden – that paper needs consideration for how well it addresses the intentions of the proposed new clauses above.]

NC12 is for the right to appeal against approved applications. Mathew Pennyc0ok said “We do not believe that we should extend appeal rights to third parties, which again would serve only to delay the planning process and hinder the development of new housing and economic development. Although I welcome the sentiment behind the new clause—namely, to deter appeals submitted for spurious or non-planning reasons—in our view there are already appropriate measures in place to respond to such appeals through the awards of cost regime.”  The clause was withdrawn.

A group of new clauses related to statutory consultees. Gideon Amos Lib Dem MP said “We are concerned that the Government are reducing the number of statutory consultees.”  The Minister Mathew Pennycook MP said “The Government have committed to reviewing the system of statutory consultees and will soon be consulting on proposals.”

At its last meeting on 22nd May 2025 the Committee discussed NC106 which would require planning permission to be obtained to change the use of a dwelling to a second home or to a short term let use class and for changes of use between those classes.

Mathew Pennycook MP said “Short-term lets and second homes can benefit local economies. They can be incredibly important for tourism in particular parts of the country. But we are also very aware of the concern that excessive concentrations can affect the affordability and availability of housing to buy and to rent, impact on the sustainability of local services and reduce the sense of local community. There is clearly a balance to be struck. As things stand, it has not been struck correctly. We think that change is needed in this area.”

“To take action on short-term lets, we still intend to introduce a registration scheme for them to ensure the quality and safety of tourist accommodation, provide better data to local authorities and protect the spirit of our communities. In addition, from April 2025 the furnished holiday lettings tax regime was abolished, eliminating the tax advantages that short-term let owners had over private rented sector landlords. Furnished holiday let owners are now subject to the same income, corporation and capital gains tax rules as other landlords.”

“Also, since April this year, councils have been able to charge a council tax premium of up to 100% on second homes. That is a discretionary power: councils can decide whether to charge a premium, at what level and how to use the funding to best support their communities. Lots of local authorities are using the power and are benefiting from what it provides.”

“We are very carefully considering what additional powers we might give to local authorities to enable them to respond to the pressures they are facing, but this is a complex area, and we have to think carefully about introducing these types of restrictions. We need to explore various potential levers that could help better strike that balance between housing and the tourism economy before moving forward.”

NC106 was defeated on a vote.

The Bill as amended will be reported and will go to the Commons Report Stage on 7th June 2025 and then a Third Reading before being considered by the House of Lords.