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Budget 2011 – planning implications

One day the coalition government is being condemned for its Localism Bill, which is currently being progressed through parliament (a Nimby's charter critics say), the next it is accused of burying localism under its new 'Plan for Growth', unveiled in the March budget. Confused? Well, you are not alone. This brief article explains what the government appears to be up to and how the further planning reforms announced in the budget will affect the construction industry.

The new presumption in favour of sustainable development

On the whole, the government's localism agenda for planning, with its abolition of regional strategies and top-down housing targets, and drive towards greater ownership of the planning decision-making process by local communities through neighbourhood plans and neighbourhood development orders, was met with great scepticism by the development industry. There is a widespread perception that neighbourhood planning will simply result in a Vicar of Dibley-style parochial debate over the amount and direction of future development, where negativity, ill-informed judgements and self-interest will prevail. After all, local communities are not normally noted for welcoming further development within their midst.

Apparently stung by such criticism and near derision over its proposed new homes bonus, which many claim will be ineffective, and the paralysis caused by the emasculation of strategic planning, the government has responded by proposing a range of measures to promote sustainable economic growth and jobs. Central to reversing what the government characterises as the 'drag anchor' effect of planning, is a new presumption in favour of sustainable development. The government explains that this is a powerful new principle underpinning the planning system that will help to ensure that the default answer to development and growth is "yes" rather than "no", except where this would clearly compromise the key sustainable development principles to be set out in the new "pro-growth" national planning policy framework (NPPF). This is expected to be published for consultation later this year - with the aim of it being finalised by the end of 2011 - and will distil and consolidate the plethora of existing national planning policies into a single, concise document.

'Tin sheds, Legoland housing and US-style shopping malls'

The Royal Town Planning Institute (RTPI) reacted angrily to the government's proposals, arguing that there is a real danger that within a decade we will end up with an England of tin sheds, Legoland housing and US-style shopping malls. By tying the hands of local councillors, the new presumption would override localism, it fears, and "could mean developers building what they like, where they like, and when they like". The RTPI's views are shared by the shadow cabinet and many in the 'green lobby'.

So what does the new presumption mean in practice? Well, at the moment no-one really knows. A draft wording will be published for consultation in May 2011. Meanwhile, early indications suggest that the government has lost patience with the painfully slow progress made by most local authorities in producing 'new style' development plan documents (DPDs), which seriously undermines the existing presumption in favour of development that accords with the relevant provisions of a development plan. And who can blame it? Within the north-west of England alone, recent figures indicate that only five out of the 44 planning authorities have a core strategy in place some seven years after the 2004 Act and none has adopted a site allocations DPD or a core strategy that identifies strategic sites.

The new presumption is expected to work like this. Where a development would be in accord with an up-to-date development plan that is in line with the sustainable development principles outlined in the NPPF, it should be approved. However, where local authorities do not have plans for development, or plans are silent, out-of-date or ambiguous, the presumption will take effect. The new presumption will thus be a strong incentive to local authorities to expedite the preparation of their DPDs, the procedures for which will be further streamlined, and to local communities to get on and produce neighbourhood plans. Contrary to what most people seem to believe, neighbourhood plans cannot propose less development than is envisaged in a local authority's statutory development plan. They can only propose an equal amount of development or, as improbable as it may be, more development. So the message is clear: if local communities want control over local development, they must produce a neighbourhood plan.

Other key proposals

In summary, other measures proposed include the following:

  • The government will launch an urgent review of the Use Classes Order, which determines how a building can be used, and consult on new permitted development rights to allow vacant commercial premises to be converted into new homes without the need for planning permission
  • Local authorities are exhorted to prioritise growth and jobs in their decisions on planning matters, press ahead with preparing up-to-date development plans, avoid putting unnecessary obstacles in the way of development and review existing section 106 agreements where they make a scheme unviable
  • The government will test the potential for land auctions, starting with public sector land with planning permission
  • Businesses will be given the right to initiate neighbourhood plans and neighbourhood development orders, working in concert with local communities
  • Local communities - and not central government - will set targets for the levels of housing to be provided on previously-developed land. Coupled with recent changes on 'garden grabbing' and residential densities, this should make it easier to secure permission for greenfield development in sustainable locations. However, green belts and nationally important landscape and wildlife areas will continue to be protected
  • The planning application process will be simplified and speeded up. A 12-month guarantee for the processing of all planning applications, including timely appeals, will be introduced
  • A statutory duty will be imposed on councils to co-operate with each other on strategic or cross-boundary planning matters
  • Major infrastructure applications will be fast-tracked and decided by ministers
  • 21 new-style enterprise zones will be set up, where planning controls will be relaxed.
Haven't we been here before?

There is a sense of déjà vu for those of us who worked in development management during the property boom of the 1980s. Following a spate of 'burden-lifting' edicts from the Thatcher government in response to the recession of the late-70s, prior to the current plan-led system there was a similar qualified presumption in favour of development. At that time, a local authority's adopted development plan was to be regarded as only one material planning consideration.

Until local authorities get their development plans in place, or a large backlash grows in conservative 'Middle England', we could be in for another period of 'planning by appeal'. However, many will argue that the government's latest reforms are little short of a cynical attempt to devolve the blame for controversial and often very difficult planning decisions to local communities, having first restricted significantly their room to manoeuvre.

Philip Moren BA(Hons) MRTPI is a planning consultant and regular writer on planning matters. He is co-author of the RIBA Good Practice Guide: Negotiating the Planning Maze. The views expressed in this article are entirely his own.

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