1. Rules not policy
Much criticism is made of the current local plan system. However, the plan system remains, but a new role and process is suggested. Not only will the 500-odd page plans be replaced by a searchable web-based map, but land will only be designated as one of three allocations: "Growth, Renewal or Protected". Policy will be largely limited to the National Planning Policy Framework (NPPF) so that local plans contain development standard rules, on issues such as height, size and density, rather than policy. In Growth and Renewal areas, outline planning permission that meets the plan's rules may be automatically granted. A reduction in complexity is welcome, but this is a very broad brush approach and there is a risk that delay and uncertainty gets pushed to the approval of details stage.
2. Fast and furious
Local plan-making should take 2.5 years, not 10 years, demonstrating the ambitious nature of the proposals. Removing the duty to co-operate; changing the soundness test for new plans to a statutory sustainably test; allowing self-assessment by the council and imposing a new "binding" housing requirement for each local authority are some of the new ideas put forward. Councils will be required to keep to the 30 month deadline, but a sanction tougher than the Secretary of State intervention proposed will be required.
3. Speak now or forever hold your peace
There is a new focus on public consultation at the plan-making stage, and a new "streamlined" approach for consultation when a planning application is submitted. Little detail is provided on this, but it could include reduced consultation periods.
A big area for increased public engagement will be the new design codes. So important is local input on this, that design codes may only be given weight in the planning process if local views have been included. Where local engagement has taken place, decisions on design should be made in accordance with the code. The key thing here will be the level of certainty versus flexibility in the code and how the code is interpreted by developers and decision-makers.
4. Beauty is [not] in the eye of the beholder
There is a great emphasis on building beautiful. A new fast-tack system for "beautiful" schemes is proposed. Applications for high quality development that comply with local design preferences will be "automatically" permitted. So permission may be secured sooner, but probably at a higher cost.
Picking up on the recommendations of the Letwin Review, national policy will require design codes and masterplans to include a variety of development types by different builders. If no local design codes has been produced, the National Design Guide, National Model Design Code and Manual for Streets will apply instead, taking the subjective nature of design away from members.
5. Land value capture rears its head (again)
A complete overhaul of the developer contributions system is proposed and may apply to permitted development rights. CIL and s106 will be consolidated into a new "Infrastructure Levy" set nationally at either a single or an area-specific rate. Unlike CIL, it will be based on the final value of the development and payable before occupation. The levy will not be charged if the value of the development falls below a set threshold, preventing low viability development from becoming unviable. There is no suggestion of a cap. The level of the threshold and levy rates will need to be set with care to prevent developers being disincentivised to achieve more.
There is very little detail on how the infrastructure needed to support the development will actually be delivered within the required timescale. The risk is pushed to local authorities who are expected to borrow to forward fund infrastructure on the back of future levy payments. It is debatable whether local authorities will have the appetite to take the financial risk given that the required levels of development may not go ahead.
6. Infrastructure Levy to pay for affordable housing
The Infrastructure Levy, not section 106, will fund the delivery of affordable housing. The local authority will be able to require affordable housing to be delivered on site, although it is not clear whether how this will be secured; the white paper purports to abolish the use of section 106 agreements but concedes in a footnote that they may remain necessary. The developer will be able to off-set the cost of on-site affordable provision (or provision of land) against the levy liability which is good news for developers in that it prevents double counting. However, it is mooted that the developer will not be able to reclaim an overpayment of the levy in the event that the affordable housing offset is greater than the levy liability.
7. Scaled back EIA
Now, more than ever, the environmental impact of development is key. In addition, the requirement for new local plans to set out local specific development standards, as opposed to general policies, will make it even more important that environmental impacts are properly considered upfront. The current system of Strategic Environmental Assessment, Sustainability Appraisals and Environmental Impact Assessment will be replaced with a "simpler, effective approach to assessing environmental impacts". No further detail is provided but a detailed consultation is expected in the Autumn.
8. Smart planning by smartphone
One of the key reforms is accessibility to planning. The Government has witnessed what has been achieved digitally as a result of the Lockdown and is ambitious about bringing planning it into the 21st Century. Notification and consultation on local plans, design codes and planning applications can take place via a smartphone and standardisation of data means that schemes can be accessed on a digital format and in a way which is much easier for a lay resident to understand.
9. More stick, less carrot
Part of the concern with bringing in such hard-hitting changes is whether the new rules and standards will actually be enforced. The paper says that Secretary of State intervention will take place, but that hasn't proved much of a threat to date. Stronger enforcement powers, including higher fines to combat planning breaches are promised, but again, very little detail is provided.
10. Resourcing boost
The Government acknowledges that this dramatic overhaul is going to take time and money and that councils are already overstretched. It thinks that better use of technology is part of the answer, but developers can expect to foot some of the cost of this too. Planning fees may be increased and some of the new Infrastructure Levy can be spent on resourcing. Support on the skills side is also promised in the form of a "comprehensive resources and skills strategy" to cover the new approach to design and plan-making.
So is this a revolution?
At first glance the key proposals look radical, but the fundamental aspects of the system remain. We will still have a democratic plan-led system; applications will still need to be submitted; and planning gain secured. We'll still have neighbourhood plans and green belt. So, it's not a revolution, but certain proposals are a step forward. The prescriptive rules in the new local plans and the design codes will hopefully bring some much needed certainty for developers. The ambition to create a smart planning system is also to be commended.
What's next?
More detail is needed. We're promised this after the 29 October 2020 consultation deadline. It's going to be a busy Autumn, with changes to the NPPF; a response to the Future Homes Standard consultation; EIA consultation and the National Model Design Code being published. This is all on top of the other consultation launched today on assessing housing need; the First Homes requirement; and extending the Permission in Principle regime. Also included is the temporary lifting of the affordable housing small sites threshold.
There's certainly a lot for everyone to get their teeth into and it will be interesting to see how the public and private sector responses compare. Later down the track, new legislation will also be required to implement many of the changes, once they are decided upon. We'll keep you informed on these events as they arise. Watch this space for further analysis.
