Question 1: Do you agree that we should reverse the December 2023 changes made to paragraph 61?
No, we do not agree. In March 2023, the LGA supported the decision to make housebuilding targets an advisory starting point, giving councils flexibility to take account of local circumstances when determining their housebuilding targets to ensure that development in their area reflects local priorities. This was because the algorithms and formulas used to produce the Standard Method outputs can never be a substitute for local knowledge of an area and decision-making by local authorities and communities who know their areas best.
Reversing the December 2023 changes to the NPPF and making the housebuilding target a mandatory starting point is a centralising policy which removes local decision-making powers and flexibilities over how to objectively develop an area over time.
We are, however, supportive of the Government’s intentions to retain the existing ‘hard’ constraints that would justify a lower housing requirement than the figure the proposed new Standard Method sets, including Green Belt (notwithstanding proposed changes in this consultation), Local Green Space, National Landscapes, National Parks, designated heritage assets and areas at risk of flooding or coastal change.
However, we clearly recognise the need to strengthen and increase housebuilding across the country and believe that all local authorities have their part to play - there is an appetite across the sector to work constructively to improve housebuilding outcomes and local plan coverage.
If mandatory targets are to be introduced it is important that there is a nuanced and pragmatic approach to target setting which goes beyond a simple formula to recognise local challenges, including requirements to help deliver other national missions including economic growth and clean energy, as well as other priorities recognised by the Government such as supporting biodiversity.
Secondly in order both to succeed and to ensure a fair and productive partnership between local and national government, local authorities will need to be given the tools to help deliver. This not only relates to delivering the necessary reforms in the NPPF but addressing other fundamental limitations on housebuilding including:
- empowering authorities to address slow or lack of build-out of permitted sites
- capital funding to support affordable house building
- land supply for housing by public bodies
- tackling the skills and workforce shortages that inhibit construction
- ensuring that housing stock (both existing and future) is used to provide dwelling homes for people through action on empty homes, regulation of short-term lettings and second homes and initiatives to address wasted supply.
Significant pressures on Housing Revenue Accounts are restricting local authorities’ ability to invest in new supply or regeneration of existing sites owing to the cumulative financial burdens of new regulatory regimes, coupled with frozen and stagnating rents.
Question 2: Do you agree that we should remove reference to the use of alternative approaches to assessing housing need in paragraph 61 and the glossary of the NPPF?
No, we do not agree. The algorithms and formulas used to obtain the housebuilding targets in both the existing and proposed new standard method can never be a substitute for local knowledge and decision-making by local authorities and communities who know their areas best. National planning policy should remain suitably flexible to allow authorities, where appropriate, to make judgement decisions on approaches to assessing housing need their local areas (in particular given our concerns to the proposals in Chapter 4). Such decisions must be appropriately evidenced through the development of the local plan and therefore also ratified by the Planning Inspectorate through a plan’s examination.
Question 3: Do you agree that we should reverse the December 2023 changes made on the urban uplift by deleting paragraph 62?
Yes – the LGA did not support the introduction of the 35 per cent uplift in housebuilding targets for the 20 largest towns and cities on the basis that it was an arbitrary figure, with no empirical evidence to support the percentage uplift, and should like to see this reversed by deleting paragraph 62 of the NPPF.
We do however recognise that development in urban locations typically promotes more sustainable transport options and has a greater baseline of infrastructure available to residents than more rural areas.
All local authorities have their part to play bringing forward the homes needed to support our communities, yet to enable more housebuilding in more urban and sustainable locations, in particular on brownfield sites, we urge the Government to review our response to Question 20 which identifies the most common challenges and some potential solutions.
Question 4: Do you agree that we should reverse the December 2023 changes made on character and density and delete paragraph 130?
No - reversing the December 2023 changes to the NPPF, which would allow local authorities to justify meeting a lower housebuilding target and building at lower densities if not doing so would be wholly out of character with an area, is a centralising policy which removes local decision-making powers and flexibilities over how to objectively develop an area over time. The role of plan-making is to not only proactively plan for the growth of housing, employment and infrastructure uses but to ensure that new developments complement and enhance the existing area in which they are to be developed.
Question 5: Do you agree that the focus of design codes should move towards supporting spatial visions in local plans and areas that provide the greatest opportunities for change such as greater density, in particular the development of large new communities?
Yes – the current scope for design codes, in particular authority-wide design codes, is too broad and burdensome for authorities to produce and we agree that the focus of design codes should move towards supporting spatial visions.
However, national policy should be suitably flexible to ensure local authorities are not limited in their choices of how and where to apply design codes.
Question 6: Do you agree that the presumption in favour of sustainable development should be amended as proposed?
The changes proposed to the presumption in favour of sustainable development (NPPF paragraph 11) are flawed despite their intentions.
Our member authorities tell us the speculative schemes which come forward when the tilted balance is in play are often of poor quality and do not contribute to the local housing need of the area. Further, the unplanned nature of these schemes means that no holistic oversight of infrastructure requirements can be undertaken to support the homes and residents that will reside in them. This often leads to reductions in community trust and engagement with the local planning process, as well as reduced support for the development themselves. These developments, and the titled balance in itself, undermines the plan-led system which the Government, and local authorities, are committed to achieve.
The changes proposed to paragraph 11d are laudable; ensuring that developers cannot use the presumption, when engaged, to promote low quality, unsustainable development by introducing explicit references to the need to consider locational and design policies, and affordable housing. However, the proposed changes are flawed as they do not go far enough to remove viability as a material planning consideration.
Viability pressures remain one of the greatest challenges for local authorities trying to bring forward affordable and social homes as well as meeting local planning policy requirements. We welcomed the amendments made by Government in the Planning Practice Guidance for viability in 2019 which stated that the “cost of fully complying with policy requirements should be accounted for in benchmark land value” and that “under no circumstances will the price paid for land be relevant justification for failing to accord with relevant policies in the plan”. However, local authorities continue to report that the planning system is still being undermined by the use of viability arguments from developers to avoid the need to meet local plan policy requirements including the provision of affordable and social housing and providing infrastructure contributions.
We would like to see further amendments made to the viability system – for example, removing the requirement to factor in an assumed developer or landowner return or removal of viability assessments as a material planning consideration entirely. Further, we would urge the Government to urgently review the 2019 amendments to the PPG for viability and assess whether they have achieved their intended objectives.
It will be important to ensure that if the rolling five-year housing land supply test (see our response to Question 7) is re-introduced, in combination with new and significantly increased mandatory housing targets, that it does not result in a significant and marked rise in the number of unplanned and speculative developments in those areas with an out-of-date Local Plan. The ambition to deliver more homes must be measured to ensure that homes are high-quality, in sustainable locations, and supported by the accompanying required local and national infrastructure our communities need.
Question 7: Do you agree that all local planning authorities should be required to continually demonstrate 5 years of specific, deliverable sites for decision making purposes, regardless of plan status?
No, we do not agree that local planning authorities should be required to continually demonstrate 5 years of specific deliverable sites for decision-making. In particular, we do not agree that this must occur for those local authorities with an up to date (5 years or less) adopted plan.
The process of accurately updating records to demonstrate a 5-year housing land supply is a resource-intensive activity that impacts on capacity to progress plan-making. Existing practice recognises that where such a supply has been successfully demonstrated through a local plan examination, it will have been subject to significant scrutiny and can and should therefore be relied on for the 5 years since the plan was adopted.
Furthermore, existing requirements to report on housing delivery in Authority Monitoring Reports is sufficient in ensuring transparency when reporting on the level of existing permissions and the extent to which they have been implemented.
For those local authorities without an up-to-date Local Plan, or whose plans may become out of date soon, the very real risk of the presumption in favour for sustainable development, in combination with new and significantly increased mandatory housing targets, will undoubtedly result in a significant and marked rise in the number of unplanned and speculative developments. The ambition to deliver more homes must be measured to ensure that homes are high-quality, in sustainable locations, and supported by the accompanying required local and national infrastructure our communities need.
As such, more appropriate transitional arrangements should be put in place to prevent an “overnight” flip to speculative development. Given the average time taken to prepare Local Plans, we could be entering a phase of ad hoc poor quality housing developments determined at appeal, which may entirely erode local trust in the planning system whilst simultaneously draining the already limited resources within planning departments.
This is not to down-play the role local authorities want, and are ready, to play in delivering the homes we need, but the national approach must be more practical and not undermine local leaders and communities.
Finally, we would urge the Government to give consideration as to what is meant by “deliverable” should the 5-year housing land supply test be re-introduced.
Question 8: Do you agree with our proposal to remove wording on national planning guidance in paragraph 77 of the current NPPF?
The proposals in the consultation are unclear – the Government must clarify if the proposals intend to remove the ability to consider past oversupply, or simply to signpost authorities to use the Planning Practice Guidance.
We believe that planning practice guidance can provide useful and detailed guidance to supplement the NPPF on detailed matters such as how housing supply data should be calculated and offers scope to be easily updated as necessary. We recognise the need for even successful house building authorities to continue to play their part in housing delivery, however the removal of wording on past oversupply, introduced to set out that previous oversupply could be set against upcoming supply without reference to land availability or other practical constraints that may have been impacted by previous delivery, needs further thought.
We support an approach which takes into consideration the historic oversupply of housing in early years of plan periods when calculating the proposed re-introduction of the 5-year housing land supply test. This better reflects the nature of development in local areas, for example large numbers of units in flatted developments tend to ‘be delivered’ at the same time rather than phased, whilst large sites can take many years of planning lead in time. The approach also ensures that proactive local authorities seeking to deliver higher numbers of housing in their local areas are not subject to punitive measures (the tilted balance) later in their plan period.
Question 9: Do you agree that all local planning authorities should be required to add a 5 per cent buffer to their 5-year housing land supply calculations?
No – whilst in practice it may be sensible to apply a buffer to reflect the dynamic nature of the housing and development market, in this case and in combination with significantly increased mandatory housing targets, the buffer simply acts as an increase in the figure against which local authorities will be held to account for the supply of land for new homes. This will only serve to continue to undermine a plan-led system in areas of the country without an up-to-date Local Plan.
Question 10: If yes, do you agree that 5 per cent is an appropriate buffer, or should it be a different figure?
We do not agree with the use of a 5 per cent buffer on five-year housing land supply calculations.
However, particularly in the event the 5 per cent buffer is introduced, retaining the additional 20 per cent buffer where there has been significant under-delivery over the previous 3 years (as set out in NPPF paragraph 76b) is considered excessive.
The LGA have long raised our concerns about how the Housing Delivery Test penalises local authorities and communities for non-delivery of permitted homes, which is out of their control, when they have few levers to incentivise the build-out of sites by developers once sites have been allocated and granted permission. Authorities should be given powers to charge full council tax for every unbuilt development from the point the original planning permission expires. It should also be made easier for councils to use compulsory purchase powers to acquire stalled housing sites or sites where developers do not build out to timescales contractually agreed with a local planning authority. Other “use it or lose it” reforms could include raising the threshold for considering pre-commencement conditions to have been discharged. We also urge the Government to work with the sector to redefine what is meant by “start” on site to ensure it results in meaningful efforts to commence construction.
Further, development cycles can fluctuate significantly over a short-term period as a result of wider global economic factors and investment confidence – for example, much of the recent slowdown in build out of permissions can be attributed to the impact of Covid-19 and Brexit.
If a buffer for under-delivery is maintained, it is suggested this should be set significantly lower than the current 20 per cent, and relate to a 5 year time period to better align with requirements to demonstrate a 5 year housing land supply.
Question 11: Do you agree with the removal of policy on Annual Position Statements?
Yes – we agree with the removal of policy on Annual Position Statements.
Question 12: Do you agree that the NPPF should be amended to further support effective co-operation on cross boundary and strategic planning matters?
As outlined in the LGA’s Local Government White Paper, Government should enable councils to deliver on inclusive growth via meaningful devolution, recognising the valuable role of local authorities in shaping places. The devolution of Spatial Development Strategies (SDSs) recognises that local authorities are best placed to work collaboratively together and tackle cross-boundary challenges such as housebuilding, delivering infrastructure and climate resilience.
The LGA welcomes the commitment to achieve universal coverage of strategic planning in England but would strongly encourage the Government to empower local authorities to take the ownership of the form in which it takes, enabling those who want to work together to develop strategic plans.
We have long argued that it is important that those areas that are unlikely to support a mayoral combined authority (MCA) or who do not currently possess an MCA should not be consigned to the devolution 'slow lane'.
There are certainly positives in the Government’s ambition to implement regional strategic planning. If done well, this provides the opportunity to galvanise community partners, businesses and residents towards a shared agenda. Further, consistency in the powers available across MCAs on spatial planning is welcome, as this is currently very varied.
Requiring local leaders to develop SDS’ is a resource-intensive and time-consuming exercise. It is imperative that this new requirement on authorities is accompanied by measures to ensure local government is sufficiently resourced to deliver this new burden – both in terms of finances and sufficiently skilled and experienced planners/staff to undertake the work. Overall, there is a significant challenge in resourcing local planning authority teams and retaining staff with necessary specific skills. We note the Government has started to take action to increase number of planners in the public sector through the Pathways to Planning scheme, Public Practice and the announcement of a further 300 planners in local authorities as part of the new Government’s manifesto. However we must continue to highlight that these schemes will not automatically decrease the number of vacancies for staff with specific skills across the country, nor will it solve historic issues of staff retention.
Our key observation is that it should be ensured that constituent local authorities, and local communities, have a meaningful voice and role within regional approaches to spatial planning which should be led at a local or locally agreed appropriate level.
One such lesson is the need for consistency in policy from Government. Places for Everyone (page 132) utilised the accepted methodology within the previous NPPF to calculate allocations for the nine districts. However, the proposed reintroduction of mandatory housing targets, compiled under a new formula, will set levels well above those contained in Places for Everyone. Given the extended period of time taken to deliver the Greater Manchester spatial framework, should the Government roll this model out more widely, it will be critical that areas have the consistency required in policy in order to effectively plan for the future.
The recognition that “we will need to consider both the appropriate geographies to use to cover functional economic areas, and the right democratic mechanisms for securing agreement” is also valuable. As we have already set out, the LGA recognises the value of planning on a coherent local basis, and we would welcome further clarity on the Government’s meaning and understanding of functional economic areas across England and Wales. Local authorities should always be given the flexibility to influence the geography that is most appropriate for local needs, as opposed to a burdensome central directive.
Furthermore, we would welcome further information on how SDSs will be administered in non-mayoral combined authority areas. The creation of such a strategy should be collaborative in nature, locally-led and with a governance arrangement which allows all participant local authorities to input a verdict on decision making.
We would seek clarity on the Government’s intention for those areas that agreed a devolution deal prior to the most recent General Election without the passage of the required statutory instrument.
Furthermore, we are interested in how the roll out of strategic planning will align with the Government’s intention to progress with devolution in areas currently without a settlement. Whilst the LGA recognises the need for local areas to determine the geography that works best for local circumstances, we would advocate for contiguous arrangements between different schemes where possible.
Local authorities are currently being asked to produce a range of spatial land strategies (Local Nature Recovery Strategies, Local Energy Plans, Local Plans etc). Even Local Growth Plans will require an element of spatial thinking. These plans are unlikely to naturally align as requirements for renewable energy, housing and environmental protection amongst others come into contact. It will require local joined-up action to best manage the increasing demands on finite land. Local government is best placed to oversee local coordination and we would welcome the chance to discuss this with Government.
The LGA is keen to work with Government on its intent ‘to identify priority groupings of other authorities where strategic planning – and in particular the sharing of housing need requirements – would provide particular benefits.’ Local authorities already display the benefit of planning on a cross-boundary nature, including in the development of housing. Where joint working can be demonstrated, it would be logical to prioritise the roll-out of strategic planning including the joint exercise of housing need requirements.
Finally – we would urge Government to prioritise this area of policy, and the accompanying legislative programme, to bring about detailed guidance and engagement with local authorities as quickly as practical to ensure no delays in the plan-making process.
Question 13: Should the tests of soundness be amended to better assess the soundness of strategic scale plans or proposals?
Yes – the tests of soundness for a Local Plan will be different to those at a strategic level, as acknowledged in the consultation. Deliverability and viability at this strategic level is not a reliable test, and yet environmental impact is possibly more relevant.
We recommend the Government review the RTPI’s recent publication Strategic Planning in England.
Question 14: Do you have any other suggestions relating to the proposals in this chapter?
The Government must give urgent clarity to the sector on whether or not the number of homes identified and brought forward through the work of the New Towns Task Force will factor into the new mandatory housing targets. We argue that they should.
Local authorities greatly support neighbourhood plans. Clarity is required on the future role of these plans both with regard to the proposed new housebuilding targets but the Government’s future approach to this valued and productive level of planning which directly engages communities and encourages locally supported growth.
Finally, we wish to reiterate the very real concerns shared by local authorities about the punitive and disenfranchising implications that mandatory housing targets, the re-introduction of the 5-year housing land supply test, and the Housing Delivery Test will have with regards to plan-making.