Matthew Pennycook MP: speeches 2024

Speeches

• 12 Dec 2024 · Building Homes · Hansard source

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  With your permission, Mr Speaker, I would like to update the House on our plan to build the homes our country so desperately needs. This Labour Government were elected five months ago with a mandate to deliver national renewal. Standing on the steps of Downing Street on 5 July, the Prime Minister made it clear that work on that urgent task would begin immediately, and it did. Within our first month in office, we proposed a bold set of reforms to overhaul a planning system that is faltering on all fronts after a decade of piecemeal and inept tinkering by the Conservative party. Today I confirm to the House that we are delivering the change we promised by publishing an updated national planning policy framework, meeting our commitment to do so before the end of the year, and supporting our ambitious plan for change milestone of building 1.5 million new homes in this Parliament. The case for grasping the nettle of planning reform in order significantly to boost housing supply and unleash economic growth is incontrovertible. England is in the grip of an acute and entrenched housing crisis, and as you, Mr Speaker, and every Member of the House will know, its detrimental consequences are now all pervasive: a generation locked out of home ownership; 1.3 million people languishing on social housing waiting lists; millions of low-income households forced into insecure, unaffordable and far too often substandard private rented housing; and, to our shame as a nation, just shy of 160,000 homeless children living right now in temporary accommodation. Our economy and the public services that our constituents rely on are also suffering, because as well as blighting countless lives, the housing crisis is consuming ever larger amounts of public money in the form of a rapidly rising housing benefit bill. It is also hampering economic growth and productivity by reducing labour mobility and undermining the capacity of our great towns and cities to realise their full economic potential. The Government are under no illusions about the scale of the task before us or the challenges that must be overcome and the pitfalls avoided if we are to succeed. But we are absolutely determined to tackle this crisis head on. The previous Government, of course, took a different view. Not only did they fail to meet, even once, the target of 300,000 homes a year that they set themselves, but in a forlorn attempt to appease their anti-house building Back Benchers, they consciously and deliberately chose to exacerbate the housing crisis by making changes to national planning policy that have contributed to plummeting housing supply. We know that the changes required to start putting things right will be uncomfortable for some. We know we will face resistance from vested interests. But this Labour Government will not duck the hard choices that must be confronted to tackle the housing crisis, because the alternative is a future in which a decent, safe, secure and affordable home is a privilege enjoyed only by some, rather than being the birthright of all working people. Let me turn to the changes that we are making to the framework. We received more than 10,000 responses to our consultation, alongside which my officials and I have held extensive engagement with private house builders, affordable housing providers, local authorities and other organisations from the sector. The views shared with us have been invaluable in helping to refine our initial proposals so that we are able to introduce an effective package of reforms. Before I set out a number of important areas in which we have made changes, let me touch briefly on some of the proposals that we intend to implement unamended. First, we have reversed the anti-supply changes introduced by the last Government almost exactly a year ago. From the abandonment of mandatory housing targets to the softening of land supply and delivery test provisions, the policies that gave local authorities the freedom to plan for less housing than their nominal targets implied are no more. Secondly, we have made explicit the importance of growth supporting development, from labs to data centres, to supply chains and logistics. In the same vein, we have made clear that the default position for renewable energy deployment should be yes. Thirdly, we strongly promoted mixed tenure development, reflecting robust evidence that attests to the fact that such developments build out faster and create diverse communities. Fourthly, we have made a series of changes to bolster affordable housing delivery and enable local authorities to determine the right mix of affordable housing for their communities. That will support our commitment to deliver the biggest increase in social and affordable house building in a generation. There are four important areas where we have refined our proposals, and I will turn first to housing targets. As we made clear when launching the consultation in July, restoring a mandatory standard method for assessing housing needs is insufficient if the method itself is not up to the job. As the House will know, we proposed a bold change, increasing the total annual national target from 300,000 to 370,000, ending the reliance on decade-old population projections, and removing the arbitrary 35% urban uplift that resulted in a skewed national distribution that was disproportionately focused on London to the detriment of the rest of the country. We fully intend to maintain the level of ambition outlined in July, but we heard through the consultation a clear view that we should do more to target housing growth in those places where affordability pressures are most acute. We have therefore made the method more responsive to demand, redistributing housing targets towards those places where housing is least affordable, while maintaining the overall target envelope. Next, let me turn to our reforms to the green belt. As the House knows, ours is a brownfield-first approach to development. As a result of a number of targeted changes we are making to the framework, and our proposals for a brownfield passport, we are prioritising and fast-tracking building on previously developed urban land wherever possible, but we know that there are simply not enough sites on brownfield land registers to deliver the volume of homes that the country needs each year, let alone enough that are viable and in the right location. In the summer, we proposed that local authorities take a sequential approach to releasing land to meet their housing need: brownfield first, followed by low-quality land in the green belt and only then higher-performing land. To identify low-performing sites we proposed a definition of grey-belt land that reflected the fact that there are areas currently designated as green belt that contribute little by way of aesthetic, public access or ecological value. That approach received broad support through the consultation, but a strong desire was expressed to limit the room for subjectivity. We have therefore set out a clearer description of how to assess whether land meets the definition of grey belt, and we will be providing further guidance to local authorities in the new year to support them with green-belt reviews. At the centre of our green-belt reforms lies our golden rules, which are designed to make sure that where green-belt land is released, the public derives real benefit from development on it, including more affordable housing to meet local need. In the consultation, we proposed a flat 50% affordable housing target, but we recognise that because land values vary across the country, the limited use of viability assessments should be permitted. Through the consultation, we have recognised that that approach risked uncertainty. If flexibility was needed in some parts of the country because land values were lower, the precise amount of affordable housing to be secured would become a protracted site-by-site negotiation. If a local authority did not allow flexibility, there would be a risk that sites were rendered unviable, with the result that no houses, affordable or otherwise, would get built. Our final policy therefore takes a different approach to managing variation in land values. Rather than a single 50% target, we are introducing a 15 percentage point premium on top of targets set in local plans, up to a maximum of 50%. Because that means the target itself will be responsive to local circumstances, we will be restricting the ability for site-specific viability assessments until such time as we have amended viability guidance in the spring of next year. By prioritising pragmatism over purity, the golden rules we are putting in place today will give communities the confidence that they will be met and will maximise the number of affordable homes delivered across the country. Another area where we have made changes is to the presumption in favour of sustainable development. The presumption sits at the heart of the national planning policy framework and means that where a local authority has under-delivered or an up-to-date local plan is not in place, the balance of decision making is tilted in favour of approval. We are determined to ensure that where the presumption applies, it will have real teeth. At the same time, we are clear that development consented through it must be consistent with the clear requirements in national policy relating to sustainability, density, design and the provision of affordable homes. The changes we have made deliver on both those fronts. Finally, in the consultation we sought views on how our changes apply to local authorities at an advanced stage of plan making. Our proposed transitional arrangements aim to strike a balance between maintaining the progress of plans at more advanced stages of preparation, while maximising proactive planning for the homes our communities need. The core of our proposal—that we only hold back a draft plan where there is a significant gap between the current proposed housing requirement and the new housing target—was well supported. However, we are making three changes. First, we have taken on board concerns that the transitional period was too tight, so we will provide local planning authorities with an extra two months to progress their plans, extending the transitional period from one month to three. Secondly, and again responding to an ask we heard repeatedly from councils, the transitional arrangements will apply where the draft housing requirement in the plan meets at least 80% of local housing need, rather than the numerical 200 homes threshold we originally proposed. In those instances, the plan will not be held back. Thirdly, where plans are adopted under these arrangements, and where there are existing plans based on the old targets due to run for a number of years yet, we want to see the level of ambition raised sooner rather than later. As a result, from 1 July 2026, we will expect authorities with plans adopted under the old standard method to provide an extra year’s worth of homes in their housing pipeline, helping to accelerate the delivery of new homes. We recognise that we are asking much from many local authorities, and we are determined to support local leaders trying in good faith to deliver homes for their communities. That is why across dedicated local plan funding, the planning capacity and capability support announced at the Budget and income from raised fees, we will be injecting more than £100 million into the system in the coming year. We are confident that the revised framework that we are introducing today will support significantly higher rates of house building and sustained economic growth. We have listened carefully to the views expressed in the consultation and adjusted several areas of policy accordingly; now it is for others to do their part. Developers must turn supportive words into action, bringing forward new sites and building them out at pace. Local authorities must embrace the challenge of higher targets and push for more and better development in their areas. We have moved fast. We have not held back. We have not shied away from controversial decisions, or wavered in the face of those who have sought to chip away at our resolve. With focus and determination, we have pushed on to ensure that we are putting in place a planning system geared toward meeting housing need in full and unleashing economic growth. Change will take time as homes are not built overnight and our dire inheritance means that the climb out of the trough we are in will be a steep one, but by implementing this revised framework today, we have taken another decisive step toward a future in which everyone will enjoy a decent, safe, secure and affordable home in which to live.

• 12 Dec 2024 · Building Homes · Hansard source

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  My hon. Friend makes a good point. Viability is stalling development in lots of areas in the country. We need to look at what support can be put in place for particular schemes—our new homes accelerator, for example, is providing planning capacity support and other forms of support—and at why some schemes, particularly consented or near-consented large schemes, are being held up. As I have said before in the House, we are giving further thought to how we examine these issues, and to what more we can do to ensure that consented schemes are built out in good time.

• 12 Dec 2024 · Building Homes · Hansard source

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  I return to a point that I have made several times during this statement. The onus is on local communities and elected leaders to put in place up-to-date local plans that shape where development is to take place. I know from previous conversations with the right hon. Lady that she wants brownfield-first developments—so do we. We have put in the framework published today a number of targeted changes to support the delivery of brownfield sites. We have also consulted, through a working paper soft consultation, on proposals for a brownfield passport to further accelerate and fast-track brownfield development. Local areas can look to bring forward and densify brownfield sites. However, in response to the point that there are not enough such sites, or that communities cannot work across boundaries with neighbouring authorities, we are saying, “Please look at the release of low-quality land within the green belt.”

• 12 Dec 2024 · Building Homes · Hansard source

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  Because I have outlined my position many, many times before. I objected to a 1,500-home scheme that I thought was poor quality—I thought we could do better. It is very interesting, I note to Opposition Members, that consent for that was given many years ago, but not a spade has been put in the ground. That is the type of speculative development we need to see less of. We need more planned development through the planning system. I will briefly answer the hon. Gentleman’s questions. We cannot put a precise number on the proportion of homes under the 1.5 million target that will be affordable for the following reasons. We expect to see many more social and affordable homes come through developer contributions. Our golden rules, which apply to the release of land through the green belt, will ensure that the proportion rises—that 15% premium on local affordable housing rates. As the hon. Gentleman will be aware, affordable provision is partly related to grant funding from Government. We will set out details of future investment in next year’s multi-year spending review, along with what the successor to the affordable homes programme looks like and the precise split between social rented homes and other forms of tenure. We have been very clear that we want to maximise the delivery of social value homes. Details on planning capacity will be set out in the response to the consultation. The £100 million figure I cited is the amount of support in the round going into local plan support, planning capacity and capability support and other things. On migration, the hon. Gentleman knows as well as I do that the majority of homes that developers sell in this country are to British nationals; that most parts of the country have local allocation rules and residency requirements that mean that non-British nationals cannot access housing; and that only those who are eligible for no recourse to public funds can do so. He knows those rules. It is scaremongering; it is beneath him. I know that the hon. Gentleman does not really believe that, and that the House does not believe that either.

• 12 Dec 2024 · Building Homes · Hansard source

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  I have been very clear about this. We have dropped the arbitrary 35% uplift introduced by the previous Government, which bore no relation to housing need. Metro area targets are going up. The hon. Gentleman will find out from the specific targets, which have been produced by our redistribution of the formula within that envelope, what the new numbers are for his two local authorities.

• 12 Dec 2024 · Building Homes · Hansard source

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  The hon. Gentleman, like my hon. Friend the Member for Sheffield South East (Mr Betts), has great expertise in this area. He will know that local authorities already have powers to issue a completion notice to require a developer to complete a stalled development. To bring greater transparency and accountability to this area, we seek to go further by taking the necessary steps to implement build-out reporting. I assure him that I am giving a lot of attention to what more we might do on build-out, because developers have made commitments to increase the pace of build-out across the country. We need to make sure they follow through with that.

• 12 Dec 2024 · Building Homes · Hansard source

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  I have made clear the point on urban areas and how the 20% increase across the board means we are asking more of all parts of the country. I say gently to the hon. Lady that she speaks as if there are no housing pressures in her constituency. People want homes in her constituency to rent or to buy as much as in any other part of the country. Yes, the targets are stretching but they are achievable, either through brownfield development from the release of low-quality grey-belt land within the green belt, or through cross-boundary strategic planning.

• 12 Dec 2024 · Building Homes · Hansard source

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  I thank the Chair of the Environmental Audit Committee. He is right: we have made a number of changes to the framework to further strengthen references to climate mitigation and adaptation. We have made a number of other changes relating to flood risk and sustainable drainage systems, and how we can support those through the planning system. On BNG specifically, I am more than happy to have a detailed conversation about our thinking on how to successfully roll out BNG across the country and ensure that it works not just on large sites, but on small sites in particular.

• 12 Dec 2024 · Building Homes · Hansard source

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  The hon. Gentleman’s point is well made. We are determined to drive up the coverage of up-to-date local plans. We want universal coverage: that is the way to secure sustainable development in which communities can have confidence because they have been able to shape it. When areas refuse to engage, we will take appropriate action. Today we are setting a 12-week deadline for local authorities to give us a timetable detailing how they intend to put local plans in place, through various measures relating to the transitional arrangements, and how the new six-year housing land supply will bite. We think we can incentivise authorities to come forward and put those plans in place. Where they do not do so, however, we will not hesitate to use the full range of ministerial intervention powers at our disposal. The last Government introduced deadlines and let them slip repeatedly, but we will not make the same mistakes. We will ensure that up-to-date local plans are put in place so that we end the speculative out-of-plan development that, as I said, communities across the country are rightly taking issue with.

• 12 Dec 2024 · Building Homes · Hansard source

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  My hon. Friend has real expertise in this area. We are making a distinction between social rented homes—the most affordable type of affordable housing—and others, and we have sought to express that through a change to the glossary in the framework that separates social rented housing from other forms of housing. He is right that brownfield delivery involves additional challenges. We are very cognisant of those, and we are exploring how the variety of Government funds that support the delivery of brownfield sites might be improved as we go forward.

• 12 Dec 2024 · Building Homes · Hansard source

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  My hon. Friend is right. The Conservatives can try to scrub the record all they like, but it speaks for itself. The so-called planning concern group in the last Parliament persuaded the previous Government to make changes to the national planning policy that allowed local areas to plan for fewer homes than their target required. That has led to a rush of plans coming in “under number”, some of which we will have to undo through changes in the framework. As I have said, we are making targeted changes to the framework to support the delivery of infrastructure provision. The Government also support essential infrastructure, especially in the areas that are most unaffordable, through a range of spending programmes. On infrastructure-led development and quality, supported by our framework changes in the presumption for saleable development, we are determined that there is not a rush to 1.5 million regardless of what the units look like. They must be well designed, quality units, with the infrastructure, amenities and services that communities need in order to thrive.

• 12 Dec 2024 · Building Homes · Hansard source

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  Local authorities are already required to put in place plans for infrastructure delivery, and to set out how that infrastructure is funded and should come forward. We have made a number of targeted changes to the framework today, to support the delivery of infrastructure. That will not be not the last word on our reforms to the housing and planning system, and we are considering what more we can do to ensure that we get infrastructure for developments up front, in the way that communities want.

• 12 Dec 2024 · Building Homes · Hansard source

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  I thank the right hon. Gentleman for his compliment at the outset of his comments. I do not agree with him for the following reasons. We are not abolishing the green belt but preserving it. We think it has played a hugely important role over recent decades, not least in checking unregulated urban sprawl. On his constituency, I say to him gently that I do not know how he can know the definition of grey belt when we have just published it. He does not know how much grey-belt land there is in his constituency, but in parts of the country like his, the answer lies in cross-boundary strategic planning, so that we can sensibly plan for housing growth, rather than every local area having to account for those numbers on its own.

• 12 Dec 2024 · Building Homes · Hansard source

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  I refer the hon. Gentleman to my previous answers on that point.

• 12 Dec 2024 · Building Homes · Hansard source

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  I look forward to my visit to Ebbsfleet, which is now building out at a faster rate than it was. We welcome its contribution. I have already referenced the changes we intend to make to strengthen the existing developer contribution system to get more out of section 106 agreements. There is more we can do in that area and, of course, through Government investment in affordable housing. We will bring forward more details in the spending review next year.

• 12 Dec 2024 · Building Homes · Hansard source

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  The hon. Gentleman makes a somewhat cryptic statement. Perhaps the point he is driving at is related to golden rules. One of the changes we have made that puts pragmatism above purity is dropping the straight 50% requirement across the country, and looking at how we can get more locally sensitive rates by putting in place a 15 percentage point premium on local affordable housing targets. In the round, we think that will provide more certainty and maximise the delivery of homes coming through that route.

• 12 Dec 2024 · Building Homes · Hansard source

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  I am pleased that the hon. Gentleman’s area is working in co-operation with its neighbours. As he knows, we have in place a duty to co-operate; it has not been particularly effective and we think we need to go further on strategic cross-boundary planning. To those parts of the country that wish to densify their town centres, we fully support that and are open to any conversation in particular areas about what more they think needs to come forward to allow them to bring forward plans to rejuvenate town centres and bring more residential development back into them.

• 12 Dec 2024 · Building Homes · Hansard source

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  We need consistency in national policy. We had too many changes to the national planning policy framework under previous Governments. We intend this to be the big change in terms of substantial policy development. There will come a point next year when we will look to consult on NDMPs, and we will have to make changes to the framework to account for the evolution of those. As I said, today’s statement sets out the big changes we intend to make, and we want them to hold and to be delivered through this Parliament. On local planning capacity and capability, I made reference in my statement to the £100 million of funding that is being injected into the system, in particular as part of the transitional arrangements to help local authorities that will fall foul of the requirements set out in the new framework today.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  I thank the right hon. Gentleman for that question. We have to take steps to fix the ailing planning system that we have inherited. It is failing on a number of fronts, and trust and confidence in it is at a record low. As for the assertion that we have heard, for all the hyperbole from Conservative Members, we are not seizing power from the centre. We are saying to local communities, “Put an up-to-date local plan in place, and when sites are allocated through that local plan, you can be confident that they will be built out in the manner that you have specified. It is through local plans that you get your control.” However, when it comes to the decisions on specific sites, let us ensure, if we can, that elected members are directed towards the most significant and controversial applications, as opposed to some of the minor applications that involve technical reserved matters questions. I have sat on a planning committee; I do not know whether the right hon. Gentleman has. In the case of those applications, the initial decision can be re-litigated and revisited, rather than the technical issues being put to us. Let us ensure that those decisions sit in the hands of trained planning professionals, and get planning committee member time focused on the applications that deserve it.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  My hon. Friend is absolutely right about the importance of local empowerment and of local communities shaping development in their areas—most importantly, as I have made clear in answer to several questions, through up-to-date local plans. My hon. Friend will forgive me if I do not comment on the specifics of the development corporation in his area, but on planning officers more generally, the Government want to make sure—this is what we are testing through the proposals in the working paper—that skilled planning officers in local authorities have the right level of trust and empowerment to resolve select applications more quickly in the service of residents and business. We also want to ensure that planning professionals are fully supported in their roles, and that their experience and skills are put to best use, which will allow members to focus on the most significant and most controversial applications, including those out of line with up-to-date local plans.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  Indeed, Mr Speaker, and I get a strong sense that an Adjournment debate application will be coming your way on several of those issues. Let me address a number of them. The hon. Gentleman says that training is in place in most parts of the country, in which case local authorities should have no problem with mandatory training being requested by the centre, and only a small number of authorities—if it is a small number—would have to put such training in place. The hon. Gentleman makes points on capacity and planning fees. I hope he will have seen in the recent consultation on proposed reforms to the national planning policy framework that the Government set out proposed changes to planning application fees and also sought views on the localisation of such fees. In response to the hon. Gentleman’s specific question, I would encourage him to read the working paper. Most planning committees make well considered and fair decisions most of the time, but we know that there is practice out there of planning committees making decisions that are not in accordance with material planning considerations, repeatedly revisiting and re-litigating the planning answers. We have to look at how we can streamline that process, and I encourage him to engage with that work.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  It is true. The Office for Budget Responsibility is projecting that supply will dip below 200,000 homes this year, and the affordable homes programme is on course to deliver between 110,000 and 130,000 affordable homes, not the original 180,000 that were allotted to it. We are taking steps to increase the supply of social and affordable homes, including using the £500 million in additional funding secured for the affordable homes programme in the recent Budget.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  On many sites across the country there are genuine reasons, including those of viability, why sites are not built out. It is not as simple as saying that every consented site that is not being built out is being sat on deliberately by developers, but we know that land is traded speculatively. I want to reassure my hon. Friend and constituency neighbour that, as I have made clear in answer to previous questions, there are existing powers that we can consider bringing into force, and there are measures that we took forward in the consultation on the national planning policy framework that we think will help build-out, particularly on proposals around mixed-use sites, but there is potentially more that we can do in this area and we are keeping the matter under close review.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  My hon. Friend is right. These are sensible, proportionate changes to streamline the delivery of housing across the country—housing that we desperately need. If the Conservatives want to put their heads in the sand and resist reform in this area, all they will be doing is digging their long-term electoral grave. The people of this country want good homes and good neighbourhoods to live in. That is what we are determined to bring forward.

• 9 Dec 2024 · Planning Committees: Reform · Hansard source

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  My hon. Friend is absolutely right that there are good examples of training across the country. Hon. Members seemed to indicate earlier that they thought that mandatory training for councillors was in place. It is not in place. We know there are good examples out there, but provision is inconsistent, and we think that we need to take forward mandatory training to ensure that all councillors have the necessary knowledge to make the best decisions on individual applications. On my hon. Friend’s point about trading of land, she is absolutely right. There is far too much speculative development in this country. We have a dysfunctional land market. Again, I come back to the importance of up-to-date local plans. It is through up-to-date local plans that communities have the ability to shape development in their area in the best possible way in accordance with their wishes. On build-out more generally, we are considering what options might be available to us to ensure that the build-out of consented sites goes forward, alongside our new homes accelerator, which was announced a few months back.