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Client briefing: The new London Plan in an evolving planning system

We live in interesting times. Our current town planning system is no different and can expect significant changes as we move through 2020 and beyond.

On 13 March, in a quite personal attack, the Government set out why the new strategic plan for London was not reflecting national policy, and that the housing delivery track record for the capital was unacceptable. This will undoubtedly make other Metro mayors sit up and take notice too, as they prepare new strategic plans.

Furthermore, stronger signals are coming out from this Government about more radical changes to the planning system in the near future. Most recently hinted in the Chancellor’s budget and then followed a day later with some detail by Housing Secretary Robert Jenrick MP (Planning for the Future, 12 March 2020) it is clear that this new Government with a parliamentary majority is a very different Government to the previous one.

This Government indicates that it will be bold and ambitious in its new planning agenda. We can expect even more focus on the 300,000 new homes per annum target (against last year’s 241,000); greater reference to the national ‘levelling up’ economic development agenda away from London; and greater flexing of muscles on local authorities with out of date Local Plans in the stronger housing market locations.

The eagerly anticipated Planning White Paper is coming in the ‘spring’, and is likely to be published before Spending Review in the summer. At the start of the year, the Policy Exchange produced the fairly radical Rethinking the Planning System for the 21st Century. Its lead author Jack Airey now sits as a SPAD in No.10 and his thinking as expressed will likely bear influence on the Government and its White Paper in the months ahead. A faster and more reliable system remains to be an underlying desire of the Government.

In respect of the forthcoming White Paper, early indications include:

  • Planning fees reform to support LPA resourcing, potentially performance related
  • Automatic refund of fees for successful planning appeals
  • Stronger encouragement for land owners to build out permissions
  • Greater use of land zoning tools to simplify the process of granting planning permission
  • Enhanced use of a simplified CPO process 
  • A review of the formula for how local authorities calculate their housing need to encourage enhanced build out rates in urban areas
  • A greater emphasis on building above and around stations

To drive the expected levels of housebuilding, it is understood that further forthcoming MHCLG measures include:

  • All local authorities will be required to have an up-to-date local plan by December 2023 or face central Government intervention.
  • New permitted development rights (PDR) to encourage building upwards by the summer, and consultation on allowing the commercial building demolition where replaced with housing through PDR. 
  • Changes to the New Homes Bonus to incentivise greater delivery, and ensure that such authorities have access to greater funding to provide services.
  • Launch of a "national brownfield sites map" next month.

We can expect an updated National Planning Policy Framework as a result. This is likely to reflect the Building Better Building Beautiful agenda (Living with Beauty, Promoting health, well-being and Sustainable Growth, January 2020) which can arguably support the subjective process of design judgements to become more predictable – notably where design codes are used. In planning appeals, the Rosewell Review of late 2018 is seen by the Government as a success, with cases being dealt with far quicker and the use of technology increasingly supporting greater transparency and speed.

The ongoing challenge of local planning authority staffing resources appears to be here for the long term, and their challenge will be to work smarter in an ever more sophisticated professional world with more issues, and greater levels of analysis to contend with. No doubt a greater focus on the potential for new technology to support this planning process will be speeded by our new ways of reduced day to day contact.

Turning back to the new London Plan, it is significant that Sadiq Khan will have a further year at the helm as a result of Mayoral elections being delayed by a year.  The current ‘Intend to Publish’ version of the London plan has been criticised by the Secretary of State for its level of ambition, and "the number of the inconsistencies with national policy and missed opportunities to increase housing delivery" – notably in respect of the proposed restrictive Green Belt approach.

It was also criticised for its “layers of complexity that will make development more difficult unnecessarily”. Prescription on matters such as changing bed linen in co-living proposals, would make the planning process “more cumbersome and difficult to navigate; in turn meaning less developments come forward”.

Particular areas of focussed and joint MHCLG / GLA review include: 

  • A "more proportionate stance" with regards to the loss of industrial land for housing - removing the ‘no net loss’ requirement on existing industrial land sites whilst ensuring boroughs bring forward new industrial land.
  • Supporting ambitious boroughs to go beyond planned targets.
  • Bringing forward later-stage strategic development land from the strategic housing land availability assessment - sites such as Old Oak Common.
  • Actively encouraging appropriate density, including optimising new capacity above and around stations. 
  • Producing and delivering a new strategy with local authorities in the wider South East to offset unmet housing need in a joined-up way.

The Mayor’s options now are limited. Either accept the modifications and recommendations, or contest and go back to the drawing board with further consultation and another Examination process.

Though time may be on the Mayor’s side, more than ever, there is the need for a clear and deliverable vision for London.  A clearer vision for the UK’s planning system is also emerging. There can be no doubt that new forms of technology and communication practices will be essential to make it a success.

To discuss any of the above, please contact Ben Wrighton.

30 March 2020