Communities Secretary writes to the Mayor regarding national policy and the draft London Plan
Shortly before recess the Government published the revised National Planning Policy Framework (NPPF).
Updates to Planning Practice Guidance regarding viability and housing and economic development needs assessments were published on 24 July, with several more updates to follow – notably regarding town centres and heritage assets.
The only new guidance in the update on housing and economic development needs assessments is a guide to calculating local housing need using the standard method. The rest of the update is the deletion of the previous guidance, with notes regarding the transitional arrangements for plan making, and confirmation that the new guidance does not constitute the full guidance, which will be added in due course. The guidance also refers to a potential consultation on a revised methodology once the household projection figures are released in September, suggesting that the complete new guidance may not follow until after that time.
The policies in the revised NPPF are material considerations to be taken into account in determining planning applications ‘from the day of its publication’ (i.e. from 24 July 2018).
However, the policies in the 2012 NPPF continue to apply to examining plans submitted on or before 24 January 2019. And a footnote confirms that for spatial development strategies, ‘submission […] means the point at which the Mayor sends to the Panel copies of all representation made’. This is an amendment specifically made to reflect the stage reached by the draft London Plan, notably different to the draft revised NPPF wording (which referred to ‘submission’ being a later stage, specifically the point in which copies of the strategies intended for publication are sent to the Secretary of State).
Accordingly, based on the current timetable, the new draft London Plan will be examined against the original NPPF policies. Communities Secretary James Brokenshire has since written to Mayor of London Sadiq Khan, stating in no uncertain terms that while the draft London Plan will be examined under the 2012 NPPF, it must be reviewed and revised to reflect the 2018 Framework ‘immediately once the London Plan has been published’. The Secretary of State (SoS) does not hold back in the letter, in adding:
‘I remind you that if this [review] is not forthcoming, I have powers to direct the review to ensure London delivers the plan and homes that communities need.’
Even with the current draft Plan and the suggested modifications that are already with the Planning Inspectorate, the SoS is unquestionably direct:
‘I would remind you that I have powers to intervene before the Plan is published, by giving a direction to avoid any inconsistencies with current national policy or to avoid detriment to the interests of an area outside of Greater London and I will be carefully considering whether it is appropriate to exercise any of my statutory powers.’
Also of particular relevance to the draft London Plan (specifically draft policy H2) is a reduction in the proportion of the housing requirement expected to be met in small and medium sized sites, from that proposed in the draft revised NPPF.
Lichfields has produced a blog highlighting 11 key changes to the Framework following the consultation, as well as a more in depth and comprehensive analysis in our Insight Focus (see links below).
HM Government, Revised National Planning Policy Framework Collection (including PPG updates), 24 July 2018
Lichfields, Revised NPPF: a new beginning at the end of a long and winding road?, 25 July 2018
Parliamentary Hansard, written statement regarding housing, 24 July 2018
MHCLG, Letter from the Communities Secretary to the Mayor of London on the need for a revised London Plan in place that meets London’s housing needs
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Quote of the month
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[…] you can continue to progress your Plan and start delivering your London Plan targets for which you are responsible.
It remains crucial however that you bring forward a revised London Plan that has regard to new national policies at the earliest opportunity […] I would therefore expect you to review the London Plan to reflect the revised National Planning Policy Framework immediately once the London Plan has been published. I remind you that if this is not forthcoming, I have powers to direct the review to ensure London delivers the plan and homes that communities need.
Communities Secretary James Brokenshire in a 27 July letter to Mayor of London Sadiq Khan, following publication of the revised National Planning Policy Framework
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GLA report calls for greater investment in infrastructure
A new report published by the Greater London Authority has warned of the potential long-term consequences of under-investment in infrastructure, calling on the Government to increase public funding and financing available for infrastructure projects.
‘Mind the Gap: Funding and Financing City Investments in the 21st Century’ puts forward an argument that major infrastructure investment could potentially generate an extra £33 billion for the economy per year by the middle of the century, raising an extra £10 billion in tax receipts, which would more than cover the additional investment.
The findings are based on data produced by a new computer model called ‘the Greater London Simulator’. The model analyses how the capital has responded to investment and other policy decisions, and considers the effects that a number of projects - including the Elizabeth Line extension, Cross Rail 2, and the redevelopment of the Royal Docks - will have on the capital.
As well as providing a significant boost to the economy, the report argues that the investment would lead to:
- 365,000 new homes;
- 379,000 new jobs;
- 913,000 sqm of new London business space
Of particular interest is chapter 6, which examines potential new approaches to financing city investments. ‘Credit Participation Certificates’ are suggested as a means of providing a more reliable, transparent investment alternative to traditional securities, making investment more accessible and attractive to a much wider range of investors, including pension funds.
Mayor of London, Sadiq Khan commented:
‘As a country, we need to move from a system of underinvestment, low growth, reduced tax take and constrained public funding toward a new philosophy of sensible investment in high-growth schemes that deliver economic prosperity, more homes and higher tax revenues.’
Mayor of London, Mind the Gap: Funding and Financing City Investments in the 21st Century
Mayor of London, A new report calls for an increase in infrastructure spending
Place Alliance research supports the use of design review on major schemes
Research undertaken by the Place Alliance, supported by the Mayor of London, endorses the argument that design reviews are a beneficial step in the development process for major projects.
The research, which looked at 12 projects assessed by eight different review panels, found that there is a great level of differentiation in the quality of service on offer, with major differences between those run on small budgets, and those which are professionally run and costed.
When professionally run, the benefits are clear. For local planning authorities, the process is shown to generally improve the quality of design across new developments, as well imparting a culture which prioritises good design, and makes the development process more collaborative, whilst empowering design teams.
However, the report highlights a number of design review-related issues that potentially undermine the development process. Problems arise where panels are poorly briefed, and where members views on design are too dogmatic, and they are unwilling to compromise on legitimate limitations resulting e.g. from local context and viability.
Some useful guidance is provided on best practice, encouraging panels to employ staff from a diversity of backgrounds, with a broad range of professional expertise. The need for well-structured sessions is also emphasised, alongside the avoidance of negative language and unsubstantiated comments.
Place Alliance, Reviewing Design Review in London
UCL, Research by Place Alliance shows Design Review process makes better buildings and places
Resident ballots for estate regeneration policy finalised
Estate regeneration schemes involving the demolition of social housing will now need the backing of existing residents via ballot, to be eligible for Mayoral funding.
A draft version of the now-confirmed policy was put forward in ‘Better homes for local people – The mayor’s good practice guide to estate regeneration’; this was consulted on until 10 April of this year. Out of the 133 responses to the consultation, 88% supported, or partly supported the principle of a ballot.
The policy, which came into force on 18 July, also requires schemes which have previously carried out ballots in the past, to undertake a new ballot on the offer made by the landlord. This is necessary, in order to remain eligible for Mayoral funding. Ballots will be open to all residents over the age of 16, and will need to be conducted by an independent body.
In addition, a new condition has been included in the policy which provides for a clawback on funding, where landlords have failed to honour their original offer.
There are several exceptions included in the new policy where ballots will not be used, including cases where a building presents issues relating to the safety of residents, and where the regeneration will advance major infrastructure improvements.
Mayor of London, Mayor’s ballots requirement for estate regeneration comes into force
Mayor of London, Better Homes for Local People - The Mayor’s Good Practice Guide to Estate Regeneration
Mayor of London, Proposed new funding condition to require resident ballots in estate regeneration - consultation paper
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The Lichfields perspective
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The footnote clarifying the transitional arrangements for plan-making may provide some relief for the Mayor, as it means that the draft London Plan will be examined against the policies in the 2012 Framework; however, the Secretary of State’s letter to the Mayor is quite clear, that based on the current draft, the Government will expect to see the new London Plan reviewed in line with new national policies at the earliest opportunity
Tom Davies, Planning Researcher
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Disclaimer: This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116
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