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Levelling-up and Regeneration Bill

08 September 2022

Proposing MP
South East Cornwall
Type
Public Bill Committee

At a Glance

Issue Summary

Sheryll Murray discusses amendments related to the infrastructure levy rate-setting process under Schedule 11 of the Levelling-up and Regeneration Bill. The statement addresses concerns about the proposed Infrastructure Levy (IL) system and its potential flaws. The statement addresses amendments related to local planning authorities' responsibilities and restrictions on the Secretary of State's ability to intervene. Sheryll Murray discusses an amendment to the Levelling-up and Regeneration Bill regarding the Infrastructure Levy. The MP discusses the importance of developing brownfield sites before considering greenfield sites for housing projects and highlights the need to preserve green spaces in urban areas. Sheryll Murray discusses the Levelling-up and Regeneration Bill and amendment 59 regarding planning reform. The discussion centres around amendments aimed at altering infrastructure levy (IL) rates for different land types and the impact on affordable housing and development. Sheryll Murray is proposing an amendment to the Levelling-up and Regeneration Bill to broaden the definition of infrastructure covered by the Infrastructure Levy. The statement discusses the flexibility of local authorities to use the infrastructure levy on various forms of infrastructure beyond those explicitly listed in the Bill. The statement discusses proposed amendments to the Levelling-up and Regeneration Bill regarding the infrastructure levy (IL) and its interaction with section 106 planning obligations. The statement addresses the amendment to allow the Homes and Communities Agency, trading as Homes England, to be designated as a charging authority in addition to its role as a local planning authority.

Action Requested

The amendment seeks to ensure consistency with inserted section 204A(2) by inserting 'of the area' after 'development', ensuring consideration of viability relates to the area as a whole rather than individual sites. Additionally, amendments aim to prevent the Secretary of State from imposing nil rates or differential rates and ensure that rates are set by charging authorities.

Key Facts

  • Amendment 162 aims to consider economic viability in the area as a whole during rate-setting.
  • Amendment 163 seeks to leave out 'or require' regarding nil rates, differential rates, reductions.
  • Amendment 164 also leaves out 'or require' to prevent Secretary of State from imposing minimum thresholds.
  • Amendment 162 would clarify that charging authorities will not be expected to test every development site in their area.
  • Amendments 163 and 164 aim to prevent the Secretary of State from overriding locally determined IL rates, thresholds or nil rates.
  • The amendments seek to avoid scenarios where local IL rates developed by charging authorities are overridden by the Secretary of State.
  • Proposed new section 204A(2) ensures that costs incurred can be funded without making development economically unviable.
  • Amendment 163 would prevent the Secretary of State from requiring differential rates, but the Minister believes this is necessary for coherence and consistency in capturing value uplift.
  • The approach to nil and reduced rates has precedent in existing developer contributions systems.
  • Amendment proposes a sliding scale of charges increasing in proportion to the share of the development that is on greenfield land.
  • Aim is to promote brownfield development.
  • This amendment aims to prevent extremely dense development in urban centres with an undersupply of open space.
  • York has the largest brownfield site in the country adjacent to the station.
  • The development of the York Central site has led to increased traffic congestion on the west side of the city.
  • In Tang Hall, a former refuse site was turned into St Nicks environment centre for community wellbeing projects.
  • Clifton, an area with significant deprivation, has less green space compared to other parts of York.
  • The amendment aims to encourage developers to consider brownfield sites for housing developments.
  • Buckinghamshire Council plans substantial greenfield development, covering 335 square miles with 90% as agricultural land.
  • Haddenham is currently experiencing new housing estate construction on greenfield land.
  • The Government provides £550 million through the brownfield housing fund and £75 million through the brownfield land release fund.
  • Proposed new section 204G(5) and (8) in schedule 11 allows local planning authorities to set different levy rates for various kinds of development.
  • The Minister supports a policy-driven approach over a formulaic algorithm for setting IL rates.
  • Amendment covers roads, transport, flood defences, schools, medical facilities, sporting/recreational facilities, open spaces, affordable housing, emergency services, natural environment preservation/enjoyment, energy generation space, business incubation space, cultural/community buildings, and day centres.
  • Proposed new section 204N(3)(i) highlights the importance of allotments for mental and physical health.
  • York has 1,500 people on a waiting list for 1,350 allotment spaces.
  • The Minister for Faith is addressing concerns about the flexibility of the infrastructure levy.
  • Local authorities can use the levy on infrastructure not explicitly listed in the Bill.
  • Energy generation, allotments, and community facilities are included within the definition of infrastructure.
  • Proposed new sections enable the Government to require reviews of charging schedules if significant time has passed since last review.
  • Future IL regulations may make unspecified provisions about how existing powers, including CIL and section 106 planning obligations, are to be used or not.
  • The amendment aims to prevent future IL regulations from making unspecified provisions about the use of section 106 agreements.
  • Clause 114 amends section 14 of the Housing and Regeneration Act 2008.
  • The amendment allows the Homes and Communities Agency to act as a charging authority when designated as a local planning authority.
  • Without this clause, the levy may not function effectively in areas where Homes England is the local planning authority.
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