Ministry of Housing, Communities and Local Government                                           ESH0085

Written Evidence from the Ministry of Housing, Communities and Local Government

Environmental Audit Committee: Environmental Sustainability and Housing Growth: Written Evidence.

Background: The EAC is seeking views on how the proposed reforms to national planning policy and housebuilding targets might affect environmental protections and current approaches to sustainable development.

National Planning Policy Framework:

[Background on Dec 2024 changes:

• Our manifesto was clear: sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people. Our approach to delivering this growth will focus on three pillars; stability, investment, and reform. Nowhere is decisive reform needed more urgently than in the case of our planning system.
• We are in the middle of one of the most acute housing crises in living memory. Home ownership is out of reach for too many – too few homes are built and even fewer are genuinely affordable. Our housing shortage drives high rents and leaves some of the most vulnerable without access to a safe and secure home.
• The changes we have made are necessary steps in correcting this, delivering on our Plan for Change commitment to deliver a pro-growth, pro-infrastructure planning system. By strengthening housing targets and allowing development on poor quality ‘grey belt’ land, we will get Britain building again and kickstart our mission to deliver

1.5 million homes over this Parliament.

• We consulted on proposed reforms to the National Planning Policy Framework and other changes to the planning system from 30 July until 24 September 2024. We have now reviewed the available evidence and feedback from the consultation and published our formal response.
• Our changes, firstly, reverse the set of supply-negative changes made by the previous government to national planning policy in December 2023, and secondly, introduce a wider set of growth-focused interventions that will help us build more homes in the places that people want to live in, supported by the right infrastructure.
• These changes include:

o         Making housing targets mandatory and reversing other changes made under the previous Government which undermine housing supply;

o         Implementing a new standard method formula to ensure local plans are ambitious enough to support the Government’s manifesto commitment of 1.5 million new homes in this Parliament;

o         Identifying grey belt land within the Green Belt, to be brought forward for homes and other important development through both plan and decision-making;

o         Delivering affordable and well-designed homes, with new “golden rules” for land released in the Green Belt to ensure release delivers in the public interest;

o         Making wider changes to ensure that local planning authorities are able to prioritise the types of affordable homes their communities need, and that the planning system supports a more diverse housebuilding sector;

Ministry of Housing, Communities and Local Government                                           ESH0085

o         Supporting economic growth in key sectors, including laboratories, gigafactories, data centres, digital economies, and freight and logistics – given their importance to our economic future;

o         Delivering community needs to support society and the creation of healthy places; and

o         Supporting clean energy and the environment, including through support for onshore wind and renewables.]

EAC questions:

1.      What provisions will the National Policy Planning Framework, as revised under the Government’s proposals, make for protection and enhancement of the environment? Are these provisions likely to be adequate?

The revised National Planning Policy Framework (NPPF) makes several changes to enhance and protect the environment. These include:

• Highlighting the opportunity for development to support threatened and priority species such as swifts, bats and hedgehogs;
• Requiring all new Green Belt developments to provide access to green space, contribute positively to their landscape setting and support nature recovery;
• Changes to emphasise the importance of climate change considerations in decision- making as well as plan-production;

• Supporting climate change mitigation through strengthened support for renewable energy development, including ending the de facto ban on onshore wind schemes;
• Requiring Sustainable Drainage Systems in minor and major developments with drainage implications;
• Changing the approach to transport planning by focusing on a ‘vision-led’ approach, which will enable more sustainable transport modes to be embedded from an early stage of development.

In support of these changes, we will also be producing new and updated guidance early in 2025 on the way that Local Nature Recovery Strategies can be integrated into planning, and on the way that carbon assessment tools can be used.

This is alongside existing protections and requirements for enhancement that were contained already in the NPPF and/or other aspects of planning policy and legislation, including:

• The NPPF is clear in Chapter 15 that planning policies and decisions should contribute to and enhance the natural and local environment;
• Biodiversity net gain: the 25-year Environment Plan committed the Government to embedding a ‘net environmental gain’ principle for development to deliver environmental improvements locally and nationally. Biodiversity Net Gain is now on a formal statutory footing, with major developments in England required to deliver 10% Biodiversity Net Gain;
• Strategic Environmental Assessment or Environmental Impact Assessment require an assessment of the potential environmental effects of development activity arising from relevant plans and projects;

Ministry of Housing, Communities and Local Government                                           ESH0085

• Habitats Regulations protect sites that are internationally important for threatened habitats and species;
• Other regulations continue to support the natural environment and work alongside the National Planning Policy Framework to protect the natural Environment.

These provisions work together to help to protect and enhance the natural environment whilst enabling the vital infrastructure and housing that our country needs to be delivered.

2.      What policy levers does the Government plan to use to ensure that local authorities deliver the development which the revised NPPF ‘standard method’ requires? Do the Government’s plans result in local planning authorities being penalized if delivery falls short? What policy levers will be available to local authorities to ensure that developments which have received planning approval are delivered in accordance with consents?

Local Plan implementation and intervention

• This Government is committed to an effective plan-led system; it is the right way to plan for the growth and environmental enhancement our country needs – by bringing local councils and their communities together to agree the future of their areas. We want to see universal coverage of ambitious plans as soon as possible.
• To help planning authorities to get local plans in place as soon as possible and support the Government’s ambition to build more homes, we have set out specific transitional arrangements in the revised National Planning Policy Framework which will apply to submitted plans and plans at an advanced stage of development.
• This Government is committed to taking tough action to ensure authorities have up-to-date local plans in place. Following the publication of the revised NPPF, we have asked that all local planning authorities review and update their timetables for plan making by 12 March 2025.
• This will allow us to monitor the progress that local authorities are making to getting a plan place and if necessary, use our intervention powers to ensure updated timetables are prepared and suitably ambitious plans are progressed and adopted.
• We have also revised the local plan intervention policy criteria to ensure that decisions on future intervention action are targeted, swift and proportionate.
• The standard method remains the starting-point for plan-making. The national Planning Policy Framework expects local planning authorities to plan for their identified need (as well as any needs that cannot be met within neighbouring areas, where relevant), unless there are strong reasons why this is not possible (as set out in paragraph 11 of the Framework).

Five-year housing land supply and the housing delivery test

• We have two tests of whether authorities are meeting the level of need which they have planned for (or should be planning for, in cases where plans are not up-to-date).
• The Housing Delivery Test measures authorities’ delivery record over the previous 3 years, and the ‘five-year housing land supply’ policy tests whether there is an adequate supply of deliverable land with permission to build. Where authorities fail against these tests, ‘the presumption’ in favour of sustainable development kicks in.

Ministry of Housing, Communities and Local Government                                           ESH0085

Build out

• This Government has set out policy changes designed to promote greater diversification of sites, which evidence shows helps with the build-out of consented schemes. This includes mixed tenure developments and greater proportions of affordable housing.
• The Government response to the consultation on the NPPF also set out that the Government will take the steps necessary to implement build-out reporting and will implement the following provisions in the Levelling Up and Regeneration Act 2023, following technical consultation:
• Housing developers will be required to formally notify local planning authorities before they commence development and then report annually to them on their actual housing delivery. This will ensure that local planning authorities can clearly identify where delays occur, enabling them to work more effectively with developers to tackle the issue.
• We will also be bringing forward a measure to provide local planning authorities with the power to decline future planning applications made by developers who fail to build out earlier planning permissions granted on land in the authority’s area at a reasonable rate.

3.      To what extent is the current planning presumption in favor of sustainable development compatible with the environmental objective of the planning system? To what extent will the proposed ‘streamlining’ of the sustainable development presumption work to deliver developments which will meet this objective and be compatible with the Government’s environmental targets and obligations?

• The presumption in favour of sustainable development serves two key purposes: to set a clear expectation that plans meet as much of their identified development needs as possible, and to place an emphasis on granting for permission for development where plans are up-to-date.
• The presumption is fully compatible with wider environmental objectives, but also reflects the social and environmental goals which planning should pursue, including an adequate supply of homes, infrastructure and the commercial development needed to grow our economy.
• In both the plan-making and decision-making contexts, the presumption contains safeguards where meeting development needs in full or granting permission would have adverse environmental consequences. This includes reflecting the impact of nationally-recognised areas or assets of particular importance (such as National Parks and areas at risk of flooding), as well as acknowledging circumstances where adverse impacts would “significantly and demonstrably” outweigh the benefits, assessed against the Framework taken as a whole – including its policies for safeguarding the environment.
• The changes made to the NPPF in December 2024 added to these safeguards in instances where the presumption applies to decision-making (and hence development proposals which may have come forward on an ad hoc basis), by highlighting the particular importance of policies relating to sustainable locations, making effective use of land, securing well-designed places and providing affordable homes.

Ministry of Housing, Communities and Local Government                                           ESH0085

• Having reflected on responses to last July’s NPPF consultation, the Government decided not to take forward proposals to narrow the way the presumption is engaged for decisions, such that it would apply in contexts where policies for the supply of land are out of date.

4.      How will the revised NPPF work to deliver the social and environmental objectives of the planning system? To what extent will it promote outcomes which deliver sustainable social and environmental benefits together, such as access to essential amenities, to public transport and to active travel routes?

• The revised NPPF makes changes around transport, public service infrastructure, community health and public safety which work to ensure sustainable social and environmental outcomes.
• These changes include amending the NPPF to further support the provision of public infrastructure like health, blue light, library, adult education and university facilities, which in addition to the post-16 education, early years places, play spaces and hot food takeaway changes, aim to help create sustainable, healthy communities.
• It is anticipated that these changes will bring positive social impacts including on community health and wellbeing, and greater community access to improved services as a result of the changes.
• Furthermore, capacity issues within the existing system which may be creating a strain on existing services will be improved through a strengthened policy position supporting the provision of these forms of infrastructure.
• The NPPF changes that support a ‘vision-led’ approach to transport planning aim to deliver better outcomes for sustainable and active travel, which in turn will have a positive impact upon health and wellbeing of residents.
• Where it is necessary to release Green Belt land for development, the new ‘golden rules’ set out in the NPPF will secure positive social as well as environmental outcomes – including a high proportion of affordable homes and improved access to nature.
• These changes work with the existing provisions in the NPPF which support positive social and environmental outcomes, as reflected in the chapters on healthy communities, climate change, the natural environment as well as in its provisions for securing a mix of homes to meet the needs of local communities.

Housing growth and net zero targets

5.      What contribution can the NPPF make to meeting Government targets for the reduction of greenhouse gas emissions? What account does the NPPF take of advice from the Climate Change Committee on reducing the use of embodied carbon as well as operational carbon in the built environment?

• Boosting the delivery of renewable energy is vital if we are to meet the Government’s commitment to reaching zero carbon electricity generation by 2030.
• One of the first actions of this Government was to remove the de facto onshore wind ban in England. Lifting the ban paves the way for developers to start an onshore wind revolution without fear their plans will be unfairly rejected.
• Building on this, The Government has amended the Framework to give significant weight to the benefits of renewable and low carbon energy proposals. This change aims to give greater policy certainty for developers and examining authorities and reflects the Government’s Clean Power 2030 ambitions.

Ministry of Housing, Communities and Local Government                                           ESH0085

• We have also made changes to the Framework to emphasise the importance of climate considerations in planning, including a specific new paragraph to make clear that climate change is an important consideration in decision-making as well as plan- making.

• The NPPF sets out how the planning system should support the transition to a low carbon future in a changing climate, including helping to shape places in ways that contribute to radical reductions in greenhouse gas emissions. The Framework also states that the planning system should encourage the reuse of existing resources, including the conversion of existing buildings.
• The planning system and National Planning Policy Framework provide the freedom for local authorities and developers to use carbon accounting should they seek to do so. However, we recognise that both local authorities and developers would benefit from clearer guidance on the use of appropriate tools to assist in reducing the use of embodied and operational carbon in the built environment.
• Therefore, we intend to update Planning Policy Guidance to assist local authorities in considering carbon emissions within the plan-making process, and to support developers in using carbon accounting to reduce carbon emissions as part of their development proposals.

Housing growth and biodiversity and nature recovery requirements

6.      Will the Government's proposals affect the ability of local authorities to implement policies designed to protect the natural environment in their areas?

• The revised changes to the NPPF will not adversely affect the ability of local authorities to implement policies designed to protect the natural environment in their areas. The NPPF continues to provide strong protections for the natural environment in local areas.
• We will publish guidance shortly on how Local Nature Recovery Strategies can be used in the planning system to help identify opportunities for positive environmental action.
• The revised Framework also highlights the role that these strategies can play in making enhanced provision for nature where it is necessary to release Green Belt land for development, as part of our ‘Golden Rules’ for Green Belt release.

7.      What (if any) trends are observable in (a) delivery of environmental improvements (b) the purchase and trading of credits arising from the Environment Act requirement for developments to yield biodiversity net gain (BNG)? How are planning authorities using BNG in the planning process to deliver environmental improvements from housing development?

• Biodiversity Net Gain (BNG) is a new approach to development that aims to leave the natural environment in a measurably better state than it was in beforehand. The statutory framework for BNG came into force in England for planning permission granted on applications for major development made on or after 12 February 2024 and on applications for non-major development made on or after 2 April 2024.
• Under the statutory framework for biodiversity net gain, subject to some exceptions, every grant of planning permission is deemed to have been granted subject to the

Ministry of Housing, Communities and Local Government                                           ESH0085

condition that the biodiversity gain objective is met. This objective is for development to deliver at least a 10% increase in biodiversity value relative to the pre-development biodiversity value of the on-site habitat. This increase can be achieved through on-site biodiversity gains, registered off-site biodiversity gains or statutory biodiversity credits.

• There are currently 37 sites on the Natural England off-site register, and it is anticipated that this will increase further, as the off-site market develops. Across those 37 sites, there are over 900 hectares of area habitat available (including over 550ha of other neutral grassland, and over 132 ha of mixed scrub). There are also over 12km of hedgerow, and over 4km of watercourse.
• The Government has received around £225,000 of income from the sale of statutory credits – primarily for watercourse habitats along with hedgerows and grassland. The Government is considering the right approach for spending the income once we have more certainty over the scale of this funding as the market develops and which habitat types are most required.

8.      How will the revised NPPF operate to promote the Nature Recovery Network and the implementation of local nature recovery strategies by responsible authorities?

• We have committed to publishing guidance on Local Nature Recovery Strategies by the end of January.
• The revised NPPF includes a new set of Golden Rules for development proposals in the Green Belt, which specifically refers to land that has the potential for habitat creation or nature recovery within Local Nature Recovery Strategies, to which relevant development proposals should contribute.

9.                    What use can planning authorities make of the data analysis and modelling being developed under the National Land Data Framework to support planning decisions which lead to better environmental outcomes? How should the NPPF be integrated into the forthcoming Land Use Framework?

• The National Land Data Programme is owned and run through the Geospatial Commission and brought together a series of national scale projects and regional pilots to explore and demonstrate how data and modelling could better support land use decision making at different scales.
• In the forthcoming Land Use Consultation, we are seeking views on the principles to support strategic spatial planning and whether it may be of benefit for local authorities to apply these principles to planning decision in the future.
•               The NPPF and Land Use Framework will work hand in hand with Government strategies such as the Strategic Spatial Energy Plan to support the delivery of infrastructure and housing, whilst making sure we meet our environmental and climate change goals.

10.  What environmental regulatory arrangements within Defra’s remit which relate to the planning process are likely to be under review as potential inhibitors of growth? What effect on environmental protections would reform of these regulations be likely to have?

Ministry of Housing, Communities and Local Government                                           ESH0085

• As set out in the Plan for Change, the Government will streamline development processes to meet new and ambitious targets to build 1.5 million homes and advance 150 major infrastructure projects.
• We are also fully committed to making sure development contributes to nature’s recovery, delivering a win-win for nature and the economy.
• We will do this through the continued roll out of mandatory biodiversity net gain for development, ensuring that developers create more and better habitat than they unavoidably harm. Local Nature Recovery Strategies will help target Biodiversity Net Gain and other nature recovery activities to deliver greatest collective benefits.
• We will also use the Planning and Infrastructure Bill to establish a more efficient and effective way for obligations related to our most important sites and species to be discharged at a scale that has the greatest environmental benefits.
• We have now published a working paper which provides more detail on our proposed approach and will welcome further input from nature conservation organisations, developers, and communities to make sure we get this right.
• We have committed to only act in legislation where we can confirm to Parliament that the steps we are taking will deliver positive environmental outcomes.

December 2024