Baroness Taylor of Stevenage (Lab)

My Lords, I hesitate to step into this very knotty lawyer’s wrangle, but it is necessary to do so because our common aim across the House is to sort out Hillside. We all know why we need to do that. As the noble Lord, Lord Banner, said, it is symbolic of all the issues that we are trying to get out of the way so that we can get on with the development that this country needs. I thank the noble Lord, Lord Banner, for tabling Amendment 105—a repeat of his amendment from Committee that seeks to overturn the Hillside judgment—and for his new Amendment 113, which responds to some very constructive discussions we have had since Committee. As I said in Committee, we recognise that the Hillside judgment, which confirmed long-established planning case law, has caused real issues with the development industry. In particular, it has cast doubt on the informal practice of using “drop in” permissions to deal with change to large-scale developments that could build out over quite long periods—10 to 20 years. We have listened carefully to views across the House on this matter, and I appreciate the thoughts of all noble Lords who have spoken in this useful debate. One seasoned planning law commentator—I do not think it was the noble Lord, Lord Banner, or the noble Lord, Lord Carlile—called Hillside a “gnarly issue”, and it has attracted a lot of legal attention. It is very important that we tread carefully but also that we move as quickly as we can on this. Therefore, in response to the concerns, the Government propose a two-step approach to dealing with Hillside. First, we will implement the provisions from the Levelling-up and Regeneration Act for a new, more comprehensive route to vary planning permissions—Section 73B. In practice, we want this new route to replace Section 73 as the key means for varying permissions, given that Section 73 has its own limitations, which case law has also highlighted. The use of Section 73B will provide an alternative mechanism to drop-in permissions for many large-scale developments—although we recognise not all. Secondly, we will explore with the sector the merits of putting drop-in permissions on a statutory footing to provide a further alternative. This approach will enable provision to be made to make lawful the continued carrying out of development under the original permission for the large development, addressing the Hillside issue. It will also enable some of the other legal issues with drop-in permissions to be resolved. In implementing Section 73B and exploring a statutory role for drop-in permissions to deal with change to large-scale developments, I emphasise that we do not want these routes to be used to water down important public benefits from large-scale development, such as the level of affordable housing agreed at the time of the original planning permission. They are about dealing with legitimate variations in a pragmatic way in response to changing circumstances over time. Amendment 113 seeks to provide an enabling power to address Hillside through affirmative secondary legislation. I recognise that this provision is intended to enable the Government to have continued discussions with the sector and then work up a feasible legislative solution through the regulations. As with all enabling powers, the key issue is whether the provisions are broad enough to deal with the issues likely to emerge from these discussions, as hinted at by the noble Lord, Lord Lansley. Based on the current drafting, this enabling power would not do that. For instance, there have been calls to deal with Hillside in relation to NSIP projects. That would require a wider scope, so we cannot accept the amendment without significant modifications. That is why we think it is best to explore putting drop-in permissions on a statutory footing first and then drawing up the legislation. This will give Parliament time to scrutinise. To conclude, I hope that the approach I have set out addresses many of the concerns expressed in this debate. I ask the noble Lord not to press his amendments.