HL Deb 02 November 2004 vol 666 cc4-5WS
The Minister of State, Office of the Deputy Prime Minister (Lord Rooker)

My right honourable friend the Minister for Housing and Planning has made the following Written Ministerial Statement.

The system of planning obligations in England has been widely criticised for some time for its often opaque nature and its contribution to delays in the planning process. The Government are therefore publishing today a draft revised circular, aimed at improving the way in which planning obligations are negotiated under Section 106 of the Town and Country Planning Act 1990 (amended by the 1991 Act).

The draft revised circular on negotiated agreements, which will now be consulted on for three months, aims to contribute to the speeding up of the planning system and therefore the creation of sustainable communities.

The circular brings planning obligations into line with the new arrangements established by the Planning and Compulsory Purchase Act 2004. Given the possibility of more major reforms to the system of planning obligations in the next few years, referred to in my Statement of 17 June 2004, the circular seeks to minimise the additional administrative burdens placed on local planning authorities and developers, while seeking to streamline the system and promote best practice.

It seeks to ensure that affordable housing continues to be secured through Section 106 on a more consistent basis and in line with the direction of reform to planning policy guidance note 3 (Housing). ODPM consulted on proposed updates to PPG3 last year entitled Influencing the Size, Type and Affordability of Housing, and Supporting the Delivery of New Housing. Concerns have been expressed about the proposed policy update on housing mix in particular. The office continues to discuss these issues with stakeholders. The intention is to publish the PPG3 updates by the end of the year.

The draft circular has been produced following extensive discussions with stakeholders to seek their views on the difficulties experienced with the current system. In addition, the work of the advisory group on planning obligations has been useful in helping to formulate the proposals being published today.

Following public consultation, a final version of the circular will be issued in spring 2005, accompanied by good practice guidance, which is being prepared by Halcrow Group.

In the mean time, the Government are continuing to consider Kate Barker's proposal for a planning-gain supplement, made in her final report of her review of housing supply, Delivering stability: Securing our future housing needs (17 March 2004). Depending on the outcome of further work over the next 12 months, further changes to the system of planning obligations may be required.