New Towns Act 1981 (Local Authority Oversight) Regulations 2018 — House of Lords, 2018-07-09
Topic: Housing
George Young (Conservative, Centre-right): My Lords, these regulations are made under powers in Section 16 of the Neighbourhood Planning Act 2017. That section originates in an amendment to the legislation tabled by the noble Lord, Lord Taylor of Goss Moor, supported by the noble Lord, Lord Best, and others but also with the Government’s support. I know that both he and a number of other noble Lords who spoke in favour of the amendment when it was introduced are well placed to explain the purpose and merits of these regulations. I shall accordingly be brief in my opening remarks Section 16 of the Neighbourhood Planning Act enables, in principle, the creation of new town development corporations which are accountable to an oversight authority composed of the local authority or authorities covering the area designated for the new town, rather than to the Secretary of State. These regulations make the detailed changes to the New Towns Act 1981 to make that work in practice This will be the second time I have had the pleasure of amending the New Towns Act 1981, having done so in 1982, after it was introduced, while working as a junior Minister in the then DoE. Building on the success of the first-generation new towns, we consider that new town development corporations may be, where there are complex delivery and co-ordination challenges, the right vehicle for driving forward high-quality new communities at scale. With a statutory objective to secure the laying out and development of new towns, and with their own suite of powers, they should have the focus and heft to get things done In line with our locally led approach to new garden cities, towns and villages, we think it is right to provide the option for new town development corporations to be overseen not by the Secretary of State but by the local authorities covering the area for the new town. That, in essence, is what these regulations do, although, as their length testifies, it is in practice a little more technically complex than simply replacing the words "Secretary of State" with the words "local authority or local authorities" We have also, to the extent that the scope of the regulation-making power allows, sought to reinforce key themes which we think should underpin delivery by locally led new town development corporations. We have emphasised, through provisions in the regulations, the central importance of quality, community participation, long-term stewardship and legacy planning. We want to ensure that locally led new town development corporations deliver exceptional new places Clearly, where local authorities are accountable for new town development corporations, they must be able to exercise proper oversight, but we want to ensure that the development corporation is able to act and think independently, drawing in private sector expertise and investment in effective partnerships to get things done. Therefore, the regulations require that, for example, a majority of the board of the development corporation, including the chair and the deputy chair, are independent members with relevant skills and experience The new town development corporations will not have plan-making functions, as this power will rest with the oversight authority. However, we would encourage consideration being given to the use of local development orders where appropriate as a means of securing high-quality development at pace and strengthening the planning certainty of new town projects These regulations are an important localising measure and, given that context, a number of respondents to the consultation on the draft regulations expressed unease that HM Treasury consent was required for borrowing in excess of £100 million by the new town development corporations. We have listened to those concerns, including from Members of your Lordships’ House, and have amended the requirement in the regulations for HM Treasury consent for borrowing. Instead, we will establish the broad financial parameters for development corporations, including levels of borrowing, on a case-by-case basis prior to the establishment of each locally led new town development corporation Finally, I emphasise that these regulations do not in themselves create any locally led new town development corporations. Where a local authority or authorities—which will always initiate the process—wish a locally led new town development corporation to be established, subject to our being satisfied by the proposal and subject to consultation, further regulations will be laid before Parliament for debate These regulations are part of a process but they are an important stage. They mean that we can create locally led new town development corporations where local authorities want them and their proposals are robust. It is my hope that, in turn, those development corporations will lead the delivery of a new wave of garden cities and towns that will stand out as exceptional places for generations to come, building on the success of those built in the post-war years. I beg to move.