Housing strategy reveals funding boost for planning departments

Councils are set to be handed new financial powers to boost housebuilding under proposals unveiled in this week’s housing white paper.

The government announced that it will allow local authorities to increase nationally set planning fees by 20% from July 2017.

The ring-fenced cash could also be accompanied by a further rise for authorities delivering high numbers of new homes, the consultation document said.

It said: “We are also minded to allow an increase of a further 20% for those authorities who are delivering the homes their communities need and we will consult further on the detail.

“Alongside we will keep the resourcing of local authority planning departments, and where fees can be charged, under review.”

The Royal Town Planning Institute (RTPI) welcomed the move, but said that it did not go far enough, particularly with new burdens also announced in the white paper.

It said: “RTPI has strongly campaigned for more resources to be given to local authority planning departments and welcomes the government’s plans to allow local authorities to raise fees for planning applications up by 20% to be reinvested in local planning authorities (LPAs).

“However we are concerned that these measures may not be sufficient to mitigate for years of under investment and resources need to be made available to enable the LPAs to cope with the demands the new government policies outlined today will place on them.”

It also said that the white paper failed to mention mechanisms which would capture rising private land values to provide more social housing and infrastructure.

Stephanie Pollitt, assistant director of real estate at the British Property Federation, welcomed the measure. She told Room151: “Local authority planning departments are facing a resource crisis and we believe that this step will go some way in helping to alleviate the financial burdens planning departments currently face.”

Elsewhere in the white paper, the government announced an additional £25m for authorities in areas of high housing need to plan for new homes and infrastructure.

However, the document shied away from heeding demands from the council sector to remove borrowing caps on housing revenue accounts, merely saying that it would “explore options to encourage local authorities to build again”.

In addition, it will consult on plans to allow councils to dispose of land at less than best consideration, as well as new powers to assemble land for development.

Terrie Alafat, chief executive of the Chartered Institute of Housing, said: “It is also an important step forward that government has recognised the need for councils to play an important role in house building.

“The key now is that local authorities, many of which are under increasing financial pressure, get the support they need to deliver on this ambition.”

But Martin Tett, housing spokesman at the Local Government Association, said that even more needs to be done to help councils reduce their waiting lists.

He said: “For this to happen, councils desperately need the powers and access to funding to resume their historic role as a major builder of affordable homes.

“This means being able to borrow to invest in housing and to keep 100% of the receipts from properties sold through Right to Buy to replace homes and reinvest in building more of the genuine affordable homes our communities desperately need.”

Sean Nolan, director of local government at CIPFA, said: “There are still vital roles for housing associations and councils in providing affordable housing for rent or to buy, but to do this they must be allowed greater freedom and flexibility to build new homes and replace existing stock reduced under right to buy, something that has been denied them in recent years.”

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