District Councils, who are responsible for approving 90 per cent of  planning applications, and enabled almost half of all housing completions in the last year, have issued their response to the Government’s proposed reforms to the planning process.

The District Councils’ Network (DCN) is particularly concerned about the many “Five-year Land Supply” permissions which are granted partially due to the lack of supply of new, affordable housing, but which then sees little or no building out of those permissions over that period.

However, once that point of permission has passed, and development has technically commenced, councils have little leverage, and there is no straightforward mechanism that can be brought to bear to compel developers to complete building.

The DCN therefore believes that further measures should be introduced to make sure landowners and developers deliver on their commitments to build new homes for their communities. These could include:

• Legislative measures if necessary, to ensure that landowners and developers build out approved properties.
• Simplified compulsory purchase powers where a developer who has failed to commence construction within a set period (such as two years) of receiving planning permission, or failed to apply for planning permission despite a site being allocated for housing in an adopted Local Plan (so called “step-in” rights). This could also include removing any right of appeal against compulsory purchase other than at appropriate market value.
• Charging multiples of council tax where developments aren’t finished. This could see councils gaining the power to charge many multiples of tax bands for dwellings that have been permitted, but have yet to be constructed.

The District Councils Network is also calling for clarity about the future of the Community Infrastructure Levy at the Autumn Budget later this month. The better “tying in” of CIL to Local Plan viability plans recently announced by the Planning Minister are very positive step, and the DCN is keen to see further progress in this direction.

Finally, the DCN strongly supports the creation of new locally accountable New Town Development Corporations. (NTDCS). Any legislation creating these new bodies should allow local authorities to effectively operate as the Secretary of State, as far as possible, especially when it comes to planning for performance and selecting board members.

Cllr John Fuller Chairman of the District Councils Network said

“District councils are determined to deliver the new homes that our residents need, both market and affordable – but only by ensuring that developers build out approved homes can this be achieved.

“In many areas landholders and promoters are very keen to get land allocated in a local plan. This means that more land typically comes forward than might be required and therefore councils will be keen to support the schemes which are on the most appropriate and deliverable sites. However if landowners and developers do not follow through on the implied contract made early on, then Councils’ powers are significantly reduced. We need to make sure that a degree of negotiating tension continues throughout the process.

“That is why we have suggested a range of options to Government, from charging powers to simplified compulsory purchase, that can make sure that district councils, who approve nine out of ten planning applications, are able to hold developers to account and make sure that every better ensure that single the homes we approve gets constructed.

“District councils take their responsibility to address our national housing shortage seriously. That’s why we’re keen that the Government take this opportunity to allow District Councils, who are closest to their residents, to ensure that the homes our residents need are actually built by developers – but only if we can hold landowners and developers properly to account.”

NOTES TO EDITORS

Read the full consultation response from the District Council Network here

ENDS

The District Councils’ Network, which represents 200 district councils across England, is calling on the Government ahead of this year’s budget to allow district councils to introduce a new 2 per cent  prevention precept on council tax to maintain and invest further in prevention services such as improving housing, providing leisure and recreational facilities, offering debt advice, tackling homelessness, supporting troubled families and improving air quality all of which help reduce demand on social care and health services.

Analysis by the DCN in its budget submission has found that a 2 per cent precept could raise up to an additional £25 million for district councils which would help to keep residents and their families from needing to access acute social care and the NHS by reducing demand for these services.

For a Band D property in a district area this would be an estimated 7p per week increase on the current average district council tax charge.

For every £1 spent on prevention, district councils say they can make up to £70 worth of savings on health spending in the long term. For example:

• By adapting 100,000 homes to meet the needs of older people, districts could save the NHS £69 for every pound spent.
• Investing in sport, leisure and recreation – core district functions – not only delivers health benefits but can generate £11.2 billion a year in savings, £1.7 billion of which is thought to be via savings to health care-associated costs.
• By improving 100,000 homes to protect older people from the cold weather districts could save the NHS £34.19 for every pound spent.
• The average cost to the State of a fractured hip is £28,665. This is 4.7 times the average cost of a major housing adaptation (£6,000) and 100 times the cost of fitting hand and grab rails to prevent falls.

With adult social care at a tipping point district councils want to play their part in reducing the burden on the social care system and in turn the NHS. According to the Local Government Association, adult social care faces an annual funding gap of £2.3 billion by 2020, with no signs of these pressures abating.

Whilst some of these pressures have been met by a one-off £2 billion injection into the system, no durable solution has been found. The DCN has been clear that changes to the New Homes Bonus to fund a very small part of this does not constitute a solution as it simply recycles existing local government funding. The New Homes Bonus must instead continue to reward increasing housing growth.

A 2 per cent prevention precept would give district councils additional resources to address health and wellbeing issues in their communities before people require more formalised acute based intervention.

Cllr John Fuller, Chairman of the District Councils’ Network, said:

“It is time the Government recognised the important role district councils play in prevention and early intervention. We know that for everyone £1 spent, district councils can save the NHS up to £70, just by adapting homes to prevent falls, improving home insulation and heating or providing recreational and leisure services.

“A 2 per cent prevention precept would go some way to reducing pressures on the social care system, by solving rather than managing problems, and allowing resources to be refocused on tackling problems one family at a time before they occur.

“Prevention is always better than cure. If we are to reduce pressures on the NHS and stop people from entering the social care system unnecessarily, districts council must be given the resources to invest in prevention.”

ENDS

NOTES TO EDITORS

1. DCN’s Autumn Budget Submission can be found here
2. The district council contribution to public health: a time of challenge and opportunity
3. Statistics relating to the average cost of treating hip fractures can be found here.
4. LGA analysis on the annual funding gap in adult social care can be found here.

“Districts are –  and will continue to be – at the forefront of delivering the country’s housing needs since they already accommodate one-in-two new homes built nationwide. In this spirit we welcome a greater emphasis on flexibility around type and tenure, including a renewed focus on affordable homes and  homes to rent, in the White Paper – to help our members build the homes this country needs.

“However, district councils will also require greater fiscal freedoms to fully unlock their ability to build more homes, including the removal of the HRA borrowing cap, the use of Right to Buy receipts and other borrowing freedoms, and we will continue to make our case to Government in our response to the White Paper.

“The DCN is also pleased to see the White Paper will take on board some of our long-standing recommendations for speeding up house-building by giving councils powers to make developers build out within two years of granting planning permission. This will address our concerns relating to the gap between the number of planning permissions granted by district councils and the number of new homes completed.

“We also welcome proposals to increase planning fees by 20% from July 2017, with the prospect of a further 20% increase to councils who are delivering new homes for their communities. For too long council planning departments have been under-resourced to deliver local planning, and the DCN has lobbied tirelessly over many years for fuller cost recovery.

“In responding to the White Paper, the DCN will now examine the detail, including plans for a Housing Delivery Test and new proposals around a standardised way of calculating housing demand,  with care and consideration – with a view to ensuring the housing revolution is built on strong foundations and is locally driven.

“For us, this means a planning system aligned with the broader devolution agenda, one that supports cross-boundary planning across functional economic and strategic housing market areas, incentivises local plan-making and firmly links local growth with strategic infrastructure.”

Since the Brexit referendum vote, economic growth has assumed even greater importance as the axis around which local government must pivot its activities.

A week prior to the conference we had seen the publication of a green paper on Industrial Strategy and legislation to enable the 100% retention of business rates. On the opening day of the conference the Brexit White Paper was published and delegates were preparing for the much anticipated new Housing White Paper

As a network our ability to secure a trio of high-profile ministerial speakers – Communities Secretary Sajid Javid, Business, Energy and Industrial Secretary, Greg Clark and Housing and Planning Minister Gavin Barwell – to this inaugural conference was clear proof that the Government places great stock in the potential of districts to deliver growth.

Sajid Javid praised districts for their ‘can do attitude’ noting their strong track record of managing the heavy-lifting of deficit-reduction in the past six years while delivering impressively on housing, efficiency and local economic growth.

The topic of the future of devolution in district areas and the place of districts in an evolving local government structure was raised. And the Communities Secretary insisted the process was alive and well, adding he would turn his attention to bids not included in the first round of mayoral elections after May.

He also restated his pledge that when it comes to determining structure, ‘one-size does not fit all’ – and his personal philosophy of putting what works best for the communities we serve above rigid, top-down ideology and structures.

Speaking in advance of the Housing White Paper, housing minister Gavin Barwell noted the success of districts as the housing and planning authorities in siting more than one-in-two every new build homes nationwide. He also acknowledged the important role local authorities wishing to get back into building homes could play in boosting supply.

Business, Energy and Industrial Strategy Secretary Greg Clark told delegates that district councils were crucial to delivering the growth vision outlined in his green paper and had a real opportunity to influence the Industrial Strategy as it is developed over the coming months.

He told the conference that now was the ideal opportunity to respond vigorously and creatively to the industrial strategy – urging local government to seize the initiative and tell central government how, based on experience and evidence, local economies should be shaped. In his speech, chair of the Midlands Engine, Sir John Peace,also stressed the importance of connectivity and agility in driving the post-Brexit economic revival.

As an inaugural event, the conference – attended by more than 180 delegates – played out in a spirit of vibrant hope and courageous collective resolve to rise to the challenges we face.

In its consultation response to the provisional local government finance settlement, the District Councils’ Network, which represents all 201 English district councils, calculates its members have seen 5.2% cuts to core spending power, compared to average 1.1% reductions across local government.

Cllr Neil Clarke, chairman of the District Councils’ Network (DCN) said: “It is clear that district councils are taking the largest hit in spending power reductions between 2016/17 and 2017/18.

“Shire district core spending power is set to plummet by 5.2% – a far more swingeing cutback than the 1.1% average reduction across local government as a whole.

“From the DCN perspective, NHB changes strip out £75m from district council revenues and risk destroying the link between local economic growth and the funding of local public services.  The NHB which is a reward for growth that allows district councils to provide the additional facilities and services required to meet the needs of existing and new residents alike in delivering more housing and is vital in ensuring support for future housing growth

“We feel the introduction of a new 0.4% baseline for housing growth under which councils will not receive any NHB is unfair, and counterproductive.

“Unfair because it was not included in the original consultation and could not have been predicted.

“Counterproductive because it means many of our members will now enjoy zero additional NHB revenues for 2017/18, causing not only greater financial instability but also removing entirely any incentive for housing growth – which is the Department for Communities and Local Government’s number one priority.

“The ambitious challenge of building 200,000 new homes a year remains, and districts are –  and will continue to be – at the forefront of delivering the country’s housing needs since they already enable one out of every two new homes built nationwide. District Councils will need to take up the challenge of providing the new types of housing for older people if we are to provide a comprehensive response to the social care crisis but the reduction in the reward for delivery of more new homes changes alongside the 1% rent reductions and the refusal to consider lifting the housing borrowing cap will frustrate our desire to deliver housing growth.

“But these NHB reforms will not only stymie vital attempts to encourage economic and housing growth in our areas but will also hamstring the starring role of districts as drivers of local preventative services.

“To solve this impasse, the DCN proposes that the ‘deadweight’ baseline level should be fixed at 0.25% for two years, to assist councils through a transition stage which would help mitigate the longer term effect of the 0.4% ‘deadweight’ level.

“And in the interests of giving districts the degree of certainty that would underpin the Government’s support for long-term financial planning through multi-year settlements, we ask also that there be no further increases to the baseline during this spending review period.

“The DCN recognises the need for additional adult social care funding to meet ever-increasing demand.

“But as a network we reject the application of sticking plaster solutions which only recycle existing local government funding and seemingly benefit only 95 out of 152 social care authorities. This is robbing Peter to pay Paul.  There is a greater need for a sustainable and long-term funding solution, alongside a far greater focus on prevention to reduce demand.

“To that end, the DCN will continue to emphasise the relevance and importance of introducing a prevention council tax precept –  a 2% levy for district council to reflect the key role that districts play in prevention and demand-reduction for the wider public sector across the country.”

See full DCN response to the provisional 2017-18 local government finance settlement:

“The ambitious challenge of building 200,000 new homes a year remains, and districts are – and will continue to be – at the forefront of delivering the country’s housing needs since they already enable one out of every two new homes.

“The Chancellor has demonstrated he is seeking fresh approaches to tackling the affordable housing challenge by bringing greater flexibility to the types and tenures that can be supported through the announced £1.4bn.

“The DCN has long lobbied for infrastructure funding to support housing growth and therefore welcomes the Chancellor’s additional infrastructure funding to unlock barriers to housing delivery.

“The Housing White Paper will clearly be key and we will continue to work hard with ministers and officials to help shape it.

“The DCN has for some time now underlined the importance of the rural economy and consequently is delighted the Chancellor is providing support to rural businesses in the form of business rates relief to boost national productivity.

“To help rebalance the national economy, new mayoral borrowing powers granted to Combined Authorities, and further devolution of powers for adult education and employment support services to London and Greater Manchester, should be more widely available as part of devolution deals to other parts of England.”

This response focuses primarily on the need to ensure districts, as strategic housing and planning authorities, are best able to help deliver the Government meet its housebuilding ambitions and  that moves to full business rates retention fully incentivise local economic growth.

See full Autumn Statement Representation:

See also joint representation from the District Councils’ Network and the Association of Drainage Authorities in respect of Internal Drainage Boards and Special Levies

ADA/DCN Joint Autumn Statement Representation

The County Councils Network (CCN), District Councils’ Network (DCN) and Rural Services Network (RSN) have jointly welcomed the Government’s intention to move to 100% retention of business rates by 2020. Clearly this is ambitious, complex, and challenging, but our networks can support this if it enables further devolution, ensures key services are sustainable over time, and allows localism to flourish.

We support this ambition on the basis that it will enable further local autonomy and self-reliance, as well as encouraging and rewarding future growth.

Clearly, the new system will be highly complex to design, but it must be made as simple and as fair as possible, and needs led from day one to ensure that local authorities are incentivised and rewarded for achieving growth.

Any new system of funding must be sustainable for local authorities in the short, medium and long-term. Equally the impact of Government policies on major infrastructure and commercial decisions, e.g. power stations, to dramatically affect an area’s business rates prospects must be recognised and taken into account.

It will be crucial that all areas can invest in long-term growth, in consultation with businesses, including the ability to use an infrastructure levy if there is agreement locally.

Depending on whether the economy grows or declines, there will be both risks and opportunities for local government. Both district and county areas will have a significant national role to play in supporting, encouraging and promoting growth. However, this must be adequately supported by Government through a system of appropriate incentives and rewards. And Government funding and strategies for capital infrastructure investment must be demand-led and not purely focused on cities.

Equally, atypical pressures on demand-led services in county and district areas – which continue to rise – must be fully recognised through the fair funding review and business rates system. This will play a key role in adjusting funding for adult social care, public health and prevention, supporting the NHS and funding the everyday services people value most.

Our networks have, therefore, collectively identified core principles that are integral to ensuring an effective and fair funding system. Alongside these principles we have identified key issues which must be addressed in relation to the needs review, the new business rates system and wider funding and investment.

We remain committed to working with the Local Government Association (LGA), professional organisations such as Cipfa, ministers and relevant Whitehall departments, to support the re-localisation of business rates. While our networks will reply individually to these consultations, our responses will also reflect the shared principles that we have identified in this document.

Cllr Paul Carter, Chairman, County Councils Network

Cllr Neil Clarke, Chairman, District Councils’ Network

Cllr Cecilia Motley, Chairman, Rural Services Network

For list of full principles please click link to: 100% Business Rate Retention – CCN, RSN and DCN Shared Principles