Localism Bill (ways and means)

The right hon. Gentleman should be reassured that the measure is not a fundamental threat. Rather, it is an incidental measure for clarification. As he knows, section 106 payments have always been taken account. There is no change in the policy whatever. He misquotes the response to the consultation on the new homes bonus, which is as valid today as it was when it was published. The response states that"““the new Homes Bonus is not intended to encourage housing development which would otherwise be inappropriate in planning terms””" and that local authorities"““cannot take into account immaterial considerations.””" Therefore, local finance considerations, like any other considerations, should be taken into account only if they are material to the application that is being considered. Let me give an example to the right hon. Gentleman. Obviously, if it is perfectly appropriate for a payment made under a section 106 agreement to be taken into account by the planning authority, it would be perfectly reasonable for the CIL, for example, to be used to provide investment in a road scheme that accommodates a development. If a planning authority considers that to be material, it is perfectly reasonable to take it into account. The measure simply clarifies that if payments other than section 106 payments can be used for matters that are material to the application, it is legitimate to take them into account.