My Lords, I am grateful to the noble Lord for tabling this stand part debate as it gives me an opportunity to read into the record what I should like to say in reply. That is fair because it lays out for both of us the starting or finishing points— I am not sure which it is.
We have debated the merits of this clause at length. While some have argued that it breaches fundamental principles of local decision-making and somehow marks a retreat from localism, I reassure noble Lords that that is simply not the case. On the contrary, as I have sought to make very clear, this clause is necessary and appropriate, and it will be used only in exceptional circumstances.
This Government believe that planning plays a key role in facilitating investment and growth, which is why we announced an inflation-related increase in fees last year and have put locally produced plans at the heart of the system for identifying and addressing development needs. Most planning authorities are rising to the challenge of delivering an effective and positive service in what are, we acknowledge, difficult times. However, it would be wrong not to act in those few cases where planning was not being delivered effectively. Equally, though, this is a measure of last resort, and we will ensure that it is deployed in a way that is fair and proportionate.
Decisions that are unnecessarily slow, or which result in development being refused without good reason, can have a real impact by delaying or discouraging investment. That is bad for the economy and bad for communities, and we should not stand by and delay taking action in those very few cases where this is a significant problem. This clause represents an appropriate response to such situations.
Far from being an unprecedented move to centralise power, Clause 1 will ensure that action can be taken in the rare cases where planning services are failing, just as previous Administrations have sought to ensure in relation to schools, hospitals and other services that are vital for the well-being of the community. Nor should we forget that applicants for planning permission can already go to the Secretary of State for a decision where the local planning authority fails to decide within the statutory period. What we are proposing in Clause 1 merely extends that principle by saying that in those very few cases where authorities have a track record of genuinely poor performance, applicants should be able to exercise that choice from day one rather than wait for the statutory period to elapse.
I have already made it clear that, where it is obvious that more time than the statutory period is genuinely needed to decide an application, and agreements between
developer and local authority are in place to extend the determination period, these applications will be excluded from the performance figures provided that there is an agreed timetable for reaching a decision, as we should not let these cases drag on unnecessarily. This will ensure that there is no risk of quality being sacrificed for speed and that there is a transparent process and timetable when applications need more time than usual. This does not by any means require a full-blown planning performance agreement in all such cases, but there should at least be a record of what has been agreed on the way forward.
We consider that sector-led support will play a key role in identifying and addressing any weaknesses in designated authorities. We will work with the Local Government Association and the Planning Advisory Service, which the Government fund, to ensure that struggling authorities get the support they need in order to improve. This is something which should, in future, also help to avoid the need for any designations altogether.
Our aim in introducing this clause is simple. It is to give applicants the choice of a better service where this is genuinely justified, while encouraging sound and timely decisions on the part of all planning authorities. As I hope the consultation shows, we have thought carefully about an approach that does this while minimising any risk of the sort of perverse outcomes that have characterised some previous performance measures.
So let us be clear. Based on the criteria that we have suggested in our consultation paper, this measure would affect only those authorities that show a wholly unacceptable level of performance—on speed, for example, those authorities that do not meet the statutory target on 30%, or fewer, of their major applications.
In addition, we are not removing powers from local authorities. We are saying that, where applicants are unhappy with the level of performance, they will now at least have an alternative. They will have the choice of applying directly to the Secretary of State.
We all understand why the Government cannot support the proposal to switch off this clause after two years—that it would be provide insufficient time for it to work and it would also remove the continuing incentive for planning authorities to deliver a good level of performance. I therefore must reject the proposal for, effectively, a sunset clause and hope the noble Lord will understand that and withdraw his amendment.