My Lords, the Government’s aim is to promote and support the regeneration of brownfield land and the creation of new, locally-led garden cities. This is not news, nor is the fact that Urban Development Corporations can play a key role in driving forward the delivery of large-scale development. This is especially true in areas where previous ambitions have failed to progress.
Urban Development Corporations—UDCs—are statutory bodies which are established under the Local Government, Planning and Land Act 1980, whose objective is to regenerate designated urban development areas. Urban development areas and corporations are established by affirmative orders, which, if held to affect private interests, can be declared to be hybrid by the House and therefore become subject to the hybrid instruments procedure. Once declared hybrid, the order is open to allow private interests to petition. This has happened in respect of all previous urban development areas and Urban Development Corporations.
A hybrid procedure is time-consuming and can be costly for all parties, involving processes of representations and hearings over what can be a substantial time. The formation of an urban development area or an Urban Development Corporation does not, in the Government’s opinion, impact on the private rights of individuals and businesses in the area. The powers available to Urban Development Corporations are already available to local authorities, notably in development management planning powers and, where necessary, compulsory purchase. We therefore do not consider that the creation of an urban development area or corporation gives rise to a loss of rights. It is the Government’s view that the hybrid procedure is not necessary in the case of statutory instruments establishing urban development areas and corporations, provided that there is proper consultation with individuals, businesses and local authorities in the area concerned before the statutory instrument is presented to Parliament.
The Government propose to create a statutory duty to consult. It would require the Secretary of State to consult,
“persons who appear to … represent”,
residents and businesses, local authorities and anyone else who the Secretary of State considers appropriate. The proposed duty to consult would increase the level of public scrutiny that proposals of this nature must undergo. It would ensure that anyone who wishes to can respond to a consultation and express their views and concerns.
Under the current legislation, there is no statutory duty to consult on the creation of an Urban Development Corporation. When the 1980 Act was passed, the affirmative and hybrid procedure was the only express means for local residents to influence government policy. Establishing a statutory duty to consult provides people with an opportunity to participate early in the policy-making process and voice concerns at the point at which they arise, rather than waiting for a chance to petition once a statutory instrument is laid before Parliament.
The way in which people engage with government has improved and changed greatly in recent years. The advent of new technology means that it is now quicker, easier and cheaper for members of the public to raise their concerns through consultation—more so than by bringing a petition in front of your Lordships’ House. Replacing the hybrid procedure with a statutory consultation duty would reflect this change in the way people now interact with government and the policy process. The Government therefore remain of the view that the negative procedure, subject to a statutory duty to consult, is the appropriate procedure for establishing UDCs.
I should like to place on record my particular thanks to the noble Lord, Lord McKenzie, for his participation in discussions on how to proceed on this matter. I know he shares my view that we want to see progress in taking this proposal forward. The inclusion of a 12-month sunset provision, with an expiry date of 31 March 2016, demonstrates our commitment to the regeneration of areas where development is waiting to happen. Any statutory instruments establishing an urban development area or Urban Development Corporation, if laid after 31 March 2016, would revert to the current, affirmative, procedure. It would be for a future Government to propose longer-lasting changes beyond the sunset date, and for the Parliament of the day to debate and decide on such changes. The Government have previously argued that such a change would be appropriate for all the reasons I have described, but we recognise that this issue will not be resolved in the current Parliament.
If the changes we are proposing to the Bill are approved, then, following Royal Assent, the Government will lay a statutory instrument establishing an urban development area and corporation for Ebbsfleet. The Government have already consulted on this proposal, and have published a report demonstrating the support expressed for our proposals in the consultation responses. Given the progress that has been made in recent weeks and months, and the strong case for an Urban Development Corporation at Ebbsfleet, it is perfectly reasonable that we should now move forward with
establishing the Ebbsfleet Development Corporation as soon as possible. I therefore hope that this amendment carries your Lordships’ support, and I beg to move.