My Lords, I am listening in to a fascinating discussion and points in relation to tenant farms and smallholdings. I certainly found the arguments and proposals by the noble Lord, Lord Whitty, very convincing.
Amendment 222 tabled by the noble Baroness, Lady Young of Old Scone, and supported by the noble Lord, Lord Randall of Uxbridge, falls exactly within the scope of the intent and purpose of this legislation. It fits in with government changes in relation to the planning regime that attempt to kick-start building and the economy across the country.
Ever since the unwise proposals and legislation of the community infrastructure levy pushed through by George Osborne, it has been bedevilled conceptually by being flawed in its very attempts to put money into local authority infrastructure and has repeatedly led to people withdrawing from potential small-scale developments. In essence, the CIL has shifted the market even more towards the large housebuilder and the large developer. It has had a particularly devastating effect on small businesses and the householder who wishes to do something with either a small business or a small piece of land.
When it comes to agriculture, I echo concerns previously raised that conversion of farm buildings is absurdly hit by CIL money-raking by local authorities. When I first exposed it, in challenging George Osborne in the House of Commons—I got some changes over a period of two years—we had local authorities seeking extraordinary amounts from single properties. The maximum I could evidence was £178,000 in taxation to be paid in advance for a single property development. Even with that lowered to more manageable amounts and a requirement for an affordability test, the CIL prevents the microentrepreneur—the person who wishes to move with small amounts of finance—progressing. The demands by local authorities for the CIL to be paid up front is particularly pernicious. The level of the CIL is particularly anti-entrepreneurial.
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When it comes to farmland and farm buildings—both with new agricultural buildings, as in this amendment, and with change of use required for the conversion of derelict former agricultural buildings into more effective use—the CIL is a blight on the rural community. I strongly recommend to the Government that they should grab the detail of this amendment and perhaps even extend it further. That will have a bigger impact on kick-starting building and entrepreneurship in the rural economy than all these changes of simplifying
the planning system. Money is what counts when it comes to development, and the CIL takes money away at the beginning of the development. Cash flow-wise, that therefore makes many developments impossible for people. This is an excellent amendment; I hope the Government adopt it.