My Lords, I declare my interests in farming and land ownership, as set out in the register.
The reason for retabling Amendment 221 is to question the Minister on her response in Committee. I thoroughly understand that permissions in principle are currently used only in respect of housing developments. She explained that our National Planning Policy Framework strongly supports policies and decisions to promote sustainable development in rural areas and support a prosperous rural economy. She confirmed that local plans and neighbourhood plans should enable the development and diversification of agriculture and other land-based rural businesses.
However, many question the noble Baroness’s rather negative assessment of the amendment’s utility in creating rural economic development. I would be most grateful if she could expand on why it is unnecessary and would not work. My point is that although the National Planning Policy Framework strongly supports policies and decisions to promote sustainable development in rural areas, the planning system is so underresourced that it is not filtering through into local decision-making. It therefore seems highly desirable that the permission in principle route is extended to rural economic development and not just housing.
Let me reiterate the purpose and advantages of permissions in principle in the rural business context. The rural economy is 19% less productive than the national average, and for this gap to be closed, the countryside needs more rural economic development so that it can grow sustainably. Businesses are put off submitting planning applications to grow their businesses because of the risk of putting capital up front with an uncertain outcome. Planning applications are costly, risky and take a lot of time to submit.
The permission in principle route splits a planning application into two stages: the first stage is high level and sets out the principle of the development to be approved by the planners. The second stage, which involves the cost, is to confirm the technical details. Extending the permission in principle to rural economic development reduces the resources required to process applications and creates certainty as to what is required at the technical stage.
In her response in Committee, the Minister agreed to take the issue back and consider with officials how we can strengthen economic development in those rural areas. Perhaps the new discussion of this amendment will encourage her further to grant this request. If more applications were submitted and approved for rural economic development, businesses would grow, creating more employment opportunities and adding more to local rural economies. This sounds like an easy win in the levelling-up process.