My Lords, I thank the noble Baroness, Lady Taylor of Stevenage, for moving the amendment proposed by the noble Baroness, Lady Hayman of Ullock. The Government also appreciate the importance of the interaction between the infrastructure levy and development which is granted planning permission by
so-called permitted development. This means, of course, development of a class for which planning permission is granted under the Town and Country Planning (General Permitted Development) (England) Order 2015—SI 2015/596.
As noble Lords are aware, most permitted development rights do not fall within the scope of the existing system of developer contributions. The infrastructure levy aims to capture more value than the existing system, and the Bill has been designed to help achieve this aim. This includes having the ability to capture land value uplift associated with permitted development, subject to provision that is made in the infrastructure levy regulations.
Our recent technical consultation sought views on how the levy could be charged on permitted development to expand the scope of developments for which levy contributions may be sought and allow local authorities to capture more value for infrastructure and affordable housing where currently little or no contributions are collected. It will take time to analyse the technical consultation responses, to undertake further review and consultation, and to develop policy as a result of that, before drafting regulations. However, I accept that this is a matter of considerable importance to the House.
We do not propose to accept the amendment of the noble Baroness, Lady Hayman, which would require a review to be published within 120 days of the Bill being passed. We can instead commit that the Government will publish a report on how the levy will work in relation to permitted development at an appropriate point when the policy is developed. This will set out the interrelationship between the levy and permitted development. The Government will commit to doing this on or prior to the day that the infrastructure levy regulations are laid, so that the interaction between the levy and permitted development can be clearly understood. I hope that, with these clear reassurances, the noble Baroness, Lady Hayman, will be content to withdraw her amendment.
Before I move on, the noble Lord, Lord Stunell, seemed pretty concerned about permitted development rights. He ought to be aware that nationally permitted development rights make an important contribution to national housing delivery. In the seven years to March 2022, they delivered more than 94,000 houses, which represents 6% of the overall housing supply in that delivery period.
We want to make sure that the existing conditions and limitations that apply to permitted development rights and allow for the change of use to residential property are fit for purpose. So far, we have done this and we continue to. As I said, there is an ongoing consultation, which closes on 25 September. Any changes subject to its outcome will be brought forward via secondary legislation.
I move on to Amendment 243. I thank my noble friend Lord Lexden for putting this forward on behalf of my noble friend Lord Northbrook. The amendment seeks to restrict the flexibility of premises within Class E—the commercial, business and service use class—to be used as cafés or restaurants. As a Government, we believe that restaurants and cafés are important parts
of our high streets, town centres and other parts of our country, such as towns and villages, and we do not want them to be limited. In addition, the general permitted development order cannot be used to place limits on the operation of a use class. Therefore, once again, we cannot support this amendment.