The coalition’s confusion over planning

The government clearly can’t decide between localism and economic growth.

One of the many timeless phrases that the current Baron Prescott of Kingston-upon-Hull gave to the nation – and to his opponents in the Tory press – was his 1999 musing on preventing inappropriate housing development. "The greenbelt is a Labour achievement," he said. "And we intend to build on it."

Scoffing aside, actually Prescott had a point.

He wanted to build homes and, as much as was practical, he wanted the building to be in existing urban areas. His idea was simple: to direct the development that the country needed to derelict land that has already been used.

In 2000 Prescott ruled that 60 per cent of all new homes had to be built on previously used land. He added a raft of guidance making it harder for councils to approve greenfield planning applications if there were empty so-called "brownfield" sites available.

The target was exceeded: 80 per cent of new homes were built on brownfield, saving thousands of acres of green fields from the bulldozer.

In deprived areas the rules ensured that developers concentrated on regeneration, not on suburban luxury homes, which contributed to the hollowing out of town centres. Of course, it was far from perfect, but the principle was helpful.

"Enemies of enterprise"

In Wednesday's Budget, George Osborne abolished this target. Councils are now to be free to decide whether regeneration is important to them.

But this doesn't just put Prescott's legacy at risk by sending a signal to developers that the government doesn't mind if they build unsustainable, out-of-town developments. It also goes to heart of the coalition's confusion over planning.

The reality is that the number of planning applications has fallen every single quarter since "localist" planning reforms were instituted by the Communities Secretary, Eric Pickles, in May last year. Applications are 22 per cent down from a year ago.

In addition, council plans for 217,000 homes have been scrapped. Meanwhile, the Treasury witnessed a 0.6 per cent fall in construction GDP at the end of last year when things were supposed to be improving. Growth is being jeopardised.

David Cameron identified planners as "enemies of enterprise" but others have pointed the finger at Pickles. For Osborne, something had to be done.

Fundamentally the government is struggling to decide between localism and economic growth – between giving power to the blue-blooded nimby Tories of the shires, or to the red-blooded capitalist Tories of the city. The latter say deregulate to allow out-of-town superstores, edge-of-town housing estates and new motorways; the former say no to all of these.

So Osborne will have been pleased to read the plaudits from the CBI, hailing his achievement in tackling the "chronic obstacle" of the planning system.

But those businesses hailing it should read the fine print. His announcement on brownfield (just one small but important part of the package) was actually localism dressed up as deregulation. In fact, the move, giving powers to every council to set its own targets, could be exactly what developers don't want, replacing one rule with 400.

It means leafy shire districts opposed to development will be able to set higher targets to block development from going ahead. This development is essential if the next generation is to be able to buy homes in these leafy surburbs.

Give us a grin, Prezza

Meanwhile, the other planning measures in the Budget are either so unclear as to be uninterpretable, or are reannouncements of existing policies. No wonder the Office for Budget Responsibility had to admit it was unable to identify anything in the package which caused it to improve its growth forecasts.

Ultimately, the Budget simply underscores this contradiction between localism and growth – there is no attempt to solve it. The localist reforms to the planning system, viewed largely with hostility by those expected to build new homes, go on.

No doubt Prescott will have a wry smile.

Joey Gardiner is assistant editor of Building magazine.

Joey Gardiner is assistant editor at Building magazine

Photo: Getty Images
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David Cameron's starter homes: poor policy, but good politics

David Cameron's electoral coalition of buy-to-let retirees and dual-earner couples remains intact: for now.

The only working age demographic to do better under the Coalition was dual-earner couples – without children. They were the main beneficiaries of the threshold raise – which may “take the poorest out of tax” in theory but in practice hands a sizeable tax cut to peope earning above average. They will reap the fruits of the government’s Help to Buy ISAs. And, not having children, they were insulated from cuts to child tax credits, reductions in public services, and the rising cost of childcare. (Childcare costs now mean a couple on average income, working full-time, find that the extra earnings from both remaining in work are wiped out by the costs of care)

And they were a vital part of the Conservatives’ electoral coalition. Voters who lived in new housing estates on the edges of seats like Amber Valley and throughout the Midlands overwhelmingly backed the Conservatives.

That’s the political backdrop to David Cameron’s announcement later today to change planning to unlock new housing units – what the governmen dubs “Starter Homes”. The government will redefine “affordable housing”  to up t o£250,000 outside of London and £450,000 and under within it. and reduce the ability of councils to insist on certain types of buildings. He’ll describe it as part of the drive to make the next ten years “the turnaround decade”: years in which people will feel more in control of their lives, more affluent, and more successful.

The end result: a proliferation of one and two bedroom flats and homes, available to the highly-paid: and to that vital component of Cameron’s coalition: the dual-earner, childless couple, particularly in the Midlands, where the housing market is not yet in a state of crisis. (And it's not bad for that other pillar of the Conservative majority: well-heeled pensioners using buy-to-let as a pension plan.)

The policy may well be junk-rated but the politics has a triple A rating: along with affluent retirees, if the Conservatives can keep those dual-earner couples in the Tory column, they will remain in office for the forseeable future.

Just one problem, really: what happens if they decide they want room for kids? Cameron’s “turnaround decade” might end up in entirely the wrong sort of turnaround for Conservative prospects.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.