Translating national localism into local (planning) localism

19 July 2011

Janice Morphet

UCL and rmjm consulting

outline

1. What is localism about?

2. What are the implications for local development planning?

1. What is localism about?

• Been developing for a long time• Changing parish council legislation from 1997 • New Localism (2003-2010)• Double Devolution• Localism (from 2010)• Next Localism (from 2011 – NLGN)

What are the implications of localism for local government?

1. General power of competence

2. Freedom to do anything unless specifically legally prohibited

3. Gives local authorities the legal personality of an individual

4. Ability to raise funds on markets

5. Ability to use assets

6. Make financially self sufficient

2. What does this mean for planning?

• Development Plan• Implementing development• Duty to cooperate• Larger than local

Role and purpose of planning?

The planning system helps to decide who can build what, where and how. It makes sure that buildings and structures that the country needs (including homes, offices, schools, hospitals, roads, train lines, power stations, water pipes, reservoirs and more) get built in the right place to the right standards. A good planning system is essential for the economy, environment and society.’

A plain English guide to the Localism Bill DCLG 2011, page 10

Development Plan

• Will be truly local• Will continue to be based on delivery• Will depend on local evidence particularly for

housing and employment uses• Increases role of the SHMA• Other provisions of 2004 Act seem to stay in place

Implementing development

• Still focus on the deliverability test• Infrastructure delivery planning continuing• Local development plan likely to be mechanism for

releasing public sector assets and land auctions• Will be proactively engaged in managing public sector

estate• Will be means of raising local taxation revenue once

business and domestic taxes are localised from 2013

Duty to cooperate

• Will be implemented through regulations• Regulations will define bodies to be included in

duty• Will bind bodies into delivery of the plan• Could challenge bodies if they don’t give priority to

implement the plan priorities

Larger than local

• Strategic planning role of Local Enterprise Partnerships based on the combined power of the local development plan authorities

• Underpin infrastructure investment programmes• LEP will be accessing funds for delivery e.g. transport• Probably need a joint committee structure• Pilots coming soon

• Each LEP likely to have multiple legal personalities i.e. company, charity, trust, public/private partnership etc

Funding through LEPs

The following have been announced but some have no details as yet:• Regional Growth Fund• Remaining RDA funds• Transport – new forms of LTP? Or scheme based?• Rural development funds• ERDF (direct from 2014?)• HCA – including major housing schemes• Coalfield Communities – remaining funds from EU• Business rates?• Enterprise Zones• Capacity funding• CIL• TiF

Other Funding to be used for development and capital investment and linked to planning

• Central government• Local government• EU• Private sector

Funding: Central Government

• Central Government: £200bn 2010-2015 compared with £200bn 2007-2011

• Schools and health protected from cuts – school funds for 2011-2014 to be announced in June 2011

• UK Infrastructure Plan 2010 and Review 2011 will make funding commitments longer term

• Possible new vehicles e.g. infrastructure ISAs, changing definition of capital borrowing – use EU model

Funding: Local Government

• Use of mainstream capital funding in single pot• Use of council tax through ‘free councils’ and Business Rates• Use of powers in s1-7 Localism Bill to set up banks, develop anywhere – las to have the

legal personality of individuals• Borrowing on private sector basis i.e. spread risk across portfolio• Use of assets – ‘Time to raid the piggy bank’ (Pickles) – alignment of public sector land

registers with development plans in localism bill• Land auctions• Incentive schemes e.g. new homes bonus• Housing Revenue Account – from 2013 – approx £4bn pa investment surplus• Bonds raised for housing, transport• Local authorities building for sale• Local authorities supporting first time buyers – e.g. Wandsworth – proposed £50k loans• Local authorities supporting small builders with equity partnerships for housing

Funding: EU

• JESSICA, JEREMIE and JASMINE from European investment bank already being used in Glasgow, Liverpool and Manchester (Evergreen)

• From 2014 – project funds likely to be directly available to local authorities under Lisbon Treaty

Funding: private sector

• Barriers to investment to be removed through current UK Infrastructure Review

• Encourage investment from banks• New savings products e.g. construction bonds

from John Laing• Public/private partnerships

Conclusions

• The implementation of localism will be significant• The role of planning in releasing capital

investment will be central• Tougher for councillors who will be making

decisions without being able to rely on central government or RSS as ‘excuse’