Recommendations & Conclusions
30 items
2
Conclusion
46th Report - Improving local areas thr…
Accepted
The number of local planning authorities with an up-to-date local plan has fallen significantly since 2019. As at February 2025, only 86 LPAs–29% of all the LPAs in England–had adopted a local plan in the past five years. By contrast, in February 2019, 149 LPAs had an up-to-date local plan. …
Government response. The government agrees and states it has implemented reforms to the plan-making system, including new legislation for a simpler 30-month timeline for plan preparation and a standardised structure. It also committed £48 million additional investment to strengthen planning capacity, funding …
HM Treasury
3
Conclusion
46th Report - Improving local areas thr…
Acknowledged
There are additional local planning authorities for whom starting to operate the Community Infrastructure Levy would be both feasible and beneficial. In November 2024, only 52% of all LPAs were operating the CIL. The CIL was intended to make getting contributions from developers fairer, faster, and more certain and transparent. …
Government response. The government agrees and states it will continue ongoing work with the Planning Advisory Service (PAS) to consider how to support local authorities in making best use of tools like the Community Infrastructure Levy (CIL). It expects more areas to …
HM Treasury
4
Conclusion
46th Report - Improving local areas thr…
Accepted
We are unconvinced that the Department is adequately addressing staffing capacity and capability issues within local planning authorities. Research from the sector suggests staffing in LPAs is a serious problem. The Royal Town Planning Institute’s 2023 State of the Profession report found that, in the period 2013–2020, around a quarter …
Government response. The government agrees and details its Planning Capacity and Capability Programme, which aims to expand the planner pipeline through schemes like Pathways to Planning and a new Planning Careers Hub, and retain experienced planners with £2.8 million for PAS training. …
HM Treasury
5
Conclusion
46th Report - Improving local areas thr…
Accepted
Without updated guidance, local planning authorities will still struggle to challenge financial viability assessments submitted by developers and may fail to receive the amount of developer contributions they are entitled to. Viability assessments are an important tool to ensure that sites are financially feasible for developers and to make sure …
Government response. The government agrees and intends to publish updates to its viability planning practice guidance (PPG) alongside a consultation before the end of the year, seeking further views on proposed changes. It also reiterates the existing PPG clarifies viability assessment's primary …
HM Treasury
6
Recommendation
46th Report - Improving local areas thr…
Accepted
Given the shortage of social housing, it is unacceptable that unsold homes funded through Section 106 agreements are sitting empty. There is a growing problem of registered providers of social housing (RPs) not buying affordable homes funded by Section 106 agreements. In response, in December 2024, Homes England began the …
Government response. The government agrees and acknowledges the scale of the unsold Section 106 homes problem and the limited uptake of the Homes England Clearing Service. It is "progressing work at pace on a holistic policy package, to be confirmed shortly," to …
HM Treasury
7
Conclusion
46th Report - Improving local areas thr…
Accepted
The Department does not facilitate effective communication or the sharing of best practice between stakeholders. Given that developer contributions help to fund a wide range of infrastructure such as schools, health facilities and roads, other government departments have a clear interest in the system. But they have mixed views on …
Government response. The government agrees and states it will build upon and extend existing channels of engagement, such as the Planning Advisory Service (PAS) support and resources for LPAs, and regular meetings between the Chief Planner and devolved administrations. However, it does …
HM Treasury
1
Conclusion
46th Report - Improving local areas thr…
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Housing, Communities and Local Government (the Department) on improving local areas in England through developer funding.1
Government response. The government agrees (with an unstated recommendation) and will explore proportionate and efficient ways of collecting and analysing data from Infrastructure Funding Statements (IFSs) to improve understanding of developer contributions. It also reminded Local Planning Authorities of their statutory duty …
HM Treasury
8
Recommendation
46th Report - Improving local areas thr…
Accepted
In its written evidence, the National Housing Federation explained that there is very little up-to-date information on the difference between the value of developer contributions that are agreed up front, and how much is subsequently collected. This makes it hard to understand the extent to which developers can negotiate down …
Government response. The government agreed to explore proportionate and efficient ways of collecting and analysing data from infrastructure funding statements, alongside other relevant sources of evidence, to improve understanding of how the developer contributions system is working by Autumn 2026.
HM Treasury
9
Recommendation
46th Report - Improving local areas thr…
Accepted
We asked the Department why it did not issue stronger guidance to local authorities that IFSs must be delivered on time and in a more consistent form. It told us that, following the publication of the NAO report, the Chief Planner wrote to every LPA to remind them of their …
Government response. The government agrees to explore proportionate and efficient ways of collecting and analysing data from IFSs, alongside other relevant sources of evidence, with a target implementation date of Autumn 2026. They have reminded LPAs of their statutory duty and will …
HM Treasury
10
Conclusion
46th Report - Improving local areas thr…
The Planning and Compulsory Purchase Act 2004 requires LPAs to prepare a local plan, setting strategies for meeting the need for new homes in a local area.12 The NPPF states that a local plan should set out the contributions expected from development, including the levels and types of affordable housing …
HM Treasury
11
Conclusion
46th Report - Improving local areas thr…
Accepted
The number of local authorities with up-to-date local plans is declining. As at February 2025, only 86 LPAs–28% of the total of 308 in England– had adopted a local plan in the past five years, while 202–65% of the total–LPAs had plans that were more than five years old.14 This …
Government response. The government agrees to ensure that LPAs produce an up-to-date local plan and continues to work with local authorities and other stakeholders to identify and resolve blockers to getting up-to-date local plans in place, providing tailored support to target specific …
HM Treasury
12
Recommendation
46th Report - Improving local areas thr…
Accepted
As at February 2025, while 65% of local authorities had a local plan more than five years old, around 7% did not have an adopted local plan at all, and it can take up to seven years to publish one.17 The risks associated with not having an adopted, up-to-date local …
Government response. The government agrees to provide further details of how it will use its statutory powers to ensure LPAs produce up-to-date local plans. It is providing a minimum of £14 million funding to help LPAs get plans in place and has …
HM Treasury
13
Recommendation
46th Report - Improving local areas thr…
Accepted
The Department told us it was introducing a new system for plan-making that should be more streamlined, and would involve statutory timelines. Its aim would be for local authorities to be able to complete a plan in 30 months. The Department also told us it was giving additional support to …
Government response. The government agrees to examine the local plan making system to make it simpler and shorter, drawing up a revised local plan. They published the government response to the July 2023 consultation on the implementation of reforms to the plan-making …
HM Treasury
14
Conclusion
46th Report - Improving local areas thr…
The CIL was introduced through the Planning Act 2008, which gave LPAs the option to introduce a locally developed charging system. It was intended to make the system fairer, faster, and more certain and transparent. Payment by developers is generally up-front and non-negotiable, and LPAs may spend the monies on …
HM Treasury
15
Conclusion
46th Report - Improving local areas thr…
Acknowledged
Given that it can provide benefits for the local community, we asked the Department why more authorities were not operating the CIL, as only 52% of local authorities operate them. The Department explained that 16 Q 30 17 Q 31; C&AG’s Report, para 1.13 and Figure 4 18 C&AG’s Report, …
Government response. The government agrees with the committee's recommendation that more local authorities should operate the CIL and supports LPA capacity through the PAS and funding, and will work with PAS to support local authorities in using CIL effectively and implementing planning …
HM Treasury
16
Recommendation
46th Report - Improving local areas thr…
Accepted
The Department explained that, in 2019, it had helped LPAs by removing pooling restrictions that prevented them from using Section 106 and CIL monies together for local infrastructure.22 We asked whether the Department was aware of areas that would benefit from introducing the CIL but had not yet done so. …
Government response. The government agrees to work more proactively with the Planning Advisory Service to identify LPAs where CIL ought to be viable and encourage wider take-up of the CIL where this is appropriate, with a target implementation date of Autumn 2026. …
HM Treasury
17
Recommendation
46th Report - Improving local areas thr…
Accepted
Research from the sector suggests that staffing in local planning authorities (LPAs) is a serious problem. The Royal Town Planning Institute’s 2023 State of the Profession report found that, in the period 2013–2020, around a quarter of planners left the public sector, while the private sector grew by two-thirds. A …
Government response. The government agreed to strengthen planning capacity and capability across local authorities through the Planning Capacity and Capability (C&C) Programme. This includes expanding the pipeline of new planners, retaining and developing experienced planners, and supporting planning reform. An additional £28.8 …
HM Treasury
18
Conclusion
46th Report - Improving local areas thr…
Accepted
There is an imbalance in capacity and capability between the public and private sector. Larger developers are generally better resourced with people who have specialist skills for negotiation.25 In its written evidence, the Chartered Institute of Housing expressed concern that local planning departments across England had faced significant reductions in …
Government response. The government will strengthen planning capacity and capability across local authorities through the Planning Capacity and Capability (C&C) Programme, including expanding the pipeline of new planners, retaining and developing experienced planners, and supporting planning reform, with additional investment to fund …
HM Treasury
19
Recommendation
46th Report - Improving local areas thr…
Accepted
We challenged the Department on what it was doing to tackle the root causes of LPAs’ staffing problems. It explained that several initiatives were under way, and that it would provide direct funding of around £12 million for the recruitment and retention of planners. It also told us that LPAs …
Government response. The government agrees to provide the Committee with details on how the Capacity and Capability Programme will improve the pipeline of new planners and help LPAs retain experienced planners, with a target implementation date of March 2026. They will strengthen …
HM Treasury
20
Conclusion
46th Report - Improving local areas thr…
Accepted
The Department subsequently wrote to us with additional information on this topic. It explained that: • Since it began funding the Pathways to Planning programme in 2023, two cohorts of graduates had been placed into LPAs, both of which started in September 2024. There were 87 placements in total, and …
Government response. The government agrees with the committee’s recommendation to improve the pipeline of new planners and help LPAs to retain experienced planners through the Planning Capacity and Capability Programme. £48 million of additional investment will strengthen planning capacity across the public …
HM Treasury
21
Conclusion
46th Report - Improving local areas thr…
Accepted
Viability assessments are financial appraisals submitted to LPAs by developers, that establish whether a site is viable by examining whether the value likely to be generated by the development is more than the cost of developing it, including ‘suitable’ profits for developers. Planning practice guidance states that, for the purposes …
Government response. The government will consult on a revised National Planning Policy Framework and publish updates to viability planning practice guidance (PPG) alongside the consultation to seek views on further changes to support revised policy.
HM Treasury
22
Recommendation
46th Report - Improving local areas thr…
Accepted
There is an asymmetry of skills, capacity and resources between LPAs and developers that means LPAs often struggle to challenge developers’ claims in viability assessments. Additionally, land values vary significantly across the country, so in some local areas, particularly less affluent areas, developers can argue that sites are not viable. …
Government response. The government agreed to consult on a revised National Planning Policy Framework and publish updates to viability planning practice guidance by Summer 2026. The existing PPG already states that the role for viability assessment is primarily at the plan making …
HM Treasury
23
Recommendation
46th Report - Improving local areas thr…
Accepted
The Department acknowledged that it originally intended to provide LPAs with updated guidance on how to handle financial viability challenges in Spring 2025. However, it explained that advising LPAs on how they should deliver value for local people while also allowing for some degree of local variation was complex, and …
Government response. The government agrees to ensure that its revised guidance on viability balances the need for site-by-site flexibility in negotiations with the need to dissuade developers from gaming the system, with a target implementation date of Summer 2026. They will be …
HM Treasury
24
Conclusion
46th Report - Improving local areas thr…
Accepted
Developer contributions provided via Section 106 agreements have become an important way to deliver affordable homes in England. In 2023–24, 44% of affordable homes were provided in this way. Developers rely on bids from registered providers of social housing (RPs) to buy the Section 106 affordable homes they deliver, but …
Government response. The government launched the Homes England Clearing Service to connect buyers and sellers of S106 homes and gather data on delivery challenges and is progressing work at pace on a holistic policy package to deal with the legacy problem of …
HM Treasury
25
Conclusion
46th Report - Improving local areas thr…
Accepted
In its written submission, the Home Builders Federation (HBF) quoted its research which had found that at least 17,000 Section 106 affordable housing units were unsold. It also claimed that the delivery of almost 32 C&AG’s Report, para 2.11 33 Qq 14, 42 34 Letter from the Permanent Secretary, 9 …
Government response. The government agrees to diagnose the extent of the Section 106 affordable housing problem more confidently, and ensure the Section 106 Affordable Housing Clearing Service is working much more effectively. They are progressing work at pace on a holistic policy …
HM Treasury
26
Recommendation
46th Report - Improving local areas thr…
Accepted
In response to this problem, in December 2024, Homes England (an executive non-departmental body sponsored by the Department) began the Section 106 Affordable Housing Clearing Service that allows developers to upload details of new homes for which they have been unable to find a buyer and encourages buyers and sellers …
Government response. The government agrees to set out how it will diagnose the extent of the Section 106 affordable housing problem more confidently, and how it will ensure the Section 106 Affordable Housing Clearing Service is working much more effectively, with a …
HM Treasury
27
Conclusion
46th Report - Improving local areas thr…
Accepted
We challenged the Department on the difference between the number of unsold housing units listed and the much larger numbers that exist across the country according to the HBF. The Department explained that it was in active conversation with the HBF, aiming to better understand the problem and identify whether …
Government response. The government agrees to diagnose the extent of the Section 106 affordable housing problem more confidently, and ensure the Section 106 Affordable Housing Clearing Service is working much more effectively. They are progressing work at pace on a holistic policy …
HM Treasury
28
Recommendation
46th Report - Improving local areas thr…
Accepted
Public bodies, including agencies and arms-length bodies sponsored by government departments, who work with local authorities to help deliver health, educational, transport, environmental and other facilities, have a role in the system locally and often make a case for a portion of developer contributions. The Department engages widely with other …
Government response. The government agrees to provide further details of how it will sponsor more effective communication between government departments, local planning authorities, and the devolved nations, and states that this recommendation is implemented. They will look to build upon and extend …
HM Treasury
29
Recommendation
46th Report - Improving local areas thr…
Accepted
Some LPAs would also like more direct engagement with the Department on developer contributions, housing targets and the planning system more widely.43 We suggested to the Department that one of the problems is the difference in performance between the best and worst authorities. It explained that a core aim of …
Government response. The government agreed to build upon and extend existing channels of engagement with LPAs, while noting developer contributions remain a locally-led process. It will also continue to sponsor PAS to provide expert support to LPAs on a range of planning …
HM Treasury
30
Recommendation
46th Report - Improving local areas thr…
Accepted
We asked the Department whether there were mechanisms to share best practice on themes that are common across other parts of the UK. It explained that fairly regular conversations take place with counterparts in the devolved administrations, but there is no set forum. The Department accepted that it should consider …
Government response. The government agrees to provide further details of how it will sponsor more effective communication between government departments, local planning authorities, and the devolved nations, and states that this recommendation is implemented. They will look to build upon and extend …
HM Treasury