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BRIEFING PAPER

Number 8947, 26 June 2020

Business and Planning Bill 2019-21

By John Woodhouse Gabrielle Garton Grimwood

Contents: 1. Background 2. The Bill 3. Licensing: consuming food

and drink outdoors (Part 1) 4. Other measures relating to

business (Part 2) 5. Planning (Part 3)

2 Business and Planning Bill 2019-21

Contents Summary 3

1. Background 4 1.1 Impact of COVID-19 on the food and accommodation sector 4 1.2 Calls for further support 7

2. The Bill 8

3. Licensing: consuming food and drink outdoors (Part 1) 10 3.1 Clauses 1-10: Outdoor seating 10

The Bill 10 3.2 Clause 11: Alcohol licensing 10

The Bill 11 3.3 Comment 12

4. Other measures relating to business (Part 2) 13 4.1 Clause 12: Bounce Back Loans Scheme 13 4.2 Clauses 13-15: Vehicle testing and driver licensing 14

Vehicle testing 14 Driver licensing 15

5. Planning (Part 3) 18 5.1 Background: aspects of planning policy 18 5.2 The Bill 21

Clause 16: planning conditions relating to construction working hours 21 Clause 17: time limits for development 21 Clause 18: outline planning permission 22 Clause 19: listed building consent 22 Clause 20: planning proceedings 22 Clause 21: inspection of the Mayor of London’s spatial development strategy 23

5.3 Commentary on the Bill’s planning provisions 23

Contributing Authors: Georgina Hutton (Statistics) Louise Butcher (Transport) Steve Browning (Bounce Back Loan Scheme)

Cover page image copyright Outside tables by Hans / image cropped. Licensed under Pixabay License – no copyright required.

3 Commons Library Briefing, 26 June 2020

Summary The Business and Planning Bill 2019-21 was introduced in the House of Commons on 25 June 2020. The Bill is due to have its Commons stages on 29 June 2020.

The purpose of the Bill is to help businesses recover from the disruption caused by Covid-19 and to support them in implementing safer ways of working, in particular the need for social distancing. The Bill would:

• make it easier for restaurants and pubs in England and Wales to seat and serve customers outdoors through temporary changes to licensing law and outdoor seating;

• make changes to planning law in England to ensure that the planning system can support the planning and safe construction of new development following the impact of Covid-19. These changes would cover: a fast track process for varying planning conditions relating to working hours on construction sites; time limits for development (extending the dates on which planning permission, outline planning permission and listed building consents might otherwise expire); planning proceedings (giving the Planning Inspectorate more flexibility in deciding whether certain local planning appeals should be heard by way of written representations, a hearing or a local inquiry) and arrangements for the electronic inspection of the Mayor of London’s spatial development strategy;

• facilitate ‘Bounce Back Loans’ by disapplying ‘unfair relationships’ provisions in the Consumer Credit Act 1974 for lending made under the Bounce Back Loans Scheme;

• make changes to HGV and PCV licensing in Great Britain and Northern Ireland and roadworthiness testing for heavy vehicles in Great Britain to prevent a backlog of checks and tests from disrupting services, whilst respecting safety considerations.

The Bill, Explanatory Notes, Government Analysis, and other documents are available from the Parliament website.

4 Business and Planning Bill 2019-21

1. Background

1.1 Impact of COVID-19 on the food and accommodation sector

Food and accommodation services businesses have been some of the hardest hit by the coronavirus outbreak in terms of business activity and economic output. Restaurants, bars and cafes have been only allowed to offer take away services from 20 March 20201 – this has led to a large decline in economic output and turnover for the sector.

The economic output of the food and accommodation sector was 92% lower in April compared with February 2020 – the largest decline of all sectors with available data (see chart below). Decline in economic output has been broad across the economy. In the arts and entertainment sector output dropped by 47%, in construction it was 44% lower. Overall in April, GDP was 25% lower compared to February – the biggest decline since official monthly records began.2

For a full discussion of the broad economic impacts of coronavirus, see the Library Insight Coronavirus: Record GDP fall in April,12 June 2020 and briefing paper, Coronavirus: Effect on the economy and public finances (CBP8866).

Similar trends for highly impacted sectors are seen in surveys that have monitored business trading status, turnover and cash reserves through the lockdown period.3 65% of businesses in the accommodation and food service sector reported they had temporarily paused trading between 18-31 May according to the Office for National Statistics (ONS)

1 PM’s Office, PM statement on coronavirus: 20 March 2020, Gov.uk, 20 March 2020. 2 ONS, GDP monthly estimate, UK: April 2020, 12 June 2020. 3 ONS, Coronavirus and the economic impacts on the UK: 18 June 2020.

-92%

-47%

-44%

-38%

-34%

-28%

-6%

0%

-100% -80% -60% -40% -20% 0%

Accommodation & food

Arts & entertainment

Construction

Transport & storage

Wholesale & retail trade

Manufacturing

Financial services

Public administration

Accommodation and food sector saw a 92% economic decline in April% change in output in April compared with February, selected sectors of economy*

* Data subject to volatility and a large degree of uncertainty due to Covid-19 Source: ONS, Monthly GDP

5 Commons Library Briefing, 26 June 2020

business survey.4 Of those that were continuing to trade, 66% reported that their turnover had decreased by more than 50%.

Source: ONS, Business Impact of Coronavirus Survey, Wave 6, 18 June 2020.

According to ONS survey data, 9% of businesses in the food and accommodation sector reported that they had no cash reserves and 56% reported that they had less than 6 months reserves remaining (between 18-31 May 2020, see chart below). In the arts, entertainment and recreation sector, 7% of reported no cash reserves and 54% reported less than 6 months reserved. 5

Source: ONS, Business Impact of Coronavirus Survey, Wave 6, 18 June 2020.

4 ONS, Business Impact of Coronavirus Survey (BICS), Wave 6, 7,245 businesses

(35.3%) responded to the survey. The data is unweighted (each business assigned the same weight regardless of turnover or size). Figures shown here are rounded to the nearest percent. Accessed 25 June 2020.

5 ONS, Business Impact of Coronavirus Survey (BICS), Wave 6, 18 June 2020.

23%

26%

28%

38%

64%

66%

24%

0% 10% 20% 30% 40% 50% 60% 70%

Manufacturing

Transport & storage

Wholesale & retail trade

Construction

Arts & entertainment

Accommodation & food

All Industries

Businesses reporting more than 50% decreased turnoverSelected sectors, 18–31 May 2020

9% 8%

34%

15%

56%

14%

0%

10%

20%

30%

40%

50%

60%

No cashreserves

Less than 1month

1–3 months 4–6 months Less than 6months cash

More than 6months

Accommodation and food sector cash reserves18–31 May 2020

6 Business and Planning Bill 2019-21

Use of Government financial support schemes Given the impact of covid-19 on business activity and turnover, Government financial support schemes have been important to help see businesses through the lockdown period. Further information about Government support schemes is available the Library briefing paper: Coronavirus: support for businesses (CBP 8847).

Of businesses that had not permanently stopped trading, 81% had applied for at least one support scheme. The Coronavirus Job Retention Scheme (CJRS) was the most highly used scheme. According to ONS survey data, 97% of responding businesses in the accommodation and food services sector had applied for the CJRS between 18-31 May, 31% had applied for government backed loans and 33% had applied for business grants (from UK or devolved governments).6

According to HMRC data, 59% of employees in the accommodation and food sector (approximately 1.4 million) had been furloughed under the CJRS as of 31 May 2020. 48% (357,000) of employees in the arts, entertainment, recreation and other services sectors were furloughed.7

For further data on the number of business using Government schemes, see the Library briefing paper: Coronavirus business support schemes: statistics (CBP8938). The paper includes local data on businesses eligible for business rates relief and business grants.

For more detailed data the CJRS, see the Library briefing paper Coronavirus: Impact on the labour market (CBP8898).

Statistics on the number of pubs and bars (before the impact of coronavirus) is provided in the Library briefing paper: Pub statistics (CBP 8591)

6 ONS, Business Impact of Coronavirus Survey (BICS), Wave 6, 18 June 2020. 7 HMRC, Coronavirus Job Retention Scheme statistics: June 2020, 11 June 2020,

House of Commons Library calculations.

0%

6%

20%

33%

35%

46%

48%

59%

0% 10% 20% 30% 40% 50% 60%

Public administration &…

Finance & insurance

Transport & storage

Manufacturing

Wholesale and retail trade

Construction

Arts & entertainment

Accommodation & food…

Source: HMRC, Coronavirus Job Retention Scheme statistics: June 2020, 11 June

Percentage of employees furloughed by sectorClaims received up to 31 May 2020, selected sectors

59% of employees in the food and accommodation sector – around 1.4 million – had been furloughed as of 31 May 2020.

7 Commons Library Briefing, 26 June 2020

1.2 Calls for further support UK Hospitality (trade body for the sector) has been calling for financial and regulatory support from the Government to enable businesses to reopen safely and effectivity and to protect jobs through the recovery period.8 The industry has raised concerns that many businesses may struggle to be viable under the reduced capacity required by social distancing conditions. Hospitality associations have stated that re-opening under the “one meter plus” conditions would see a 30% reduction in capacity.9 UK Hospitality highlighted that, in addition to reduced turnover, businesses would face deferred rents and bills when reopening, and in particular, businesses in rural, seaside and tourist areas are losing key summer revenue.10

8 UK Hospitality, Fair4Hospitality campaign, accessed 25 June 2020 9 UK Hospitality, UKHospitality reaction to hospitality reopening announcement, 23

June 2020; British Beer and Pub Association, ‘Al Fresco Pubs’ – sector welcomes plan to increase outdoor serving spaces, as pubs face 30% reduction in capacity, 25 June 2020.

10 UK Hospitality, Fair4Hospitality campaign, accessed 25 June 2020.

8 Business and Planning Bill 2019-21

2. The Bill The Business and Planning Bill 2019-21 was introduced in the House of Commons on 25 June 2020. The Bill would:

• make it easier for restaurants and pubs in England and Wales to seat and serve customers outdoors through temporary changes to planning procedures and alcohol licensing;

• make changes to planning law in England to ensure that the planning system can support the planning and safe construction of new development following the impact of Covid-19;

• facilitate ‘Bounce Back Loans’ by disapplying ‘unfair relationships’ provisions in the Consumer Credit Act 1974 for lending made under the Bounce Back Loans Scheme;

• make changes to HGV and PCV licensing in Great Britain and Northern Ireland and roadworthiness testing for heavy vehicles in Great Britain to prevent a backlog of checks and tests from disrupting services, whilst respecting safety considerations.11

The Bill is due to have its Commons stages on 29 June 2020.

The Bill, Explanatory Notes, Government Analysis, and other documents are available from the Parliament website.

Territorial extent Clauses 1 to 10 of the Bill (outdoor seating) would extend and apply to England and Wales but apply to England only.

Clause 11 (alcohol licensing) would extend and apply to England and Wales.

Clause 12 (Bounce Back Loan Scheme) would extend and apply to England and Wales, Scotland and Northern Ireland.

Clause 13 (Certificates of exemption for public service and goods vehicles) would extend and apply to England, Wales and Scotland.

Clause 14 (Temporary reduction in duration of certain driving licences GB) would extend and apply to England, Wales and Scotland.

Clause 15 (Temporary reduction in duration of certain driving licences: NI) would extend and apply to Northern Ireland only and would require a legislative consent motion from the Northern Ireland Assembly.

Part 3 of the Bill (planning) would extend to England and Wales but apply to England only. Corresponding provision would be within the competence of the National Assembly for Wales, the Scottish Parliament and the Northern Ireland Assembly.

11 See para 2 of the Explanatory Notes to the Bill; “Government outlines support for

pubs, cafes and restaurants”, Gov.UK, 25 June 2020

9 Commons Library Briefing, 26 June 2020

For further detail on territorial extent, see paragraphs 39 to 45 and Annex A of the Explanatory Notes to the Bill. The remaining sections of this Paper give further information on the Bill’s main provisions.

10 Business and Planning Bill 2019-21

3. Licensing: consuming food and drink outdoors (Part 1)

On 20 March 2020, the Prime Minister announced that cafes, pubs, bars and restaurants should close.12 Emma McClarkin, Chief Executive of the British Beer and Pub Association (BBPA), said that the pandemic “has been devastating for the pub sector”.13

In a Commons statement on 23 June 2020, the Prime Minister announced that pubs and restaurants could re-open from 4 July 2020. Guidance for business re-opening is available on Gov.UK.

Part 1 of the Bill would make changes to the licensing of alcohol and outdoor seating to help the economy while enabling social distancing.

3.1 Clauses 1-10: Outdoor seating Under Part 7A of the Highways Act 1980 (as amended), cafes, pubs and restaurants can apply for a “pavement licence” from the local authority. This allows them to place tables and chairs outside on the highway for customers to consume their food and drink.14

The Bill Clauses 1 to 10 of the Bill would introduce a streamlined procedure so that businesses serving food and drink could apply for a temporary pavement licence. This would enable them to maximise their capacity, while complying with social distancing guidelines. The streamlined procedure would, among other things:

• reduce the consultation period for applications from 28 calendar days to 7 days (clause 2(4));

• grant consent to an application after 14 days if a local authority did not issue a decision (clause 3);

• cap the application fee at £100 (clause 2(1)(c)).

• enable a local authority to revoke a licence if, for example, there were risks to public health or safety, or if it risked causing anti-social behaviour or public nuisance (clause 6(3)).

Unless a local authority had specified a time period for a licence, it would expire on 30 September 2021 (clause 4).

3.2 Clause 11: Alcohol licensing Under the Licensing Act 2003 (as amended), a premises licence is required for the sale or supply of alcohol in England and Wales. Local

12 “PM statement on coronavirus: 20 March 2020”, Gov.UK, 20 March 2020 13 Quoted in “Pubs welcome prospective reduction in two-metre social-distancing rule

as ‘a phenomenal move’ towards reopening sector”, Independent, 23 June 2020 14 London boroughs can opt into a procedure set out in the London Local Authorities

Act 1990. The City of Westminster operates its own procedure through the City of Westminster Act 1999.

11 Commons Library Briefing, 26 June 2020

authorities are responsible for issuing and enforcing licences, and must do so to promote four statutory licensing objectives:

• preventing crime and disorder

• preventing public nuisance

• public safety

• preventing children from harm.15

Under the Act, alcohol can be sold for consumption off premises if a business has that “permission” in its premises licence. It is possible to add this permission to an existing licence by applying to the relevant licensing authority for a licence variation.16 Once an application has been made, there are 28 days for objections (“representations”) to be made to it. The fee for applying for a full variation ranges from £100 to £635, depending on a premises’ non-domestic rateable value.17

According to the Government, an estimated 38,800 premises do not hold an off-sales alcohol licence.18

Detailed information on premises licences, including variations, is set out in chapters 8-13 of Home Office guidance (April 2018) on the Act.

The Bill Clause 11 would insert new sections into the 2003 Act to provide automatic extensions to the terms of on-sales alcohol licences to allow for off-sales. This would enable businesses to trade while keeping social distancing measures in place inside.

The modifications to the 2003 Act are technical but the Explanatory Notes to the Bill summarise their effect as follows:

The provisions remove the need for any application to be made, therefore no fee will need to be paid. This will deliver savings to businesses, as well as providing them with certainty about how they are able to trade. It will also reduce the burden on local authorities and the police, who will not need to scrutinize any applications for licence variations from the premises affected by these measures. Licensees who have had an application for an off-sales permission refused or had their off-sales permission excluded by variation or at review within the last three years, will be excluded from this licence extension. This is a safeguard to ensure that where it has recently been decided that the licensee should not have the permission, they do not receive it through this legislation.

The default hours in which off-sales will be permitted will be the same as those in which on-sales are permitted. Any licensee who wished to open for longer hours could apply for a licence variation.

The provisions will also apply temporary conditions to licences where there is a pre-existing permission for off-sales. The conditions will set the hours of off-sales to match those for on-

15 Section 4(2) of the 2003 Act 16 Under section 34 of the 2003 Act 17 HM Government, Analysis supporting the Business and Planning Bill, June 2020, p13 18 Ibid, p12

12 Business and Planning Bill 2019-21

sales, allow off-sales of alcohol in open containers and allow deliveries of alcohol to residential or work buildings. Those conditions will suspend existing conditions that are more restrictive. So, for example, an existing condition that allowed off-sales only in closed containers would be suspended to allow sales in open containers...19

Changes made through clause 11(2) would also enable off-sales reviews to take place if there were problems in relation to the licensing objectives.

The modifications would remain in place until 30 September 2021 (clause 11(13)).

Government Analysis supporting the Bill looks in detail at the costs and benefits of the proposed changes for businesses and licensing authorities. It also considers the potential impact on crime and disorder and on health.20

3.3 Comment Emma McClarkin of the BBPA has said that the Bill would help the sector to recover:

Al Fresco pubs will be welcomed by publicans and customers alike. It will give pubs more outdoor space to serve more customers with, which will help them on their road to recovery.

Our pubs face a 30% reduction in capacity when they reopen under one metre plus social distancing guidelines, so giving them more outdoor space will be a big help.

Pub goers will certainly enjoy the freedom of being able to order a proper pint of draught beer, whilst soaking up the summer sun outside the pub.

For those pubs in more urban areas that do not have a pub garden, this is particularly good news…21

UKHospitality Chief Executive, Kate Nicholls, has also welcomed the Bill:

Businesses will need all the help they can get to return to healthy trading and protecting jobs, so simplifying the licensing process and reducing red tape will be a great help. Opening up outdoor spaces for venues could be a vital lifesaver and mean the difference between a successful reopening or business failures and job losses.

The devil will be in the detail, so it is important that we get some clear guidance to ensure consistency of implementation across local authorities nationwide. These need to ensure minimal cost and notification rather than application…22

19 Explanatory Notes to the Bill, paras 8-9 20 HM Government, Analysis supporting the Business and Planning Bill, June 2020,

pp12-7 21 “‘Al Fresco Pubs’ – sector welcomes plan to increase outdoor serving spaces, as pubs

face 30% reduction in capacity”, BBPA News, 25 June 2020 22 Quoted in “Government to cut red tape to encourage alfresco dining on

pavements”, The Caterer, 25 June 2020

13 Commons Library Briefing, 26 June 2020

4. Other measures relating to business (Part 2)

4.1 Clause 12: Bounce Back Loans Scheme Clause 12 of the Bill would prevent credit agreements made under the Bounce Back Loans Scheme (BBLS) from being subject to the “unfair relationships provisions” (Section 140A) of the Consumer Credit Act 1974.

The Consumer Credit Act

The Consumer Credit Act 1974 and associated legislation and regulation require both lenders and borrowers to provide detailed information as part of credit applications. This information often includes complex forward projections and tests to ensure that the loans are affordable. As part of this, the Act contains provisions that prevent “unfair relationships” between creditors and debtors, in part to protect those taking out loans from unfair terms and conditions.

Responding to the pandemic - business support loans

The original package of Government support through the Coronavirus Business Interruption Loan Scheme was widely welcomed, but huge demand and credit check requirements severely delayed decision-making and the release of funds. In addition, there was widespread frustration at the requirement for forecasting in the context of the pandemic and consequent uncertainties.23

The Bounce Back Loans Scheme (BBLS) was set up in May 2020 to enable businesses to access finance more quickly. As well as offering 100% Government backing to the loans, it also offers self-certification by applicants. In the first week of its operation, the BBLS accounted for over 88% of applications approved and 56% of total funds disbursed under the Government’s loan schemes.24

The Bill – completing relaxation of lending rules

Various legislative changes were needed to ensure that lending rules could be relaxed. The Financial Services and Markets Act 2000 (Regulated Activities) (Coronavirus) (Amendment) Order 2020 (S.I 2020/480), which amended the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, had achieved much of this.

The Chancellor wrote to lenders on 1 May setting out arrangements for the Bounce Back Loan Scheme. As part of this he signalled his intention to introduce retrospective legislation to exclude Bounce Back Loans from the “unfair relationships” provision.

The Explanatory Notes to the Bill state that the “unfair relationships” provisions in the Consumer Credit Act mean that lenders “would need

23 For further discussion of the refinement of the schemes, see Commons Library

Briefing Paper, Coronavirus: Support for businesses (CBP-8447), pp23-7 24 Ibid., p26

14 Business and Planning Bill 2019-21

to continue with many of the processes, in particular the affordability tests, which lengthen the loan application process, or face an unreasonable level of legal risk that the courts will subsequently conclude that the loan agreement gave rise to an unfair relationship – particularly if there was little prospect of the loan being repaid”.

The Explanatory Notes state that applications will still be subject to fraud and wider know-your-customer checks.

4.2 Clauses 13-15: Vehicle testing and driver licensing

During the course of the coronavirus pandemic in the UK the Government has made a series of changes to help drivers and transport operators – such as waiving MOTs and vehicle checks and extending driving licence renewal dates – for a limited period. This Bill would make two further changes:

• To extend the power of the Secretary of State to exempt certain heavy goods and passenger service vehicles temporarily from the need to have a vehicle test certificate (the equivalent of an MOT); and

• To put retrospectively on a legal footing a scheme already in place in Great Britain to issue new heavy goods and passenger service vehicle driving licences for a period of one year without a medical report.25

Vehicle testing Clause 13 is about the power of the Secretary of State to exempt certain heavy goods (HGV) and passenger service (PSV) vehicles26 temporarily from the need to have a vehicle test certificate (the equivalent of an MOT). At present the Secretary of State can issue certificates of exemption for HGVs and PSVs from this requirement.27 Clause 13 broadens these powers and does so to address what the Government foresees as impending ‘excessive test demand’ due to disruption to vehicle testing caused by coronavirus.

At the end of March 2020, the Government announced that all HGVs and PSVs would get an automatic three-month exemption from the requirement to undertake a new vehicle test. This was later extended. The current exemptions apply as follows:

Vehicles and trailers originally due an MOT:

• in March or April 2020 have been given two 3-month exemptions

• in May, June, July or August 2020 will only get one 3-month exemption28

The Government has said that this disruption will cause demand for testing to greatly exceed capacity once testing resumes:

25 Author of this section: Louise Butcher 26 Carrying more than eight passengers 27 Under section 48 and section 53 of the Road Traffic Act 1988, as amended 28 DVSA, Coronavirus: MOTs for lorries, buses and trailers [updated 19 June 2020]

15 Commons Library Briefing, 26 June 2020

DVSA are aiming for 70% of 2019 testing capacity in July, 90% from then until December and 100% from then on. If no further issuance of [certificates of temporary exemption] was granted, then a ‘hump’ in testing demand will be experienced when test centres re-open, leading to delays in vehicle testing and reducing short-term vehicle supply. As demand for heavy vehicles increases during the Covid-19 recovery, this would risk creating bottlenecks in supply chains and potentially reduce the amount of goods that can be transported.29

The power in clause 13 would help the Driver and Vehicle Standards Agency (DVSA) address this. It would give DVSA the flexibility to issue further certificates of temporary exemption to vehicles that it judges are relatively safe. The DVSA would take these judgements based on three main criteria:

1 The age of the vehicle (the younger the vehicle, the lower the failure rate at test);

2 Participation in the Earned Recognition scheme (members have lower test failure rates than average); and

3 The Operator Compliance Risk Score (OCRS) (this is calculated by DVSA for each operator, based on their history of compliance with roadworthiness and traffic laws).30

The Explanatory Notes state that the provisions in clause 13 would permanently broaden an already existing power to grant certificates of temporary exemption. However, the “policy intention is only to use the expanded power temporarily in response to the Covid-19 outbreak”.31 The Government’s rationale for this appears to be to give the Secretary of State flexibility in the event that such short term emergency measures should be needed in the future:

In an instance where there is a longer recovery period (up to 2 years) from Covid-19, with further peaks in infection rates until a vaccination is sought, there is likely to be periods where social distancing restrictions are varying, which amplifies the need for flexible regulation. Under the existing regulation, the general relaxation is a blunt instrument to manage the demand for tests during capacity constraints. The recommended option would support a more targeted approach which can mitigate against higher risk operators. This would further allow the ability to manage testing demand to recover both economically and operationally from the shock caused by the further peaks in infections.32

Driver licensing Clauses 14 and 15 are about the issuing of new HGV and PSV driver licences for a limited period of one year without a medical report. Clause 14 applies these provisions retrospectively to Great Britain where a scheme to issue one-year licences without a medical report was announced on 17 April 2020 and implemented fully on 5 May 2020.

29 HMG, Analysis supporting the Business and Planning Bill, 25 June 2020, p22 30 Ibid., p23 31 Explanatory Notes Bill 148, 25 June 2020, para 19 32 Op cit., Analysis supporting the Business and Planning Bill, p32

16 Business and Planning Bill 2019-21

Clause 15 would provide the same powers in Northern Ireland, but are not retrospective as no one-year licences have been issued there.33

By way of background, normally an application to renew an HGV or PSV licence at age 45 or over must include a medical examination report (D4) which is signed by a doctor. However, given the pressures caused by the coronavirus pandemic, NHS doctors have been unable to carry out these examinations, so applicants have been unable to obtain D4 medical reports required to support their application.34 This was why the Government suspended the D4 requirement for those obtaining a new licence after 1 January 2020. Licences issued without a D4 would only be valid for one year.

The Government argues that failure to have made this change could have had serious negative consequences for the supply chain and key workers:

If licences are not issued there would be a substantial reduction in the availability of lorry and bus drivers and, potentially, drivers of emergency vehicles who are subject to lorry and bus licensing requirements given the size of the vehicles. In the case of lorry drivers in particular, this will in turn cause disruption to supply lines that are vital to the response to the pandemic and potentially put thousands of people out of work. The loss of these drivers will be in addition to the reduction in the workforce caused by drivers being off sick with the virus itself.35

However, it also acknowledges that there is a potential road safety risk from this approach. It is not certain how great this risk is – even without a D4 applicants still have to make a declaration about their health at the time of applying for a new licence – but “the absence of a formal examination might be expected to result in a reduction in accurate declarations”.36 In these circumstances, the road safety risk is represented by the number of drivers that potentially, in a worst-case scenario, will be granted a licence without an investigation into their fitness drive. The Government estimates that this could be up to 72,000 drivers by year two.37

Clauses 14 and 15 would be valid until 24 March 2022 – the point at which the Coronavirus Act 2020 expires. The Government states that this could cover a scenario where a one-year licence needs to be extended for a further year while it is still not possible to reintroduce the D4:

To account for the uncertainty around progress on the Covid-19 pandemic, any power to issue 1-year licences would last for 2 years … The use of this power would be subject to review … of whether the requirement for a D4 could be reintroduced. However, if it has not been possible to reintroduce the D4

33 Op cit., Explanatory Notes Bill 148, para 33 34 surveys carried out by the Freight Transport Association at the beginning of April

showed that between and fifth and a quarter of its members reported issues in drivers renewing their entitlement as a result of problems in getting a medical assessment [Op cit., Analysis supporting the Business and Planning Bill, p34]

35 Op cit., Explanatory Notes Bill 148, para 28 36 Op cit., Analysis supporting the Business and Planning Bill, p40 37 Ibid., p40

17 Commons Library Briefing, 26 June 2020

requirement by the time an individual’s first 1-year licence has expired, then a further 1-year licence would be issued without a D4.38

38 Ibid., p37

18 Business and Planning Bill 2019-21

5. Planning (Part 3) Part 3 of the Bill would make changes to planning law in England to ensure that the planning system can support the planning and safe construction of new development following the impact of Covid-19.

5.1 Background: aspects of planning policy Planning conditions The National Planning Policy Framework (NPPF) provides the background against which local plans and drawn up and applications for planning permission are considered. It was revised and updated in July 2018, following a consultation, with subsequent minor revision in February 2019.

Local Planning Authorities (LPAs) have wide powers, when granting planning permission, to impose planning conditions. They therefore sometimes impose planning conditions to limit or prevent problems that may otherwise be caused by the development for which planning permission is being sought. These planning conditions must, though, meet the six policy tests in the NPPF that they are: necessary; relevant to planning and to the development to be permitted; enforceable; precise and reasonable in all other respects.39

Timescales for development The NPPF contains new measures intended (through use of planning conditions) to encourage a prompt start to development.

The Commons Library briefing What next for planning in England? The National Planning Policy Framework examines the new NPPF.40 Timescales for development are discussed in section 12.

As the Library briefing discusses at more length, the NPPF 2019 contains new measures intended to encourage a prompt start to development, giving LPAs the power to impose planning conditions requiring that development should begin within a timescale shorter than the statutory default time limit (currently 3 years for a full planning permission – LPAs could already vary the time limit but had to have good planning reasons to do so). The Planning Practice Guidance (PPG) on use of planning conditions discusses conditions relating to time limits, noting that 3 years for a development beginning is normally used, but longer or shorter time limits can be applied.41

39 Ministry of Housing, Communities and Local Government (MHCLG), National

Planning Policy Framework, CP 48, February 2019, paragraph 55 40 CBP 8260, 10 June 2019 41 MHCLG, Guidance: Use of planning conditions, 6 March 2014 updated 23 July 2019

19 Commons Library Briefing, 26 June 2020

Environmental impact assessment and Habitats requirements The NPPF 2019 has a chapter on conserving and enhancing the natural environment, which opens by setting out how (amongst other things) planning policies and decisions should protect and enhance valued landscapes, sites of biodiversity or geological value and minimise impacts on (and provide net gains for) biodiversity.42 On pre-application engagement and front-loading, the NPPF 2019 mentions the role of environmental impact and Habitats assessments in providing the right information to enable good decision-making.43

The PPG on environmental impact assessment explains the requirements of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017.44,45 The PPG offers additional guidance on natural environment46 and tree preservation orders and trees in conservation areas.47

Outline planning permission and reserved matters Outline planning permission means (in broad terms) that the approval process is split into two stages – the initial approval of the principle of the development and the later approval of “reserved matters”. Outline planning permission is granted subject to conditions requiring the subsequent approval of one or more ‘reserved matters’.

An application for outline planning permission allows for a decision on the general principles of how a site can be developed and, once outline planning permission has been granted, the principle of the development is taken to be agreed. It cannot be re-determined during the determination of any subsequent reserved matters application, even if there has been a change to the development plan during the intervening period.

Guidance available through the Planning Portal outlines the process.48 The PPG on making an application sets out the details that must be submitted at the outline planning application stage and the matters capable of being “reserved” matters as defined in article 2 of the Town and Country Planning (Development Management Procedure) (England) Order 2015.49 These are access, appearance, landscaping, layout and scale.50

42 MHCLG, National Planning Policy Framework, CP 48, February 2019: paragraph 170 43 MHCLG, National Planning Policy Framework, CP 48, February 2019, paragraph 43 44 MHCLG, Guidance: Environmental impact assessment, 6 March 2014 updated 13

May 2020 45 SI 2017/571 46 21 January 2016, updated 21 July 2019 47 6 March 2014 48 Planning Portal, Application for outline planning permission with some matters

reserved …Application for outline planning permission with all matters reserved, Town and Country Planning Act 1990, V1 England (undated, accessed 25 June 2020)

49 SI 2015/595 50 MHCLG, Guidance: Making an application, 6 March 2014, updated 15 June 2018

20 Business and Planning Bill 2019-21

Listed building consent For heritage protection for listed buildings, two separate consent regimes run in parallel: listed building consent and planning permission. Both of these consents are issued by the local authority and the development must also abide by the NPPF, the Local Plan and the Neighbourhood Plan if applicable.

In addition to the normal planning framework set out in the Town and Country Planning Act 1990 (the 1990 Act), the Planning (Listed Buildings and Conservation Areas) Act 1990 provides specific protection for buildings and areas of special architectural or historic interest. The requirement to have permission to conduct works on a listed building is set out in section 16 and 66 of the latter Act. Under section 18 of the same Act (as amended), listed building consent will usually lapse after three years.

The PPG on the historic environment explains the two regimes and outlines when work to a listed building is likely to require planning permission.51 Historic England also offers guidance on listed buildings and the permission and consent that must be sought.52

Inspection of the Mayor of London’s spatial development strategy Section 334 of the Greater London Authority Act 1999 requires the Mayor of London to prepare and publish a spatial development strategy, setting out strategic planning policies for London.

Section 43 of the same Act requires the Mayor of London to publicise his strategies, including his spatial development strategy. Current versions must be made available for public inspection at the Greater London Authority’s offices and other suitable places, and provided at reasonable cost to any person who asks for them.

Planning: changes in response to Covid-19 The Government has already made some changes to the planning regime in England, in response to the Covid-19 pandemic.

The Government has urged LPAs to keep going during the pandemic, and the Coronavirus Act 2020 gave them certain powers to (eg) hold planning meetings remotely.53 The relevant regulations are The Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020.54

51 MHCLG, Guidance: Historic environment, 6 March 2014, updated 23 July 2019 52 See, for example, Historic England, What permission might I need to make changes

to my older home?, Consent and Planning Permission Requirements and Listed building consent (all undated, accessed 25 June 2020). Historic England is an executive, non-departmental public body sponsored by the Department for Digital, Culture, Media and Sport.

53 Sections 4 and 5 54 SI 2020/392

21 Commons Library Briefing, 26 June 2020

Public inquiries are suspended, although the Government is looking for technological solutions55 and the Planning Inspectorate is moving towards fully or partially online inquiries.56 MHCLG has also issued several pieces of guidance to local authorities on planning and building safety.

5.2 The Bill Clause 16: planning conditions relating to construction working hours Clause 16 aims to create a fast track application process for the temporary variation of planning conditions relating to construction site working hours. It does this by amending the Town and Country Planning Act 1990, so that – where planning permission has been granted in England for anything other than the “relevant development of [an existing] dwelling house” and the planning permission specifies the hours in which construction work may take place – anyone “with an interest in the land” may apply for permission for work to be carried out for a longer period or on a day when it would not otherwise be allowed.

Any such extension must be for a temporary period, not extending beyond 1 April 2021. The application process itself expires at the end of 1 April 2021 (subsection 6) although the Secretary of State may extend it through regulations (subsection 7).

Applications for variations of these planning conditions should be turned around within 14 days: the clause provides that if the LPA does not give a decision within 14 days (starting on the day after the application is sent) it is deemed to be granted and the applicant can implement the new working hours.

According to the Explanatory Notes, these changes will enable the facilitation of safe construction working practices in line with social distancing guidance issued by the Government and Public Health England in response to Covid-19.57

Clause 17: time limits for development Clauses 17 to 19 allow for longer commencement periods for unimplemented planning permissions and listed building consents.

Clause 17 modifies the Town and Country Planning Act 1990, so as extend any condition that imposes a time limit for development for a relevant planning permission, where that time limit for commencement of development is due to expire between the date the clause comes into force and 31 December 2020, to 1 April 2021. Where the time limit for commencement expired between 23 March 2020 and the date on

55 PQ HL2957, 2 April 2020 56 See, for example, “PINS chief: Appeal hearings and inquiries are likely to become

'more agile' in future”, Planning, 6 May 2020 (subscription required – Members and their staff may obtain copies of this article from the Commons Library on 020 7219 3666)

57 BEIS, Business and Planning Bill: Explanatory Notes, p21

22 Business and Planning Bill 2019-21

which the clause comes into force, the same extension will apply, if an “additional environmental approval” is granted or deemed to be granted. The Explanatory Notes observe that the LPA is to grant additional environmental approval if it is satisfied that the environmental impact assessment (EIA) and Habitats requirements are met and explain how those requirements are met.58

The Explanatory Notes offer two examples of how the Bill’s provisions would work in practice.59

Clause 18: outline planning permission Likewise, clause 18 provides for extensions of time limits relating to outline planning permission. This clause extends the time limit for submitting an application for approval of a reserved matter in those outline permissions where that time limit expires between 23 March 2020 and 3 December 2020, and the time limit for commencement of development relating to an outline planning permission where that time limit is due to expire between the date the clause comes into force and 31 December 2020. The time limits will be extended to 1 April 2021.

Again, the Explanatory Notes provide examples of how the Bill’s provisions would work in practice.60

Clause 19: listed building consent Clause 19 makes certain changes to the Planning (Listed Buildings and Conservation Areas) Act 1990. It extends certain listed building consents, where the work should have commenced between 23 March 2020 and 31 December 2020 (subsection 1), so that the work must begin no later than 1 April 2021 (subsection 2), with no further extension beyond that (subsection 3). Subsection 1 expires on 1 April 2021.

Clause 20: planning proceedings Clause 20 relates to the Secretary of State’s power to determine to determine which procedure - written representations, a hearing or a local inquiry - should be adopted in certain planning appeals. These decisions are delegated to the Planning Inspectorate. According to the Explanatory Notes, it will enable “a more flexible deployment of one or more of the three types of procedure”. These decisions are delegated to the Planning Inspectorate, whose Planning Inspectors take the decision on behalf of the Secretary of State and who deal with the various planning appeals covered by this clause.

Subsections 1 to 3 list the various appeals and applications to which the clause‘s provisions would apply.

These changes would be permanent. The Explanatory Notes say that they would create flexibility and ongoing efficiencies and would “enable the Planning Inspectorate to deal with cases quickly and efficiently during the coronavirus pandemic”.61

58 BEIS, Business and Planning Bill: Explanatory Notes, p23 59 BEIS, Business and Planning Bill: Explanatory Notes, pp24-5 60 BEIS, Business and Planning Bill: Explanatory Notes, pp26-7 61 BEIS, Business and Planning Bill: Explanatory Notes, p28

23 Commons Library Briefing, 26 June 2020

Clause 21: inspection of the Mayor of London’s spatial development strategy Clause 21 would create a temporary modification – expiring on 31 December 2020 (although the Secretary of State could make regulations to extend that date (subsection 3) – to the requirement for the Mayor of London to publicise his spatial development strategy.

The spatial development strategy would not have to be made available at the Greater London Authority offices or at other suitable places, or provided at reasonable cost to anyone who asks for it, if a current version is available for inspection free of charge by “appropriate electronic means”; the clause specifies the circumstances in which the current version will be available for inspection “by appropriate electronic means”.

Coming into force The Bill’s planning provisions would come into force on various dates:

• Clause 20 (planning proceedings) and clause 21 (electronic inspection of the Mayor of London’s spatial development strategy) would come into force on the day of Royal Assent

• Clause 16 (construction working hours) would come into force at the end of 6 days beginning with the day of Royal Assent and

• Clauses 17-19 (extension of certain permissions and consents) would come into force at the end of 28 days beginning with the day of Royal Assent.

5.3 Commentary on the Bill’s planning provisions

Victoria Hills, the CEO of the Royal Town Planning Institute (RTPI), welcomed the announcement by Robert Jenrick, the Housing Secretary, of the provisions relating to extensions to planning permission:

The RTPI has been calling on this Government to extend planning permissions granted since the beginning of lockdown so we are delighted that the Minister has agreed with us and has taken these measures. Planners have been at the forefront of flexible approaches and innovative thinking in responding quickly to the pandemic and now how we need to shape a fairer and more sustainable recovery.

The measures announced today should mean that developers can get on and start on the housing developments we need without having to apply for extensions. We also warmly welcome the greater flexibility allowed to the Planning Inspectorate announced today to use more than one procedure at a time to speed up the appeals process.62

62 RTPI, “The RTPI welcomes extension to planning permissions granted”, 22 June

2020

BRIEFING PAPER Number 8947 26 June 2020

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