Localism Bill (HL Bill 90)

(3) The power of a local planning authority to designate a
neighbourhood area as a business area is exercisable by the authority
only if, having regard to such matters as may be prescribed, they
consider that the area is wholly or predominantly business in nature.

(4) 5The map published by a local planning authority under section
61G(8) must state which neighbourhood areas (if any) are for the
time being designated as business areas.

61I Neighbourhood areas in areas of two or more local planning
authorities

(1) 10The power to designate an area as a neighbourhood area under
section 61G is exercisable by two or more local planning authorities
in England if the area falls within the areas of those authorities.

(2) Regulations may make provision in connection with—

(a) the operation of subsection (1), and

(b) 15the operation of other provisions relating to neighbourhood
development orders (including sections 61F to 61H) in cases
where an area is designated as a neighbourhood area as a
result of that subsection.

(3) The regulations may in particular make provision—

(a) 20modifying or supplementing the application of, or
disapplying, any of the provisions mentioned in subsection
(2)(b),

(b) applying (with or without modifications) any provision of
Part 6 of the Local Government Act 1972 (discharge of
25functions) in cases where the provision would not otherwise
apply,

(c) requiring local planning authorities to exercise, or not to
exercise, any power conferred by any provision of that Part
(including as applied by virtue of paragraph (b)), and

(d) 30conferring powers or imposing duties on local planning
authorities.

61J Provision that may be made by neighbourhood development order

(1) A neighbourhood development order may make provision in
relation to—

(a) 35all land in the neighbourhood area specified in the order,

(b) any part of that land, or

(c) a site in that area specified in the order.

(2) A neighbourhood development order may not provide for the
granting of planning permission for any development that is
40excluded development.

(3) For the meaning of “excluded development”, see section 61K.

(4) A neighbourhood development order may not grant planning
permission for any development in any particular case where
planning permission is already granted for that development in that
45case.

(5) A neighbourhood development order may not relate to more than
one neighbourhood area.

(6) A neighbourhood development order may make different provision
for different cases or circumstances.

61K 5Meaning of “excluded development”

The following development is excluded development for the
purposes of section 61J—

(a) development that consists of a county matter within
paragraph 1(1)(a) to (h) of Schedule 1,

(b) 10development that consists of the carrying out of any
operation, or class of operation, prescribed under paragraph
1(j) of that Schedule (waste development) but that does not
consist of development of a prescribed description,

(c) development that falls within Annex 1 to Council Directive
1585/337/EEC on the assessment of the effects of certain public
and private projects on the environment (as amended from
time to time),

(d) development that consists (whether wholly or partly) of a
nationally significant infrastructure project (within the
20meaning of the Planning Act 2008),

(e) prescribed development or development of a prescribed
description, and

(f) development in a prescribed area or an area of a prescribed
description.

61L 25Permission granted by neighbourhood development orders

(1) Planning permission granted by a neighbourhood development
order may be granted—

(a) unconditionally, or

(b) subject to such conditions or limitations as are specified in the
30order.

(2) The conditions that may be specified include—

(a) obtaining the approval of the local planning authority who
made the order but not of anyone else, and

(b) provision specifying the period within which applications
35must be made to a local planning authority for the approval
of the authority of any matter specified in the order.

(3) Regulations may make provision entitling a parish council in
prescribed circumstances to require any application for approval
under subsection (2) of a prescribed description to be determined by
40them instead of by a local planning authority.

(4) The regulations may in particular make provision—

(a) as to the procedure to be followed by parish councils in
deciding whether to determine applications for approvals
(including the time by which the decisions must be made),

(b) 45requiring parish councils in prescribed circumstances to
cease determining applications for approvals,

(c) conferring powers or imposing duties on local planning
authorities,

(d) treating parish councils as local planning authorities (instead
of, or in addition to, the authorities) for the purposes of the
determination of applications for approvals (subject to such
exceptions or modifications in the application of any
5enactment as may be prescribed),

(e) applying any enactment relating to principal councils within
the meaning of section 270 of the Local Government Act 1972
for those purposes (with or without modifications), and

(f) disapplying, or modifying the application of, any enactment
10relating to parish councils for those purposes.

(5) A neighbourhood development order may provide for the granting
of planning permission to be subject to the condition that the
development begins before the end of the period specified in the
order.

(6) 15Regulations may make provision as to the periods that may be
specified in neighbourhood development orders under subsection
(5).

(7) If—

(a) planning permission granted by a neighbourhood
20development order for any development is withdrawn by the
revocation of the order under section 61M, and

(b) the revocation is made after the development has begun but
before it has been completed,

the development may, despite the withdrawal of the permission, be
25completed.

(8) But an order under section 61M revoking a neighbourhood
development order may provide that subsection (7) is not to apply in
relation to development specified in the order under that section.

61M Revocation or modification of neighbourhood development orders

(1) 30The Secretary of State may by order revoke a neighbourhood
development order.

(2) A local planning authority may, with the consent of the Secretary of
State, by order revoke a neighbourhood development order that they
have made.

(3) 35If a neighbourhood development order is revoked, the person
revoking the order must state the reasons for the revocation.

(4) A local planning authority may at any time by order modify a
neighbourhood development order that they have made for the
purpose of correcting errors.

(5) 40If the qualifying body that initiated the process for the making of that
order is still authorised at that time to act for the purposes of a
neighbourhood development order in relation to the neighbourhood
area concerned, the power under subsection (4) is exercisable only
with that body’s consent.

(6) 45A modification of a neighbourhood development order is to be done
by replacing the order with a new one containing the modification.

(7) Regulations may make provision in connection with the revocation
or modification of a neighbourhood development order.

(8) The regulations may in particular make provision—

(a) for the holding of an examination in relation to a revocation
5proposed to be made by the authority,

(b) as to the payment by a local planning authority of
remuneration and expenses of the examiner,

(c) as to the award of costs by the examiner,

(d) as to the giving of notice and publicity in connection with a
10revocation or modification,

(e) as to the information and documents relating to a revocation
or modification that are to be made available to the public,

(f) as to the making of reasonable charges for anything provided
as a result of the regulations,

(g) 15as to consultation with and participation by the public in
relation to a revocation, and

(h) as to the making and consideration of representations about
a revocation (including the time by which representations
must be made).

61N 20Legal challenges in relation to neighbourhood development orders

(1) A court may entertain proceedings for questioning a decision to act
under section 61E(4) or (8) only if—

(a) the proceedings are brought by a claim for judicial review,
and

(b) 25the claim form is filed before the end of the period of 6 weeks
beginning with the day on which the decision is published.

(2) A court may entertain proceedings for questioning a decision under
paragraph 12 of Schedule 4B (consideration by local planning
authority of recommendations made by examiner etc) only if—

(a) 30the proceedings are brought by a claim for judicial review,
and

(b) the claim form is filed before the end of the period of 6 weeks
beginning with the day on which the decision is published.

(3) A court may entertain proceedings for questioning anything relating
35to a referendum under paragraph 14 or 15 of Schedule 4B only if—

(a) the proceedings are brought by a claim for judicial review,
and

(b) the claim form is filed during the period of 6 weeks beginning
with the day on which the result of the referendum is
40declared.

61O Guidance

Local planning authorities must have regard to any guidance issued
by the Secretary of State in the exercise of any function under any
provision relating to neighbourhood development orders (including
45any function under any of sections 61F to 61H).

61P Provision as to the making of certain decisions by local planning
authorities

(1) Regulations may make provision regulating the arrangements of a
local planning authority for the making of any prescribed decision
5under any provision relating to neighbourhood development orders
(including under any of sections 61F to 61H).

(2) The provision made by the regulations is to have effect despite
provision made by any enactment as to the arrangements of a local
planning authority for the exercise of their functions (such as section
10101 of the Local Government Act 1972 or section 13 of the Local
Government Act 2000).

61Q Community right to build orders

Schedule 4C makes provision in relation to a particular type of
neighbourhood development order (a community right to build
15order).”

3 In section 5(3) (provisions for the purposes of which the Broads Authority
are the sole district planning authority)—

(a) after “sections” insert “61E to 61Q,”, and

(b) at the end insert “and Schedules 4B and 4C”.

4 20In Schedule 1 (local planning authorities: distribution of functions), after
paragraph 6 insert—

“6A (1) This paragraph applies to the functions of local planning
authorities under any of sections 61E to 61Q and Schedules 4B and
4C (neighbourhood development orders).

(2) 25Those functions are to be exercised by a district planning authority
in any area of a non-metropolitan county.”

Part 2 Neighbourhood development plans

5 The Planning and Compulsory Purchase Act 2004 is amended as follows.

6 30In section 38 (development plan)—

(a) in subsection (2), omit the “and” at the end of paragraph (a) and at
the end of paragraph (b) insert “, and

(c) the neighbourhood development plans which have
been made in relation to that area.”,

(b) 35in subsection (3), at the end of paragraph (b) insert “, and

(c) the neighbourhood development plans which have
been made in relation to that area.”,

(c) in subsection (5), for “to be adopted, approved or published (as the
case may be)” substitute “to become part of the development plan”,
40and

(d) at the end insert—

“(10) Neighbourhood development plan must be construed in
accordance with section 38A.”

7 After that section insert—

“38A Meaning of “neighbourhood development plan”

(1) Any qualifying body is entitled to initiate a process for the purpose
of requiring a local planning authority in England to make a
5neighbourhood development plan.

(2) A “neighbourhood development plan” is a plan which sets out
policies (however expressed) in relation to the development and use
of land in a particular neighbourhood area specified in the plan.

(3) Schedule 4B to the principal Act, which makes provision about the
10process for the making of neighbourhood development orders,
including—

(a) provision for independent examination of orders proposed
by qualifying bodies, and

(b) provision for the holding of referendums on orders proposed
15by those bodies,

is to apply in relation to neighbourhood development plans (subject
to the modifications set out in section 38C(5) of this Act).

(4) A local planning authority to whom a proposal for the making of a
neighbourhood development plan has been made—

(a) 20must make a neighbourhood development plan to which the
proposal relates if in each applicable referendum under that
Schedule (as so applied) more than half of those voting have
voted in favour of the plan, and

(b) if paragraph (a) applies, must make the plan as soon as
25reasonably practicable after the referendum is held.

(5) If—

(a) there are two applicable referendums under that Schedule as
so applied (because the plan relates to a neighbourhood area
designated as a business area under section 61H of the
30principal Act), and

(b) in one of those referendums (but not the other) more than half
of those voting have voted in favour of the plan,

the authority may (but need not) make a neighbourhood
development plan to which the proposal relates.

(6) 35The authority are not to be subject to the duty under subsection (4)(a)
if they consider that the making of the plan would breach, or would
otherwise be incompatible with, any EU obligation or any of the
Convention rights (within the meaning of the Human Rights Act
1998).

(7) 40Regulations made by the Secretary of State may make provision as to
the procedure to be followed by local planning authorities in cases
where they act under subsection (6).

(8) The regulations may in particular make provision—

(a) for the holding of an examination,

(b) 45as to the payment by a local planning authority of
remuneration and expenses of the examiner,

(c) as to the award of costs by the examiner,

(d) as to the giving of notice and publicity,

(e) as to the information and documents that are to be made
available to the public,

(f) as to the making of reasonable charges for anything provided
5as a result of the regulations,

(g) as to consultation with and participation by the public, and

(h) as to the making and consideration of representations
(including the time by which representations must be made).

(9) The authority must publish in such manner as may be prescribed—

(a) 10their decision to act under subsection (4) or (6),

(b) their reasons for making that decision, and

(c) such other matters relating to that decision as may be
prescribed.

(10) The authority must send a copy of the matters required to be
15published to—

(a) the qualifying body that initiated the process for the making
of the plan, and

(b) such other persons as may be prescribed.

(11) If a neighbourhood development plan is in force in relation to a
20neighbourhood area—

(a) a qualifying body may make a proposal for the existing plan
to be replaced by a new one, and

(b) the process for the making of the replacement plan is the
same as the process for the making of the existing plan.

(12) 25For the purposes of this section—

• “local planning authority” has the same meaning as it has in
  Part 2 (see section 37), but the Broads Authority are to be the
  only local planning authority for the Broads,

• “neighbourhood area” has the meaning given by sections 61G
  30and 61I(1) of the principal Act,

• “prescribed” means prescribed by regulations made by the
  Secretary of State, and

• “qualifying body” means a parish council, or an organisation or
  body designated as a neighbourhood forum, authorised for
  35the purposes of a neighbourhood development plan to act in
  relation to a neighbourhood area as a result of section 61F of
  the principal Act, as applied by section 38C of this Act.

38B Provision that may be made by neighbourhood development plans

(1) A neighbourhood development plan—

(a) 40must specify the period for which it is to have effect,

(b) may not include provision about development that is
excluded development, and

(c) may not relate to more than one neighbourhood area.

(2) Only one neighbourhood development plan may be made for each
45neighbourhood area.

(3) If to any extent a policy set out in a neighbourhood development
plan conflicts with any other statement or information in the plan,
the conflict must be resolved in favour of the policy.

(4) Regulations made by the Secretary of State may make provision—

(a) 5restricting the provision that may be included in
neighbourhood development plans about the use of land,

(b) requiring neighbourhood development plans to include such
matters as are prescribed in the regulations, and

(c) prescribing the form of neighbourhood development plans.

(5) 10A local planning authority must publish each neighbourhood
development plan that they make in such manner as may be
prescribed by regulations made by the Secretary of State.

(6) Section 61K of the principal Act (meaning of “excluded
development”) is to apply for the purposes of subsection (1)(b).

38C 15Supplementary provisions

(1) The following provisions of the principal Act are to apply in relation
to neighbourhood development plans.

(2) The provisions to be applied are—

(a) section 61F (authorisation to act in relation to neighbourhood
20areas),

(b) section 61I(2) and (3) (neighbourhood areas in areas of two or
more local planning authorities),

(c) section 61M (revocation or modification of neighbourhood
development orders),

(d) 25section 61N (legal challenges),

(e) section 61O (guidance), and

(f) section 61P (provision as to the making of certain decisions
by local planning authorities).

(3) Section 61M of the principal Act is to apply in accordance with
30subsection (2) of this section as if the words “by order” (wherever
occurring) were omitted.

(4) Section 61N(1) of the principal Act is to apply in accordance with
subsection (2) of this section as if the reference to section 61E(4) or (8)
of that Act were a reference to section 38A(4) or (6) of this Act.

(5) 35Schedule 4B to the principal Act is to apply in accordance with
38A(3) of this Act with the following modifications—

(a) the reference to section 61E(8) of the principal Act is to be
read as a reference to section 38A(6) of this Act,

(b) references to the provision made by or under sections 61E(2), 61J and 61L of the principal Act are to be read as references to
40the provision made by or under sections 38A and 38B of this
Act,

(c) references to section 61L(2)(b) or (5) of the principal Act are
to be disregarded, and

(d) paragraph 8 is to have effect as if sub-paragraphs (2)(b) and
45(c) and (3) to (5) were omitted.

(6) Regulations under section 61G(11) of the principal Act (designation
of areas as neighbourhood areas) may include provision about the
consequences of the modification of designations on proposals for
neighbourhood development plans, or on neighbourhood
5development plans, that have already been made.

(7) The fact that the list of applied provisions includes section 61N(2)
and (3) of the principal Act is not to affect the operation of section
20(2) of the Interpretation Act 1978 in relation to other references to
enactments applied in accordance with this section.”

Section 104

10SCHEDULE 10 Process for making of neighbourhood development orders

This is the Schedule to be inserted as Schedule 4B to the Town and Country
Planning Act 1990—

Section 61E

“Schedule 4B Process for making of neighbourhood development orders

15Proposals for neighbourhood development orders

1 (1) A qualifying body is entitled to submit a proposal to a local
planning authority for the making of a neighbourhood
development order by the authority in relation to a
neighbourhood area within the area of the authority.

(2) 20The proposal must be accompanied by—

(a) a draft of the order, and

(b) a statement which contains a summary of the proposals
and sets out the reasons why an order should be made in
the proposed terms.

(3) 25The proposal must—

(a) be made in the prescribed form, and

(b) be accompanied by other documents and information of a
prescribed description.

(4) The qualifying body must send to prescribed persons a copy of—

(a) 30the proposal,

(b) the draft neighbourhood development order, and

(c) such of the other documents and information
accompanying the proposal as may be prescribed.

(5) The Secretary of State may publish a document setting standards
35for—

(a) the preparation of a draft neighbourhood development
order and other documents accompanying the proposal,

(b) the coverage in any document accompanying the proposal
of a matter falling to be dealt with in it, and

(c) all or any of the collection, sources, verification, processing
and presentation of information accompanying the
proposal.

(6) The documents and information accompanying the proposal
5(including the draft neighbourhood development order) must
comply with those standards.

2 (1) A qualifying body may withdraw a proposal at any time before
the local planning authority make a decision under paragraph 12.

(2) If—

(a) 10a proposal by a qualifying body is made by an organisation
or body designated as a neighbourhood forum, and

(b) the designation is withdrawn at any time before the
proposal is submitted for independent examination under
paragraph 7,

15the proposal is to be treated as withdrawn by the qualifying body
at that time.

(3) If the withdrawal of the designation occurs after the proposal is
submitted for independent examination under that paragraph, the
withdrawal is not to affect the validity of the proposal.

20Advice and assistance in connection with proposals

3 (1) A local planning authority must give such advice or assistance to
qualifying bodies as, in all the circumstances, they consider
appropriate for the purpose of, or in connection with, facilitating
the making of proposals for neighbourhood development orders
25in relation to neighbourhood areas within their area.

(2) Nothing in this paragraph is to be read as requiring the giving of
financial assistance.

Requirements to be complied with before proposals made or considered

4 (1) Regulations may make provision as to requirements that must be
30complied with before proposals for a neighbourhood
development order may be submitted to a local planning
authority or fall to be considered by a local planning authority.

(2) The regulations may in particular make provision—

(a) as to the giving of notice and publicity,

(b) 35as to the information and documents that are to be made
available to the public,

(c) as to the making of reasonable charges for anything
provided as a result of the regulations,

(d) as to consultation with and participation by the public,

(e) 40as to the making and consideration of representations
(including the time by which they must be made),

(f) requiring prescribed steps to be taken before a proposal of
a prescribed description falls to be considered by a local
planning authority, and