Further supplementary memorandum from
CLG(DAR 09-12)
COMMUNITIES AND
LOCAL GOVERNMENT
SELECT COMMITTEE
INQUIRY INTO
THE DEPARTMENTAL
ANNUAL REPORT—OFFICIALS
HEARING FOLLOW-UP
Q1: What is the annual average figure for
staff turnover across the Department and by Grade?
A1: An answer to this question will follow.
Q2: Staff Retention. What is the full data
set on the 12 October Written PQ 4694 regarding the average amount
of time a member of the Department is retained?
A2: As noted at the officials' oral evidence
session on 19 October 2009, the Department is in the process of
revising the response to PQ 4694 on staff retention. Once Justine
Greening MP, who originally asked this question, has been updated,
we will provide the final response to the Committee in parallel
to the revised answer being laid in the House. We expect to be
able to do that next week.
The full data set, which supports our response
on PQ 4694, will also be supplied to the Committee.
Q3: By what date will the Department be able
to report against all of its DSO indicators?
A3: Under current plans for collecting and
publishing data, we expect to report post-baseline data for 36
out of 50 of the Department's indicators in the forthcoming Autumn
Performance Report, and on 47 out of 50 by the time of the 2010
Departmental Annual Report.
There is one indicator (DSO 3.2: previously-developed
land that has been vacant or derelict for more than five years)
for which the baseline is not yet available. We hope to have a
baseline by the 2010 Annual Report, and the first post-baseline
figure by the 2010 Autumn Performance Report.
Post-baseline figures for the two remaining
indicators (DSO 3.4: overall satisfaction with the area in deprived
areas and DSO 3.9 iv: perceptions of anti-social behaviour in
deprived areas) are due to be available in time for the 2011 Departmental
Annual Report.
Q4: Why has the Department decided not to
report a final position for all of our SR04 indicators?
A4: There were 42 indicators associated
with the Department's SR04 PSA targets. We have already reported
a final position on 30 of them. Of the remaining indicators seven
others have been subsumed into CSR07 indicators. The Department
for Business Innovation and Skills will report on the two within
SR04 PSA 2 on regional economic performance, which have been subsumed
into CSR07 PSA 7 and which it leads. The three within SR04 PSA
3 on Fire have been subsumed into DSO6, with a final assessment
available shortly after 2010; and the two within SR04 PSA 7 on
Housing have been subsumed into DSO2, with a final assessment
also due to be available shortly after 2010.
The five remaining SR04 indicators do not, as
of yet, have final figures eg town centre regeneration in SR04
PSA 6. Future reporting in Annual Reports and Autumn Performance
Reports will include updated assessments on these indicators as
new data becomes available and a final report once final data
becomes available. This approach is in line with HM Treasury guidance
on Departmental Reports and Autumn Performance Reports.
Q5: How much underspend does the Department
anticipate for 2008-09. What figure within this is being reserved
by HM Treasury for potential Olympics funding, if required in
future spending rounds?
A5: The £1.5 billion underspend figure
is the total for both Main and Local Government Departmental Limits
(DEL), which represents End of Year Flexibility accumulated (and
not drawn down) from DEL underspending for all years up to and
including 2008-09. Within the capital underspend of £236
million (Main DEL) in 2008-09, £214 million relates to contingency
for the Olympics, which was not spent in that year, but will be
made available if/when required.
Q6: The Committee have requested clarification
on how the new provision to extend planning permission works eg
do builders apply for a planning extension and how is approval
granted (ie does the LA approve/decline?)
A6: On 1 October 2009, new powers were introduced
to help make planning permissions more flexible. This follows
consultation on Greater Flexibility for Planning Permissions
between 18 June and 13 August 2009. Guidance on the operation
of these new powers will be issued shortly.
Where an extant permission is in danger of lapsing,
developers can now apply to the local planning authority for a
new permission with an extended time limit for implementation.
The application process is simpler than an application for a completely
new permission, with reduced information requirements, and as
soon as the fees regulations can be changed (later this year),
a reduced fee will apply. Local planning authorities will consider
whether the proposed scheme is still acceptable (for example in
the light of changed policies or changed circumstances around
the site) and will make the decision to grant the application
or refuse it, just as they would for a new application.
The new time limit runs from the grant of the
new permission. We would expect in most cases that the statutory
default of three years would apply, although local planning authorities
have the discretion to apply a longer or shorter time limit, depending
on the circumstances of the case. The new power will apply to
all planning permissions which were extant on 1 October 2009.
Only one extension will be possible to each permission.
Q7: The Committee asked why the move from
Unitary Development Plans to Local Development Frameworks (LDFs)
was needed? Also, what are the latest figures on LDFs.
A7: At the time of drafting the Departmental
Annual Report, 54 Development Plan Documents (DPDs) had been reported
as adopted. The latest figure is 66, with a further nine awaiting
adoption, 17 awaiting the outcome of the "Examination in
Public" process and a further 20 published. If all of these
are found sound they will increase the proportion of adopted necessary
plans to 24% of the revised target number of 461 (see below).
In addition, the latest figures from Local Planning
Authorities and Government Offices indicate that a further 299
of necessary DPDs are expected to be published by March 2011.
When the target was finalised in March 2008,
the total number of DPDs which were due to be produced was 534.
However, this number has been reduced for a number of reasons,
including the development of joint core strategies between some
local authorities and the impact of the local government reorganisation
changes that took effect in April 2009. The revised target currently
stands at 461 DPDs. The Department is discussing the formal adoption
of a revised target number with HM Treasury and the Prime Ministers
Delivery Unit.
Over the last three years there has been some
progress, and although slippage has continued, there is evidence
that many Local Planning Authorities are growing in understanding
of the system. Fewer plans are being withdrawn following submission
than previously. Neighbouring areas, such as Crawley and Horsham,
which have adopted Core Strategies, are finding it beneficial
to have these in place for joint working for other necessary DPDs
and developments that straddle their areas.
Emerging evidence from some areas such as Tower
Hamlets, which withdrew early versions of some of its DPDs, suggest
that lessons have been learned resulting in more corporate support
and that DPD preparation will speed up in future.
The Government acknowledges that the 2004 system
was initially over-engineered and reforms brought in during 2008
have simplified the process. Skills in adapting to the new system
were also over estimated but are now improving considerably through
learning packages for local authorities provided by the Planning
Advisory Service, on-going support by Government Offices and pre-publication
visits by Planning Inspectors. In September, the Planning Inspectorate
published a second document outlining lessons that can be learned
from over 100 Examinations in Public (EiPs) since 2007. Confidence
appears to be growing slowly following the early unsound outcomes
of early EiPs.
The current system is radically different from
the previous one. It is spatial rather than merely regulatory.
It is integrated much more closely with other key Place-making
processes such as Sustainable Community Strategies and Local Area
Agreements, and considers economic, social and environmental factors.
It is also provides the framework for future local and sub-regional
infrastructure provision.
Q8: Names of those local authorities the Department
has approached on the Mortgage Rescue Scheme (MRS).
A8: This information has been provided to
the Communities and Local Government Select Committee on a private
and confidential basis.
Q9: The Committee requested the latest data
on the number of new homes that building has begun on which are
funded from the Housing Pledge? What monitoring and delivery systems
has the Department put in place/will put in place to ensure these
new homes are delivered?
A9: There are four programmes within the Housing
Pledge: Kickstart, Local Authority New Build, an extension to
the Affordable Housing Programme, and the Public Sector Land Initiative.
In Budget 2009, the Government also announced a range of environmental
programmes: Low Carbon Infrastructure, and the Social Housing
Energy Saving Programme (SHESP).
The Kickstart programme is targeted at currently
stalled sites, to support construction of high quality mixed tenure
housing developments. To date we have announced 37 projects that
have passed due diligence, with a total investment of £60
million. These sites will deliver over 2,700 homes and we expect
the first starts on site within weeks.
The LA new build programme provides funding
for local authorities to commence work on new council housing
over the next two years on land they already own that can be best
developed by them. Round one of the Local Authority New Build
Programme announced that 49 local authorities had been successful
in their bids. This will allow councils to deliver over 2,000
new homes, building on their own land. Homes will be for social
rent, built to high environmental standards. The total investment
to date is £141 million which local authorities will match
in the main through prudential borrowing. We expect the first
starts on site before Christmas, with 850 starts scheduled by
the end of 2009-10.
The additional funds identified within the Housing
Pledge for the Affordable Housing Programme (AHP) have been added
to the overall budget for this programme. Bids for the AHP programme
are made on a continuous basis to the HCA. The HCA reports to
the Housing Stimulus Board on a monthly basis. The latest figures
for the AHP Housing Pledge funding as at 23 October are that allocations
of £450 million have been made, which will deliver nearly
6,000 homes for rent and LCHO over the next 3 years. Results from
the main Affordable Housing Programme show strong delivery, with
13,000 starts and 19,000 completions by the end of September.
The aim of the PLI is to build 1,250 new homes
over the next three years. It is intended that 500 homes will
be affordable, through rent and LCHO. Work on this programme is
at an early stage. The aim is by the end of November to have an
agreed list of sites and delivery partners to enable the initiative
to be taken forward with mini competitions to allocate sites to
Delivery Partner Panel members in early 2010. We would therefore
expect to see the first starts on site at the same time with 50
units completed by the end of 2010-11.
The Community Energy Saving Programme will help
social landlords insulate hard to treat cavity walls that would
not otherwise be filled under the Decent Homes programme. From
the bidding round 45 individual projects are now on the programme,
many of which represent consortia of social landlords. Current
projections suggest that £45 million will be invested in
this programme before April 2010. The successful bids will insulate
over 108,000 homes by April 2011. We estimate this will enable
2,500 jobs to be supported or created. The programme will save
up to 800kg CO2 per household each year and help improve the Standard
Assessment Procedure rating for homes. It will also help families
out of fuel poverty by helping each household to save £120
per year on bills. The first payments of this grant will be made
this month.
The Low Carbon infrastructure programme will
fund low-carbon community heating schemes in the Growth Points
and Growth Areas, allowing at least 10 communities to benefit
from cleaner, locally produced energy and support employment.
This will deliver savings of 20,000 tCO2. We announced details
of the successful seven projects for the first tranche of funding
totalling £11.85 million in July. A further announcement
was made in August under tranche 2 which saw the remaining £8.8
million allocated to a further seven projects. The first spend
is expected on these projects in December 2009.
All elements of the Housing Pledge and Budget
announcements are monitored through the Housing Stimulus Programme
Board. This Board is chaired by Sir Bob Kerslake, Chief Executive
of Homes and Community Agency, and has representatives from the
Department, HM Treasury, and the Prime Ministers Delivery Unit.
The Board meets fortnightly and provides close scrutiny of all
elements of the Pledge, including progress of delivery.
Q10: What is the Department's evaluation of
HIPs, and their shelf life given the length of time a property
may remain on the market. The Department's comments on the statement
made by the then Housing Minister, Mrs Beckett MP, on HIP evaluation.
A10: It has always been the intention that
there would be a full evaluation of HIPs, once the policy has
bedded-in. The removal of transitional measures in April finalised
the implementation of HIPs and provided industry and consumers
with certainty and clarity about their operation. As a result,
the Department is developing its proposals for an evaluation study
to take place in 2010 as previously planned.
However, following the roll out of HIPs the
Department has continued to monitor their operation, for example
seeking monthly intelligence on the average preparation time and
cost of HIPS from large HIP providers and estate agents. We have
also responded to feedback from consumers by simplifying and improving
the content of the HIP, for example the introduction of the new
property information questionnaire.
There is also evidence from the home buying
and selling industry that HIPs are having a positive impact. A
survey of over 37,000 transactions by Connells (Estate Agents)
has showed that where a HIP is available, exchanges are on average
seven days quicker.
In addition, a recent independent survey of
over 2,000 consumers carried out by Ipsos MORI for the Association
of Home Information Pack Providers (AHIPP) shows that the majority
of consumers are satisfied with the delivery of their HIP, are
not deterred from marketing their homes and that the information
in the new Property Information Questionnaire is useful to buyers.
On the question of the shelf life of a HIP,
it is important to note that there is no requirement for a seller
to renew their HIP, or any part of it, as long as the property
remains on the market. However, although there is no legal requirement
for sellers to update searches in the HIP, lenders take the view
that this information has a useful shelf life of six months. Where
searches do go out of date, many search providers now offer a
service under which searches can be refreshed at a low cost: a
market innovation that has developed in response to HIPs. There
was also an insurance policy available that was used to insure
against the risks associated with an out of date search.
It is considered that this provides the context
and clarification for the comment made by Mrs Beckett MP at the
Annual Report hearing last year, when in answer to a question
about HIPs going out of date in a slow market, the Minister commented
that "this was an issue that we are looking into with the
relevant authorities".
Q11: HIP and EPC Compliance. The Committee
require data on HIP compliance, the number of properties that
have an EPC and the number of home conditions surveys.
A11: The Housing Act (2004) gives local
Weights and Measures authorities (ie Trading Standards Offices)
the primary responsibility for enforcing the HIP duties. It is
a matter for individual enforcement authorities to decide their
enforcement strategy taking into account local priorities. However,
the Department has produced tailored guidance to support TSOs
carrying out their duties more effectively.
Following the changes made on 6 April there
should be a HIP (including an EPC) available when marketing begins,
making the job of enforcement easier. We have also ensured that
TSOs now have access to the EPC database, providing a tool to
make it easier to check whether a property on the market has had
an EPC lodged against it.
1,787 Home Condition Reports have been lodged
on the HCR Register to date, of which 1,487 were subsidised as
part of the Area Trials.
Q12: Update on the role of Treasury Management
Advisers (TMAs), as set out in the Committee's report on Local
Authority Investments, with a focus on the TMAs functions and
interaction with the FSA.
A12: The Financial Services Authority (FSA)
is an independent non-governmental body. As CLG is not responsible
for the FSA we cannot comment on its role in relation to the regulation
of treasury management advisers.
As set out in the Government's Memorandum response
to the Committee on the Local Authority Investments report, the
Department will consult on draft revisions to the statutory investments
guidance.
We are currently considering the content of
the consultation and expect to be in a position to issue this
in the near future.
Q13: The Committee would like to see the provisions
of the EADS contract relating to financial penalties for EADS
failure to deliver on time?
A13: Due to the commercial sensitivity of
the EADS contract this information has been supplied to the Communities
and Local Government Select Committee on a private and confidential
basis.
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