London council leaders call for ‘use it or lose it’ powers to force developers to build

Local authorities should be able to charge a levy or revoke planning permission for developers who fail to build out approved plans, according to central London council leaders. 

Central London Forward, a cross-party group of leaders of boroughs in the centre of the capital, has published a new report setting out a series of practical changes to the planning system which it claims could help local authorities deliver more homes. 

As well as these levy-charging and ‘use it or lose it’ powers, it also suggested local authorities should be given greater powers for land assembly, including new borrowing powers and the power to undertake compulsory purchases without having to pay ‘hope value’ and without the permission of the secretary of state. 

Finally, it noted that public investment in planning had fallen by £230m in real terms since Labour was last in government and urged the government to restore funding to 2010 levels. 

Jules Pipe, deputy mayor of London, said: “The Mayor has made the delivery of the homes Londoners need a priority for his third term. Inevitably the planning system will play an important role in unlocking delivery.  

“The report’s focus on planning reforms is welcome, with the resourcing of the planning system and kickstarting delivery of the pipeline of approvals being the key priorities if we are to accelerate housebuilding in London.”

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While the report emphasised the need for planning reform, which has been a central preoccupation of the new national government, it said that this alone would not be sufficient to tackle the housing crisis. 

“While planning reform is necessary, it alone will not be sufficient. We also need to see a renaissance of council housebuilding if we are to deliver on the government’s ambitious target, and provide the homes we so desperately need,” said CKieron Williams, chair of Central London Forward and leader of Southwark Council.