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Neighbourhood Planning Bill is an opportunity to recognise role of SMEs

Rico Wojtulewicz, Head of Housing and Planning Policy | National Federation of Builders

3 min read Partner content

Rico Wojtulewicz of the House Builders Association calls for the Neighbourhood Planning Bill to recognise the critical role of SMEs in ensuring the delivery of the homes we need.  


Debate on housing policy can sometimes turn into an ideological confrontation, but the second reading of the Neighbourhood Planning Bill on 10 October defied such expectations. Most MPs recognised that we need to remove the barriers to building more homes. The House Builders Association (HBA) can think of various amendments to the Bill such as public negotiations on available sites by interested groups to enhance neighbourhood planning opportunities and relieve local planning authorities from underfunding pressures.

Sajid Javid MP, secretary of state for communities and local government, made it clear that the Bill was a stepping stone. Gavin Barwell MP, minister of state for housing and planning, similarly recognised that there is more that can be done. Communities and developers alike will welcome language that indicates the Government understands that their latest initiative is not a silver bullet, but part of a mix of measures that together will alleviate the housing crisis.

Teresa Pearce MP, shadow housing minister, presented a solid argument illustrating how and where precisely the Neighbourhood Planning Bill could be improved. Ms Pearce even committed to exploring statistics that would further unravel pre-commencement condition delays. Along with Dr Roberta Blackman-Woods MP, shadow minister for local government, Pearce listed the views of professional bodies in the construction industry. Mentioning the HBA’s scepticism towards the proposed policies, Pearce argued that the Bill in its current form does nothing to build communities and urged the Government to match their rhetoric on solving the housing crisis with substance.

Such a blunt conversation on the challenges of housing and planning was long overdue, but the real star of the debate was Kevin Hollinrake, Conservative MP for Thirsk and Malton. Mr Hollinrake accurately portrayed the current situation with housing supply by highlighting that small sites were not even mentioned in the discussion. He also explained that small and medium-sized enterprises (SMEs) play an important role in their communities because they employ local people, hire local apprentices, and add value to the local economy.

SMEs also build more quickly and within existing communities and infrastructure. They do not land bank and build high-quality homes following the latest regulations and standards.

The All Party Parliamentary Group (APPG) for Excellence in the Built Environment is right to scrutinise the quality of housing being built across the country. However, if the APPG analysed the whole industry more attentively, it would discover that not all developers are equal. For instance, HBA members have been building high-quality houses that people feel proud to call home for a very simple reason: they know that their reputation with consumers is their lifeblood. Their ability to obtain work from clients makes HBA members – and SME house builders in general – more attuned to the needs of their local customer base and consequently their communities.

The second reading of the Bill lacked a discussion on appropriate housing delivery, as well as policy proposals aimed at supporting local and regional house builders. The HBA hopes that the financial and regulatory barriers that SMEs face can be removed. This will speed up the planning process to deliver homes across a wide range of tenures.

Given the productive discussion at second reading, the HBA remains optimistic about the opportunities to improve the policies in the Neighbourhood Planning Bill and enact legislation that will meaningfully tackle the housing crisis.

The HBA will consult its members on evidence of planning inconsistencies, best practice and possible solutions. To quote Kevin Hollinrake MP, “SMEs must be critical to the success of delivery of the houses we need in the UK”. The House agrees, the industry agrees, the communities agree. The Neighbourhood Planning Bill must now reflect that.

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Read the most recent article written by Rico Wojtulewicz, Head of Housing and Planning Policy - Rt Hon Rachel Reeves Mais lecture hits the nail on the head for construction.

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