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England and Wales High Court (Administrative Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> Ensign Group Ltd v The First Secretary of State [2006] EWHC 255 (Admin) (27 January 2006) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2006/255.html Cite as: [2006] EWHC 255 (Admin) |
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QUEEN'S BENCH DIVISION
THE ADMINISTRATIVE COURT
Strand London WC2 |
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B e f o r e :
____________________
ENSIGN GROUP LIMITED | (CLAIMANT) | |
-v- | ||
THE FIRST SECRETARY OF STATE | (DEFENDANT) |
____________________
Smith Bernal Wordwave Limited
190 Fleet Street London EC4A 2AG
Tel No: 020 7404 1400 Fax No: 020 7831 8838
(Official Shorthand Writers to the Court)
MR P. BROWN (instructed by the Treasury Solicitor) appeared on behalf of the DEFENDANT
____________________
Crown Copyright ©
The Panel's Report
"However, no matter how great the eventual yield from this source [previously developed urban land] it is evident that there will have to be a significant amount of green field development to 2021 to make it possible to achieve our recommended slightly enhanced total of 31,500 completions."
The Panel explained in paragraphs 5.9 and 5.10 why they did not think it appropriate for the Strategy to identify particular growth locations, but said that they were satisfied that the NIA could grow by 2021 to the extent indicated in their recommendations without coming up against overriding strategic constraints. Recommendation 4.5, which dealt with Strategic Policy 1, reflected this reasoning and included a figure of 31,500 dwellings for Northampton, comprising 28,100, which would be provided under "current policies", and 3,400 which would be provided under "SRS additions". When the Panel dealt with Daventry it referred to the District Council's wish to boost the town's role as a sub-regional centre, and to that end to increase the town's rate of growth by increasing the district wide housing provision to 2021 by 1500. The Panel supported this "modest increase", saying in paragraph 5.28:
"This change would have two components. Firstly, the 1,500 dwellings allocated to Daventry in 2001-11 as part of the NIA provision would be removed from Northamptonshire Policy 2 and regarded as related to the non-NIA provision for Daventry. Any Daventry contributions to the NIA resulting from our recommendation R5.1 would be additional to the District figure. Secondly, a further 1,500 dwellings would be brought forward from the decade 2021-31 into the 2011-21 period. We do not consider that this minor rearrangement would have any significant effect on the general quantity and distribution of growth in the SRS."
In recommendation R5.2 the Panel recommended that Northamptonshire Policy 1 should be amended. The table included annual average building rates over the four five year periods between 2001 and 2021, and these totalled 10,800 for Daventry (consistent with the Panel's addition of 1500 to the previous figure of 9,300) and 31,500 for Northampton. There was an asterisk by Northampton, and the corresponding note to the Northamptonshire Policy 1 reads as follows:
"Figures for Northampton include any provision made in urban extensions across local authority boundaries. Such provision would be additional to the figures for the 'receiving authorities' in the above table."
"The Local Development Schemes for Northampton Borough, and the District and Borough Councils of South Northamptonshire, Daventry, and Wellingborough will together identify and provide for the timely preparation of an appropriate set of LDDs making up a Local Development Framework which will put into effect the proposals of the SRS for growth within the Northampton Implementation Area (NIA), making provision for joint working where appropriate.
Together these LDDs will provide for an increase in the number of homes in the NIA in the period to 2021 as follows."
There is then a table which yet again gives a figure of 31,500 dwellings for the NIA.
The defendant's consideration of the panel's report
"Unaccountably, Northamptonshire Policies 1 and 2 of the Proposed Changes suggest a figure of 30,000 dwellings. There is no adequate justification for the decrease of 1,500 dwellings from the level of activity recommended by the Panel.
We believe that inadequate justification/explanation for this position has been set out in the Proposed Changes and we object strongly to the reduction in housing activity directed to the NIA, an outcome that is contrary to the overriding spatial strategy for the Sub-Region."
The publication of the Strategy
The claim
"The underlying assumption behind the decision to remove the 1,500 dwellings from the Northampton NIA allocation was that the 1,500 dwellings were better provided elsewhere in Daventry. There are extensive brownfield development opportunities in Northampton and greenfield areas such as White Hills area will not be needed in the short to medium term. This decision was based heavily on an interpretation of paragraph 5.28 which focused heavily on the fourth sentence of the paragraph and the word 'removed'. The Panel Report was interpreted as stating that the 1,500 dwellings should be removed from the Northampton NIA figures and counted as part of the Daventry non NIA provision. This explains the arithmetic adjustments. The decision was also conscious of the arguments made by Daventry District Council at the Public Examination that this part of their District was not a sustainable choice for development and that Daventry would be a more appropriate location for growth.
The appellants have a different interpretation of the Panel Report and I have attached a copy of their claim for your information. The appellant's view is that the Panel Report makes it clear that the additional allocations recommended for Daventry (as opposed to those within Daventry District but forming part of the Northampton NIA) were to be considered as additional to any contribution in Daventry to the NIA. Therefore the appellant suggests that the 1,500 dwellings should not have been removed from the Northampton NIA allocation.
The appellant's interpretation appears to rely heavily on the fifth sentence in paragraph 5.28. An alternative interpretation of the meaning of the fifth sentence would see this as making a general point that any growth in the Northampton NIA but within the boundaries of Daventry District would not count against the Daventry allocation.
It would be very helpful to have your opinion on the two interpretations and I look forward to your reply, but please note that this may have to be made public for the High Court hearing."
The Panel chairman replied on 22nd July 2005. So far as relevant for present purposes his letter said:
"At Daventry our recommendations proposed an annual rate of 540 dwellings per annum throughout the period 2001-2021 for Daventry District excluding the NIA. The asterisked footnote to Northamptonshire Policy 1 in recommendation R5.2 makes it clear that any part of the Northampton figure provided by way of an urban extension into Daventry District would be additional to the 540 p.a. With hindsight the use of the word 'removed' in the fourth sentence of paragraph of 5.28 might have been taken to imply a reduction in the NIA figure. The intention was to remove the earmarking of a specific portion of the Daventry provision for an extension to Northampton. Had we intended a lower figure for the NIA than 31,500 we would have proposed this in our conclusions and recommendations in paragraphs 5.4 to 5.11."
That letter was exhibited to a witness statement dated 25th October 2005 from Ms Alker, the Director of Planning within the Government Office for the East Midlands (GOEM). In that witness statement she acknowledged that the Department's understanding of the Panel's intention was wrong. In summary, the defendant now accepts that there was no "arithmetical error" in the Panel's recommendation for Northampton. The figure of 31,500 for the NIA was correct and should not have been reduced to 30,000.
The law
"(2) If an examination in public is held the Secretary of State must consider -
(a) the report of the person appointed to hold the examination;
(b) any representations which are not considered by the person appointed to hold the examination.
(3) If after proceeding under subsection (1) or (2) the Secretary of State proposes to make any changes to the draft he must publish -
(a) the changes he proposes to make;
(b) his reasons for doing so.
(4) Any person may make representations on the proposed changes.
(5) The Secretary of State must consider any such representations.
(6) The Secretary of State must then publish -
(a) the revision of the RSS incorporating such changes as he thinks fit;
(b) his reasons for making the changes."
In his skeleton argument Mr Brown submitted that, although it was now accepted that the Secretary of State's understanding of the Panel's report was wrong, there was no error of law because, absent any response from the Panel to the Department's initial request for clarification, the Secretary of State's understanding of the Panel's recommendations was a reasonable one. It was further submitted in the skeleton argument that the reasons given for the changes made by the defendant were adequate.
Discretion
"This Statement is being issued in consequence of the proceedings in Ensign Group Limited v First Secretary of State (CO/2654/2005), in which the Ensign Group Limited seeks an order for the quashing of the Milton Keynes and South Midlands Sub-Regional Strategy ('the Strategy'), pursuant to s.113(3) of the Planning and Compulsory Purchase Act 2004. Although addressed specifically to Ensign and to the planning authorities concerned with the Strategy, this statement is intended as a public statement of the First Secretary of State's position in relation to those proceedings and to the Strategy itself.
In the Consultation Draft of the Strategy, Northamptonshire Policy 2 had made a specific allocation of 1500 dwellings for the Daventry District part of the Northampton Implementation Area (NIA) in the period 2001 to 2011. This figure was reflected in the annual average housing rates set out in Northamptonshire Policy 3. When the First Secretary of State published the Strategy on 17th March this year, he made a number of changes to the housing numbers proposed for Daventry. The key change removed the 1500 dwellings allocated to Daventry as part of the NIA from the provision for that Implementation Area.
Although there was initially a relationship between the allocation of Ensign's site at Buckton Fields/Whitehills in the Daventry Local Plan and the provision within the Consultation Draft of the Strategy for 1500 of the dwellings proposed within the NIA to be located within Daventry District, this direct relationship was not carried through into the published Strategy. The First Secretary of State accepted the Panel's conclusion at paragraph 5.10 of their Report that it would not be appropriate to approve or disapprove particular sites, and that
'In preparing LDDs all the available options for expansion of the urban area will need to be considered positively and open-mindedly without reference to the arbitrary physical limits of Northampton's administrative area which will have little relevance to important planning factors such as topography, landscape and transport'.
Consequently, the decision by the First Secretary of State to remove the 1500 dwellings which was specifically allocated to Daventry as part of the overall NIA figure was not based on any assumptions about the development of the site at Buckton Fields/Whitehills.
This decision was based heavily on paragraph 5.28 of the Panel Report following the Public Examination into the draft Strategy. In particular, paragraph 5.28 of the Report suggested that the 1500 houses should be 'removed from Northamptonshire Policy 2 and regarded as related to the non-NIA provision for Daventry'. The Panel report was interpreted by the First Secretary of State as meaning that the 1500 dwellings should be removed from the NIA altogether. It was recognised that this interpretation was inconsistent with the figures recommended by the Panel for inclusion in the NIA. However, it was concluded at the time that this was an arithmetical error on the part of the Panel, which the proposed changes sought to correct.
These amendments to the Strategy were first published as Proposed Changes in October 2004. The Panel was consulted upon them, but did not comment. The First Secretary of State therefore concluded that his proposed changes were in accordance with the Panel's intentions.
Following publication of the Strategy, an application was made by Ensign Group Ltd for an order quashing the Strategy, or those parts of it which were affected by the changes outlined above. In essence, Ensign contended that the First Secretary of State had fundamentally misunderstood the Panel Report and, in consequence, had erroneously and unlawfully removed the 1500 dwellings from the NIA. On considering Ensign's application, the First Secretary of State contacted the Panel to seek clarification of its true intentions. By letter dated 22 July 2005 the Panel Chairman indicated that Ensign was correct, and that the interpretation which had been adopted by the First Secretary of State when publishing the Strategy did not in fact accord with the Panel's intentions.
The First Secretary of State therefore now accepts that the Panel's intention was as follows:
* At page 10 of the Strategy, that Figure 1 (the Spatial Diagram) should read 31,500 dwellings for Northampton.
* At page 12, within Strategic Policy 1: the Spatial Framework, that the Northampton figure should read 31,500 and the MKSM Total growth should read 171,300.
* At page 35, within Northamptonshire Policy 1: The Spatial Framework, that the figures for Northampton should read as follows: 1200 (2001-2006); 1600 (2006-2011) and total 31,500, and that the totals at the bottom should therefore read 4295 for 2001-2006, 5075 for 2006-2011 and total 101,000 (2001-2021)
* At page 36, within Northamptonshire Policy 2: Northampton Implementation Area, the figures should read as follows: 6000 (Total 2001-2006); 31,500 (Total 2001-2021); 1200 (2001-2006 Average annual rate); 1600 (2006-2011 Annual Average Rate) and 1575 (Annual Average Rate 2001-2021).
The First Secretary of State recognises that this statement can neither form part of the development plan, nor can it formally amend the Strategy, and that the Strategy remains the development plan for the purposes of the s.38 Planning and Compulsory Purchase Act 2004. However, it has at all times been the First Secretary of State's position that the Panel's recommendations in relation to the NIA represent the most appropriate basis for the preparation of local development documents by the relevant planning authorities. It was not the First Secretary of State's intention to change the housing numbers in the NIA in a way which did not accord with the Panel's intention.
This statement represents the most up-to-date expression of the First Secretary of State's intent in relation to housing provision in Northampton and Daventry, and the First Secretary of State intends that it should be regarded as a material consideration to which appropriate weight should be attached in the interpretation and application of the development plan. It is also advice contained in guidance for the purposes of section 19(2) of the Planning and Compulsory Purchase Act 2004 to which all local planning authorities should have regard when preparing their local development documents."
The statement was in draft because the defendant was prepared to consider suggested amendments. Mr Brown submitted that the statement would sufficiently protect the claimant's position and overcome any possible prejudice as a result of not quashing the policies in the Strategy, and would also serve the necessary purpose of setting the record straight in some form of public document.
Conclusions
"(1) Local development documents must be prepared in accordance with the local development scheme.
(2) In preparing a local development document the local planning authority must have regard to -
(a) national policies and advice contained in guidance issued by the Secretary of State;
(b) the RSS for the region in which the area of the authority is situated, if the area is outside Greater London."
Pausing there, this would enable the defendant to issue the statement as guidance under paragraph (a) in subsection (2), and then the relative weight to be accorded to such guidance and ,(under paragraph (b)), to those parts of the Strategy which would not have been quashed, would be a matter for the local planning authorities responsible for preparing the LDDs for the NIA. However, section 19 does not stand alone. Section 24 of the Act deals with conformity between regional strategy and local development documents. So far as material section 24 provides:
"(1) The local development documents must be in general conformity with -
(a) the RSS (if the area of the local planning authority is in a region other than London).
(2) A local planning authority whose area is in a region other than London -
(a) must request the opinion in writing of the RPB [Regional Planning Board] as to the general conformity of the development plan document with the RSS.
(3) Not later than the end of the period prescribed for the purposes of this section the RPB must send its opinion to -
(a) the Secretary of State;
(b) the local planning authority.
(6) If in the opinion of the RPB a document is not in general conformity with the RSS the RPB must be taken to have made representations seeking a change to the document."
Moreover, section 20(1) requires local planning authorities to "submit every development plan document to the Secretary of State for independent examination." Subsection (5) explains the purpose of such an examination:
"The purpose of an independent examination is to determine in respect of the development plan document -
(a) whether it satisfies the requirements of sections 10 and 24(1);
(b) whether it is sound."
Decision
(i) Page 10, the figure of 30,000 for Northampton.
(ii) Page 12, Strategic Policy 1, the figure of 30,000 for Northampton and the total figure of 169,800.
(iii) Page 35, Northamptonshire Policy 1, all figures against Northampton, and the total figures. The asterisk against Northampton is not deleted.
(iv) Page 36, Northamptonshire Policy 2, second paragraph beginning 'Together these LDDs' to the end of the table.