planning

Oxford of a million minds: a bit of fun

Jock — Fri, 15 Aug 2008 23:47:53 +0100

Yesterday in my piece about the Policy Exchange think tank's suggestion that Oxford and Cambridge ought to be allowed to expand to as many as a million homes I mentioned the work "Car Free Cities" by J H Crawford which I came across a decade ago when looking into Oxford's last Local Plan. In it he postulates a city of a million people with a topology and transport system that means that any two addresses anywhere in the city would be no more than 35 minutes apart by foot and rapid transit system.

The city is made up of many districts of about 12,000 population like strings of beads along one of three overlapping rapid transport loops. Every home is less than five minutes walk from open countryside. And whilst the densities within the districts are amongst the highest on earth (similar to Seoul, for example, although nothing is more than three stories in the reference designs) only 20% of the total 100 sq mile (10 by 10) area is developed at all, leaving all the areas between the beads and strings as open countryside or managed parkland or whatever. Overall then the density is not a lot greater than Oxford's current density and less than the average of Greater London as a whole.

So, for a bit of fun, I superimposed Crawford's one million population city topology onto the ten by ten mile square centered on the current centre of Oxford. Now sure, a million population is only probably about a third of the million households the Policy Exchange report was ultimately suggesting, but if anyone says to you that it would simply be impossible to imagine a million people in the area between Wheatley and Eynsham, Littlemore and Kidlington, you can say you have seen how, and with no traffic and only 20% of the land developed to boot! It would currently take me over an hour to get from the end of one of these loops to about a third of the way out the adjacent one, incidentally.

Now nobody is suggesting that we do this, least of all me. I'm just demonstrating that it would be possible, indeed whilst making more of the green belt actually because all the space would be accessible in minutes rather than in half an hour in the car, it would reach right into everyone's neighbourhood - with open country no more than 400m from every front door. Fitting such principles into existing cities is of course much more difficult than an academic sitting at a drawing board with a blank sheet of paper. They need not be loops for example but twelve strings with termini at the end of each. It would increase average journey times but not the overall maximum of 35 minutes door to door and could be fitted in along existing radial roads as a series of villages.

Incidentally, the picture on the right here shows some of the housing in the ward with the highest density in England, at least that I can find - a "middle level super output area" either side of the Cromwell Rd in Kensington & Chelsea. I notice from Net House Prices that there have been 267 £1m plus residential property transactions in the last eight years in this post code area. This is getting pretty close to the densities that would be required in a city such as that in Crawford's book. It's hardly slum clearance stuff is it! read more »

"Cities Unlimited": who would be an economics boffin?

Jock — Thu, 14 Aug 2008 13:00:20 +0100

When I saw the first press mention of the "Cities Unlimited: making urban regeneration work" report from the Policy Exchange think tank in the Oxford Mail yesterday screaming that "Oxford should get a million new homes" and I noticed prominent Lib Dem economics boffin Tim Leunig was involved I'm afraid I at first reacted with my heart, yelling "Not In My Back Yard, you heartless economist you" before engaging my head.

You see, all too often Tim has come out with some great ideas that have been instantly presented as the works of the devil himself. There were "community land auctions" which, for those who didn't think about it too much, was presented as the state confiscating land from private owners at a fraction of its value. Then more recently his idea for allowing people to sell the social housing home they rent in order to buy another one of their choice elsewhere which would in turn become a social housing home. Even I had to think about that one for a while before I thought it was anything other than a great council house give-away scam. Such is the fate, almost inevitably I suspect, of people who write about "agglomeration economics" and "gross value added" measures of local economic activity.

And so it is also with this report. It is, despite the economic jargon at times, quite an easy read, with what I find to be compelling arguments. It is counter-intuitive for sure, for anyone who has worried about what to do about the "North South divide" and traditional regional policy which has been focussed on using regeneration money to try and repopulate declining towns, to keep people where they are and bring the economic prosperity to them. It has enough controversial suggestions for any mischievous media outlet or politician in denial to pick out the one that seems to say most about their area and have a go at it.

And boy, have they had a field day with it. If you're vaguely northern, or Welsh, you are to be outraged that the report says regeneration has failed, and not only failed but unlikely ever to recover your town's fortunes. If you're in Oxford or Cambridge you've got a million new homes to get outraged about. If you're anti-Tory you will like the portrayals of it as demanding no more money should go to Labour heartlands in the north. It is, in some senses, a perfect storm - there's something for absolutely everyone to criticize about it. But I would suggest they read it first as it is apparent that many who have commented on it, from John Prescott down, have not.

Yes, it does say that the regeneration money lavished on declining cities and towns (and over the past four decades not just Labour's tenure) has been wasted. Of course, the Labour ministers and MPs who championed this money more recently going into their heartlands are outraged. But the report, or rather its predecessor data collection exercise, "Cities Limited", shows pretty conclusively that this failure is real - that, whilst they may be declining slightly less slowly in comparison with more prosperous areas than before the money was spent, they are certainly not catching up, or keeping up. But it does not, as Adam Bienkov writes at Liberal Conspiracy, call for that money to end, for the rest of the country to just "fuck off".

Actually quite the opposite. Anticipating an incoming Tory government will naturally be likely to have fewer "champions" of these northern former industrial towns, it suggests instead of these grand technocratically led regeneration projects controlled from the [London] centre, government should give pretty well the same total amount of money to the local authorities based on need but for them to spend on what they see fit for improving the quality of life in their own towns and cities. This, it says (or rather another predecessor report called "Cities for Success" said) will lead to stronger, better scrutinized and more responsive local government producing "quality of life" projects that people actually want, rather than what some central planner looking at house prices from Whitehall thinks is good for them.

So it's a document about devolution and decentralization of regeneration. About freeing those local authorities in declining areas to choose how they respond to that depopulation rather than how the centre says they should. It is not that spending money on a place always fails, it is that the over-riding concern of regeneration money and regional policy to date has been that these places need to be repopulated by that money, people actively encouraged not to up sticks and leave, despite the obvious fact that they stand to have greater opportunity and more possibilities for increasing their wealth by moving, when in fact the money might be best spent making the quality of life for those who remain far higher.

In fact, it says that this current regeneration policy has even worse effects. Because regeneration areas are still, despite the billions, growing at a slower rate than the successful areas, in insisting that they should be repopulated come what may, regeneration policy is "condemning" the people it persuades to remain or return there to a slow lane of growth. And that because the exodus is led by the more mobile, enterprising, adventurous and usually better skilled parts of the population, it means that what is being left behind is denuded of its greatest assets - the skilled people that might make it attractive for new businesses to set up there.

And of course, the other main controversy is about what those skilled people wanting to better themselves should do. Clearly, London is a huge draw - I always think if it personally as a black hole with government and the City at the singularity and threatening to swallow anything that falls into its event horizon which has been expanding for centuries. Others of course say they like London. So why would they want to prevent others having the same standard of living and opportunities as they do.

Adding an extra million homes around London, says the report, would be the equivalent of adding an extra two miles to the outskirts. Traveling along the M40 at Hillingdon at 70mph for example this, he says, would mean that it would take someone an extra two minutes to reach the countryside. Are we [in London that is] so selfish that we would deny that opportunity to others from "up north" for the sake of it taking an extra two minutes to get to open countryside? Conveniently, the response from the Lib Dem PPC for Hastings yesterday, reveals the answer:

Nick Perry, Lib Dem parliamentary campaigner for Hastings & Rye said, “I am a Northern lad hailing from St Helens, and our move to Hastings last year was a dream come true, however the calls from this Tory think tank are nothing short of bizarre."

So that's it is it. What's good for Nick Perry, indeed a "dream come true", is too bizarre to contemplate for everyone else who may want to better themselves. Ironically, had the Hastings Lib Dems read the report first they'd notice that Hastings is actually one of the exceptions in the South East. That it suffers by being connected only to the periphery of London's orbit and so would not be an ideal place for adding lots of people unless there was significant increased connectivity.

So, perhaps I can get more worked up about the section that talks about a million homes for Oxford and Cambridge, if I can't get excited about the thought of London expanding by two miles in each direction. Well actually, whilst personally I am in Oxford precisely because it is small, and probably would be one of those who would leave if it became terribly much bigger, that's because I can. My IT skills can be put to use anywhere. I could move to Liverpool and get similar pay in a similar academic institution to what I'm in here. But for others it's harder. Oxford and Cambridge, outside of London, are the only two UK academic institutions that get more in research money than they do for teaching students. On the global scale they are our only two really big knowledge generators. Leunig's position seems to be that if they are to remain it that position globally, and they'd damned well better as there is precious little else our economy will thrive on if not knowledge generation in the new global village, they too have got to capitalise on "agglomeration economics", to attract a real thriving community from around the world and the UK that services the expansion of the best brains in Britain in their subjects.

Of course here in Oxford, we can't even agree on whether it is right to have four thousand extra new homes, let alone a million. Our heads are simply not in the right place to hear the logic of what Leunig is telling us. But even if it does become someone's policy, should we be so scared of it? On the one hand, yes, clearly haphazard development of a million homes in a rural county is not on. But if we're looking at a new world order, with population migrations the like of which Britain has not seen since the Industrial Revolution urbanized Britain's population and gave rise largely to those northern towns, then we ought to be looking at new urban forms as well.

Here's a model from a book called "Car Free Cities" by a chap called J H Crawford I came across a decade or so ago in my reading up for the last Oxford Local Plan, that shows how a city of a million population can be fitted into a ten by ten mile area with development on only 20% of the square, where, thanks to rapid transit systems every home is no more than thirty five minutes traveling distance from any other location in the city, every home is less than five minutes walk from open countryside and which could be developed in phases linked into or threading between existing communities.

So, the worst I can say about the report is that "the truth hurts". The truth is that current regeneration projects have and continue to fail to bring less well off former industrial areas up to the standard and the ability to match in future seen in the more prosperous south east. It is cruel and heartless in the light of this to prevent people migrating from those areas to where their skills will be better rewarded and it would be but a small imposition on London in particular to host another million or so homes. We risk our place in the global future if we fail to recognise this reality and grasp the opportunities it presents to make more people better off than regeneration ever can. At the same time we need to make local authorities and local people in declining areas responsible for their own projects to make their quality of life better, whether in decline or otherwise. We need to empower them and finance them, and watch them compete with each other for the best ideas.

At the same time we need to free up from planning constraints land in the south east to accommodate inward migrants. We need to ensure also in the process that space is made for semi-skilled and unskilled also to come from those declining areas so that the balance of people moving out of them is not skewed too heavily towards the skilled sectors.

And all the signals that make this apparent are related to land value. That London is not yet at its optimal size is proven by the fact that people still pay more for their home than the capital cost of the home - ie that land still has some residual value that people are prepared to take a gamble on rewarding them by more than it has cost them to move. That some of the "Pathfinder" areas should not have housing replaced is indicated by the fact that housing costs less than it costs to build. We'd be better buying spare houses and allowing families in the neighbouring houses to expand into hem than knocking them down and replacing them, hoping against hope that they will fill up with bright young things who do not want to join the London black hole.

But there must be something I would criticize the report for, surely, and yes, there is indeed. Tim is always saying that his ideas are a new way of thinking about land, superior to and more suitable for the modern world than that other suggested reform a hundred years ago, Land Value Tax. But the report opens with a complaint that despite trying everything regeneration has failed. Well we haven't tried everything - we haven't tried land value tax. And if any of this report is to be taken on board and implemented we need LVT first. To ensure the timely release of non-housing land for housing, to ensure that Oxford is developed to its current optimum level before adding more, and so on. If Burnley has, as the report suggests, a negative residual land value, then people settling there under my suggested system of land tax and citizens' income , are going to actually be paid for living there. Any firm setting up there will face no taxes, either on its workers, profit or its location; it's going to be around 30% better off just for that and may indeed help attract skilled work back into tax free areas.

The report praises the London Docklands development. Docklands was primarily initially successful (key to regeneration is getting a critical mass of occupiers into a newly regenerated area quickly so it can start to form a community) because the LDDC declared a rates holiday for a decade. Rebasing our tax system to land values rather than incomes or productivity would help focus sustainable communities and give massive incentives, natural incentives, for communities to attract new settlers, especially in jobs that are not necessarily competing on a global scale. With that caveat, that full scale LVT should predate any of the changes suggested in this report, I think I support virtually everything else in it.

It's not comfortable reading necessarily, but I've long held that the rise of global communications and the internet is an epochal change the likes of the printing press or the steam engine. When the steam engine came along it reshaped Britain. Why should we expect, Cnut-like, to stand in the way of the next epochal technology changing the way we live on these islands?

One thing I would say though, Tim, if you read this - I reckon calling your own report "barmy" probably makes for worse press! read more »

Is this Oxford Labour's "double devolution"?

Jock — Wed, 06 Aug 2008 19:41:23 +0100

Area planning decisions to be recentralized? Area committees disbanded? Is this Labour in Oxford's response to near universal calls, in political terms (not least from their own Communities Department), for greater devolution and localism in our government structures?

They're pretty much already committed to the Stalinist recentralization of all planning decisions, slightly modified now to have two wider area based development control soviets as well as a supreme soviet committee in case even these two go against the Politburo's diktat or predilections. All because Labour councillors seemingly cannot work out how they could possibly "lobby" for their constituents wishes on some applications whilst helping decide on neighbouring wards' local applications.

I prefer the Danish system I believe it is, where areas more or less the size of streets have small committees purely dedicated to development control.

But in the absence of that a much more open system of area committee planning hearings would be a step forward rather than Labour's regressive centralizing power grab. Colleagues in other authorities received different legal advice to Oxford's and hold open discussion at their area committees where parish council members usually attend en masse and they claim get better decisions, more local acceptance of decisions and an all round feeling of compromise giving the better solutions for all. The rationale is that it doesn't matter how much time objectors and applicants spend at any individual stage of the process as the applicant in particular can have all the time they like to argue their case at appeal - that it's the entire process from start to finish that has to be fair to both sides.

Despite an initial increase in time spent in planning as everyone wanted to have their say, in practice, area planning meetings are now quite sophisticated - nobody feels the need to fill five minutes because can because they know anyone else could raise questions and so few are repeated. Good chairing of course helps, something also sadly lacking in Oxford City Council in my experience.

But centralizing planning is one thing, now there are rumours that Labour wants to disband area committees entirely. I hope one of them is reading this and will assure me this is not the case, or that something better will be put in their place. I have long argued that Oxford should reparish the city, shrink the city council effectively to an executive committee and have much more local control through parish or town councils. It's really not that long ago (in its history of over a thousand years) that Headington was administered by the Headington Urban District Council for example. Parish and Town Councils can actually have quite a lot of power - indeed more or less anything a higher level authority wishes to delegate to them.

I was at Thame Town Council a few months ago doing a presentation on Community Land Trusts, and I got the great feeling that this body was one that was prepared to fight its community's corner against the district level council when it mattered. Much moreso than where the committee is really a "branch meeting" of that district and collective responsibility trumps representing your constituents. In other parts of the county parishes precept as much as the district in council tax. Even in the few parts of Oxford where there are parishes it's more like 10% of the district level rate. Headington - or rather the current North East Area Committee area - is half as big again as Thame; easily able to support a stronger more local decision making body if the City Council took its claws out by at least as much!

But again, if the nirvana of local parish councils is not available to them for some reason, there are ways in which area committees can be given real power. Again, colleagues elsewhere only appoint a handful of central portfolio holders on their executive board, and then appoint one member of each area committee as ex officio executive members. Bound by collective responsibility each area committee executive representative can take a decision on a local issue, but which would normally fall under the competence of the executive board, there and then at the area committee meeting, advised by the open discussion amongst councillors and interested public at the area committee. Further, when they are at the executive committee, these area representatives can carry a majority, so if they are mandated by their areas in respect of a proposal by one of the core portfolio holders, they can overrule the core portfolio holders; effectively giving real positive control to those local community meetings collectively.

So, Oxford Labour, I'm sure there's more than just me out there, even if we do not often attend your City Council branch committee meetings, who appreciate the fact that they exist for us if we want to have our say on something, who will be very disappointed if you dismantle this structure and, Jack Straw like, leave it half reformed and more centralized.

Who wants to join a campaign to parish Oxford city then? read more »

Calling councillors whose authorities use the "Uniform Public Access" planning application system...

Jock — Thu, 31 Jul 2008 17:40:02 +0100

...I know we do in Oxford, and I also notice that at least three of the surrounding councils use it, so I presume this is de facto the "market leader" in public access planning application systems on the web. At least at Oxford City, very little appears to have been done to the system since they implemented it six years ago - and that MAY be the council's fault for not upgrading or whatever. However I have two big issues with it that I would like as many councillors from as many authorities as possible to complain about in the hope that their authorities will start to pressure for these changes, one of which would be an enhancement but the other definitely a fix for a non-compliant system in my opinion.

1. It has never worked properly with any browser other than Internet Explorer. In particular, the mapping system does not work in Firefox (2 or 3) or Safari. It may load the first, whole borough map, but if you want to start zooming in to the site you want to look at it refuses to play. In my opinion whilst IE may be the most frequently used browser, it limits users to Windows operating systems now. It will not work properly on any other type of machine - Mac or Linux for example. If yours does work correctly, perhaps you could let me know so I can continue to nag Oxford City Council to get updates or whatever would be needed to get it working. As far as I am concerned by excluding anyone other than Windows users it does not comply at least with the spirit of e-Government.

2. RSS feeds please! At the moment the closest you can get to a regular list is a weekly application list by going through several pages of the site. Here in Oxford apparently they are planning on piloting an e-mail alert system which will necessarily involve people submitting yet more personal information to the council in order to get alerts, and it will no doubt be difficult to change the alert you want (it may for example simply mean sending out the weekly applications list for a ward or some such simple response).

RSS feeds would be far better. They can be made infinitely variable - some people might only want applications in a post code, others for telecoms masts only but borough wide, others for a ward or area committee bundle of several wards. All this should be possible with RSS feeds. Also, many councillors like to keep their constituents in touch by copying "long hand" the weekly list applicable to their ward onto their websites. RSS feeds would allow them to automate this tedious process. I myself am planning a non-council local website, ox2online.net, to complement the area's e-democracy forums and so on, and RSS feeds would be ideal.

So please, if you are reading this and work or are a councillor in any authority that uses this system for public access to planning applications, can you think about these and have a nag at your planning/IT/eDemocracy officers and see if we can't get these changes.

(Oxford City Council appears to be on "Version 7.4") read more »

Never say never again?

Jock — Tue, 06 May 2008 00:08:37 +0100

I feel I've been tagged in a strange sort of a meme for my thoughts on Oxford's recent local election results by Antonia [From Oxford elections round-up]:

We await with bated breath the thoughts of Stephen Tall, no longer Lib Dem councillor for Headington, his colleague David Rundle, and the third-placed Lib Dem candidate for Headington Hill and prolific blogger, Jock Coats.

Well thanks, she just had to rub it in by mentioning that third place. I am embarrassed and humiliated to have come third. There are of course official post mortems to come yet on the campaign, but whatever their verdict, one simple fact is that I am a "bad candidate". Whatever fresh ideas I may have brought to the council (and I doubt my Labour victor will be doing much of that, sad to say), I cannot escape the fact that I hate knocking on strangers to talk politics with them. So for me, the literature and word of mouth amongst people who have met me outside that context is more crucial than for most. Such glad-handing ought to have happened long before the campaign proper started with voter ID canvassing in late March. And been followed up with a leaflet introducing me properly and extolling my virtues before the cross city campaign started with its more party led focus on whole city issues.

Then there was "that leaflet." On the last weekend of the campaign I had the dubious honour of having a Labour leaflet, apparently partly delivered by Mrs Dromey (I rather hope, Antonia, that you were unaware of that leaflet's existence when we exchanged pleasantries on the Friday evening), using quotes from this blog about drugs policy obviously intended to give the impression that if I won I would probably be found standing outside the primary school handing out various narcotics to the year sevens, or perhaps to their parents! Several opponents have commented that they thought it was one of the worst personal attack leaflets they had seen. I suppose I ought to feel flattered that Labour were sufficiently alarmed by my candidacy to feel the need to drag the contest into the gutter.

You can read it for yourself here. By my reckoning, it at least breaches copyright law (my moral right not to have my copyrighted work treated in a derogatory fashion or in a way designed to be prejudicial to the honour or reputation of the author or director), if not possibly electoral law. Enquiries are ongoing. I am not a sore loser, but I was upset by it. I know it cost me both votes and reputation, even amongst my deliverers.

Anyway, enough of the campaign itself. Will I ever try again? I don't know. For many years, since in fact I was last on the council in 2002, I have wondered whether the present system of local government is fit for purpose. As an ideological descendent of the individualist-anarchists and a mutualist, I find the state, in all its guises, terribly coercive. I believe sovereignty should lie with the individual and he or she should only cede power upwards to representatives over things that they cannot arrange for themselves or in small groups or local communities. Local government is so tied down by Whitehall and Westminster that the current arrangements simply cannot be responsive enough to local peoples' needs.

The main reason I wanted to be on the council was to continue to promote, from the inside as it were, my mutualist agenda of hiving local authority functions off onto social, community led partnerships. The more things compete for the crumbs of council budgets within the tight control of Whitehall oversight the less satisfactory the outcome. Leisure services for example cannot hope to compete in quality at least with private providers while it is within the constraints of council budgeting. Similarly, whilst more difficult, I think the solutions to our housing problems are community led, rather than council, landowner and planning led.

Every time I've lost so far I've come out of the contest wanting to do other things that will make a difference one day outside the council structure. Almost as if to prove we can cope without the psychopaths who are so good at saying the right thing at the right time to get themselves elected. This time it is to continue to promote the social enterprise "alternative" for producing social and public goods and to work on promoting local community e-democracy.

It will be interesting to watch Labour finally explain where they think there is a "£5m cash crisis" at the city council - reading the latest annual accounts I cannot see it myself. But there's another argument for local government reform - despite us being the tax payer/employers their finances are even more opaque than any company's I've ever seen.

It will be fun to see Maureen Christian defend the Northway Playing fields from something or other she seems to think threatens them (certainly the only "threat" i heard was my own idea to see if we could fit a cricket square on there by budging up the two football pitches and see if we could get a local cricket team going).

I think it will be a retrograde step if Labour succeed in removing planning decisions from area committees. They were not perfect there, but I have always maintained that was as a result of the bad legal advice that both sides in any disputed application had the right only to speak for five minutes each - where they have open discussion at area committees they manage to get better decisions and more fruitful interplay between applicant and objectors and a better outcome for both.

It will also be interesting to see whether the Tories, who, despite not winning a single seat managed to come in second in many wards, and at least the ones in which they tried to put up a full campaign, will be able to keep up that level of work, for example, next year, when their declining reputation in control of the county is up for defending.

And it will be interesting to see whether this marks the high water point for the IWCA, who lost two of their councillors.

But I also don't really expect the city council, under any party, to set Oxford on fire with bright new ideas that will markedly change the quality of life for its citizens.

Finally, if anyone has any ideas about what little thank you gifts I can get for two teenaged Muslim boys who managed throughout to deliver most of the half of the ward for which we did not have regular deliverers - not a happy situation to be in at the start of a campaign and one of the first things I hope to put right for next time - I'd be very grateful to hear them! Their father has resisted all my requests for his advice so far! read more »

Two local examples of why land (and planning) reform is needed

Jock — Tue, 15 Apr 2008 00:45:50 +0100

Quite by chance, as if on order to make the local elections more exciting in my ward, two local planning issues have suddenly popped up (not entirely unexpectedly it has to be said) that are likely to cause a deal of controversy when they get to decision-making time. I don't want to talk about their planning merits or otherwise on here. But I do want to use them because they are very good examples of why I am so passionate about land reform.

The first, in the ward in which I am standing is an application for new student residences adjacent to the site on which I am a warden proposed by my employers, Oxford Brookes University. To be fair it will make more of an impact on residents in the neighbouring ward, but it is the economics of it all I want to look at not the planning, to show why land value tax would be such a benefit to the community.

The second, just over the main road in the neighbouring ward but which will make a significant impact on neighbours in both wards one way or another is the news today that Tesco have bought up a local former pub building from a local bar/restaurant entrepreneur who had seemingly been knocked back in the early stages of planning such that he no longer felt it worth fighting for his ideas for the site. Here I want to look at how the planning system seems to favour the bigger developer with the financial clout and how this affects the fairness of land law.

But first, the new proposed halls of residence. This site is approximately quarter remaining of a site the university acquired from the Department of Social Security about seven years ago now. When I was last on the council, just at the end, they had owned the site for about six months, if I remember correctly having bought the whole thing for either eight or eleven million pounds through a charitable trust set up for the purpose and were just getting outline planning consent.

The entire site had been only about a quarter used for several years since most parts of the DSS had moved out. And even when at "full capacity" it had been an egregiously inefficient use of a piece of prime inner suburban land - even for offices - since it was half car park and half single storey nissan hut type buildings.

Since it had been government owned, effectively there was no income to the public purse from this land. Once it was owned by a charity the empty land has generated no receipts to the public purse in the form of business rates. The charitable trust sold off about a quarter of the land to the adjacent Oxford International Centre for Islamic Studies, first for use as a contractors car park and now it lies more or less empty. A hectare of prime city centre building land. The university built nearly seven hundred student rooms in new halls on half of the original land and these were opened five years ago now. But it is the effect of this last quarter of of the site I want to examine and show how failing to encourage optimal use of land where it is available is a disaster for the rest of us.

The site is about a hectare. So if the original purchase price for the entire site was the higher of the two figures I remember hearing at the time - eleven million pounds, its share would be two and three-quarters million. The current application is for 335 study bedrooms and since the student halls market has changed out of all recognition in those seven years, commercial firms are willing to pay it is rumoured up to £45,000 per room for suitable land, as a site alone it would be worth more like fifteen million pounds.

Point one: whilst the local authority has received virtually nothing for this land in rates, the owners, either the university or the charitable trust, have effectively got a book profit of £12 million - a four hundred per cent return in seven years.

335 study bedrooms would, if theory, allow some 83 four bedroomed family homes to be freed up from the current student private rented market somewhere in the city assuming student numbers overall remained static. That's 83 largeish families who have been otherwise excluded from the housing market in Oxford for seven years because these halls did not exist. At its worst, that means that the tax-payer, through housing benefit, has spent upwards of ten million a decade supporting those households in private rented accommodation while they wait for "affordable housing".

Point two: the cost to the tax-payer of that piece of land laid idle and not producing any local taxation has been at least ten million in housing benefits to private landlords while the owners have made that massive book profit.

Now imagine if that land were taxed on its value at its most productive use - that's currently the £15 million or so a commercial halls of residence developer would pay for it. A ten percent land tax would now be yielding the public purse £1.5 million a year, and more importantly would have been liable for that tax all the while it has been so underused. No owner with any financial sense would have kept that land out of productive use with a tax bill like that. The land would have been brought into its best use long ago, either as housing itself or freeing up those equivalent 83 units for family use instead of student private lets, and the tax-payer would not have had to support 83 families to the tune of that £10 million pounds a decade in supported housing.

Now, don't get me wrong, I am neither criticising my employer nor demanding ten storey blocks of flats on every vacant site. But I am illustrating the cost to society of holding land out of use, and the unfairness where, in doing so, the owners have made a vast profit at the direct expense of the tax-payer. It's the system that causes this, not the participants in that system who are only following the rules everyone else plays by.

Now to the "Tesco pub". Some time ago this down at heel local pub was closed, its future uncertain. A well known local restaurant and property entrepreneur bought it up and a few months ago publicized his idea for turning it into a row of three shops and some flats above in a "landmark" new building. But with an ambivalent local reaction and, it seems, less than enthusiastic reception from the city's planners to the idea, this chap pulled his plans and decided to look around for a buyer. The land registry records show that the property had cost him £400,000 and that it was mortgaged so he had financed it empty for seven or eight months developing his ideas and the prospect of a long uphill struggle into the unforeseeable future in the planning system means he would be financing it empty for many months, if not a couple of years to come.

It is opposite a long established and not so long ago refurbished and extended local Co-op store (where I joined as a member of the Co-operative and where I shop several times a week in preference to all the other supermarkets around I could potentially choose from) and a less long established Costcutter store that houses the local Post Office and a similarly aged Chemist shop that replaced a locally owned and well patronized cycle and fishing tackle shop and an electrical retailer. It is, to put it mildly, on an awkward site, at a very odd junction just at the point the Marston Road becomes a dual carriage-way "boulevard" and buses turn right against the traffic whilst the off-road cycle lane comes to an end, the road splits into two lanes prior to a busy and slightly awkward double roundabout junction. There is just enough parking in the lay-by outside the existing shops for their customers and nowhere else for cars to park.

The site might have been viewed as ideal for shopping or catering uses complimentary to the existing neighbouring shops. Extending the range of goods and services people could get in a single visit to the local shops. All very sustainable. And contributing to the local economy and the success of local entrepreneurs - all of which tends to keep more money in circulation more locally in Oxford, making us all better off.

But now Tesco have the site. Obviously, they are in competition with two of the existing local stores. For many, they will do a better job of supplying their grocery needs and at lower prices. That too is good for peoples' pockets and therefore local wealth retention. But since, if they've borrowed to buy it at all, as opposed to taking the purchase price out of the weekend's take from the nearby Tesco out of town superstore, it's probably a tiny dent in their current income rather than a major liability as it would have been to the local entrepreneur who had borrowed to buy it as a significant chunk of his portfolio. And they can afford to sit on it until the planners give in, until attrition of any opposition to the idea gives them an easier ride in the planning process.

At the moment I wouldn't dare to have made up my mind about the idea of Tesco Express there. On the one hand, competition is good for the consumer. On the other, Tesco has such financial clout that it could send its competition to the wall and leave it eventually and open field to increase prices because of its local monopoly. And there again, whilst as a member I would be very sad to see either of the two existing competing stores fail, they would almost certainly then be occupied by some other, and probably local, entrepreneur with another great idea that would compliment rather than compete in its turn with the Tesco store. Again, this increases the range of goods and services a person can get in one trip to the local shops.

But all I am highlighting is that because the planning system causes a proportionately greater opportunity cost to fall on the smaller businessman it actually favours the big financial muscle of large corporates who can afford to take the risk for longer. It is not a level playing field. But, as in the previous story, it's the playing field on which all would be developers have to play. On the other hand again, it would be quite wrong for the planning system to become a tool of protectionism, benefitting one business or businessperson over another by preventing competition. Perhaps in an LVT based system the tax payable on a site should be suspended for the time during which the planning bureaucracy was deciding on a proposal to concentrate the minds of planners on getting the best deal for all parties in the minimum time possible and enabling people to get on with running their businesses, extending their homes, or whatever the application was for.

Anyway - all that was a bit of a marathon use of two local and serendipitously current issues illustrate quite well some of my hot button issues on land reform, free trade and anti-protectionism and localism. read more »

Rich take Oxford to cleaners to sweep poor away...

Jock — Fri, 07 Jul 2006 19:50:38 +0100

Just a possible alternative headline for this story in today's Oxfrord Mail/Times - Trap Grounds Bill Tops 159k

Barker II: Kate's return, and this time it's planning

Jock — Wed, 25 Jan 2006 21:46:07 +0000

I'm just sitting listening to the Any Questions Lib Dem leadership contest special and I just heard Chris Huhne, in response to a question about whether they were more afraid of Gordon Brown or David Cameron, say that one thing that scares people about Gordon Brown is that he cannot keep his hands out of other departments' business.

How timely an answer, because it has just been announced today that Kate Barker, she of the housing market report that was commissioned a couple of years ago (and who said herself that she didn't know much about housing economics at the time!) has now been asked to do a review of the Land Use Planning system...by...The Treasury:

The terms of reference of the review are:

To consider how, in the context of globalisation, and building on the reforms already put in place in England, planning policy and procedures can better deliver economic growth and prosperity alongside other sustainable development goals.

In particular to assess:

ways of further improving the efficiency and speed of the system;
ways of increasing the flexibility, transparency and predictability that enterprise requires;
the relationship between planning and productivity, and how the outcomes of the planning system can better deliver its sustainable economic objectives; and
the relationship between economic and other sustainable development goals in the delivery of sustainable communities.

I wonder how much Ms Barker knows about planning. She's turning into the economist's version of Louise Casey methinks.

Gordon Brown to make housing dearer...

Jock — Tue, 06 Dec 2005 15:20:12 +0000

On Monday, Chancellor Gordon Brown in his pre-budget statement announced that he was going to consult on what he calls a “planning gain levy”. On top of existing arrangements for taking 50% of land subject to planning permissions for much needed affordable housing, he is now wanting another 20% of the land value increase as a windfall tax.

I hope councillors from all over Oxfordshire, and especially Oxford City where reusing land efficiently is most important, will stand firm against this when they are consulted. Labour governments over the past 80 years have tried this tax three times already, most recently as the Development Land Tax of the seventies’ Labour regime. It has been abandoned each time because as a transaction charge it puts landowners off seeking planning permission for the sort of change of use we rely on to provide housing development land.

Nothing has changed since the ill-fated attempt thirty years ago. Far from providing pots of money for councils to spend, it will make it very much more difficult to entice owners to bring forward land suitable for housing, which we desperately need. It will encourage sprawl and inefficiency. Unused land will lie idle and be a focus for anti-social activity.

The big housebuilders have enough land and enough planning permissions to keep them busy without new supplies for a good while, until this tax is repealed yet again. The only people this will really hurt are those without adequate housing at present.

There is a far better solution, however. We should base property taxes on only the land value of a site and not the buildings and improvements on it. And to make it payable even when a site is vacant or underused. This way owners paying taxes on underused land will be encouraged to bring it up to the most efficient use.

The previous County Council voted twice to support Land Value Tax and carried out a pilot study in the Vale of White Horse. Oxfordshire is therefore in the perfect position not only to oppose this ill-considered development tax but to prove the effectiveness of Land Value Tax as an alternative. Missing this opportunity may simply switch off housing development in Oxfordshire for years.

County's Housing Consultation Sham

Jock — Wed, 02 Nov 2005 15:16:27 +0000

The consultation on housing in the county was a sham, as the whole process of local, strategic and regional planning for housing has been right the way through.

Good alternative ideas have been unwelcome for two years now! The option to put thousands of homes on the edge of the city is based on seriously flawed interpretations of the City Council’s own research. The others are an unacceptable, usually undemocratic imposition on smaller towns.

What the city council’s Labour group is proposing is in fact an overall increase in Oxford’s population of a nearly a fifth. Because the only way they can see of providing affordable housing is to allow lots of private market development.

What we need is a mechanism for sustainable use and reuse of what we already have – making the market match the need. Most people in the city’s housing needs survey are already based in the city – we just have severe problems affording what they are in. The absolute shortage of housing is only around a quarter of what the city’s planners have extrapolated from their research as a result.

We can expect more villages to become havens for the wealthy and their public services like schools, local shops and buses to wither and die. And acres of soulless developer boxes spreading out into South Oxfordshire no doubt pretending to be “communities”.