QUEEN'S BENCH DIVISION
THE ADMINISTRATIVE COURT
Strand London WC2A 2LL |
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B e f o r e :
(Sitting as a Deputy High Court Judge)
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THE QUEEN ON THE APPLICATION OF GATES HYDRAULICS LTD | Claimant | |
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SECRETARY OF STATE FOR COMMUNITIES AND LOCAL GOVERNMENT | Defendant |
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Ms S Davies (instructed by Treasury Solicitors) appeared on behalf of the Defendant
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"The proposed development of this site for a mixed use will result in the loss of employment land for which an under supply has been identified in the Huntingdonshire draft employment land review and which has been identified for protection and retention for employment use by policy E3 of Huntingshire Interim Planning Policy Statement 2007. The application has also failed to demonstrate that the continued use of the site is not feasible, that existing uses give rise to unacceptable traffic and environmental problems, or that the proposed use would result in greater potential benefits to the community. The proposal would therefore conflict with policy E3 of Huntingdonshire Interim Planning Policies Statement 2007."
The second reason is:
"The proposed mix used development which proposes a residential use surrounded on three sides by industrial use and which is accessed through retained industrial area would result in a poor quality residential environment which fails to interrogate with surrounding uses and where the occupants of the dwellings are likely to be subject to noise and disturbance from surrounding industrial uses. The proposal therefore fails to comply with policy P1/3 of the Cambridgeshire and Peterborough Structure Plan, Policy HL5 of the Huntingdonshire Local Plan Alteration 2002 and Planning Statement 1 and Planning Policy Statement 3."
The Decision Letter
"The appeal site, some 3.2 hectares of employment land, is located almost opposite the train station. Neighbouring the site to the west and north-west are some of the close-knit suburban streets of St Neots. The edge of town location of the appeal site, so close to housing, the train station and with ready access to other public transport links and services makes it a highly sustainable location. In considering this appeal I have had particular regard to this point as Government policy is that optimum use should be made of existing premises in sustainable locations to encourage continued economic development."
She concluded in paragraph 14 as follows:
"As I saw at my site visit the industrial units and offices are, in the main, empty but appear in a sound condition."
The Inspector then went on to consider the impact of the proposed development on employment opportunities and in paragraph 16 said:
"I consider that the value of the appeal site for the provision of employment opportunities within St Neots is intrinsically linked with the realistic possibilities of the buildings and the site being brought back into appropriate commercial uses."
She set out in the following paragraph 17, the clear merits of the existing site:
"This is a highly sustainable site, occupied for many years by a large employer within the town. It forms part of the existing stock of employment land and is centrally located within the established Station Road Industrial Estate where neighbouring premises are still in productive use. The site also forms part of the existing employment land stock upon which the assumptions of the ELR were predicated. Before releasing such employment land which has contributed to the economic well-being of St Neots, I must be confident that such land is no longer required."
The Inspector noted that the claimants had vacated the site over a period of time ending in August 2007 and noted also that there had been time to carry out a robust marketing campaign but that she had no evidence before her that a strategy of marketing the site in a way to explore its potential for employment uses, over and above that which exists was given any serious consideration.
"The appellant's premise on job creation centres on a purely hypothetical, numerical exercise in a comparison of job numbers. This would be dependent on the type, mix and density of employment uses which would finally come forward for development. Further, it does not take into account the potential that the totality of the appeal site may have for employment creation in this highly sustainable site."
She concluded at the end of that paragraph:
"Therefore, there is no sound evidence that the continued use of this sustainable site for employment purposes is not feasible, taking into account the existing/potential market demand even in the current economic climate."
She concluded, in relation to the employment land aspect that the proposal would have an unacceptable adverse effect on employment opportunities within St Neots, contrary to government policy along with the substance of EEP policies E1 and E2 and HIP Policy E3, which all seek to improve productivity and the United Kingdom's long term economic performance.
"However, residents would be aware of noise from fixed and industrial plant and the general movement of staff, vehicles and goods connected with the employment uses in close proximity to the gardens proposed houses. This would impinge on the enjoyment of such private, external space by residents. Whilst the level of noise may be within the tolerances of national guidance, I consider that on a site with the range of uses proposed, it would be likely that the nature of that noise would be distracting, even annoying in such close proximity. I do accept that mature landscaping and boundary fencing would be a means of abating such disturbance. However, as employment uses could range between Class B1, B2 and B8, and they could directly adjoin housing I am not convinced that such measures would be sufficient to provide acceptable safeguarding for the living conditions of the future residents."
Employment Issues
"If regard is to be had to the development plan for the purposes of any determination to be made under the Planning Acts the determination must be made in accordance with the plan unless material considerations indicate otherwise."
Further, section 70(2) of the Town and Country Planning Act states that in determining planning applications the authority shall have regard to the provisions of the development plan, so far as material to the application and to any other material considerations. The complaint is that at no stage in the decision letter did the Inspector reach a finding as to whether the proposed development was in accord with the development plan, and secondly, that she failed to proceed to consider whether material considerations outweighed the development plan position. The claimant had argued during the public enquiry that there was no development plan policy that justified refusal of planning permission. It is right to record that the Inspector did not refer expressly to section 38(6) of the Planning Compulsory Purchase Act but she did not need to do so.
In the case of Spelthorne Borough Council v Secretary of State for the Environment [1994] 68 P & CR 211, at page 211, Mr David Keene QC, sitting then as a deputy judge of this Court said in relation to the preceding provision of the Town and Country Planning Act as follows:
"However, that does not mean that an Inspector or the Secretary of State must always spell out that finding in express terms. No doubt it will be helpful if he or she does so, but I bear in mind that circumstances of cases will always differ. The court is concerned to see that the decision-maker has arrived at the decision in a manner consistent with section 54A... and that the decision letter indicates to the parties, who know the background to and the facts of the case, that the correct approach has been adopted. But how explicit an Inspector needs to be on whether or not a proposal accords with the development plan must depend on the circumstances."
Applying that approach here the Inspector clearly identified the correct component parts of the development plan in paragraph 5 as I have set out. Further, she identified the relevant policies of the EEP and their substance in paragraphs 6 and 7 of the decision letter equally, as I have set out above. She then proceeded to consider the application of those policies to the appeal proposal and concluded, at paragraph 20, that the proposal would be contrary to government policy along with the substance of EEP Policies E1 and E2. The position is therefore clear that her conclusion was that the proposal was not in accord with the development plan as a result of the EEP policies.
"Therefore, I conclude that the appeal proposals would unacceptably harm both employment opportunities within St Neots and the living conditions of the future residents of the new dwellings in relation to noise and disturbance. I have considered all the other matters raised, including the benefits which would ensue from the provision of affordable housing within St Neots, but such provision would not outweigh the harm I have identified above."
It is perfectly clear, in my judgment, that the Inspector identified that there were no other material considerations to outweigh her conclusions in the harm that she had found resulted from the proposals. It follows that ground 1 must fail.
The third ground and, in my judgment really the key ground in relation to the employment issues, is whether in reaching her determination, the Inspector misinterpreted the provisions of the development plan. The criticism is that the Inspector misunderstood policies E1 and E2 of the EEP, in that they are of no relevance on individual development controlled decisions which was agreed by the planning authority witness in cross-examination.
It is agreed that in approaching development plan policy the decision makers approach will only be interfered with if it goes beyond the broad range of meanings that can be given to the language used (see R v Derbyshire County Council ex parte Woods [1997] JPL 958, at pages 967 and 968). That approach has been approved by the court of appeal in R (On the application of Heath and Hampstead Society v Camden LBC [2008] EWCA Civ 193.
Here, as set out, policies in the EEP are strategic policies. Their objective is to stimulate job creation, through policy E1 and to ensure an adequate range of employment sites to achieve the employment figures set out in E1, through the application of policy EE2. The Inspector was clearly right, in my judgment, to look at the underlying objectives of those policies in considering the development before her.
Whilst it is correct that policy E2 is to inform the policy approach and local development documents as to the choice of sites ultimately to divorce that information from any further application for development proposals would be to live in an entirely unrealistic world. It would be to restrict and emasculate the reach of regional spacial strategy which is part of the statutory development plan. Of course, if there is an element of the development plan which provides more site specific guidance, greater weight would attach to that document than the RSS, but that is not the position here.
The Inspector was quite entitled to interpret policies E1 and E2 with regard to their underlying substance and objective. They set the policy matrix which the elements of the development plan. Other elements of the development plan then develop those policies in greater detail. To achieve those objectives the local planning authority has commenced an employment land review to provide an evidence base for a local development document. The employment land review identified employment land as shown on the local plan proposals map, which included the appeal site which would be safeguarded for employment uses. Paragraph 4.11 of the underlying text of policy E2 of the East of England plan says:
"Surplus employment land may be released for housing or other pressing development needs in line with PPS3. However it will be important to base such decisions on sound evidence. Land that is likely to be needed for employment should be safeguarded against other development pressures."
In those circumstances, the Inspector's conclusions as to the objectives of policy E2 were clearly within the range of meanings that could be attributed to it. I therefore reject the submission that the Inspector misinterpreted the policy.
The next ground is that the Inspector took into account an irrelevant consideration, namely an informal policy document - HIPS, or alternatively, reached an irrational decision basing the refusal on the document. As I have said, HIPS was no part of the development plan. It was based upon the Huntingdonshire core strategy, a development plan document 2006 which had been found to be unsound. As an interim measure the local planning authority adopted certain policies as a guide to its decision-making process. Policy EE3 dealt with redevelopment of office of industrial and warehouse sites and was therefore applicable to the appeal site. HIPS was thus, clearly, a material consideration, and accepted by Mr White to be so, albeit it was not one to which much weight should attach. That was the approach which the Inspector took. It was, in my judgment, an approach which she was clearly correct to do.
The next ground is that the Inspector misdirected herself as to the appropriate policy test for determining the appeal. In relation to that Mr White contends that when the Inspector set out in paragraph 17 that she had to be confident that the land was no longer required for employment purposes, that that was a test for which there was no base in policy and that, secondly, when she set out in paragraph 20 that there was an unacceptably adverse effect on employment opportunities within St Neots, contrary to government policy, along with the substance of the EEP policies E1 and E2 that had no policy base. The only basis for it was paragraph 4.11 which I have set out above and that was not representative of the policy.
Dealing with those points in the reverse order. So far as paragraph 20 is concerned, because of the qualitative attributes of the appeal site which the Inspector set out and the objective to retain land needed for employment use, the Inspector's conclusion was one which was clearly justified and correct. So far as paragraph 17 is concerned and the submission that that was a test which was not to be found anywhere with the documents, I reject that submission. It is clear from paragraph 4.11 as to safeguarded land and the objectives of the strategic RSS policies that there was a basis to look at the requirement to retain the employment land further. Policy EE3 of HIPS raises within its terms the test as to whether the continued use of the site is no longer feasible. Even if less weight is given to that there is an interrelationship between HIPS and the strategic direction in the RSS. I therefore reject all points of criticism relating to employment land issues in the decision letter. I turn to deal with noise and disturbance issues.
Noise and disturbance issues
"The change of use from employment to residential on the western half of the site is of benefit to residents living in Sandwich Road, immediately to the west, as the employment uses have been moved approximately 100m further away and are screened by the proposed dwellings.
• An acceptable noise climate can be achieved at the proposed housing by adopting noise mitigation measures and by applying noise conditions requiring them to achieve appropriate standards."
His evidence was therefore that the development was acceptable from a noise point of view, both internally and externally, so far as the new residential dwellings were concerned.
"The activity related to employment uses within Class B could be considerable with associated traffic and noise disturbance. As previously stated, whilst there may be no statutory nuisance or highway safety issue with this relationship the nature of activity would be likely to be subject the future occupiers of the proposed residential development to noise and disturbance."
"Before any development is commenced a scheme for protecting the proposed dwellings from noise from the industrial and transport sources in accordance with the recommendations set out in the Bickerdike Allen Partners Environmental Noise Report (30/05/2007) shall be submitted to and approved in writing by the Local Planning Authority. All works which form part of the scheme shall be completed before any proposed dwelling is occupied."
"It is agreed that future use of the retained employment land is likely to give rise to noise emissions and that the mitigation of this noise may be treated as a reserved matter and covered by appropriate noise conditions to mitigate such future noise."
In conclusion paragraph 4.1 says:
"It is agreed that this statement covers all noise issues relevant to this appeal."
The statement was then signed by Miss Platt and Mr Miller.
"In order to assist the Second Defendant's case, Ms Platt then tried to explain that the Council's position was not in relation to noise levels as a specific issue, but to noise disturbance in general to the residential element due to the proximity of the proposed employment use."
In cross-examination Miss Platt confirmed that there was no noise issue but more a design issue that was likely to cause disturbance due to the proximity of uses. That is set out at paragraph 11 of Mr Piatt's witness statement. At the end of Day 1 of the inquiry Mr Piatt records Mr White as saying:
"Mr White then confirmed his understanding of the position which was that Mr Miller's technical noise evidence arrived at the conclusion that the recommended noise mitigation measures would provide adequate protection for future residents against the effects of noise from the relevant sources and that there were no other examples of disturbance stated by any party. Mr White asked the Council to reflect on this position overnight."
"10. However, at the start of the second day of the Inquiry when the case for the Claimant was to commence the Claimant's advocate said that Mr Miller was on a train back to London as the Claimant had decided it was not necessary for Mr Miller to give evidence as the Second Defendant was not challenging his evidence.
11. This decision was taken without any reference to me and I expressed my surprise at this to the advocate. I had not anticipated Mr Miller's absence on the second day of the Inquiry. His absence meant that I was unable to ask him any questions about the effect of the proposed redevelopment on the living conditions of future neighbouring residents in respect of noise and disturbance.
12. The advocate indicated that Mr Miller's absence was unfortunate but suggested that perhaps Mr Hinds, the Claimant's other witness, could assist me. The Claimant did not at any stage ask for an adjournment in order to call Mr Miller or indicate that it wished to do so in the light of my comments."
The case of Poole (R on the application of) v Secretary of State for Communities & Local Government [2008] EWHC 676, dealt with a similar situation where there had been a departure from an agreed statement of common ground. Sullivan J (as he then was) dealt with the requirements of circular 5/1000 and paragraph 40 of that which sets out the requirements relating to statements of common ground. He proceeded in paragraph 42 as follows:
"If a party to an inquiry reasonably believes that a matter which was in dispute has been dealt with by way of agreement in a statement of common ground, it may well be unfair to allow the apparently agreed issue to be reopened without giving the party a proper opportunity to address the issue, if necessary by calling appropriate expert evidence."
Further, within paragraph 44 Sullivan J said as follows:
"... the imperative in the Rules requiring the principal parties to focus their attention on the issues that are in dispute would be wholly frustrated if appellants and local planning authorities were unable to place any degree of reliance on matters that had been apparently resolved in a statement of agreed facts. It would be entirely unsatisfactory if, having agreed such matters, the principal parties to an inquiry would still have to prepare their evidence on the basis that the Inspector might wish to pursue a particular line of reasoning that departed from the agreed statement."
Of course, the difference in that case is that there was an application for an adjournment to meet what appeared to be becoming a new and unexpected issue and that application for an adjournment had been refused. The issue here is whether, against the facts that I have set out, the claimants were denied a fair crack at the whip. In the case of Castleford Homes v Secretary of State for Environment and the Royal Borough of Windsor [2001] EWHC Admin 77 Ouesley J said at paragraph 52:
"The relevant law, though not cited to me, is to be found in cases such as Fairmount Investment Ltd. -v- The Secretary of State for the Environment 1 WLR 1255 at p.1266; and H. Sabey & Co. Ltd. -v- The Secretary of State for the Environment [1978] 1 All E.R. 586. Did the Claimant have a 'fair crack of the whip?' Was the Claimant deprived of an opportunity to present material by an approach on the part of the Inspector which he did not and could not reasonably have anticipated? Or is he trying to improve his case subsequently, having been substantially aware of, or alerted to, the key issues at the Inquiry? Did he simply fail to realise that he might lose on an aspect which was fairly and squarely at issue and hence fail to put forward his fall-back case? Those are the sort of questions which can be used to guide a conclusion as to whether the manner in which a particular issue was dealt with at an Inquiry involved a breach of natural justice and was unfair."
Those are all questions that have troubled me because here it was through the claimant's own actions that the situation that it now complain about arose. I have concluded though, that here, where the Inspector raised, as a main issue in the determination of the appeal noise and disturbance and where all noise and disturbance matters were agreed and confirmed as being agreed in evidence on Day 1, as between the principal parties and set down in the statement of common ground and in the agreed conditions, that if the Inspector still had concerns about those issues, that they should have been raised at the public inquiry.
The Inspector accepted that the noise mitigation measures were appropriate to deal with and provided acceptable internal noise limits. Her concerns related to the nature of the noise from the employment uses and associated activity and the possibility of that being annoying and in close proximity to the residential dwellings. Those were matters that she found ultimately would unacceptably impact on the living conditions of future neighbouring residents. Those matters though were, in my judgment, covered in paragraph 3.2 in particular of the noise statement of common ground and indeed in the draft condition 13. The noise report which is referred to in both the condition and the statement of common ground considered industrial noise from nearby premises and provided two alternative solutions to deal with its emission. One of those was a fence around the southern and eastern site boundaries for the provision of sound reduction.
In other words, it did not deal solely with internal noise. Indeed the Inspector appears to recognise that within her own decision letter. The difference is that that condition 13 was agreed as being appropriate by the main parties to deal with all noise issues. It is clear from the evidence submitted and agreed by the Council, that in this case the issue of disturbance was subsumed into the noise issues. There is therefore no additional matter upon which an independent judgment could attach. I conclude therefore that the claimant had a reasonable expectation that upon the conclusion of the statement of common ground, upon confirmation of its status in cross-examination, that noise and disturbance were no longer a main issue at the public inquiry. If it had appeared to the Inspector that she was of a different view, then that was something that she should have made clear to enable the claimant to have a fair crack at the whip. I completely accept, as Miss Davies has submitted, that it is not incumbent on any Inspector to check that all parties are aware of all of the issues at all of the times. In the particular circumstances here, however, as the evidence unfolded and the statement of common ground was produced, it was reasonable to conclude that what had initially been thought of as a main issue was no longer the case. If that was not the position, so far as the Inspector was concerned, it was, in the particular circumstances, something that she should have raised. I conclude, therefore, that it was procedurally unfair for the Inspector to come to the conclusion that she did, without providing the claimant an opportunity to address her concerns.
This is not a case of aesthetic judgment for the Inspector. The circumstances here raised potentially a technical issue relating to tone or quality of noise which could therefore have been addressed by an expert in that field. As a result, I am satisfied that there was a breach of the requirements of natural justice in that the procedure that was adopted was unfair.
In the light of my finding on that ground, it is not necessary for me to deal at any length with the other grounds that were raised. The other grounds relate to the substantive decision but, as I have said, because of my finding in relation to procedural unfairness, I do not find it necessary for me to go into those and to give full reasons for them. Save as to one matter which I just want to make clear, which relates to the issue of conditions.
It is right, as was agreed in argument, that an Inspector is not obliged to cast around for conditions which would suit circumstances. I make it clear that I am certainly not expecting any Inspector to be in that situation. The difference here though is that that condition that was proposed was part of the content of the statement of common ground and therefore was something that should have been taken into account by the Inspector in looking at whether that was adequate to deal with the residual matter of concern to her or whether because of the procedural position, she should have made her position clear, so that the claimants in these proceedings had the opportunity to address that matter. In my judgment, she should have done so, and that ground succeeds.
In those circumstances, the decision letter is quashed on that basis.