Judges rule bid to scrap homes target unlawful

Housing developer Cala Homes (South) Ltd had argued Mr Pickles was wrongly seeking to revoke regional planning strategies through discretionary powers.

And yesterday Mr Justice Sales, sitting in London, ruled the Cala Homes argument was "well founded".

Overturning Mr Pickles' decision, the judge said: "If Parliament intended to create such a power for the secretary of state – something akin to a Henry VIII clause, since the practical effect of it would be to grant the Secretary of State power to denude primary legislation of any practical effect, without having to seek the approval of Parliament for such a course by passing further legislation – it would in my opinion undoubtedly have used much clearer language to achieve that effect and would have given the provision far greater prominence."

Government sources indicated yesterday there would be no appeal against the judge's ruling as it would not be a prudent use of taxpayers' money, given new legislation is on the way to allow the coalition to achieve its objectives, for which, it argues, it has a democratic mandate.

Planning lawyers warned it could have a crucial impact on housing and development projects across England but Communities and Local Government Minister Bob Neill said it would change "very little".

"Later this month we will be introducing the Localism Bill to Parliament, which will sweep away the controversial regional strategies," he added. "The Government remains firmly resolved to scrap this layer of confusing red tape. Instead, we will work with local communities to build more homes."

The court heard Mr Pickles decided in July to revoke the regional strategies, which include house building targets, introduced under the 2009 Local Democracy, Economic Development and Construction Act.

James Eadie QC, who represented the Communities Secretary, argued that Mr Pickles had power to revoke the entire regional strategy tier of planning policy and was entitled to do so.

Mr Eadie said regional strategies were made by regional assemblies, an undemocratic tier of regional government, and undermined directly-elected local authorities. The strategies themselves were bureaucratic and unnecessary and were to be repealed by the Decentralisation and Localism Bill, expected to receive the royal assent by July 2011.

Peter Village QC, appearing for Cala, argued Mr Pickles' decision "struck at the heart of parliamentary democracy" and frustrated the policy of the 2009 Act.

Allowing Cala's legal challenge, Mr Justice Sales said its arguments were "well founded".

He ruled there was no "sufficient indication" in the 2009 Act "that Parliament intended to reserve to the Secretary of State a power to set that whole elaborate structure (of regional strategies) at nought, if in his opinion, it was expedient or necessary to do so because it was not operating in the public interest."

Mr Village had accused Mr Pickles of "unlawfully misusing his powers in pursuing a policy of what is known as localism or, more aptly, parochialism".

He told the court Cala Homes, like many other housebuilders, had ordered its affairs according to existing law, in which regional strategies formed a key part. It has a pending appeal against Winchester City Council's failure to determine an application for "a significant number of houses" which would fulfil a "crucial part" of the Regional Spatial Strategy for the South East of England.

Mr Pickles' decision was "highly prejudicial" as it meant the Winchester appeal for Barton Farm would have to be determined against a new background.

The development is said to be the Scottish developer's largest project in England, but local councillors have twice blocked the scheme.