§8. Implications for Local Authorities and for central government
This section is addressed to two readers in turn: first the authority reading its own number, then the government deciding what, if anything, to do about the pattern. The order is deliberate. The differential is built from each borough's own decisions, and the first claim on its meaning belongs to the borough.
8.1 Three readings of a negative differential
A borough sitting below expectation has at least three accounts available to it. They are not mutually exclusive, the data in this essay cannot apportion them for any individual Authority, and each carries a different implication but each is testable against evidence the borough already holds.
The first is deliberate, plan-led restraint. A borough whose adopted plan expresses a settled, democratically endorsed position on dispersed intensification and which applies that position consistently will sit below the London average by choice. That is not the development management function failing but rather the function doing what the plan instructs. The test of this reading is coherence, and §7 sets it out: refusals that cite the plan's policies accurately, fall consistently on the typologies the plan constrains, and are broadly upheld by Inspectors on appeal. A borough that passes that test holds a Category 1 position: a lawful, defensible differential whose proper forum is plan examination, not the development management statistics.
The second is caseload quality on the dimensions the model cannot see. The differential controls for four observable characteristics; it is blind to preparation. A borough receiving systematically less-prepared applications (thinner supporting information, less pre-application engagement, less experienced agents) will sit below expectation without deciding any harder than its peers. The test of this reading is in the refusal record: a rising share of insufficient-information refusals, validation failures, and schemes lost on matters a competent submission would have resolved before it arrived.
The third is capacity. A development management service under sustained resourcing pressure can drift below expectation without any policy choice at all: less pre-application capacity to repair weak schemes before submission, less officer time to negotiate amendments rather than refuse, more decisions taken on the papers as received. The test here is procedural: determination times, amendment rates, the balance of negotiated approvals against first-pass refusals.
An Authority that can say which of these accounts, in what proportion, explains its own number has already met the standard §11 proposes (explained variation) and met it on its own terms.
8.2 What the differential offers a borough
Used internally, the differential is management information of a kind no published statistic currently provides: a mix-adjusted account of the authority's own decision record, benchmarked against what its caseload would have produced under London-average behaviour. Four uses follow directly. In the Authority Monitoring Report, it gives the service a like-for-like measure to sit alongside the raw approval rate and a defensible answer to the member, journalist or Inspector who quotes the raw rate without the caseload behind it. In local plan evidence, the typology-level patterns beneath the headline show where the adopted plan is being applied as intended and where outcomes have drifted from the position the plan expresses. This signals evidence of consistency for examination, or early warning of a gap between the plan as written and the plan as applied. In member briefings, the three readings above give officers a vocabulary for the borough's position that neither concedes failure nor refuses the question. And at appeal, an Authority whose refusals are consistent with its differential, its plan and its Inspectorate record can evidence a coherent decision posture rather than defending each case as though it stood alone.
8.3 The finding that protects the restrictive boroughs
The most protective finding in this dataset belongs to the hardest boroughs: their refusals are upheld on appeal. Across the matched appeal cohort (§9.6), the most restrictive boroughs are overturned at roughly sixteen per cent of decided appeals, which is below the permissive boroughs' twenty-four, and below the national minor-residential rate. Whatever else a persistent negative differential means, in these boroughs it does not mean capricious decision-making that the Inspectorate corrects on review; it is consistent with a coherent position, consistently applied, that survives independent scrutiny. An Authority confident in the first reading above will find its strongest evidence here, and is entitled to use it. The usual caveat travels with the number: only around six per cent of refusals are appealed, so the sample is selected by applicant judgement but the cases that reach the Inspectorate are those applicants judged most vulnerable to challenge, which makes the upheld share harder, not easier, to dismiss.
8.4 The burden runs both ways
The cost asymmetry this essay describes is usually read from the applicant's side: preparation pays least where values are lowest, so the least-prepared applications concentrate in the most affordable boroughs. Read from the Authority's side of the counter, the same mechanism is a workload statement. The development management teams serving the most affordable boroughs are processing a rising share of applications that arrive unready; the insufficient-information trend of §6 is its visible edge. That work carries officer hours, a negotiation burden and appeal exposure, typically on thinner resourcing than their inner-London counterparts. An Authority in this position is not the author of the asymmetry but one of the parties carrying its cost. A policy response that treats the asymmetry solely as an applicant grievance has misread where the burden falls — which is why the proportionality test proposed at 8.11 is as much a protection for the boroughs asked to administer each new requirement as for the applicants asked to meet it.
8.5 Access to the underlying evidence
The number in this essay should not be the last word on any authority. Any London borough wishing to interrogate its own differential may request its case-level extract and the full methodology annexe, without charge. The differential is offered as the beginning of an account each authority can give in its own terms, on its own evidence, not as a verdict delivered from outside it.
The remainder of this section turns from the authority reading its own number to central government and the GLA deciding what, if anything, the pattern asks of them. For that reader, the differential works as a diagnostic rather than an accusation, and the policy frame it points to is a transparency regime rather than a central-override one.
8.6 Treat the outcome differential as a published transparency instrument
Calculate annually, publish, and read alongside local plans. Its function is as a standing question put to each authority: your caseload predicted X; you produced Y; account for the difference. The point of publication is not to shame boroughs but to give the democratic process the information it needs to mediate between local preference and strategic policy.
To make that concrete: publish the differential each year alongside the borough's small-sites monitoring, and ask each authority to attach a one-page note answering three questions. (1) Which quadrant of the delivery matrix are we in — what is our small-sites posture, and what is our delivery record? (2) What explains our position — caseload, viability, land supply, decision posture, or some mix? (3) What, if anything, are we doing to change it? This is deliberately not a performance league table, and it should not be administered as one: a borough in the "restrictive and productive" quadrant may give a complete and creditable answer. It is a standing prompt for democratic accountability, so that a borough's own voters can see the trade-off it is making between local character and city-wide supply, and judge it on terms the borough itself has set out.
8.7 Use the Mayor's s.24(7) conformity opinion as the principal lever
The Mayor's call-in and direction-to-refuse powers, expanded by Potential Strategic Importance (PSI) Category 3J, cover 50+ home schemes; the 50-home floor deliberately excludes the 1–9 unit tier this essay tracks. The s.24(7) conformity opinion is the appropriate instrument where a borough's adopted plan has materially diverged from London Plan Policies H2 and D3. It is not, on this evidence, an instrument that should be used as a routine override of borough discretion in the absence of policy divergence.
8.8 Let appeal outcomes carry their full evidential weight
If a meaningful share of the differential is officer or member risk-aversion, the cost of unjustified refusal must rise on appeal. The practical reform is not legislative but it is aimed at transparency. Government should require boroughs to publish, alongside their annual monitoring reports, the proportion of their small-site refusals overturned at appeal and the costs awarded against them.
8.9 Reframe affordability targets around the supply geography
This is a policy judgement, not a finding the data dictates. If raising housing supply in the most affordable boroughs is a policy objective, as capital-wide affordability ambitions imply, then persistent negative differentials in exactly those boroughs deserve particular scrutiny: on this evidence, the places where homes are most affordable to deliver are among those where they are hardest to consent relative to caseload. Where a borough's local plan has explicitly chosen that outcome, the mediation runs through s.24(7); where it has not, the gap is at least a question the borough should be asked to answer. The data establishes the gap; whether it should concern us is a judgement about what the planning system is for.
8.10 Learn from the affordable-and-permissive boroughs
Bexley, Sutton, and Enfield produce constructive small-sites outcomes at the most affordable end of the market. The Bexley–Havering forty-point gap at identical price points is the single most actionable data point. It should be read as evidence that the cross-section is not destiny, rather than as grounds for criticising Havering.
8.11 Act on the regressive cost asymmetry
Using Land Registry transaction prices, the preparation cost burden on a 5-unit scheme already varies roughly twenty-fold across London with ~1% of residual in K&C and Westminster to ~21% in Croydon. It is now a measured gradient rather than a mechanism still to be tested. Government should commission a cumulative-cost impact assessment of small-site validation requirements, expressed as a percentage of expected residual value across borough price quartiles, and publish it. The regressive outcome of additional validation requirements would then be established.
The same logic should run forward as well as back. Every new validation mandate on small sites, biodiversity net gain is the live example, should pass a small-sites proportionality test before adoption: model the preparation cost the mandate imposes as a percentage of expected residual value across borough price quartiles, and check whether it screens out a materially larger share of would-be applicants at the affordable end than at the expensive end. A requirement that costs a Westminster scheme a deductible afternoon and a Havering scheme a fifth of its residual is not neutral, however neutral it looks on the face of the regulation. The test does not pre-empt the policy; it makes the distributional shape visible before, rather than after, it is imposed.