Hinckley National Rail Freight Interchange

Tuesday 10th September 2024 Westminster Hall

16:10

[Sir Mark Hendrick (in the Chair)]

We are running a bit late, obviously, because we had a Division earlier.

I will call Alberto Costa to move the motion and then I will call the Minister to respond. There will not be an opportunity for the Member in charge to wind up, as is the convention for 30-minute debates. However, I understand that there may well be one or two interventions.

16:10

[Alberto Costa (South Leicestershire) (Con)]

I beg to move,

That this House has considered the Hinckley National Rail Freight Interchange.

I will call Hinckley National Rail Freight Interchange the HNRFI from now on.

It is a pleasure to serve under your chairmanship, Sir Mark. I begin by welcoming the Minister to her place and I thank Mr Speaker for granting this debate on what is an incredibly important matter, not just for Leicestershire but indeed for our country.

I also thank colleagues who have joined me in Westminster Hall for this important debate, particularly my hon. Friend the Member for Hinckley and Bosworth (Dr Evans), who has worked alongside me on this important matter, because, as we will hear, the proposal would have as great an impact in his constituency as it would in mine.

I start by informing the Minister that I cautiously welcome the news today that the Secretary of State is minded to follow the Planning Inspectorate’s recommendation that she should withhold consent for the proposed HNRFI. The Planning Inspectorate has carefully considered the views of local stakeholders about the HNRFI and recommended against its proposal. I hope the Minister can explain why the Government chose, just a few hours ago, to delay making the final decision until March 2025.

What we really want to ascertain is this: what do the Government hope to achieve by pausing or extending the time available to make this decision? At the outset, I will say that one of my principal asks will be to meet the Minister or any of her colleagues, along with my hon. Friend the Member for Hinckley and Bosworth, to discuss the process of the matter. I appreciate that she cannot in a meeting discuss the specifics of the case, because she has a quasi-judicial role, but we would appreciate a follow-up meeting after this debate to discuss process.

The Planning Inspectorate’s recommendation gives this new Labour Government the opportunity to respond to local people’s concerns and frankly, if I may put things colloquially, calm the nerves of literally thousands of people in and around Leicestershire who will continue to anxiously await confirmation that this wholly inappropriate development will be rejected.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

I, too, have constituents who are grossly concerned about this matter. Although it is, I say cautiously, good news that the decision has been delayed, part of what the Secretary of State seems to be saying is that the impact locally outweighs the benefit to the nation. That is what I myself and all the organisations and local people involved have been saying. Therefore, the question remains as to why a delay will change that position. Does my hon. Friend have any thoughts as to what the reason might be, and on what we can do to get an answer before the end of March?

[Alberto Costa]

My hon. Friend has worked assiduously on this matter over the months—in fact, years—during which this unwelcome proposal has been introduced. In answer to his question, what we can do is say, as I put it to the Minister, Labour are now in charge and I should be very grateful if she would meet both of us, to explain why there has been this decision, which is not the normal decision in these processes. When the Planning Inspectorate makes a recommendation, more often than not the recommendation is approved. And for the Planning Inspectorate to reject a proposal, or consider withholding consent for it, is very rare in such cases; usually the Minister does that. So, a meeting with the Minister might help to answer my hon. Friend’s questions.

The proposed 440-acre site for this development sits between the M69 and the Leicester to Birmingham railway line at the heart of a cluster of rural communities, all of which are within two miles of the site and in some cases less than a mile from its boundary. It is important to mention the communities, which include Aston Flamville, Barwell, Elmesthorpe, Earl Shilton, Sapcote, Stoney Stanton, Sharnford, Burbage, part of Hinckley and the long-established Traveller settlement of Aston Firs. Those communities are within both my South Leicestershire constituency and that of my hon. Friend the Member for Hinckley and Bosworth. So, too, is Burbage common and woods, which is a site of special scientific interest and a beautiful 200-acre area of woodland and grassland that lies in my hon. Friend’s constituency. Many people have their home in this area and would be affected by this development were it to be given consent—of course, we are hoping that it will not be. According to the Stoney Stanton Action Group, over 92,000 people stand to be directly impacted by this development: an enormous number of people.

Under the current system, Liberal Democrat-run Hinckley and Bosworth borough, Conservative-run Blaby district council and Conservative-run Leicestershire county council are statutory consultees in the process. All the stakeholders voiced serious concerns about the HNRFI, as did Labour-led Rugby council, Warwickshire county council and National Highways, which raised concerns over

“missing or deficient transport documents and statements of common ground.”

[Dr Evans]

For me, that was the key deficit when we made our appeal to the inspectorate. It seems like that has been upheld because, although there are the environmental and infrastructure impacts that will hurt our communities, the fundamental premise of what was being put forward was faulty because the information simply was not there and there was a hostile approach from some of those statutory bodies that made getting information out really difficult. Does my hon. Friend believe that that is the reason why this should not go ahead? We cannot even make a judgment call on that basis, and that fits with what the Planning Inspectorate has come out to say—that this should not go ahead.

[Alberto Costa]

I entirely agree with my hon. Friend, and there is no surprise in that—both of us have worked so assiduously over the years on this matter, particularly behind the scenes when we have highlighted to previous Government Ministers the very issues that my hon. Friend has raised. I pay tribute to the many individuals and stakeholders—there are too many to name—who have closely considered this application, raised legitimate concerns on behalf of their communities and meaningfully contributed to the six-month Planning Inspectorate hearing process. I am glad that the Planning Inspectorate has taken on board their views.

I am pleased to name just a couple of local Blaby district councillors who are observing this debate closely —Ben Taylor and Mike Shirley. I put on the record that they have worked tirelessly for their constituents to voice concerns over this proposed development, as has the leadership of Blaby district council. There are many local groups too, such as the Friends of Narborough Station, the Stoney Stanton Action Group, the Save Burbage Common group and Elmesthorpe Stands Together—to name just a few. They have brought their unique expertise and local knowledge to help illustrate why the proposal is wholly inappropriate.

This development was unpopular from the outset; I issued a survey to constituents living within the vicinity. Of nearly 6,000 surveys sent, I had a very high response rate of 27%, and an overwhelming 94.5% of respondents opposed the proposals. Many of the villages closest to the proposed site are rural in nature and there are widespread and legitimate concerns that local country roads will become too busy with traffic, leading to gridlock in village centres and causing a safety concern, as has been correctly highlighted by the Planning Inspectorate. The applicant did not give enough consideration to that issue, in part because of poorly conducted traffic assessments, incorrect modelling and inadequate mitigations.

While the proposed location of HNRFI is in the so-called golden triangle, constituents in Hinckley and Bosworth and in South Leicestershire frequently write to their respective MPs to raise concerns about what is frankly gross overdevelopment of commercial areas. This is not a question of nimbyism. If she looks at the map of this part of Leicestershire, the Minister will see an enormous amount of housing and commercial development. Indeed Magna Park, a huge logistics park —at one time the largest in Europe—is only a few miles away from this proposed development, and it is shortly to regain the title of one of Europe’s largest logistics parks. It is currently doubling in size, with 13.1 million square feet of floor space across 47 enormous warehouses.

Would the Minister agree that over-development, not nimbyism, has gone too far in constituencies such as South Leicestershire and the adjoining area? I politely ask whether the Minister can expand on why the Secretary of State requires an extension when there is overwhelming evidence, as the Planning Inspectorate report seems to suggest, that the development should not go ahead.

[Dr Luke Evans]

I am grateful to my hon. Friend, who has made some fantastic points. One of the key points is the Planning Inspectorate report. Many members of the public felt that the development was a done deal and something being done to them. Can I thank the Planning Inspectorate, which is now minded to refuse consent? Our communities have been heard. We know the deficits, have seen the deficits and have now proved those deficits. I hope that that will go some way towards the Secretary of State making the right decision. But there is anxiety now, given the very unusual delay of several months. Minister, how can we allay fears that this will all be ridden roughshod over, given the unusual nature of what we have in place?

[Alberto Costa]

I entirely agree, which is why it was important to put on the record at the outset that there is still anxiety among thousands of Leicestershire residents, who are asking why consent has not been withheld when the Planning Inspectorate have said it should be.

I would like to assist the Government. The draft national policy statement for national networks states:

“Whilst there is likely to be a natural clustering of SRFI proposals in the distribution heartland of the nation…consideration should be given to proposals for SRFIs in areas where there is currently lesser provision.”

Developers argue that purportedly tens of thousands of jobs can come with SRFIs. Why not put these in areas where there is less provision? Will the Minister outline what consideration the Secretary of State might give to putting SRFIs in areas with less provision?

My hon. Friend the Member for Hinckley and Bosworth and I generally support appropriate commercial developments in our constituencies. However, as we have said, South Leicestershire and that part of Leicestershire as a whole already take a fair share of large scale commercial developments. Indeed there is another unwelcome proposal, put on the table just a few weeks ago, for enormous warehousing to the east of Lutterworth, under what is called Lutterworth East Commercial Area. It is not just the rail freight interchange; I appreciate the Minister does not have responsibility for that which I have just mentioned, but the point I wish to highlight is that there is ongoing gross overdevelopment in that area.

We already have Daventry international rail freight terminal just 18 miles away from the HNRFI site, four national rail hubs within 45 miles and Northampton gateway rail freight interchange just 31 miles away. Having looked at the record, I think it is important to analyse the damage that having a cluster can actually do.

Local planning is one of the most contentious issues that any MP deals with in their casework, as the Minister will understand. It is also the one in which we as MPs have the least power or authority. We have no formal role in the planning decision making—rightly so, because most planning decisions are made by locally elected and locally accountable councillors. However because the Hinckley national rail freight interchange is categorised as a nationally significant infrastructure project, these matters are ultimately decided by the Minister and her team. In other words, unlike most planning decisions, which are approved or rejected at local authority level, these matters ultimately go to senior Ministers to decide.

One of the key national objectives of rail freight interchanges is to get freight off the roads and on to rail tracks, and reap the environmental and cost-saving benefits of doing so. I am sure the Minister and I would agree that that is something to welcome, but it is very important that we do not have the wool pulled over our eyes, and see rail freight interchange proposals as a fig leaf for just another excuse for enormous warehousing.

I want to quote Dame Andrea Leadsom, the former MP for South Northamptonshire. She stood in this Chamber less than a year ago and said:

“SEGRO took over the development of the site and—lo and behold—as the site neared completion last year, it applied for a development consent order waiver, asking the Department for Transport to overturn the condition requiring the rail link to be completed so it could start to fill up its warehouses and flood local roads with HGVs even before the rail link was established.”

She added:

“It seems clear to me that this project was always about forcing more warehousing into the heart of England to take advantage of motorway access from south Northamptonshire and never about making it easier to move freight off the road and on to the rail network.”—[Official Report, 17 October 2023; Vol. 738, c. 22WH.]

I say to the Minister that the case of the HNRFI is the same.

What would I suggest that the new Labour Government could proactively look at? The issue is the lack of a proper framework policy, which colleagues and I have raised many times before. Such a policy would help the Labour Government to identify appropriate sites where these forms of logistics parks should be located.

The first area that a national framework should address is site selection. The current nationally significant infrastructure project regime is developer-led, with developers responsible for justifying their site choices. At present, there is only general guidance in the national networks national policy statement, with no formal national level framework guiding the Government or local authorities on where SRFIs should be located.

A national framework could assist the Government by helping them to prescribe specific location criteria for SRFIs, such as proximity to major freight corridors and alignment with regional logistics hubs. Such proactive planning could avoid unsuitable locations and, importantly, minimise planning disputes from the outset. That could help ensure that SRFI proposals are not only appropriately located but are also in line with whatever the Labour Government’s policy would be.

I would also welcome measures that ensure that SRFIs actually serve their purpose and handle sufficient rail traffic, rather than just becoming another excuse for gargantuan logistics parks. That would ensure that freight really does end up off the road and on rail, while providing clear expectations for developers, which would, in turn, promote confidence from stakeholders.

The most critical point I want to address is strategic co-ordination. As it stands, the nationally significant infrastructure projects process is largely reactive, led by individual developer proposals, and reviewed on a case-by-case basis. While there are broad goals to shift freight from road to rail, which I support, there is no comprehensive national strategy that specifically addresses the planning of SRFIs. That results in inefficiencies, regional imbalances and in our particular case, not nimbyism, but the grotesque—I choose the word carefully —overconcentration of SRFIs and enormous logistics housing in our region. With a national framework drafted by the Labour Government, we could ensure that logistics facilities are distributed more evenly across the country, balancing the benefits and impacts across the nation.

In summary, while the UK’s current NSIP regime provides a structured process for approving SRFIs, it remains reactive, fragmented and developer-driven. A national framework would change that by introducing greater consistency, strategic oversight and national level co-ordination. I think that is exactly what the Labour party said during the recent general election campaign that it wants to do when it comes to planning. That is the future I propose that this Government pursue.

I hope that the Minister, along with her ministerial colleagues, takes the opportunity in her new role to come up with a national freight strategy, so that the whole country can share the burden and benefit of these developments and so that local communities can buy into these developments and not have them forced upon them. I urge the Minister and her team to speak carefully with the Secretary of State to follow the Planning Inspectorate’s recommendation to withhold consent to the Hinckley national rail freight interchange, and to make the decision in a timely manner.

Only by doing so will the Labour Government show the people of Leicestershire and the surrounding area that they really do listen on planning and that they do have a plan to share these nationally significant projects across the country. At a local level, that would help alleviate any anxiety that my constituents and those of my hon. Friend the Member for Hinckley and Bosworth have over this proposal.

16:30

[The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)]

It is a pleasure to serve with you in the Chair, Sir Mark. I begin by congratulating the hon. Member for South Leicestershire (Alberto Costa) on securing today’s debate. I would also like to thank him and others for their engagement on this matter. The hon. Member for Hinckley and Bosworth (Dr Evans) is temporarily not in the room. I am aware that the hon. Member for South Leicestershire wrote to my Department and has previously tabled other debates to express concerns about this scheme, which is a nationally significant rail freight interchange infrastructure project, located partly in his constituency in Leicestershire.

[Sir Mark Hendrick (in the Chair)]

I should let the Minister know that the Member concerned did apologise that he had to leave urgently.

[Lilian Greenwood]

Absolutely. I have also noted the relevant contributions made by the hon. Member for South Leicestershire in the King’s Speech debate on planning, the green belt and rural affairs on 19 July this year and on the Passenger Railway Services (Public Ownership) Bill debate on 29 July. I am also aware that the hon. Member participated in the examination of the application as an interested party. I thank him for the contributions he has made in that respect.

The concerns that the hon. Member has raised include the impact due to the proximity of the application site on the local Fosse villages of Elmesthorpe, Stoney Stanton, Sapcote, Sharnford, Aston Flamville, Potters Marston, Croft, Huncote, Thurlaston and Wigston Parva; impacts from an increase in heavy goods vehicles on the local road network; the lack of a national strategy for the location of logistics parks; the proximity of other rail freight interchanges; public engagement on the application; the impact and delays at Narborough railway station and level crossing; impacts on Burbage common and woods nature reserve, located in the neighbouring Hinckley and Bosworth constituency; and the impact on local amenities as a result of increased job opportunities. I am also aware of the petition which the hon. Member presented to Parliament in October last year on behalf of local residents of the constituency of South Leicestershire. Both he and the hon. Member for Hinckley and Bosworth have again represented their constituents’ concerns very effectively today.

The application for the Hinckley national rail freight interchange development consent order was made under the Planning Act 2008. Under that Act, the Secretary of State for Transport has a quasi-judicial role in issuing decisions of applications for development consent orders for strategic rail freight interchanges, provided that they meet certain threshold conditions set out in the Act. Following the examination of the application by the Planning Inspectorate’s examining authority, the Secretary of State received the report containing its recommendation on 10 June this year. As the hon. Member for South Leicestershire acknowledged, the Secretary of State issued a “minded to refuse” letter this morning, having carefully considered the examining authority’s report. Her letter sets out that, while she is minded to agree with the examining authority’s recommendation to refuse the application, she first wishes to gather further information on certain matters. The Secretary of State requires further information on the safety concerns raised in respect of M1 junction 21 and M69 junction 3, and the lack of adequate transport modelling at that junction; the increased highway safety risk at Sapcote identified by the examining authority; the concerns raised by the examining authority on the impact on Narborough level crossing, particularly on people who might find using a stepped footbridge difficult; and any measures that might avoid or mitigate the potential harm identified by the examining authority to the occupiers of the Aston Firs Travellers’ site.

The Secretary of State’s letter also invites comments on the revised sustainable transport strategy, the suggested amendments to the heavy goods vehicles route and the management plan strategy, and specific submissions in respect of noise impacts referred to in her letter. As the hon. Member for South Leicestershire said, a written ministerial statement was laid in Parliament this morning to extend the statutory deadline for a decision on this application to 10 March 2025. I appreciate that the extension is unwelcome to him and his constituents, but my understanding is that this is not particularly unusual.

The extension to the deadline is required to allow for the submission of further information on the issues I have just mentioned before the Secretary of State takes a final decision on the application. The extension will also allow time for all interested parties to comment on that further information. The final decision will be taken as soon as possible, but it is important to allow time for those issues to be properly considered by all parties. The extension of the deadline means that the application remains a live planning application. I am sure that the hon. Member for South Leicestershire understands that it would not be appropriate for me to comment on the merits or otherwise of the application while it remains live.

It would also not be appropriate at this time for me to elaborate on or add to the reasons set out by the Secretary of State in her letter. That is because, as the hon. Member for South Leicestershire acknowledged, the decisions by the Secretary of State on applications for development consent orders are quasi-judicial, and the decision is a matter for the Secretary of State alone. It would not be appropriate for me to take part in any discussion of the pros and cons of the proposal. I know the hon. Member understands that we must ensure that the process is correctly followed and remains fair to all parties.

The examining authority’s recommendation report, which was published today alongside the letter from the Secretary of State, covers many of the concerns expressed by the hon. Member for South Leicestershire, and I encourage him and his constituents to read the report alongside the letter from the Secretary of State—I am sure he has already done so. Should he or his constituents have any further issues they would like to raise, I encourage them to write formally to the Department when invited, as part of the next-steps process for the application. The process going forward is outlined in the letter from the Secretary of State. I am loth to decline a meeting with hon. Members, but it could be perceived as bias if the Department meets objectors, but not the applicant and supporters. I understand that we have declined requests for other meetings.

I highlight the need for nationally significant strategic rail freight projects more generally. The Government’s view is that the economic and environmental potential of rail freight is significant, and they are fully committed to supporting its growth. Under its plans to deliver the biggest overhaul of the railways in a generation, Great British Railways will have a duty and target to grow the movement of freight on our railways. I am sure it will be interested in the comments that the hon. Member for South Leicestershire made on ways that might be done.

The Government support the development of an expanded network of SRFIs to facilitate the modal shift of freight from road to rail. Rail freight offers substantial economic and environmental benefits, as well as helping to reduce congestion on our roads and cost to industry. Strategic rail freight interchange projects are a key element in reducing the costs of moving more freight by rail, enabling goods to be efficiently transferred between transport modes, which is important because many rail freight movements cannot provide a full end-to-end journey.

The sector also delivers economic and social benefits through cost savings to industry, creating employment and reducing congestion. Industry estimates that a single rail freight service can remove up to 129 heavy goods vehicle movements from our roads. Moving goods by rail results in about 7 million fewer lorry journeys each year. In 2018-19, it is estimated that rail freight contributed £2.45 billion in economic and social benefits to the country, 90% of which were likely to accrue to freight customers and wider society outside London and the south-east.

Rail freight also offers benefits to the environment. A diesel-hauled rail freight service produces 76% less carbon dioxide per tonne of kilometre moved compared with road. Recent improvements using longer, heavier trains and alternative low-carbon fuels such as hydrotreated vegetable oil are reducing rail freight’s carbon footprint even further, making it one of the most carbon-efficient ways to move goods over long distances.

Having said all that, it is of course important that every application for a new strategic rail freight interchange is carefully assessed to ensure that its benefits outweigh its impacts, including those on the local environment that the hon. Member for South Leicestershire described. I know, however, from his contributions to the debates on the Passenger Railway Services (Public Ownership) Bill that he does not oppose rail freight interchanges per se. He made that point again today in calling for a national strategy.

Finally, I take the opportunity to reassure the hon. Member that the Secretary of State, in making a decision, will take into consideration the content of the examining authority’s report, the relevant policies, responses to her consultations and any representations received after the close of the examination. I assure the hon. Member that she will listen to the views of him and his constituents. I thank him and the hon. Member for Hinckley and Bosworth for the opportunity to debate this matter today.

Question put and agreed to.