Planning and Infrastructure Bill (First sitting)

(Limited Text - Ministerial Extracts only)

Committee stage
Thursday 24th April 2025 Public Bill Committees

[Paul Holmes (Hamble Valley) (Con)]

Q Sir John and Mr Owen, thank you very much for coming this morning. As you know, this is a huge piece of legislation, and we want to scrutinise it to the best of our ability. Thank you for the work that you do in your occupations.

We remain consistent in our concern about democratic accountability and processes, and about the balance between speeding up planning delivery and retaining the power of local people to make differences and have their say on nationally important critical infrastructure. First, do you think that these proposals strike the right balance between speeding up the delivery of national infrastructure projects and public accountability? Do you think that democratic and public accountability will remain at the heart of the delivery of that national infrastructure under the Bill’s proposals?

Sir John Armitt: Yes. I think this is a reasonable attempt to address the fundamental question of getting the balance right between taking forward the critical national infrastructure that the country needs and local interest. Consultation has always been an essential part of that, and the ability of people to express their views is important. Having said that, it is and will continue to be a very complex area. People on the receiving end of new infrastructure will naturally seek every mechanism in their legal right to challenge where they feel that they will be adversely affected. The Bill seeks to set out a number of remedies for that, and I think one could reasonably expect to see some acceleration, but just how much acceleration there will be in the process only time will tell.

Robbie Owen: I broadly agree with that; I think the Bill largely strikes the right balance. Let us not forget that even in the light of the amendments tabled by the Minister yesterday in relation to consultation, there will still be an extensive amount of consultation required—justifiably so—in relation to these projects, involving, among others, the local community. The examination of applications for consent takes place over a maximum of six months, which is a very long time, within which the local community can express their views. The Government are retaining the ability for local impact reports to be produced, which I think is important. I have no fundamental concern that democratic and public accountability will be lost by these changes. I actually think they do not quite go far enough in some respects, but we may come on to that later.

[The Minister for Housing and Planning (Matthew Pennycook)]

Q Thank you both for your time this morning. I also wanted to ask you about the nationally significant infrastructure projects regime. As you know, the objective of the Bill in this area—chapter 1 of part 1—is to provide for a more certain regime, but also to speed up the process through which applications are taken, because we have seen, as you are both aware, a deterioration in the performance of the system over recent years. We have done a huge amount of consultation on this legislation—statutory consultations, working papers, calls for evidence—but we are still very much in listening mode on whether any further changes are required. I want to get your views, picking up on the comments that you just made. In terms of the critical barriers to bringing forward major economic infrastructure, where do you think the Bill gets things right, and where does it not go far enough?

Sir John Armitt: The Bill seeks, to a large extent, to provide a regime of compensation to offset where people are going to be affected. That, in a sense, is no different from what we have seen in the housing sector in section 106, for example, for a very long time. The real challenge here is the ability of the process to actually slow things down. We know that judicial review is one of the big difficulties in this area. You could argue that the recent recommendations made for judicial review do not go that far. The only way in which it can be held back is where the court decides that the issue being raised is, perhaps not frivolous, but immaterial. But I would imagine that the nature of the legal system is such that people will find ways around that.

Judicial review constantly acts as a brake, and influences those who are developing projects to try to cross that bridge before they get there: you put in more mitigation than ideally you would wish, which raises the cost, and you potentially finish up with a more expensive project than ideally you would have had. That is the nature of people trying to second-guess what is going to be raised and how the judicial review will be handled.

I am not sure that the recommendations will go far enough to have a serious impact on that aspect, which is one of the central aspects of what has been holding up these schemes quite significantly. Each year of judicial review is likely to potentially add a year to the process, and that is why it is difficult to see that these changes will benefit the overall process by more than six to 12 months, at the end of the day. Robbie and I were talking about this before we came in; he is more of an expert in it, so I will turn to him for any other observations.

Robbie Owen: Minister, I absolutely support what is already in the Bill. I think that every provision on national infrastructure planning is appropriate, including what I hope will be added to the Bill through the amendments that you tabled yesterday, in relation to pre-application consultation and some other measures. As you say, those are all good measures that have followed extensive consultation and engagement.

There are two areas where I believe the Bill needs to go further, be bolder and be strengthened. The first relates to the further streamlining of the development consent order process. That should focus on allowing the standard process to be varied, on a case-by-case basis, where there is justification for doing so. That was trailed in your planning working paper in January; I encourage you and your officials to have another look at that, because there is a justification for giving some degree of flexibility to reflect the nature and requirements of individual projects and how the standard process might need to be adapted to them.

Secondly, we need to look again at the ability of the DCO process to be a one-stop shop for all the consents you need for construction of these big projects—that was the original intention back in 2008. All the discussions around that have yet to fully come to a conclusion. I note the review by Dan Corry, published a couple of weeks ago, but I do not think that it provides a full answer to allowing development consent orders to do more than they have been doing in practice, in terms of all these subsidiary consents, which, beyond the development consent order itself, are quite important for some of these big projects.

The other area where the Bill should and could go further relates to the whole area of judicial review. The changes that were announced in January, following the call for evidence off the back of the Banner review, are not particularly significant. They are really quite modest, and relate largely to the permission stage of judicial review. Approximately 70% of judicial review applications get permission and go forward, therefore we need to focus beyond the permission stage.

There are two other areas where the Bill could make some worthwhile changes. The first relates to the interaction between judicial review and national policy statements. As you will know, national policy statements are approved by Parliament, and the Bill contains some proposals to change that process. It has always struck me as strange that national policy statements can nevertheless still be, and are, judicially reviewed.

The final point on judicial review is that Parliament should be able, if it wishes, to use a simple one-clause Bill to confirm decisions to give development consent for projects of a critical national priority. This used to be the case: we used to have lots of provisional order confirmation Bills. I think that is a very good way for Parliament, where it wishes, to express its support for a big, critical project. That could easily be done through some amendments to the Bill.

[The Chair]

I remind everybody that we only have another 15 minutes for this panel, so please be as succinct as possible.

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[Paul Holmes]

Just for the record, that is not my view. There are some concerns. I was not castigating you.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

Q Good afternoon. Thank you for joining us. As a Government we have set out the ambitious clean power by 2030 plan, which involves significant roll-out of renewables. Key to that will be storage and our ambition to build the first long-duration storage in 40 years in this country. I would like to ask Beatrice and Ofgem, what is your sense of the importance of the mechanisms for doing that, particularly the cap and floor financing scheme; and how important is long-duration storage to the energy mix we are trying to build?

Beatrice Filkin: As you said yourself, Minister, we have not seen any large scale, long-duration energy storage built in this country for decades now. We know that the market is not willing to take on those risks at the moment and it is absolutely right that the Government are instructing us through this Bill to expand the regimes and protections.

We support the proposed introduction of a cap and floor regime for long-duration storage. We have seen NESO’s advice to you as part of the development of the Clean Power 2030 Action Plan—that increasing the amount of flexible storage on the system is critical to getting through your clean power targets. We are very keen to be part of supporting that. We think the cap and floor regime has proved its worth over the last decade or so through interconnectors, and obviously, we are adjusting it now with input from a wide range of stakeholders to make it appropriate for the long-duration storage schemes.

[Michael Shanks]

Q Christianna, this Bill has a significant amount of planning reform in England and Wales, but the key element in the energy space in chapter 2 is around the reforms to Scottish consenting. We have worked very closely with the Scottish Government to update the Electricity Act 1989. Can you give any sort of sense, from your extensive experience in this in Scotland, of how much those changes are necessary, or perhaps how much of the development is being held back by that planning reform not being updated at the moment?

Christianna Logan: We really welcome the powers in the Bill that create that framework to increase the timeliness and effectiveness of consenting in Scotland, particularly around introducing timescales for determinations and replacing automatic trigger of public local inquiries with a reporter-led process.

Public inquiries are one of the main causes of delay to consent decisions in Scotland, with the impact and cost of that borne ultimately by bill payers and local communities through local authority investment. We believe that to make the powers in this Bill effective in practice, the secondary legislation will be critical. We ask that the secondary legislation providing the details of implementation is delivered in parallel with the Bill, so that it can be laid as soon as decisions are made, and that within determination, timelines are set at 12 months to make sure that we can get timely delivery.

We welcome all the joint working between this Government and the Scottish Government, and we would like to see that continue for that secondary legislation. We welcome the Scottish Government's commitment to a 12-month determination for projects, but we are not yet seeing that in practice. For example, our Sky project, which is both an energy security and decarbonisation project, is still awaiting determination more than two and a half years on. That is why the ask is so important.

[Michael Shanks]

Finally, Dhara, picking up on the questions on connections reform and the wider push in the Bill on how we build network infrastructure more quickly and the ambition of that, how critical is it to the broader energy space—particularly on the questions of energy security, bringing down bills and the wider space on our energy mix going forward—that we build more network infrastructure and get the grid working? How critical is that aspect to delivering in the 2020s, and in the 2030s in particular, to meet the demand that we are going to see, and the Government’s other objective of bringing down bills?

Dhara Vyas: That is absolutely the right question to be asking, because we will not achieve any of it unless we unblock the issues we are seeing within the infrastructure space. The reality is that with these so-called zombie projects, at least half of them are ready to move on to the next stage. In large part, that is down to the work that has been happening as part of the connections reform project. It is really important that we keep on moving with the momentum we have right now, because gaining planning permission and making progress through the new milestones that the National Energy System Operator has set out is the next big challenge for us.

We are in a really difficult position right now. Bills and debt owed by customers to energy suppliers are at a record high. We are still really feeling and living in the long shadow of the cost of living crisis, which was partly down to the energy security crisis following the illegal invasion of Ukraine. Investing in an abundance of clean power will be completely pointless unless we have the infrastructure to move it around the country, and unless we invest in clean power, we will not ultimately bring down bills to the extent that we need to. The other part of that is demand. We will see demand increase by at least sixfold. We are going to have electrification of our homes and our transport, which brings us back full circle to the need to be able to move the electricity around.

[John Grady]

Q I have a question for Christianna, Beatrice and Charlotte. To bring this to life, I am a Scottish MP, so if I am building a set of offshore wind farms in the north of Scotland, I also need to build transmission infrastructure from Scotland down to England. The holdouts of this involve connection queues, planning delays in Scotland and planning delays in England. The Bill, with the reforms in England and Scotland, seeks to reduce those delays. I want to unpick what that means for my constituents in terms of jobs and investment. How much money will be invested in the grid in Scotland over the next five to 10 years, because this Bill helps speed that investment up?

Christianna Logan: Our programme of projects to deliver for 2030 is a £22 billion investment. It is the biggest investment that we have seen in the north of Scotland probably since the second world war, so it is really significantyou’re your constituents. Our colleagues in ScottishPower have their investments in your area as well. Alongside that, there is a significant number of jobs—we expect around 6,000 jobs enabled through our investments in Scotland specifically. Just this year, we will be recruiting another 600 people into SSEN transmission to help with this transformation of our grid network.

All of that, as you say, is dependent on us getting consent to progress all these projects and the necessary regulatory approvals for the investments. We have been working very closely with Government and Ofgem on the reforms, and we believe that the proposals put forward in the Bill will take us forward in that regard. As I said earlier, the secondary legislation and the work with the Scottish Government will be critical to capturing those benefits.

--- Later in debate ---

[Paul Holmes]

Q Preparatory work on EDPs. Where are you on that?

Marian Spain: Work is under way now. As I mentioned earlier, we are doing two main things. We are thinking about the first two environmental delivery plans. This is an opportunity to mention that they are almost certain to be improving the existing nutrient mitigation scheme and turning that into a full-blown EDP and NRF system, and also consolidating the district level licensing scheme—the scheme for great crested newts that we set up five or six years ago. Those can be relatively quick wins, done within this calendar year we believe.

We are then looking at what the next EDPs are likely to be. That conversation is live at the moment with our colleagues. We are looking at three issues. We are looking at where development will most need it. Where are the development pressures? That might be major infrastructure or the new towns. Where are the places that are going to most need it? Where is it going to be most feasible—where do we believe we have sufficient evidence to have robust plans that will work and where is the meeting of those two points? That thinking about the EDPs is under way.

We are also using this year’s Government investment to set up the systems and the digital systems we will need. The systems developers will need to test their impact and decide if they want to participate. That is the systems we will use to handle the money and to do the essential transparency reporting and monitoring. That will be in place this financial year.

[Matthew Pennycook]

Q Marian, thank you for giving your time today and for the work that you and the organisation are doing to ensure that the new system will be operational shortly after the Bill gets Royal Assent.

Can I get you on the record in terms of the objectives of part 3 of the Bill? Is Natural England confident that the nature restoration fund will deliver better outcomes for the environment than the status quo? Specifically on the powers that will be available to Natural England in bringing forth EDPs, do you think the Bill gives you enough flexibility to consider a wide enough range of conservation measures to deliver those plans?

Marian Spain: We are confident that this will be an improvement on the current system. We have already run versions of the nature recovery fund for recreational impact, for great crested newts and for nutrient mitigation, so we have seen enough that these schemes can work. We are confident that they will work.

We are also clear that it is an improvement because at the moment the current arrangements are sub-optimal for developers and for nature. We see that developers are investing disproportionate amounts of time on data gathering that could be better done once and centrally. We see that investment in mitigation and compensation in the sequential scheme slows things down and does not always create the biggest impact. We also see that there is less transparency than the public and indeed developers themselves sometimes want about how the money is being spent. We are confident this will be an improvement.

The other important point to note is that many of the pressures nature is facing now, particularly water quality, air quality and recreation, are diffuse. They are not specific. They are widespread. They are cumulative. It is impossible for an individual developer to adequately consider, mitigate and compensate. We need to do that at much more of a scale. We think the measures in the Bill and the associated measures of having more robust spatial development strategies that look at nature and development together, and of having the plan up front that tells us what the impact will be and how to mitigate it, and then the fund to allow that discharge, is a major step forward.

It is unknown—well, it is not unknown, forgive me. It is a risk, of course, and people will be concerned that it will not be regressive and that it will not be a step back, but we think there are enough measures in the Bill that are clear that this is about improvements to nature—maintaining the current protections, but also allowing development to make its adequate contribution to restoration of nature.

[Olly Glover (Didcot and Wantage) (LD)]

Q You mentioned that you have already started some work on environmental delivery plans. Are you able to say a little more about how long you think individual plans will take to develop and come into force, and a little more on what you said about the criteria that you will use to decide where and what sort of areas will need them?

Marian Spain: I cannot yet give you specifics. This is thinking that is happening now. We have not yet made any decisions. I have mentioned that we are looking at feasibility, demand, and ability to deliver. I think that where we will look next, the areas that are at the top of our minds in our conversations with fellow officials, will be air quality; the impact of nitrogen deposition on nature, which we see as a major risk; water quality; water quantity —the availability of water for both nature and development is high on the list; and a certain number of protected species. The commoner species of bats are likely to be able to benefit from the measures—similar measures as for newts. It is not yet all protected species, and we do not yet know which, so I cannot give you a definitive answer. I think it will be the next financial year when we start to roll out those further plans.

It is also quite hard for me to give you any certainty about exactly how long the plans will take, because they will vary, of course. Some of them will be geographically defined; some will be subject defined; and some might be species defined. They will be varied and mixed. But we are conscious that we need to move quickly on this, because we need to give developers a better solution than they currently have.