Planning and Infrastructure Bill (Fifth sitting)

(Limited Text - Ministerial Extracts only)

Tuesday 13th May 2025 Public Bill Committees

[The Chair]

I remind Members to send their speaking notes by email to [e-mail] and to switch electronic devices to silent. Tea and coffee are not allowed during sittings. It will probably get very hot, so if you would like to take off some of your layers, that is absolutely fine.

Clause 21

Long duration electricity storage

Question proposed, That the clause stand part of the Bill.

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

Thank you, Mrs Hobhouse. On that cheery note, it is great to be back in Committee this morning.

The clause is about long-duration electricity storage, or LDES, which is an incredibly important part of an electricity system, allowing us to store cheap renewable energy when the wind is blowing and the sun is shining, and to generate electricity when people need it most. It is a crucial part of our clean power mission.

Across Great Britain, we already have 2.8 GW of LDES on the grid. I have had the pleasure of visiting some pumped hydropower stations that have been part of our system for decades. They allow excess electricity to pump water high up to a mountain reservoir, where it can be released when we need it to drive turbines and generate electricity. The most recent of those sites, however, was completed more than 40 years ago. The clean power 2030 action plan suggests that we need another 1.2 GW of LDES in the next five years. The National Energy System Operator suggests that we could need up to 15 GW by 2050, so a significant increase on where we are today.

Despite low operating costs and high system-wide benefits, which in 2024 were estimated at £24 billion, the large up-front capital costs to build such stations in the first place, and the revenue uncertainty over such a long lifespan of an asset, have deterred private investment in LDES over the decades. The clause therefore introduces a cap and floor scheme to develop new long-duration energy storage in Great Britain.

Those wishing to develop an LDES asset will be able to apply to Ofgem for protected revenues, conditional on satisfactory delivery and operation and on sharing excess profits with consumers. That provides the revenue certainty needed for investors, giving the green light for the next generation of those important assets. We expect—we have set out deliberately—that this will be technology-agnostic. We therefore expect that we will have more pumped hydro, as well as more novel technologies such as liquid air energy storage.

The clause imposes a duty on Ofgem to establish and operate a cap and floor scheme to encourage the development of LDES assets across Great Britain. The clause also defines the minimum eligibility requirements for the scheme: assets will need a minimum power output of 50 MW, and to be able to discharge at full power for eight hours without recharge. Simply meeting those requirements, however, will not guarantee success, and Ofgem will only select the projects that are most useful for system-wide benefits and for consumers. The clause gives the Secretary of State the power to update that definition by regulation. It also defines in broad terms how Ofgem will set the cap and floor, and how it will fund floor payments.

This is a really important step. As I say, after 40 years of not building long-duration energy storage in this country, we are incredibly excited to be building it once again. It is also crucial to how we deliver the clean power system in the future. I commend the clause to the Committee.

[Paul Holmes (Hamble Valley) (Con)]

Good morning, Mrs Hobhouse. It is a pleasure to serve under your chairmanship and to see you again. I welcome both Ministers to their places. As soon as you said that we can start removing layers, Mrs Hobhouse, my button suddenly popped off. I apologise, and I guarantee that I will not remove any more layers, for fear of disrupting the Committee.

The clause amends the Electricity Act 1989, requiring the Gas and Electricity Markets Authority to implement a cap and floor scheme for long-duration energy electricity storage or LDES. We are concerned that the clause introduces unnecessary bureaucracy and will distort the market with the introduction of the scheme. I have several questions on this. Can the Minister explain what criteria will determine the initial cap and floor levels? More importantly, how frequently will they be reviewed to stay responsive to market changes?

We know that the scheme aims to provide financial stability to LDES for operators by setting revenue caps and income floors, and to encourage investment in this technology. However, will LDES operators and investors have a role in reviewing or adjusting the scheme to ensure that it reflects real-world conditions? Will there be eligibility criteria for a formal application process for operators to access the scheme, ensuring fair access for all players? Those concerns, we would argue, highlight the need for clarity and effective integration with broader energy policies and to ensure the scheme’s success. I look to the Minister for clarification on those elements of the clause. We do not intend to divide at this stage, but we will provide further scrutiny at further stages of the process.

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[John Grady]

I apologise for not indicating properly.

[Michael Shanks]

I thank all hon. Members for their contributions and their recognition, first and foremost, of the important role that long-duration energy storage plays in our system. My hon. Friend the Member for Glasgow East referred to Cruachan—the hollow mountain —and I think there is barely a person in Scotland who has never been on a school trip to there. I would recommend it to anyone; it is a fantastic example of not just how important this is to our energy system, but the engineering that has lasted a significant number of decades and still runs on our system. It plays an incredibly important role.

The shadow Minister, the hon. Member for Hamble Valley, raised a number of important questions. Ofgem has consulted on the process for the first window of the cap and floor scheme. It has published detailed, technical guidance on what we would expect those projects to be able to deliver. We, and Ofgem as the regulator, have very deliberately been technology-agnostic to allow more of these innovative projects to come forward. That first round will run its course, but we absolutely would expect that Ofgem and the Government will look at the results of that review and see if there are areas that we might improve on for a further round if that is deemed necessary. We will keep the scheme constantly under review.

The cap and floor scheme that Ofgem has run for interconnectors has been an incredibly successful way of delivering value for money for consumers and of giving that revenue certainty over the long term. It is a model that works very well. We will review the projects that move forward in the scheme. As I outlined, there are technical requirements that they must meet, but there will also be a process of ensuring that the projects deliver value for money for consumers.

The hon. Member for Taunton and Wellington rightly recognises the role that LDES plays in the mix. We could see some battery projects coming forward in this round. Traditionally, they have not been part of long-duration energy storage, but that technology is moving forward rapidly and some might be able to bid into this process. There are some really innovative projects in that space.

It is important to take the question of how we deal with safety risks for batteries in a balanced way. There are safety incidents for a whole range of infrastructure in our country; some get a lot more attention than others in the media, and we need to be careful not to draw more attention to one particular technology at the exclusion of others. But the hon. Member for Taunton and Wellington is right that safety should be paramount in everything we do with every energy system and every part of infrastructure.

We are looking at the wider question of how we might introduce additional safety measures on battery storage sites more generally, not just as part of the LDES scheme. The Health and Safety Executive has a key role in regulating battery designers, installers and operators to ensure that they take the necessary measures to ensure health and safety. It is an important step, and one that we take seriously.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

I want to press the Minister on the point raised by the hon. Member for Taunton and Wellington. On a visit to the London Fire Brigade I learnt that there is a particular set of risks associated with batteries—essentially, the difficulty of putting the fires out.

In the grand scheme of things, batteries are not more serious than, for example, oil storage, but they require different equipment and differently trained and equipped crews to respond. Will the Minister say more about how, as batteries become a more significant part of the energy mix, he will ensure that fire brigades are able to take a view at the planning stage and are made aware of the risks—just in case they have to respond?

[Michael Shanks]

The hon. Gentleman makes an important point, which we will take onboard. It is already part of what the Health and Safety Executive and the Fire Service are looking at nationally in terms of guidelines, but the Government continue to take an interest. The hon. Gentleman is right that as the schemes expand across the country, more fire brigades that may have not had experience of these incidents in the past will have to gain experience. It is an important point and we take it seriously.

On a general point, I am glad that hon. Members across the Committee recognise the importance of LDES. It is genuinely an exciting moment for the country that we will build some of these important engineering projects to deliver the long-duration energy storage that the country needs.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Clause 22

Benefits for homes near electricity transmission projects

[Paul Holmes]

I beg to move amendment 83, in clause 22, page 29, line 33, after “benefits” insert

“of £1,000 per year for ten years”.

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[Gideon Amos]

I rise to speak to new clause 102, which stands in the name of the Liberal Democrats. This would ensure that all communities hosting major energy infrastructure—solar farms, wind farms, major battery storage, gas, nuclear or other power stations, as well as transmission infrastructure, which is already covered by the Bill—would receive a benefit of 5% of the annual revenue of that project.

Safeguarding the future by tackling climate change is vital, but we are only going to achieve that if we bring communities with us and make it affordable for households. We recognise, and of course welcome, the provision in the Bill for community benefits for those near transmission lines, but those living beside nuclear, gas, coal-fired or other power stations are not eligible for any community support. For example, I supported the development of Ham Farm solar park in Taunton, but none the less the community gets no benefit for the significant impact it is having on that community.

It is time that we had a system that gave community benefit for all energy infrastructure if we are to persuade communities and work with communities to host that infrastructure. If we are going to move Britain to a low pollution energy future with more home-grown energy—something the Liberal Democrats strongly support—we must be willing to compensate those expected to live with and host these enormous developments. It is time, in short, that local people benefited from national energy projects.

Liberal Democrats have consistently led the way on community benefit. My right hon. Friend the Member for Kingston and Surbiton (Ed Davey) brought in the first community benefit system of this kind. In 2013, when he was Secretary of State and making the UK the biggest offshore energy generator in the world, he said:

“Communities hosting renewable energy installations play a key role in meeting the national need for secure, clean energy. It is only right that local people should be recognised and rewarded for that contribution”.

He continued:

“developers already offer community benefit packages on a voluntary basis, we challenged them to do more”. —[Official Report, 6 June 2013; Vol. 563, c. 116WS.]

He then announced an increase in the recommended community benefit package in England from £1,000 per megawatt of installed capacity per year to £5,000, which remains the basis of the system today. Now it is time to extend that benefit to all energy, and to make it proportional to the revenue raised by energy projects. My hon. Friend the Member for Inverness, Skye and West Ross-shire (Mr MacDonald), who is a real champion for his constituency, proposed a scheme such as is set out in new clause 102 to Highland council back in 2021. It is important to recognise that the industry has contributed in this area, and in renewables especially.

In February 2024 the Government, in their document, “Developing Local Partnerships for Onshore Wind in England: Government response”, endorsed the 2013 system of £5,000 per megawatt installed capacity. Our new clause would mean that 5% of revenue from all energy projects goes to local communities. To put some figures on that, Grubb and Garjardo at UCL Bartlett estimate that, in a good year for energy generators such as 2022, UK revenue from renewables was £15.5 billion. Put that across 53,000 megawatts of installed capacity, meaning that £288,00 revenue per megawatt of installed capacity was raised, and 5% of that would be around £14,000 in community benefit per megawatt of installed capacity. In less good years, such as 2021, it might be around £7,000 per megawatt of installed capacity.

With average electricity bills in households being £730 in the UK, it is also important to secure reductions in bills by adopting the Liberal Democrat policy in our manifesto of finally decoupling electricity prices from the wholesale gas price. Based on Energy UK’s figures, that would mean a reduction in electricity costs per household of around £200 per year. The sums yielded to communities through the new clause—around £7,000 in 2021—would be comparable with the volunteered figure of £5,000 from the industry, but with the added benefit that when revenues increase, the community benefit would also increase.

So far the Government have taken only limited steps, which are welcome; but as part of the proposals that we put forward for a similar system in a debate in Westminster Hall in October, we were encouraged by the Minister, the hon. Member for Rutherglen, who said:

“On community benefits in particular, we are continuing—at pace”—

that key word—

“the work started by the previous Government to review how we can effectively deliver benefits for communities living near this infrastructure.”

He said that they were,

“developing clear guidance on community benefits for both the infrastructure and the transmission networks.”—[Official Report, 15 October 2024; Vol. 754, c. 276WH.]

My hon. Friend the Member for Inverness, Skye and West Ross-shire provides an example from the highlands. It is in the periphery of the UK—the highlands and elsewhere—that many of the biggest energy projects are located. Typically, they are areas where there are high levels of fuel poverty, limited access to affordable housing, lower wages, and high costs for electricity connection and heating. Rural areas, where many major projects are built across the UK, share the characteristics of departing young people, sparse and remote public services, especially after the ending of the rural service delivery grant, and poor infrastructure.

Other countries provide compelling examples of what can be done. Denmark, for example, requires new renewable projects to offer at least 20% ownership to local residents. In Germany, local authorities, or Länder, such as Munich, develop their own offshore wind farms, and community benefit comes from the tax revenue that they provide.

Our new clause would see two thirds of the benefit funds designated for the community, by which we mean to be spent in the council ward affected, where community groups themselves could and should be delegated with the power to manage and distribute those funds, with one third used for community benefit at a more strategic level for the council area decided by elected councillors. Fuel vouchers, affordable housing and investment into health and social care could be among the priority candidates for the spending of these benefits. It is unacceptable that these communities, which provide the backbone of our energy revolution, often see little financial benefit from hosting such infrastructure.

[Michael Shanks]

I thank all Members for an interesting debate. Amendment 83 was tabled by the hon. Member for West Aberdeenshire and Kincardine. He is ever present in these discussions, but never present—

[Luke Murphy]

Can I withdraw my criticism about the absence of the shadow Minister for Energy?

[Michael Shanks]

The Minister for Energy made it on to this Committee; the shadow Minister for Energy could have made it on to this Committee as well, so my hon. Friend should not withdraw his criticism so hastily. Anyway, he is ever present in these discussions and we enjoy his contributions from beyond the Committee room.

[Paul Holmes]

I will try not to take that personally. The Minister should be grateful for what he has got. If he wanted a shadow Energy Minister on the Committee, he could have made that known through the usual channels.

[Michael Shanks]

I thank the hon. Gentleman for that important intervention. I will turn to the substance of the amendment before I get into trouble, Mrs Hobhouse.

The amendment seeks to set the level of benefit at £1,000 per year over 10 years. First, I should say I welcome the fact that across the Committee today there is support for that principle. That is really important, because the principle that we want to recognise—to be fair, the previous Government did when they launched the consultation—is that if we host nationally important energy infrastructure, particularly transmission infra-structure, which so often has less of a community benefit in the communities that it passes through, there should be some benefit from it. That is a really important point.

The balance that we sought to strike was to find a way to give a benefit to those households affected by the transmission infrastructure, but also make sure that the wider bill payers across the country that will pay for those community benefits are not saddled with a significant bill as a result. So the balance that we struck was £250 per year over 10 years. I would never seek to question the House of Commons Library, but I think perhaps the hon. Member for Broxbourne might not be correct in his interpretation of its figures. It would be £2,500 over the course of the 10 years that the scheme would be in place. I think that is what he was referring to.

In our view, the point here is that this still provides a significant benefit regarding bills for those households for a substantial amount of time—10 years—but at the same time does not result in significant amounts being added to the bills of other people right across the country who will pay for this. We think £1,000—which we looked at carefully as part of this process—is too much.

[Ellie Chowns (North Herefordshire) (Green)]

I thank the Minister, and I absolutely recognise the importance of the principle of community benefit. However, would he not agree with me that it becomes problematic if we put in specific numbers, such as £250 or £1,000 a year? Inflation will change what that means, so is it not more relevant and logical to place a requirement more like the amendment advocated by the hon. Member for Taunton and Wellington, which talks about a community dividend that is in proportion to the revenues generated by the project rather than an absolute number?

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[Michael Shanks]

I thank the hon. Lady for that point; I will come to the new clause shortly. The difficulty with that approach for transmission infrastructure is that by definition it goes through so many different communities in a linear way that it would be really difficult to divide up that funding among communities. How you define each community is quite challenging, whereas defining households that are within a certain distance of pylons, for example, is very easy, and we want to give a direct benefit to those households.

[Ellie Chowns]

Logically, we could divide by the number of miles of transmission infrastructure in each community.

[Michael Shanks]

I understand the point that the hon. Lady is making, but a transmission line goes through a significant number of communities in a linear way. For a wind farm, you could draw a line around it and benefit all those communities; a transmission line does not work that way, so we would be giving to a significant number of communities who have maybe one or two pylons near them. That is why we think what is most important is that the households closest to the infrastructure get the direct community benefit.

To the point made by my hon. Friend the Member for Basingstoke, this is not the only part of the Bill—we will also have a community benefits fund for infrastructure like substations, where if there is one particular piece of infrastructure built in a community, with all the disruption that goes with building that, wider community benefits come from that as well. It is not one or the other; we are doing both, but in a legislative sense, we only have to legislate on the Bill discount scheme, which is what we are talking about in this amendment.

The shadow Minister asked for detail on some important points—including that we should set out in secondary legislation the specific level of benefit and the duration over which it will be paid. Of course, the £250 a year is a “minded to” position that we have come to as a result of the consultation that the previous Government did and the evidence that we have seen, but that will be set out in secondary legislation, which—to the hon. Lady’s point—allows us to alter that over time if the scheme is successful. This is, in some ways, a trial to find out whether the intended policy outcomes result. I hope that for those reasons—I will come to some others—the hon. Member for Hamble Valley might withdraw his amendment.

Clause 22 is about creating a financial benefit scheme for eligible households living near certain new or significant increases in network transmission infrastructure, and inserts new sections into the Electricity Act 1989. It empowers the Secretary of State to establish and determine the overall design of the scheme, including qualification criteria, scheme administration, enforcement, and provisions requiring the benefit to be passed on.

The “pass-through provision” is outlined in new section 38B(2), and is essential to ensure that the right consumers benefit and to ensure that when an intermediary sits between the electricity supplier and the end user—as happens in some cases—the intermediary will be required to obtain the full benefit and then pass it on to the end user. If this is not complied with, new section 38B(3) allows regulations to provide for the withdrawal or recovery of benefits made to intermediaries.

To enforce compliance with the scheme, new section 38C details the enforcement provisions that may be made in regulations, and I hope this answers the shadow Minister’s point around potential fraud in the system and the imposition of penalties that we will make through secondary legislation for instances of regulations not being complied with. Finally, new section 38D deals with provisions around data collection for the purposes of administering the scheme. Overall, it is worth remembering the purpose of this clause: it is to improve the public acceptability of network transmission infrastructure.

[Lewis Cocking]

I appreciate the Minister’s correction of what I said—the Government are less generous than I interpreted, in terms of the £2,500 over 10 years. But can he give us some warm words about this not replacing any consultation and say that it is on top of all of the consultation and residents being allowed to have their say, and that we will not allow electricity companies just to pay some money and then get away without doing any consultation at all? Can he give us some reassurances on that?

[Michael Shanks]

It is a very important point, and this will come through in the discussions that we will have more generally in this Committee around community consultation, but it will continue to play an important part. I think it is important to separate out any question of compensation from community benefit.

This is not a compensation scheme, and landowners that currently are compensated for infrastructure being built will continue to be compensated through whatever channels that is decided in. This is a community benefit, so it is additional. It is about recognising that it is critical for the future of the country that we build new grid infrastructure, and that if someone hosts that infrastructure they should gain some benefit from doing so. This is our proposal for doing that, alongside the community benefit funds that we have announced.

The Government believe that it is appropriate to set out the full detail on this in regulations, as is the case in many such schemes that have been set up over the years, due to the technical level of detail that will be required, and have drafted this clause to make sure that it applies only to transmission infrastructure, as it is not the intention that it should apply to other technologies. I commend clause 22 to the Committee.

That brings me to new clause 102, tabled by the hon. Member for Taunton and Wellington, which seeks to introduce a scheme that would ensure communities are provided with financial benefits from hosting major energy infrastructure projects from a range of technologies. I welcome the intent of this measure. Indeed, I have had a number of conversations with the hon. Gentleman’s colleagues on this very topic over the past nine months in which I have had the privilege of having this job, and spoken fairly recently to his colleague, the hon. Member for Inverness, Skye and West Ross-shire (Mr Angus MacDonald)—I was in his constituency yesterday, seeing the investment that this Government have made in port infrastructure in his constituency.

We therefore agree broadly with the hon. Member for Taunton and Wellington’s point about how communities should benefit from all this energy infrastructure, but the new clause is not the right way to do it. We are already considering—he quoted myself to me, and I was delighted to hear I was fairly coherent in that debate—the question of wider community benefits. Clearly, at the moment most such community benefit schemes are voluntary schemes run by developers. It is important to say that some of those are actually hugely successful, and communities welcome the collaborative approach in drawing them up, but others are very unsuccessful, and leave communities without the genuine benefits that they should get. We are therefore looking at this really closely at the moment.

As my hon. Friend the Member for Basingstoke noted, we published guidance in May 2025 on community benefit funds for those who live near electricity transmission infrastructure, and shortly we will publish updated guidance for onshore wind in England, which, of course, follows the 10 years of the previous Government’s ban in England. We are also exploring options for our overall approach to community benefits, to provide consistency across different technologies and to maximise the ambition from that. We have left on the table the option of that being mandatory in every case, but we want to look closely at how that would work, and how the design would work to ensure that we are not setting a scheme that does not suit the flexibilities that individual communities might want to take advantage of.

I reiterate that communities are providing a service to this country when they host clean energy infrastructure and there should be a benefit from it. Towards the end of the hon. Gentleman’s speech, he rather veered off community benefits and into an equally important space on community ownership, which is something that I have also had a number of important conversations about. We see ownership of energy by communities as a really important step as well, and that is a step up from community benefits.

[Gideon Amos]

I am extremely grateful to the Minister for addressing the serious points in the new clause, and particularly for saying that mandatory schemes will not be taken off the table. He was coherent back in October, except—if I might suggest—for the phrase “at pace”. Could he explain what “at pace” means in this context, in terms of what the timescale might be?

[Michael Shanks]

That is a question that I have asked myself many times over the past nine months. The problem is that we inherited a number of these things from the previous Government and we are working through them.

I have regular meetings on the subject. It is really important that we get this right, because we need to strike the balance: ultimately, the community benefit funds will, one way or another, be paid for by bill payers, but we want communities to have a real benefit. The balance has to be right because we are trying to bring down bills for everyone across the country. The Conservative amendment would increase people’s bills, but we are determined to try to bring them down. There is a balance to be struck.

We feel that this is an exciting moment to drive community ownership forward. A key aim of Great British Energy will be to drive forward the local power plan, so that communities do not just have benefits from infrastructure, but own some of those benefits. A number of hon. Members across the House have mentioned the real benefits of communities having a stake in projects—they can spend the money on whatever they want to spend it on, rather than on what a scheme might define. The two go hand in hand.

The bill discount scheme is an important step to drive forward community acceptance of new network infrastructure. We will develop proposals at pace for the hon. Member for Taunton and Wellington and for communities right across the country on the wider aspects of energy infrastructure. I hope that he will not move his new clause 102.

[Paul Holmes]

I am grateful to the Minister for some of the answers he has given—

[Michael Shanks]

Some?

[Paul Holmes]

Well, I am grateful to him for trying to give all the answers, but I only agree with some of them, as he would expect. I wish that he would accept the amendment, but he has stated clearly that he will not. The amendment is ambitious and would give clarity to the consumer and local people about what they should expect.

I understand what the Minister said about the amount of money given to local people being legislated for in secondary legislation, but there is a question about why he will not put that into primary legislation. He could be clear—the £250 a year was clearly leaked to the press a few months ago—but the Government have still not produced any legislation to give certainty to the consumer. That is symptomatic of the Government: in lots of areas of the legislation, they simply have not provided any detail to the people it affects. We will get to those other examples later, when we come to the specific issue of planning reform.

The hon. Member for Basingstoke seems to have an encyclopaedic knowledge of Opposition politicians’ quotes; I suggest that the Whips Office makes more use of him, given his ability to get an Opposition quote quickly, just like that. He might want to get a hobby, I don’t know, but he is good on quotes.

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Division 2

Ayes: 5

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Conservative: 3
Liberal Democrat: 2

Noes: 12

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Labour: 11
Green Party: 1

Clause 22 ordered to stand part of the Bill.

[The Chair]

Before we move on to the next clause, I remind Members that, although I recognise the importance of the principle and the discussion of community compensation and benefits, we need to press on and get through our agenda of line-by-line scrutiny. It is important to discuss the principles, but please also remember that we have a very long agenda in front of us.

Clause 23

Electricity transmission systems: extension of commissioning period

Question proposed, That the clause stand part of the Bill.

[Michael Shanks]

We come to the most exciting clause in the Bill: the offshore transmission owner, or OFTO, regime. I can see everyone is on the edge of their seats.

This is an incredibly important clause. It provides a competitive market for offshore electricity transmission, which is important because it helps us to achieve cost-effectiveness in the building and operation of offshore wind farm connections on to the national grid. The clause is part of our efforts to ensure the regime supports the UK’s continuing ambition to be a world leader in offshore wind.

The clause extends the time that wind farm developers who build their own transmission assets have to divest those assets to an independent offshore transmission owner. That time is currently 18 months and the clause increases it to 27 months. That period is known as the generator commissioning clause, or the GCC.

The clause addresses the increase in size and complexity of wind farms since the GCC was first introduced. My Department issued a call for evidence on the OFTO regime, which closed in February 2024 under the previous Government. The responses suggested that the GCC period was too short and should be extended due to the increase in the size and complexity of wind farms, which has led to an increased risk of developers experiencing technical faults, and has meant more time is required for more complex commercial negotiations.

Without the clause, we would expect to continue to see many offshore wind farms needing to request individual transmission licence exemptions, which we bring to this House for decision, if they are unable to transfer transmission assets within the current 18-month period. The vast majority of offshore wind farms entering the process since 2016 have needed to apply for one of these exemptions, with each exemption requiring a separate statutory instrument to be considered each time.

The clause is therefore expected to reduce very significantly the number of offshore wind farms requiring an exemption. The requirement for an exemption leaves wind farms at risk of shutting down, taking a source of renewable energy off the grid and endangering the UK’s energy security, which is of course something we all want to avoid. This is a technical but very important clause and I commend it to the Committee.

Question put and agreed to.

Clause 23 accordingly ordered to stand part of the Bill.

Clause 24

Use of forestry estate for renewable electricity

Question proposed, That the clause stand part of the Bill.

[Michael Shanks]

The clause enables the generation of electricity from renewable sources within the public forest estate through inserting a new section into the Forestry Act 1967.

Our public forests are a national asset, providing vital environmental, social and economic benefits. They also offer an opportunity to contribute to our clean power by 2030 mission through the development of home-grown renewable electricity proposals. The clause will support this by enabling Forestry England to undertake activity relating to both small and large-scale renewable electricity projects on the public forestry estate.

Developments may take place on both forested and non-forested land within the public forest estate. There will, however, be no reduction in size of the estate and sites will be carefully selected. These powers will see us integrating technologies including solar, hydro and wind energy into our natural landscape, accelerating progress to net zero and helping to tackle climate change.

Principles underpinning renewable energy developments include ensuring that there is no net loss of woodland area, positive habitat restoration and maintaining a sustainable home-grown timber supply. Forestry England has already developed around 40 small-scale renewable energy installations, but under current legislation any excess electricity that Forestry England generates is wasted and cannot be exported to the grid. That includes rooftop solar and biomass heating to generate energy used at their various visitor centres and offices. The new powers will allow Forestry England to export electricity generated from its own projects to the national grid.

Without this change to legislation, there would continue to be an imbalance between English activities in this space and those that take place in Scotland in connection to renewables. Public land being managed by the forestry authorities in Scotland is currently able to be used to generate renewable electricity at commercial scale. I commend the clause to the Committee.

[Paul Holmes]

I welcome the clarity in the Minister’s opening remarks on the clause. While the theory of generating renewable energy, and deriving income by selling electricity generated from renewable sources, on public forestry land is positive, several concerns need to be addressed that do not lend support to the Government’s initiative. I issue a word of warning to the Minister from experience: measures that concern public forests can be very divisive. As the previous party in government, we still have the scars on our back when it comes to forests. However, we accept that there are clear precedents in Scotland for what the clause will do.

I have a couple of questions for the Minister on these very well intentioned measures. Again, there is a need for clear consultation with people who live locally. We accept that these forests are run by experts, and we pay tribute to them for the way in which they run our forests across the country, but there will be people who have an absolute passion for our forests. Believe me: we saw them in our inbox when I worked for an MP. We need some clarity on that.

My first question is how the powers will balance commercial activity with conservation duties. The Minister said that there are examples of where we have done that before. It is a genuine question. We must make sure that when there is a drive to allow this to happen, some of the conversation elements are not lost in the management of the forests, and that renewable projects do not undermine biodiversity, recreation or climate resilience.

Secondly, what criteria will determine when ministerial consent is required for projects? As I am sure we agree, clear thresholds are necessary for consistency and community confidence. Within that, there must be consultation of local people. As I said, it can be an incredibly emotive topic when people find out from their local forestry commission that it is engaging in some electricity generation. When it comes to our beautiful forests, such wording can mean that people need to be told about it properly and consulted properly. What is the Minister doing to ensure that that will be at the forefront of these projects? As I said, we have been there before.

Does the Minister have any concept of how income from renewable generation will be managed? Oversight mechanisms will be vital to ensure transparency and accountability in these commercial activities. Are there limits on the scale or type of renewable projects on public land to prevent industrial-scale developments, and how will local communities be engaged in decisions affecting their access to public land?

While the clause offers opportunities, it poses risks that need careful management, so I urge the Government to provide more details to ensure that the powers are used responsibly, and that there is no mission creep at the end of the day from this very well intentioned clause.

[David Simmonds]

My great-grandfather spent his entire working life at the pit in Cwmcarn, which is now a forestry commission site. There is evidence of the coal that was dug for centuries on that site, which is now a place that is enjoyed for leisure by all. Broadly, I echo the comments about welcoming the clause.

On page 35, line 20, the excluded types of fuel are listed, to determine what may be considered to be renewable. Waste to energy is not included; nor is the sustainable fuel mandate, which is currently focused on aviation fuel, but ultimately involves producing a gasoline product entirely from waste the purpose of which is to create energy. The fuel may go into aircraft, but it could be used for other purposes. The concept of waste to energy means, essentially, building an incinerator on forestry land to burn waste and generate electricity. By implication, that is something that the Government envisage as a result of that subsection. Could the Minister say more about that?

[Michael Shanks]

I thank all hon. Members for their contributions. The hon. Member for Hamble Valley has taken the right tone, which is that our forestry land is to be treasured and protected for future generations, but there is a balance to be struck—we strike it every day in relation to how much the public can access and enjoy that land, and use visitor facilities. Stewardship of our forestry land is the responsibility of all of us. I thank him for his remarks.

We expect the footprint from the projects to be incredibly small. In fact, the most successful projects in Scotland are often on the rooftops of visitor centres, alongside toilet blocks, and in those sorts of places, so we are not talking about cutting down huge areas of forest to build ground-mounted solar. However, the point the hon. Gentleman made about consultation is critical. There will be comprehensive public and statutory consultation, and I fully expect Forestry England to carry out an even more detailed engagement process, given its stewardship role for certain pieces of land.

In fact, in Scotland, where some projects have been carried out, groups of people who frequently use the forest have been involved in designing the projects and deciding what the money will be spent on. There are real benefits to that. Although there is sometimes short-term disruption from construction, often the projects have resulted in accessible routes being opened in Scottish forests, including new wheelchair-accessible paths, so previously inaccessible land is being made accessible. However, the hon. Gentleman is right about consultation.

On the subject of revenue stream, we expect the measures to enhance Forestry England’s wider role and its existing objectives, which do not shift as a result of the measures. Of course, those objectives relate to environmental conservation. In fact, the revenue, which is currently being wasted—the critical point is that these projects cannot export to the grid—could actually create a net benefit, and we would expect it to do so. That is an important point, as is the issue of mission creep. We will certainly keep that in mind.

[Paul Holmes]

The Minister has satisfied me with his answers and is adopting a constructive tone regarding the clause, but I want to press him on the criteria used to determine ministerial consent. He is right to say that we do not want mission creep, and that we would usually expect minimum amounts of development around visitor centres and in the existing infrastructure of forests. Can he outline where the Government might set, not necessarily restrictions, but additional criteria regarding the size and scale of energy projects under the clause?

[Michael Shanks]

Again, there is a balance to be struck: we do not want to create a fixed set of national guidelines that preclude larger scale projects that would not disrupt existing forestry. I do not want to suggest that every piece of forestry land is the same, and therefore that the guidelines should apply in the same way. None the less, the hon. Gentleman makes an important point, and I will write right to the Committee about it.

I say the same to the hon. Member for Ruislip, Northwood and Pinner. As I think he would expect, schemes such as those he mentioned are not intended to be part of these measures However, I will consider whether we can tighten the guidance. The clause is intended to be about using land that, in some cases, already has some of these projects on it, but they cannot export to the grid. Small-scale solar or hydro—those are the sorts of schemes that we see as fitting alongside the wider mission of Forestry England. The hon. Gentleman raised an important point, and I am happy to write to the Committee about it.

Question put and agreed to.

Clause 24 accordingly ordered to stand part of the Bill.

Clause 25

Fees for certain services

Question proposed, That the clause stand part of the Bill.

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

It is a pleasure to continue our proceedings with you in the Chair, Mrs Hobhouse.

Chapter 3 of part 1 of the Bill deals with reform of transport infrastructure. Its various clauses—all of which, I hope, are uncontroversial—are designed to streamline and improve the efficiency of delivering transport infra- structure projects. Clauses 25 to 29 of the chapter make various amendments to the Highways Act 1980.

As hon. Members will be aware, local authorities and statutory consultees provide advice, share information and prepare responses to consultations on proposed highway projects. However, they currently do not have a statutory basis on which to recoup the costs associated with the work they do to review the applications. That can lead to delays in processing applications due to a lack of resources, or information being received late in the process.

Clause 25 inserts a new section 281B into the 1980 Act, providing a new regulation-making power for the Secretary of State in England and for Welsh Ministers in Wales to charge applicants for services in connection with certain schemes and orders on a cost-recovery basis. To be clear, it will not allow them to make a profit; instead, it will support the capacity and capability of local planning authorities and statutory bodies to carry out those processes, which in turn will encourage timely and high-quality inputs into the process.

The charges will apply to parts of the Highways Act associated with approving new roads, making changes to existing ones and making other legal orders necessary for highway projects. Furthermore, we will use a proportionate delegated power to ensure that cost recovery and the provision of services remain flexible and responsive in the light of changing circumstances over time, such as inflation.

The clause will bring the Highways Act into line with cost recovery provisions established under other infrastructure consenting regimes. By resourcing the input from critical stakeholders, this power will contribute to the acceleration of highway infrastructure project delivery, supporting the Government's economic growth mission now and in the future. On that basis, I commend the clause to the Committee.

[Paul Holmes]

We welcome clause 25, and I welcome the Minister to his position. He has a lot to live up to after those clauses, and I will continue to be nice to him. I say well done also to the other Minister for the constructive way he has been working on this Committee. Opposition Members do appreciate that. Because we are not stupid, we realise it is sometimes a challenge to win votes. Although the votes we undertake here are closer than the ones on the Floor of the House of Commons, let that not be an encouragement to us to call more.

As I said, we welcome clause 25, which allows public authorities to charge fees for services related to specific highway schemes. None the less, some clarity is needed on several points. While recovering costs is reasonable, the clause must be carefully implemented with safeguards to ensure fairness, accessibility and consistency across England and Wales.

The Minister has stated that this is a reserved matter for certain statutory bodies and local planning authorities, but will he outline how this goes with his perfectly admirable stance on devolution? Will he look to allow new combined authorities and mayoralties to take on some of the powers, or is he planning for them to be devolved even further, to mayoral authorities coming on stream rapidly from the Department under this Government? We would like some clarity on how he sees the powers being amended once local authorities and some of those statutory bodies no longer exist or are reformed.

Has the Minister considered the impact of the fees on small developers, charities and community groups? Could they create barriers or delays in any process? Will there be provisions allowing fee waivers or reductions for certain applications, such as for community-led or rural projects? How will disputes about fee fairness be resolved, and will there be an appeals process? What guidance will there be to ensure consistency in fee application across regions, to avoid significant variations from one local authority or statutory body to another? Finally, could the fees delay or discourage essential infrastructure development, especially in areas with planning capacity challenges?

[Lewis Cocking]

I have a few comments, although I support the principle of this provision. There is not enough capacity in some planning departments, so I agree that fee cost recovery and some of the additional fees, particularly those relating to highways matters, are really important for local authorities, but I have a few questions. When will the money be paid? Will it be paid before the development has started, so there is capacity in the system? People sometimes make planning applications and get planning permissions but do not actually build out the development, so will the fees still need to be paid in those cases?

I have some concerns that I would like the Minister to comment on. Some authorities still have section 106 agreements, and I am concerned that developers will just move money from those section 106 agreements—money that is to be put into education or healthcare, for example—by saying in a viability assessment that they now have to pay these fees to the local authorities, particularly around highways. How can we stop it being the same money, just moved around? These fees should be additional to the money from section 106 agreements that the council was already getting, as they are going directly into capacity issues within planning departments. I am worried that developers will try to play games by just moving the same money around the system or cutting the same pie in a different way, which will not help local authorities. I would like to hear the Minister’s response to those comments, but I wholeheartedly support what the Government are trying to do in this specific case.

[Matthew Pennycook]

I welcome both the broad support for the intent behind the clause and the very reasonable questions that have been put to me by members of the Committee. To be very clear, because we have strayed into pavement applications, section 106 applications and other things, this clause very specifically relates to allowing local authorities and statutory consultees to recover the costs that they incur when providing services on highway-related applications only. We may discuss later some of the other matters and the general position of planning authorities and the challenges they face in capacity and capability. I just wanted to make that point.

All the clause does is bring the Highways Act 1980 into line with the cost recovery provisions established under other infrastructure consenting regimes. It is broadly accepted that we need to support local planning authorities and statutory consultees to process applications in a timely manner. We think that will drive high-quality and timely—

[Lewis Cocking]

Will the Minister give way?

[Matthew Pennycook]

I will address the hon. Member’s point, if he will wait, and then he is more than welcome to come back in. As I said, it help to drive timely and high-quality inputs into the process, which will speed up the delivery of highway infrastructure projects and avoid extra costs. This is an important point to make: there are costs associated with the fact that applications are not taken through in a timely manner. If they are delayed or time out, that can result in design changes or the process to reach a decision being extended, which brings extra costs. In general terms, we want to ensure, as with many of the provisions in the Bill, a more streamlined, certain and faster consenting process.

It will be for the Secretary of State and Welsh Ministers to set out in regulations those bodies that are able to charge the fees; they may include bodies such as the Environment Agency and Natural England. Regulations and guidance will set out in more detail what advice and information will be covered by the cost recovery process, as well as other matters, including how fees are calculated, when fees can and cannot be charged and the point at which fees are charged.

We will get into separate issues relating to build out, but to respond gently to the point made by the hon. Member for Broxbourne, I cannot see how a very specific highways-related application will necessarily bleed over into section 106 negotiations. None the less, I will reflect on that point, as we do not want cost recovery provisions in the clause to allow developers to reduce section 106 contributions on the basis that they are having to pay this charge. As I said, delegated powers will ensure that the cost recovery power is future-proofed by ensuring that it is flexible enough to account for changes, not least in inflation, which we have discussed before.

[Lewis Cocking]

I completely understand where the Minister is coming from on specific applications just for roads. I suppose my comments were related to new towns or garden villages, where there will be lots of facets to those applications—house building, new roads and what have you. I therefore welcome the Minister’s comments on the fact that he will look at those issues that I have raised.

[Matthew Pennycook]

I certainly will do so, and, just to stress the point once again, what we are trying to do here and in a number of other clauses in this chapter is broadly about bringing the processes under the Highways Act 1980 and the Transport and Works Act 1992 into line with other consenting regimes. As I said, in this case, it is about ensuring that cost recovery provisions established under those other infrastructure consenting regimes apply in the case of the Highways Act. However, I certainly will be more than happy to reflect on the hon. Gentleman’s point, and on those made by other members of the Committee. On that basis, I commend the clause to the Committee.

Question put and agreed to.

Clause 25 accordingly ordered to stand part of the Bill.

Clause 26

Power of strategic highways company in relation to trunk roads

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

Clause 26 will allow National Highways to handle the majority of the administrative actions for creating or changing the status of a trunk road. As I am sure all Committee members are aware a section 10 order under the Highways Act is used to designate or declassify a road as a trunk road.

Trunk roads are major routes in our highways network that are managed by National Highways instead of local authorities. Having the power to make a road a trunk road is an essential step in ensuring that key roads are maintained at the national level. Trunk roads perform an important role in enabling safe, reliable and often long-distance journeys by both people and goods between our major towns and cities, and provide access to our international gateways.

The current system places much of the process for handling requirements of these section 10 orders—namely their preparation and publicity—on the Secretary of State, rather than the highways body itself. Clause 26 will simply transfer the administrative control of the application from the Secretary of State to the strategic highways authority—National Highways. It will also align the handling process with the way in which applications under other parts of the Highways Act are currently managed.

I stress that the Secretary of State will remain the ultimate decision maker on the application. However, by removing the administrative burden from the Secretary of State, clause 26 will create a more efficient process, which we believe will lead to faster decisions on new and upgraded trunk roads. This will help to deliver road improvements more quickly, support economic growth, enhance transport links and reduce congestion.

[Paul Holmes]

On that point—depending on the Minister’s answer, I may not have to make a speech and detain the Committee—the Minister has outlined that the strategic highways authority is National Highways; does he envisage that for some roads, particularly across England, the county council is the strategic highway authority, and will have to apply the section 10 changes? Is he not worried that, because of the financial implications for some county councils—regardless of politics—there could be a kind of enticement for people to get rid of some of the strategic parts of their local road networks? It may be a complete lack of understanding on my part, but could the Minister outline whether county councils could be included in some of that process?

[Matthew Pennycook]

I am more than happy to write to the shadow Minister about the role of county authorities in managing the highway network, and how the Highways Act and the consenting regime applies to them. I do not think his point is pertinent in this respect, in the sense that the clause transfers administrative functions related to section 10 orders under the Highways Act from the Secretary of State purely to National Highways. It does not change the legal decision-making authority, which remains the Secretary of State’s, but the administrative burden, in terms of the final preparation, publishing and consultation of the necessary documents, would be done by the applicant—National Highways. But I am more than happy to provide the shadow Minister with further detail about the interaction with county authorities.

[Paul Holmes]

Please do not write to me on that. I say that not to offend officials but because I do not want them overworked and the Minister has clearly outlined what he means, for which I am grateful. The question was obviously to clarify my understanding of the legislation. I asked it because I just wondered whether strategic highways authority included county councils. My county council controls a large number of roads, and I wondered whether it was enveloped under the proposal—under the meaning of strategic highways authority. The Minister has answered that, and I am perfectly content not to make a speech.

[Matthew Pennycook]

I very much welcome that intervention, as will my officials, I am sure. It saves them a letter—although letters may be forthcoming in the course of debate if we require further detail on very technical points. I will just stress the point again: I think the confusion lies in the fact that section 10 orders apply only to National Highways, if the shadow Minister needs reassurance in that regard. But broadly, these are procedural changes that just allow, as I have said, the administrative burden to be transferred from the Secretary of State to National Highways.

[David Simmonds]

Just to pick up the point made by my hon. Friend the shadow Minister—again, at the risk of placing officials in need of writing a letter—we can consider London, where we have Transport for London, Highways England and various other agencies or companies that manage the miles and stretches of those motorways. Very close to my constituency we have the M40/A4 motorway, which is literally the same road but transfers from being a Highways England road to a TfL road at the boundary of Greater London. There could be significant issues where, for example, local authorities that are responsible for neighbouring roads would need to be consulted, so I would be grateful if the Minister could clarify, particularly in respect of where we have TfL, red routes and things like that, all of which I think would be within the scope of the clause, that that has been fully considered so that we can ensure that we do not see unnecessary friction as a result.

[Matthew Pennycook]

I do not think that in any circumstances we would see friction on elements where the Secretary of State remains the body that takes forward the administrative process. I cannot envisage a way in which that would cause friction. Just to be very clear, a section 10 order under the Highways Act is used to designate or declassify a road as a trunk road. That is action carried out by National Highways, as I have said. We simply want it to take the administrative actions for creating or changing the status of a trunk road. I am more than happy to write to the hon. Member for Ruislip, Northwood and Pinner—apologies to my officials —on this administrative change as to who takes on those actions, namely National Highways rather than the Secretary of State, and how that interacts, which I think was his point, with the boundary of roads managed by the Greater London Authority, which is not covered by this clause of the Bill.

[David Simmonds]

I am just reflecting on my experience as a councillor in local government. There are often disputes. For example, the creation or designation of a red route clearway as a trunk road removes all parking along the length of that route and also affects things like bus services along it, so there are situations in which there may be a difference of opinion between a local authority, which is the current manager or administrator of the route, and a trunk road manager, who wishes to designate it as such for the benefit of an infrastructure project but clearly will not be subject to the consequences that that would have for bus routes, parking and other issues under the ambit of the local authority. I am just looking for clarity that there is a process by which those issues will be resolved and that there will be a relevant level of consultation, so that the kind of tensions that we saw around low traffic neighbourhoods with a dispute between Transport for London and a local authority about what was going on in a local area are not replicated.

[The Chair]

I remind everybody of the tightness of the parameters within which we need to keep this debate. Otherwise the Committee will have to find another day to sit. By no means do I want to stifle debate, but it is also up to the Minister to allow interventions or not.

[Matthew Pennycook]

I think we will all know where to place the blame if that scenario arises—we will not need to add an extra day.

I gently say to the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner, that he is comparing apples and pears. To be as clear as I possibly can be, all the requirements set down in the legislation in respect of preparing and publishing materials, and the fact that the Secretary of State remains the decision maker, remain in place. The clause purely changes the body overseeing the administrative actions associated with those applications. On that basis, I think this is a fairly uncontroversial procedural change. We have committed to write to the hon. Gentleman about any possible interactions with the Greater London Authority’s management of red routes. On that basis, I commend the clause to the Committee.

Question put and agreed to.

Clause 26 accordingly ordered to stand part of the Bill.

Clause 27

Deadlines for consultation and decisions on certain orders and schemes

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

Clause 27 will reduce the objection period for applications under the Highways Act 1980 from six weeks to 30 days. Such applications could be for the construction of new roads, changes to existing ones and other necessary legal orders for delivering highway infrastructure. The objection period refers to the timeframe during which interested parties can view application materials and provide comments.

Reducing the objection period will speed up the consenting process without sacrificing the safeguards that are essential for the fair consideration of objections. An objection period of 30 days aligns with the relevant objection periods for other transport consenting regimes, such as the Planning Act 2008. Again, I draw the shadow Ministers’ attention to the fact that, as per the previous clauses, we intend to align the Highways Act provisions with those in other consenting regimes, to provide for a more uniform arrangement across the piece.

Additionally, the clause will introduce a 10-week deadline for the Secretary of State to make decisions on these schemes and orders. Currently, there are no statutory deadlines for the decision-making stage for the relevant processes, unlike in other consenting regimes, such as the Planning Act 2008. Bringing the Highways Act into alignment with other consenting regimes will improve certainty and the efficiency of the process. The power for the Secretary of State to extend the decision deadline, if necessary, ensures flexibility in cases where additional time may be required.

By shortening the objection period and setting a clear decision timeframe, the clause makes the process more predictable for all stakeholders. Faster, more predictable decisions will result in more efficient delivery of transport infrastructure projects, contributing to better transport networks. We think this change strikes the right balance between improving speed and maintaining fairness, ensuring that the process remains transparent and accountable. I commend the clause to the Committee.

[Paul Holmes]

May I say, Mrs Hobhouse, that you are absolutely on fire? We are getting through things very quickly, and I will adhere to your instructions.

The clause updates the objection and decision-making timelines under the Highways Act 1980. Although the goal is to align with other planning regimes, several concerns remain. First, the clause reduces the objection period in England to a minimum of 30 days, but maintains it at six weeks in Wales. What justifies that discrepancy? Should there not be consistency across all authorities?

Furthermore, is it not the case that reducing the objection period may limit the time available for affected parties to prepare responses? I know that this is outside the remit of this very prescriptive clause, but many constituents will say that they did not get the letter or see the things that were posted, or that local people simply were not able to see things. I really think that this 30-day restriction will harm many average Joes—I hate that term, but I do not know how else to put it. People out there, who have busy lives, busy jobs and families, and who are working on their daily lives, will really struggle, in the first place, to see things within 30 days. However, they will also not know that the period is now 30 days and may therefore not be consulted on some of the actions that authorities may take.

I ask the Minister to assess whether 30 days is the right length of time. I am not talking about having an unrestricted length of time for consultation, and we absolutely need to make sure, if we want to deliver on some of these policies, that the timeframe is reasonable. However, I question whether 30 days is far too rapid and will cause more harm than good to the consultation rights of the British public. I would also ask what systems will be in place to notify stakeholders of deadline changes and extensions in individual cases, to ensure clear and accessible communication.

I have a last question. While the intent of the clause is to streamline processes, we must ensure fairness, transparency and quality decision making, allowing stakeholders to engage meaningfully. We absolutely accept that there is currently no statutory deadline. Ten weeks is adequate, but on the 30 days element of the consultation period, when we think about people out there with busy lives, I think could cause a huge problem for democratic accountability and for the transparency of the system in allowing local people to have their say. I ask the Minister to look at that 30 days again, but we will not press the clause to a Division.

[Matthew Pennycook]

I thank the shadow Minister for his response and questions. Again, I make the point that with a number of these provisions we are trying to align the Highways Act with other consenting regimes. I do not know whether his position is that the statutory objection period in those other consenting regimes—for example, the Planning Act 2008—should be lengthened. I would argue that such an extension would add time and complexity. We think that should be brought into line with the others.

We think that 30 days is the appropriate period, that the existing arrangements, which set out a period of not less than six weeks, are too long, and that we should bring the Highways Act into line with the other regimes. On that basis, we do not think that the clause sets a precedent for the shortening of objection periods, because objection periods of about four weeks, as I have said, can be found in other infrastructure consenting regimes. That is an adequate period of time in which to submit objections.

The shadow Minister asked another, separate question about the Secretary of State’s ability to extend deadlines from the 10-week period. Again, in any such instances, the Secretary of State would need to send written notice of the extension to the relevant parties in those cases, setting out why an extension is required. I hope that on that basis the shadow Minister is reassured about the use of that particular part of the clause.

Question put and agreed to.

Clause 27 accordingly ordered to stand part of the Bill.

Clause 28

Procedure for certain orders and schemes

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

The clause seeks to address the fact that under the existing system, a statutory instrument is required to approve applications under sections 16 and 106(3) of the Highways Act, and for orders under section 10, which are made by the Highways Authority in the form of a draft statutory instrument, whereas a simpler confirmation process exists for other applications under that Act.

An SI is currently required for applications to make or unmake a trunk road or special road, to construct a special road, or to build a road bridge over or road tunnel under navigable waters. Those statutory instruments are not subject to any parliamentary procedure, but they take extra time to prepare. That represents an unnecessary and disproportionate burden of bureaucracy in our view.

As I have mentioned, the Highways Act already contains a quicker process for confirming other types of application via a confirmation document issued by the Department for Transport. The clause will simply allow the applications to which I have referred to be confirmed via a confirmation document issued by the Department. In short, that again aligns the handling processes across the relevant parts of the Highways Act. That will support the Government’s goal of speeding up the consenting of transport infrastructure by streamlining the process.

To maintain transparency in the decision-making process, the clause ensures that a confirmation notice must be published in the public domain. I commend the clause to the Committee.

Question put and agreed to.

Clause 28 accordingly ordered to stand part of the Bill.

Clause 29

Compulsory acquisition powers to include taking of temporary possession

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

The clause concerns compulsory acquisition powers in relation to projects undertaken under the Highways Act 1980. No clear provision is currently available to allow Highways Act project promoters to temporarily use and possess land, such as for construction purposes, by compulsion. In lieu of such a provision, if a project promoter cannot come to a commercial agreement with the landowner or owners for a licence to access the land required, the project promoter will typically apply for powers of compulsory acquisition to enable it to buy and use the land. That approach is disproportionate when the land is needed only temporarily for construction purposes. Additionally, the current arrangement offers the landowner no legal right to regain their land.

The intention of the clause is to provide clarity that project promoters, under the Highways Act 1980 regime, can temporarily use and possess land by compulsion. It does so by introducing a clear and proportionate legal power to require authorities that have already identified a piece of land as necessary for the planned construction of the proposed highway works to temporarily use land when they cannot reach agreement with the landowner, while also protecting landowner rights to regain their land and support compensation mechanisms.

By reducing legal ambiguity, the power will help to shorten often protracted land negotiations, speeding up the process to submit an application for highways works, ultimately thereby delivering transport projects quicker. In doing so, it will contribute to the Government’s ambition to simplify the consenting of major transport infrastructure projects.

[David Simmonds]

Broadly speaking, the Opposition support the intention set out in the clause. Improving the efficiency of such works is clearly a very logical step. Could the Minister say a little more about how the power will interact with the powers and duties that apply to statutory undertakers? I am thinking, for example, of where it is necessary to divert a gas main or water main, or other significant infrastructure, where there are already legal rights in place that can be used for that purpose. An issue we are all familiar with is the disruption caused to transport networks when major works are being undertaken. Will there be a process for ensuring a degree of co-ordination? Will there be a requirement or expectation for consultation so that, where a highways body wishes to undertake that work, it can possibly be co-ordinated with the work of other statutory undertakers involved in the same project, to minimise the disruption?

Will there be an assurance that that process will provide for an appropriate level of compensation for the landowner whose land is being taken temporarily, as that often seems to be a source of dispute? This should not become a back-door way by which a highways agency, as the lead body, says, “We are going to take that at no recompense,” rather than going through a process of negotiation to achieve an agreed sum in respect of the loss of amenity to the owner of the land.

[Matthew Pennycook]

I thank the shadow Minister for that contribution and I recognise the reasonable concern he raises. If he will allow me, because it is a very technical aspect of the Bill, I will write to him with full details of how we see this power working, particularly in respect of compensation measures. I think his remarks recognised that the present arrangements do not provide the necessary certainty for landowners that they can regain their land. They force applicants to use disproportionate powers. We are trying, through the clause, to provide certainty that there is a way to take possession of land temporarily when required.

It is worth saying that there is a temporary possession power in the Neighbourhood Planning Act 2017. It is a different mechanism; it has not yet been enacted. We are trying to achieve a fairly simple clarification through the Bill, which will not require us to enact powers that are above and beyond what is required under the simplification to which the clause gives effect. It is an uncontroversial procedural change that will make the process more certain and efficient for both parties and provide them with reassurances.

Question put and agreed to.

Clause 29 accordingly ordered to stand part of the Bill.

Clause 30

Replacement of model clauses with guidance

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

Clauses 30 to 41 make various amendments to the Transport and Works Act 1992. I would hope that the Committee has a shared recognition that that Act of Parliament needs to be more efficient for applicants applying for transport infrastructure schemes such as new railways or tramways in England and Wales. This will allow transport infrastructure projects to be delivered as efficiently as possible, providing faster decisions and support economic growth.

Clause 30 allows the Secretary of State in England and Welsh Ministers in Wales the power to move template model clauses from legislation into guidance. The model clauses are intended to streamline the drafting of Transport and Works Act orders, but they can currently only be amended through secondary legislation. Setting them out in more flexible guidance, rather than legislation, will allow them to be updated more regularly via a more efficient and faster process. That supports the Bill’s aim of simplifying and streamlining transport rules, ensuring that we have a more efficient legal framework moving forward. On that basis, I commend the clause to the Committee.

Question put and agreed to.

Clause 30 accordingly ordered to stand part of the Bill.

Clause 31

Removal of special procedure for projects of national significance

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

I hope that on this clause, at least, we can avoid detailed questioning by the Opposition, because there is nothing with which issue can be taken. It is a simple tidying up of the statute book. The Transport and Works Act requires updating to reflect the wider changes that are to be implemented in the planning sector. It was, as I have mentioned, given Royal Assent in 1992.

The purpose of clause 31 is simply to remove a redundant section of the Transport and Works Act, which refers to schemes considered to be “of national significance”. Since the Planning Act 2008 was introduced as the consenting regime for nationally significant infrastructure projects, with clearly defined thresholds for what is considered “of national significance”, it has effectively rendered that part of the Transport and Works Act entirely redundant.

The effect of the clause is a simple procedural fix. By removing outdated references, the clause will make it easier for developers and public bodies to understand and apply the law, while also reducing administrative burdens. I commend the clause to the Committee.

[David Simmonds]

Throughout proceedings on the Bill, we have flagged up the important point that is highlighted by subsection (3), namely the lack of retrospective application. I would like the Minister’s response on a point that is of concern to the Opposition. There is always a risk that powers that are due to expire will be used and exploited in advance of new legislation coming in. What measures does the Minister have in mind to ensure that that does not turn into a problem?

[Matthew Pennycook]

I thank the shadow Minister for his question. As ever with his points, it was well made. I will go away and reflect on it, but I struggle to see how the use of the clauses we are considering in the Transport and Works Act—as I have said, they have been rendered entirely redundant since they were superseded by provisions in the Planning Act 2008 that clearly define thresholds for what is deemed to be nationally significant infrastructure —give rise to the challenge that he posits.

[David Simmonds]

The Minister has served on a planning Committee, and he will be aware of the challenges that arise where, for example, a historical permission is secured on which a developer subsequently seeks to rely. It is clear that the intention is, quite rightly, to remove those redundant clauses. The concern I am highlighting is that when permission rights have arisen under the clauses that have been made redundant and a developer later relies on them, we must ensure that the process is effectively managed.

[Matthew Pennycook]

If I have understood the point correctly—I am more than happy to write to the shadow Minister and set this out in detail, but he can intervene if I have not got this right—the challenge is about applicants who in the past have relied on the provisions of the Transport and Works Act 1992 that we are today arguing are redundant, and how permissions obtained on that basis prior to the Planning Act 2008 interact with the changes in the clause. It is essentially a concern about retrospection in relation to the clause.

[David Simmonds]

We are zeroing in on the issue that I seek to highlight. The statement in subsection (3) says that the clause does

“not apply in relation to an application in respect of which a notice”

has been made

“before this section comes into force.”

Early on in his remarks, the Minister referred to sections of the Neighbourhood Planning Act 2017 that have not come into force, eight years after they underwent scrutiny in a Committee like this one and Parliament passed them. This clause may not come into force for some considerable time after we debate it in Committee and the Bill becomes law—indeed, it may never come into force. If the previous legislation remains the relevant legislation for an extended period, or if a developer sees advantage in securing a permission now, under the previous legislation, before the new measures take its place, do we have an appropriate process for dealing with that?

[Matthew Pennycook]

I understand the point, but I think the shadow Minister is conflating an application under the relevant provisions in the Transport and Works Act and what the clause seeks to clarify, which is when schemes are considered to be of national importance. As I said, with the Planning Act 2008, we have an Act of Parliament that provides very clear thresholds for when schemes are considered of national importance.

I am more than happy to write to the shadow Minister with further detail, but I think he raises a valid point. We think the redundant section 9 should be removed from the Transport and Works Act to give developers and public bodies clarity on how the law should be applied going forward, while also reducing administrative burdens. The easiest way—mindful of your strictures, Mrs Hobhouse—to move the Committee on and ensure that we can debate important clauses later in the Bill is for me to commit to writing to the shadow Minister with exhaustive detail on that point.

Question put and agreed to.

Clause 31 accordingly ordered to stand part of the Bill.

Clause 32

Duty to hold inquiry or hearing

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to consider clause 33 stand part.

[Matthew Pennycook]

Clauses 32 and 33 relate to public inquiries under the Transport and Works Act. Clause 32 will amend the circumstances in which an objection is considered to an application under that Act. Currently, if an objection is raised to an application under the Act, a public inquiry or hearing can be required to be held, even if the objection is deemed to lack substance. That can result in costly and lengthy public inquiries taking place, even where objections lack merit.

The length of the inquiry process can range greatly depending on the complexity of what is being examined, from six months to two years. Clause 32 will mean that a public inquiry is held only when an objection is raised that is considered by the determining authority to be serious enough to merit such treatment. A streamlined process for considering objections saves time and cost for applicants. All objections will continue to be decided—I want to stress this point—entirely on the merits of the arguments put forward. This not about removing the voices of individuals or communities; instead, it ensures that the objections process remains proportionate, so serious objections are given due attention.

Clause 33 makes amendments to section 11 of the Transport and Works Act regarding decisions on costs arising from a public inquiry. It will enable an inspector conducting the public inquiry to make decisions on those costs, unless the Secretary of State or Welsh Ministers direct that a cost decision is to be determined by them. Currently, the inspector must write a report with recommendations of costs to the Secretary of State based on the conduct of parties taking part in the public inquiry. That approach contrasts with the Planning Act 2008, where cost decisions are made by the examining authority.

By delegating the decision-making capability to the inspector conducting the inquiry, we will ensure that claims are resolved more quickly for all stakeholders. That will reduce administrative burden in determining such cases and save time, helping to deliver transport infrastructure more efficiently. The Secretary of State in England, and Welsh Ministers in Wales, will retain the ability to direct that a cost decision is to be determined by them should they not wish to delegate responsibility on a potentially contentious case. The clauses, as I have argued, will reduce unnecessary bureaucracy and administrative burdens, helping to deliver transport infrastructure more efficiently. I commend them to the Committee.

[Gideon Amos]

I rise to query some of the provisions. We understand that the Government’s proposal would effectively remove the automatic right to call a public inquiry. The Minister knows we are concerned that the Bill seeks to remove people from the process, and to remove the opportunity for objections in the planning process. That is a very serious concern for us. The clause proposes a public inquiry only where the Secretary of State

“considers that the objection is serious enough”.

--- Later in debate ---

It would be useful to get clarification on what exactly the Government mean by “serious enough”. There is, if I recollect correctly, guidance for inspectors in the Town and Country Planning Act on when to decide to hold a public inquiry as opposed to an informal hearing, or to consider an appeal by written representations. It seems appropriate that if the clause is to be brought in, there should be some guidance and reassurance on what is considered serious enough, because the proposed test in the clause is extremely arbitrary.

[Matthew Pennycook]

Hopefully I can provide the hon. Gentleman with further clarification. I recognise and appreciate the valid concerns he raises. As things stand, it is not the case that any objection to an application of the kind we have described results in a public inquiry or hearing, but it can in many instances give rise to one.

For example, when an objection comes from a landowner whose land would be affected by compulsory purchase; when a local authority for the area concerned receives an objection that they do not consider frivolous or trivial; or when other concerns are raised that need to be considered, a public inquiry or hearing takes place. In many circumstances, that is appropriate. In others, it may be the case that an exchange of correspondence, for example, can achieve the same goal without the need for a lengthy and costly public inquiry. I hope that gives him some reassurance as to the type of circumstances—

[Gideon Amos]

Will the Minister give way?

[Matthew Pennycook]

I am pre-empting what the hon. Member is going to intervene on, so I will finish making the point and he can come back to me. I hope he is reassured as to why we consider the change necessary, and the outcome that we are trying to achieve.

The hon. Member raises an entirely valid point about the fact that it will be for the Secretary of State for Transport to decide on a case-by-case basis when objections meet the test that he rightly reiterated. I will reflect on how we might provide further clarity, perhaps through guidance on the circumstances in which that test should be applied, but I recognise there is a fair challenge about what cases will come through this route.

I hope the hon. Member will recognise that the problem we are trying to resolve is that under certain circumstances, as things stand, a public inquiry or hearing can be triggered where it is not necessary, and there may be a far more proportionate way of moving things on and responding to objections—for example, in an exchange of correspondence. I hope that reassures the hon. Gentleman somewhat. As I have said, I am happy to reflect and come back to the Committee with further thoughts on this point.

[Gideon Amos]

I simply say that doing away with, effectively, an automatic right to a public inquiry in certain circumstances, as the Minister has clarified, and replacing that with the words “serious enough” is a big leap. I strongly encourage the Minister to put on record guidance on what relevant parties can expect will be considered serious enough to merit a public inquiry.

[Matthew Pennycook]

I do not have much more to add. There is a genuine problem with the current arrangements that we need to resolve. As I have said, in some circumstances a public inquiry or hearing is not necessary; things can be dealt with in other ways. Under the current arrangements, public inquiries and hearings can be triggered even if an objection is considered to be lacking in substance. That is onerous and disproportionate, but the hon. Gentleman raises a fair point about the basis on which the Secretary of State for Transport will determine whether the objection is of the relevant level of seriousness to require a public inquiry or hearing. I am more than happy to come back to him on that point in due course.

Question put and agreed to.

Clause 32 accordingly ordered to stand part of the Bill.

Clause 33 ordered to stand part of the Bill.

Clause 34

Deadline for decisions

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to debate clause 35 stand part.

[Matthew Pennycook]

Clause 34 provides a power for the Secretary of State or Welsh Ministers to introduce statutory deadlines for the determination of Transport and Works Act order applications. Unlike other infra-structure consenting processes, the Transport and Works Act process does not have statutory timeframes to govern the duration of its decision stage, and that can lead to uncertainty and delays. The clause will bring it into alignment with other planning consenting processes, such as the Planning Act 2008 process, and introduce greater accountability of decision makers.

Clause 35 seeks to modernise the way decisions under the Transport and Works Act are communicated. It enables the Secretary of State or Welsh Ministers to issue a notice online when publicising a decision on an application for a Transport and Works Act order and removes the requirement to publish the notice in the London Gazette. Moving to digital advertising will mean that notification of decisions can be done on the same day as decisions are finalised, which will ensure that there are no delays in communication and provide a more efficient service to interested parties. The clause also provides that any legal challenges must be filed within six weeks, starting the day after the notice is published, bringing the timeline in line with other consenting regimes.

By making use of modern technology, we will bring the Transport and Works Act into the 21st century, helping to speed up the process and deliver transport schemes more quickly. I commend the clauses to the Committee.

Question put and agreed to.

Clause 34 accordingly ordered to stand part of the Bill.

Clause 35 ordered to stand part of the Bill.

Clause 36

Fees for certain services

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

The clause allows the Secretary of State in England and Welsh Ministers in Wales to make provision in regulations for public authorities—limited to certain statutory bodies and local planning authorities —to charge applicants for their services in connection with Transport and Works Act orders. Currently, public authorities cannot recover costs for this work, and that can lead to delays because of a lack of resourcing. The clause will apply to parts of the Act associated with approving the construction or operation of railways and tramways, externally guided buses, monorails and certain other types of guided transport.

Supporting the capacity and capability of local planning authorities and statutory bodies will encourage timely and high-quality inputs into the process, which will speed up the delivery of highways infrastructure projects. I commend the clause to the Committee.

[Paul Holmes]

We welcome the clause and the clarification and certainty that the Minister has given, but I want to put some questions, along similar lines to those we have asked before, about transparency and limits or caps on the fees that authorities can charge.

We believe that without clear limits, there is a risk of inconsistent or excessive charges and a disproportionately wide range of fees across authorities. What mechanisms will be in place to allow applicants to challenge or appeal fees that they consider unreasonable? What impact does the Minister think this measure may have on smaller companies in the supply chain, which may be less able to absorb the costs that will be imposed? We do not disagree with the principle of the clause; we just have some questions about the detail.

Finally, how will the Secretary of State or Welsh Ministers review or update the regulations? As costs and administrative practices evolve, it is crucial that the regulations are reassessed regularly to ensure that they remain fair, relevant and effective. Will the Minister remark briefly on that and on some of the smaller businesses that may be affected?

[Matthew Pennycook]

I thank the shadow Minister for those points. The clause only allows for the charging of fees for services on a cost-recovery basis. I think there is broad agreement across the Committee that cost recovery for applications is a fair and proportionate way to proceed. Organisations will not be—