Infrastructure Improvements: Funding

Baroness McIntosh of Pickering Excerpts

Wednesday 23rd November 2016 Lords Chamber

Asked by

[Baroness McIntosh of Pickering]

To ask Her Majesty’s Government, further to the National Infrastructure delivery plan 2016 to 2021, what assessment they have made of the ability of the private sector to part-fund infrastructure improvements.

[Baroness McIntosh of Pickering (Con)]

In referring to my interests on the register, I beg leave to ask the Question standing in my name on the Order Paper.

[Lord Young of Cookham (Con)]

My Lords, the private sector plays a vital role in the financing and delivery of our infrastructure. The private sector will deliver around half of the projects due to complete in the next five years. The Government will continue to create the right environment to encourage private investment.

[Baroness McIntosh of Pickering]

Given the 2% increase in the insurance premium tax and the major housebuilding programme announced today, will my noble friend commit not to build any houses in inappropriate places, such as flood plains, but to undertake a major sustainable drainage building programme and invite more money from the private sector to fund flood defences, in particular the insurance sector and pension funds?

[Lord Young of Cookham]

My noble friend has asked three questions. On building on flood plains, whether planning consent is given for a particular development is a matter for local planning authorities, but my noble friend will be aware of the National Planning Policy Framework, which—I paraphrase—basically discourages development in inappropriate areas and encourages development away from areas at high risk of flooding. On drainage schemes, the Government have committed £2.5 billion of investment between now and 2021, and I believe that the Chancellor announced a further increase in the Autumn Statement a few moments ago. Finally, on private finance, the Environment Agency and local authorities can bid for private finance for schemes that are outwith the public sector scheme and, subject to value for money, they have a good chance of succeeding. There is a new partnering scheme whereby local communities and landowners can bid for funds alongside Defra and make progress with schemes which would not be able to go ahead if they were solely dependent on public finance.