Planning and Infrastructure Bill

Debate between Baroness Pinnock and Baroness Coffey

Committee stage
Monday 1st September 2025 Lords Chamber

[Baroness Coffey (Con)]

My Lords, I will speak to Amendment 82C; I have also tabled a number of other amendments in this group. In essence, this amendment considers bill discounts and community benefits.

I think it is fair to say that the Government have recognised the need for some benefits, but they have not been generous enough, in my view. That is why I also strongly support Amendment 83, tabled by my noble friends on the Front Bench, to make sure that we are sufficiently generous. I am convinced that that will go a long way to persuading—or at least giving some comfort to—householders in large parts of our United Kingdom who will suffer some of the consequential impacts of the acceleration of renewable energy involving pylons and similar.

In essence, I am also concerned that we seem to have lost the amount of electricity generation happening around the country. It seemed quite odd to me that people might get compensation for there being a pylon within 500 metres of them, but people living next to the generation of new substations and new nuclear power stations are not, as it stands, intended to receive any community benefit.

One of the successes of the French Government was to try to reduce the electricity bills of people living close to generation. That has long been considered a sensible way forward for a local community. I am not saying that everybody in those local communities wants to be, to use their words, “bought off” by a reduction on their bill, but it would go a considerable way with some of the frustration in the preparation of those huge construction projects as well as being an ongoing reminder that they are living near a nuclear power station. They may not have realised one was going to be built there—or a substation, or the like—when they moved to that area.

Clause 26 enables the establishment of the energy bill discount scheme. I have tabled a couple of amendments, that it should not be “may” but “must”. I am conscious that the noble Earl, Lord Russell, has also included “must” in Amendment 86. That matters to give absolute certainty to local communities that this will happen and that we will not have to wait for further consultation, commencements and the like, and that it will actually be done.

It is important that we consider not just nuclear, which I have referred to already—I do not think that I would qualify for any of that, by the way; I do not live too far away from Sizewell C, but nevertheless, there are plenty of people who qualify. We should also consider it for other energy projects, including wind farms and the like, especially recognising the Government’s proposals.

The Government’s proposed discount is only 25% of the £1,000 bill discount that the previous Government suggested, which has already been referred to in Amendment 83. However, it is clear that we need to make sure this gets to the households, so there are parts of this clause which are absolutely right to be included by the Government.

On Amendment 86, tabled by the noble Earl, Lord Russell, I recall that I was a Parliamentary Private Secretary to Michael Fallon a long time ago. I think it was back in 2013 that we started discussing what amount of money local communities should get. That reflects quite how long this discussion has been going on for. At one point, it was about business rate revenues: what would be retained, what would be kept by the council and what would be given to bill payers. It is important to make sure that as much of this money goes directly to local people as possible.

In terms of thinking this through, the Ministers may not have the answer today, and I do not expect them to have an answer on every single part of discussions about business rates retentions. However, it would be useful to understand where the Government have ended up on how much of business rates would be retained by local councils for the operation of all these different power plants which are busy being built around the country. I am sure that local government would welcome that clarity. Certainly, if 100% of the business rates of Sizewell C were to be retained in East Suffolk—indeed, by the new unitary authority in due course—they would be very happy indeed. That is not to say that East Suffolk keeps all that money; right now, it participates in pooling. Nevertheless, it is about recognising that this significant infrastructure in a very modest way provides some local community benefit which can be used for a variety of factors. It is for those reasons that generation as well as pylons need to be recognised in any bill discount scheme. I hope that the Government will be generous in that regard.

Forgive me, but there is one other amendment that I have forgotten to speak to. It would make sure that this cost is not borne by other taxpayers or bill payers. This needs to be considered in the cost of the project. We will discuss this more in the Moses Room on Wednesday, but, too often, when it seems that the Government are being very generous about discounts, rebates and similar, it is actually bill payers in other parts of the country who simply pay for that. We need to recognise that we have an electricity system that will of course bring some disruption in certain parts of the country where generation and other aspects of transmission are happening—we all need to pay our energy bills—but, for once, we should see some of the energy companies recognising the significant profits they will be making from those projects and that, for the future, they do not have to rely on bill payers paying for those benefits in the short term. I beg to move.

[Baroness Pinnock (LD)]

My Lords, Amendment 85 in my name seeks to explore the extent and purpose of the compensation proposed for new energy infrastructure, particularly with regard to electrical infrastructure that already exists. Can the Minister explain how the clause enhances schemes that currently exist in the form of wayleave arrangements and payments for use of land for pylons, for example? Will the new scheme, for instance, be consistent with current arrangements for compensation?

Clarity about the parameters used to determine those residents who will qualify for compensation for the new infrastructure is important in understanding the scale of the scheme as anticipated by the Government. In a press statement, the Government stated that households within 500 metres of new or upgraded electricity transmission infrastructure will get electricity bill discounts of up to £2,500 over 10 years, and that this will see rural communities receive hundreds of pounds in their pockets for hosting vital infrastructure. It continues:

“Alongside money off bills, separate new guidance will set out how developers should ensure communities hosting transmission infrastructure can benefit by funding projects like sports clubs, educational programmes or leisure facilities”.


That press release sets out the principles behind what the Government are proposing for new electricity infrastructure. As I am sure the Minister will know, there are already over 20,000 pre-existing pylons, which have been associated largely with coalfields. Hence, many of the clusters of pylons are close to those sites; in Yorkshire, for example. For those communities at that time, there was an expectation by the state that electricity transmission was for the common good. The question I want an answer to today is: where has that sense of common purpose gone? Why are we not still considering the idea that for major infrastructure projects where the whole nation will benefit communities will need to accept that for the benefit of everybody, as was done in the past?

In their press release, the Government state categorically that it is rural communities that will see huge financial benefit from the scheme. Obviously, I do not have any argument with that, but I question the argument for compensating residents in those communities now when communities with infrastructure constructed in a different generation were not. Can the Minister explain, for example, whether the compensation will be extended to the Yorkshire GREEN scheme, which is upgrading existing infrastructure down the spine of Yorkshire to enable more green infrastructure to be linked to the grid? It is an upgrade of older infrastructure. Will those communities benefit from this scheme?

Planning and Infrastructure Bill

Debate between Baroness Pinnock and Baroness Coffey

Committee stage
Thursday 17th July 2025 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, Amendments 24 and 25, in my name, relate to Clause 4, in which the Government seek to remove certain pre-application requirements. I am concerned about two of these. The first omits the duty to consult and the second omits the duty to consult the local community. These are very significant changes to pre-application requirements that were introduced in the Planning Act 2008. In my experience, pre-application is an extremely helpful part of the process, as it enables information to be shared and discussed by the communities that will be affected and their elected representatives—councillors and Members of Parliament.

The value of a pre-application duty to consult seems to me to be vital, particularly in relation to infrastructure schemes. The opportunity for communities that are affected to understand the proposals and their impact is much reduced by the process that is followed for large-scale infrastructure applications. For example, the process for large-scale infrastructure is set out very well in the Explanatory Notes, which talks about the pre-application process followed by the submission and acceptance of the application, then the pre-examination stage where members of the public can register as interested parties—although that is subject to some change—and then the examination in public. The opportunities for the general public, as opposed to those who feel they are able to take part in an examination in public, are extremely limited. Therefore, the pre-application stage becomes even more important in relation to large-scale infrastructure applications.

In my experience, the importance of the pre-application process is that it can be invaluable to both the developer and the local community. I will refer to an example not of a large-scale infrastructure application but for 400 homes on a site near where I live. There was a pre-application consultation stage with members of the public. The application was for a site that was known to have been used for coal workings, and the official coal board documents did not identify precisely where all the mine shafts were—they actually did not even know how many there were. However, residents whose families had lived in the area for a long time knew where the mine shafts were and shared that local knowledge with the developer. They were also able to share information, which did not seem to exist formally at all, of the shallow tunnelling on the site.

In this instance, the housing developer gained considerably from the pre-application process in knowing where the mine shafts were that would have to be capped off, and knowing where the shallow tunnels for the coal workings were, which could require attention during the construction phase. The local residents benefited because it enabled them to understand and be provided with factual information by the applicant.

In my view, the changes proposed in the Bill to remove the duty to consult with the local community would be totally counterproductive. Members of the community will get information about the proposals which may not be accurate if there is not a pre-application opportunity. I know from experience that, once inaccurate information is shared on social media sites, it is very difficult to counter and to get the actual situation accepted. The climate in which development takes place these days is for the public to believe that the worst is going to happen.

If the pre-application stage for large-scale infrastructure is believed to be too lengthy with too many parts to it, it seems to me that the best way forward would be to retain the principle of pre-application but to reform the process so that it was not so time-consuming and did not delay the construction processes. That is why the pre-application process is absolutely vital. Removing the duty will simply make the process more challenging for the developer and resentment and frustration will grow, both against the development and at the failure of the democratic process. Living in a democracy involves making time for debate and challenge; it is the price we on these Benches are willing to pay. I beg to move.

[Baroness Coffey (Con)]

My Lords, I will speak to this group of amendments. My noble friend Lady McIntosh of Pickering degrouped some of her amendments. Because I signed some of them, there is a risk that I might end up duplicating my words in the next debate, but that is not my intention.