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Lords ChamberThat the draft Regulations laid before the House on 9 and 16 June be approved.
Considered in Grand Committee on 3 September.
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Lords ChamberMy Lords, I thank my noble friend Lord Rooker for continuing to probe on this important matter. The Grenfell Tower Inquiry thoroughly and independently examined the cause of the fire and the roles of various actors. While it was referenced in the final report, the inquiry did not criticise Bureau Veritas for its role in lift inspections at Grenfell or cladding testing. Any legal or investigative matters now sit with the appropriate authorities.
I thank my noble friend for that, but is she aware that Bureau Veritas staff were inside flat 16 with the London Fire Brigade, as a contractor, before 1 am on the night of the fire, and that Bureau Veritas’s contract to inspect the lifts was out of time during the fire? On the final point, is the Minister aware that the firm that issued the quality management ISO 9001 certification for the cladding on Grenfell, made by Arconic, was Bureau Veritas in Philadelphia? I have looked at all the sites and I have not found anywhere any declarations of possible conflict of interest on all these points—that one firm was involved in so many aspects. I have only used three; there are other aspects that I could have used.
To respond to my noble friend’s important points, the Grenfell Tower Inquiry thoroughly and independently examined the cause of the fire and the roles of various actors and set out its findings publicly. Although referenced within the final report, the inquiry did not criticise Bureau Veritas for its role in lift inspection or cladding testing. The ISO 9001 certification and cladding assessment certification are two different things, and it is important that we do not confuse them. ISO 9001 is an international standard widely used to assess a company’s quality management system; it is not specific to a product. Bureau Veritas certified Arconic to ISO 9001 standards, but the product certification for the cladding that was used on Grenfell Towers was issued by the British Board of Agrément. The inquiry finding suggests that Arconic concealed test data from the British Board of Agrément. Any legal or investigative matters relating to this now rightly sit with the appropriate authorities.
My Lords, further to the Question from the noble Lord, Lord Rooker, on cladding, data published by the noble Baroness’s department a few days ago showed that of the 5,214 high-rise blocks with unsafe cladding, eight years after Grenfell over 50% had not started remediation, meaning that thousands of families are living in unsafe flats. What reassurances can the noble Baroness give to those people?
I thank the noble Lord, Lord Young. Over eight years on from the Grenfell tragedy, there is no justification for any building to remain unsafe. Our goal is clear: to remove all barriers to remediation, get buildings fixed faster and allow residents to feel safe in their homes. That is why in December last year we launched the Remediation Acceleration Plan, a comprehensive strategy to fix buildings faster, identify those still at risk and support affected residents. In July this year we published an update to this plan, introducing further measures to remove the barriers, strengthen accountability and expedite remediation. At present, 57% of all 18 metre-plus buildings identified with unsafe cladding have started or completed remediation, and for 18 metre-plus buildings with the ACM cladding, such as that in Grenfell, 97% of the identified buildings have started. We need to move quickly on this one to make sure that people are safe in their homes and feel safe.
My Lords, prosecutions of those whose decisions led to the 72 deaths at Grenfell Tower—eight years ago, as we have heard—are not expected until 2027. Does the Minister agree that justice delayed is justice denied? Can she confirm that prosecutions will begin in 2027, and can any remedies be implemented now to help those still at the financial mercy of insurance companies?
The police have said that this will take time. I know that all those who are victims and survivors will want this to move forward as quickly as possible—I completely understand their concern about that. This is one of the largest and most legally complex investigations ever conducted by the Metropolitan Police, with 180 officers and staff dedicated to the investigation. Those responsible absolutely must be held to account, and we fully support the police in this important work. That is why Ministers have agreed to provide up to £9.3 million to support the Met with additional costs of the criminal investigation in this year. We want this to move as quickly as possible, but it is very important that the investigation is conducted thoroughly and properly.
Lord Jamieson (Con)
My Lords, what assurances can the Minister give that the fire performance data supplied by manufacturers to certification bodies is independently validated before approval?
My Lords, that is part of the Remediation Acceleration Plan, and we will be looking very closely at how we properly validate. The noble Lord will be aware of the changes that were made to building control inspection under his Government. We need to move forward with a proper system of building control inspection so that we can make sure that the buildings that are constructed are safe. We have also announced some significant changes to the building safety regulator, with stronger leadership, new governance and a new fast-track process, which we hope will speed up building control for new build applications by bringing in in-house specialists. I hope that that will drive this forward as fast as possible.
My Lords, is the Minister aware that almost all of the £97 million allocated to the Scottish Government for remediation has been diverted to other functions, particularly some of their vanity projects? Will she have a word with her colleagues in the Cabinet Office and the Treasury to see what can be done to stop this misappropriation of money?
Of course, housing is devolved in Scotland, and it is up to Scottish Ministers to do what they need to. I am sure that my colleague from the Treasury sitting on the Bench with me has heard what my noble friend said and will take the necessary action.
I thank the noble Baroness for her reply and take this opportunity to associate these Benches with the earlier comments and expressions of gratitude to the noble Lord, Lord Ponsonby of Shulbrede, for his ministerial service— proof, if it were needed, of the invaluable role hereditary members continue to play in this House.
The Grenfell inquiry report made it clear that Arconic, Saint-Gobain and Kingspan all had a direct responsibility for the death of the victims in that horrendous tragedy. Can the Minister assure us that the Government have no commercial relationship with any of those firms, government agencies will not enter into commercial relationships with any of those firms, and Ministers will not appear at events sponsored by those firms complicit in murder?
Before I answer the noble Lord’s question, I thank him for his comments about my noble friend Lord Ponsonby, but I point out to him that my noble friend is in fact a life Peer. We truly value his service.
In response to the question about public contracts, we are, of course, absolutely committed to exploring all available options to take action to hold to account those companies which were criticised by the inquiry. In that spirit, the Cabinet Office said it would launch investigations into seven organisations, using the new debarment powers that came in the Procurement Act 2023. I have to say, however, that the Met Police and the Crown Prosecution Service informed the Cabinet Office that debarment investigations might unintentionally prejudice the criminal investigation, so the Cabinet Office then concluded that it was right to pause the debarment investigations while the criminal investigation was going on. However, I completely understand the noble Lord’s point, and we will do all we can to make sure that those who are responsible are brought to account.
Does the Minister agree that one of the reasons for such widespread disillusion in our society about public life is the failure of both companies and people to be held properly to account after a disaster? Looking not just at Grenfell but more widely, what more could the Government do to reassure the general public that both companies and individual people will be held responsible when things go wrong?
It is very important that those responsible for such issues are held to account as quickly as possible. There will eventually be a duty of candour, ensuring that those who are questioned on such matters respond in a timely and honest way. However, in this case the legal and investigative matters are sitting with the appropriate authorities, and it is very important that we let them carry out their work effectively. It is the shared responsibility of government, regulators and industry to deliver legislative and systemic change when an issue such as this comes forward. We will take every recommendation made to us. We have already delivered significant reforms to building safety, but it is very important that the accountability phase is carried out thoroughly and properly and that people can feel that those responsible for this most horrendous of tragedies are held to account.
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Lords ChamberTo ask His Majesty’s Government what steps they are taking to accelerate planning delivery as set out in their Plan for Change, published on 5 December 2024.
The Government are delivering a set of pro-supply, pro-growth planning reforms. We have updated the National Planning Policy Framework, introducing bold new growth focus measures to underpin the delivery of 1.5 million safe and decent homes. We are also reforming the nationally significant infrastructure projects regime to maximise certainty and speed, and our Planning and Infrastructure Bill will speed up and streamline the delivery of new homes and critical infrastructure, including the delivery of 150 nationally significant infrastructure projects. I know that the noble Baroness takes a particular interest in AI; as the AI champion in the department, I am very pleased to tell her that MHCLG and DSIT, together with the sector, are championing the use of AI in planning with our digital planning programme.
My Lords, I thank the Minister very much for that Answer, and I am grateful for her comments on all those initiatives and also on AI. She will be aware that the previous Housing Secretary delivered only 186,000 net additional dwellings, which is the lowest for over a decade; worse still, permissions are down by 23%. I did see that the new Housing Secretary said he wants to “build baby build”, and he can, by backing Amendments 346DD and 346DE in the name of my noble friend Lord Roborough, to which I have added my name, which would release 160,000 homes stalled by nutrient neutrality. Will she have a go at persuading him?
On the delivery of previous Housing Secretaries, it did not help having 17 different Housing Ministers over the last 14 years. We want to get moving on this. I was very pleased to welcome our new Secretary of State this morning, and I know that Secretary of State Reed is just as keen as the rest of us to get delivering on this. I am very pleased that there were over 90,000 planning applications in the first quarter of 2025; that is up 6%. We are, as the noble Baroness will know, debating all the amendments in the Planning and Infrastructure Bill in some depth, as we did last week, and I am sure we will continue to do so.
My Lords, the ONS reported that, of the 2.7 million homes that were given planning consent since 2015, only 1.7 million have actually been built, which means that 1.2 million are still on the books of the big housebuilders. This points to serious systemic issues, such as land banking, yet the current focus is only on the planning system. Does the noble Baroness agree that just changing the planning system will fail to resolve the urgent need to build more homes?
I say to the noble Baroness that changing the planning system is a key part of it, but it is not the only part of the jigsaw. We need to improve the skills capacity in both planning and construction. We also need to unblock some of the sites she mentioned that are currently blocked in planning. Our new homes accelerator, working with the department and Homes England, has unlocked significant numbers of homes already. We have unblocked over 63,000 homes so far, including a further 43,000 homes over the last four months. On 5 August, we announced another six sites that the accelerator has identified for targeted support. We are also helping local government, so that it is able to insist that planning applications are built out, once they are applied for and got.
My Lords, for some years now planning departments have been hollowed out, specialist planners and experienced planners have resigned and there is a critical need to introduce more planners to make all the housing ambitions realistic. Can the Minister tell us what the Government’s policy is towards recruiting and accelerating planning specialists, so that we will see renewed energy in the planning system in terms of applications?
I am grateful to my noble friend for highlighting a key issue. The Government have announced additional funding to support the recruitment and training of 300 graduates and apprentices into local planning authorities. That is part of a wider £46 million package of investment in the planning system to upskill local planners to ensure they are able to implement the reforms that we are putting through, ensuring—and this is very important—that everywhere has a local plan in place. That will help them to resist the type of planning they do not want to see. We are also allowing authorities to set their own fees through the Planning and Infrastructure Bill, and ensuring these fees are retained in the planning system to improve the overall service.
Lord Jamieson (Con)
My Lords, as my noble friend Lady Maclean pointed out, this Government are already well behind on their target of 1.5 million new homes. With planning permissions granted in the first half of this year falling to below 100,000—the lowest since 2012—does the Minister believe that removing the lower rate for inert waste, which would potentially add £25,000 to the cost of a new home, will be helpful in achieving that 1.5 million target?
Could the noble Lord repeat what he is asking to be removed?
Lord Jamieson (Con)
There is currently a consultation going on regarding the cost of disposing of waste. Inert building waste, such as earth, will potentially be charged at the full rate, rather than the current discounted rate, which will potentially add £25,000 to the cost of building a new home. Will that help deliver your 1.5 million target?
As we have done since we came into office, we are looking at all obstacles to delivering new homes, working very closely with the sector. I have had a number of issues raised with me; we continue to look at those, and I will be discussing them with the new Secretary of State. We will continue, as I mentioned on the housing accelerator programme, to look at any barriers to see whether there are things we can do to speed this process up.
My Lords, does the Minister agree with the National Audit Office’s report in June of this year, which said that the discussion and negotiations on planning matters were between two very unequal partners: on the one side, the local planning authority, which is underresourced and understaffed; and on the other hand, the large-scale developers that employ expensive consultants and legal experts to negotiate down their obligations and contributions? Will the efforts of the Government to bolster the planning departments redress this ridiculous imbalance?
I thank the noble Lord for those comments. Of course, he has great expertise in this area, which I recognise and welcome. I think there are a number of things being done in the Planning and Infrastructure Bill to address that imbalance. I think the resources that we are putting into the planning system will help with that. A £46 million package is a significant investment. We need to upskill our local planners to make sure they are able to implement reforms and drive the scale of growth that we want to see. I am not saying we will offset that balance completely, but I am sure that speeding up the planning process and providing planners with much more delegated authority to deal with application themselves will help.
My Lords, one of the problems with developing houses is developers land banking. Do the Government have a policy or plan to stop developers banking land and building on it years and years later?
There are proposals that mean that, at the time that a planning application is delivered, local authorities can specify when that application needs to be built out. So we are taking steps to ensure that, once an application has received approval, it is built out as quickly as possible. It is in no one’s interest for vast areas of land that can be built on not to be built on, so we will make sure that we deliver as much as possible. The new homes accelerator has already moved this on a considerable way.
My Lords, in response to that answer and further to what my noble friend Lady Pinnock said, this needs government co-ordination and government action, not just local authority action. Will the Government look at a land value tax for those that land bank?
I know that land value taxes have been looked at many times over the years and that the noble Lord’s party promotes them, but they are much more complex than is sometimes set out by those who promote them. We have no current plans to do that, and I would not want to lead the noble Lord up the garden path in thinking that we do. At the moment, we think that the steps we are taking will significantly improve the delivery of both new homes and the infrastructure needed to support them. We will carry on down that route and hope that we get to where we want to be.
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Lords ChamberMy Lords, I do not envy the Minister having to respond to this very cogent debate, which at first sight seemed important but not as in-depth as it has turned out to be. We on these Benches strongly support the amendment in my noble friend’s name, and she made a very strong argument for its adoption. Other key points have been made and we have broad agreement with them, dependent on the detail that will come, I guess, from the Minister.
First, on listed building consent, which is currently free—not the project itself but the actual listed building consent—we would support that remaining free of charge for the owners of those listed buildings. The noble Lord, Lord Parkinson, clearly made the very strong case for its continuation. I hope that the Minister will be able to give us a categorical reason for its retention.
Secondly, on enforcement and appeals, it seems to me that the legislation that enables costs of appeals to be made ought to be enforced and enacted, and the money should go to where it belongs—not to the Treasury but to the Planning Inspectorate. Again, that was a strongly made argument with which we have broad agreement.
Finally, the issue raised by the noble Lord, Lord Young of Cookham—which he and I raised during the long debates on the levelling-up Bill—has come back again. He rightly raises the issue, as I did at the time, that councils ought to have a local plan and, without it, the planning system falters or, indeed, often fails. It would be good to hear from the Minister what actions the Government intend to take to encourage and enforce the idea of all councils having a local plan, albeit within the context of further reorganisation of local government, which will put such concentration of energy on to a strategic planning system for local councils in jeopardy.
This has been a really good debate, and we have broad agreement with all the points that have been made.
My Lords, that was a very interesting, wide-ranging, detailed and thoughtful debate around many planning matters, including some of the amendments that had been tabled. I am very grateful to all noble Lords who have taken part. As a planning geek myself, it is never a trouble to listen to these types of discussions. I will answer some specific points, but I would like to make a couple of general comments first.
In introducing her amendment, the noble Baroness, Lady Scott, asked for a more radical approach to planning. The noble Lord, Lord Young, set out the radical approach even better than I could myself. I have, of course, heard completely opposing views on the Planning and Infrastructure Bill before us, with one set of people saying that it is too radical and another saying it is not radical enough. I always think that if you get to there, you are probably in about the right place, but your Lordships will be the judge of that.
The Bill is a step in driving forward the infrastructure planning and changes to planning that we want to see in order to get economic growth going, but it is not the only step. As the noble Lord, Lord Young, outlined, as we continue with our planning for new authorities, there will be further change in introducing the strategic plans—that is coming forward in the English Devolution and Community Empowerment Bill. I look forward to debating those changes with noble Lords in due course.
The noble Lord, Lord Young, also mentioned the investment that is needed in planning. We are very aware of the fact that the cuts to local government funding that we all experienced over a couple of decades have meant that the investment in planning was not always there. We have already put £46 million in to try to improve the investment in planning and the quantity and capacity of planning departments. We will continue to work on that.
The noble Baroness, Lady Pinnock, raised the issue of local plans. We are already making progress on that. The Secretary of State has made it very clear to local authorities that she expects to see local plans in place. You jeopardise the whole process of development in this country when you get an out-of-date local plan, and developers can ride roughshod over local wishes because there is no local plan in place. It is a very important part of the process. The noble Lord, Lord Young, raised the issue of how these local plans will be reconstructed when we get new authorities in place. Of course, much of the work will have been done. We will not need to redo all the studies; they can be aggregated into those wider plans. But it is important that those plans will be in place.
To pick up a point that is not in these amendments, I say to the noble Lord, Lord Fuller, that I am aware of the issue with level 7 apprenticeships in planning. I was very keen on planning apprenticeships and having that route to good quality and more capacity in planning teams. I am discussing that with colleagues in the Department for Education and will comment on that further when I have had more discussions with them.
Turning now to Amendments 94FB and 94 FC, tabled by the noble Baroness, Lady Scott, I understand the importance of ensuring that local planning authorities or the Mayor of London are not burdened with unnecessary obligations, particularly in relation to fee setting. That is why I want to be very clear. The Government’s intention is to pursue a local variation model. The approach will not require local planning authorities or the Mayor of London to set their own fees but instead provides those authorities with the option to vary from a national default planning fee where they consider it necessary to do so to better meet their costs.
However, we believe it is important to retain a flexibility within that power. The inclusion of “or require” preserves the ability to mandate local fee setting should there be a compelling case for it in the future—for example, to improve service delivery or address disparities in performance. Removing that flexibility would risk constraining our future ability to evolve the system. The noble Lord, Lord Lansley, talked about how we will monitor planning performance. He will know very well that an extensive planning monitoring regime in already in place, which local authorities have to meet. Keeping an eye on this, as well, will help with that. I hope the noble Baroness will agree that retaining this power in its current form represents a balanced and prudent approach and that she will agree to withdraw her amendment.
I am grateful to the noble Baroness, Lady Thornhill, for tabling Amendment 94G. I am entirely in accord with her on the importance of ensuring that fees are proportionate to the nature and size of the planning application. In her very clear explanation of her amendment, she rightly highlighted the importance of our SME building sector, which we also saw highlighted, as she will remember, in the report of the Competition and Markets Authority. I share her intent to do all we can to support SMEs. Indeed, it was a local SME builder who helped me kick off my housing development programme when I was a council leader. It was a mutual arrangement—we helped support them and they helped support what we were doing. There can be very good arrangements locally.
However, the Bill already provides a clear and robust framework to ensure that planning fees are proportionate. The noble Lord, Lord Fuller, and the noble Earl, Lord Lytton, mentioned the proportionality issue. As I just mentioned, the Government intend to introduce a local variation model under which a nationally set default fee, developed through benchmarking and public consultation, will serve as a baseline, as is currently the case with planning fees. To answer the noble Baronesses, Lady Thornhill and Lady Neville-Rolfe, this will account for variations in the size and nature of sites.
The model ensures both consistency and transparency in fee setting while allowing local planning authorities the flexibility to depart from the nationally set default fee where circumstances warrant. The Bill requires that any locally set fee must not exceed the cost of delivering the relevant service—I hope that picks up the point made by the noble Lord, Lord Lansley—and that local communities must be consulted on proposed changes. Importantly, the Secretary of State will also retain the power to intervene where fees are considered inappropriate, thereby providing an important safeguard to uphold consistency and equity across the system. I am therefore confident that the Bill already addresses the concerns that this amendment seeks to resolve.
On Amendment 95, tabled by the noble Baroness, Lady McIntosh, I agree that well-resourced planning departments are essential in enabling the development that our communities need, but also for safeguarding those communities from unauthorised or harmful development. We appreciate the intention of the amendment in supporting the resourcing of enforcement activity but, as planning enforcement serves the wider public interest, it is appropriate for local authorities to allocate funds to support these services. Allowing planning authorities to raise planning fees to cover enforcement costs could result in disproportionately high fees. We are concerned that that may deter development at a time when we are committed to accelerating housing delivery and getting Britain building.
To answer the noble Baroness’s question directly, this was not an oversight in drafting the Bill; we did consider it. More broadly, the Government have, as I have already mentioned, committed to the £46 million package of investment to support the capacity and capability of local planning authorities.
I am most grateful for the Minister’s response to the amendment. My concern is that it looks as though the Government are going to build on functional flood plains. That is why the role of property resilience measures is so important, and why the enforcement should be included in the fees. So, I hope she will think again.
I am grateful to the noble Baroness for that and for her long-standing lobbying on flooding issues. We have a group of amendments later today on flooding. I hope that I can pick up some of the questions she has raised under those amendments.
I am grateful to the noble Lord, Lord Parkinson, for his Amendment 96, which seeks to ensure that guidance to local planning authorities on setting planning fees explicitly advises them to include the costs of essential services, such as archaeology, provided by local authorities. We recognise that, especially in two-tier areas, planning authorities may need to obtain expertise from other authorities to determine applications. Where local authorities choose to set their own fees, they will be expected to take account of the costs incurred in obtaining such contributions and reflect them appropriately in their fee-setting process.
As I have just highlighted, we are currently undertaking a national benchmarking exercise and engaging with local planning authorities to develop a consistent and evidence-based approach to local fee setting. A consultation on the national default fee schedule and the framework for local fee setting will then be published later this year. These matters are best addressed through secondary legislation and detailed guidance, as that provides the flexibility we may need—I can see the noble Lord nodding; he has probably given that answer himself from the Dispatch Box—to respond to evolving practice and local circumstances. That is particularly true in planning, which is such a dynamic area. As such, I do not consider it necessary to place the requirement in primary legislation.
My Lords, I declare my interest as a vice-president of the Local Government Association. I apologise to the Committee, as I should have done that earlier.
Under the previous Government, as part of the capacity and capability programme, the planning skills delivery fund was established to support local planning authorities to manage backlogs and strengthen professional expertise. Around £24 million was committed over a two-year period, in recognition that, for far too long, a shortage of skilled planners has represented a barrier to effective development and regeneration and the delivery of sustainable communities. I am pleased that this Government have continued that funding.
It has been clear from the debate that, across all sides of your Lordships’ Committee, there is a shared recognition of the central importance of training, whether, as we have heard, on good design, the urgent challenges of climate change and biodiversity, the practical application of planning law or, importantly, building healthy communities—as ably argued by my noble friend Lord Moynihan on his Amendment 99AA.
There is broad agreement that both elected members and professional officers must be equipped with the knowledge and confidence to take decisions in the public interest. I am particularly grateful to those noble Lords who have spoken on and reinforced the value of a well-trained planning system not only for councillors but for planning officers and, indeed, all those who play a formal role in shaping or determining planning applications. Ultimately, if we want a system that is trusted, effective and capable of delivering the homes and infrastructure that our country needs, investment in skills and training must remain at its heart.
I particularly thank my noble friend Lord Fuller for his Amendment 103. His contribution underlined that training should not be regarded as simply a local requirement but as something that ought to apply consistently across all levels of government, including civil servants and Ministers. That emphasis on alignment between national and local implementation is an important reminder that central government must also hold itself to the same standards that it expects of local authorities. He is also right about the importance of driving up standards in decision-making. I therefore ask the Minister to set out how the Government intend to align central and local government training standards. How will they help bridge the gaps between national policy direction and local implementation?
I also thank and support my noble friend Lord Lansley for Amendment 162, which requires local authorities to appoint a chief planning officer to ensure professional leadership. I am sure that the Government can do nothing but support this amendment. If they do, I would be interested to know what the Minister thinks a chief planning officer’s role might be in co-ordinating central government, local authorities and industry stakeholders.
Amendment 99A from the noble Lord, Lord Thurlow, also raises the important issue of design. In government, we did important work on design, and it was very disappointing when the Government announced the closure of the Office for Place. Well-designed homes that are in keeping with local vernacular are what local residents want and what this country needs, which is why design has such an important role to play in planning. Therefore, can the Minister give the House a clear assurance that the Government still recognise the important role that good design plays in housing delivery? In addition, how will the Government ensure that the future training requirements are properly supported so they are realistic for local planning authorities already under considerable pressures? How can we be confident that training will genuinely enhance decision making, rather than becoming a formality, and how best can consistency across the system be achieved while still respecting the role of autonomy in planning? These are important questions that have been asked in the last hour or so, and I look forward to hearing the Minister’s reflections on them.
My Lords, I thank the noble Baroness, Lady Boycott, and the noble Lords, Lord Fuller, Lord Thurlow, Lord Moynihan and Lord Lansley, for their amendments, and all noble Lords who have spoken in this very important debate around training. I agree with what noble Lords have said generally about the importance of training in this area. I thank the noble Lords, Lord Shipley, Lord Best, Lord Carrington and Lord Banner, as well as the noble Earl, Lord Lytton and the noble Baronesses, Lady Bennett and Lady Sater, for their contributions, which are much appreciated.
Before I started working on the Bill, I did not realise that it was not compulsory for members to have training in planning. It has always been compulsory on my local authority, both at county level and Stevenage level, and I was quite shocked to find out that it was not compulsory.
Before I refer to the amendment from the noble Lord, Lord Thurlow, I did not really recognise his description of rows of box-type construction. Since I became a Minister, I have visited literally dozens of construction sites across the country, from Durham to the Isles of Scilly, and from Greenwich to Northern Ireland. What I have seen is that they do not have this issue. There is certainly not a lack of regard for design, biodiversity or zero carbon. We have a dynamic building industry, overseen in planning terms by local councillors and officers who genuinely want the best for their communities. I have seen some excellent examples. I am sure there are some that are not as excellent as some of the ones I have seen, but this is a very dynamic industry, and it is doing its best to provide homes and communities for people across our country.
I turn to Amendments 99A, 99AA and 100, which seek to ensure that the training of committee members includes climate change, biodiversity, ecological surveying, design and healthy placemaking. I assure noble Lords that the Government believe that all these matters are crucial to good planning, and all feature strongly in the national planning policy framework. To respond briefly to the noble Baroness, Lady Scott, on her point about design, the Government are absolutely committed not just to good design in the properties themselves but in placemaking as well. That is set out in the NPPF and in design guides, and we will be publishing our future homes and building standard later this year, which will go further in setting out what we expect. I always had a rule when I was a council leader that I would not build any homes that I would not want to live in myself. I hope to apply the same guidelines as a Minister.
I would expect these matters to feature in any training for planning committee members. For instance, it would be unthinkable for the training not to mention that there are special statutory requirements for biodiversity net gain. The Government believe, however, that it is unnecessary to stipulate all that in the Bill. It is customary to use regulations or guidance to set out details with regard to the implementation of planning law, and the training of planning committee members should not be an exception.
The details for the training are currently under development. We will continue to engage with local government and industry to ensure that the training covers all the basic principles of planning. It would be impractical in primary legislation to provide a complete list of matters that must form part of the training content. This is an area that develops all the time, and we want to make sure we have a mechanism for changing it as things change.
There will be an element of local consideration in this. For example, I think chalk streams were mentioned by the noble Baroness, Lady Bennett. I have chalk streams in my area; they are not right across the country. Everyone should know about them, in my view, and I always talk about them. If you lived in an area where they were present, you might want more training on that aspect.
Furthermore, such a list would have to be kept up to date. That process would take up valuable time in Parliament to amend the Bill.
Amendment 101 seeks to include National Highways, local highway authorities and integrated transport authorities as local planning authorities to which mandatory training will apply. Although National Highways, local highway authorities and integrated transport authorities are intricately involved with spatial development, they are not local planning authorities and do not have a decision-making role in planning committees, which is the focus of this Government’s training reforms. We therefore do not believe that it would be appropriate to extend the provisions to them.
Amendment 102 raises important questions about who the training should apply to. The Government introduced mandatory training for members of local planning authorities to improve the decision-making process for the many planning applications that are considered by local planning authorities every year through the planning committees and delegated authority. Many councillors sitting on planning committees are proficient in planning matters, but that is not necessarily the case, nor is it expected to be. Councillors are lay people with busy lives, juggling their councillor duties with other responsibilities. It is important that we get the balance right between training that is necessary for them to be able to take their decision-making properly but also to enable them to make the kind of decisions that make sense to local people. The training is therefore aimed at them so that they better understand the key principles of planning. In doing so, we want to ensure there is a higher level of debate and consistency in decision-making across the country.
The noble Baroness, Lady Thornhill, rightly raised the issues of standards. I pay tribute to our planning officers. They face unacceptable behaviour from the public but also, occasionally, regrettably, from councillors. I can reassure the noble Baroness that I am about to embark on a significant piece of work with the code of conduct task force. We will be talking about that more in the early part of next year.
The training is not intended for officers of local planning authorities with responsibility for making or advising on planning decisions, nor any other person to whom decision-making functions are delegated. That is because it can reasonably be expected that all officers who have a formal responsibility for advising on or determining planning decisions are recruited with an emphasis on professional planning qualifications or have extensive planning experience. As we know, they are also able to call in support from experts on key issues where it would not be proportionate for a local authority to have that expertise in house.
On Amendment 103, for similar reasons, the training is not intended for civil servants who make decisions on behalf of Ministers. As noble Lords will be aware, if an applicant appeals or applies directly to the Secretary of State, a planning inspector considers the case. They are planning professionals recruited for their expertise and the Planning Inspectorate provides them with considerable ongoing training.
On the training of Ministers, it is important to highlight that Ministers need, and get, bespoke training and support to fulfil their decisions. They also operate within the Ministerial Code and planning propriety guidance. It is probably a good soundbite to say that Ministers should also be subject to the same training requirements as a councillor. From a personal point of view, I welcome training. I have had some training, and I am happy to take it on. But I understand that in practice the role is different. We therefore do not intend to extend these mandatory training requirements to Ministers who make planning decisions—for instance, when they call in applications.
Lastly, Amendment 162, tabled by the noble Lord, Lord Lansley, ably assisted by the noble Lords, Lord Shipley and Lord Best, seeks to make it a statutory requirement for local planning authorities either separately or jointly. The noble Lord is quite right to point to the practical approach of local government in some areas in developing joint planning functions to improve their capacity and resilience, and the scope of their work, which can often help with recruitment and retention as well—and the noble Lord also spoke about appointing a suitably qualified chief planning officer.
I share the noble Lord’s ambition of ensuring that all planning decisions are made with professional leadership. I am not convinced that we need to put the chief planning officer role on a statutory footing. We need to consider what a very clear rationale for such a step might be, and I am very cautious about overlegislating as the Government believe that local authorities are best placed to determine the structure of their planning departments. In practice, local planning authorities already have a senior officer who performs a function similar to that of a chief planning officer, but I will continue to reflect on that because as we go through the process of the further changes we are anticipating to the planning system, I think we need to consider it further. I hope to carry on discussions with the noble Lord and others on that. For now, for these reasons, I ask noble Lords not to press their amendments.
Lord Fuller (Con)
Before the Minister sits down, I have a question. She mentioned that when Ministers—who are lay people, not specialists in this field or professionally qualified in planning—take decisions, they are so advised. I cannot quite get in my mind the distinction between a Minister making a quasi-judicial decision on planning and a councillor or a mayor. None of us has mentioned mayors, but mayors are contained within the provisions of the Bill. Of course, I understand why the Secretary of State might want to resist having to get a qualification, but that is not really answering the point because this is not just about the Secretary of State and the Minister for Local Government. This is about Secretaries of State and Ministers throughout all the departments of state, including the Treasury, which is setting planning policy and so forth. Can the Minister help me by explaining clearly what the distinction is and why the Government appear to be resisting this so strongly?
I come back to the point I made that if an applicant applies to the Secretary of State, a planning inspector would consider the case and then advise the Minister or the Secretary of State who was taking the decision. Planning inspectors are highly qualified and highly trained. Regarding the training of Ministers, we have access to bespoke training. I have undertaken some training. Because we have to operate within the Ministerial Code and planning propriety guidance, when we are making decisions we have a different call on us from that in local planning committees.
My Lords, my noble friend Lord Fuller does not need to keep the Minister on her feet. This being Committee stage, he has the right to speak as many times as he likes.
I encourage the Minister to take further the last sentiments she expressed in the context of the amendment from the noble Lord, Lord Lansley, and the words spoken by the noble Earl, Lord Lytton. It is important that we do something to increase the status of planning officials in local government. I have observed the effect that having chief scientific advisers in government departments has had on science and the way it is regarded within ministries. Over time it has had a really salutary effect. Having a chief planner, someone with that name and status, would be a good way of working back, providing status to the planning profession and making sure, as the noble Earl, Lord Lytton, said, that we get a collection of people who understand the limits of their knowledge and the advice that they are given and that the public trust them in that regard.
As a small contribution to that, I have tabled an amendment to the Children’s Wellbeing and Schools Bill to try to rescue level 7 apprenticeships. If the Minister was able to have a word in the ear of her colleague, the noble Baroness, Lady Smith, to encourage her to give a positive response to that, that might solve a range of problems, not only for planning but for other professions where level 7 is an important qualification. The point that my noble friend Lord Fuller made about the importance of taking people who have entered the profession at the technician level and upskilling them to professionals is an important part of a healthy society.
Lastly, I associate the qualities of determination and optimism with the Minister, but does she really believe that we will get to Amendment 135? If she is wavering in that belief, it would be a great help to noble Lords, when the Government realise they might fall short, if they could tell us so that those of us who have amendments late in the day might find an opportunity for more time with our families.
To take the noble Lord’s last point first, my optimism and determination is to get to Amendment 135, but we shall see. I hope I have reassured him on the point about continuing to reflect on the issues around chief planning officers. I think I already responded to the noble Lord, Lord Lansley, on that, so I hope that reassures him.
I am impressed with the advocacy standing behind the amendments in this short group. It has taken a lot longer than I thought it would. It is clear that there is a real concern regarding the crisis in provision in the planning process and the emphasis on training needs. All these amendments should be non-controversial from a political point of view. They are about supporting apprenticeships and training at all levels and improving the positive aesthetic, pride in planning and career opportunities.
I thank the Minister for agreeing, in her very first few words in winding, with all the amendments proposed—if I heard her correctly. Perhaps that was agreement in principle. I am particularly pleased that she does not recognise my reference to street upon street of matchbox lookalike developments. I think we have been travelling in different directions. As a surveyor, I do a great deal of travelling in the car and on trains. I think the objective is the same and, like the noble Lord, Lord Carrington, I think we have to make absolutely sure that the massive developments that will arise from the housebuilding targets the Government have announced do not descend to the lowest common denominator of design and appearance.
I am afraid I am nervous about the reference to addressing our concerns across the group by way of regulation and delegated authority. We all know where that sometimes leads. We will doubtless return to the Minister’s comments on Report.
My Lords, I thank the noble Baronesses, Lady Pinnock, Lady Scott and Lady Coffey, and the noble Lords, Lord Jamieson, Lord Lansley and Lord Cameron, for their amendments. I also thank the noble Lords, Lord Inglewood and Lord Fuller, for their contributions to this discussion. This group of amendments relates to Clause 51 on the national scheme of delegation, which was debated extensively in the other place and during Second Reading in this House.
I thank the noble Baroness, Lady Pinnock, for her recognition of the need to develop greater consistency and equity in the planning process. Of course, the other motivation is to ensure that councillors can focus their attention both on local plans, where they can really make a difference to place-shaping, and on those local applications that genuinely benefit from their input. Having been a councillor for 27 years, sitting on the planning committee listening to a two-hour debate on whether a fence should be four feet high or five feet high, I think there is a good case for focusing attention on what matters.
I turn first to Amendments 103A and 103B. I understand that these are probing amendments to understand the rationale for the Secretary of State’s powers to issue guidance on the national scheme of delegation and composition of planning committees and why they are not subject to the regulatory procedures which can be scrutinised by Parliament rather than setting it out in primary legislation itself. These powers for the Secretary of State to issue guidance are auxiliary to the main powers to make regulations about the national scheme of delegation and the composition of planning committees. The regulations will set out the key requirements and the guidance will supplement them.
As many of us know, the planning system is very complex and nuanced, and there are often calls for clear guidance to complement planning regulations. In line with other powers for the Secretary of State to issue guidance within the planning system, we do not propose to make this guidance subject to regulatory procedures. However, there is a clear requirement for the Secretary of State to consult on the guidance along with regulations before reissuing it. This enables all stakeholders, including local planning authorities, to comment and feed into the draft guidance.
On Amendment 104 from the noble Lord, Lord Cameron, he asked about national parks authorities—which includes the Broads Authority. They are a special class of local planning authority which make planning decisions for their area. Due to the different governance arrangements and the nature of development in these areas, they were deliberately excluded from the national scheme of delegation provisions, which applies only to conventional local planning authorities. Development corporations and Homes England, when acting as the local planning authority, were also excluded for similar reasons. The justification for intervention in the reform of committees includes creating a more consistent approach to applications for housing development and delivering more predictable outcomes in the planning system in order to achieve growth and support the delivery of 1.5 million homes. There is less imperative to intervene in national park authorities, where we do not envisage large-scale housing developments.
Amendment 105 seeks to make regulations relating to the national scheme of delegation subject to the affirmative procedure, as just commented on by the noble Lord, Lord Fuller. I am not convinced that this amendment is needed. It is common practice across planning legislation for regulations of a detailed and technical nature such as these to be subject to the negative procedure. I also draw the Committee’s attention to the fact that the Delegated Powers and Regulatory Reform Committee has published its report and has not raised any concerns about either this power or the proposed procedure. Of course, this does not mean there will be no further scrutiny of the proposed regulations. We have included a safeguard in the Bill to require the Secretary of State to consult appropriate persons before making the regulations. In practice, this means that key stakeholders, including local planning authorities, will be able to respond on the detailed proposals to ensure that they will work effectively in practice.
Just to pick up the point the noble Lord, Lord Lansley, made on NDMPs, it is the intention to publish the NDMPs—I am going to say “in due course”; he knows I do not like that expression, but that is where we are—and I will follow up in writing to him about whether these will automatically be delegated. I think that is under consideration, but I will respond to him in writing on that. However, we do hope to publish them as soon as possible.
I will address Amendment 103ZA, tabled by the noble Baroness, Lady Coffey, and Amendments 135HZE and 135HZF, tabled by the noble Lord, Lord Jamieson, together as they both deal with the types of application which should go to committee. Taking Amendment 103ZA first, it would require applications for development not included in the local plan, or for a housing density lower than that specified in the plan, to be determined by committee. I appreciate the sentiment behind this amendment. The Government also want to ensure that the right development happens in the right areas, and our brownfield-first policy is designed to achieve that. However, there are many applications involved in development which do not conform with a local plan. That does not mean they are all controversial—many are not—and therefore I do not believe that they all need to be considered by committee.
Amendments 135HZE and 135HZF from the noble Lord, Lord Jamieson, deal with whether certain types of applications should go to committee or not. Taking Amendment 135HZE first, as the noble Lord will know, it is very common for there to be valid planning objections to an application. This amendment would give free rein to committee chairs and chief planning officers to take a great many more applications to committee. As such, it would undermine the whole purpose of the national scheme of delegation, and therefore the Government cannot support it.
Lord Jamieson (Con)
I thank the Minister for allowing me to interrupt. I am slightly curious: the Government trust a planning officer to make a decision on something, but they do not trust them to determine whether there is a genuinely valid objection to an application? I find that slightly curious.
We trust planning officers, but we do not want to undermine that scheme of delegation.
Amendment 135HZF seeks to ensure that any applications by the council itself or any of its employees or councillors where there are no objections do not need to go to committee. While I understand the noble Lord’s reasons for tabling such an amendment, I again think that this is a matter best dealt with in the regulations rather than in the Bill. Indeed, the recent technical consultation on planning committees sought views on the treatment of such applications. I can therefore assure the noble Lord that we will consider his suggestion alongside the formal responses to that consultation.
To conclude, I assure noble Lords once again that Clause 51 is not about taking away local democratic oversight. It is about improving the system to allow planning committees to operate more effectively in the interests of their communities and to give them the time to focus their attention where it really matters.
I now turn to a series of amendments tabled by the noble Baroness, Lady Pinnock, which seek to remove the requirement to create regulations needed for the framework for a mandatory national scheme of delegation and would replace this requirement with a power to make statutory guidance. They would also remove the ability for the Secretary of State to control the size and composition of planning committees.
The Government have been very clear: we want to see a national scheme of delegation introduced to ensure greater certainty across the country and to speed up decision-making to support the delivery of 1.5 million homes during this Parliament. I emphasise that these reforms are a real priority for this Government. We need to ensure that the legal framework for the national scheme of delegation is robust and clear, and that is why we need to legislate for it through regulations. Statutory guidance is not sufficient to provide the certainty and consistency that we want to see.
I also disagree that we should not legislate to control the size and composition of planning committees. I fully accept that many planning committees have slimmed down in recent years and are nearer the optimal size for effective engagement and debate. However, there are still too many which are unwieldy, undermining the quality of decision-making. We firmly believe that there remains a strong case to have powers to regulate the committees’ size and composition. With these explanations, I kindly ask noble Lords not to press their amendments.
My Lords, I thank everyone who has spoken in this debate about the practicalities of planning application decision-making. I thought the most telling point that the Minister made was in her introductory remarks, when she said that the Government want councillors to focus on local plan making. Local plan making is an absolutely vital building block to planning decision-making, because it sets the local policies within the framework of the National Planning Policy Framework, and it sets out and, in theory, agrees sites for development by business, commerce or for housing—or institutions of various sorts.
In my long time as a local councillor, I have taken through, I think, three or four local plan-making processes, and all my experience tells me that it is very difficult to get local people to engage in the theory of site allocation and what it will mean for them. And that is why I have made the case I have today. Yes, local plans are vital and set the foundations for a plan and for place making for an area, but, equally, we need the flexibility within that for local people to have their say. If local people do not have their say, that essential safeguard, that essential safety valve of an open public discussion about an issue which is controversial, will be taken away, to the detriment of local democracy and national democracy.
However, with those points, and thanking everybody who has contributed to the debate, because it has been a good one, I beg leave to withdraw my amendment.
Well, well, my Lords. I start by thanking the noble Baroness, Lady Scott, for her amendments and for notifying us of her intent, alongside the noble Lord, Lord Jamieson, to oppose that Clause 51 stand part. I will turn to the notice of opposition first. I was tempted to dive straight in to the other amendments, but I will come to those in a moment.
Clause 51 will give the Secretary of State the power to introduce a national scheme of delegation for planning decisions. This will set out which planning functions should be decided by officers and which should be decided by planning committees. It will also give the Secretary of State the power to set out requirements around the size and composition of planning committees. I am aware that some view these powers as an erosion of local democracy. I cannot stress enough that this is absolutely not the Government’s intention.
We recognise and value the vital role that planning committees play in ensuring that decisions on what and where to build are shaped by their communities, and we know that most committees make fair and well-informed decisions most of the time—there are, of course, exceptions to that rule—but we believe there are issues around the operation of planning committees that we need to address. These include: a lack of clarity and consistency across the country on which applications will be determined by committee; too much time spent considering applications that are compliant with the local plan or considering niche technical details, such as the one-foot fence height difference that I referred to earlier, including post-permission matters that are best dealt with by professional officers; and a lack of transparency of committee decisions and their consequences.
Clause 51 is aimed at tackling these issues and ensuring that planning committees can operate more effectively. It is intended to allow committees to focus on the applications that really need their input and that matter most to their communities. Together with the mandatory training for members under Clause 50, through this clause we want to see the day-to-day operation of a planning committee transformed, with planning committees making informed decisions in the interest of their community. No one who has been in local government for a while—I think most noble Lords in the Chamber today have been—can honestly say that there is no improvement to be made in the performance of planning committees. With councillors focused on the local plan and key planning applications, we think this improvement can be achieved.
I turn to Amendments 135HZB, 135HZC, 135HZD, 360A and 360B. First, I trust that the noble Baroness will understand that I cannot comment on ongoing legal proceedings, and I do not intend to do so. The Home Office has a legal obligation to provide destitute asylum seekers with accommodation while their application for asylum is being considered. The Government absolutely recognise the obvious and very legitimate concerns that people have about the use of asylum hotels; we have been clear that we will stop the use of hotels to house asylum seekers, and we have already made progress. As the noble Lord, Lord Carlile of Berriew, commented, at peak, under the previous Government in 2023, more than 400 hotels were in use. Now just over 200 remain in use, and that number is coming down all the time. That is a reduction of 6,000 people staying in hotels.
You do not need a very long memory to go back to when there were no asylum hotels—I could go back to 2016, when that was the case, but I prefer to go back to my three years of arguing with the previous Government about the use of hotels in my area. The noble Baroness, Lady Scott, commented that we should give local communities the agency that they deserve—I think those were her words. Her Government did not listen; they did not listen to communities, local government or representations from those working with asylum seekers, and they did not listen to businesses across this country, such as the international businesses I have in my area that need the hotels for the effective operation of their businesses. Her Government forced asylum hotels on us and left us with the mess to clear up.
In a very powerful contribution to yesterday’s debate, the noble and learned Baroness, Lady Butler-Sloss, said that it was “astonishing” that an Opposition who passed legislation very effectively but were not effective in solving the problem are now criticising the Government for failing to do in one year what they failed to do in 14.
We will do the job of cleaning up the mess. We will sort it out, but instead of chucking bricks at each other, I strongly agree with what the noble Lord, Lord Deben, said yesterday. First, a degree of humility from the party opposite would be very welcome—he said that, not me—and we should absolutely work together to solve this complex issue. Complex issues need careful solutions, not knee-jerk reactions to those who seek to use this issue to divide our country. As well as hypocrisy, I sense a bit of opportunism, and I do not think that is the right way to go; we have to work together on this issue. Knee-jerking will impact worst on those who deserve it least.
Another shocking legacy of the last Government is the 165,000 children in temporary and emergency accommodation. If we do not get a proper solution to hotel closure, the danger is that those children will go further to the back of the queue.
As for the points about the Rwanda scheme, that scheme cost billions and only four volunteers were ever returned. It was a waste of public money. The noble Lord, Lord Alton, again in yesterday’s debate, very powerfully set out some further concerns about Rwanda. It is time we stopped chucking bricks at each other on this key issue and started working together to resolve it.
In my view, this amendment would result in greater instability in the provision of asylum accommodation and prevent us from proceeding in the controlled and orderly way that we want to. I am grateful to the noble Lord, Lord Banner, for his comments on this—as has been said in the Chamber, he has more planning knowledge than the rest of us put together—but I know he will know that this is a much more complex issue than can be dealt with by one approach. All these different hotels were granted planning permission by different local authorities, they all had different conditions placed on them and local authorities are looking very carefully at their own hotels to see how they might proceed with this.
I assure the noble Baroness, Lady Scott, that we take very seriously the concerns about the use of hotels to house asylum seekers and we are already taking action, but I am afraid that I just cannot support these amendments, which I suspect were laid for a different purpose altogether. For these reasons, I kindly ask the noble Baroness not to press her amendments.
Finally, on Amendment 346DB tabled by the noble Lord, Lord Howard, I want to start by thanking him for the insight shared; it is good to be reminded that our debates can be incredibly serious but also very spirited, and that is a good thing. This amendment would remove the legal protection afforded to bats under the Conservation of Habitats and Species Regulations 2017. The noble Lord will of course be aware that, as part of our plan for change, the Government are committed to turning the tide on nature’s decline. This means that we are of course committed to protecting our most precious species and upholding our international obligations towards the environment. However, we recognise that people can experience issues with the existing system and there will understandably be questions as to the level of protections afforded to bats and other species and how these protections can affect the delivery of homes and infrastructure.
Amendment 346DB would completely remove all bats from the habitats regulations, regardless of their vulnerability. This would risk undermining our ability to deliver on our commitments under international law, which includes protection for bats. The sweeping removal of protection is too blunt, and this issue requires careful consideration and nuance. We will of course continue to explore further options to improve the handling of interactions between bats and development, including through the nature restoration fund—I am sure we will have a very full debate on that when we get to it—and we will establish a new way to manage the interaction between development and protected sites and species.
Although the nature restoration fund will provide another route to address the impact of development on protected species, we are already delivering a suite of measures to practically improve the interactions between bats and development. As well as progressing actions recommended by the landmark Corry review on environmental regulation, which will remove duplication, ambiguity and inconsistency for developers, Natural England is also expanding its earned recognition scheme for bat licences, which provides a streamlined route to licences that saves developers time and money. Under earned recognition, permissions are determined three or four times more quickly than for standard licences. In addition, Natural England is expanding its popular pre-application advice offer, which can expedite planning applications and avoid unexpected surveys or repeat applications. Finally, it is developing a pilot to test quicker and cheaper bat roost survey options so that less is spent on surveys and development can begin sooner.
Having said all that, I hope that noble Lords will not press their amendments.
Lord Jamieson (Con)
My Lords, I will discuss the serious issue of flooding risks. I thank my noble friend Lady McIntosh of Pickering and the noble Baroness, Lady Grender, for their hard work and amendments to the Bill, which I shall discuss in further detail in a moment.
Flooding threatens our communities and livelihoods with increasing frequency and severity. As the noble Baroness, Lady Grender, mentioned, some 6.3 million properties in England are located in areas at risk of flooding from rivers, the sea or surface water. I am experiencing—and I am sure others have experienced this as local councillors—ever-increasing incidences of flooding on our patches.
Flooding negatively impacts many aspects of people’s lives. The noble Baroness, Lady Grender, mentioned some examples, and I can attest to examples in my own area and to seeing people flooded out of their homes two or three times in the space of three or four years. It upsets their health, finances and mental health. Can the Government confirm that protecting communities most at risk of flooding is a priority for them?
My noble friend Lady McIntosh of Pickering has rightly tabled Amendments 108, 109, 155 and 156 to help ensure that the consideration of flood risk is not overlooked in the planning permission decisions. We support her in her objectives and hope the Government will take this issue with the seriousness it deserves.
I also thank the noble Baroness, Lady Grender, for her Amendments 135B and 135C, on having regard to a development’s impact on the flooding and flood resilience in the broader area. There are, however, concerns regarding the potential scope and practicality of the broader point of assessing the impact on climate resilience.
On Amendment 227A and the incorporation of flood resilience in new buildings, this should be done on a risk-based approach. As we enter the autumn and winter months, it is imperative that the Government are well prepared for the flood risks soon to be faced by millions up and down this country. What procedures do the Government have in place to fulfil their duty of ensuring that strategic flood-risk assessments are up to date? Can the Minister take this opportunity to assure noble Lords that the Government’s flood preparedness is adequate and that Ministers stand ready to implement flood recovery measures rapidly where flooding occurs?
My Lords, I thank the noble Baronesses, Lady McIntosh of Pickering and Lady Grender, for their amendments on flood risk and resilience in the planning system. I also thank many Members of this Chamber. The noble Baroness, Lady McIntosh, and I had lots of discussion about flooding during the passage of the levelling-up Bill. I know that lots of Members in this House worked very hard to draw these risks to the attention of the House and the wider public.
I agree with what the noble Baroness, Lady McIntosh, said about the devastation that it causes. I visited Calderdale—I was doing a peer review there—very shortly after the terrible flooding that the area experienced in 2020. The impact of that was still very live; in fact, some of the shops were still shut because they were still damp. One thing that particularly struck me was that the only way of communicating during that flood, which, from memory, happened over the Christmas period, was to go back to pinning notices on the village noticeboard, because all the infrastructure—IT and everything—had gone down. They could not use phones and could not travel, so they were pinning notices on the old village noticeboard. These are terrible events.
The amendments raise very important issues about how we plan for and mitigate the impacts of flooding, particularly in the context of climate change. I can assure all noble Lords—the noble Lord, Lord Jamieson, specifically asked me the question—that the Government take these issues very seriously. We are acutely aware of the misery, disruption and costs that arise from flooding, of the increased risk associated with climate change, and of the need to maintain a robust approach to managing these risks. I agree with the noble Lord, Lord Jamieson: we cannot overestimate the impact not just of flooding itself, which is awful, but of the fear of flooding when people live in properties subject to it. My area is not flood-prone, but we occasionally get flash floods when there is a big storm, which causes water ingress to people’s properties. I remember talking to a constituent about their terrible fear. As soon as it started to rain quite heavily, they would worry that it would happen again. How much worse that must be if you live in a flood-prone area, I can only imagine. It is not just the flooding itself; it is the fear of floods that impacts people.
The noble Baronesses, Lady McIntosh and Lady Bennett, mentioned the work being done by the Environment Agency. It has commissioned an independent review of property flood resilience. It is not just an untargeted review of this, but a specific review around property flood resilience. The review will seek to identify current gaps and opportunities to grow the property flood resilience market, resulting in a new action plan. That review will report to the Environment Agency and Defra in autumn 2025.
I think it was the noble Baroness, Lady Willis, who referred to the investment the Government are putting into flood resilience and maintaining flood defences. She is correct: we are investing £2.65 billion over two years—that is, 2024-25 and 2025-26—to build and maintain defences. That includes an additional £108 million that we are reprioritising into asset maintenance, ensuring that an additional 14,500 properties will have their expected level of protection maintained or restored. I repeat that because it shows, I hope, that the Government take these issues seriously.
Amendment 108 proposes a statutory ban on residential development in areas that fall within flood zone 3. Although we fully recognise the importance of directing development away from areas at the highest risk of flooding, this amendment would prevent development in large urban areas already protected by robust flood defences. For example, significant parts of Hull and central London lie within flood zone 3 but benefit from engineered flood protection. Under this amendment, development in these areas would be prohibited, even where it can be made safe for its lifetime and does not increase flood risk elsewhere.
The National Planning Policy Framework already includes strong protections which make it clear that inappropriate development in areas at risk of flooding should be avoided by directing development away from areas at highest risk, including flood plains. I understand the scepticism of the noble Baroness, Lady Willis, about the NPPF, but I do not think that any planning inspector would accept a local plan submitted by a local authority that did not conform with the NPPF in terms of placing houses in flood risk areas, unless significant mitigation measures were put in place to prevent flooding.
Our policy means that new housing and most other forms of development are not appropriate in a functional flood plain where water has to flow or, importantly—the noble Baroness, Lady McIntosh, mentioned this—be stored in times of flood. Where development is permitted, it must be demonstrated that it will be safe for its lifetime, taking account of the vulnerability of its users.
I turn to Amendment 109, which proposes mandating property flood-resilience measures in all new homes at high risk of flooding, and Amendment 227A, which proposes introducing a requirement for specific flood-resilience features in all new homes. Improving resilience in properties subject to flood risk is an important objective. Reflecting this, the building regulations already support flood-resilient construction in areas at risk of flooding, while ensuring that properties that do not require further flood-resilience measures are not burdened with unnecessary costs. Requiring flood-resilient construction for all new dwellings would be disproportionate, given that many are located outside areas of current or projected flood risk. Designers of new homes may also choose to follow the Construction Industry Research and Information Association code of practice, which includes installing flood-resilient features.
I turn now to Amendments 135B and 135C, which would require local planning authorities to assess both the flood and climate resilience impacts of developments and whether a development could increase flood risk to neighbouring land, alongside introducing an annual reporting duty for the Secretary of State. Assessing the flood risk implications of development, as well as climate mitigation and adaptation more broadly, is already a requirement under the National Planning Policy Framework. The framework is clear that for development to be acceptable it should not increase flood risk elsewhere and should be safe for its lifetime if located in an area where flood risk exists.
Similarly, Amendment 155 seeks to place other aspects of national flood risk policy on a statutory basis—namely, the sequential and exception tests. We can agree about the importance of these policies, but it is important that policy on complex issues such as flood risk is capable of being adjusted as new evidence and issues arise. As I mentioned—I will mention it again—the National Planning Policy Framework plays a powerful role in the planning system. Both plan makers and planning decisions must have regard to it. It is not guidance in the usual sense of the word; it is a very clear part of the statutory planning process. These amendments would not only replicate this but introduce unhelpful inflexibility in our ability to keep policy under review.
The proposed reporting requirement set out in Amendment 135C would also impose a significant reporting obligation on the Government. Local planning authorities are already responsible for ensuring compliance with planning permissions and conditions, including monitoring and taking enforcement action if necessary.
Finally, Amendment 156 on strategic flood risk assessment maps would require local authorities to ensure that their maps are based on the most up-to-date data from the Environment Agency. This is already expected practice. Local authorities are required to use the latest available data when preparing strategic flood risk assessments, and the Environment Agency regularly updates its flood-mapping tools. Mandating updates in statute could impose administrative and financial burdens, particularly for smaller authorities.
My Lords, I thank my noble friend Lady McIntosh of Pickering for these amendments. They are aligned with the shared principle of fairness where development will impact existing communities and infrastructure. In this case, they speak of the need to ensure that businesses already existing in an area do not suffer as a result of the development. I absolutely agree that it is often music businesses or noisy businesses that cause these discussions, and they should be protected: they were there first and everybody should put up with them, in my opinion. They should not suffer as a result of any further development or have unreasonable restrictions placed on them, as I have seen in the past, which does not seem fair. Does the Minister believe that the agent of change principle should have a statutory weight on it, rather than being solely in the NPPF? I think that is the important issue here.
Moreover, Amendment 111 tabled by my noble friend Lady McIntosh of Pickering touches on the role of local government as the arbitrator between the business and the developer. This highlights an important issue as we seek to balance the need for social stability with the growth that the Chancellor is promising, and I think these issues will come forward more and more in the future, so we need to get this sorted.
There is no denying that we need more housing—that is clear—but development must always go hand in hand with local economic needs. Without that balance, we risk creating a dormitory town, stripped of social fabric and disconnected from opportunity. How will the Government ensure that local authorities across England are supported to strike this essential balance?
My Lords, I thank the noble Baroness, Lady McIntosh, for tabling these amendments, and the noble Earl, Lord Clancarty, the noble Lord, Lord Foster, and the noble Baroness, Lady Scott, for their comments. I share the desire of the noble Baroness, Lady McIntosh, to ensure that new developments do not place unreasonable restrictions on existing businesses and are integrated effectively into their surroundings, and the point that the noble Baroness, Lady Scott, just made that live music venues are the things that make our communities vibrant and alive. We have just had our fantastic Old Town Live festival in Stevenage, in a series of music venues right along our high street; they are the things that bring people together and make it a good place to live.
The agent of change principle is already embedded in the National Planning Policy Framework. I reiterate my comments earlier that, although the National Planning Policy Framework is not a statutory document in itself, it forms part of the statutory planning process. The Government are clear that where the operation of an existing business or community facility could have a significant adverse effect on a new development in its vicinity, the applicant or agent of change is responsible for providing suitable mitigation before the development has been completed.
Local planning authorities can also use planning conditions to make developments acceptable by addressing specific concerns, such as environmental impacts from noise pollution—for instance, by the use of engineering to reduce noise at source, or the use of noise insulation to mitigate the impact of noise on residents. Where they receive complaints, local authorities are obliged to take reasonably practicable steps to investigate. This allows them to consider a variety of factors in determining whether a complaint constitutes a nuisance in the eyes of the law. Additionally, local licensing authorities can incorporate the agent of change principle into their statement of licensing policy if they consider it useful to do so. This is at their discretion, as they are best placed to understand their own local context.
I understand the desire to embed these principles into law, but we believe this to be unnecessary given the provisions that already exist. It also risks increasing the number of legal challenges to developments. We will continue considering how the agent of change principle can be better implemented within the planning system through national planning policy reform. For these reasons, I kindly ask the noble Baroness, Lady McIntosh, to withdraw her amendment.
My Lords, I am extremely grateful for the support I have received from those who have spoken, in particular the noble Earl, Lord Clancarty, the noble Lord, Lord Foster, and my noble friend Lady Scott.
The Minister is missing the point. Each of those who spoke explained how the NPPF is not working because it is not on a statutory basis, and that the integration and harmony we would like to see between residential properties and businesses is being harmed by this. The very fact that one of the venues that Ed Sheeran sang at early in his career has since closed, along with the other examples we heard from the noble Earl, Lord Clancarty, shows the importance of this.
I again ask the Minister whether she would be minded to have a meeting before Report with those who have expressed an interest in this area today, because I really believe that we need to progress this and put it on a statutory footing. In the meantime, I beg leave to withdraw the amendment.
My Lords, I speak to Amendments 112 and 185H in the names of my noble friend Lady Coffey and the noble Earl, Lord Clancarty. At the heart of this debate lies the recognition that housing is not merely the business of bricks and mortar, nor simply the provision of shelter; it is about the creation of places where people may live, thrive and belong; it is about communities, places to call home.
Cultural values matter profoundly. They matter both in housing and community building. When we lose the local pub, the music venue—as we have heard—the sports club or the community hall, we do not simply lose a building; we strip away the places in which people meet, share experiences and forge common bonds. These are the lifeblood of our neighbourhoods.
Assets of community value are often deeply rooted in local history and identity, as we have heard many times this afternoon. Protecting them is a necessity for living in communities and a gift to future generations. In government, we invested in the community and cultural assets through the levelling up fund, which the Government have since scrapped. But we, as a party, will continue to champion our cultural assets in opposition.
Amendment 112, in the name of my noble friend Lady Coffey, has the benefit of simplicity. This is a straightforward change in law that could save many important community assets. Amendment 185H is a little bit more complicated. If the Government were to accept the principle of this amendment, we hope that Ministers would be able to flesh out a little more detail on their intentions in the Bill. We do not want a need for delegated powers and then it goes into the ether.
If we are to build not only houses but homes, not only developments but communities, then these questions to the Minister are of no small importance.
My Lords, I thank the noble Baroness, Lady Coffey, and the noble Earl, Lord Clancarty, for tabling these amendments which relate to the assets of community value scheme, and the noble Lords, Lord Fuller and Lord Freyberg, the noble Baronesses, Lady McIntosh, Lady Thornhill and Lady Scott, for contributing to the debate. This is an important scheme to enable communities to identify local assets that are important to them and to protect them for future community use. I am grateful for the commitment of noble Lords to ensuring that the scheme provides robust protections for a broad range of community assets, including cultural assets.
I thank the noble Baroness, Lady Coffey, for mentioning the Cavern Club. Some of us are heading up to Liverpool in a couple of weeks’ time, and I am sure I will renew my acquaintance with the Cavern Club. The noble Earl, Lord Clancarty, talked about a relationship between culture and locality—if there was ever an iconic one, it is that relationship between Liverpool and the Cavern Club.
Amendment 112 would add assets of community value to those buildings that are excepted from the demolition permitted development right. This would mean the owner of a listed asset would need to submit a planning application if they wished to demolish it. Concert halls, live music venues and theatres are already excluded from the demolition permitted development right. In addition, the Secretary of State and local planning authorities have the power to remove certain permitted development rights more widely in their area, through the making of an Article 4 direction, provided there is justification for the direction’s purpose and intent. I trust that the explanation provides sufficient reassurance to the noble Baroness and the noble Lord, and I therefore kindly ask the noble Baroness to withdraw the amendment.
Amendment 185H would create a separate assets of cultural value category that would operate in a similar way to the existing assets of community value scheme. However, it would specifically protect arts and cultural spaces that are of importance to the community or foster specialist cultural skills. This would enable community bodies and other bodies to nominate cultural assets, and if a listed asset is put up for sale, provide a set period for this body to put in a bid to purchase the asset to maintain it for cultural purposes. The cultural value of the asset would also be a material consideration in planning decisions.
Noble Lords will be aware the Government have recently introduced the English Devolution and Community Empowerment Bill, which contains new provisions to give communities a right to buy valued community assets. Through this change, we have amended the current assets of community value scheme to ensure that it is as strong as possible at protecting locally important assets. This includes updating the assets of community value definition to help bring more assets into scope of the policy, including those that support the economy of a community and those that were historically of importance to the community.
Lord Jamieson (Con)
My Lords, I will speak briefly to Amendment 113, tabled by my noble friend Lord Lucas, which raises an important and thought-provoking issue that merits the attention of your Lordships’ Committee and the Government’s consideration.
Amendment 113 concerns the use of termite-resistant wood in new-build homes. My noble friend Lord Lucas draws attention to the risks that they pose. Although historically more common in warmer climates, they may become prevalent here as our own climate changes and, as he mentioned, as they inevitably move further northwards from France. The damage that termites can inflict on timber structures is both severe and costly. In regions where infestations have taken hold, the consequences for home owners, insurers and local authorities have been profound. As temperatures rise, it is only prudent to consider the resilience of our housing stock to such emerging risks.
While I will not take a definitive position on the amendment, I commend my noble friend for raising these matters. They speak to the broader challenge of building homes that are not only fit for purpose today but resilient to the demands of tomorrow. I look forward to hearing the Minister’s response on how the Government intend to engage on this important issue.
My Lords, I am very grateful to the noble Lord, Lord Lucas, for tabling Amendment 113. He is right that I was not intimately acquainted with the procedure of termites in France. However, I do now know far more about the house longhorn beetle than I have ever known, and I will continue to look at this issue.
The noble Lord may have been in the Chamber on Monday when we were discussing wood being used in construction. I mentioned an office development I visited, which is just across the river from Parliament, and which makes extensive use of wood in its construction. We will see more of that; wood is a good building material and developments such as that are good uses of wood. It is therefore very important that we take these matters extremely seriously.
The noble Lord’s amendment seeks to prevent planning authorities from granting planning permission for new-build homes if timber construction products specified at planning stages are not termite resistant. Fortunately for us, termites are not endemic to the UK. Even though an infestation was recorded in the 1990s, that was subject to a successful eradication programme.
While I appreciate the noble Lord’s intention, the Building Regulations, rather than the planning system, are the appropriate way of establishing minimum legal requirements in the design of new building work. The sanitary arrangements we have in place to regulate timber imports allow us to remain vigilant. The Government take the view that mandating termite resistance in any wood used for construction materials in new-build homes would be a disproportionate measure, leading to an increased cost for developers and consumers, and adding to local planning authority burdens. However, if a threat were to emerge, guidance on timber products for new development and suitable wood treatments could be included in Approved Document A, which accompanies the Building Regulations for structure.
I hope I have given some reassurance to the noble Lord; nevertheless, I ask him to withdraw his amendment.
My Lords, I am very grateful for that reply, even though I had hoped for something more positive. I did take out of that, given the caution that the Minister expressed about raising costs for housebuilders, that the rumours of a change to the landfill tax are probably erroneous. I beg leave to withdraw my amendment.
Lord Jamieson (Con)
My Lords, I shall speak to Amendments 114, 118 and 119, tabled, respectively, by the noble Lord, Lord Inglewood, and the noble Baroness, Lady Pinnock, and introduced so ably by their deputies—sorry, substitutes. These amendments seek to improve the quality and accountability of consultation within the planning system. Amendment 114 seeks to make the Gardens Trust a statutory consultee for developments affecting historic parks and gardens. These are not just green spaces; they are vital heritage assets, and their protection should be part of the planning process.
Amendment 118 seeks to require pre-application consultation with the emergency services where developments may affect their operations. Too often, the fire and ambulance services are brought in too late, after issues arise, not before.
Finally, Amendment 119 addresses a more systemic issue: the need for meaningful consultation with communities. It would require the Secretary of State to consider how developers have engaged with local people before accepting applications for development consent. The message is clear: consultation should be early, serious and able to influence outcomes. It should not be just a tick-box exercise.
The role of a statutory consultee is important in the planning process, and it is right that appropriate bodies are consulted. However, it is also important that their responses are timely and pragmatic and do not unduly delay the planning process. Expanding the list of consultees may be justified but we must at all times have an eye on the risks of delay and overburdensome rules in the planning system, too.
Ultimately, these amendments are about restoring public confidence. When people feel genuinely listened to, development is not only more likely to succeed but more likely to be supported. Relationship building is intrinsic to successful planning. This helps everyone: communities, planners and developers alike. I look forward to the Minister’s response.
My Lords, I thank the noble Lords who tabled these important amendments and their two substitutes for speaking to them. I thank all noble Lords for their patience in a very long Thursday Bill session; I am grateful to them all.
Amendments 114 and 118, tabled by the noble Lord, Lord Inglewood, and the noble Baroness, Lady Pinnock, seek to designate the Gardens Trust and the emergency services as statutory consultees within the planning system. I begin by acknowledging the contributions these organisations already make across a range of functions. When you have been involved in planning, you know how important that expert advice is on significant environmental, transport, safety and heritage issues to make sure that we end up with good decision-making.
However, on 26 January the Chancellor announced a pause in the introduction of new statutory consultees, pending a broader review of the current framework. The Housing Minister subsequently issued a Written Ministerial Statement on 10 March, setting out the Government’s intention to reform the system to ensure that statutory consultees can provide timely and expert advice that supports high-quality development. The Government will be consulting on those proposed reforms shortly.
The Statement also set out our intention to consult on the impact of removing certain statutory consultees, including the Gardens Trust. This reflects a desire to streamline processes and address duplication, as Historic England already holds statutory responsibilities for higher-graded parks and gardens. This is a consultation only, and no decision will be made until we have fully considered the feedback on potential impacts.
The Government also intend to consult on their approach to the introduction of new statutory consultees, recognising that risks and responsibilities of course evolve over time. This consultation will reflect the fact that there must be a high bar to creating new statutory consultees if we are to avoid exacerbating current issues of uncertainty, bureaucracy and delay. We should be requiring consultation on a case-by-case basis only if it is not possible to address matters strategically. Input is often effectively secured through local plans, including engagement with the emergency services, such as designing out crime; and where case-by-case engagement is warranted, local authorities already have the discretion to consult these bodies on a non-statutory basis.
Furthermore, in considering potential additions to the list of statutory consultees, it is essential that the roles of existing statutory consultees should not be duplicated, and that functions already addressed through other regimes, such as building regulations, should not be duplicated either. The fire and rescue service, for instance, already must be consulted on relevant plans as part of the building safety regulations, while the Building Safety Regulator oversees and approves work for high-risk buildings. Meanwhile, the Health and Safety Executive operates a hazardous substance licensing regime and is a statutory consultee on development applications which may be impacted by this.
Finally, although we deeply value the insights provided by a wide range of organisations during public consultations, statutory consultee status carries with it a legal obligation to respond within prescribed timeframes. That is a very significant responsibility, and sometimes even existing consultees—sometimes even upper-tier councils if you are in a district council—face challenges in meeting the requirements. For this reason, we believe the threshold for granting such status must remain appropriately high.
As I have set out, we intend to consult on these matters soon. If decisions are taken to introduce new statutory consultees, this can be done through secondary legislation under existing powers.
Amendment 119 proposes that the Secretary of State consider how community consultation has been carried out when deciding whether an NSIP application should be accepted for examination. It suggests specifically that the Secretary of State must consider whether the application has sought to resolve issues, enabled interested parties to influence the project during the early phases, obtained relevant information about the locality, and enabled appropriate mitigation through consultation.
We agree that engaging communities can support applicants to improve their applications by enabling them to identify issues important to the local community, to understand the likely impacts of the scheme, and to consider potential mitigations. However, as we have seen over our time debating these clauses, we know that the existing statutory tests related to consultation do not achieve that in a proportionate way.
We know this because evidence shows that existing statutory pre-application consultation requirements, the scale and specificity of which have been unique to the NSIP regime, have led to unintended consequences. Developers, keen to avoid risk, produce overly complex documentation aimed more at legal compliance than genuine engagement. They are reluctant to adapt their plans in response to feedback, fearing that they will need to reconsult if they do so, which slows down delivery and drives up costs—which in turn frustrates the UK’s ability to plan and deliver essential infrastructure.
I remind the Committee that, since 2013, the pre-application stage has doubled in length. Our proposals could save businesses up to £1 billion over the lifetime of this Parliament by reducing delays across projects. That is why we have proposed removing statutory consultation requirements at the pre-application stage, including the adequacy of consultation test in Section 55 of the Planning Act 2008. Instead, we are introducing a clearer, more practical acceptance test: is the application suitable to proceed to examination?
This new test allows the Secretary of State to make a balanced judgment about the quality of the application and recognises that the NSIP planning process is a continuum from pre-application through to decision. I reassure the noble Baroness, Lady Pinnock, that the changes that the Government are proposing do not undermine the importance of consultation and engagement on applications, as my honourable friend Matthew Pennycook made clear in his ministerial Statement on 23 April. Applications are unlikely to be of sufficient quality to be granted consent if meaningful engagement has not been undertaken on them.
Instead of statutory requirements, the Government have now issued a consultation on guidance which will seek to help applicants understand what good engagement looks like. That consultation is open until 27 October, and we are looking forward to receiving responses. The Planning Inspectorate’s advice will also continue to emphasise the value of early issue resolution. With those reassurances, I hope that the noble Lord will feel able to withdraw the amendment.
My Lords, I hope that the noble Baroness, Lady Pinnock, is satisfied with the comments of the Minister. In relation to the Gardens Trust becoming a statutory consultee, I note that there is a review of the whole process and, indeed, of the individual components within that, and that if it is going to be possible to have a new statutory consultee, secondary legislation could take care of that. At the same time, I also noticed a certain reluctance to be enthusiastic about this amendment. We will hope for the best, and I beg leave to withdraw the amendment.
(1 month, 3 weeks ago)
Grand CommitteeThat the Grand Committee do consider the Buckinghamshire Council, Surrey County Council and Warwickshire County Council (Housing and Regeneration Functions) Regulations 2025.
My Lords, these regulations were laid before the House on 9 June and provide for the implementation of the devolution deals confirmed on 6 March 2024 between the previous Government and the three councils concerned. This Government have shown their commitment to devolution, moving power from the centre and into the hands of local communities. In May 2025, all three councils consented to the making of this instrument.
If Parliament approves them, the regulations will be made under the enabling provision in the Cities and Local Government Devolution Act 2016. The provisions of the regulations will come into force on the day after the day the regulations are made. The regulations confer housing and regeneration functions on the respective councils, as set out in their devolution agreements. As required, alongside the regulations, we have laid a Section 17(6) report providing details about the public authority functions being devolved to the councils.
Additional funding will be available to the three areas through the adult skills fund, to be devolved to the councils from the 2026-27 academic year, alongside education and skills functions. The Department for Education will work with the councils to support their preparations and aid their meeting the necessary readiness criteria. The Government will legislate in due course, when the Secretary of State for Education is assured that the councils are operationally ready and is satisfied that the required statutory tests have been met in each area.
In December 2024, the three councils submitted supporting information on their potential use of the proposed functions. For this, they had engaged with local stakeholders, which showed local support for the conferral of the new functions upon each of these councils. In laying this instrument before Parliament, the Secretary of State is satisfied that the statutory tests in the 2016 Act are met; namely, that the making of the regulations is likely to improve the economic, social and environmental well-being of some or all of the people who live or work in the relevant local authorities’ areas.
To conclude, these regulations will move forward this Government’s agenda of English devolution, empowering local leaders to make decisions that will benefit their communities. I extend my thanks to the local leaders and their councils for their hard work and the vital role that they play in making this critical mission a reality in their areas. I hope that noble Lords will join me in supporting the draft regulations, which I commend to the Committee. I beg to move.
Lord Jamieson (Con)
My Lords, I refer to my interest as a councillor in central Bedfordshire. I support this statutory instrument, which confers housing and regeneration functions upon Buckinghamshire Council, Surrey County Council and Warwickshire County Council, to be exercised concurrently with Homes England. This instrument follows the level 2 devolution framework arrangements made in March 2024 between the previous Conservative Government and the three local authorities, as the Minister has rightly outlined.
The regulations grant a suite of powers relating to housing and regeneration. Specifically, they enable councils to take on responsibility for the provision of housing, regeneration of land and infrastructure, and the acquisition and disposal of land. These are important functions previously held by Homes England. As a councillor and ex-council leader, I know how doing this locally is so much better than doing it nationally. It allows things to be done in a way that delivers better outcomes for residents, frequently at lower cost.
We on these Benches support these measures and welcome the Government’s continued commitment to advancing devolution in these areas. The statutory instrument, as the Minister has already laid out, honours the agreement made in good faith by local leaders under the previous Government and reflects what we hope will remain a shared cross-party commitment to empowering local communities to shape their own future.
In the cases of Surrey and Warwickshire, the inclusion of a safeguard requiring district council consent for the use of compulsory purchase orders under the Housing and Regeneration Act 2008 is a particularly welcome provision. It recognises the reality of two-tier local government in those areas and helps preserve the principle of local democratic accountability. We welcome the Minister’s confirmation that these powers cannot be exercised without that consent.
We are also mindful that these arrangements come at a time of wider transition in the local government landscape. As the Government prepare to introduce the English Devolution and Community Empowerment Bill, we would welcome clarity in due course on how existing level 2 agreements, such as those we are discussing today, will align with any new combined authority or mayoral structures that may follow in these areas.
In conclusion, we believe that this statutory instrument is a positive and practical step. It strengthens local leadership and provides councils with important tools to deliver housing, regenerate communities and respond to local priorities. It is right that we uphold the commitments made through the devolution framework agreements; we are pleased to support the implementation of this measure today.
I am grateful for the support of the noble Lord, Lord Jamieson, for this instrument. He is a fellow council leader; we often discussed these matters when we were both council leaders. I totally support what he said about decisions being better taken at the local level than by central government when they affect local areas, and I appreciate both his comments and his support for the instrument.
I will comment on the noble Lord’s points about the integration of these proposals with what is happening with the English Devolution and Community Empowerment Bill, which, as we know, had its Second Reading in the other place yesterday. The noble Lord will be aware that the Government’s strong preference is for partnerships that bring more than one local authority together over a larger geography, to unlock further devolution. These steps are seen very much as foundation steps towards achieving that.
On the areas under discussion today, Buckinghamshire Council will need to form a mayoral strategic authority over more than one council footprint. These regulations will ensure that Surrey will see early benefits from devolution in the short term as all options to unlock deeper devolution are assessed. As the noble Lord, Lord Jamieson, will be aware, the Government recently consulted on two proposals that came forward for unitary local government in Surrey; a decision will be made on which of those proposals to implement.
These regulations will ensure that Warwickshire also sees early benefits from devolution in the short term as all options to unlock deeper devolution are assessed. The Government recently invited proposals for unitary local government in Warwickshire; we look forward to hearing from local government colleagues there when we get closer to those being submitted.
In conclusion, the instrument delivers on the commitment made in devolution agreements with Buckinghamshire, Surrey and Warwickshire councils to confer housing and regeneration functions on each local authority. I am grateful for the support for it.
(1 month, 3 weeks ago)
Grand CommitteeThat the Grand Committee do consider the Local Audit (Amendment of Definition of Smaller Authority) Regulations 2025.
My Lords, these regulations were laid before the House on 16 June 2025.
Effective local audit is vital for local accountability and transparency. The Government are committed to reforming the local audit system, including by addressing long-standing concerns around proportionality and capacity. Smaller authorities include parish and town councils, internal drainage boards, port authorities and parish meetings. They provide valued local services, from running community halls and allotments to managing small ports and drainage systems, but they do not require the same extensive audit arrangements as larger public bodies.
Much of our reform programme is focused on fixing the principal authority regime, which we know faces serious challenges; I have spoken about this many times, both in my shadow role and in the ministerial role that I hold now. It is important that the audit system for smaller authorities remains sustainable and works well. These regulations, along with other measures, will help ensure that the system as a whole remains proportionate and responsive to feedback.
We are certainly not removing scrutiny or accountability for smaller authorities. That will continue to be provided through the annual governance and accountability return. We have also committed to reviewing the AGAR so that it continues to be effective by enhancing transparency while keeping administrative burdens proportionate.
Increasing the threshold for small authorities is designed to prevent smaller bodies being drawn into the principal audit regime in future. This would be wholly disproportionate, given their size and responsibilities. Raising the threshold to £15 million is not about reducing oversight; it is about ensuring that the regulatory framework remains fair, proportionate and suitable for purpose. This change will allow smaller authorities to focus their time and resources on delivering essential services rather than navigating financial reporting, assurance and audit requirements that are out of step with their scale and responsibilities.
The threshold for smaller authorities has not changed since it was introduced in 2014. More than a decade on, it no longer reflects today’s financial environment. What was once a sensible level is now outdated, creating unnecessary pressures for smaller authorities whose financial activity has grown over time. These smaller authorities do not have the same breadth of services, assets or liabilities as even the smallest district council, yet, under the current arrangements, they risk being subject to a full financial audit at a level that brings significant cost and resource implications and draws on scarce audit capacity that should be focused on principal authorities.
Our local audit reform strategy recognises the need for a more proportionate approach to audit arrangements that reflects an organisation’s functions and complexity rather than simply its size. Subject to parliamentary approval of the audit measures set out in the English Devolution and Community Empowerment Bill, the local audit office will work closely with the department to take that forward.
This instrument raises the audit threshold for smaller authorities to £15 million, applying from the 2025-26 financial year. This is a proportionate reform that reduces unnecessary audit requirements, helps to free up capacity in the principal audit market and ensures that auditors can concentrate on those areas where assurance is most needed. The regulations, if approved by Parliament, will be made under the enabling provision in the Local Audit and Accountability Act 2014 and will take effect the day after they are made.
I am sure that our discussion today will show that we share a common goal to ensure that audit arrangements remain proportionate to allow local authorities and other local bodies to focus on delivering for their communities. I look forward to answering any questions that noble Lords might have and to participating in our discussion on this instrument today. I therefore commend the draft regulations to the Committee. I hope that noble Lords will join me in supporting them.
My Lords, the local authority audit system was wrecked by the previous Government. Electoral Commission data shows that in the period leading to the 2010 general election big accounting firms handed millions of pounds in cash and non-cash donations to the Conservative Party and got their wish, which was the abolition of the Audit Commission. The commission used to make considerable use of the district auditor service, as has been mentioned, and was reluctant to award auditor appointments to big accounting firms as they were not really considered to be fit for the purpose. The commission was a watchdog and a guide dog as it focused on efficiency and effectiveness and guaranteed auditor independence. Since then, we have had several local authority scandals, but big accounting firms have continued to collect millions of pounds in audit fees. I look forward to the English Devolution and Community Empowerment Bill when it comes, but meanwhile I have a number of concerns about local authority audit matters.
The Government’s 9 April 2025 paper Local Audit Reform: A Strategy for Overhauling the Local Audit System in England stated:
“Audited accounts are a vital and independent source of evidence of the sector’s financial health and value for money for residents, local bodies and elected members”.
It adds that audit provides,
“the only independent check on whether local bodies’ financial statements are true and fair. This is vital not only for good decision-making but for transparency and to enable local communities to hold their councils and other local bodies to account”.
However the statutory instrument in front of us actually dilutes the audit requirements for smaller authorities. Can the Minister explain how the Government’s claims of an “independent check” and “transparency” will be delivered in the absence of independent scrutiny, which the Minister just praised?
Lord Jamieson (Con)
My Lords, again, I raise my interest as a councillor in central Bedfordshire, which, just being slightly boastful, is a council that for the 10 years I was leader had its accounts audited and signed off every year within the deadline and was one of the few councils to do so.
I am grateful to the Minister for introducing this statutory instrument. The instrument raises the threshold, as has been discussed, to £15 million in annual income or expenditure. Public bodies below this will no longer need to have the full audit and can follow the streamlined annual governance and accountability return—AGAR—process.
This reform is in response to the long-standing and well documented challenges that England’s local audit system faces. It is worth noting that this is not a new policy initiative. The foundations were laid under the previous Conservative Government, who published the consultation in December 2024, setting out proposals to overhaul the local audit framework. The consultation highlighted widespread concerns around audit capacity proportionality and long-term sustainability. A formal response was subsequently published on 9 April 2025. I ask the Minister to update the Committee on progress towards implementing the remaining elements of this broader strategy.
We believe that the instrument before us is a pragmatic and proportionate reform. It recognises that many smaller authorities do not carry the same level of financial risk as larger bodies and should not be burdened with audit requirements that are both costly and unnecessary where they are unnecessary.
The Government have suggested that this change will ease the financial and administrative burden on smaller authorities, reduce the pressure on the over- stretched audit market and allow scarce audit resources to be better focused on higher-risk councils where scrutiny is most urgently needed. We note that 55% of the consultation respondents supported raising the threshold, indicating that the proposal carries a degree of support from within the sector itself.
In closing, I would be grateful if the Minister could address a few further points. First, what safeguards are in place to ensure that smaller authorities, no longer subject to the full audit, continue to operate with high standards of financial transparency and sound governance, which I think addresses the point that the noble Lord, Lord Sikka, was raising? While £15 million is a sensible threshold, will other factors be taken into account, such as the debt levels of councils? A council that is heavily in debt, even if it is just below the £15 million threshold, is clearly at much higher risk than one that is just above it and has no debt.
Secondly, will the department be issuing updated guidance to support these authorities as they continue using the AGAR framework? As my noble friend Lord Fuller mentioned, are there other consequences that are not in this paper, and that are coming as a change to this definition, that we are not considering today and should be considered?
Finally, can the Minister provide an update on the progress of the wider local audit reform programme, as set out in December 2024? In particular, will she address the issues of proportionality, risk-based accounting and focusing that limited resource on higher-risk areas and not on low-risk, bureaucratic processes?
I have one other question; I apologise. Can the Minister update the Committee on how the Government are addressing the shortage of local government audit practitioners?
These are my last few sentences. We support this instrument in principle. It is a sensible step forward towards a more proportionate, risk-based local audit regime. However, I raise those various issues. We need to ensure that there is robust oversight, transparency and regular review, to ensure that public accountability is not diminished in the process.
My Lords, I thank all noble Lords who have contributed to this interesting debate. As noble Lords will know, I spent a lot of time on the same board that the noble Lord, Lord Fuller, sat on: the LGA Resources Board.
We have talked a lot about the history of the abolition of the Audit Commission. I do not think that any of us want to go back down that route. Although the steps that were taken were taken with good intent and might have driven down costs, the complexity of local government audit was, I think, underestimated. We ended up in a situation where we had a significant backlog of audits and where some of the smaller local authorities were subject to what the noble Lord, Lord Jamieson, referred to as unnecessary bureaucracy and financial reporting. That did not help anybody, which is why the Government are firmly committed to bringing forward reform of the local audit system more generally. Much of that is contained in the English Devolution and Community Empowerment Bill. I hope—indeed, I am sure—that we will have some more interesting discussions on the wider issues around audit during the passage of that Bill.
I will pick up some of the points that have been made here today. Nobody wants to see audit improve more than I do. The importance of reassuring local people that their councils are operating in a financially sound manner cannot be underestimated; that is vital, so we want to see it working well.
On my noble friend Lord Sikka’s comments, there is significant provision for this smaller authority audit regime to continue to provide transparency to the public, through the annual governance and accountability return, and for authorities under the £15 million threshold. We believe that this is both proportionate and sufficient. The regime still includes requirements for transparency, public inspection rights and the ability of local electors to raise concerns with external auditors. Local electors will retain the right to inspect accounts and raise their concerns; this will ensure that public oversight and accountability are still there even when those full audits are no longer required.
I think that my noble friend’s points about the oversight bodies will be more usefully discussed when we discuss the wider audit picture. I understand the points that he makes and I am sure that we will have those discussions in due course; I am grateful for his contribution.
The noble Lord, Lord Fuller, spoke about the audit failings with which anyone in local government is very familiar. I will start with his comments about proportionality; I will come on to the issues around authorities in a moment.
The way that this will work is that, if district or higher-tier councils fall below the new threshold, they will become a smaller authority for that year. In the following two years, even if it goes over the threshold in those two years, the department will work with any affected authorities to agree what the appropriate approach should be. By avoiding unnecessary financial reporting and audit costs, those smaller councils will be able to focus their money on where it matters most: supporting local communities and delivering essential services.
The noble Lord raised the important point about council tax capping in those small authorities. It is not intended that these regulations will be in any way related to the council tax capping regime. They are simply about determining financial reporting assurance and the audit regime requirements for local authorities. That is the intent.
The noble Lord raised the Broads Authority. I refer to my previous comments about public scrutiny. Obviously, the governance of the Broads Authority is for the electorate to determine, eventually.
The noble Lord asked whether the definition would cap smaller towns at a 5% council tax cap. I hope that what I have said makes it clear that this regime is not linked to the council tax capping regime, so there should not be an impact on that.
Lord Fuller (Con)
I am grateful to the Minister for that important clarification, which will give local taxpayers a great degree of reassurance that this is wholly separate from the LGR process.
I am grateful to the noble Lord for raising the issue and giving me the opportunity to clarify that.
The noble Lord, Lord Shipley, referred to the history of the abolition of the Audit Commission. He asked me about the 2014 threshold and there being no impact assessment. I cannot answer his specific question about how many authorities are taken out of this regime, but I will reply in writing to that question.
The way that this has been developed is that we have been very responsive to stakeholder feedback following the consultation that was initiated. The view of stakeholders is that £15 million will be the appropriate threshold ahead of the Secretary of State undertaking a wider review of audit regimes to make sure that they are all fit for purpose as we enter the new local audit office regime. I hope that answers the substantive question that he asked me.
Aligning audit thresholds with inflation in the future is an important issue. We need to make sure that we do not get ourselves into the same bind that we have before of audit regimes that get out of sync with what is happening in local authorities. Subject to parliamentary approval, the local audit office will work with the department to advance a more proportionate approach and remove the sorts of cliff edges that come from purely financial threshold-based approaches. Our intent is to work with the sector and the local audit office to change that approach.
The noble Lord, Lord Jamieson, asked about progress on implementation. This is a first step. Also picking up the points made by the noble Lord, Lord Fuller, about Salisbury City Council and Lindsey Marsh Drainage Board, our engagement with the sector demonstrates that uplifting the upper threshold should be prioritised ahead of the local audit office’s establishment, particularly given the issues with the authorities that noble Lords have mentioned, because they already exceed the upper threshold and they found it impossible to get auditors to do their audit. That is the reason why this has been done ahead of that, but progress on the local audit office is going through. We know that there was a Second Reading in the other place yesterday. I hope my response to the noble Lord, Lord Sikka, on local transparency helps to answer some of the questions from the noble Lord, Lord Jamieson.
Can the Minister confirm that there is no cost-benefit analysis or impact statement in relation to this statutory instrument? I am particularly interested in what the cost of not doing the audits might be, whether financial or non-financial in terms of risks, impropriety, and so on. Can she confirm whether there is no analysis or whether the Government plan to do some? Either way, clarification would be helpful.
It is not usual to have an impact statement for an instrument such as this. There will be an impact statement for the Bill, of course, when it comes forward with the local audit office proposals. However, I can tell my noble friend that the assurance reviews to which smaller authorities are subject cost between £210 and £3,780.
On principal audits, anyone who has been part of a local authority knows that when the audit bill comes in every year, it is a significant cost to the local authority. It can range from £70,000 to more than £1 million. My local authority is a relatively small authority in Hertfordshire but, when I stepped down from it, the bill was already well over £130,000. That is an enormous cost on the taxpayer. If it is not proportionate and necessary, we should be taking that burden away from council tax payers and letting local authorities spend that money on the services that they need. I hope that partial response to my noble friend’s question helps.
The noble Lord, Lord Jamieson, asked whether debt levels will be taken into account. I feel fairly sure that the AGAR guidelines will include a way of determining whether the debt levels of an authority require additional attention to be drawn to that authority. I will come back to the noble Lord on that in writing because it is important. As we know, even relatively small authorities have seen significant debt levels in recent times, so that is an important issue, and I thank him for raising it.
The noble Lord asked about the publication of the AGAR guidelines. Again, I am pretty sure we will have guidelines on that, but I will respond more fully in writing, if that is okay.
I hope that I have picked up all noble Lords’ questions.
Lord Jamieson (Con)
There was one more, which was about addressing the shortage of local authority auditors.
The uncertainty around this in the past couple of years has not helped. Once the English Devolution and Community Empowerment Bill goes through, and it is very clear to everybody what the approach to local audit will be, we will work closely with the sector to ensure that we are developing the capacity in the workforce and the skills that we need to make sure that audit is carried out properly. I cannot emphasise enough my understanding of how important that is to reassure local people that their authorities are operating in a financially sound way, so I give the noble Lord my reassurance that I will be keeping a careful eye on that. I hope that the certainty that the Bill delivers on the local audit office proposals helps us to move that on.
In conclusion, these changes will support small authorities by ensuring appropriate governance and accountability without unnecessary burdens. They will help protect value for money and contribute to a more sustainable local audit system. The instrument delivers a clear benefit to smaller authorities by aligning audit requirements with the scale and risk of local authorities, ensuring that the local audit system is proportionate and efficient. I commend the regulations to the Committee.
(1 month, 3 weeks ago)
Lords ChamberMy Lords, Amendment 72 in my name seeks to leave out lines 12 and 13 on page 22 of the Bill, removing the additional definition of “qualifying distribution agreement”. It is a straightforward technical amendment. Its purpose is to tidy up the drafting of the Bill by removing a definition that is no longer required. The term “qualifying distribution agreement” is already defined in Clause 13(8), following other changes made during the passage of the Bill. The amendment will help ensure that the legislation is clear, coherent and free from unnecessary or redundant definitions. It will not alter the substance or effect of the policy but support the overall clarity and workability of the Bill.
I hope that the Committee will support this amendment. I look forward to the debate on the other amendments in this group; I will reserve comment on them until I make my winding-up remarks. I beg to move.
My Lords, I am grateful to the Minister for being so brief and to the point and for allowing me the opportunity to explain the purpose of the other amendments in this group in my name, which are Amendments 73 to 76. Like the Minister, I look forward to hearing from the noble Earl, Lord Russell, about grid capacity in his Amendment 79. I remind the Committee of my registered interest as chair of development forums in Cambridgeshire and Oxfordshire.
My amendments relate to Clause 17, which contains a power to give Ministers the opportunity to designate strategic plans for the purposes of the connection reforms that are taking place in relation to the transmission and distribution networks. I suppose it would be helpful—not least because it will connect to what the noble Earl, Lord Russell, will raise—for me to remind the House that this process is under way. In effect, it was commenced by the Connections Action Plan under the previous Administration in November 2023. A simple way of expressing it is by saying that there was a lot of commitment to future substantial increases in generating capacity in a range of technologies, which were increasingly forming a queue to book their potential connection to the transmission or distribution networks. However, there was considerable risk related to whether those projects would be delivered on time or at all.
The volume of such commitments made it very clear that a significant proportion of them would not be viable, because there would be an excess of what was required. The numbers varied, but I think the latest figure was something like 714 gigawatts of grid capacity relative to about 500 gigawatts of demand. Instead of the old regime, which can be characterised as “first ready, first connected”—namely, those who were planning to provide capacity simply booked a place in the queue and then, when they were ready, they were given a right to be connected—the intention now is for there to be strategic planning behind the process leading to the net-zero objectives in 2030, which were published under the Government’s Clean Power 2030 Action Plan last December.
Since then, Ofgem and the National Energy System Operator have been working on this. For the avoidance of doubt, references in Clause 17 to the independent system operator and planner, ISOP, are actually to the National Energy System Operator, or NESO. Ofgem agreed on its methodologies, I think in April, and has now, after consultation, approved the processes. I think that we are in a position—but the Minister can correct me if there is more detail—where we are anticipating, potentially in a matter of weeks, the first allocation of commitments by Ofgem to what is known as Gate 2. As I understand it, Gate 2 means that Ofgem will say that it is committed to these projects and that they will be connected to the transmission or distribution networks when they are ready and because they are needed.
There are two differences with that approach. First, the queue will be straightforward; it will be not just “first ready, first connected” but “first ready, first needed, first connected”. Secondly, the two criteria that Ofgem will apply, in the first instance, will be that there is a clear timetable—with milestones, which, if they are not met, may cause such projects to lose their place in that queue—and that they will be connected when they are needed. There is therefore a direct relationship between the strategic planning for electricity capacity in a range of technologies and the projects that NESO agrees will be brought in to supply the grid at given times in the future.
If I understand it correctly, the present strategic objective is set out in the connections annexe to the Clean Power 2030 Action Plan. It sets out a range of technologies, and capacities that are required in those technologies, and then breaks them down by regions across the country. There is therefore a plan to which the alignment should relate. The Explanatory Notes state that the designated strategic plan according to which the National Energy System Operator should work may be, for example, the Clean Power 2030 Action Plan, so we can see the relationship with that.
The Explanatory Notes do not say this, but the Delegated Powers Committee’s memorandum from the department did: in addition, the designated plans are intended to include the strategic spatial energy plan intended to be published in 2026. That is in addition to what is in the clean power plan, which has 2030 targets and ranges for its potential capacity requirements through to 2035, and will extend that to 2050 so that there is a longer strategic alignment between the people who are making substantial investments and the commitment on the part of the grid to take that supply into the grid.
My Lords, I will speak briefly to this group of amendments, which relate to the connections reform provisions within the Bill. These are largely technical and drafting amendments, but they are none the less important to ensure clarity and alignment across the legislation. I agree with many of the issues raised by my noble friends Lady Neville-Rolfe and Lady Coffey, particularly anything that slows down the grid connections process or adds more cost to the consumer.
Let me start by welcoming Amendment 72, in the name of the noble Baroness, Lady Taylor of Stevenage, which, as she stated in her admirably brief opening, makes a simple drafting correction. It removes the definition of “qualifying distribution agreement” from Clause 16, as it is already defined in Clause 13(8). This is a helpful tidying up amendment that improves the consistency of the Bill’s language, and I am grateful to the noble Baroness for bringing it forward.
Amendments 73 to 76, tabled by my noble friend Lord Lansley, would also serve to improve the clarity and coherence of the Bill, particularly in relation to NESO and its responsibilities. Amendment 73 would ensure that NESO is required to have regard to the strategy and policy statement under Section 165 of the Energy Act 2023, rather than the designated strategic plan. This helps to bring the language of the Bill in line with existing legislation and policy frameworks.
Amendment 74 makes a similar adjustment to Clause 17, ensuring that NESO must have regard to the strategic priorities set out in the strategy and policy statement under the 2023 Act. Amendment 75 then defines “strategic priorities” as those contained in the most recent strategy and policy statement issued under that Act—again reinforcing consistency and legal precision. Amendment 76 replaces references in Clause 17 to “designated strategic plans” with “strategic priorities”, to align terminology with Section 165 of the Energy Act 2023. My noble friend Lord Lansley has put forward a strong case for these changes to the Bill, and they appear to be sensible and constructive amendments.
Finally, Amendment 79, in the name of the noble Earl, Lord Russell, raises an important issue by highlighting the delays and high costs associated with connecting to the national grid. This amendment addresses a key barrier to energy development and considers the use of local grids as a way of improving efficiency.
This has been a good, thoughtful and short debate. I look forward to hearing the Minister’s response.
My Lords, it is reassuring to hear such a degree of consensus across the House that we all want to deliver the same thing from this—speeding up the connections process. I have expressed my frustration many times before in this House that it can take longer to get a grid connection than it did to build the whole of the A1(M). That is a just a nonsense and we have to move on from it.
I thank all noble Lords who have spoken in this brief debate, particularly the noble Lord, Lord Lansley, and the noble Earl, Lord Russell, for their amendments, and the noble Baronesses, Lady Neville-Rolfe and Lady Coffey, for their comments.
I am afraid I have to oppose the amendments from the noble Lord, Lord Lansley. I understand how well intentioned they are and I greatly respect his experience in these areas, but they would have significant unintended consequences for the Government’s ability to respond swiftly and effectively to the evolving needs of our energy system.
At the heart of the amendments is a proposal to require that the strategy and policy statement, also known as SPS, designated under Part 5 of the Energy Act 2013 is used for the purpose of prioritising connections to the electricity network. I recognise the helpful attempt by the noble Lord to ensure consistency and clarity with regard to the obligations of Ofgem and the National Energy System Operator, NESO. I also fully recognise the importance of parliamentary scrutiny and do not for a moment suggest that we should seek to avoid that. But we must also be honest about the practical implications of this approach.
The SPS is subject to a rigorous process that is entirely appropriate for a high-level, overarching statement of policy. But it is not designed to accommodate the pace or specificity required to support the complex and fast-moving reforms we are undertaking to unblock and accelerate electricity network connections. We are entering a period of rapid transformation. The grid must decarbonise. New technologies are emerging. Electricity demand is shifting and increasing and the connections process must evolve to keep up.
In that context, the Government must be able to designate timely targeted guidance, potentially in the form of multiple documents, tailored to different parts of the sector, such as generation or demand connections, or technology-specific plans and strategies. Indeed, the Government have already signalled their intention to designate the Clean Power 2030 Action Plan and the Industrial Strategy—both existing documents published recently—when the necessary powers are available. These are concrete, strategic documents that will help the industry to plan and invest with confidence, hopefully meeting some of the concerns of the noble Baroness, Lady Neville-Rolfe. But these amendments would prevent that. They would limit us to a single document—the SPS—and, in doing so, tie our hands at precisely the moment we need the most flexibility, creating potential delays and preventing the granular and specific strategic direction required for the grid connection process.
There is a further and more fundamental issue. Distribution network operators—DNOs—have no legal obligation to have regard to the SPS. These companies are critical to the delivery of connections reform and are responsible for connecting a significant volume of new generation and storage that will connect directly to the distribution network. They are privately owned and operated and the SPS was never intended to bind them. To attempt to do so now would be not only inappropriate but unworkable.
If we are serious about reforming the connections process—as I believe we are; we have heard that this afternoon—we must ensure that our strategic plans can apply to the full range of actors involved. That means having the ability to designate plans that are fit for purpose, timely and applicable to the right parties. The strategy and policy statement is a high-level strategic document intended to provide Ofgem and NESO with clear direction over the Government’s strategic priorities and desired outcomes for the duration of our term to inform decision-making. In contrast, as I have said, designated plans for the purpose of connections reform may include more granular, tactical guidance. These documents are designed to complement, not conflict with, the SPS.
In response to the noble Lord, Lord Lansley, I would also say that plans are in place and being implemented for the connections to the transmission and distribution system. In November 2023, as the noble Lord mentioned, the Connections Action Plan was published, setting out expectations for the scale and pace of reform. This formed the basis for the National Energy System Operator’s connection reform proposals, which Ofgem have just approved. The broad ambition, on which legislative measures have been based, will see faster electricity network connection dates offered, at both transmission and distribution.
The noble Lord asked me a very specific question around the Gate 2 process. The implementation of current connection reforms is under way, as I said. We are working closely with NESO and Ofgem, and we are anticipating the Gate 2 decisions in the coming weeks; “coming weeks” is one of those expressions that I have got used to as I have been a Minister.
The Bill as drafted is intended to ensure that we have the tools to deliver the energy transition effectively. The measure as drafted strikes the right balance. We believe that it provides a clear mechanism for designating strategic plans while preserving the flexibility —which we know we will need—to respond to a rapidly changing sector. I therefore kindly ask the noble Lord not to press his amendments.
I turn now to Amendment 79, tabled by the noble Earl, Lord Russell. He said that he believes this is the biggest change since the Industrial Revolution in terms of power accessibility. I do not disagree with that statement. Let me begin by stating that we are in full agreement that the current delays arising from the first come, first served approach to grid connections are absolutely no longer tenable; I hope I have made that very clear. For this reason, in December 2024, the Government published the Clean Power 2030 Action Plan. This document outlines our plan to work collaboratively with the National Energy System Operator—NESO—and Ofgem to deliver a fundamental overhaul of the connections process.
The objective is to accelerate connection timelines for the most critical projects and to unlock billions of pounds of investment for renewable energy generation. Through the implementation of these reforms, it is estimated that up to £5 billion in unnecessary network reinforcements could be avoided. In turn, this should lead to long-term savings for consumers through lower electricity bills.
The reforms in question have been developed by NESO in close consultation with both industry stakeholders and Ofgem, following all requisite formal procedures, including public consultation. Ofgem has since approved these proposals and implementation is now well under way, as I have already mentioned.
This Bill is intended to support the reforms. Notably, the Bill will confer powers on the Secretary of State to designate strategic plans. These plans must be taken into account by both NESO and distribution network operators when exercising their functions in relation to grid connections.
It is anticipated that the Secretary of State will initially designate the Clean Power 2030 Action Plan and the Industrial Strategy, followed in due course by the proposed strategic spatial energy plan. These strategic documents are designed to reflect the needs of the nation’s energy system, including measures to address the inefficiencies of the current grid queue by prioritising projects of greatest national importance. Introducing a new statutory requirement for a further plan would risk delaying this progress and might introduce unwelcome uncertainty for industry participants.
On the matter of local energy grids, we do not consider that there is any regulatory impediment. The necessary infrastructure, including local networks that integrate both generation and demand, is already permissible. Such networks may be developed and operated by distribution network operators or independent network providers, or under private wire arrangements via statutory licence exemptions.
We are also firmly committed to supporting local and community energy initiatives. These play a vital role in the UK’s broader energy landscape and we are determined to ensure that communities continue to benefit directly from the transition to clean energy. We will be discussing more about that later this afternoon.
To that end, Great British Energy will work in partnership with mayoral combined authorities, community energy organisations and the devolved Administrations. This collaboration will include the provision of funding and strategic support, from planning advice to technical guidance, for local community energy stakeholders. I trust this explanation provides sufficient reassurance to noble Lords.
I thank the Minister for that. Is it then the Government’s intention to publish a new strategy and policy statement under the Energy Act? At the moment, legislation requires Ofgem to have regard to what is effectively an out-of-date strategy.
I hope I picked up that question during my response. I will just check back to make sure that I got the wording right. I think that is the case but I will confirm it to the noble Lord in writing. Still, I think he is correct in his assumption.
I trust that explanation provides a sufficient response for the noble Lord, and I ask him not to press his amendment.
My Lords, I thank all noble Lords who have spoken on this group: the noble Lord, Lord Roborough, the noble Earl, Lord Russell, and the noble Baronesses, Lady Pinnock and Lady Coffey. Their amendments relate primarily to the bill discount scheme for communities near new and certain significantly upgraded transmission infrastructure, and other community benefit schemes; these are Amendments 82C to 82E, 83, 83A to 83C, 84, 84A to 84C, 85, 86 and 94.
Before I turn to the specific amendments, I say to the noble Baroness, Lady Coffey, that I will not cover business rates retention in my response. That is a bit above my pay grade, and I am afraid that she will have to wait, as we all will, for the Chancellor’s Autumn Statement to see whether she intends to make any changes to that. That is the responsibility of the Treasury. As the noble Baroness is very well aware, there is a redistribution mechanism in the business rates retention, which enables those areas that are less able to raise business rates to benefit as much as some of those that are more able to raise business rates. I am afraid that any adjustments to that are not in my remit, so I will not cover that.
I turn first to Amendments 82C, 82E and 83A to 83C, which aim to extend the scope of the financial benefit scheme for people living near new and significantly upgraded transmission network infrastructure to those living near energy generation infrastructure. While I believe that the spirit of these amendments from the noble Baroness, Lady Coffey, is certainly well intended—and the Government are committed to ensuring that communities that host clean energy infrastructure benefit from it, including clean energy generation infrastructure—I must resist these amendments for reasons that I will set out for her.
Clause 26 specifically allows for the creation of a bill discount scheme for those living near new or significantly upgraded transmission network infrastructure, with a minded-to position of offering eligible customers a bill discount of £250 per year over 10 years. This ensures that communities living near this infrastructure are recognised for the service they provide the country in hosting the infrastructure and helping to achieve our clean power goals. The clause has been specifically designed to address transmission which, due to its long, linear nature, impacts communities without necessarily providing further benefits, such as local jobs or investment, that other infrastructure probably will bring. If this clause is amended as suggested, it would require further complex and detailed amendments to ensure that it operates effectively for each type of generation infrastructure, delaying the time that it would take for the scheme to be implemented.
However, I can inform noble Lords that the Government have already presented proposals to expand the delivery of community benefits to other forms of clean energy infrastructure. On 21 May, we published a working paper on community benefits and shared ownership of low-carbon energy infrastructure, the responses to which are currently under review. Our proposals would require developers of low-carbon energy generation and energy storage infrastructure to contribute to community benefit funds to support families, businesses and local community groups living near these projects. As the noble Earl, Lord Russell, suggested, the scheme could help regenerate our coastal and rural communities—for example, via new community facilities, apprenticeships and education schemes—boosting local economies and growth as part of the plan for change.
The paper also sets out how communities could own a stake in renewable energy infrastructure through shared ownership, resulting in profits being reinvested in the community. Through these proposals, we aim to provide communities with consistency and certainty that they will benefit from hosting new generation infrastructure. I hope that the noble Baroness accepts these reasons why these amendments would not be appropriate, is reassured that we are looking into ways to ensure that communities hosting new clean energy-generation infrastructure are properly recognised for the service they are providing to the country, and will agree to withdraw Amendment 82C.
Turning now to Amendment 83, tabled by the noble Lords, Lord Roborough and Lord Offord, which seeks to set the discount amount for the bill discount scheme at £1,000 a year for 10 years for households living within 500 metres of eligible infrastructure, I really sympathise with the noble Lords’ intention to ensure that households closest to the new transmission infrastructure benefit, but I am going to have to resist the amendment, for reasons which I will set out. The Government’s minded-to position is to provide electricity bill discounts of up to £2,500 over a maximum of 10 years for households living within 500 metres of new and significantly upgraded electricity transmission network infrastructure. This proposal provides a balance between ensuring that communities are recognised for the role they play in hosting the infrastructure and limiting the additional cost to electricity bill payers in Great Britain from the scheme.
We are still conducting final analysis on the overall cost of the scheme. On 8 August, we published a consultation on our current proposals for scheme design, and that consultation is open until 26 September. Final analysis will be published in our impact assessment, alongside secondary legislation. The Government consider that the overall level of benefit ought to be set out at that stage, which will still allow for sufficient parliamentary scrutiny once secondary legislation is laid. I hope noble Lords understand our position on this matter. I look forward to working closely with them at the appropriate time on this important detail of the scheme.
I turn to Amendment 84, which seeks to extend the scope of the financial benefit scheme for people living near new and significantly upgraded transmission network infrastructure to those living near onshore wind turbines. I welcome the intent of the noble Lord’s amendment. The Government are committed to ensuring that communities which host clean energy infrastructure benefit from it. Clause 26 allows for the creation of a bill discount scheme for those living near new or significantly upgraded transmission network infrastructure, with a minded-to position of offering eligible customers a bill discount of £250 a year over 10 years. This ensures that communities living near this infrastructure are recognised for the service they provide to the country. While it may seem logical to extend this scheme to other infrastructure, such as onshore wind, the clause has been designed specifically to address transmission, which, as I said, due to its long linear nature, impacts communities without providing further benefits, such as local jobs or investment, that other infrastructure can bring. If this clause is amended to include onshore wind, it would require further complex and detailed amendments to make sure that it operates effectively, delaying the time it would take for the scheme to be implemented.
However, I am pleased to inform noble Lords that the Government have already presented proposals to expand the delivery of community benefits to other forms of energy infrastructure, including onshore wind. I spoke already about the paper that was produced on 21 May on the community benefits, and we are reviewing the responses to that. The proposals would require developers of low-carbon energy generation and energy storage infrastructure to contribute to community benefit funds—again, to support families, businesses and local community groups who live near these projects. The scheme could definitely help to regenerate those coastal communities. The paper also set out how communities can own a stake in those. Through these proposals, we aim to provide communities with consistency and certainty. I hope that the noble Lord is reassured that we are already looking into ways to ensure that communities living near new onshore wind generation are recognised for their service to the country.
Amendments 82D, 84A and 84B, tabled by the noble Baroness, Lady Coffey, would remove the Secretary of State’s discretion to establish the financial benefit schemes as detailed in Clause 26. They would also ensure that eligible infrastructure projects constructed prior to Royal Assent to this Bill are included within the scope of the scheme. I acknowledge the intention of the amendments: to ensure that the scheme is not confined to those who live near eligible infrastructure built after the Bill is enacted. I must resist this amendment, for the reasons I will set out.
The aim of Clause 26 is to ensure that households that will live close to new electricity transmission infrastructure are appropriately recognised for their service. The Government understand that many of these projects are planned over the next few years. It is our intention that the scheme will run for a set period of time, and the Government require the flexibility to review the effectiveness of the scheme and determine whether it ought to continue for a longer period or come to an end after a certain date. Amendment 82D would remove that flexibility and result in greater time and monetary costs to bring the scheme to a close. Additionally, Amendments 84A and 84B would expand the financial benefit scheme by including works which have already been completed.
Around twice as much new transmission network infrastructure will be required by 2030 as has been constructed over the past decade. We believe it is only right that this unprecedented increase in the pace of construction is appreciated and that communities are recognised for the service to the country. Extending the scheme to historical infrastructure would be moving away from this purpose. We must also consider the substantial additional cost in extending the scheme in this manner. The increased complexity in identifying many more eligible households, as well as the increase in the number of discounts being paid out, would vastly inflate the cost of the scheme, as well as delay current rollout plans, due to the increased administrative challenges. However, although it would not be appropriate to modify the scheme in the manner that these amendments propose, I am happy to inform noble Lords that the Government are currently finalising details on eligibility for infrastructure where construction has recently commenced, as we recognise that there are projects vital to clean power 2030 that will have begun before the commencement of the scheme outlined in Clause 26.
Amendment 84C seeks to prevent the costs of community benefit schemes being borne by energy bill payers. I understand and appreciate the intention of the amendment from the noble Baroness, Lady Coffey, to protect consumers from rising energy bills. However, I will again set out the reasons why I have to resist this amendment. One of the Government’s five missions is to make Great Britain a clean energy superpower. This will boost our energy independence and reduce electricity bills. Our electricity network is key to achieving this. As we increase low-carbon and renewable energy generation, we will need to increase the scale of the transmission network at pace to keep up with demand. It will not be possible to deliver secure electricity supply vital to growth and prosperity without a transmission network that can transport it. This financial benefit scheme aims to increase community acceptability of electricity infrastructure and, in doing so, has the potential to reduce opposition and associated planning delays.
The Government’s current intention for the scheme, as outlined in Clause 26, is for the cost to be borne by an obligation on electricity suppliers. However, although they are not mandated to do so, it is expected that suppliers will recoup these costs by passing them on to their customers. For example, the warm home discount scheme is funded via an obligation on energy suppliers that is recouped via energy bills. Using alternatives, such as funding the scheme through Exchequer funding, would not be appropriate, as the bill discount scheme forms part of a broader package which has been developed to improve acceptability of transmission infrastructure, which in turn could help reduce constraint costs, if successful in supporting the accelerated delivery of critical transmission infrastructure. Because of this, the Government believe that it is most appropriate that the scheme should be funded through bills.
Preliminary estimates for the cost of both the bill discount scheme and the community funds guidance are around 80p to £1.50 per year per average household electricity bill, although this estimate is subject to change in our future impact assessment, set to be published alongside secondary legislation. Should this community benefit package, alongside our wider package of reforms, succeed in supporting the accelerated delivery of critical transmission network infrastructure, we could avoid up to £4 billion in constraint payments in 2030, compared with the scenario where delays persist. Those costs will be met by the consumers. This is as outlined in analysis from the National Energy System Operator.
I turn to Amendment 85, tabled by the noble Baroness, Lady Pinnock. We always enjoy hearing the Yorkshire dimension on our Bills in the House. The amendment seeks to expand the financial benefits scheme from households living near new and significantly upgraded transmission network infrastructure to those living near existing transmission network infrastructure. I acknowledge the good intent behind the amendment in recognising communities that have hosted infrastructure for years. However, for reasons that I will set out, I must resist this amendment.
My Lords, I thank the Minister for her response. She has mentioned the working paper in relation to several amendments, including mine. I welcome the words that she has given and the direction of travel. However, we have the usual phrase, that “in due course” something will come forward. The Minister may not have the answer to hand, but if there is a possibility of bringing forward those proposals in time for Report in relation to this group of amendments, it would be welcomed across the House.
I accept the noble Earl’s point. I am not fond of “in due course”, as he well knows—he has heard me say that many times. I will endeavour to find out what the timescales are likely to be. It usually depends on the level of responses that have been received and the complexity of dealing with them, but I will respond in due course.
My Lords, I thank the Minister for her comprehensive answer on the variety of schemes and community benefits, bill discounts and similar. I am disappointed that she does not think that it is necessary to talk about generation. Not all projects are like Sizewell. Not all these potential new projects generate local jobs, although I am sure that the community will be very grateful for the ones that will be generated by Sizewell. Nevertheless, conscious of the time, I beg leave to withdraw the amendment.
My Lords, I thank all noble Lords who have taken part in this debate. I do not have the hands-on experience of managing forestry that the noble Lord, Lord Roborough, does. My mother’s family home was in the middle of Savernake Forest, so it is very close to my heart, and the three elderly uncles who lived there when I was growing up worked in the forest in exactly the way described by the noble Lord, Lord Lucas. They did active work for the Forestry Commission: the kind of work that the noble Lord was describing.
Clause 28 sets out to amend the Forestry Act 1967 to grant the forestry authorities powers to pursue electricity generation from renewable sources within the public forest estate. Amendment 87, tabled by the noble Lord, Lord Teverson, and signed by the noble Baroness, Lady Boycott, seeks to restrict forestry authorities to supplying or using only waste materials in the context of renewable electricity generation from biomass. I completely understand that the intention behind the amendment is to prevent large-scale biomass operations on forest estate and inappropriate harvesting practices in the name of renewable energy, but I suggest that the concern is already addressed in statute by the balancing duty laid out in the Forestry Act 1967.
Clause 28 of the Bill applies the balancing duty specifically to renewable electricity, which means that forestry authorities are required to balance their renewable electricity functions with their forestry responsibilities and the conservation of natural beauty and flora and fauna of special interest. If the noble Lord is concerned that, without his amendment, the Forestry Commission would be able to engage in large-scale deforestation for the purpose of biomass, the Government’s categorical view is that that would not be consistent with the commission’s statutory duties.
Furthermore, I believe that the amendment would have unintended consequences that could constrain routine woodland management practices, including existing operations that contribute to the health of existing woodlands and the sustainable supply of biomass. Forestry authorities are committed to delivering the sustainable management of our forests and meeting the requirements set out in the UK forestry standards. These standards are upheld through processes such as thinning, where selected young trees are removed to enhance the quality and health of the broader woodland area—I think the noble Lord, Lord Roborough, referred to this. Through that process, all the material produced could be used for biomass. The proposed amendment could have the unintended effect of producing a narrow interpretation of “waste” that could exclude material most suitable for energy generation, such as material produced through the thinning process. This would limit the uses of forest materials and ultimately would be wasteful in itself.
Finally, it is important to note that sustainably sourced biomass can play an important role in our renewable energy systems, in transitioning away from fossil fuels and in meeting our net zero targets. Existing frameworks and duties provide a high bar for the Forestry Commission’s role as manager of the nation’s forests. These existing statutory duties underpin the commission’s current practices, including the sustainable supply of biomass, already operating at a smaller scale, as part of routine and acceptable day-to-day woodland management practices. The Forestry Commission has no plans to engage in the development of large-scale biomass technologies in the forests that it manages. It is for these reasons that I kindly ask the noble Lord to withdraw his amendment.
I will consider Amendments 97A, 87B and 88A together. I thank the noble Baroness, Lady Coffey, for her amendments, which aim to protect the forest estate from adverse impacts as a result of renewable electricity activities. I reiterate that our public forests are a precious national asset providing vital environmental, social and economic benefits, and this legislation will not change that fact.
The noble Baroness mentioned using wood in construction. Just before Recess, I visited an office building just across the Thames from here that was constructed using timber. It is a fantastic building. It looks out onto a small woodland as well, which makes it even better. So that is an important factor.
The forestry authorities’ key statutory duties remain to promote the interests of forestry, the development of afforestation, the management of forests and the production and supply of timber and other forest products. The additional revenue stream produced from the sale of electricity from renewable energy developments will enhance their ability to deliver their existing objectives.
Amendments 87A and 87B would require the forestry authorities to replace any woodland lost to renewable electricity development by double, with this being planted as near as possible to the original site. I reassure the noble Baroness that the size of the public forest estate will not reduce as a result of renewable energy developments. The estimated footprint of renewable electricity projects will be relatively small and there will be no net loss of woodland area. Renewable energy installations are successfully integrated into woodlands in many areas of Scotland. Scottish officials explained to mine that, generally speaking, where trees might be felled for, say, access purposes during the construction phase, they can be replanted once the access is no longer required.
It is the Government’s view that the amendment is unnecessary as there is already existing statutory provision to ensure that impact is mitigated in both the Forestry Act and the planning and development process. Therefore, permanent deforestation at concerning scale for the purpose of renewable electricity development would not be consistent with the Forestry Commission’s existing statutory duties.
Furthermore, I believe the amendments could have the unintended effect of limiting the ability to utilise new and potentially more suitable land to create new woodland habitats when undertaking compensatory tree planting. Some locations are less suitable for woodland creation, and replanting woodland as close as possible to the installation may not align with ecological and other environmental and timber-supply priorities.
The amendment may also limit the ability to pursue restoration measures beyond compensatory tree planting that could deliver greater environmental value. The Forestry Commission will ensure that compensatory planting takes place where woodland is permanently lost to renewable energy projects, but the planning process can often identify more effective ways of enhancing ecology and biodiversity. We would not want these alternative approaches to be constrained as a result of this legislation.
Amendment 88A specifically requests that Clause 28(6) is removed completely. The intended effect of this is to prevent regulations being made for purposes beyond those explicitly set out in the Bill. Many examples of the provisions set out in subsection (6) can be found in any large Bill. They are technical provisions that do not affect the fundamental purpose for which regulations can be made. In this case, that fundamental purpose is determined by subsection (5). I reassure the noble Baroness that, if regulations were to be made in reliance on the power in subsection (6) to make, for example, incidental or supplementary provisions, the scope of those regulations could not be broadened in the way that her amendment appears to be concerned about.
Further, the reference in subsection (6) to the ability to make different provisions for different purposes does not mean that any of those purposes can go beyond the general purpose set out in subsection (5). They cannot.
I note for completeness that the Government are currently reviewing subsection (5) in response to recommendations made in the Delegated Powers and Regulatory Reform Committee’s report on the Bill. I therefore do not believe that the amendment is necessary for the intended effect. Given the existing provisions and the reasons I have set out, I hope the noble Baroness is reassured and I hope she will agree to withdraw her amendment.
Amendment 88, tabled by the noble Earl, Lord Russell, would place a limit on the amount of the public forest estate that forestry authorities may use for renewable electricity projects. I recognise that our public forests are a national asset and that this amendment has been made in the spirit of protecting them. However, the existing statutory duties and regulatory frameworks will prevent excessive development of the forest estate. The estimated footprint of these renewable electricity projects will be relatively small. There will be no net loss to woodland area or the size of the public forest estate as a result of the renewable electricity projects. Furthermore, any renewable electricity developments will be subject to the relevant planning process and considered against the forestry authorities’ existing statutory balancing duty set out in the Forestry Act 1967.
The Minister gave a very impressive list of different pieces of statute, guidance and legislation from right across the spectrum that guides the Forestry Commission in its work. I just want to plant the idea in her head that perhaps the time has come for some legislation that consolidates all of those requirements. It is now nearly 60 years since we last had a forestry Bill.
I will pass my noble friend’s comments on to the Defra Minister.
My Lords, if this was not the House of Lords, I think I would ask for a round of applause for the Minister. That was very concentrated information over about 15 minutes without even a breath, so my congratulations to her.
Clearly, there is another debate that needs to happen. I am absolutely fascinated by the comments of the noble Baroness, Lady Coffey, that the Forestry Commission is not too strongly into planting trees. That could just explain the fact that we are rather behind on our tree planting targets in this country. I really welcomed the in-depth, practical view of how the Forestry Commission worked from the noble Lord, Lord Roborough.
As far as my amendment is concerned, I can see from what the Minister said in answer to one of the other amendments that the role model here may be what is happening in Scotland. I will look at that further and try to understand further what the Government are trying to achieve in terms of the Forestry Commission and renewable energy. I may or may not come back to this on Report, but at this point I beg leave to withdraw my amendment.
(1 month, 3 weeks ago)
Lords ChamberMy Lords, I will speak to Amendment 89 in the name of my noble friend Lady Hodgson of Abinger, Amendment 92 in the name of my noble friend Lord Fuller, Amendment 94A in the name of my noble friend Lord Forsyth of Drumlean and Amendment 94B in the name of my noble friend Lady Coffey. These amendments focus on a matter of strategic and national importance: the protection of prime agricultural land in the face of increasing pressure from non-agricultural development, particularly the expansion of renewable energy infrastructure. The arguments have been well made already in this short debate, so I can be brief.
In bringing these amendments, my noble friends rightly highlight the wider context in which we debate this issue. The agricultural sector has been under immense pressure from market volatility, environmental challenges and, regrettably, punitive tax measures such as the family farms tax raid. Against that backdrop, it is more important than ever that we protect our best and most versatile land, not just for farmers but for the long-term food security of our nation. The Government must support an approach that balances the need to scale up renewable energy with the critical need to maintain our ability to feed ourselves.
These amendments make a strong case for preventing the unnecessary loss of high-quality agricultural land. As I and other noble Lords have previously highlighted Committee, some of the largest solar developments are being approved without proper regard for the grade or quality of the land being sacrificed. Every one of the large-scale solar farms approved under NSIP that I have looked at has been materially located on best and most versatile land. That is not just a matter for the farming community; it is a matter of national food security. We cannot create a future in which we can switch on our lights and heat our homes but are unable to feed ourselves. We must not let the pursuit of energy security come at the expense of food security.
As others have highlighted, a disproportionate percentage of our best and most versatile land is going to solar. This is madness when 58% of our farmed land is not in the BMV category and there is also a significant amount of unclassified and unfarmed land that could be used for renewable development. With the Government’s ambition to triple solar capacity by 2030, the pressure on land is only going to intensify. Unless active steps are taken now to guide that development sensibly and strategically, we will continue to see the erosion of our agricultural capacity and, with it, increased dependence on imported food.
These amendments are both timely and necessary. They would ensure that solar and other non-agricultural developments are directed towards less productive land or even non-productive land, leaving our best farmland for the essential job of feeding our population. I urge the Minister to take these amendments seriously and offer clear assurances that under no circumstances will the Secretary of State approve developments that compromise the UK’s food security.
My Lords, Amendments 89, 92, 94A and 94B relate to Clause 28 and the protection of agricultural land. I thank the noble Baronesses, Lady Hodgson and Lady Coffey, and the noble Lords, Lord Fuller and Lord Forsyth of Drumlean, for tabling these amendments. Is that the right pronunciation of Drumlean? I am glad he is not here, because I know he would shout at me if I got it wrong.
Amendment 89, tabled by the noble Baroness, Lady Hodgson, seeks to prohibit the construction of ground-mounted solar farms on land of grades 1, 2 and 3A. The Government view food security as national security and champion British farming and environmental protection. All solar projects undergo a rigorous planning process, considering environmental impacts, local community views and any impact on food production. The Government believe that solar generation does not threaten food security. As of the end of September 2024, ground-mounted solar PV panels covered an estimated 21,200 hectares, which is only around 0.1%—not 1%—of the total land area of the UK. Even in the most ambitious scenarios, only up to 0.4% of UK land will be devoted to solar in 2030.
The Government are in total agreement with the noble Baroness in that we want to get the balance right between protecting fertile agricultural land and facilitating renewable energy. The Government agree that protecting food security should always be a priority. That is why land use and food production are already material considerations in planning. Planning guidance makes it clear that, wherever possible, developers should utilise brownfield, industrial, contaminated or previously developed land. Where the development of agricultural land is shown to be necessary, lower-quality land should be preferred to higher-quality land. However, we do not believe the accelerated rollout of solar power under present planning arrangements poses a threat to food security.
The government consultation on the land use framework sought feedback on what improvements are needed to the agricultural land classification system to support effective land use decisions. The land use framework, to be published later this year, will set out the evidence, data and tools needed to help safeguard our most productive agricultural land. It will also lay out how government intends to align the different incentives on land; ensure that joined-up decisions are made at national and local levels; and make accessible and high-quality data available.
As such, we believe that this amendment is not necessary to protect agricultural land. Moreover, a total ban on the use of higher-quality land may have several deleterious consequences. Quite often, a site suitable for solar development will contain soil of varying quality. At the moment, the amount of high-quality land proposed to be developed is examined by planning officers. This is a consideration in planning decisions. Were this amendment to be incorporated into the Bill, large projects could be rejected for the sake of a small area of higher-quality soil that constitutes a small fraction of the overall site.
This amendment would reduce the number of economically viable sites for solar generation, which would increase costs for developers. They may seek to recoup these by placing higher bids in the contracts for difference scheme. That cost is ultimately borne by bill payers. In short, banning all solar development on higher-quality land may endanger the Government’s mission to achieve clean power by 2030, increasing the exposure of British consumers to volatile imported fossil fuels.
I shall touch on the noble Baroness’s point about solar on domestic and non-domestic buildings. Deploying rooftop solar remains a key priority for the Government and we will publish the future homes standard this autumn. The new standard will ensure that solar panels are installed on the vast majority of new-build homes once it comes into force, saving households hundreds of pounds a year on their energy bills. That will support our ambition that the 1.5 million homes we will build over the course of this Parliament will be high-quality, well designed and sustainable.
Additionally, the recently published Solar Roadmap contained several actions for both government and industry to support the deployment of solar PV in the commercial sector. These included unpicking the complex landlord/tenant considerations in the sector by developing and distributing a toolkit for owners and occupiers. The Government set out that rooftop solar on new non-domestic buildings will, where appropriate, play an important role in the future buildings standard, due to be introduced later this year.
The Government have also announced £180 million of funding for Great British Energy to help around 200 schools and 200 NHS sites to install rooftop solar. We expect the first of these installations to be complete by the end of the summer—summer being a flexible concept, so whenever that comes. The Government are assessing the potential to drive the construction of solar canopies on outdoor car parks over a certain size through a call for evidence, which closed on 18 June. We will publish the government response to that consultation. I trust that the noble Baroness will be satisfied with that response and I kindly ask her not to press her amendment.
Amendment 92, tabled by the noble Lord, Lord Fuller, seeks to remove solar projects on high-quality land from the nationally significant infrastructure project regime. I thank the noble Lord for his engagement on this subject. I know that he has spent many years serving in local government and has considerable expertise. However, I hope that he recognises the contradiction in his argument. At the same time as he argues about the very difficult conditions that farmers face in growing food, these are brought about by climate change, but he is using them as arguments not to tackle it by moving to clean energy—so there is a bit of a contradiction in the argument there.
It is vitally important that every project is submitted to the planning process that best suits its impact, scale, and complexity.
Lord Fuller (Con)
The point is that the difficulty that farmers are under may be aggravated by poor weather, either too wet or too cold, but the real problem is that this Government are engaged in a war on the countryside by undermining the finances of every family farm and damaging food production, even with the stuff on bioethanol, taking 1 million tonnes of wheat out of the market. That is the reason why farms are doing so badly—it is not to do with climate change.
The noble Lord was referring specifically to climate impacts on food growing, which I felt was a bit ironic as we are trying to tackle the climate change that is bringing them about with exactly these measures to use clean energy.
The Government recognise the benefit of returning control over decisions to local planning authorities. As of 31 December 2025, we will double the NSIP threshold for solar projects from 50 megawatts to 100 megawatts. However, the Government believe that large solar farms, even when they propose to use higher-quality agricultural land, are best dealt with under the NSIP process.
The NSIP regime is rigorous. Although the decision is not taken locally, local engagement is still at the heart of the process. Under the current legislative framework, developers taking projects through the NSIP regime are required to undertake community consultation as part of the preparation for the application. This gives communities ample opportunity to feed in their views and shape the project. Currently, the level and quality of community consultation, among other factors, is taken into account by decision-makers. I am glad the noble Lord made a protest about the one that he was subject to; I hope communities will do that if they feel that those consultation processes are not being carried out in good faith.
Moreover, considerations under the NSIP regime include any impact on land use and food production. Planning guidance is clear that poorer-quality land should be preferred to higher-quality land, avoiding the use of best and most versatile agricultural land where possible. This is in line with the policy governing decision-making by local planning authorities. Even if there were a marginal gain in public confidence from returning the decision to local authorities, we would not expect the outcomes to change.
This marginal gain must be weighed against the likely costs of this proposal. First, a proper examination of the potential impacts of a large-scale solar farm is a major and lengthy undertaking. Giving this responsibility to local planning departments may place an untenable burden on resources which are already under pressure.
Secondly, it is right that projects of such scale, size or complexity as to be nationally significant should be considered through the NSIP process. These proposals are of strategic importance to the country as a whole, and as such central government is the most appropriate decision-maker. Changing policy to allow decisions about these projects to be taken by local authorities may increase investor uncertainty at a pivotal moment for the Government’s 2030 clean power mission. This may jeopardise our work to reduce reliance on imported fossil fuels, increase energy security and protect consumers from global price shocks, just at the very time when Members have raised the issue of security.
Lord Fuller (Con)
I am prompted to intervene only because the head of the noble Lord, Lord Khan, nearly seems to be falling off with nodding. The point is that the NSIP regime is combining schemes which, frankly, should normally go through the local planning authority. These are disparate, small, stand-alone schemes which fall under NSIP only because the system is being abused to string them all together quite artificially. There are no capacity constraints in local government planning to do with these smaller schemes; we know where they are and we know the issues. To suggest that stringing together a dozen different small schemes is nationally significant demonstrates the falsehood and the paucity behind the argument that NSIP should be engaged in this manner.
These are geographical schemes. As I said, we are increasing the size of schemes that will go to NSIP.
Lastly, I am concerned that accepting this amendment would imply that there are some issues on which the NSIP regime is either not competent or not qualified to adjudicate. This is simply not the case. Setting this precedent may reduce public confidence in the NSIP planning system as it applies to other types of infrastructure. It may undermine trust in decisions which have already been taken. For all the reasons I have outlined—although it sounds as though I have not convinced the noble Lord—I hope he will not press his amendment and will continue to work with us on this issue.
Amendment 94A, tabled by the noble Lord, Lord Forsyth, and spoken to by the noble Baroness, Lady Coffey, seeks to prohibit battery developments on best and most versatile agricultural land. The Clean Power 2030 Action Plan set out an expansion of renewable technologies required to achieve the 2030 ambition, including the acceleration of grid-scale battery development from around 5 gigawatts at present to at least 23 to 27 gigawatts by 2030. Grid-scale batteries, which are rapidly falling in cost and increasing in scale, allow the power system to store cheap excess renewable energy and use this, rather than expensive polluting gas, at times of need.
Can the Minister not deal with the problem of patches of best-quality land on a site with a classic de minimis rule of, say, 5%? That would still allow us to protect the best land without needless delay and Defra—or the new framework that the Minister mentioned—could easily provide the data for that purpose.
I am sure that if the noble Baroness wished to put that forward in the land use framework it would be considered. I always worry about de minimis rules because there will always be the exception to the rule that goes slightly over it, and then you end up with a big problem sorting that out. However, if she wishes to feed that into Defra’s part of the land use framework consultation, I am sure it will take account of it.
I thank the Minister for her extensive response and all noble Lords who have contributed to this debate, especially those who have given support. Many interesting points have been raised, and some very worrying statistics. I simply repeat that, especially given the international situation, we really need to think about national food security and resilience. We import 40% of our food and, if we got into a war situation, we would need to grow more than we are at the moment. It seems counterintuitive to be allowing good agricultural land to be used to generate electricity when this can be done elsewhere.
I will not repeat all the points previously made, except to say that we also need the good will of the British people. We need to ensure that local people can have their views heard. I was heartened when the Minister said that there would be community consultation, but too often these consultations are binned and not acted on—people listen and then some other outcome happens. I hope that community consultation in which local people expressed that they really did not want solar farms would be respected and the schemes would be turned down.
I was slightly disappointed that the Minister did not address the points about foreign investors leasing this land long term. I imagine that we do not know who they are and we are not checking on who is buying what. I am very disappointed to hear that the Minister is not prepared to recognise the depth of feeling on this issue. I withdraw the amendment now, but hope that we can have further consultations and some movement can be made to address what all of us have tried to say about making sure that prime agricultural land does not have solar farms on it. I reserve the right to bring this back at the next stage of the Bill.
(3 months ago)
Lords ChamberMy Lords, these two amendments in my name relate to reference changes within the Bill due to the Government’s amendment with regard to pet insurance and my amendment which the House kindly supported last week with regard to the addition of pet insurance deposits. I beg to move.
My Lords, once again I thank the noble Lord, Lord de Clifford, for all his thoughtful contributions and engagement during the passage of the Bill. Amendments 1 and 2 correct two cross-references in Clause 12 and Schedule 2 and follow on from Amendment 53A on Report. These amendments do not change the substance of the amendment that was agreed on Report and, on that basis, we are happy to agree to them.
My Lords, I thank noble Lords for their contributions and engagement during the passage of the Renters’ Rights Bill. We have debated this Bill at length—passing the midnight hour on one occasion—over the past six months, with many thoughtful and considered contributions from across the House. I am grateful, in particular, to the Opposition Front Bench, namely the noble Baroness, Lady Scott of Bybrook, and the noble Lord, Lord Jamieson, for their robust and constructive challenge throughout the passage of the Bill. I also thank the noble Baronesses, Lady Thornhill and Lady Grender, for their continued engagement and support. I believe we are in broad agreement that this Bill is long overdue and are looking forward to seeing it make a real difference to people who rely on the sector to live and work.
Many noble Lords generously lent their extensive expertise to this debate, including the noble Earl, Lord Kinnoull, the noble Lords, Lord Young of Cookham, Lord Cromwell, Lord Best, Lord Carrington, Lord de Clifford and Lord Pannick, the noble Baroness, Lady Wolf of Dulwich, and many more. While there may be disagreement on some of the issues we have debated, I know we all share the same aim of ensuring that the private rented sector continues to work for all.
Finally, I thank my Whip who sat with me throughout the Bill, my noble friend Lord Wilson of Sedgefield. I am grateful to all the officials who have worked on this Bill, including the Bill team, particularly Aidan Hilton, the Bill manager, but also Hermione, James, Caragh, Tom, Ross, Anna, Camilla, Guy and Stephanie, and my private office. I also pay tribute to all the parliamentary staff, including the clerks, doorkeepers, security and the Public Bill Office, many of whom have had to stay late as we debated this Bill into the early hours. I beg to move.
My Lords, I begin by thanking all noble Lords across the House for their contributions to the scrutiny of the Bill. While we may differ in our views, the commitment shown by Members to improving the private rented sector is evident and deeply valued.
I also extend my sincere thanks to the Minister. She has shown courtesy, patience and great resilience throughout this process, defending what we would consider a difficult Bill and, often, an indefensible one. She has defended a policy that we think reflects more political positioning than practical policy-making.
Despite the Minister’s efforts, we are left with a piece of legislation that risks doing more harm than good. The facts are stark. According to Savills, the number of rental properties on its books dropped by 42% in quarter 1 this year, compared with the same period in 2024. That means 42% fewer homes available: fewer homes for families, less mobility for renters, less choice, and more pressure on rents.
This is not theoretical; it is happening now, and the Bill is accelerating that trend. Its uncertainty around fixed-term tenancies, poorly defined possession grounds, and reliance on stretched tribunals are driving responsible landlords away from the sector. When providers exit, supply shrinks—and when supply shrinks, rents rise.
We understand why tenants seek greater security but let us be honest: much of what the Bill tries to fix are symptoms of a very deep problem. There are simply not enough rented properties in this country, and there will be fewer. Instead of addressing that shortage, this legislation papers over the cracks, with layers of regulation that risk doing more harm than good. It treats the pressures of scarcity—rising rents, insecurity and limited choice—as issues that can be regulated away. Regulation without supply is a dead end.
What we need is a balanced approach. Yes, let us protect tenants, but let us also create the conditions for responsible landlords to stay in the market, invest and offer decent homes. Without that balance, the consequences are predictable, and they are already playing out.
The real target should be the rogue landlords: those who exploit vulnerable tenants and undermine confidence in the sector. The Bill misses that mark. Instead of cracking down on the worst offenders, it heaps new burdens on the majority who act responsibly. What the sector truly needs is a rogue landlord Bill that is targeted, proportionate and enforceable, one that protects tenants without pushing decent landlords out of the market.
Instead, we have a Bill that gets the balance wrong. It risks shrinking supply, increasing costs and adding complexity just when we most need clarity and confidence. The Bill does not strike the right balance between protection and provision. It fails tenants, landlords and the very market that it claims to reform. On this side of the House we will continue to monitor the market and challenge the Government to act on any negative outcomes.
Before I sit down, I congratulate Sam and Molly in my office—it is her first Bill in this House. I thank them sincerely for the fantastic support they have given me and my noble friend Lord Jamieson throughout the passage of the Bill.
My Lords, for the thousands of renters and the good landlords who have been disadvantaged by the actions of rogue landlords around this country, not to mention the local authorities that have had to pick up the pieces of the failure to act over the last 14 years, which has created the worst housing crisis in generations, I hope this Bill will be a blessed relief.
This Bill, combined with the comprehensive package of measures on housing delivery, including £39 billion in funding for affordable and social housing, comprehensive reform of the planning system and unprecedented investment in construction skills and training, will start the process of delivering what we all want to see—that everybody has a fit, safe, secure and affordable home. My young grandson, who is only nine years old, was asked to write about home the other day. He did a diagram with lots of things saying what he felt home was. At the bottom, he wrote, “Home is as special as love”. I thought that was a marvellous phrase from a nine year-old.
I know we will continue to debate some of the detail around the Bill. I hope we can all keep in our minds as we do so how important just having a home is to everybody and how it being safe, secure and affordable is important to everybody.
(3 months, 1 week ago)
Lords ChamberMy Lords, before I answer the Question asked by the noble Baroness, Lady Deech, I start by wishing the extraordinary survivor from the Women’s Orchestra of Auschwitz, Anita Lasker-Wallfisch, a very happy 100th birthday today. I repeat her advice to young people, which was broadcast this morning. She told them:
“Hate is a poison and in the end you poison yourself … Talk to each other before you kill each other”.
I think that is wonderful advice.
Antisemitism has absolutely no place in our society, which is why our Government are taking a strong lead in tackling it in all its forms. We will carefully consider the recommendations of the report. The Government continue to work closely with their Independent Adviser on Antisemitism, my noble friend Lord Mann, and their Antisemitism Working Group, on the best methods to effectively tackle antisemitism and engage Jewish communities around international, national and local events affecting British Jews. I thank my noble friend Lord Mann and Dame Penny Mordaunt for their work on this report and their wider contribution.
My Lords, I echo the Minister’s thanks to the noble Lord, Lord Mann, for all the work he has done fighting antisemitism and for producing this really rather shocking report. Antisemitism, he says, did not increase because of Gaza. It was released from underground by 7 October and, sadly, was nurtured by the BBC being economical with the truth. It is rooted in the unfortunate myths still taught in school religion classes, which need to be tackled, and it is not dispelled by Holocaust education. Most shocking is the NHS, where Jewish patients cannot feel confident of fair treatment: there were more than 400 complaints since 7 October, most of them closed or not processed. Will the Government place the NHS at the forefront of their actions?
My Lords, the evidence that my noble friend Lord Mann and Dame Penny Mordaunt quoted in the report and in the subsequent article published by my noble friend relating to the specific unaddressed issue of antisemitism within the NHS was shocking. They made two recommendations: a summit for NHS leaders across the UK and basic training across every NHS trust. I am sure that my right honourable friend the Secretary of State for Health and Social Care will take those recommendations very seriously and look into them.
My Lords, I am afraid that, contrary to what the Minister said, as the shocking increase in antisemitism shows, there is, sadly, obviously a place in Britain for antisemitism. That is what is happening. I am afraid that one of the main causes is the BBC. If you suggest, as it does, with its disproportionate, unbalanced and biased coverage, that Israel is committing uniquely evil crimes, that is obviously going to drive hostility towards people in the UK who identify with Israel, which is the vast majority of the Jewish community. This is why the Secretary of State for Culture, Media and Sport was completely right to demand changes at the top. Is it not a disgrace that, only yesterday, the BBC’s head of current affairs, Deborah Turness, suggested that there was no difference between Hamas’s Ministers and its military wing? I have to ask the Minister: when are the Government finally going to get a grip?
I know that my right honourable friend the Secretary of State for Culture, Media and Sport is looking very closely at all issues. I am sure she will have taken comments yesterday into consideration as she considers how to address these issues. The noble Lord is quite right that, as we saw an increase of 113% in the UK of hate crimes targeting Jews in the last year compared with the previous year, we need to make sure that that underlying current of antisemitism is tackled wherever it appears.
My Lords, I too congratulate the noble Lord, Lord Mann, and Dame Penny Mordaunt on this excellent report. Its strength is that it is practical, and it gives a very clear steer to the Government on things that could be achieved relatively quickly. I will concentrate on recommendation 5, on the teaching of antisemitism and dealing with antisemitism in schools. A lot of teachers are, frankly, frightened of dealing with this. They feel intimidated and unsupported, and those who have been prepared to try have often been shouted down by hotheads in the community. There are a number of really good studies out there, and I commend the work of UCL and Education Scotland to the Minister. If they took those practical things, I think it would be possible. I ask for the Government to do their best to roll out those reforms in the coming academic year.
The noble Lord is quite right that education sits right at the heart of this. To noble Lords who may not have had time to read the report yet, I commend these examples: Maccabi GB delivering training on contemporary antisemitism across the entirety of English football, which I think is a very clear example; and the agreement between the diocese of Winchester and the local Jewish community to teach primary school teachers how to avoid passing on antisemitism and anti-Jewish tropes in their lessons. These are wonderful examples, as are those quoted by the noble Lord. I am sure that my noble friend the Minister for Education will take those on board and think about how we address this in future. There is also a role for local government here, of course, in promoting this issue, in training and support to schools.
My Lords, as has been said, we are now suffering historically high levels of antisemitism since 7 October, despite the fact that British Jews have nothing to do with the actions of foreign organisations such as the IDF. As the noble Lord, Lord Pickles, said, one theme of the report is to call for more consistency and capacity in the training of people who train others in tackling antisemitism, particularly in schools—which, of course, is where it all begins. How far are the Government considering adopting these recommendations in the report and, if they are, could we have some details, please?
The report contains a number of very clear recommendations. Of course, all of those will be reviewed, and I hope that that will take place right across government. Certainly, I will make sure that my department looks at all the recommendations. As with any report, it takes a little while to assess the recommendations and how they need to be considered and implemented, but I reassure the noble Baroness that, right from the heart of government—I know the Prime Minister was asked about this yesterday—we consider this an important contribution to discussing how we tackle antisemitism in this country. We will take the recommendations seriously and act on them as appropriate.
My Lords, the report found evidence, particularly in its education-focused findings, that some Christian primary school teachers “inadvertently use antisemitic tropes” in lessons, especially religious studies. What urgent steps—they need to be urgent—will the Government take to ensure that these harmful tropes are rooted out of our schools? Will the Minister and her Government set out very quickly how they intend to achieve this?
As I said in answer to the previous question about education, we communicate the examples of good practice that we have seen—for example, in Winchester—across the whole schools community. I am sure that my noble friend the Education Minister will take those on board. I agree with the noble Baroness that urgent action here is necessary. We must not let the passing on of these tropes go on any longer. I hope that we can take urgent action to make sure that good practice is rolled out across our schools as quickly as possible.
My Lords, I commend the brilliance of the contribution of Dame Penny Mordaunt to this report. This is a report for the United Kingdom. Does not this cross-party collaboration, which the UK has long been the world leader in, re-emphasise the importance of every party getting involved in playing its role in tackling antisemitism, and that when we work together, cross-party, we are far more effective in not just giving a message but delivering outcomes which mean that communities, such as the Jewish community, can play their part in this country without any hassle or barriers?
I cannot express strongly enough my agreement with my noble friend Lord Mann on that point. This is absolutely a cross-party issue and we must work together at the national level. There is also a clear role for mayors, council leaders and councillors in supporting Jewish communities, in education and in commemorating the Holocaust, so that the crimes against Jews in Europe are never forgotten. They can also facilitate the conversations and education and the work that needs to be done across communities and civil society. This is a role for all of us, not just one political party.