Local Audit (Amendment of Definition of Smaller Authority) Regulations 2025

Baroness Taylor of Stevenage Excerpts

Wednesday 3rd September 2025 Grand Committee

Moved by

[Baroness Taylor of Stevenage]

That the Grand Committee do consider the Local Audit (Amendment of Definition of Smaller Authority) Regulations 2025.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

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.

[Lord Sikka (Lab)]

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?

--- Later in debate ---

[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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Lord Sikka (Lab)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

Motion agreed.

Buckinghamshire Council, Surrey County Council and Warwickshire County Council (Housing and Regeneration Functions) Regulations 2025

Baroness Taylor of Stevenage Excerpts

Wednesday 3rd September 2025 Grand Committee

Moved by

[Baroness Taylor of Stevenage]

That the Grand Committee do consider the Buckinghamshire Council, Surrey County Council and Warwickshire County Council (Housing and Regeneration Functions) Regulations 2025.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

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.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

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.

Motion agreed.

Planning and Infrastructure Bill

Baroness Taylor of Stevenage Excerpts

Committee stage
Monday 1st September 2025 Lords Chamber

[Lord Roborough (Con)]

My 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.

[The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

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[Baroness Neville-Rolfe (Con)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Hodgson of Abinger (Con)]

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.

Planning and Infrastructure Bill

Baroness Taylor of Stevenage Excerpts

Committee stage
Monday 1st September 2025 Lords Chamber

Moved by

[Baroness Taylor of Stevenage]

72: Clause 16, page 22, leave out lines 12 and 13
Member’s explanatory statement
This amendment is a drafting correction which would remove the definition of “qualifying distribution agreement” from clause 16. The definition is unnecessary because the term is already defined for the purposes of clause 16 in clause 13(8).

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[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My 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.

[Lord Lansley (Con)]

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.

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[Baroness Bloomfield of Hinton Waldrist (Con)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Lord Lansley (Con)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

Amendment 72 agreed.

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[Baroness Taylor of Stevenage (Lab)]

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.

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[Earl Russell (LD)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Coffey (Con)]

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.

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In conclusion, the amendments reflect a shared desire across this House to ensure that our forests are designed and managed sustainably and responsibly. As the role of forestry continues to evolve, whether in climate policy, nature recovery or renewable energy, it is right that we scrutinise the balance between economic, ecological and social priorities. I very much look forward to the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

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.

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[Baroness Young of Old Scone (Lab)]

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.

[Baroness Taylor of Stevenage (Lab)]

I will pass my noble friend’s comments on to the Defra Minister.

[Lord Teverson (LD)]

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.

Renters’ Rights Bill

Baroness Taylor of Stevenage Excerpts

Monday 21st July 2025 Lords Chamber

[Lord de Clifford (CB)]

My 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.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

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.

Amendment 1 agreed.

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Moved by

[Baroness Taylor of Stevenage]

That the Bill do now pass.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Scott of Bybrook (Con)]

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.

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[Baroness Taylor of Stevenage (Lab)]

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.

Bill passed and returned to the Commons with amendments.

Planning and Infrastructure Bill

Baroness Taylor of Stevenage Excerpts

Committee stage
Thursday 17th July 2025 Lords Chamber

Debate on Amendment 3 resumed.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I thank all noble Lords for their engagement both at Second Reading and at our subsequent drop-in sessions and meetings. I thank the noble Baroness, Lady Pinnock, for Amendment 1, and my noble friend Lord Hunt and the noble Baroness, Lady Scott of Bybrook, for Amendments 2 to 7, making minor changes to the amendment. As these amendments all endeavour to insert a purpose clause at the start of the Bill, I will consider them together. I just add, following the debate we had earlier today, that I have some sympathy with those who do not want to have purpose clauses as the first amendment—we had 63 speakers at Second Reading, and we have covered some of the same ground—but I understand the noble Baroness’s wish to have one. I will keep my response to Amendments 1 to 7 short, as the purpose and aims of the Bill were debated very fully at Second Reading.

The Government have been consistently clear about the purpose and aims of this Bill, and I am very pleased that the noble Baroness and the noble Lord have identified many of these in their amendments. As outlined at Second Reading and throughout its passage, the Bill is a key component of the Government’s mission and plan for change. It is intended to unblock the planning system and secure the infrastructure we need in this country. We have already delivered significant changes to our planning system through a revised pro-growth National Planning Policy Framework. Combined with these changes, the Bill will help us reach our ambitious plan for change milestones of building 1.5 million safe, decent and affordable homes in England and fast-tracking planning decisions on 150 major economic infrastructure projects in this Parliament.

The Bill will do this by delivering five key objectives. The first is a faster and more certain consenting process for nationally significant infrastructure projects, the focus of our debate today. My noble friend Lord Hunt is quite right to point to the importance of this to achieving growth. He spoke about grid connections. The fact that it can now take longer to get a grid connection than it did to build the whole A1 is a crazy factor of the way planning has blocked some of the growth we need to see. He spoke about the 360,000 pages of planning documents for the Lower Thames Crossing. I can tell him that when we embarked on the major redevelopment of Stevenage town centre, we had a great lorryload of documents turn up for the planning process, so I am very sympathetic to what he said.

The second aim is for a more strategic approach to nature recovery that will unlock a win-win for the economy and for nature. We are clear that this will support nature recovery, and I hope to be able to say a little more about it later this afternoon.

The third aim is to improve certainty and decision-making in the planning system, ensuring that local communities and politicians play their role while maximising the expertise of professional planners. The noble Baroness, Lady Pinnock, referred to steamrolling; this is not steamrolling but engaging communities at the planning stage, when they can have the most influence in the planning process. Local communities and local people can do far more if they influence the plan at local plan stage than when trying to object to a particular application that is in accordance with that local plan.

The fourth aim is unlocking land and securing public value for large-scale investment, and the fifth is introducing effective new mechanisms for cross-boundary strategy planning. That is an important dimension that sits alongside our English Devolution and Community Empowerment Bill, which is currently in the other place.

The Bill will also support delivery of the Government’s clean power 2030 target, ensuring clean energy projects can be built as quickly as possible, including through measures that will increase community acceptability, such as a bill discount scheme for those living closest to new electricity transmission infrastructure.

It is in the interest of our country to make our planning system better to ensure prosperity and sustained economic growth. Many noble Lords have spoken about that already in this debate, and I have no doubt that the Bill will help us to achieve this, along with the other package of measures that we have introduced. I am sure these objectives that I have outlined align with the purpose in the noble Baroness’s amendment and lie at the heart of all our current and future decision-making. I do not believe, therefore, that it is necessary to accept the amendment, as the measures within the Bill speak for themselves.

I will cover some of the points made by noble Lords earlier in the debate. The noble Baroness, Lady Scott, spoke about our ambitious target of 1.5 million safe, secure and affordable homes. This is a manifesto pledge, a pledge in our Plan for Change and a firm commitment from this Government.

The noble Baroness, Lady McIntosh, mentioned councils being able to determine the need for social homes. I was keen to make this change in the National Planning Policy Framework to encourage councils to identify the number of social homes that they need, as distinguished from affordable homes—the definition of affordable homes is much wider—so that was a good step forward. Our policy on brownfield is that it must be brownfield first. I know she has a number of points to make around flooding and I am sure that we will discuss that later in the Bill’s progress. Her point on food production is well made; there is a Defra land use framework which we are hoping will be published any day now, and I think she will find there is some information in that on food production.

The noble Lord, Lord Mawson, referred to place-making. As someone with a new-town background, I agree with the points he made about the importance of the holistic nature of planning and how that makes for good planning.

The noble Lord, Lord Banner, spoke about an overall stated purpose of planning, and the noble Lord, Lord Fuller, raised this with me yesterday. I am sure we will consider all of that further during the course of the Bill.

The noble Lord, Lord Ravensdale, rightly pointed to the link between infrastructure delivery and growth, and he makes a very important point. The purpose of the Bill is to make that connection much clearer and to make sure that the planning legislation supports the growth mission.

The noble Baroness, Lady Neville-Rolfe, spoke about some of the things that can slow down planning and some of the things that we hope will speed up planning. We are introducing a whole package here, from the National Planning Policy Framework to the national development management policies recommended by the previous Government and the devolution package. I hope that, taken together, all those things will speed up the process and encourage the growth that we all want to see.

The noble Lord, Lord Porter, spoke about the functions of the Bill. He is not in his place, but he raised the same point that the noble Lord, Lord Fuller, raised with me about the overall objectives of planning, and the noble Lord, Lord Banner, mentioned this as well. I will give that further thought.

The noble Baroness, Lady Coffey, spoke about completion notices. There is a process, as she rightly identified, for completion notices. It might be helpful if I get some more information for her about how those are being used. There is definitely a power for local government to do that already. I hope that the combination of this Bill and other measures we have taken for local authorities to have the planning powers and the funding they need to move this agenda forward will mean that we see what we all want to see from this.

My noble friend Lord Hunt referred to the OBR report and the potential growth that can be unlocked by this Bill. I am sure that we will continue to debate the aims and impacts of the Bill as we make our way through the amendments tabled for debate. In the meantime, I kindly ask noble Lords to withdraw their amendments.

[Baroness Neville-Rolfe (Con)]

Before the Minister sits down, can I press her on the issue of delays? Saying that the whole package is going to be better and improve things, and therefore growth will come—which we all want—is an ambitious statement, but has any work been done on what the changes will be and what differences they will make? I am on her side and want to try to speed things up, but there seem to be quite a lot of things that are going to slow them down, particularly if we agree to the wrong sort of amendments. Has any academic work been done on this that I could reference? I am not yet clear that we are going to get the speed that we need in the system, particularly on things like the grid.

[Baroness Taylor of Stevenage (Lab)]

I asked the same questions myself, because I suspected I was going to be asked them as part of the debate on this Bill. I asked what work had been done, prior to the Bill, on consulting more widely with the sector, the academics involved in this area and a number of other bodies. I would read it all out, but it is a nearly six-page list of all the work that was done prior to the Bill being drafted. I am happy to circulate it to noble Lords, if that would be helpful.

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[Baroness Pinnock (LD)]

My Lords, the noble Lord, Lord Hunt, began this group in talking about the tensions that are to be found in creating the balance between getting the critical infrastructure that this country desperately needs and how we go about doing it. He quite rightly reminded the Committee of the escalating costs of particular infrastructure developments and gave the reason that risk aversion leads to piles of paper being produced to make sure that nobody is caught out by any of the challenges to the decisions that have been made.

I agreed with that; that is right. But the national policy statements, which are the foundation stones of planning and infrastructure development in this country, are critical. The noble Baroness, Lady Coffey, is right to point out that any fundamental change to our national policy ought to have proper public accountability through your Lordships’ House and from the other place. She is quite right to do that, because accountability helps the process: it helps to maybe expose weaknesses in what is being proposed and maybe enhance the policy statement itself. In the rush for growth, we ought not to throw out the accountability that is essential in planning and infrastructure development—I think that that thread will run through discussions of the Bill. That is the dilemma and the tension we have: where do we have accountability, how much weight do we give to it and how much weight do we give to the urgent need for development? We are going to have to find our way through that.

Everybody here is, I think, anxious that the country is able to produce particularly critical infrastructure and housing without undue costs and delay. It is how we get there that is the problem. I am on board with the noble Baroness, Lady Coffey, in wanting any changes to national policy statements at least to be brought before the House as affirmative resolutions. With that, I look forward to the Minister weaving her way through these dilemmas.

[Baroness Taylor of Stevenage (Lab)]

My Lords, a number of amendments tabled by my noble friend Lord Hunt of Kings Heath, the noble Baroness, Lady Coffey, and the noble Baroness, Lady Scott of Bybrook—whose amendment was spoken to by the noble Lord, Lord Jamieson—seek to amend Clauses 1 and 2 of the Bill, which set out new expectations for the regular updating of national policy statements and also establish a streamlined procedure for updating national policy statements when select changes are made to them.

Amendment 8 was tabled by my noble friend Lord Hunt of Kings Heath. I thank him for the amount of thought that he has clearly put into improving the Bill—and some very radical thinking, which we will come to in later suggestions, but which is always welcome. His amendment was also signed by the noble Lord, Lord Ravensdale. While I absolutely understand and share the desire to improve the speed and clarity of the planning process for nationally significant infrastructure projects and national policy statements, I believe that the amendment’s wholesale approach could potentially have unintended consequences.

First, the amendment proposes fixed time limits for statutory consultation. In the case of national policy statements, statutory consultation is not typically the cause of delay, unlike development consent orders, where we have removed the statutory requirement for pre-application consultation. For national policy statements, the time taken for statutory consultation varies significantly depending on the complexity of the policy area and the nature of the infrastructure involved. Imposing a uniform time limit risks undermining the quality and thoroughness of consultation, especially for those more complex or contentious sectors and projects. The Government’s own consultation principles make it clear that consultation should be proportionate—I think we will hear that word a lot during our debates—to the potential impacts of the proposal.

Secondly, the amendment attempts to tackle concerns about the timeliness of responses by statutory consultees to national policy statement consultations and requests for further information on development consent order applications. Our experience on national policy statements is that statutory consultees respond adequately and without too much delay. We appreciate that there is evidence of slower responses from statutory consultees on live development consent order applications. However, the idea that statutory consultees should completely lose their right to comment on an NPS if they do not respond within a set timeframe may be a step too far or too rigid.

Statutory consultees such as the Health and Safety Executive play a critical role in safeguarding public welfare. Their input is not optional but essential. Instead of removing their critical role in the process, the Government are actively reforming how they prioritise and resource their work across the planning system. This includes measures in the Bill that enable statutory consultees to fund their services across the broader planning system more sustainably and requires them to have regard to government-issued guidance on their role in the NSIP regime.

For the first time, this provides a statutory mechanism to ensure that consultees engage appropriately and in a timely manner, without compromising the integrity of the process. National policy statements are the cornerstone of the NSIP consenting process. I recognise that the spirit of these amendments is in keeping with wider approaches taken to make the system more productive and streamlined. However, the issues faced by national policy statements manifest themselves differently. In practice, these amendments would have unintended consequences that risk damaging how the NSIP system operates.

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[Baroness Taylor of Stevenage (Lab)]

I thank the noble Baroness, and I understand her expertise in these matters. If she still has concerns, I am happy to have another conversation with her.

Amendment 16 would require the environmental principles policy statement to be considered in the development of national policy statements. The environmental principles policy statement is a statutory document that aids policymakers in how to interpret and proportionately apply the five environmental principles. Policymakers are assisted in assessing the environmental impact of policy, but this is not a replication of the environmental impact assessment process. The principles are not rules and do not dictate policy outcomes. Ministers are under a statutory duty to have due regard to the environmental principles policy statement when developing policy, including NPSs. This is a matter of legal compliance and is embedded in the policy-making process.

Furthermore, national policy statements are also required by statute to be accompanied by an appraisal of sustainability which incorporates the sustainability appraisal as well as the strategic environmental assessment and ensures that environmental considerations are fully integrated. A habitat regulation assessment must be undertaken for a national policy statement to comply with the requirements of the Conservation of Habitats and Species Regulations 2017. The preparation of an assessment of sustainability is a comprehensive process and includes an examination of the likely environmental effects of designating a national policy statement and the reasonable alternatives to a national policy statement. It also requires the Government to set out measures to mitigate any significant negative effects identified and any enhancement measures.

The assessment of sustainability is an iterative process done in conjunction with the updating of a national policy statement. For example, I encourage Members to read the assessment of sustainability that was published alongside the National Networks National Policy Statement, which I am sure the noble Baroness, Lady Coffey, will already have done. It sets out a clear methodology of all the above and the environmental principles considered when developing the policy and potential alternatives.

I know that has been quite a long explanation, but I felt that the detailed nature of the amendments warranted going into some detail. For those reasons, I do not believe that a separate written assessment within each national policy statement is necessary.

I turn to some of the points raised by other noble Lords. My noble friend Lord Hunt referred to the capability and capacity of Natural England. That issue has been raised many times—it was raised in the other place and has been raised again here—and we will come to it when we start to debate Part 3 of the Bill.

I wonder whether the noble Lord, Lord Mawson, meant the building safety regulator. I was not quite sure which regulator he was talking about but am happy to answer any questions about that. We have done significant work with the building safety regulator to try to speed up the process. We have increased its resources and changed the chief executive. Things are moving much more quickly already, and the development industry is already seeing a change.

The noble Lord, Lord Banner, spoke about the precautionary principle. We have already had discussions about that today. We have to look out for the proportionate use of precautionary principles without going over the top and gold-plating everything, which I am afraid has been too much of a feature of the planning system in the past.

I thank the noble Lords, Lord Ravensdale and Lord Jamieson, and the noble Baroness, Lady Pinnock, for their contribution to the debate. With all that said, I kindly ask noble Lords not to press their amendments at this stage.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to my noble friend. I thought she gave a very comprehensive and helpful response, and obviously I will withdraw my amendment.

It seemed to me that there were a number of threads, but a particular one is the relationship between what the legislation is seeking to achieve, the role of regulators and planners and the interface with the democratic process. The noble Baronesses, Lady Coffey and Lady Pinnock, had some important points to raise here. In the end, we have collectively created—and Parliament is guilty of this—a whole panoply of quangos and regulators, and I suspect that those who have been Ministers are all guilty of that. Some of that seems to be entirely justified; for instance, you want the Office for Nuclear Regulation to be robust and independent. As a Health Minister, far too many years ago, I was part of the team that created independent reconfiguration panels because Ministers were not able to take decisions on the closure of hospitals as it was all too difficult, so sometimes there is a justification for offshoring. But I agree that we have gone too far and that we need to draw a distinction between the independence of regulators in making judgments and our role as parliamentarians and as Ministers in being tough about their performance, which is what lies behind my amendment.

I understand what the noble Baroness, Lady Coffey, means about the issue, particularly in her patch, where a number of different NCOs go through under different NSIP regimes—the noble Baroness, Lady Pinnock, could talk about cumulative impacts, which I understand—where regulators seem unable to work together, and the box ticking and the judgments they make mean that a collaborative enterprise becomes very difficult. I suspect that is what the noble Lord, Lord Mawson, was talking about in the East End. He, with a fantastic track record in doing this, has a scheme that is partly about improved NHS primary care provision, with housing attached and maybe even commercial development. We are dealing with a host of different bodies, all of which deal with these things in a compartmentalised way, and somehow we have to get through it.

This is partly about the work that the noble Lord, Lord Banner, is doing on the relationship between the proportionate and precautionary principles, and it is also partly about making sure—as the noble Lord, Lord Ravensdale, said—that the new system we introduce asks whether EDPs fit with major infrastructure projects.

Parliamentary oversight, in one way or another, is one way we can overcome some of the barriers, and I have later amendments that put forward some ideas about that. If the democratic process can legitimise the speed-up of what we seek to do, that would be a very helpful move forward. Having said that, I beg leave to withdraw my amendment.

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[Baroness Pinnock (LD)]

My Lords, I apologise for not preceding the noble Baroness, Lady Scott.

Amendment 17 would remove the required consent for the construction of or extensions to a generating station for electricity. Can the Minister explain why, in this instance, the government proposal is that it be disapplied from the existing requirements for going through a proper process? It is important to understand the reason. If it is for timeliness, what causes the delays? If it is for reasons of cost, is that related to timeliness? Is there another way to have accountability and public discourse without creating delays and cost pressures? Otherwise, why would we want to disapply the current requirements for consent? Again, there is a thread of accountability running through this: there is a tension, as the noble Lord, Lord Hunt, mentioned, between getting things done and accountability for local communities.

With those few comments, I look forward to a detailed answer from the Minister.

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Baroness, Lady Coffey, for tabling these amendments. As she said, they are probing amendments, and I hope to be able to give her an explanation. She again mentioned the letter that Minister Pennycook promised. I have asked to be informed whether that letter was sent. If it was, I will provide the noble Baroness with a copy, but it would not be usual, I suspect, for copies of letters that were circulated to a committee in the other place to be automatically circulated here. If that letter exists, I will send it to her.

All the amendments in this group, tabled by the noble Baroness, Lady Coffey, seek to amend the operation of the redirection process as set out in Clause 3, including the replacement of regulation-making powers with time limits or statutory guidance. I recognise that Amendment 17 is probing, so I will first seek to explain how the redirection process has been designed before addressing some of her concerns head on and then turning to Amendment 23. I apologise if these explanations seem very detailed, but it is important to take the time to explain properly.

The NSIP regime was designed to provide a single route through which to consent all types of large-scale infrastructure schemes. As we know, on occasion this one-size-fits-all approach is not proportionate for specific developments. Clause 3 seeks to address this by creating a new power for the Secretary of State to issue a direction disapplying the requirement for schemes above the NSIP thresholds to seek development consent. Clause 3 sets out the circumstances in which a request for a direction may arise, what a request may contain and the steps the Secretary of State must follow in responding. Crucially, the Secretary of State may direct development out of the NSIP regime only if they consider an alternative consenting route to be appropriate given the particular circumstances of the development in question. Enhancing the flexibility of the planning system in this way should reduce burdens on applicants which are otherwise disproportionate and support the Government’s ambitions to have a streamlined planning system. This level of flexibility already exists under the Planning Act.

Section 35 enables the Secretary of State to direct into the NSIP regime those projects which fall outside of the statutory thresholds but which have none the less requested to follow the process for nationally significant infrastructure schemes. This has been invaluable, as we know, for enabling numerous water schemes to progress.

Clause 3 provides that flexibility but in the other direction. It may be that a transport scheme is located in an area with a supportive local authority and does not require the acquisition of land. Instead of requiring the entire scheme to become an NSIP, an applicant could now request to follow the route that is most appropriate to their project. As the Government’s working paper on proposals to streamline the consenting process for infrastructure acknowledged, the existing thresholds have not kept pace with technological advancements. This has held back projects from coming forward—for example, medium-sized schemes—because the process of obtaining development consent was out of kilter with the relatively straightforward nature of the scheme.

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Finally, I thank my noble friend Lady Coffey for also raising these concerns and for bringing forward her Amendments 41, 43 and 44. I am sure we will work closely on this issue as we proceed through Committee.

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Baronesses, Lady Coffey, Lady Pinnock, Lady Scott of Bybrook—the noble Lord, Lord Jamieson, spoke to her amendments—and Lady Miller of Chilthorne Domer, for their amendments to Clauses 4 and 5. I am also grateful to Members across the Committee for the way in which they have engaged with these amendments and what we in government recognise as a significant evolution to the nationally significant infrastructure projects regime.

I am sure we all have experiences of the best in consultation—with a developer that not only consults but truly engages with communities over a period of time to get a better development—and those at the opposite end that carry out a half-hearted tick-box exercise and then crack on without changing anything, keeping a laser focus on their bottom line. We want to encourage the former, not the latter.

All the amendments in this group seek, in one way or another, to reverse changes made by the Government in the other place. Those changes will remove the statutory duty for applicants to consult during the preparation of an application for a development consent order. These are significant reforms to the NSIP regime and therefore deserve our attention. It may be helpful to revisit the rationale behind the Government’s decision to amend the Planning Act in this way.

As I outlined in my Written Ministerial Statement on 23 April, the Government are committed to driving economic growth and taking decisions on 150 major economic infrastructure projects before the end of the Parliament. The level of ambition here is high, as indeed it should be. The UK suffers from outdated and inadequate infrastructure, which is holding us back, not only in economic but in social terms. To deliver new roads, low-carbon energy infrastructure and reservoirs, the UK and its communities need to prosper. We must be open to change, and we are willing to do things differently. I sense a change in public perception on this as well. I think people are beginning to realise that if we want cheaper electricity, and if we want water available for housing and general use, we need to move more quickly to develop the infrastructure we need.

The Government will meet our critical infrastructure commitments only if we take this opportunity to address the inefficiencies that have crept into the NSIP regime over time. One of the most pressing issues is the growing duration of the pre-application phase for projects. In 2021, the average time to secure consent had risen to 4.2 years—up from 2.6 years in 2012. Over this same period, average pre-application timescales doubled. We all recognise that that trend is just not sustainable.

In response to the question from the noble Lord, Lord Jamieson, over the past year, the Government have listened to feedback from the bodies and stakeholders most familiar with the development consent order process. That includes developers and practitioners, legal experts, local authorities, statutory bodies and a range of other interested bodies that play very important roles in the process. Through those discussions, it has become clear that the statutory consultation requirements under the Planning Act, though well intended, are now driving perverse outcomes and unintended consequences.

To answer the point from the noble Baroness, Lady Neville-Rolfe, there are a number of reasons why that is the case, including those that she stated and others. The legislative requirements are too prescriptive; rather than fostering the meaningful dialogue that we all want to see, the process has become overly procedural, encouraging risk aversion, excessive documentation—we have already heard about this—and a reluctance on the part of applicants even to adapt proposals for fear of triggering further rounds of consultation. That has led to confusion for communities and delays for developers.

In responding to the point from the noble Baroness, Lady Miller, where there is consultation, an application would normally include key elements of that consultation in the report to the planning body. Although developers have to state their responses to that, even now they do not need to do anything about what the consultation said; they just have to say why they are not doing whatever they have been asked to do. There will often be mitigations in place, but there do not have to be.

Given all these concerns, it is clear that the statutory consultation requirements—uncommon in other planning regimes—are now acting as an absolute brake on progress. The Bill therefore proposes to align the NSIP regime more closely with other planning frameworks by removing these statutory obligations at the pre-application stage. This change is expected to reduce the average time taken to submit applications by around a year and deliver savings of more than £1 billion across the current project pipeline. In the long term, faster delivery will also help reduce household bills.

As set out in my Statement of 23 April, the Government remain firmly committed to a planning system that supports high-quality applications and delivers benefits for both the nation and local communities. We all recognise that the best applications are those shaped through early and constructive engagement. As the Housing Minister emphasised in the other place, we still expect the NSIP regime to operate on a front-loaded basis, with well-developed proposals entering the system and progressing to predictable timescales. In answer to the noble Baroness, Lady Neville-Rolfe, I do not think there is any objection to voluntary pre-consultation if that is what developers choose to do.

Experience from other planning regimes shows that meaningful engagement can and does take place without statutory compulsion, and that developers are best placed to judge how to take a proportionate approach to consult on their applications, which vary in relation to their scale, location and circumstances.

The development consent order process also incentivises high-quality submissions. In order to proceed through examination within statutory timescales, we are confident that developers will continue to engage proactively so that they are well prepared. As well as any consultation and engagement during the early stages of an application’s development, interested parties will still have the opportunity to raise objections, contribute views and present evidence through participation in the examination process.

To support and inform the implementation of these changes, the Government will launch a consultation about guidance later this summer, which will set out that best practice involves developers undertaking consultation and engagement prior to submitting an application. This will help to ensure that applications remain robust and responsive to local concerns.

The NSIP regime relies on developers bringing projects forward to deliver national policy and meet the UK need for infrastructure. We know that the industry has responded positively to the removal of the statutory requirement, with many major developers reaffirming their commitment to meaningful engagement. They are committed to exploring new and better ways to engage with communities.

If these amendments were accepted, we would risk undermining the very purpose of the Bill and the will of Members in the other place, who requested this change to deliver lasting and transformative improvements to the NSIP regime. The current system would remain burdened by unnecessary delays, risk-averse behaviours and a lack of clarity for communities. For these reasons, I respectfully urge noble Lords not to press these amendments.

I turn to Clause 5 and the amendments tabled to it. However, given the importance of Clause 5, I hope noble Lords will allow me briefly to set out the intended impact of the clause before turning to the amendments in question. The clause contains important changes which will enable the Government to deliver on the policy intent of the changes through Clause 4, which, as we have discussed today, removes statutory consultation requirements at the pre-application stage.

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[Baroness Miller of Chilthorne Domer (LD)]

I apologise for interrupting the Minister, but it might be useful for the Committee to know that I had asked for my amendment to be degrouped. I am not sure what has happened here, but it is my intention to move the amendment in its place after Clause 51.

[Baroness Taylor of Stevenage (Lab)]

Okay, I will not go into the detail on that amendment now but come back to it. It was originally listed as being in this group. I apologise for the misunderstanding. I would just say to the noble Baroness that I am a big fan of digital twinning, so I look forward to the debate on that subject.

I ask noble Lords who have amendments in this group not to press them and I ask the noble Baroness, Lady Pinnock, to withdraw her amendment.

[Baroness Pinnock (LD)]

My Lords, first of all, I thank the noble Baronesses, Lady Coffey and Lady Bennett, my noble friend Lady Miller and the noble Lord, Lord Jamieson, for their supportive words on my amendments. My noble friend Lady Miller summed it up when she said that it is very important to take the community with you. That is the message to developers. The Minister’s response was: it will be the developers’ decision as to whether they will engage in pre-application consultation. I do not know about other people’s experience of developers, but mine is that if you give them an inch, they will take at least a mile. Not requiring a statutory pre-application consultation will mean that communities do not understand or know the detail or broad-brush approach of a development that, for better or for worse, will have an impact on them.

If the issues that the Minister spelled out very clearly about the delays and costs of pre-application consultations are the problem, as she has stated, then surely the approach should be to reform what is required in a pre-application. I have just had experience of a pre-application process that involved a change to a major highways route of about 15 miles long through the area in which I live. We have had three or possibly four levels of public consultation, and in the end nobody was satisfied because nothing had substantially changed from the first one in which changes were made. The pre-application process should be reformed so that people’s voices are heard, changes are made where appropriate and then there are tweaks as the process goes on.

There is no legitimate reason for not allowing people’s voices to be heard. I feel very strongly about this and no doubt the Minister will hear from me again on Report. With that, I beg leave to withdraw the amendment.

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[Lord Jamieson (Con)]

My Lords, the amendments in this group, tabled by my noble friend Lady McIntosh of Pickering and supported variously by my noble friend Lady Coffey, speak to the important principle of consulting those who will be affected by changes, who are often best placed to provide information about development ahead of time. I appreciated the Minister’s comments on consultation in the previous group. The Government themselves are going to a consultation on providing the optimum guidance for consultation in the future. That is a positive, despite the multiple consultations.

At this stage in our deliberations, it is important to consider what “consultation” means. We are not talking about wreckers or blockers. These Houses of Parliament—indeed, your Lordships’ House itself—are constitutionally tasked with consultation and review. That is what we are doing at this very moment: reviewing the Government’s proposal in detail and providing feedback with the intention of making a proposal better and more workable in practice.

As we have heard, category 1 and 2 persons are definitions that refer to persons with significant interests in affected land. They know, literally, the lay of the land, the conditions, the constraints and the opportunities that could be faced by any development in advance of a project being started. The benefit of the knowledge and experience that these parties have must not be understated. One obvious way to prevent bad development is to promote good consultation.

We are keen to see spades in the ground and development starting to get under way, but there is no point if we get bad developments in the wrong place and where they are not appropriate. We have a duty to deliver, but we also have a duty to deliver responsibly. Removing requirements to consult key parties means that the Government increasingly run the risk of championing bad development.

There is also the question of buy-in. The Government will find that the public do not appreciate being done to, rather than being done with. Does this not strike to the heart of what the Government are trying to do with the Bill? The Government will find that if they do not undertake this policy programme carefully, with close reference to the very people they are intending to exclude from the consultation stage—I note the Minister’s previous comments, which are much appreciated—they will not be thanked for it. Consultation with stakeholders is, as noble Lords who are business-minded will know, an important way to build support, gain approval and deliver projects that work.

[Baroness Taylor of Stevenage (Lab)]

My Lords, Amendments 26, 27, 32, 35, 39 and 42 were tabled by the noble Baroness, Lady McIntosh. I am grateful to her for her amendments, and I thank the noble Baronesses, Lady Coffey and Lady Pinnock, for their comments. The noble Baroness, Lady Pinnock, referred to throwing the baby out with the bathwater. I am afraid that, in this instance, the baby has become so fat that it cannot even get out of the bath, never mind be thrown out.

As I have outlined over the course of this debate, these amendments seek to undo a number of amendments tabled by the Government in the other place to remove the statutory requirement for applicants to consult in the preparation of an application. Given that this significant change was introduced during the Bill’s passage—a point I accept from all noble Lords who have mentioned it—I will outline again the Government’s motivations for making the change.

A particular aspect of concern has been the increasing length of time spent at the pre-application stage, resulting from the way that statutory requirements are being complied with. As outlined, consultation has become a tick-box exercise—the very one I was referring to earlier—that encourages risk aversion and gold-plating. We have therefore concluded that these requirements are now serving to slow schemes down rather than speed them up, and that the consultation taking place is not meaningful to the people involved. It just becomes that tick-box exercise.

In bringing in these changes, we want to speed up the typical period taken to submit applications and further save money in this Parliament’s pipeline of projects. We are committed to sustaining a planning system that encourages high-quality applications and delivers benefits to the nation and local communities. We all know that high-quality applications are those that have been developed through early and meaningful engagement with those impacted, including local authorities, statutory consultees, communities and landowners. Affected individuals will, of course, still be able to object to applications, provide evidence of impacts on them and participate in the process through which applications are examined.

As I have explained, in making this change the Government are clear that this signifies not that consultation and engagement are no longer important but just that the current system is not working well for either developers or communities. Guidance will be forthcoming on how engagement can be undertaken so that applicants can produce high-quality applications. We look forward to engagement on this matter. I take the point made by the noble Lord, Lord Jamieson, about consultation on consultation—he is right—but, in this case, it is necessary.

The Planning Inspectorate will continue to consider whether an application is suitable to proceed to examination and be examined under statutory timeframes. The guidance will outline best practice—to answer the point made by the noble Baroness, Lady McIntosh. I cannot give her any absolute detail yet because, as we said, we are consulting on it, but it will outline the best practice, which will involve pre-application engagement. The Planning Inspectorate, on behalf of the Secretary of State, will continue to issue advice to applicants under Section 51 of the Act and have regard to the extent to which applicants have had regard to the advice. These changes will provide flexibility so that applicants can undertake engagement in the way they consider best for their proposed development in accordance with that guidance. I therefore kindly ask the noble Baroness, Lady McIntosh, to withdraw her amendment.

[Baroness McIntosh of Pickering (Con)]

I am grateful to the Minister for her remarks, and to all who spoke. I meant to give a big shout-out to the clerks in the Public Bill Office. I know how hard our Front Bench and the Government Front Bench are working, but I understand that there are only four clerks in the Public Bill Office, who are assisting us with all our amendments, so I am deeply grateful to them for their assistance in this regard.

I am grateful to the noble Baroness, Lady Pinnock, and my noble friends Lady Coffey and Lord Jamieson for their support. The noble Baroness, Lady Pinnock, made a good point about reforming, not removing. Together with the loss of hope value and the new provisions on the compulsory purchase of land that we will come to later, I find it staggering how shabbily treated farmers and landowners are by this Government. I am sure there will be plenty more opportunities to elaborate on those arguments.

I understand that the Government are consulting on the guidance at the moment, but it is regrettable that we are not in possession of the guidance before we are asked to remove Clause 4, or at least to reintroduce the consultation at pre-application stage of category 1 and category 2 persons. It seems profoundly undemocratic—profoundly rude, in the words of the noble Baroness, Lady Pinnock—and I will consider whether or not to bring this back at a later stage. But, for the moment, I beg leave to withdraw the amendment.

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[Baroness Pinnock (LD)]

My Lords, this is a very interesting amendment. In domestic planning applications, and commercial planning applications that are outside the infrastructure process, applications that are refused get a decision notice with a list of the reasons for refusal, which gives the developer the opportunity to review those and resubmit with relevant changes. This goes to the heart of the way the infrastructure application process works, in that we are now going to have a reduction in the pre-application process, and restricted examination in public; consequently, as the noble Lord, Lord Banner, says, the only resort will be to judicial review. The whole process for infrastructure applications needs a real rethink, in my view, because the pre-application stage will throw up some of the problems that the noble Baroness, Lady Scott, referenced, in terms of what might be the causes of refusal. She is quite right that for big infrastructure applications, reasons ought to be given for a rejection of the proposals.

Again, everyone here is anxious that critical infrastructure gets the go-ahead, but it must be given the go-ahead within the right framework of openness, consultation and listening to communities. At the minute, it seems that some of that framework is being removed and is going to be in the hands of the developers, come what may. I hope the Minister will give us some clues that the Government are going to change the process.

[Baroness Taylor of Stevenage (Lab)]

My Lords, we are all optimists.

Clause 6 amends the acceptance stage for applications for development consent. The noble Baroness, Lady Scott of Bybrook, has tabled an amendment to this clause, seeking to ensure that the Secretary of State publishes the reasons for the decision and identifies the relevant statutory or regulatory basis. At the acceptance stage, the Planning Inspectorate, on behalf of the Secretary of State, will consider whether an application for a nationally significant infrastructure project should proceed to examination. This test grants acceptance to applications for the country’s largest and most complex schemes on the basis of whether they can be examined within the strict statutory timeframes set out in the Planning Act 2008. Let us not forget that these statutory timeframes are what applicants admire most about the regime. They provide much needed certainty and clarity.

In our Planning Reform Working Paper: Streamlining Infrastructure Consenting published in January, we indicated that applicants often take a risk-averse approach to the acceptance test, as a refusal or a withdrawal can delay projects and harm investor confidence. Applicants will often gold-plate their application by undertaking additional consultation, delaying applications from coming forward. Accordingly, Clause 6 updates the acceptance test, not just to account for the removal of consultation at the pre-application stage but to increase the flexibility of the acceptance stage, so that applicants are more likely to come forward sooner. In doing so, Clause 6 amends the test to be applied from a “satisfactory” standard to “suitable to proceed to examination”. This wording brings the test closer to the objective of this part of the process.

The amendment proposed would require the Secretary of State to publish the reasons why an application has been rejected, explaining where it has not complied with new Section 55A (2) and (5). It is rightly intended to increase transparency and to protect developers from arbitrary rejection. The Government fully agree with the intention behind this amendment, which is to prevent arbitrary rejections for applicants. That is in part what has motivated the Government to introduce Section 55A. We want to allow for corrective actions, where needed, to enable acceptance rather than outright rejections or the withdrawal of applications. However, for the reasons I will outline shortly, we do not think this amendment is necessary, as the existing provisions in the Planning Act 2008 and new Section 55A provide sufficient transparency and protection for applicants.

The Government expect that this new provision will be used where an application does not strictly comply with requirements but where the application could quickly address any deficiencies or gaps. For example, regulations under the Planning Act require plans and drawings to be of a specified size and scale, and this includes specific requirements where multiple sheets are provided. Where applications need revision to comply with these or other such requirements, this process will allow for changes to be made easily where an application would previously have been rejected. Subsections (2) and (5) of the new section also require the Secretary of State to inform the applicant of what changes are needed and when these are needed by.

Moreover, the NSIP regime is built around strong principles of transparency and fairness. The Secretary of State will still be required to provide the applicant with the reasons why an application has not been accepted. The Planning Inspectorate routinely provides advice to potential applicants under Section 51 of the Planning Act 2008 before an application is submitted and is required to publish such advice on its website. Therefore, advice to the applicant at the pre-application stage, which can be used to highlight any more significant concerns, is already made publicly available. Given that the Planning Act 2008 and new Section 55A already require an explanation to be provided to applicants for why an application has been rejected, we do not believe that these amendments are required.

The Government have committed to consult on guidance to support consultation and engagement for nationally significant infrastructure projects this summer, as I have already outlined. As part of this consultation, we would very much welcome views on the acceptance of applications and the guidance needed to support the changes in the Bill. In particular, we recognise the importance of ensuring that requests made to applicants to provide additional information are proportionate, and we will ensure that guidance sitting alongside this change makes that clear. I hope the noble Baroness is reassured and, for all these reasons, I ask her to withdraw her amendment.

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[Lord Jamieson (Con)]

My Lords, I rise to speak to Amendment 46 in the names of the noble Lords, Lord Ravensdale and Lord Krebs. It is interesting, as mentioned by the noble Lord, Hunt of Kings Heath, and the noble Baronesses, Lady Bennett of Manor Castle and Lady Pinnock, that we keep coming back to this issue of prioritisation, hierarchy and the role of regulators. I particularly note the comments of the noble Baroness, Lady Pinnock, that we need to start resolving this issue. I am sure that on this side of the House we shall come back to it as we progress through the Bill, but I want to focus on this amendment.

There is no doubt that we have to address the issue of low-carbon energy and low-carbon infrastructure. It will be essential to hitting our zero-carbon targets and addressing the challenges of climate change. Although we support the efforts to advance clean energy, we must also guard against an unbalanced approach, particularly one that risks compromising the reliability and resilience of our energy systems. Low-carbon generation should not be considered in isolation, as I believe the noble Lord mentioned, or privileged above all other forms of infrastructure. The grid as we know it is undergoing rapid change; the Government’s ambition to rebuild it around renewable sources within just five years is rooted in ideology. Solar and wind are by nature intermittent. They cannot provide the stable backbone that the grid requires.

The stability of our electricity system depends on what is known as inertia, the capacity to resist sudden fluctuations in frequency. This essential property is delivered by turbines in energy-dense technologies such as nuclear, hydro and gas-fired power stations. It is not delivered by wind or solar farms. Without sufficient inertia, we run the risk of system destabilisation, leading to the worst case of failures and blackouts. We need a serious, detailed plan to safeguard the resilience and sovereignty of the UK’s energy supply. That means ensuring a mix of technologies, including those that deliver system stability and resilience, as well as decarbonisation.

On the amendment, we have a number of questions which we hope noble Lords can address. First, it refers to “sustainable development”, a term that invites interpretation. In planning, there is already a well understood definition of sustainable development in relation to planning applications for housing and commercial development, but I do not believe that that is intended here. What precisely is meant here and how is it to be applied in practice? How do we avoid confusion with the existing interpretation of sustainable development?

Secondly, on the list of regulators, why were these specific bodies selected and by what criteria? We welcome collaboration, but it must be clear and consistent.

Finally, there is the matter of the Secretary of State’s powers to prescribe other relevant bodies by regulation. That is a significant authority, and I would be grateful for clarity on how it would be exercised and scrutinised. Although we support the spirit of this amendment, we urge caution and a desire to have a balanced approach.

Briefly, on Amendment 46A tabled by my noble friend Lady Coffey, she raises an important point, so we will listen carefully to the Minister’s reply. Ensuring that planning consent has considered environmental protections is of course vital and must not be overlooked.

[Baroness Taylor of Stevenage (Lab)]

My Lords, Amendment 46, tabled by the noble Lords, Lords Ravensdale and Lord Krebs, seeks to ensure that in relation to nationally significant infrastructure projects for low-carbon energy, relevant authorities such as the Environment Agency should have special regard for the need to contribute to certain government environmental targets when making representations as interested parties under the Planning Act 2008.

The amendment refers specifically to compliance by the Secretary of State with carbon targets and budgeting; adapting to current or predicted climate change impacts under the Climate Change Act 2008; achievement of biodiversity targets under the Environment Act 2021; and achieving sustainable development. As we have heard throughout the debate today, and at earlier stages of the Bill, it is vital that we move forward and deliver the critical infrastructure that we need, not least to cut greenhouse gas emissions to net zero by 2050. As my colleagues in the other place noted, the Bill can deliver a win-win for growth and nature. Developments such as clean energy infrastructure are key to tackling the climate crisis and supporting nature recovery.

To pick up on the point raised by the noble Lord, Lord Ravensdale, regarding the Corry review, which was important, the review recommended that the Government publish a refreshed set of outcomes and strategic policy statements for regulators, with the aim of restating the Government’s priorities and mandating regulators to use constrained discretion to deliver them. This might answer some of the noble Lord’s questions about this. The Government have accepted this recommendation, one of the nine Corry recommendations being fast-tracked. We are moving quickly to publish the first set of strategic policy statements. I hope that this is helpful.

I thank the noble Lords for their constructive and helpful proposals in this amendment, which seeks to ensure that input from specific statutory consultees is given with the wider context of government targets in mind. The Government agree with the intention behind the amendment. I reassure noble Lords that the Government already have the tools they need to guide public bodies in their engagement with the development consent order process.

The national policy statements for energy infrastructure take full account of the Government’s wider objectives for energy infrastructure to contribute to the achievement of sustainable development and to ensure that the UK can meet its decarbonisation targets. In particular, these national policy statements grant critical national priority status to low-carbon projects. This means that the types of projects that the noble Lord is most concerned with have additional weight in the planning balance. Through the Bill, the Government are introducing a duty on public bodies to have regard to guidance published by the Secretary of State in making those representations which are referred to in the noble Lords’ amendment.

The Government will consult later this summer on what guidance about consultation and engagement on the NSIP process should contain, as I have already outlined. As we review and develop guidance on all aspects of the NSIP process, we will consider, alongside government policy in national policy statements, how we can support the intent of this amendment. I hope that the noble Lord, Lord Ravensdale, is reassured and will withdraw the amendment.

On the request from the noble Lord, Lord Jamieson, about the definition of sustainability, I will consult further and come back to him.

[Lord Jamieson (Con)]

I was repeating the request from the noble Lord, Lord Ravensdale.

[Baroness Taylor of Stevenage (Lab)]

I apologise. I took the liberty of popping out of the Chamber for five minutes. We will reply on that.

Amendment 46A, tabled by the noble Baroness, Lady Coffey, and supported by the noble Baroness, Lady Bennett, seeks to ensure that when determining whether planning consent should be granted for a nationally significant infrastructure project, the Secretary of State must take into account any environmental delivery plan applying to the land that will be developed. The Committee will be scrutinising Part 3 of the Bill in a later sitting. I look forward to that, but I am happy to speak to this amendment today.

The Planning and Infrastructure Bill creates a new type of plan: an environmental delivery plan—EDP. Within an area defined in an EDP, Natural England will identify the impact that relevant development is expected to have on a defined environmental feature or features. These can be features of protected sites or a protected species. Natural England will then set out a package of conservation measures that will outweigh the impacts of the development on the relevant environmental feature.

This process for developing EDPs and the wider set of safeguards across the NRF will be subject to further discussion under Part 3. However, in respect of this amendment, the crucial point is that once an EDP is approved by the Secretary of State that covers development of the type in question and in the location in question, developers will be able to make a payment through the nature restoration levy, which would discharge the relevant environmental obligation being addressed through the EDP. Where a developer chooses not to utilise an EDP, they will need to address these environmental obligations under the existing system. As a decision for the developer, it would not be necessary to require the Secretary of State, when considering a development consent order, to have regard to an EDP that the developer might choose not to use. In these circumstances, the decision would need to consider whether the application was in line with existing environmental obligations.

Further to this, mandating that the Secretary of State takes account of an EDP removes flexibility for the developer on how to discharge environmental obligations. This could impact on the viability of a scheme and would undermine the Government’s commitment to decide 150 infrastructure planning consents during this Parliament, as well as wider growth objectives. I appreciate that there are still some questions in there about how EDPs will work, but that is not the subject of today’s discussion—we will cover that under Part 3.

Furthermore, while the content of an EDP is not intended to be relevant to the planning merits of a determination, if the Secretary of State determines that an applicable EDP is material, they can have regard to it. That is already the case: under Section 104(2)(d) of the Planning Act 2008, the Secretary of State must have regard to any other matters which they think are both important and relevant to their decision. This could include any relevant EDP. I hope that that reassures the noble Baroness, Lady Coffey.

[Lord Ravensdale (CB)]

My Lords, I thank the Minister very much for that response. I will address some of the questions that noble Lords raised. I take the point made by the noble Lord, Lord Jameson, about sustainable development, but he mentioned the specific list of bodies. When we started out with this amendment, we had a long list of bodies and agencies that would be considered within the amendment, but we were informed by the Public Bill Office that that would present hybridity concerns, which is why we limited it to the subset that noble Lords can see in the amendment today. The reason we have gone with those is that most of the issues we have had with regulation of large infrastructure have been to do with the Environment Agency and the statutory nature of conservation bodies, but we have given that power for other bodies to be prescribed in regulations by the Secretary of State.

As I said, I thank the Minister. I am very encouraged by what she said. I note that she talked about the strategic priority statements in terms of duties on regulators, but I would note the strength of a statutory duty, which I think is quite important here in pinning down the objectives of regulators. There will be a lot of benefit in doing that within statutes. I look forward to seeing that in further detail, and I would welcome further engagement with the Minister on this point between now and Report. But, for now, I beg leave to withdraw my amendment.

--- Later in debate ---

I cannot support the noble Lord’s Amendment 65. It proposes to establish a critical national development task force. Since coming into office, this Government have established a vast array of new public bodies, quangos, reviews, action plans, strategies and task forces. None has delivered meaningful results. Rather than simply offload crucial decisions that should be undertaken by Ministers to other bodies, the Secretary of State does not need to establish yet another task force to advise. Such a scenario would lead only to more deliberation and delay, where this Bill is intended to speed up the planning process. This amendment is therefore neither necessary nor appropriate.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it has been a very interesting debate on a critical issue and aspect of the Bill. My noble friend Lord Hunt of Kings Heath deserves a lot of credit for some interesting thinking around how we might unblock some of the serious issues that have been holding up the planning system. I thank all noble Lords who have spoken in this section of the debate: the noble Viscount, Lord Hanworth, the noble Lords, Lord Berkeley, Lord Ravensdale, Lord Jamieson and Lord Banner, whom I also thank for his work in this area, and the noble Baronesses, Lady Bennett, Lady Coffey and Lady Pinnock.

The noble Viscount, Lord Hanworth, spoke about the sclerotic planning system. We all know it is sclerotic. The noble Baroness, Lady Pinnock, argued that that is not because of local government; I have a lot of sympathy with what she says, having spent a lot of time with local government. However, there is no doubt the system is blocked up. There are many reasons for that and I set out in one of my earlier speeches that that is why we require a whole package of measures to unblock the system. We require some new thinking as well, and that is why I am very grateful to my noble friend Lord Hunt.

These amendments seek to amend the various routes of appeal and rights to judicial review for both NSIPs and national policy statements, and a new designation of development called critical national infrastructure.

Amendment 47 seeks to remove the requirement for the determination of permission in judicial review cases concerning nationally significant infrastructure projects to be made at an oral hearing. At present, individuals and organisations seeking to challenge these projects have up to three attempts to gain permission from the court: a paper stage, an option to renew at an oral hearing, and, if unsuccessful, an appeal to the Court of Appeal. Each of these attempts can extend the duration of the claim by several weeks—which I think is the positive thing that the noble Baroness, Lady Pinnock, was talking about earlier—but in some cases, by several months. This is why we are making provision in Clause 12 to streamline this process.

As noted by the noble Lord, Lord Banner, and many stakeholders who responded to the call for evidence on this matter, the paper permission stage is not efficient with regard to challenges relating to nationally significant infrastructure projects. The majority of claims are refused permission at the paper stage; of these, most go on to renew their case at an oral hearing.

Removing the paper stage will allow any disputed question of permission to go straight to an oral hearing. This will help reduce the overall time it takes for a claim to reach a final decision, limiting the period of uncertainty for developers and local communities. This provision does not mean that all future applications will require a permission hearing as cases can still proceed directly to a substantive hearing if the question of granting permission is not disputed by the parties.

The other provision in Clause 12 will ensure that where a judge in an oral hearing at the High Court deems the case totally without merit—I presume that is a legal phrase because it has capital letters in my notes—it will not be possible to ask the Court of Appeal to reconsider. These changes are necessary to prevent meritless claims from holding up projects by exhausting the appeals process and will ensure that legitimate challenges are heard more quickly.

Amendment 48 seeks to amend the Planning Act 2008 to make certain decisions relating to national policy statements exempt from legal challenge. By seeking to remove the right to apply for a judicial review of the Secretary of State’s decision not to carry out a review of the relevant national policy statement, the first part of this amendment would undermine the requirement introduced in Clause 1.

Regarding the second part of this amendment, I recognise my noble friend’s intention to facilitate routine changes to national policy statements by making immaterial changes exempt from legal challenge. However, the public’s ability to challenge the lawfulness of government decisions is fundamental to the rule of law, and it is for the court to determine whether a decision has been taken lawfully.

It is for the court to decide whether a legal challenge ought to be considered, and there is already a mechanism for the court to deal with challenges concerning matters which are not likely to have a material impact. Section 31 of the Senior Courts Act 1981 requires the High Court to refuse permission for judicial review if it considers it

“highly likely that the outcome for the applicant would not have been substantially different if the conduct complained of had not occurred”

Amendment 49 seeks to clarify that legal challenges relating to development consent orders made under Section 118 of the Planning Act 2008 must be brought to the High Court. Section 118 stipulates that proceedings must be brought by a claim of judicial review. Details of the judicial review process are set out in Part 54 of the Civil Procedure Rules and in the relevant practice directions. Further guidance can be found in the Administrative Court’s Judicial Review Guide. It is made clear in the relevant rules, practice directions and guidance documents that applications for judicial review are to be made to the High Court. I trust that this reassures my noble friend that there is sufficient clarity about the process and that legislative change is not required in this regard.

I thank my noble friend for his Amendments 52 and 65, which I will consider together. As he knows, I agree entirely with the intent behind them. As noble Lords will have heard throughout this debate, it is one of this Government’s central objectives to speed up the consenting process for all major infrastructure projects. The reforms we are making to the NSIP regime through the Bill will help us go further in speeding up the consenting process for all the infrastructure this country needs.

As we have already debated, the current pre-application process is producing counterproductive outcomes and extending pre-application timeframes. That is why we are removing the statutory pre-application consultation requirements. We will issue guidance through the Bill to assist applicants, setting out what the Secretary of State considers to be best practice in terms of the steps they might take in relation to a proposed application, in readiness for submitting an actual application.

Doing so will give applicants flexibility in how they consult and engage key bodies, local authorities and individuals about their proposed development, leading to more meaningful and effective pre-application engagement and shorter pre-application timeframes. Through the Bill, we will also enable the Secretary of State to direct certain development out of the NSIP regime, where such development could be considered by an alternative regime that may be more appropriate. This has the potential to expedite the consenting process and deliver infrastructure more quickly.

I appreciate that my noble friend is motivated by a desire to ensure that highly critical and urgent infrastructure projects can progress more quickly. We all want to deliver these schemes as quickly as possible, but we need to make sure we can do so without unnecessary disruption and with sufficient certainty for both applicants and decision-makers. We need to weigh up whether the radical overhaul he proposes is the best way forward, given the changes that we are already making.

As my noble friend knows, a critical national priority status can already be applied to projects and sectors delivering essential infrastructure. Projects with this status are given priority in the planning process, and the CNP policy affects how certain residual impacts are considered in the planning balance. We are starting to see the positive impacts of CNP status on recent NSIP projects; for example, through the energy national policy statements, CNP status is applied to renewable and low-carbon energy projects. With the mandating of regular NPS updates, it will be easier than ever before to consider whether more or different projects should benefit from this status.

My noble friend offers two ways in which a critical status could be applied to projects, and I will speak about both in turn. He suggests introducing a specialist task force to provide independent advice to the Secretary of State. This is, in essence, the role that the independent examining authority fulfils under the NSIP regime. Under the Planning Act 2008, a panel of experts is appointed to examine each NSIP application and make recommendations to the Secretary of State on whether a project should be given consent. As setting up a specialist task force would likely draw from the same pool of planning and infrastructure experts, such a proposal risks disruption to the NSIP regime and slowing down the consenting of infrastructure.

Also in this amendment, my noble friend suggests granting deemed consent for critical national development. This is an interesting proposal, but it faces a number of challenges. First, deemed consent cannot be used to consent development that is required to be assessed under the environmental impact assessment and habitats regulations regimes. Most major infrastructure projects are EIA developments and must undergo a full EIA process, including the submission of an environmental statement and an assessment by the relevant authorities. Secondly, further questions would arise around the Government’s compliance with international law, notably the Aarhus convention. This requires signatories to enable concerns about the impacts of a project to be incorporated into the decision-making process. This is what the Planning Act 2008 already enables, through the examination stage and consideration of relevant representations. Failure to account for this is likely to increase the risk of legal challenge and make planning decisions more vulnerable to being overturned by the courts.

I now turn to my noble friend’s amendment that would introduce a power for the Secretary of State to designate certain classes of development as a critical national priority. Once designated, these projects would follow the normal process for a DCO but then be subject to additional parliamentary approval. A public Bill would be introduced, which given that it affects private interest, would then engage the petitioning process. Once petitions are resolved, the Bill would be fast-tracked through both Houses to Royal Assent. The objective of this process would be to protect the DCO from judicial reviews.

This proposal is, without doubt, interesting and thought-provoking. As we have already debated today, the Government are using the Bill to tackle meritless legal challenges that delay projects and increase costs. We have also demonstrated that we are willing to go further, if necessary, to speed up the planning system and get Britain building.

The amendment touches on complex issues around the role of the courts versus Parliament—as the noble Lord, Lord Banner, indicated—in managing the conflicts that arise between private and public interests on large-scale infrastructure projects. It has enabled us to debate novel solutions to the challenges we face in building the infrastructure we need. The measures in the Bill already make targeted and impactful interventions to the consenting system to ensure greater certainty to investors and applicants, which will speed up the delivery of national infrastructure priorities, including those of critical urgency. For those reasons, and because of the discussions we have already had, I hope that my noble friend will not press his amendments.

On the amendment which seeks to repeal Section 150 of the Planning Act 2008, with the aim of reducing post-consent delays to construction, I thank my noble friend for raising this matter. It is indeed something the Government have been considering. When applicants submit their DCO for a nationally significant infrastructure project, Section 150 enables them to include other prescribed necessary secondary consents as well. The intent behind this section was to ensure that the NSIP process could be a one-stop shop, with applicants securing all the permissions they need to build via a single process. This could save them precious time and avoid them having to seek these consents separately after they have secured development consent.

However, Section 150 is drafted so that for certain prescribed consents this may be done only with the permission of the relevant regulatory body. Repealing Section 150 means that securing permission from the relevant consenting body, such as the Environment Agency, would no longer be necessary.

Planning and Infrastructure Bill

Baroness Taylor of Stevenage Excerpts

Committee stage
Thursday 17th July 2025 Lords Chamber

[Baroness Coffey (Con)]

My Lords, I am delighted to be in Committee. I agree with the impact of these clauses in consideration of future judicial decisions. It matters because there has been a trend in aspects of case law that then make other aspects of complying with the law rather complicated, leading to some of the adjustments that the Government are seeking to secure. When we talk about judicial review and what the Government are intending, the noble Lord, Lord Hunt, has tabled some rather drastic amendments. I am not surprised. Mr Robbie Owen gave evidence in the other House that my noble friend Lord Banner’s review did not go far enough. My noble friend Lady Neville-Rolfe hit the nail on the head. What is going to change?

The amendment from the noble Baroness, Lady Pinnock, is right. At the moment nothing in the Bill ties everything together to make sure that we get more homes built and improve the natural environment. We have to make sure that happens.

In her closing speech at Second Reading, the Minister said that councils have a lot of powers. I would be interested to understand what amendments may come in at this stage to achieve the objectives that the Government say the Bill is trying to achieve. Why are we not seeing certain powers being granted to the Government to speed up housing—not just planning permission but completion? The Town and Country Planning Act allows councils to issue completion notices. As the Whip in the Commons on the Infrastructure Act 2015, I had to deal with four Ministers, so good luck to the Whips here on the Front Bench in co-ordinating all that. The Government took powers there for when councils were being slow. It was not necessarily call-in, but if they were not keeping to timetables, the decisions could be made by Ministers. I do not think that happened very often under the previous Conservative Administration, but here we seem to be going with a sledgehammer to crack a nut. Why are Ministers not using the powers they already have to achieve what they want this to do and instead putting this legislation in place? That is why I welcome the amendment from the noble Baroness, Lady Pinnock. It gives us an opportunity to ask, “What is this Bill going to do? Will it achieve the aims of what is there?”

I make a plea through the Minister for Bill managers to update the parliamentary website with all the different things that they said that they would write on. The Minister in the other place promised on 29 April to write about one of the clauses that we are debating today, but Parliament is still waiting. To my knowledge, no letter has been issued. It is certainly not on the Bill website, and it certainly has not been deposited in the House. That is a further plea about process.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

The letter went out yesterday on some of the issues that were raised at the drop-in. The noble Baroness may have missed that in her inbox, but it did go out yesterday.

[Baroness Coffey (Con)]

I appreciate that, and I have not seen it in my inbox, but I am referring to Minister Pennycook making a pledge to write in Committee in the Commons. I am not aware that has ever been issued. It is certainly not available to Members of this House. It would be great, as a general approach, if we could try to make sure that is there.

Overall, this Bill needs to be massively strengthened to make sure—to quote Ronseal—that it “does exactly what it says on the tin”, that we will get the outcome that my noble friend Lady Scott on the Front Bench has put forward in Amendment 3 and that we will get on with making sure more homes are delivered for the people of this country, as well as other aspects of infrastructure that I recognise this country desperately needs.

Commission on Antisemitism Report

Baroness Taylor of Stevenage Excerpts

Thursday 17th July 2025 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My 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.

[Baroness Deech (CB)]

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?

[Baroness Taylor of Stevenage (Lab)]

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.

[Lord Austin of Dudley (Non-Afl)]

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?

[Baroness Taylor of Stevenage (Lab)]

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.

[Lord Pickles (Con)]

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.

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Burt of Solihull (LD)]

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?

[Baroness Taylor of Stevenage (Lab)]

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.

[Baroness Scott of Bybrook (Con)]

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?

[Baroness Taylor of Stevenage (Lab)]

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.

[Lord Mann (Lab)]

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?

[Baroness Taylor of Stevenage (Lab)]

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.

Rutland Lieutenancy

Baroness Taylor of Stevenage Excerpts

Tuesday 15th July 2025 Lords Chamber

[Baroness Berridge]

To ask His Majesty’s Government what steps they are taking to protect the ceremonial status of Rutland’s lieutenancy in the forthcoming local government reorganisation.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, how wonderful to go from the outer reaches of the world to Rutland and the lieutenancy. That is the benefit of our House. I thank the noble Baroness for her Question. I understand that she has close personal connections with Rutland.

Our Government believe that the historic identity, rights and privileges of counties in England are extremely important and should be safeguarded and celebrated. There is no intention that reorganisation will impact on ceremonial rights and privileges, and we will ensure that they are maintained. Where specific provision is needed in legislation, this will be considered as necessary to reflect the local circumstances in each area. On Rutland, Minister McMahon has met and provided written assurances to Alicia Kearns MP. I have met the leader of Rutland County Council, who also raised this issue with me.

[Baroness Berridge (Con)]

I thank the Minister for the clarification that if legislation is needed to protect the county status, it will be given. I am sure the Answer will be welcomed by the more than 7,000 people in Rutland who signed the petition about the ceremonial status that was presented in the other place by Alicia Kearns recently. But will the Minister please confirm the timing of that legislation? That is the issue that people from Rutland have raised with me. Bizarrely, when the unitary authority is abolished, the ceremonial status will be abolished. Can the Minister confirm that that will not happen until primary legislation has preserved that status? Which legislation is it envisaged that that issue would be within the scope of?

[Baroness Taylor of Stevenage (Lab)]

We are still in the process of working with that local area on its proposals for unitary local government. We invited its proposals, and councils in the area sent us their interim plans in March and received detailed written feedback on those submissions in June. At this stage, no decisions have been taken on those interim proposals, so decisions will be taken on that in due course. The legislation to enact the devolution proposals has just been introduced in the other place. So, as that proceeds, we will be considering carefully the sequencing of any further legislation that is needed in respect of these ceremonial boundaries, which we all want to protect and safeguard.

[Lord Foulkes of Cumnock (Lab Co-op)]

The Minister is absolutely right that it is a great tribute to the House of Lords that we can look after the interests of the 41,000 people of Rutland, the lord-lieutenant and the 12 deputy lieutenants. Does she also agree that if President Putin and President Trump did the same in their own countries, the world would be a better place?

[Baroness Taylor of Stevenage (Lab)]

I think that is probably a question for my noble friend Lord Collins to answer, rather than me. But the point is that this issue of devolution will provide greater power and decision-making, and greater funding, for all our local areas. That is a benefit to all of us in the country, and I look forward to working with all areas, including Leicestershire, Leicester and Rutland, as we move these proposals forward. It is a great project we are working on, and the community empowerment part of the Bill is as important as the English devolution part.

[Lord Caine (Con)]

My Lords, it is over 50 years since one of the most unloved reforms of local government in our history. Given the changes that are now taking place, has the time not now come to drop altogether the word “county” from local government administrative units and to restore, for ceremonial purposes, including by realigning lieutenancies, all our historic counties with their traditional boundaries, including of course the Ridings of God’s own county of Yorkshire?

[Baroness Taylor of Stevenage (Lab)]

We all want to see all power and strength to Yorkshire. None of us would be without our Yorkshire Tea, would we? It is very important. At the moment, local government is engaged not only in local government reorganisation but in the devolution project. We will consider whether any further realignment of ceremonial boundaries is necessary, and there will be some areas where further legislation is needed on this. For the moment, we will work with local government to do the reorganisation. If the noble Lord wants to talk to me further about the West Riding or anywhere else, I am happy to have that discussion with him.

[Baroness Pinnock (LD)]

My Lords, 50 years ago, as we have heard, there was a reorganisation of some of the great counties of our country. In some instances, communities that had no previous relationship were forced together. What assessment have the Government made of the success or otherwise of creating a coherent whole from an artificial amalgam?

[Baroness Taylor of Stevenage (Lab)]

As the noble Baroness will know, I grew up in a new town in Hertfordshire, which, when it was first announced, was not the most popular decision. That was back in 1946. We have all worked together on this, and now we have a very coherent picture in Hertfordshire. People work with us, and we are working on our unitary proposals. There are always memories of historical areas that people want to retain, and I think the Answer to the noble Baroness’s Question set out that the Government recognise how important these ceremonial areas are. Some of them go way back in history, and we have a lot to do to undertake the local government reorganisation. So, if there is any further reorganisation to be done, we can certainly consider it. But I think there is enough going on for the moment. These historical memories are really important to people, and we should value and treasure them. That history and heritage are part of our country.

[Baroness Eaton (Con)]

My Lords, I declare my interest as a vice-president of the Local Government Association. Rutland County Council is one of England’s highest-performing local authorities, not least in the area of adult social care. Rutland residents have always felt very close to their council and their elected members, and all decisions have been made locally. With that in mind, will the Minister outline the tangible benefits for Rutlanders of forcing this small but perfectly formed council to become part of a larger unitary authority, and what data has the Minister based her views on?

[Baroness Taylor of Stevenage (Lab)]

First, no forcing is involved here. We put out an offer to submit proposals and have had proposals back. I have met all the councils in Leicestershire and Rutland and, separately, the Mayor of Leicester. There is a very strong will in the county to work together—they have been working very well together—and we look forward to taking these proposals forward with them. I hope it is of reassurance, not only to Leicestershire, Rutland and Leicester but to other counties in our country, that administratively they will be working under different boundaries but that will not affect some of the historical links that they have between them.

[Lord Wallace of Saltaire (LD)]

My Lords—

--- Later in debate ---

[Lord Wallace of Saltaire (LD)]

I have just been reading the newly published English Devolution and Community Empowerment Bill; I have not yet got through the full 300 pages but I am puzzled by the term “community empowerment”. The Bill empowers mayors and strategic authorities and gives mayors the power to appoint up to seven commissioners, who will be responsible only to them; it cuts down the role of individual councillors; and the strategic authorities will be a very long way above local communities. Should we not cut “community empowerment” from that Bill?

[Baroness Taylor of Stevenage (Lab)]

I am sorry but I strongly disagree with the noble Lord’s view on that. We want to improve engagement, and this will create a fantastic role for community councillors to work with their local areas. We are very clear on the importance of engagement and of developing proposals for strong, stable unitary councils fit for the future, including engagement with local residents and stakeholders, Members of Parliament, businesses and public service providers.

[Baroness Scott of Bybrook (Con)]

My Lords, can the Minister please clarify the anticipated timescale for local government reorganisation in England, and indicate what elections for which authorities are expected to take place in the next year?

[Baroness Taylor of Stevenage (Lab)]

The Government’s starting point on elections is for all elections to go ahead unless there is a strong justification. So we anticipate that for areas except Surrey—which, as the noble Baroness will be aware, is moving on a much faster timescale, being on the most ambitious timeline—there could be elections to new unitary councils in May 2027, ahead of the go-live of new councils on 1 April 2028.

Housebuilders: Information Sharing

Baroness Taylor of Stevenage Excerpts

Tuesday 15th July 2025 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, the housing market can thrive only if there is fair, open competition, and it is right that the CMA acts where this is not the case. The CMA housebuilding study was right to highlight the areas for improvement in the market, and that is why we have responded to its findings about delivering a system that works in the public interest. The £100 million additional funding proposed for affordable housing will mean more families can benefit from a safe and secure home.

To answer the noble Baroness’s point about information, the seven companies highlighted in the CMA report have agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing and not to share certain types of information with other housebuilders, including the prices houses are sold for, except in very limited circumstances.

[Baroness Thornhill (LD)]

My Lords, I thank the noble Baroness for her Answer. There could be an alternative version to this: major housebuilders pay £100 million to halt the CMA’s investigation into potential illegal collusion through the sharing of competitively sensitive information that could have inflated house prices. While this settlement might appear a pragmatic, cost-effective solution, would it not be more useful to have some evidence-led answers about whether the business models of the major developers are a significant factor in the slow delivery of housing? Therefore, should not the Government insist that the CMA actually completes its investigation, rather than allowing a financial settlement that obscures the fact and definitely looks dodgy?

[Baroness Taylor of Stevenage (Lab)]

The CMA is continuing its work on this, and on 9 July it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation. That consultation closes on 25 July, and I have already set out some of the commitments that the seven companies have made. The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations. I hope that will make a significant contribution to delivering the affordable housing we all want to see.

[Lord Young of Cookham (Con)]

My Lords, if the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the Minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity, otherwise they will simply get their money back?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord makes a very good point. I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.

[Lord Best (CB)]

My Lords, irrespective of the merits of the £100 million deal done between the CMA and the seven volume housebuilders, does the Minister agree that we should be reducing and indeed eliminating our dependency as a nation on a small oligopoly of major housebuilders? We need more variety; we need SME builders doing more; and we need the new development corporations set up at arm’s length to local authorities by mayors and combined authorities to replace our dependency on a very small handful of large-scale housebuilders which, I am afraid, will always let us down.

[Baroness Taylor of Stevenage (Lab)]

I have much sympathy with what the noble Lord says. He has great expertise in this area, and I recognise that. Our focus is on creating a more balanced and competitive market overall by addressing the systemic barriers that prevent SMEs and others delivering more homes. We are taking action to support SMEs across the three main challenges that we know they face: access to finance, access to land, and an uncertain and complex planning system. We have announced two immediate packages of measures to support buildout and SMEs via £100 million in SME accelerator loans and measures to support faster decisions on smaller sites, which I hope will help.

[Lord Rennard (LD)]

My Lords, the one-off payment of £100 million towards affordable housing is only about 3% of the operating profit of the five biggest housebuilders this year. Is this a relatively small penalty for them to pay for anti-competitive practices over many years?

[Baroness Taylor of Stevenage (Lab)]

As I already commented, this is the biggest settlement ever achieved by the CMA. Of course, we can always do with more money for housing. We have to consider what is appropriate in these circumstances. I am sure the CMA has done that. This will undoubtedly make a significant contribution to delivering the affordable housing we all want to see. I am sure that the CMA will continue to watch the market very carefully to see that the changes that are introduced as a result of its report make the difference that we know we need.

[Baroness Scott of Bybrook (Con)]

My Lords, UK GDP fell by 0.1% in May, with declines in industrial output and construction dragging down the overall performance. What communication has the Minister had with the construction industry to ensure that not just major housebuilders, which we have heard about, but the important SME housebuilding sector are supported? What support is she giving them to grow rather than stall or regress, as they are at the moment, particularly in the context of the Government’s housing ambitions?

[Baroness Taylor of Stevenage]

I thank the noble Baroness, although I have set out already the action that we are taking to support SMEs, including the £100 million in SME accelerator loans. We are working collaboratively with all stakeholders, including large developers. That includes setting up the major sites accelerator, which is helping to unblock some of the sites that we know have been held up in the process. A lot of work is being done with the Home Builders Federation, the industry and development companies to make sure that, alongside our reforms to planning and infrastructure delivery, we are moving this on as quickly as possible. As my noble friend Lord Livermore has just said on the previous Question, this will make the biggest contribution to growth, and we know that that is what will get our country going again.

[Lord Aberdare (CB)]

My Lords, I welcome what the Minister has said about support for SMEs and construction. Are the Government also looking at other issues bedevilling SMEs in the construction sector, such as poor payment practices and cash retentions?

[Baroness Taylor of Stevenage (Lab)]

I understand that slow payments and retentions are long and ongoing issues. We have to continue to look at all the barriers to SMEs as we go through the process of trying to speed up housing delivery in this country. Without removing some of those barriers we will not meet the ambitious total of 1.5 million homes that we want to deliver. We need to make sure we are unblocking all the areas that are causing problems in the system.

[Lord Kamall (Con)]

My Lords, the Minister has rightly talked about the barriers faced by SMEs and smaller developers entering the market. One of the issues identified is planning departments. What conversations have the Minister or the department had with some of the smaller housebuilders, as a facilitator to conversations with planning departments, to ensure that they are able to understand some of the complexities of getting their developments through planning?

[Baroness Taylor of Stevenage (Lab)]

The issue of skills and capacity in planning departments has been a real focus of this Government since last July when we were elected. We know that that is one of the areas in which we need to support local authorities. We have put large sums of money into creating 300 new skilled planning roles in local government and improving the pipeline of planners coming through, as well as addressing some of the other skills issues in the sector, which we know are critical to delivering this. Lots of developers have mentioned the building safety regulator, which is another aspect to this, and the noble Lord may know that we have made rapid changes there. That is moving on very quickly now.

[Baroness Butler-Sloss (CB)]

My Lords, what are the Government doing to encourage more skills and expertise, which I gather are lacking?

[Baroness Taylor of Stevenage (Lab)]

The noble and learned Baroness is quite right. The age profile of some of the skilled workers in the construction sector is higher than we would want it to be. We have put £600 million into improving skills, setting up 10 new technical colleges so that we can encourage young people to take up trades in the construction industry. It is an exciting industry to be in, so I hope that they will follow that through. We are trying to encourage some of those people in the construction sector who are getting closer to retirement age to take on roles as trainers of young people, so that we pass on the skills of the current generation to the next generation.