Planning and Infrastructure Bill

Debate between Baroness Taylor of Stevenage and Baroness Bloomfield of Hinton Waldrist
Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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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 Portrait Baroness Taylor of Stevenage (Lab)
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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.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Baroness Bloomfield of Hinton Waldrist
Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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My Lords, we appreciate all the reasons powerfully set out by the noble Baroness, Lady Bennett, in her proposal in Amendment 481 to instigate a nationwide assessment of land contamination and put in place steps to mitigate that contamination. The push to use brownfield sites for development, which the noble Baroness referred to, is another key reason why this is becoming even more of an issue. As the noble Lord, Lord Foster, said, there are some practicalities around the resources that would be needed for such a survey, while mitigation might be even more challenging.

As the noble Baroness said, at present land contamination is usually determined at, although sometimes before, the planning stage. The developer is then charged, albeit voluntarily, with ensuring that contamination is cleared before the development can go ahead—except, of course, in Teesside, where the public seem to pick up the tab.

There is a case to be made for employing a polluter pays principle, which might be successful where contamination of the land is relatively recent, but that will not always be the case, so some further thought needs to be given to this. If we are going to carry on using more brownfield sites, we will have more occasions when we need to work out how this will be done. Further consideration is certainly needed for that amendment.

The amendment in the names of the noble Baronesses, Lady Boycott and Lady Scott, my noble friend Lady Young and the noble Earl, Lord Caithness, builds on a truly uplifting initiative that we have seen in many areas recently, where councils designate areas of public land that can be used for community cultivation. I was pleased to hear the fantastic examples from the noble Baroness, Lady Boycott.

In my area, we have some beautiful community orchards, funded through local council budgets, but very much at the instigation of the public and with their support for the ongoing maintenance and cultivation. It was just wonderful to hear a conversation in the orchard in my ward between two gentlemen who had harvested the quince tree—we do not have a lot of quinces in Stevenage but we have a quince tree in my orchard. They had found recipes for quince jelly and were standing there comparing notes about the variable qualities of their quince jelly, which was wonderful to hear. It has also been a real pleasure to see local groups taking on the cultivation and management of small parcels of land to improve the street scene in their own area. In some cases, these are designated as pocket parks; in others, they are operated under the licence to cultivate regulations.

The provisions set out in this amendment are proportionate and sensible in requiring a determination by the local authority of what is meant by community cultivation, how it is to be designated and nominated, the setting of clear parameters around the timescales for which land may be made available—I like the idea of a meanwhile lease on these areas—and the publication of lists of such land. We believe that a provision for community cultivation in this way would build on the initiatives already developing in our communities, provide a welcome but very different element to the ever-popular allotment movement—most areas have long waiting lists, as we have heard—and give residents a real stake in managing and cultivating their local area. In some cases, it would provide a way of growing much-needed fresh fruit and vegetables for the community. The noble Earl, Lord Caithness, referred to the quality of food. These projects of course have a double benefit, which was outlined by the noble Earl in reference to his grandson, because people learn about food as they grow it and then also have fresh food to eat.

With all the objectives of this amendment—healthy food, the environment, well-being, community engagement and meanwhile leases of land not currently being used —I cannot see any reason why it could not be accepted by the Government. I hope that it will be.

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, in response to Amendment 481 in the name of the noble Baroness, Lady Bennett of Manor Castle, of course this Government support lessening the risks from contaminated land. Indeed, I well remember our debates on Zane’s law throughout the passage of the Environment Bill and the noble Baroness’s passion for this subject.

Under Part 2A of the Environmental Protection Act 1990, local authorities already have a duty to inspect their areas “from time to time” to identify and require the remediation of any land prior to any housebuilding. Current statutory guidance states that a local authority’s approach to inspection should “reflect local circumstances”. This enables a flexible approach to providing value for money and to protecting the environment and human health. There is also a duty for the Environment Agency to report on the state of contaminated land “from time to time’, or

“if the Secretary of State at any time so requests”.

The noble Baronesses, Lady Bennett and Lady Taylor, and the noble Lord, Lord Foster, expressed concerns about resources. The 2012 contaminated land statutory guidance outlines the polluter pays principle, enabling, where possible, costs of remediating pollution to be borne by the polluter. Under Part 2A of the Environmental Protection Act 1990, the Environment Agency may inspect on behalf of a local authority if a local authority identifies contaminated land that it considers will meet one or more criteria for special site designation, as set out in the Contaminated Land (England) Regulations 2006. If the land is determined as a special site, the Environment Agency will become the enforcing authority and responsible for requiring appropriate remediation to the site.

If no polluter can be found and the site is not designated as a special site, the local authority must investigate and require appropriate remediation of the site. The Government recognise that the costs of remediation, including landfill tax, can be a financial barrier for local authorities seeking the remediation of contaminated land. Defra is currently developing a grant scheme to help local authorities to cover the cost of landfill tax in land remediation projects. In 2023, Defra will publish a revised Construction Code of Practice for the Sustainable Use of Soils on Construction Sites, which will empower and inform industry to protect its sites’ soil health, prevent contamination and mitigate soil being deposited in landfill. I hope that that provides a modicum of reassurance.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Baroness Bloomfield of Hinton Waldrist
Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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I am grateful to the noble Lord for that clarification.

The noble Lord, Lord Moylan, set out the four questions asked by his amendments, and they are all very important questions on which I hope we will hear further from the Minister, particularly Amendment 446, which addresses how this is going to be paid for. That is one of a number of questions on fees and costs that appear about many other clauses of the Bill, so I hope we will have responses to those questions.

The amendments from the noble Lord, Lord Foster, largely relate to ensuring that the safety of short-term let properties is not left to chance. It is particularly important that properties left empty for periods of the year are subject to detailed regulation on safety matters. This would also encourage absentee landlords to ensure that their responsibilities are met. Recently, we have seen increasing pressure on social landlords to address safety provision—in fact, there are very stringent new requirements on them—so it is clearly an issue that the Secretary of State takes seriously. We should not have what would amount to an exemption for the owners of short-term let properties in this respect. I hope that may be addressed.

The noble Lord, Lord Foster, also referred to the difficulty of enforcing licensing restrictions without data from booking platforms. Although I agree with him that booking platforms may be unwilling to release that data, it is really important and, without it, enforcement is difficult to address. Local authorities would struggle without effective data collection methods to enforce some of the matters raised in this debate.

The noble Earl, Lord Lytton, referred to the perverse incentives that exist between council tax and business rates. This is really important to data gathering: there is no incentive for councils, because if they collect business rates, they have to send it all off to our good friends at the Treasury, whereas if they collect council tax, they keep it to deliver services to their communities, so there is not much incentive for them to get matters straight here.

My noble friend Lord Berkeley referred to the importance of being reassured of the safety of the building, regardless of the length of time of the let. If you stay somewhere, even if just overnight, you want to be assured that the building is subject to the same safety regulations as would apply anywhere else you stayed.

Turning to the comments of the noble Lord, Lord Shipley, I am very sorry that the noble Baroness, Lady Thornhill, is not in her place today and I hope he will send her our very best wishes for a speedy recovery. He spoke about evidence to the Built Environment Select Committee from south Devon. I heard a great deal on this from my former colleague on the District Councils Network, Judy Pearce, who is the leader of South Hams Council and has been a powerful advocate of a great deal more action on second homes. The suggestion of pilot schemes—or taking advice from Wales, as I am sure my noble friend Lady Wilcox would say—is always a very good idea.

On 21 March, it was reported that changes aimed at restricting the way that homes can be turned into Airbnbs were being introduced, as the Secretary of State for DLUHC was going to bring them in. He acknowledged a problem with holiday lets preventing young people accessing jobs and homes. Can the Minister give us further information on whether that will come into the Bill as government amendments and when we will see government amendments to this effect?

Those are our comments on the amendments submitted. We support the amendments on registration and we certainly support the amendments on safety.

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, I draw attention to my entry in the register as the owner of a second home in Pembrokeshire, one of the three local authorities that is introducing a licensing scheme—actually, it is not introducing a licensing scheme but a 300% increase in rates unless you rent your house out for more than six months, which I generally do.

This group of amendments concerns the operation of the short-term letting registration scheme introduced by the Bill. To start with Amendment 180, in the names of the noble Lords, Lord Shipley and Lord Foster of Bath—I, too, send my good wishes to the noble Baroness, Lady Thornhill, and hope she recovers swiftly from Covid—I start by acknowledging the important topic this amendment raises relating to holiday lets and second homes.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Baroness Bloomfield of Hinton Waldrist
Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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As the noble and learned Lord already knows, I travel hopefully, so I will take his comments back to the department.

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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My Lords, I am grateful to all noble Lords who have contributed to what has been a thoughtful and interesting debate on this very key topic on the Bill. I will come back to the words of the noble and learned Lord, Lord Hope, from the Constitution Committee, about respect and co-operation, which are absolutely key to making this work across the four nations and the regions of the UK. I add my support to the suggestion from the noble and learned Lord, Lord Thomas, who asked the Minister if, when we get to Report, we could have a letter from the nations of the UK discussing what has been done and the level of co-operation on this subject. That is a very helpful suggestion, for which I am grateful.

We have heard a really clear explanation of what brought these amendments forward: our concern about devolution being completely different for nations which have their own law-making powers and, in some cases, tax-raising powers, and how important it is to distinguish between that and what are, in fact, powers of competency offered to local government under the same word, “devolution”. We have to be cautious of that. The noble and learned Lord, Lord Hope, warned us to be cautious about how consent can be achieved, that consultation is always a better option—I agree—and how funding will be allocated for the purpose of areas outside of competencies. On the experience of local government around funding, we need to be very careful about the boundaries we set between funding for areas that are the subject of law-making in our nations and the funding for areas of competency that come under Bill. We would all want to be cautious about that.

I am grateful to the noble Baroness, Lady Humphreys, for her explanation of what is happening in Wales. There is a lot to learn from Wales: earlier, we heard a powerful speech about child poverty, the future generations commissioner—about whom we have already heard—and the way that, in Wales, a well-being provision is set in law. These are very good lessons for us to learn from, and I hope that we will not miss that opportunity.

The noble Baroness, Lady Humphreys, also urged the Minister to get around the table. I am encouraged by the Minister’s comments on what has taken place so far, but it has not been very clear, as we have gone through the preparation for the Bill, what has happened. That is why I support the suggestion from the noble and learned Lord, Lord Thomas, that we have some indication of how that is being worked on.

We must not miss this opportunity—it has been described as a golden opportunity, and I think it could be—to strengthen the union, and not fragment it, by imbedding the missions in a countrywide and democratic consensus. From what the Minister has said, that seems to be the Government’s intention. I hope that is what will happen because, if it does not, it will be subject to fragmentation.

I spoke about learning from the nations of the UK. I am sure that as well as the specific Welsh examples we have heard here today, there will be examples from Scotland and Northern Ireland that we can learn from, as well as from the English regions. I hope that will be part of the levelling-up experience going forward.

We should not miss the opportunity to instigate a proper debate about the quality of public service delivery, from departments delivering non-devolved services as well as examples of quality where they are delivered in the nations where power is devolved—that will be really important. We do not want to go forward with “one size fits all”. I am still concerned about some of the centralising aspects of the Bill. They come later in the Bill and no doubt we will hear about them in future discussions. However, there is very little in the Bill on funding, which concerned me. We need to know more about the national development plans and how they link in with local plans because, across our nations and regions, that could have the potential to be a centralising factor if we are not careful. Around the models of devolution, I hope they will be flexible to allow areas to have the type of devolution that is wanted and that works for those areas. In addition, there does not seem to be any clear mechanism to draw together the work of government departments in the work of levelling up. I hope that that is set out somewhere clearly, but it did not seem very clear as we went through the stages of preparing for the Bill.

There are some real opportunities here, but there are some real pitfalls that we could fall into—I think they were described that way earlier. As we aim towards levelling up, we fall into the crater of centralisation, making things more centralised in this country, which is the last thing we need. It has been articulated very clearly in this debate that if we really are to level up the country, the best decisions are made at local level. I am a passionate believer in that, and I want to see that work, whether it is in our four nations or in our regions. I hope we can continue to work towards that. There will be more work to do on this, as has been articulated very clearly by the Minister, therefore I beg leave to withdraw my amendment at this stage. However, I am sure there are further discussions to be held on this over the coming weeks and months.