Planning and Infrastructure Bill

Baroness Thornhill Excerpts

Report stage
Monday 3rd November 2025 Lords Chamber

[The Lord Bishop of Manchester]

My Lords, I noted what the noble Lord, Lord Evans, has just said. Unlike my predecessor, I have no intention of trying to petition for parts of the diocese of Chester to become parts of the diocese of Manchester, just because of the urban sprawl extending—but I rise to speak in favour of the amendment proposed by the noble Lord, Lord Fuller.

I have served on the boards of a lot of large institutional investors. One of them, the Church Commissioners, had a particular interest in one of the major landowners in the country. I can well see how for an institutional investor that wants to invest in something that is a social good, like building towns, and wants to do it for the long term, because it is interested in long-term return and not just what the next quarter’s figures are going to be, being able to invest in these kinds of things would be the right way to go. Should the noble Lord put this to the vote, I would hope to be with him in the Lobby.

[Baroness Thornhill (LD)]

My Lords, I am broadly in favour of the amendments in this group. As a general principle, we are in favour of any amendments that are genuinely about devolution and not just decentralisation. As we are all aware, there is a significant difference. However, we are aware that this brings issues of governance and accountability that are new to much of the sector at this level, with the difference in governance arrangements and in geography.

We also support the Government’s ambition and political will to build new towns to meet our challenging housing need. But—and it is a big “but”—we nevertheless feel that something as significant, important and impactful as designating a large amount of land for a new town should be subject to the super-affirmative procedure. Everyone’s voices deserve to be heard—and I understand that there is a difference between being heard and being listened to. However challenging and difficult that might be, the process is important, as the noble Lord, Lord Lansley, outlined. Increased scrutiny and the opportunity for revision are essential. We have to get this right for the people and for Parliament. Thus, we too welcome a debate on the new towns agenda and on the sites already designated.

I turn to Amendment 238. It seems to us an inevitable consequence of the new development corporations’ ambitions, roles and responsibilities. If devolution is to really mean something, it must also mean fiscal devolution. It is very unlikely in the present economic climate that any new major developments are going to be totally government funded, so it makes sense to cast the financial net as wide as possible. But—and, again, it is a big “but”—given some local government history on these and related matters, we assume that the Treasury will be concerned about rising debt and potential poor financial controls. With the discredited PFI funding also in the background, it will be concerned also about potential poor value for money. We are concerned that there should be the necessary protections and processes for good government, transparency and accountability. I wonder whether the Government may envisage a more proactive role in this regard for the National Audit Office before investment decisions are made.

Finally, a key question, which my noble friend Lord Shipley raised in Committee, is who picks up the tab if there is a loss on a project, or on several projects, or if a mayoral development corporation is running generally at a loss. Is it the council tax payer or the Government? There was no answer in Committee. It would seem likely to be the Government but, if so, it would be reasonable for them to be involved at all stages of project delivery, which makes Amendment 238 insufficient without explaining what controls would be in place. However, we would still support Amendment 238, because it gives a sense of the direction that we should go in, even if the detail is not yet in place. I look forward to the Minister’s reply.

[Baroness Scott of Bybrook (Con)]

My Lords, on Amendments 235 and 236, tabled by my noble friend Lord Lansley, all I can say is that we support all the intentions of these amendments so ably introduced, as always, by my noble friend. I do not think there is anything more that I can add to what he has already said, apart from saying to the Minister that I think these important questions need answers tonight.

Alongside my noble friend Lord Jamieson, I have co-signed Amendment 238, tabled by my noble friend Lord Fuller. Ensuring that development corporations have access to sufficient finance will be critical, as we have heard, if we are truly to deliver the high-quality new towns and new developments that we would all like to see. Having access to a range of finance resources is a key component to this, empowering development corporations to seek finance from the widest possible range of sources. This amendment would allow them to do precisely that—to access funding not only from the Public Works Loan Board but from private capital, sovereign wealth funds and pension funds, and through value-in-kind contributions as part of joint ventures. Crucially, it would also give them the ability to issue bonds, either individually or collectively with other development corporations.

Why does this matter? I suggest three key reasons. First, it enables collaboration. Development corporations could work collectively across areas, pooling capacity and scale to unlock investment in major regeneration and infrastructure projects that would otherwise be out of their reach. Secondly, it opens the door for local pension funds, particularly the Local Government Pension Scheme, to invest directly in their communities. This builds on the Government’s own commitment to mobilise LGPS capital for local growth. It would mean that people’s savings are working to deliver tangible, long-term benefits in the very places where they live and work. Thirdly, it aligns with the Government’s broader ambitions on devolution and local growth. Page 29 of the English Devolution White Paper makes clear that strategic authorities will have a duty to deliver on economic development and regeneration. Local authorities will be required to produce local growth plans, and LGPS administrating authorities are expected to identify local investment opportunities and put them forward to their asset pools.

This amendment would therefore help the Government achieve precisely what they have set out to do: to channel more of the nation’s long-term capital into productive place-based investment. It would empower development corporations to be proactive, innovative and financially self-sustaining, drawing on both public and private sources of finance to deliver growth, regeneration and prosperity for local communities.