Planning and Infrastructure Bill

Lord Fuller Excerpts

Report stage
Monday 3rd November 2025 Lords Chamber

[Lord Roborough (Con)]

My Lords, I will also speak to my Amendment 231A. I address Amendment 208 individually, rather than as a group as in Committee, because the facts have changed following the CG Fry Supreme Court judgment. This creates an opportunity to accelerate home building, which the Bill currently threatens to eliminate unnecessarily. I will speak to the application of the habitats regulations to Ramsar sites from the Back Benches, and leave the policy area of housebuilding to my Front-Bench colleagues, as it is their speciality. My amendments would remove Clause 90 and Schedule 6 from the Bill, preventing the legal imposition of the habitats regulations on Ramsar sites. Before I go on, I refer the House to my register of interests as an owner of development land, which, as far as I know, is not impacted by nutrient neutrality or Ramsar.

We in government chose to apply the habitats regulations to Ramsar sites through policy as a well-intentioned move to recognise the special international status of these wetland sites. I do not see evidence that our largest neighbours, such as France and Germany, have chosen to do the same. Since then, we have all watched in horror as Natural England’s advice on nutrient neutrality within the habitats regulations has led to as many as 160,000 new homes being blocked. We know that 18,000 of these are through the application of the habitats regulations to the Ramsar site on the Somerset Levels. I and my noble friends have asked the Government several times: how many more homes than this 18,000 are currently blocked by the unnecessary application of the habitats regulations to Ramsar sites? I hope that we can receive that answer today.

The CG Fry judgment, that simply adopting this as policy does not carry legal weight, was right. The habitats regulations derived from EU law and were designed to apply to sites with protection under EU law and no further. Natural England has been able to advise for years that specific land should have SPA or SAC designation and be brought under the habitats regulations. The fact that many Ramsar sites have only partial or no protection as European sites is because, so far, Natural England has judged that they do not need it. Ramsar sites already have protection under paragraph 194 of the National Planning Policy Framework. If, after the CG Fry judgment, Natural England were to advise that more European designations were necessary on the Ramsar sites and the Government accepted that, the habitat regulations would apply at that point. Should my amendment be passed, I am sure that Natural England will want to evaluate that point, and I would urge it to be highly scientific and evidence-based in that process, because the eyes of those needing houses will be on them.

The Natural England advice in the CG Fry case relating to the Ramsar site was not even that development would add to the level of phosphates in the Somerset Levels but that it would slow the rate of improvement in phosphate levels. Natural England had no objection based on the SPA designation for the Somerset Levels. This appears to be a pretty tenuous argument.

I urge the Government to accept my amendments, not to blindly block new housebuilding, and allow the habitats regulations to perform more closely to their original intention. Clause 90 and Schedule 6 unnecessarily and voluntarily gold-plate the application of the habitats regulations to Ramsar sites, for which they were not intended, to the detriment of the broader interests of our country. Without my amendments, this planning Bill, designed to accelerate housebuilding and growth, will actually block housebuilding. I beg to move.

[Lord Fuller (Con)]

My Lords, I have heard time and again during the passage of this Bill from the Government Front Bench that this is a Bill to streamline the obstacles for anybody who wants to get anything done in this country. That is what Amendment 208 does, and I support it entirely.

Just under two weeks ago in the Supreme Court, as my noble friend Lord Roborough mentioned, four years of litigation concluded in the Fry case. The case revolved around the protections of Ramsar sites. In essence, the court was asked to judge whether Ramsar sites were subject to the same onerous requirements as sites protected by the EU habitats directive, including the potential for developments to be blocked at the stage of discharging planning conditions, many years after they have obtained that planning permission.

For over 50 years—since 1971, when the Ramsar treaty relating to over 2,500 wetlands in 172 nations was signed in the town of Ramsar in modern day Iran—it has never been the case that EU habitats directives apply to these important places. For that period, over the entire world, Ramsar sites have been protected without any reference to the EU, EU regulations or any of the other state paraphernalia that flows from Brussels. Why would they be? There are 23 such sites in Brazil, six in Cameroon, one in Mongolia, three in Equatorial Guinea and 39 in Japan. The EU is irrelevant to these places.

Natural England, as the Government’s statutory adviser, quite wrongly asserted that EU habitats regulations were relevant when they are not. Do not take my word for it: take the word of the Supreme Court. It concluded that the regulator had no business in making the equivalence between Ramsar and the other nature sites covered by the habitats directive. The Supreme Court held that Ramsar sites were not subject to this level of protection as they fell outside the habitats directive. Twelve days ago, a regulatory burden was lifted. Inexplicably, the Government now seek to undo that pro-growth judgment by bringing the Ramsar sites back within the habitats regulations, even though they fall outside the regulations’ parent directive.

We need a moment to see what has happened here. The justices concluded that Natural England had overreached itself in its advice to government, that it could not interpret the legislation accurately, that it misdirected itself and, crucially, misadvised the entire development industry as to the truth. Natural England’s dossier had the effect of holding up tens of thousands of homes. The evidence before the court in the Fry case was that 18,000 homes had been held up in Somerset alone, many already with planning permission, owing to Natural England’s misplaced concerns.

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As a Member of Parliament, I was responsible for Cambourne, which had no homes when I started out as an MP but now has, I think—I shall be there on Sunday—approaching 6,000 homes, and for the establishment of Northstowe, which was meant to have 6,000 homes by 2016. In fact, it had none, but it is now having homes built. Both tell us a great deal about the relative importance of early infrastructure and early community engagement. A process by which Parliament is thoroughly consulted about the new towns programme at an early stage, and in detail when the statutory instruments to designate a new town have been drafted, would substantially assist the process of reassuring the communities that will be most affected.

[Lord Fuller (Con)]

My Lords, I will speak to my Amendment 238. I welcome the broad thrust of empowering and reinvigorating the development corporations contemplated by the Bill. In fact, I think it is the best part of the Bill.

Clause 96 seeks the achievement of sustainable development and the mitigation of and adaptation to climate change. However, there will be no sustainable development without sustainable financing of the proposals that the development corporations bring forward. Since Committee, the New Towns Taskforce has published its report, and only this afternoon at Question Time the noble Lord, Lord Wilson of Sedgefield, gave warm words to the principle of private investment in local infrastructure, perhaps by development corporations.

The magnitude of the task ahead of us is nothing short of generational. The state alone will not be able to build these new settlements; neither will councils, nor, as noble Lords heard in the previous group, will the mayors—not quickly, anyway. Only by harnessing the power of the financial markets and other private sector actors at home and abroad, including perhaps private households, will the promise of building these places become a reality. My amendment, supported by my noble friends on the Front Bench, recognises this simple truth. Some 50 years since Milton Keynes and 80 years since Stevenage were designated under the first new towns Act, it is time to bring the development corporations up to date.

I approach this subject in the knowledge that local authorities may be reorganised, that mayors may be created, and that the day-to-day financial pressures they both face have never been greater. In a former time, the development corporations would hold out their hand, perhaps to central government or to local councils, for funding. Of course, that route may be still open in some parts, but we know that the PWLB is capped and, at a time when Nestlé can borrow money cheaper than our Government can, the PWLB is not necessarily the cheapest, best value, or most available source of long-term infrastructure finance for the generational opportunities that my noble friend Lord Lansley so ably identified. Building new towns is the work of generations—it goes beyond political cycles—and relying on national and local politicians will not be enough in a world where a new secondary school costs £40 million and a flyover £100 million.

So we must help the development corporations in the single-minded pursuit of sustainable development, and we must help them get the money right. That means giving them the powers to exploit the distinction between funding and financing. Funding is simply writing the cheque, but financing is putting that deal together. It is no surprise that the financiers in the City of London have the most highly paid professions, because they have the hardest task: putting those deals together. It is not easy to finance difficult prospects but, to get Britain building, we will have to grasp that nettle.

I will not dwell too much on the significance of governance in development corporations, but I will make the factual observation that strong governance, established by statute—that is why I tabled this amendment—leads to higher covenant strength, the ability to take a higher credit rating, and the willingness of institutional investors to pony up the cash early on for infrastructure at lower prices. That is why my amendment is so important. We need to make it easy for the development corporations to raise the funds and for the pension funds to put their shoulders to the wheel, helped by the covenant strength that comes from being a statutory body.

The development corporations must be empowered to engage in all manner of financial instruments, including the issue of bonds, shares or similar, and we should contemplate other sources of finance as well. In my view, that extends to entering into joint ventures with landowners on a territory. Their land could be incorporated at the heart of financing as an in-kind contribution, so they would not enjoy the upfront benefit but they would have a return that is sustained over a long-term period. That may be good for them—it is certainly good for the taxpayer—and it enables us to get the infrastructure built up front more cheaply. It should not be the default position that a development corporation just goes for CPO powers and then ponies up a premium price—10% more than the market value—sustaining all the unpleasantness of the process. There must be a better way. My amendment pathfinds that opportunity.

In Committee, the noble Baroness—rather complacently in my view—said that the amendment was unnecessary because corporations could always borrow from the PWLB, and that was that. The bond markets are suggesting that there may be limits to that approach, which is why we need more flexibility. So I want to place finance in the widest possible context and, without central or local government necessarily acting as a banker in the traditional manner, the development corporations can be empowered.

So, although I accept that development corporations can plan for an area and have regard to all manner of desirable outcomes, ultimately those plans or outcomes will stand or fall on whether the money can be raised and the finance deals put together. That is what my amendment seeks to achieve at the best value and the greatest certainty, with the cheapness and value that come from statutory provision.

[Lord Evans of Rainow (Con)]

My Lords, I will speak briefly to my noble friend Lord Lansley’s Amendment 236. This gives me an opportunity to pay tribute to my noble friend and his work in this House. I declare an interest as chairman of the Greater Cheshire Development Forum.

On new towns and the new town of Adlington, I have to say that it was a wee bit of a shock. I am Lord Evans of Rainow, and Rainow is not far away—it is in the Peak District—and as you look out from the Peak District at the Cheshire Plain, Adlington is in the foothills. It is green belt, so it was a bit of a shock for me and the local communities. It is not every day that between 14,000 and 20,000 houses are set to be built in England’s green and pleasant land of east Cheshire. It was also a real shock to the Macclesfield MP, Tim Roca, as he had got married and was on his honeymoon at the time, but he was quick off the mark and put together the inevitable petition to Parliament against this proposal. It really flies in the face of democratic community empowerment—it is a coach and horses through local government. There are three outstanding local parish councils in that area: Poynton Town Council, Bollington Town Council and Pott Shrigley Parish Council. If you go on their website, you can see clearly that a lot of what they say has been articulated here today: a lack of consultation and accountability.

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Moved by

[Lord Fuller]

238: Clause 96, page 130, line 15, at end insert—
“(c) the funding and financing of development proposals, which may extend to the issuance of bonds, debt or similar financial instruments.”Member’s explanatory statement
This amendment seeks to empower development corporations to seek finance from the widest number of sources whether from PWLB, private money, sovereign wealth, pension funds or value in-kind as part of a joint-venture together with the ability to issue bonds, individually or severally with other development corporations.

[Lord Fuller (Con)]

My Lords, the development corporation parts of the Bill are the best parts of it, and my intention is to make the best of that and to support it. I came here with an open mind, not really knowing whether I was going to press the amendment but. in her winding. the Minister said two things which I am uncomfortable with, so in due course I wish to test the opinion of the House. The first was that there is an apartheid in this country in so far as development corporations are concerned.

[Lord Wilson of Sedgefield (Lab)]

The noble Lord made his speech earlier. We do not need to rehearse what has been said during the debate—I spoke on this issue at the beginning of this particular debate. Perhaps he can let us know whether he will move this to a vote.

[Lord Fuller (Con)]

My Lords, I am getting there; I just wanted to give the two reasons. The first was—

[Noble Lords]

Oh!

[Lord Fuller (Con)]

Your Lordships are only delaying it.

First, the development corporations outside London should have the same financing as those within and, secondly, the Minister mistakenly interpreted my amendment to mean that it required development corporations only to take private finance, whereas it was to give it the option. As I am dissatisfied with the Minister’s response, I wish to put the matter to a vote.