Planning and Infrastructure Bill

Debate between Lord Fuller and Lord Wilson of Sedgefield

Report stage
Monday 3rd November 2025 Lords Chamber

[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—

Planning and Infrastructure Bill

Debate between Lord Fuller and Lord Wilson of Sedgefield

Report stage
Wednesday 29th October 2025 Lords Chamber

[Lord Fuller (Con)]

My Lords, I shall not press this amendment to a vote—we have a lot of business to do—but I am not convinced that the noble Baroness and, inter alia, Natural England as the advisers, have really understood the importance of getting this contractualised, of the enforceability and of considering what might happen not just this year or next but in 80 years and in the intervening period, given the changes of ownership, succession, bankruptcy, sale—who knows? Section 106 may not be perfect, and I accept the noble Baroness’s point about the unilateral undertaking —we are on Report and not at Third Reading. However, I think we should come back to this at Third Reading rather than just leaving it to Natural England.

I have been involved in this space for three and a half years as a person with significant interest in Norfolk Environmental Credits Ltd, the company established by all the planning authorities in Norfolk. We have had to dig deep, take the best advice and try to game all the scenarios to ensure that, ultimately, the promises made by those delivering these conservation measures can and will be delivered for the entirety of the period. The Bill is deficient because it does not seek and frame that enforceability.

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

The noble Lord said at the beginning that he would not be pressing the amendment to a vote, so that should be sufficient, without needing to rehearse the debate yet again.

[Lord Fuller (Con)]

I thank the noble Lord and shall wind up. The noble Baroness and I have a meeting next week, when I hope that we can develop this point further to see whether the Government may somehow address these concerns at Third Reading. At this stage, I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Fuller (Con)]

My Lords, I have spoken about the lifetime of the EDP and the enforceability of measures, but now we get to the price to be charged. I will amplify some of the points in Amendment 141. There are very large sums of money and long periods to be considered here. I do not really care whether MHCLG or Defra has drafted all this stuff as none of them really understands how to discount a cash flow. That is clear. If you are someone who has bought a house from the developer on the basis that the nutrient neutrality obligation has been washed away, hidden in the price of your new home is the market rate for mitigating a new dwelling-house, which in Norfolk is somewhere between £5,000 and £15,000. That is quite a sum.

In Committee, noble Lords, particularly the noble Earl, Lord Caithness, multiplied present prices paid by the number of mitigations in a scheme, got to multi-million pound sums and wondered what would happen to the profit. Well, if only. The profit really depends on the annualised cost of providing the measures, not in one year but over 80 years discounted back to the present value, and none of this understanding is in the Bill.

I know as part of Norfolk Environmental Credits, which I founded on behalf of the local councils, that notwithstanding that we have sold more than £10 million- worth of mitigations, the balance sheet value is zero because of the way that international accounting rules require us to discount the revenues against the costs over the whole period for 80 years. There is no corporation tax to be paid or profit to be booked, only risks and liabilities to be hedged, keeping our fingers crossed that inflation and interest are kept on top of until the last few years, possibly as far away as 75 years’ time, when we will all be dead and the money nearly exhausted unless, of course, the provider has not got his sums right, in which case he would have gone bust years previously. None of this is contemplated by the Bill.

We discussed this in Committee, but there is no more detail here on Report. I think it would be sensible for the Bill to contemplate some benchmark accounting standards to value the upfront cash contributions against the tail liabilities on a consistent basis. The reason is that if we do that and get a level playing field, we will get private operators innovating and competing on the same basis to drive costs down, while still maintaining the obligations. The Bill is silent on all this and, as a result, we will never get the leading private markets in nature mitigation going, which will be a missed economic opportunity for our nation.

What consideration have the Government given to providing a consistency of accounting approach, coupled with the enforceability I spoke of on the previous group? The Bill is long on aspiration but conspicuously silent on the legal, contractual, commercial ways of achieving these objectives. Without commercial contractability, we are never going to get delivery. It is bound to fail unless these things are belatedly considered at Third Reading, but it is very late in the day.

[Lord Wilson of Sedgefield (Lab)]

My Lords, I will first address the amendments tabled by the noble Lord, Lord Roborough, which relate to the regulation-making powers governing the nature restoration levy. It is worth highlighting that the Bill provides the framework, but the detail of how the levy will operate will be brought forward through regulations laid under the affirmative procedure, giving both Houses of Parliament an opportunity to debate them.

Amendments 141 and 175 would preclude Natural England including the cost of purchasing land in the nature restoration levy and prevent Natural England spending levy income on land acquired by compulsory purchase. The nature restoration fund has been designed to work on a cost recovery basis. Given the potential for EDPs to address a wide range of different matters, there may be circumstances where the acquisition of land under CPO or by negotiation is required to deliver the most appropriate and cost-effective conservation measures. Ensuring that these costs are able to be covered by the levy will support Natural England to deliver against the overall improvement test for an EDP. While I recognise the noble Lord’s concerns around the use of compulsory purchase, allowing for these powers is crucial to ensure that there is certainty that, where necessary and appropriate, land can be acquired to deliver conservation measures and these costs are recoverable. Consultation on each EDP will provide the opportunity to scrutinise the measures to be covered by the levy and, as an additional safeguard, compulsory purchase powers can be used only with the approval of the Secretary of State. With this explanation, I hope that the noble Lord will not press his amendments.

Limiting the ability of Natural England to reserve money for future expenditure as proposed by Amendment 176 would constrain Natural England’s ability to plan for the most efficient conservation measures and prepare for unforeseen circumstances, including deploying any necessary back-up measures. This amendment would also undermine the ability of EDPs to cover the costs of ongoing maintenance and upkeep of conservation measures.

Amendment 177 seeks to ensure that regulations will include provisions about the return of any money that is no longer needed for delivering an EDP to the parties that appeared in that EDP. As mentioned in Committee, the scope of the regulation-making powers in Clause 71 is already sufficient to allow for the appropriate management of any unspent funds, as well as allowing for any necessary refund procedures.

Planning and Infrastructure Bill

Debate between Lord Fuller and Lord Wilson of Sedgefield

Committee stage
Monday 15th September 2025 Lords Chamber

[Lord Fuller (Con)]

My Lords, back in 2022, when the nutrient neutrality rules came in, it started a three and a half year hiatus that has prevented the building of new affordable homes, caused the bankruptcy of local architects, the closure of local builders’ merchants, the liquidation of many smaller builders and the folding of so many white van journeyman contractors—the plasterers, plumbers, groundworkers, roofers and tilers.

What was the basis of this catastrophe? As a council leader, I sought to find out. It did not take long to identify Natural England as the culprit. So I asked it for its reasoning. It advanced a theory that there was complete equivalence between the application of a single kilogram of phosphate anywhere in a catchment, regardless of the distance from a special area of conservation that needed protection under the regulations. It fundamentally refused to countenance the sort of risk-based approach that would be applied in any other walk of life or by any other regulator. Its approach was that the flushing of a lavatory directly into the protected Surlingham Broad was absolutely equivalent to going to the loo in Shipdham, over 30 miles away along a convoluted network of ditches, streams, tributaries and rivers before those rivers passed by the Surlingham Broad.

It is nonsense. I do not deny that there might be some infinitesimally small, theoretical riparian link between the lavatory in Surlingham and the toilet in Shipdham, but anyone who has studied for O-level or GCSE maths knows that the area around a point increases with the square of the distance, so the effect of the loo in Shipdham would be 30 times 30—900 times—less impactful; that is, if the water from that loo did not percolate into the aquifer, become assimilated into littoral plants, adsorbed on to soil particles or carried away in a farmer’s crops, in which case the impact would be significantly less, and it is.

When I asked, the designated person said that as there are no major processes for permanent phosphate losses within the aquatic environment, the nutrient neutrality approach is to assume that all the phosphorus will at some point reach the site, albeit this may take varying lengths of time and therefore there is the possibility of it contributing to the eutrophication impacts now or in the future. You do not have to be a scientist to realise that this “bathtub principle” is poppycock.

I asked Natural England to provide me with the scientific evidence. It sent me a slim paper repeating its assertions, with a long list of academic references. So I read them. The academic references that Natural England said supported its position argued the reverse. They made it clear that there were major processes for the permanent phosphate losses from the aquatic environment.

As I said in the previous group, this is my specialist subject. Before I joined your Lordships’ House, I gave written evidence to the Built Environment Committee on this point. I will not list all the ways in which I said that the scientific papers contradicted the Natural England stance but, in summary, it disregarded a whole range of natural mitigation factors, including: confusing adsorption with absorption; denying percolation to the underlying aquifer; ignoring the precipitation of phosphates in the calcareous soils that are found in the Yare catchment and along the River Wensum; the related effects of high soil pH in locking up phosphates; the effect of dilution by rainwater and the flows out to sea; and the incorporation and deposition of organic manures in the crops and along the brooks and streams.

The ban on housebuilding has been advanced on a completely unscientific, false premise, and one cooked up by Natural England. In short, Natural England’s interpretation of the scientific literature was misleading and mendacious. Its justification used selective quotation to misrepresent the balance of evidence.

Under the regulations, the test is one of significant harm. Natural England has misdirected itself and advised Ministers to substitute “significant” with “any”. How can it be trusted if it acts in this way? Its misrepresentation of the risk of the flushing of toilets in new homes has allowed it to prosecute a war on the housebuilding industry without justification. It is the enemy of growth. I can hardly believe I am going to say it, but this is probably the once and only time I believe the Chancellor of the Exchequer, because she has fingered Natural England in the article in the Times referred to by the noble Earl, Lord Russell, as the enemy of growth.

Further, I then scrutinised Natural England’s nutrient calculator, which I found to be loaded with flaws and poor assumptions.

[Lord Wilson of Sedgefield (Lab)]

Which amendment is the noble Lord referring to?

[Lord Fuller (Con)]

I am talking to all of them—particularly those in the name of my noble friend Lady Coffey but also Amendment 333.

There is more. I scrutinised Natural England’s nutrient calculator. It used the wrong digital elevation model. It used the wrong areas of influence on sewage treatment works. No allowance was made for excess capacity in the sewage treatment works. I am going to come to a very important point in a moment. The incorrect number of residents per property was assumed, which is significant where there are holiday homes. It assumed much greater water consumption for each house than we knew to be the case. The numbers for manures coming from outdoor pig units were underestimated by somewhere between 1,000 and 10,000 times, by reference to Defra booklet RB209. Suffice it to say that the calculator is orders of magnitude adrift.

There was then a completely arbitrary 20% buffer applied over and above the calculated number for no justifiable reasons. It was all very shoddy. The dodgy statistics have resulted in an extra £5,000 to £15,000 extra tariff per home for every house built in what is essentially the entirety of the district in which I live and its two neighbours.

Planning and Infrastructure Bill

Debate between Lord Fuller and Lord Wilson of Sedgefield

Committee stage
Tuesday 9th September 2025 Lords Chamber

[Lord Fuller (Con)]

I may have misunderstood what he said, but I thought the Minister was saying they were reducing the power of certain statutory consultees. I know we are probably advancing the consideration of the Bill, because we are going to deal with this next week, but the entirety of Part 3 creates entirely new burdens for an entirely new set of quangos. It is actually going to slow things down. I just wondered whether, in the light of this consideration of Part 3, he might like to review what he has said. If we truly are going to reduce the veto that these statutory undertakings have, then that is absolutely to be welcomed. It is just that the thrust of this Bill is going in the completely the other direction.

[Lord Wilson of Sedgefield (Lab)]

I would not accept that. It has to be a balance between what we can do to make things more flexible and ensuring that we have the right kind of infrastructure to lead to the growth we want in the local economy. We need a flexible system and what we are trying to devise here is that.

Amendments 135HZG and 135HZH cover the important but technical issue of decision-makers revisiting matters which have been established through the grant of planning permission when determining applications for supplementary consents, such as reserved matter approvals. I recognise that these are probing amendments, and I understand the concern about matters being revisited when they should not be. We want to see supplementary consents determined as swiftly as possible. Case law has long established that supplementary consents must focus on the specific matters directly related to the consent and not revisit wider matters which have been addressed by the original grant of planning permission.

However, we are sceptical about the merits of putting this case law on a statutory footing as suggested by Amendment 135HZG. The principle is well established among planning officers and putting it on a statutory footing will not speed up their decision-making. Indeed, it could create new grounds for legal challenges to planning decisions, which we want to avoid.

Similarly, I am not convinced that we need a review on this matter.

Planning and Infrastructure Bill

Debate between Lord Fuller and Lord Wilson of Sedgefield

Committee stage
Thursday 4th September 2025 Lords Chamber

[Lord Fuller (Con)]

This is the Planning and Infrastructure Bill—the opportunity to have this sort of wider debate on asylum, borders and infrastructure was yesterday with the borders and asylum Bill. What we are trying to do here is focus on the very narrow point about when there is a change in the planning status. As my noble friend said, when there is development, should the rules that cover planning and development be engaged and, if so, to what extent? I think my noble friend’s amendments—I am sure she will say something aligned with this when she winds up—would establish the principle that, when development happens, we cannot just pick and choose which bits are subject to planning law and which are not. When development happens, local people should be able to have their say.

It pains me to do so, but I ask the noble Baroness, Lady Pinnock, directly: is it her position that local people should not have a say when development happens and there is a material change of use, either from a hotel to an HMO or from an HMO to a hostel? If it is, we need to know.

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

I ask the noble Lord to get to the point of his question.