Planning and Infrastructure Bill

Debate between Lord Inglewood and Lord Fuller

Committee stage
Wednesday 17th September 2025 Lords Chamber

[Lord Fuller (Con)]

My Lords, I am greatly concerned that the Bill potentially freezes out the role for private sector providers, thus stopping the flow of investment into nature. That said, I was mildly reassured by the letter that came this morning. Nevertheless, I am anxious that the proposition is that Natural England will become a monopoly consolidator and provider of mitigation solutions—with the dead hand of the state. This Bill should define how private operators can work alongside Natural England to address the market for mitigation.

In an earlier grouping, I explained the distinction between permitting and licensing. In my view, licensing is the way to go for the EDPs, not least because it will prevent the derivatives—secondary markets that enrich speculators at the expense of delivering the outcome. We cannot afford to create a new milk quota disaster with the creation of a collateralised asset class that has everything to do with speculation and nothing to do with nature recovery. That is not an argument against private involvement; it is an argument for channelling and regulating what is a fast-developing industry.

I support Amendments 258 and 268 because they seek to put in place how we deal with private industry and how Natural England is required to engage with it. This Bill should set the terms of trade. How will those 80-year-tail liabilities be secured? What step-in rights will there be in the event of the provider going bankrupt? Will the obligations be characterised as in Section 106 or as a land charge at the Land Registry? The Section 106 route has criminal and prosecution routes in the event of non-compliance, but a land charge is an unenforceable civil matter subject to litigation. How we deal with these will be very important and needs to be in the Bill.

I spoke about these tail liabilities. I have some experience with this, as I declared earlier. I am a director of Norfolk Environmental Credits Ltd, the device through which the local councils in Norfolk manage environmental credits. We are subject to international accounting standards. We need to take into account our covenant strength. I do not believe that this has been thought through at all. We made about £5 million-worth of sales of credits to local developers, but the balance sheet value was nil because we had to discount that income over an 80-year tail. I see my noble friend Lord Mackinlay nodding. He is a tax man and understands these things.

The interplay between the P&L and the balance sheet is something that the Bill has not contemplated at all—and it must. Unless we include sensible benchmarking accounting standards to value the upfront contributions against those tail liabilities, we will never give confidence and clarity so that schemes can be consistently compared. None of this essential detail is contemplated by the Bill but it should be.

This is before we get to private industry having a role in the pricing, and the heroic assumption that Natural England, as is anticipated, will be able to deliver mitigation more efficiently than a competitive, healthy private sector. Given the monopolistic nature of the state-owned mechanism for charging, and the speed at which the large bureaucratic organisations operate, this completely unqualified assumption seems tenuous. There are obvious conflicts of interest and susceptibility to legal challenges through those conflicts. How is Natural England going to kitemark private proposals? What protections would private operators have against predatory pricing or the loading of legal contractor inspection costs on to innovative solutions, with the only opportunity for these private operators to appeal being against the organisation that is trying to eat their lunch?

We need the innovation of private providers so that we avoid muddled thinking. I am delighted to see the noble Lord, Lord Hunt of Kings Heath, in his place. He characterises as eco-zealots those who order the use of bat bridges, the eye-wateringly expensive bat tunnels—each of which was a colossal waste of money —or the sloppiness of the designation of land at Ebbsfleet as unfavourable when it was not unfavourable.

We need a streamlined process where developers can work with landowners to propose and have certified good schemes delivered in local markets at sensible prices—especially now that we contemplate that hundreds of these EDPs may be produced. While Natural England is focused on its own proposals, we need to give comfort to private operators that their applications will be dealt with promptly rather than them submitting the ideas and not having them taken seriously by Natural England. That is no way to proceed. We need to establish contract certainty, the legal basis and the enforceability of these projects, with the assurance that the mitigations will be delivered over the liability period.

Failure looks like packaging and collateralisation of these schemes into another subprime crisis. We must guard against that. The private sector has a role and can and should work in tandem with Natural England. But all this counts for nothing unless the terms of trade are set.

I have other things to say but, given the time, I will stop there. The Bill needs to state explicitly that the private sector has a role to play. But Natural England should have a statutory duty to actively assist competition in this space in a prompt and timely manner, even if it is at the expense of its own proposals.

[Lord Inglewood (CB)]

My Lords, as I listened to this debate, I thought that everybody was talking about it from the perspective of the person who does the work. The prime focus of what we are discussing should be the best outcome for nature. The most choice available to help nature is the route we should go down. Therefore, we should not exclude any possibility of all kinds of commercial arrangements that may surround this, some of which, particularly given the points drawn to our attention by the noble Lord, Lord Fuller, we may not yet even have thought of. We should keep every option open to ensure that the outcome for nature is ultimately the prime consideration.

[Lord Fuller (Con)]

I thank the noble Lord. He makes a point that I missed when I turned a page in my notes. Essentially, we are creating financial instruments with muddy wellingtons attached. We need to think about that balance as we contemplate how the Bill will work in practice, with those 80-year requirements to keep and maintain these projects contemplated by the EDP. It needs a change of thought.

Certainly, international accounting standards will be at the front of our mind. This is the sort of question that actuaries at life insurance companies are employed to handle. They know that they have a liability and what sum of money is needed up front to deal with it. That is not contemplated at all in Clause 59. It needs to be. That is the point I am trying to make. The state cannot do it itself—it needs a flow of private money coming into this space to benefit nature, but one that has its feet on the ground and where the numbers add up.

Planning and Infrastructure Bill

Debate between Lord Inglewood and Lord Fuller

Committee stage
Thursday 4th September 2025 Lords Chamber

[Lord Inglewood (CB)]

My Lords, I will briefly support my noble friend Lord Cameron of Dillington’s amendment. In the 1980s, I was chairman of the development and control committee of the then Lake District Special Planning Board, and I can see no reason why those kinds of organisations should not be treated exactly the same as the others on the inherent merits of what is being proposed and what the authority members wish to occur. I was the Secretary of State-appointed member of the Lake District Special Planning Board. It occurred to me then that that was rather analogous to being a Member of your Lordships’ House as a life Peer—but, of course, I would not understand that.

[Lord Fuller (Con)]

My Lords, I strongly support this set of amendments, particularly Amendment 135HZE, which I think my noble friend is just about to wrap up on.

Noble Lords will recall that I have been a councillor and sat on a local planning committee for 23 years; I was the leader for 17 years. It was one of my privileges to appoint the committee and choose the chairman. I always explained to my members that the purpose of planning was not an administrative function that existed as an end in itself—although this Bill sometimes treats it as if it were so—but to arbitrate between the private interests of the applicant and the public interest. I use the word “arbitrate” purposefully, because people who sit on a planning committee have a difficult job. They must weigh up so much conflicting information within an adversarial system and, ultimately, either the proposer or objector wins.

Much of this Bill is established under the false premise that local planning committees are blockers of development and that the ranks of officials will not rest until every square inch of our nation is concreted over. But this is nonsense. The premise is that officials bring none of their prejudices to bear, but that is simply not true. We have Natural England, which leaves no stone unturned in blocking development. We have the railways, which ballast every proposal with ridiculous costs, such as £5 million for a footbridge to cross between two platforms. We have the highways authorities, which tie themselves in knots under the misdirection that personal transport outside development boundaries is unsustainable. That is before all the other bad actors in many other quangos that increasingly advance their own narrow self-interests rather than the public interest.

I do not deny the importance of some of their representations, but the problem with these quangos is that they all claim a veto—it is their way or no way. It is from these vetoes that we have got the £100 million bat bridge, to which I expect my noble friend Lord Howard may refer. It is from these vetoes that we get this mitigating trade in natterjack newts or whatever they are, organisms that are rare in Europe but commonplace in every English village pond. And then of course there is the insanity of nutrient neutrality, as if building a bungalow in Bristol is going to somehow clean up the River Wensum.

Given the way planning works, in many cases it takes only one of these vetoes from just one of the statutory consultees to block the entire proposal. That is especially the case when officers advise members to refuse an otherwise acceptable proposal on the overly precautionary grounds that an adverse decision could be grounds for appeal or expensive judicial review. We need the planning committee to cut through the undergrowth, and to stop looking over their shoulder and being fearful of challenge.

I congratulate my noble friend Lord Banner, who is not in his place, on his report in which he made several recommendations. But those will count for nothing if there is nobody without the mandate, duty and courage to get those applications to committee. In my experience, it is the committees populated by the accountable councillors that do more to get Britain building than the faceless dead hand of the state quangos.

We need elected people who know a self-serving veto or spurious objection when they see one. We need people on the ground who know the importance of building homes, economies and places that enhance communities to arbitrate those competing interests. That is why this amendment is so welcome and necessary. It is absolutely right that the chair of the planning committee, working with the senior planner, should be able to revisit otherwise fatal objections to get that balance, to enable the local champions who populate those committees to take all the evidence into account, to listen carefully to objections, to balance the private and public interest and to get Britain building, and not pander to the self-serving quangos sometimes interested only in pursuing their own ideologies to the exclusion of all else.