Planning and Infrastructure Bill

Lord Jamieson Excerpts

Committee stage
Monday 15th September 2025 Lords Chamber

[Baroness Coffey (Con)]

My Lords, I welcome the amendments in the name of the noble Earl, Lord Russell. He referred to two different utilities. Energy should, in effect, be unlimited in the resource available, but it is concerning to a number of communities that, suddenly, energy projects, substations and so on are popping up around the country and lots of planning applications are going in alongside them from solar farms and for other significant uses of data, including data centres and other AI infrastructure. As a consequence, what proportion of grade 1, grade 2 and grade 3a land is now being taken up with planning applications, due to not only solar farms but all the AI-related infrastructure to which the amendments refer? I do not know whether the Minister has that information; if not, I would be grateful if she could write to us.

On Amendment 185P, unlike electricity and energy, water is very much a constrained utility in this country. The amount of water available to keep powering homes, businesses and other activities, including energy stations, is significantly under threat. That is one reason why there will be one of the most significant contractions in the amount of water available to the farming sector in just two years’ time. There is something to be said about the amount of water that we think will be used by AI data centres and the like. At the moment, there seems to be no thinking about how we prioritise the different industrial sectors across our country. Nor am I aware—I am sure that the Minister will correct me if I am wrong—that we are necessarily considering this in planning guidance, although there will be something more widely about whether water is available. This is a really important activity and the Government should absolutely be looking at it, regardless of whether this goes into the Bill.

When I did the plan for water, on making sure there was a clean supply of water—that was part of the intention—and thinking ahead, I do not think that we had really given much thought to this sort of consumption that we are now due to have. To give an example, one reason for the major delays to Sizewell C was that, all of a sudden, the water company responsible said that it could not necessarily guarantee the amount of water to be used in the construction and operation of the nuclear energy plant. That has led to Sizewell C having to think about desalination plants and reservoirs but, at the moment, there are constraints on how some of these things can be spread across sectors in the generation of a nuclear energy station. It is imperative that we think about where else this could happen; to be serious, in terms of the building planned and business growth in the east of England, after Sizewell C was given its consent, no other business has been eligible to get or ask for any more water.

This is a genuinely critical area that the Government need to look at, which is why I welcome the amendment put forward by the noble Earl today. I hope that they will give it serious consideration and I encourage the noble Earl to bring it back on Report.

[Lord Jamieson (Con)]

My Lords, I suspect that many noble Lords across your Lordships’ House are not yet fully aware of the growth, scale and significance of what we call AI-related infrastructure—the hardware and software required to create, train and deploy AI-powered applications and solutions. If we are to fully harness the benefits of AI, unlocking these new efficiencies, fuelling economic growth and creating opportunities for infrastructure investment, we must be mindful of the practical impacts that come with it, as the noble Earl, Lord Russell, and my noble friend Lady Coffey have pointed out, with the two key areas being energy use and water.

As the noble Earl has highlighted, the sheer computational power required for advanced AI models is immense, leading to rising energy demand. Equally, the cooling systems necessary for AI data centres can involve significant water usage. These are important considerations and it makes sense that our planning system and national guidance should take them into account to ensure that infrastructure growth is both sustainable and resilient. I do not believe it is the noble Earl’s intention that these amendments hold back innovation; rather, they call for statutory recognition of these impacts within the planning system, supported by a clear national strategy, guidance and reporting requirements. That seems to me both proportionate and sensible.

The noble Earl’s Amendments 185R and 185S rightly highlight the urgent challenge of climate change and the central role that planning and development must play in addressing it. Their emphasis on ensuring a resilient and sustainable built environment is both timely and welcome, and I place on record our appreciation of the sentiment behind them. At the same time, however, it is important to strike a balance, supporting sustainability while avoiding overly burdensome requirements or excessive regulation that could impede housing delivery or economic growth. I look forward to hearing from the Minister how the Government intend to respond to these concerns.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I thank the noble Earl for his amendments on AI infrastructure and community energy projects. He is absolutely right to highlight the issue of the water and power required by data centres. Before I respond, I should say that we need to be very proud of our AI in this country. We have the third largest AI market in the world. The AI sector was valued at £72 billion in 2024 and is projected to be worth over £800 billion by 2035. Over £44 billion of investment has been announced for data centres in the UK since July 2024, which is a very good record, but of course the noble Earl raises some very important issues that run alongside this.

Turning first to Amendment 185N, noble Lords will be aware that we had an in-depth discussion in Committee last week on overheating and climate change, and I appreciate the intent behind this amendment of considering this matter in the context of emerging AI technologies. During my time as a Minister—and until last week I had responsibility for AI in my department; it has moved on now—I had the chance to see some of the real opportunities that AI presents. It has the potential to transform our public services, secure growth and raise living standards, and not least to support our colleagues in planning in order to help them move things on much more quickly. It is this Government’s ambition to harness it for the good of our country, which is why we are actively monitoring the data centre sector and published the first government Estimate of Data Centre Capacity in May 2025, which includes measures indicating energy use.

Some data centre applications will have the option of being consented through the nationally significant infrastructure project regime. Officials from the Department for Science, Innovation and Technology are in the process of developing a national policy statement to guide this process, which will also be treated, importantly, as a materially significant consideration in the local authority-led planning process. This statement will include an assessment of the sustainability of the sector, and we are aiming for publication in 2026. The Government have also, as the noble Earl mentioned, established the AI Energy Council, co-chaired by the Secretaries of State for DSIT and DESNZ, to provide expert insight into the energy needs of AI and the role of AI in an efficient and sustainable energy system. To do this, the council has established a sustainability working group which will explore options to accelerate the development of low-carbon energy solutions to power AI, tools to reduce carbon emissions from AI, and metrics to support energy efficiency.

Amendment 185P is focused on the water use of AI infrastructure. The Government are committed to reducing the use of public water supply by 20% by 2037-38, with a 9% interim target for non-household reduction by 31 March 2038. As part of this commitment, Defra is working with the Department for Science, Innovation and Technology, the Department for Business and Trade and the Environment Agency to determine how water efficiency and demand in data centres can be improved. Data centres use a variety of cooling systems, with only a small proportion using entirely water-based ones. Water-cooled data centres can use water very intensively, as has already been highlighted, particularly at times of peak demand, such as hotter periods. In summer 2025, the Environment Agency conducted a survey with the data centre sector, through techUK, the trade association for data centres, to gain a better understanding of current water needs. As set out, the Government are developing a national policy statement to guide data centre planning applications, and the water efficiency of data centres will form part of this assessment, including options for water reuse and non-potable water systems.

The noble Baroness, Lady Coffey, asked me about the use of agricultural land for data centres. The MPPF is, and the future land use framework will be, very clear that grade 1, 2 and 3 agricultural land should be protected and used only where there is no alternative. That is already set out in planning policy.

Amendment 185R, in the name of the noble Earl, Lord Russell, would require planning authorities to consider and support the inclusion of community energy projects in new developments. I agree with the noble Earl that renewable energy generation in households—we have already had a discussion on this—is a vital approach to help cut bills for families, boost our national energy security and deliver the clean energy mission. On the practicalities of increasing renewable energy generation in new developments, I am pleased to say that my department is working very closely with DESNZ on the future homes standard. The future homes standard will include renewable electricity generation on the majority of new homes through routes like rooftop solar. I therefore consider this amendment to be unnecessary.

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[Baroness Pinnock (LD)]

My Lords, the whole purpose of listed building legislation is to ensure the integrity of the listed structure. The requirement to apply for listed building consent is in order to protect the building from inappropriate changes which would compromise the listing. Many people in civic society care deeply about retaining and protecting listed buildings. As listed building applications are free, as we debated on an earlier day in Committee, that helps those who own listed buildings—there is no cost to it. Heritage planning officers know that some buildings need a fundamental change of use if they are not to lie empty and decay. That is okay, as long as it goes through a listed building consent application.

I know that these are large changes, but I will give one example. In my own town, there is a grade 2* listed building which is a former united reformed chapel—there are lots of great methodist, congregational or united reform chapels in the north. It was altered to become an Indian restaurant, allegedly the largest in the world, with room for 1,000 people. Subsequent alterations to the access, inevitably with lots of stairs to reach the front, were given permission, but the listed building consent application enabled local people to know that a treasured building was not being changed without the appropriate permissions. Even if such changes are relatively minor in comparison to the structure as a whole, constant minor changes could nevertheless add up to a big change that would not be appropriate and compromise the integrity of the listing.

As your Lordships can perhaps tell from the comments I have made, I am not a supporter of the amendment proposed by the noble Baroness, Lady Coffey.

[Lord Jamieson (Con)]

My Lords, my noble friend Lady Coffey raises an interesting issue on exemption for listed buildings for internal repairs and renovations. I understand the desire for a lightening of the regulatory burden and that this a probing amendment, but there is also a need for balance. I look forward to the Minister’s response.

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It is important to remember in these situations that the property being compulsorily acquired is a home and that the displaced home owner will almost certainly need the home loss payment to find a replacement home. Some modification of the blanket application of exclusions from such payments would make the proposed new clause fairer and more reasonable. On that basis, I beg to move.

[Lord Jamieson (Con)]

My Lords, the principle behind this amendment is an important one and the issues raised by the noble Lord, Lord Meston, deserve careful consideration. It is a sensitive matter, particularly where an individual’s poor health or other infirmities are concerned, and we will want to look at this area closely. More broadly, we are concerned about the extensive nature of this section of the Bill, and we look forward to hearing the Minister’s explanation.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Meston, for bringing us this amendment on compulsory purchase compensation rules. The amendment would ensure that home owners still receive home loss payments, even where they have failed to take action required by an improvement notice or order served on them, if that failure is due to the person’s poor health or other infirmity, or their inability to afford the cost of the action. A home loss payment is an additional amount of compensation paid to a person to recognise the inconvenience and disruption caused where a person is displaced from their home as a result of a CPO.

Under the current provisions in the Land Compensation Act 1973, where property owners have failed to comply with an improvement notice, their right to basic and occupier’s loss payments is excluded. There are, however, currently no similar exclusions for home loss payments. This Bill amends the 1973 Act to apply this exclusion to home loss payments also. However, where the exclusion of a home loss payment applies, owners would still be entitled to compensation for the market value of their property, disturbance compensation or other costs of the CPO process, such as legal or other professional costs. The provision introduced by this Bill will lower local authorities’ costs of using their CPO powers to bring sub-standard properties back into use as housing and ensure that the compensation regime is fair.

The amendment would ensure that, where an owner can show that they did not deliberately allow their property—subject to an improvement notice or order—to fall into disrepair or to remain derelict and that it was the result of ill health, other infirmity or a lack of financial resources, they can still make a claim for a home loss payment. We believe that it is for individual local authorities to determine whether it is appropriate to serve an improvement notice or order under the provisions listed in the Land Compensation Act, taking into account the personal circumstances of the property owner. For these reasons, I kindly ask the noble Lord to withdraw his amendment.

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[Baroness Hodgson of Abinger (Con)]

My Lords, I will speak to Amendments 221 and 223, which are in my name. Before I do so, I should perhaps remind the Committee of the interest I declared at Second Reading: I have been the recipient of three party wall notices in the past three years. That has brought to my attention the whole issue of the practicality of the party wall Act.

Both amendments deal with the issue of party walls, which is particularly pertinent in London and other cities where residential buildings either adjoin or are close to other housing. Amendment 221 calls for a review of the party wall Act. However, I will deal with Amendment 223 first. This amendment is applicable mainly to residential buildings and stops any developer interfering with the structural integrity of somebody else’s house without their permission. That simply means that no one should have their foundations affected by the work next door.

The oft-used quote, “An Englishman’s home is his castle”, comes to mind. We all presume that we have property rights and, if we own a home, that we should be able to live in it without interference. I am not a human rights expert, and I know that there are many noble and learned Lords in the House of Lords who are, so I tiptoe into this issue with nervousness. However, it is my understanding that human rights law protects against interference with property. That is enshrined in the European Convention on Human Rights; Article 1 protects the right to

“the peaceful enjoyment of … possessions”

and Article 8

“protects your right to respect for your … home”.

Someone else interfering with the foundations of a house causes stress and anxiety to the owner, because it has the ability to undermine and/or badly damage the property. In fact, there have been cases of houses becoming unstable and, in some rare cases, actually collapsing. I understand that at least one fatality has been caused.

This is not the first time this issue has been raised in the House of Lords. The noble Lord, Lord Dubs, put forward a Private Member’s Bill—the Planning (Subterranean Development) Bill—in 2015 to address this very issue. Most of the interference with other people’s foundations comes about because of basements being dug or floors lowered. Having personally been on the receiving end of this, I can attest to the huge distress, noise and interference that this causes, to which I and many others have been subjected. It is therefore time to stop others in the future being affected in this way. The development should not interfere physically with anyone else’s property without their permission.

This brings me to Amendment 221, which calls for a review of the Party Wall etc. Act. This Act was bought in as a Private Member’s Bill in 1996 by the noble Earl, Lord Lytton, and I understand that it was meant to address circumstances where damage had occurred and to deal with this meant that the neighbouring house would also be affected. I understand that this was bought in with good intentions. However, it was in the days before the fashion for digging basements. The provisions in the Act are very one-sided and basically take away the rights from the adjoining owner so that damage—sometimes criminal damage—trespass and nuisance may occur.

Moreover, the party wall Act appears to take this work out of planning, so there is no mechanism to allow an adjoining owner to object. It robs the adjoining owner of any rights to stop the work, even where it may adversely affect their property. This unfairness is exacerbated by the way that surveyors have interpreted this Act. Although the adjoining owner is allowed to appoint a surveyor, unlike most professionals representing a client the surveyors choose to act neutrally, often refusing the adjoining owner any input or say about what happens to their property—while the surveyor to those doing the development is briefed by their client on what to do.

It is almost 30 years since the Act was passed. There has not been any post-legislative scrutiny and there has been no review. I tabled a number of Questions on this issue in October last year, asking whether the Government would conduct a review. In July 2021, Newcastle University’s School of Architecture, Planning & Landscape produced Bunkering Down, a report which cited that 7,328 basements had been improved in 32 London boroughs between 2008 and 2019, saying that these have now become

“as normal as loft conversions”.

The department has, by its own admission, received correspondence from parliamentarians and members of the public alike concerning the efficacy and application of the Act over the years. Any review or consultation must include this correspondence in its evidence.

I thank the Minister, who found time to see me about this. One of the advantages of living in a democracy is that we have property rights. People need to be reassured that their home is safe and that all things are in line with the ECHR. I hope that, if the Minister does not feel that she can accept this amendment, she will commit to a consultation and a review forthwith. I beg to move.

[Lord Jamieson (Con)]

My Lords, I thank my noble friend Lady Hodgson of Abinger for tabling Amendments 221 and 223 regarding the Party Wall etc. Act 1996, which is an important piece of legislation providing a legal framework to resolve disputes between property owners concerning shared walls.

Amendment 221 would require the Secretary of State to carry out a review of the party wall Act and clarify whether it is consistent with current planning and development practices and whether it needs amending to update its position in planning and development processes. We should all recognise the importance in amending previous legislation so that it is consistent with current law and practice. I therefore hope that the Government take this amendment seriously.

Amendment 223 seeks to ensure that the structural integrity of homes is protected by requiring the permission of neighbouring property owners who may be affected by the development rights conferred by this Act. This amendment clearly aims to uphold people’s existing property rights and their structural integrity. This is an important principle which I look forward to the Government addressing, and I look forward to the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Hodgson of Abinger, for her amendments relating to party walls and for meeting with me to help me understand the issues that she has faced relating to this.

Amendment 221 seeks to create a legal duty to review the Party Wall etc. Act 1996 within 12 months of the Bill becoming law. The party wall Act provides a framework for preventing or resolving disputes between neighbours relating to party walls, party structures, boundary walls and excavations near buildings. While I have no objection in principle to reviewing legislation, it has been the view of successive Governments since the late 1990s that the party wall Act does, indeed, deliver what it was intended to do. It creates a framework for communication and agreement between adjoining property owners when work needs to be carried out to a shared structure, while the Building Regulations establish the minimum legal standards and functional requirements in new building work.

The party wall Act already requires that the owner of a building carrying out work under the Act must serve any adjoining property owner a party structure notice stating: the name and address of the building owner proposing the work; the nature and particulars of the proposed work, including, in cases where the building owner proposes to construct special foundations, plans, sections and details of construction of the special foundations together with reasonable particulars of the loads to be carried thereby; and the date on which the proposed work will begin.

Amendment 223 seeks to create a legal duty for building owners to gain permission from the adjoining property to carry out any works under the party wall Act. As I mentioned, the party wall Act provides a framework for preventing and resolving disputes when they arise in relation to party walls, to protect neighbouring buildings from the impact of building works and hold those completing works accountable for any negative impact. Ensuring structural compliance when undertaking work is already regulated under Structure: Approved Document A of the Building Regulations. Any development work must comply with the functional requirements of the Building Regulations. Amending the party wall Act will therefore have no regulatory effect on the structural safety of buildings beyond what is already regulated for. The party wall Act should therefore continue to provide a robust framework for preventing and resolving disputes when they arise in relation to party walls, party structures and excavations near neighbouring buildings.

I accept that there are occasions when things go wrong and I am very happy to continue the dialogue with the noble Baroness, but for all the reasons I have set out, I ask her to withdraw her amendment.