Housing: Permitted Development Rights

Lord Ravensdale Excerpts

Wednesday 18th December 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I take the noble Baroness’s point; we need to keep this continually under review. Some of the permitted development homes have been of fair quality and have provided homes for people. But we need to continue to press that all new homes delivered through permitted development rights must provide adequate light, meet nationally described space standards and be decent, fit and safe for the people who live in them. We will continue to do that. Where there are bigger schemes, equally, they must meet those requirements.

[Lord Ravensdale (CB)]

My Lords, I declare my interest as listed in the register. Running through the creation of additional housing are upcoming policy decisions on regulating embodied carbon. Can the Minister update the House on the research under way in her department, when it will report and when the associated consultation will be published?

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Lord, and for his time in meeting with me to discuss embodied carbon. We have been talking to the construction industry and to developers across the board, and there are some complex issues involved. I know the noble Lord is doing work with stakeholders as well, and I look forward to working with him further in the new year. I believe we have a meeting scheduled for early in 2025 to discuss this further.

Planning Reforms: Net-zero Carbon Emissions

Lord Ravensdale Excerpts

Tuesday 3rd December 2024 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, I declare my interests as listed in the register. A Written Ministerial Statement from December last year is preventing a number of sustainable developments from being built across the UK, including Salt Cross in Oxfordshire, because it is constraining local authorities’ efforts to build houses that go beyond current building energy-efficiency regs. Can the Minister say what plans the Government have to revoke that Written Ministerial Statement and allow these developments to go ahead?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord, and I will take back the point on the Written Ministerial Statement, but plan makers’ powers have not been restricted. The Planning and Energy Act 2008 permits plan makers to set at the local level energy efficiency standards which go beyond national building regulation standards, provided that they do so in a manner consistent with national policy.

Teesworks Project: Audit

Lord Ravensdale Excerpts

Wednesday 20th March 2024 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, this project relates to the Government’s wider levelling-up agenda. We heard last week that only 10% of the Government’s levelling-up funds have been spent. What assessment does the Minister make of that?

[Baroness Swinburne (Con)]

I thank the noble Lord for his question. I already have an outstanding question from one of his colleagues on his Benches from the debate last week. I am trying to find the exact numbers for how much is in progress, given that there is lag between the money being allocated and being spent. I am chasing that and will come back to the House as soon as I have the number.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Report stage
Monday 4th September 2023 Lords Chamber

Moved by

[Lord Ravensdale]

191: After Clause 88, insert the following new Clause—
“Duties in relation to mitigation of, and adaptation to, climate change in relation to planning(1) The Secretary of State must have special regard to the mitigation of, and adaptation to, climate change in preparing—(a) national policy, planning policy or advice relating to the development or use of land,(b) a national development management policy pursuant to section 38ZA of the Planning and Compulsory Purchase Act 2004.(2) When making a planning decision relating to development arising from an application for planning permission, the making of a development order granting planning permission or an approval pursuant to a development order granting planning permission, a relevant planning authority (as defined in section 85 (interpretation of chapter 1)) must have special regard to the mitigation of, and adaptation to, climate change.(3) For the purposes of interpretation of this section, Part 3 of this Act, and Schedules 7 and 12 to this Act—“the mitigation of climate change” includes the achievement of—(a) the target for 2050 set out in section 1 of the Climate Change Act 2008,(b) applicable carbon budgets made pursuant to section 4 of the Climate Change Act 2008, and(c) sections 1 to 3 of the Environment Act 2021 (environmental targets) where applicable to the mitigation of climate change;“adaptation to climate change” includes—(a) the mitigation of the risks identified in the latest climate change risk assessment conducted under section 56 of the Climate Change Act 2008, and(b) the achievement of the objectives of the latest flood and coastal erosion risk management strategy made pursuant to section 7 of the Flood and Coastal Water Management Act 2010.”Member’s explanatory statement
This new Clause places a duty on the Secretary of State and relevant planning authorities respectively to have special regard to the mitigation of, and adaptation to, climate change with respect to national policy, local plan-making and planning decisions.

[Lord Ravensdale (CB)]

My Lords, I will speak to Amendment 191 and declare my interests as a director of Peers for the Planet and a project director working for Atkins. I thank my supporters, the noble Baroness, Lady Hayman of Ullock, and the noble Lords, Lord Teverson and Lord Lansley. I also thank the Minister for the time he has devoted to this issue in a number of meetings since Committee, and I particularly thank him for our constructive discussion this afternoon.

We fundamentally reworked our amendment for Report, based on feedback from and engagement with government throughout the Committee stage. This amendment aims to resolve two issues: planning weight for climate in the system and what we are calling the “golden thread”—ensuring that climate runs throughout the complete planning system. The amendment aims to ensure that climate and the environment run as a golden thread through town and country planning, rather than the inconsistent picture at present.

The existing Section 19(1A) duty, which was restated in the Levelling-up and Regeneration Bill, states that the development of land should

“contribute to the mitigation of, and adaptation to, climate change”.

This currently applies to local plans and to a number of other plans and strategies within the Bill, but, importantly, it does not apply to individual planning decisions or the new national development management policies. It also does not refer specifically to our climate change and environmental targets. We feel that there is a fundamental inconsistency here, and our amendment aims to resolve it.

Further, our amendment gives planning weight to climate change in decision-making. It is not sufficient for climate considerations to be in only the National Planning Policy Framework—NPPF—as this is just guidance, and multiple reports from experts have highlighted how the current system is not working. It means that climate is included along with many other material considerations to be weighed up by the decision-maker, and it is for them to decide the importance to be given to climate change in a particular decision. Our amendment provides for a statutory duty that would make it clear that climate change should be a material consideration, with planning weight in the decision-making process—that is the crucial point.

This is not a novel concept in planning. Statutory duties giving planning weight already exist in relation to listed buildings. Our amendment was modelled on Section 66 of the Planning (Listed Buildings and Conservation Areas) Act 1990, which gives considerable importance and weight—“special regard”—to the preservation of listed buildings in the planning system. It then sets out in guidance, in the NPPF, how this duty is to be interpreted when making planning decisions. This tried and tested model could be used to include a similar climate change planning duty in the Levelling-up and Regeneration Bill.

As the Government are currently reviewing the NPPF and have not yet published the revised version of that guidance, this is the ideal time to insert such a duty, provide that guidance in the NPPF, and ensure that our planning system and new development do more to contribute positively to the achievement of our climate and nature targets. Importantly, we would have a statutory duty but it would be for the Government to decide on the specifics of how this would be implemented within the guidance set out in the NPPF. It would elevate climate as a consideration in the decision-making process, but it would maintain that important flexibility for decision-makers.

There are many examples of why this is needed and the benefits it would bring. UK clean power has been world-leading, but the planning regime currently in place means that just two onshore wind turbines were built in England in 2022, major offshore wind projects are stuck waiting for planning approval and thousands of new homes continue to be built on flood plains. Local plans to create the sustainable and economically vibrant places we all want to live in are being held back by planning barriers and inconsistent decision-making. The Committee on Climate Change—the CCC—the Skidmore review, the CBI, and businesses in the construction and building sector all agree that reform is needed. I was grateful to see 21 past presidents of the Royal Town Planning Institute supporting the amendment before us today—they are the people responsible for implementing this.

--- Later in debate ---

Reverting to my initial remarks on Amendment 191, I live in hope that what I have said provides the reassurance necessary for the noble Lord, Lord Ravensdale, to withdraw that amendment, and for the other amendments in this group not to be moved when they are reached.

[Lord Ravensdale (CB)]

My Lords, I listened very carefully to what the Minister said, but I believe that it has highlighted some of the gaps that remain in the approach the Government are taking. For example, he put a lot of emphasis on local plans and how they will help to drive this down through the planning system, but many local authorities do not have those plans or have very out-of-date plans—there has been a lot of research done on that. That flow down to individual planning decisions is not there. That illustrates the nature of the problem and why there needs to be a joining-up of all these approaches, and a statutory duty.

The noble Earl also mentioned mitigation. We are basing this around a tried and tested approach; with heritage buildings, we are maintaining flexibility. All we are doing is saying that climate considerations must be of increased priority compared with other factors—that is what we are trying to get across—while maintaining the flexibility in the planning system. As the noble Lord, Lord Deben, said, it is absolutely vital that our planning system supports climate mitigation and adaptation. This really is an enabler that sits at the heart of the whole system.

I recognise the work that the Government are doing; there is much more to be done here. I am grateful to all noble Lords who have spoken in support. I wish to test the opinion of the House.

--- Later in debate ---

[Lord Young of Cookham (Con)]

My Lords, I have added my name to the amendments tabled by the noble Lord, Lord Crisp, and commend his tenacity in pursuing this issue through his Private Members’ Bill and all the stages of this legislation. I shall add a short footnote to his speech.

After the debate in Committee and the very helpful meeting that we had with Ministers, on 25 May the Minister wrote a comprehensive nine-page reply taking the objectives of the amendments one by one and outlining how, in the Government’s view, existing provisions reflected them. We can discuss whether there is total alignment between current provisions and what is in the amendments, but the letter asserting this and existing statements from the Minister in our debates indicate that there is not a lot of distance between what the Government say that they want and what is proposed, which would help to bridge the gap that the right reverend Prelate has just referred to.

The letter dated 25 May said: “Following on from our meeting, I thought that it would be helpful to set out where the principles of healthy homes are already being considered and addressed through existing laws, systems, policy and guidance”. I want to make two points, picking up the key objections to the amendment that were made by my noble friend Lord Howe in his reply to the debate on 27 March. He said, referring to the noble Lord, Lord Crisp:

“Where we had to part company with him—and, I am afraid, must continue to do so—was on the extent to which new legislation should duplicate legal provisions already in place, and, to the extent that it does not duplicate it, how much more prescriptive the law should be about the way in which new housing is planned for and designed”.—[Official Report, 27/3/23; col. 76.]


On the first objection, I would prefer “consolidate” to “duplicate” to describe the impact of the amendments. Annex A to the letter dated 25 May explains that the relevant policies in the amendments are set out in no less than 11 groups under the heading “Healthy Homes Principles”. These groups in turn referred to 28 different chapters or clauses in building regulations, design codes, the NPPF, planning legislation and orders. The amendment brings all those provisions together under one overarching umbrella and provides what is currently missing: namely, a clear statement of government policy on healthy homes all in one place, breaking down the silos between all the government departments involved—the Department of Health and Social Care, the Home Office, the Department for Transport, the Department of Energy and Climate Change, Defra and DLUHC. The 28 different references would then have a coherence which is lacking at the moment and which would be embodied in the statement that the Secretary of State has to make, underlining the commitment to healthy homes.

The second objection was that the amendment was prescriptive. However, the wording of paragraph 4 in the new schedule proposed in Amendment 191B gets round that objection in that it uses “should” instead of “must” throughout. The only compulsion is in paragraph 1, which obliges the Secretary of State to prepare a statement in accordance with the proposed new schedule. The groundwork for this has already been laid by the noble Lord, Lord Crisp.

I hope that my noble friend will reflect on these points and that his customary emollience will go one step further into acquiescence.

[Lord Ravensdale (CB)]

My Lords, I will speak to Amendment 280. I thank my supporters, the noble Baroness, Lady Hayman of Ullock, and the noble Lords, Lord Best and Lord Lansley. I also thank the noble Baroness, Lady Scott, for her engagement with me on this issue over recent months and for her letter outlining the position of the Government.

I will focus on the changes to the amendment since we were in Committee, where we highlighted the magnitude of the issue of embodied carbon, with 50 million tonnes of CO₂ equivalents a year—more than aviation and shipping combined, so it is a significant amount of emissions. When we consider the effort and investment that is going into some of these other areas, it points towards the need to do a lot more on embodied carbon.

We also set out that industry is ready. On an infrastructure-related bid that I am currently working on for the private sector, we are looking to set targets for embodied carbon and assess it in the design phase, something that we now do almost as a matter of course. However, regulation needs to catch up, to ensure that this is applied consistently and to seize the wider sustainability and economic benefits of this change applying across the whole of industry. Our amendment focuses purely on the initial reporting stage, whereby industry will be mandated to report embodied carbon for all new construction projects above a certain size; the subsequent stage, using data gathered in the initial stage, would be to set out actual regulated limits for embodied carbon in buildings.

Non-Domestic Rating Bill

Lord Ravensdale Excerpts

Committee stage
Monday 3rd July 2023 Grand Committee

Moved by

[Lord Ravensdale]

1: Clause 1, page 2, line 25, at end insert—
“(za) the chargeable day falls after the day on which qualifying energy efficiency improvements are completed,”Member's explanatory statement
This amendment, and others to Clause 1 in the name of Lord Ravensdale, would allow qualifying energy efficiency improvements a time-unlimited level of improvement rate relief.

[Lord Ravensdale (CB)]

My Lords, I will speak to my Amendments 1, 3 and 4. I apologise to noble Lords for not being present for the opening speeches of Second Reading and therefore being unable to make my points then. However, I was present for the rest of the debate and wrote to the Minister with the points I would have made, so I hope that I may be forgiven. I declare my interests as a project director for Atkins and as a director of Peers for the Planet. I certainly support the aims of the Bill and the measures contained within it, which will support businesses and high streets across our country and the economy.

My amendments in this group are very straightforward. They relate to the application of improvement relief. I listened with great interest at Second Reading to the remarks on this topic from noble Lords and the Minister, who said:

“The Government consider that a 12-month relief will allow time for the benefits of the property investments to flow through into businesses. We will keep this under review”.—[Official Report, 19/6/23; cols. 83-84.]


Although the 12-month relief is very welcome, there is a strong case for the Government to remove such constraints from a specific class of improvement—energy-efficiency improvements. I will explain why.

The Government have already made the great move of exempting renewable energy generation and storage from rateable value through regulations introduced in 2022. However, energy efficiency does not receive a matching exemption, despite the efficacy of energy- efficiency measures in increasing the energy security of the UK and reducing carbon emissions, not to mention in reducing costs for businesses and supporting economic growth. Energy efficiency has been raised many times recently in your Lordships’ House, so I will not bore the Minister and other noble Lords with an extended analysis of why we need to do more in this area.

As to the effect of the Bill as written, we know that all but the simplest energy-efficiency measures have longer payback periods, so it is likely that a 12-month exemption will continue to disincentivise improvements. To be adopted by business, energy-efficiency measures must make clear financial sense and have a low net cost. As a simple illustration, it is unlikely that a household would contemplate insulating their home if there was a risk that the savings would be outweighed by the introduction of a higher council tax band after only a year of relief.

My amendments seek simply to align energy-efficiency measures more closely with the existing reliefs for renewable energy generation and storage so that we have a coherent approach in this area. They represent a great opportunity for the Government to help increase investment in energy-efficiency improvements across business and to contribute to critical national goals in energy security and net zero, as well as lowering bills for businesses at a time when this is needed more than ever. Fatih Birol of the International Energy Agency warned recently that we may see another surge in gas prices this winter. The amendments would extend improvement rate relief for energy efficiency to 1 April 2029; the Government could then decide whether to extend any reliefs beyond then. I beg to move Amendment 1.

[The Earl of Lytton (CB)]

My Lords, I have two amendments in this group, to which the noble and learned Lord, Lord Etherton, who cannot be with us because he is arguing his case across the way in the Chamber, has added his name. I declare that I am a member of the Rating Surveyors’ Association, which, together with Luke Wilcox, barrister of Landmark Chambers, has been helping me formulate my views on these amendments.

The purpose of the two amendments in my name in this group, Amendments 2 and 6, is to extend the application of improvement relief, so, to some extent, they follow the lead of the noble Lord, Lord Ravensdale. Without discussing it with him, I opted for extending the application to works carried out within a five-year period. The amendments follow up on the comments made at Second Reading.

The expected lifespan of the many types of improvement may extend to decades. If, as one supposes, the relief is intended to incentivise improvements—not just mandatory compliance works but those which add materially to utility, convenience and annual value—it needs to be an altogether bigger quantum; otherwise, as matters stand at the moment, we will be in a situation where, maybe 13 months after the work is carried out, the rateable value will increase by some 50% of the additional annual value of the works. This may not be so much for the purposes of adding value as of preserving value in the face of decline, so this dynamic needs to be whittled down.

We have issues with the definition of “relief” and whether it will count for anything at all in practice, and of “improvement”, of which other noble Lords may seek to define certain aspects more clearly—I agree with that. Unfortunately, the Government’s protestations about the sums they claim to have earmarked for this relief do not disguise the fact that the design of these things is often such that none of it is ever called on in practice. I will leave that bit of cynicism to one side, but if this relief is to mean anything beyond a fig leaf, it has to be large enough in quantum and long enough in duration to be commercially noticeable and relevant. Some types of improvement may take a considerable time to translate into a business benefit.

Although I understand, for instance, not including developers in the benefits of this measure, I maintain that the net effect of excluding any otherwise qualifying works carried out by landlords for the tenant, for which there may be a higher rent payable, is based mainly on groupthink rather than objective balance. That is the reason behind Amendments 2 and 6.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

As far as I know, we do not have a framework yet, but as soon as we have—I assume it will go out to some sort of consultation—I shall make sure that noble Lords are aware of when it is issued.

[Lord Ravensdale (CB)]

My Lords, the noble Earl, Lord Lytton, made a compelling argument for a general extension of improvement relief, as did the noble Baronesses, Lady Pinnock and Lady Hayman, for extending heat network relief. For me, this is all about joining the dots across the legislation, so that we have a coherent picture. As the Minister said, we already have a permanent exemption for renewable energy and storage. All these factors feed into our overall strategic targets, so we need a coherent picture across the legislation. The Minister rightly talked about fiscal responsibility and the need to bear it in mind.

The other side of the picture, to counter that, are all the benefits to increasing private investment—in the case of energy efficiency, lower bills—and the benefits from overall economic growth that would flow from that. I look forward to further discussions with the Minister leading up to Report, but for now I beg leave to withdraw my amendment.

Amendment 1 withdrawn.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Committee stage
Monday 22nd May 2023 Lords Chamber

[Lord Lucas (Con)]

My Lords, I support everything the noble Baroness just said. From long experience of canvassing and getting bloody knuckles as you try to withdraw your hand from the letterbox but the spring bites them, shortly before the dog’s teeth just miss your retreating hand, I think there would be support across the House and general congratulations if the Government were able to do something along these lines, but I suspect it should not require retrofitting. Chewing up people’s front doors would just be too expensive, but any new front door should certainly not have any of these devices on it.

[Lord Ravensdale (CB)]

My Lords, I shall speak to Amendment 504GG in my name, and note that I am co-chair of the Midlands Engine All-Party Parliamentary Group. I thank my supporters, particularly the noble Baroness, Lady Hayman, for her help in refining and improving the amendment, and the noble Lord, Lord Mawson, and the noble Baroness, Lady Verma, for their support.

I have spoken before in Committee about high streets, and will try not to repeat much of what I have previously said. I do not need to speak about the importance of regenerating high streets in the regions—I know that the Government get its vital importance for levelling up. Their plans for enhanced compulsory purchase powers and high street rental auctions could form part of the solution here.

However, I have spoken to many local stakeholders about these new powers, and the consensus is that they will not do much to move the dial. They are not commensurate with the scale of the change that needs to happen if we are to look toward a future where high streets in our regional cities are bustling with activity, are pleasant environments where people want to come and spend time, and are integrated with transport systems to allow easy transit for people to spend time there.

It has been estimated that the cost of each high street rental auction could be at least £6,000. In a time of strain on local authorities’ finances, they are unlikely to be used. In any case, high street rental auctions and compulsory purchase powers have been set up to address the supply of high street units, but supply is not the issue here. Anyone looking to set up on high streets in my home city of Derby is spoilt for choice. Most landlords would not choose to have an empty property. The issue here is demand, not supply. The Government really need to look much more closely at how they can incentivise businesses to set up on high streets. This critical point should be addressed in the Bill and will move the dial.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

Committee stage
Monday 27th March 2023 Lords Chamber

I hope that my noble friend the Minister will consider concrete measures such as this to deliver on the missions. That can be done only if we work with local councils and give them the mandate and flexibility to succeed.

[Lord Ravensdale (CB)]

My Lords, I shall speak to my Amendment 484. I thank my supporters: the noble Lords, Lord Best and Lord Stunell, and the noble Baroness, Lady Hayman. I also declare my interests as a director of Peers for the Planet, and as a project director working for Atkins.

It would be helpful if I started with some definitions; I hope I am not teaching too many noble Lords to suck eggs. There are two types of emissions from buildings: operational carbon, which is those emissions due to energy and water use; and embodied carbon, which is those emissions related to construction materials. Operational carbon emissions are already limited by Part L of the Building Regulations, but there is no such parallel regulation limiting embodied carbon emissions.

For a long time, operational carbon emissions have accounted for the majority of buildings’ emissions. However, with decarbonisation of the grid, operational carbon has reduced in recent years and that trend is set to continue, particularly with the introduction of electric heating. As such, the embodied carbon emissions in construction contribute an increasing proportion of the whole-life carbon emissions for most buildings, with one study indicating that over two-thirds of a low-energy new building’s emissions are embodied.

UK embodied carbon emissions represent some 50 million tonnes of emissions per year, which is more than aviation and shipping combined—a huge quantity of emissions that is completely unregulated and has increased in recent years. We think of the huge effort that is going into mitigating the carbon emissions of aviation and shipping: we have a sustainable aviation fuels plan, jet zero and plans for corridors for emission-free shipping based on ammonia and hydrogen. But for embodied carbon the current plans in place are sparse—although industry is making some good progress in reporting—so we have a problem.

Lord Boyce, who sat on these Benches but passed away, sadly, late last year, had a saying which went something like, “There is no such thing as problems, only solutions in disguise”. The solution here is a fantastic campaign, which has been under way for a number of years, to add a new part, Part Z, to the building regulations; this would start with reporting and then move on to regulation of embodied carbon emissions. It has wide support across industry; 200 of the country’s leading developers, clients, contractors, architects, engineers and institutions have written statements of support. These include organisations such as British Land, Willmott Dixon, Sir Robert McAlpine and Laing O’Rourke—I could go on—and industry bodies such as the Construction Industry Council, the Concrete Centre and the Steel Construction Institute; so there is wide support right across industry.

Industry already has the tools necessary to respond to Amendment 484 and, indeed, is voluntarily using them. Regulation would simply unlock the final door to enable the existing mechanisms to run smoothly and to ensure a level playing field. It has already been the subject of a Private Member’s Bill put forward by Jerome Mayhew in another place, which has enjoyed wide cross-party support.

Many countries in Europe are already proceeding with the approach outlined in the amendment. These include France, Sweden, the Netherlands, Finland, Denmark and Norway. It is not only about the emissions cost; we risk being left behind in the opportunities that the amendment will unlock if we do not proceed with it soon. These opportunities include the benefits of a standardised approach to reporting—rather than the patchwork quilt of the many approaches that exist currently—which would reduce overall costs to industry, and the treasure trove of data that would be generated and could then be used to inform further decarbonisation efforts, both in voluntary targets and in leading towards eventual regulation.

To add to this, the policy signal provided by this amendment would mean that the UK could then develop in growing markets such as steel recycling, an important area that could be developed in the UK. Rather than exporting scrap and importing recycled steel as we currently do, we could invest in that industry in the UK, as is currently done in the US and Europe. Low-carbon cement is another example; if the signal were given, attracting investment and moving that from lab scale to implementation would be much more of a priority—likewise, low-carbon building materials such as non-plastic insulation and the retrofit and reuse market.

So what is currently going on within government? The Government’s construction playbook calls for carbon assessments on all public projects. However, it provides no details as to how that should take place or what an appropriate carbon emissions level is. This leads to many inefficiencies in differing approaches to assessments, increasing overall costs to the taxpayer.

The key ongoing activity is a DHLUC consultation on embodied carbon reporting, which is due to report later this year. Our amendment has been drafted to align with that consultation; it states that regulations must be made within six months of the Act being passed. This amendment would give the Government a ready-made legislative vehicle to implement these regulations once the outputs of the consultation have been defined. All the pieces of the puzzle would then be in place; otherwise, I fear that we would have much longer to wait to make parliamentary time available—we need to move quickly and seize the opportunity here.

Working in business myself, one area of concern that I am very conscious of is to avoid placing additional burdens upon small and medium-sized enterprises. Whole-life carbon assessments will involve some additional costs to businesses, at least initially while tools and approaches are being refined. This is why we have placed limits within the amendment; it applies only to building works with a total useful floor area of 1,000 square metres or over and to developments with more than 10 dwellings. This shields smaller developers from the initial costs of undertaking whole-life carbon assessments.

Finally, I will go into a little more detail on how the amendment would work. The overall strategy is to “report first, limit later”. This follows the precedents set elsewhere in Europe and makes the transition towards zero-carbon construction easier, while sending a clear signal that legislated limits are coming. The amendment deals with the initial reporting aspect, with the intent that later regulations would cover embodied carbon limits, which would in themselves be informed by the initial reporting phase. As I alluded to earlier, approaches to many of the aspects in the amendment have already been developed and are being used voluntarily by industry; for example, the Royal Institution of Chartered Surveyors has defined a methodology for calculating embodied carbon.

The emissions footprint that embodied carbon represents means that we need to move forward with urgency and help to enable industry to bring forward solutions. The Levelling-up and Regeneration Bill is an ideal and timely enabler to make this happen.

[Lord Best (CB)]

My Lords, I rise to support Amendment 484 in the name of my noble friend Lord Ravensdale, which was so comprehensively and expertly laid out before us. I declare my interests as president of the Sustainable Energy Association and a member of the Peers for the Planet coalition.

This amendment would require housebuilders and other developers to produce an assessment of the amount of carbon for which the construction of a proposed project would be responsible over its life. This includes the carbon embodied in the building materials used and the construction processes deployed.

Everyone recognises the necessity of building in ways that limit carbon emissions once the building is constructed, but that is only half the story. Half of total emissions—possibly more—associated with new building come from the carbon embodied in its construction. Concrete, steel and other materials use vast quantities of fossil fuels, as does transportation, sometimes across continents, of heavy building materials.

The House of Commons Environmental Audit Committee has shown that—as the noble Lord, Lord Ravensdale, said—the embodied carbon in new buildings accounts for more emissions than aviation and shipping put together; that is a great statistic. Yet this huge contributor to climate change is virtually invisible. Measuring and assessing embodied carbon alongside the subsequent emissions over a building’s lifespan should make all parties think harder when choosing building materials. There are many alternatives to the worst-offending components. This amendment will provide the basis for eliciting the evidence for more sophisticated decision-making.

The amendment could also lead to greater priority being given to making the best use of the buildings we already have before demolishing and replacing existing structures and adding to landfill. Demolition and construction also create dust and air pollution on a massive scale, amounting to some 30% of harmful particulates in urban areas. Retaining—rather than clearing and replacing—existing housing can also have social and community benefits. Demolition of Victorian terraced streets in the 1960s and 1970s is now seen to have been, in many cases, an unfortunate mistake. The amendment forces us to pay more attention in the wider levelling-up agenda to the regeneration of the homes we have today, rather than concentrating, as the Bill does, on the planning and delivery of new homes.

Action to upgrade existing properties—with green grants, regulations on energy efficiency for lettings, tax incentives and more—does not only address the decarbonisation challenge, it improves quality of life, reduces fuel poverty and saves NHS budgets. Recent research by the Building Research Establishment found that excessively cold homes, for example, are costing the NHS £540 million a year. The improvement of existing housing would also be accelerated, and the stock of available affordable homes increased, by the introduction of a national housing conversion fund to finance acquisition and modernisation of poor-quality, privately rented properties.

As the levelling-up programme moves onward, these regeneration measures will demand more of government’s attention. In the meantime, this amendment would achieve a more credible basis for judging the environmental impact of building practices and I strongly support it and the creation of a new Part Z to the building regulations.

Levelling-up and Regeneration Bill

Lord Ravensdale Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, I declare my interests as set out in the register and note that I am co-chair of the Midlands Engine APPG. As a proponent of levelling up and an advocate for the Midlands region since I arrived in Parliament, I very much welcome the Bill, and the measures that it includes will make a huge difference to the Midlands region, which is home to 11 million people and contains some of the most deprived areas of the UK.

The area that I am most excited about is enabling greater local democracy—and thereby the proposals that exist to create a new combined county authority within the east Midlands, which will cover Derby, Derbyshire, Nottingham and Nottinghamshire. I believe that is the single biggest change needed to begin addressing the economic disparities that exist between the east Midlands and the rest of the country in transport, public affairs and R&D. As the right reverend Prelate the Bishop of Leeds stated, those economic disparities are where this all starts. The plea from local leaders in the Midlands is to get the Bill through and into law as quickly as possible so we can progress with our local plans.

I wish to make three points. First, on the levelling-up missions and their place within the Bill, the right reverend Prelate the Bishop of Carlisle put it across that we are missing the confidence in the missions and that they really will be achieved. We could do with those missions being explicitly stated in the Bill; that would add weight to the missions and provide the confidence that they will be achieved. The missions have been developed already within the White Paper. In addition, I was somewhat alarmed by the wording in Clause 5—the Government can at any time change or alter those missions. To increase confidence in levelling up, one of the key strategic goals of the nation, there should be some additional control by Parliament of any change to those missions.

Secondly, on high street regeneration, recently I took a walk through central Derby and asked my sons to count the number of empty shop units. We counted 14 over a 200-metre stretch in the city centre, from Iron Gate to Corn Market. The only retail outlets that seemed to be thriving were betting shops—I counted five. This issue is repeated right across towns in the Midlands region. Walking around comparable stretches in London, I see maybe one or two empty units at most. I know the Government get this, and I welcome the powers in the Bill to do with high street rental auctions and expanded compulsory purchase powers. However, what I am hearing from local stakeholders is that the Bill contains a lot of stick but we need to think more about the corresponding carrot: how we actually incentivise businesses to set up in these areas. The burden of business rates and occupational costs mean that it can be unviable for many small and independent businesses to trade from town centre premises. Proposals for town centre investment zones should also be considered. What measures are being considered by the Government on the incentive side to provide more incentives to set up in these areas? No landlord really wants their premises to be empty.

Finally, as others have pointed out, the Bill is essentially a planning Bill, and because of this, there exists a real opportunity for the Government to include within it additional measures related to the environment. Once such opportunity is measures to report on and regulate embodied carbon in buildings. As noble Lords will be aware, there are two types of emissions from buildings: operational carbon, which is heating, lighting, et cetera, which is already regulated under Part L of the building regulations; but there is also embodied carbon, which is essentially the production, transport and installation of building materials, and their demolition at end of life. At the moment, that is completely unregulated, despite accounting for fully one-third of emissions from buildings: 50 million tonnes of CO₂ equivalents per year, which is more than aviation and shipping combined. A proposal to regulate this already exists, developed by industry and known as Part Z of the building regulations. These regulations have wide industry support and similar regulations have already been rolled out internationally, so I believe all the groundwork has been done to allow the Government to move forward with them. What is the current government position on regulation of embodied carbon, and how do they plan to implement Part Z? There could be a great opportunity within the Bill to do exactly that.

Queen’s Speech

Lord Ravensdale Excerpts

Monday 17th May 2021 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, like other noble Lords, I very much look forward to the maiden speeches of the noble Lords, Lord Coaker and Lord Morse. I declare my interests as a director of the cross-party group Peers for the Planet and an engineer and consultant working for Atkins. I also bring to the attention of the House that I am co-chair of the Midlands Engine APPG. So it was most welcome for me to hear the focus of the gracious Speech on levelling up. I would like to build on the remarks of my noble friend Lord Taylor of Holbeach, who made some excellent points about the visitor economy in the Midlands, and to focus on the opportunities for a green recovery to level up the Midlands region.

As we emerge from the shadow of the pandemic, we need to build back better, greener and faster. With their unique strengths, the regions have a great opportunity to be at the forefront of this change. Data from the Midlands Engine shows that gross value added per capita in the Midlands is nearly £22,000, or 9% of the England minus London average. If this gap were closed, it would add an extra £76 billion each year to the UK economy—£76 billion. That is the scale of the opportunity here. Playing to existing regional strengths, the green recovery can be a key part of closing this gap.

The Midlands was at the forefront of the Enlightenment and the Industrial Revolution. The new thinking that led to these epochal events is perfectly symbolised by the painting “A Philosopher Lecturing on the Orrery” by Joseph Wright of Derby, who was himself a key figure in the Midlands Enlightenment. The painting depicts a lecturer giving a demonstration of a mechanical model of the solar system to an awe-inspired audience, their illuminated faces emerging from the darkness of ignorance and superstition into the light of reason. The region now has the opportunity to continue this historical thread by leading the way with a new, green industrial revolution.

One in four energy and low-carbon jobs in England is based in the Midlands and the sector is worth almost £27 billion to the region. It is home to nationally and internationally leading projects, assets and research in low-carbon transport, fuel, heating and energy. The Midlands Engine is the first pan-regional partnership to propose a plan for delivering this and will issue its plan for consultation within the next few months. Can the Minister say what plans the Government have to work with the regions on such initiatives, supporting existing regional strengths to enable a clean economic recovery?

Innovation will of course be vital in meeting our net-zero targets. The Government already have a desire to increase the R&D intensity of the economy to 2.4%, but additional focus is needed on how deploying research funding can help to level up the economy. If the Midlands receives its fair share of this funding, it will equate to a £2.3 billion increase in R&D spend in the Midlands, providing the potential to create tens of thousands of jobs. Crucially, R&D will bring in skills and wider investment from industry, which will boost the productivity of the Midlands and help the Government meet their targets for levelling up. I highlight here the fantastic universities and research assets that we have in the region.

Some thinking is required on the Advanced Research and Invention Agency, ARIA, to ensure that its spend is constructively deployed in aid of the levelling-up agenda, rather than defaulting to research capacity in the south-east. I look forward to returning to this when the Bill comes before the House.

There is a fantastic opportunity here to use the green industrial revolution, along with existing regional strengths, to level up the Midlands, which is home to 11 million people. A year ago, the Chancellor vowed to do “whatever it takes” to support households and businesses through the Covid crisis. If the Government are serious about delivering levelling up, they should make a similarly unambiguous commitment to do whatever it takes to level up the regions. A shock to expectations can in itself produce the momentum required to level up our economy.

North of England: Investment

Lord Ravensdale Excerpts

Tuesday 23rd February 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, my noble friend is right that pension assets are an important source of finance for investment in infrastructure. I note that the CPS report proposes updating rules covering UK pension schemes so that we can encourage investment in northern infrastructure.

[Lord Ravensdale (CB) [V]]

My Lords, although the paper is entitled A Northern Big Bang, many of the problems described and the possible solutions identified are as relevant to the Midlands as they are to the north—a point the authors stress throughout the report. Does the Minister agree that measures to level up our country are just as, if not more, urgently needed in the Midlands as they are in the north, and will he comment on what plans the Government have to work with the Midlands Engine, the APPG of which I am co-chair, in that regard?

[Lord Greenhalgh (Con)]

My Lords, I point out that the commitment to levelling up also includes the Midlands. Earlier this month, my right honourable friend the Housing Secretary met the Midlands Engine Business Council and numerous business leaders to work on precisely how we should drive forward the agenda to ensure growth in the Midlands as well as in the north.