Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I declare my interest as a chief engineer working for AtkinsRéalis. My Amendment 3 would make a simple change but it highlights something fundamental to the Bill, so I want to spend a bit more time going through it than that single-word change would imply.

In looking through the areas of competence, energy is conspicuous by its absence, given that it will be a central challenge for the country—and, indeed, the mission of the Government—in the coming years. I shall use the Midlands region, where I live, as an example; of course, the first energy transition really started in the Midlands. I recently visited the Science Museum down the road, where there is an excellent example of the Boulton and Watt steam engine, which was brought into use in Birmingham and started to turbocharge the demand for coal and the first energy transition from biomass to fossil fuels.

That was a locally led transition, of course, but today, the Midlands remains the industrial heartland of the UK. We have so many energy-intensive users and heavy manufacturing, ranging from nuclear reactors and aero engines to trains, excavators and cars. As a region, we want to help lead the latest energy transition, as articulated in the recent Midlands Engine’s White Paper on energy security; I chaired the task force to produce that.

For a number of years, I have been making the case that, to date, the energy transition has been delivered in a top-down fashion. We have had many welcome developments, such as the formation of the NESO—the National Energy System Operator—but there is still a sense that this is something being done to communities, rather than bringing them along on the journey. No doubt progress is being made on the regional planning for the local power plant through Great British Energy, but we are not yet in a place where we have a fully joined-up governance system that marries up the necessary top-down view of the energy system and the critical bottom-up view that informs it.

Why is it important to drive the transition locally? First, I have already mentioned bringing local communities along on the journey. We are talking about significant changes to buildings, including changes in how we heat and insulate them, and changes to both grid architecture and next-generation charging. All this will be much more effective if communities are helping to drive this themselves and seeing those benefits.

Secondly, local areas have the knowledge of how best to implement the energy transition. For example, they know their local housing stock best. They know which technologies are best for future heating solutions, whether that means district heating or heat pumps. They know where the grid, the charging and the local generation is.

That feeds into my final point, on costs. The cost of the energy transition is getting significant attention at the moment, but the benefits for the Government here are the cost savings possible with a locally led approach. Billions in savings are possible if the most appropriate solution is brought forward for local areas, using local knowledge rather than one-size-fits-all. Regions and authorities are recognising this and taking action, but the Government need to drive this approach forward and avoid the patchwork nature referred to in our debate on the previous group.

What is needed is proper energy planning, at a local level, which then feeds up into regional plans and, ultimately, into the spatial strategic energy plan for the UK that the NESO is producing. That is when we will have a transition where we bring in all the expertise at a local level, which means the most efficient solutions at the lowest cost. There is an opportunity here for the Government to recognise, in the areas of competence, the centrality of energy to what strategic authorities need to deliver; this would ensure that strategic authorities are delivering on energy for their regions. The Government could use that to define how a bottom-up governance system for energy could work, how that might flow up into the spatial strategic energy plan, how that will interface with GBE and NESO, and so on.

I was grateful to meet the Minister last week. We discussed how paragraph (a) refers to “transport and local infrastructure” and how that is slightly misleading, in that it may give the impression of a focus on transport. The other benefit of this amendment is that it would clarify that first part of Clause 2 and provide clarity in the language on what strategic authorities are trying to deliver. With that, I look forward to hearing from the Minister.

Lord Freyberg Portrait Lord Freyberg (CB)
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My Lords, I declare my interest as a visual artist. Amendment 4 in my name is a small but important clarifying amendment. It simply adds the words “including through tourism” to paragraph (d) of Clause 2, which already defines “economic development and regeneration” as a core “area of competence” for strategic authorities. This reflects the Local Government Association’s view that tourism should be explicitly recognised in the Bill rather than left implicit.

Tourism is not a marginal activity; it is one of the principal ways in which economic development and regeneration happen in practice. It supports local jobs, sustains town centres, underpins cultural and heritage assets and brings external spending directly into communities. In many places, particularly outside the large cities, it is the economic driver.

I have deliberately not proposed tourism as a stand-alone category nor sought to incorporate it into the important Amendment 6 tabled by the noble Earl, Lord Clancarty, to which I have added my name. His amendment rightly strengthens the strategic recognition of the arts, heritage and creative industries. My amendment is narrower and more operational. It simply makes it clear that tourism sits within economic development and regeneration, which is how local authorities already understand and deliver it in practice.

Too often, tourism is grouped alongside the arts and creative industries in local authority structures, where its scale and commercial focus can unintentionally shape priorities and funding conversations that are not directly about culture itself. Placing tourism clearly within economic development helps to maintain that distinction while allowing cultural policy to retain its own strategic clarity. This matters particularly in the context of the Government’s emerging work on a visitor or tourism levy. Even at modest levels, published estimates suggest that such a levy could raise hundreds of millions of pounds a year in England and potentially over £1 billion annually if applied more widely—sums that would exceed Arts Council England’s entire annual capital budget and be comparable in scale to a decade of lost local authority cultural investment.

In the Cultural Policy Unit’s helpful paper A City Tourism Chargethe noble Earl, Lord Clancarty, will no doubt develop this point further on Amendment 6, with which I entirely agree—there is a strong and well-evidenced case that a significant proportion of any such levy should be invested directly in cultural and heritage assets, which are often the very reason that people visit in the first place. For strategic authorities to play a meaningful role in shaping and deploying such tools, tourism needs to be clearly within scope. Without explicit inclusion, there is a risk that tourism falls between stools—assumed but not quite owned. This amendment provides clarity, not prescription, and I hope that the Minister will see it as a proportionate and helpful addition.

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Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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I thank the noble Lord, Lord Mawson, for those additional points. In this Room there are many people from local government, who have spent many years working to make sure that what he called the machinery of state is not interfering with actually delivering at local level. What we are trying to do with the Bill is to make sure that we continue that, but no doubt we will have many discussions about whether or not it is going to work.

It is very important that what we do is driven by local people at local level. The Co-operative Councils’ Innovation Network, which I started with my right honourable colleague from the other end, Steve Reed, about 15 years ago now, sets up pilot projects to show exactly how you start with the impact at local level and then work up to what needs to be done in the machinery to make that work. That is what I want to do but on a national scale, and I hope that the Bill will go a long way towards doing so.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I raised a minor point around paragraph (a) in Clause 2—“areas of competence”—which refers to “transport and local infrastructure”. My point is about the wording. That could perhaps be taken to mean local infrastructure related to transport. That is probably not the intention of the Government and this is local infrastructure in general, but perhaps there is an opportunity to clarify that wording.

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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The noble Lord knows, because we have had the conversation, that I feel that the order of that wording is a little unfortunate. We will reflect on that because it does look as though it is infrastructure related just to transport. That is not the intention of the Bill. The Bill is intended to reflect that the competences will include local infrastructure and transport. If that local infrastructure relates also to transport, well and good, but it might be other infrastructure. So I will reflect on that and come back to the noble Lord.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I declare my interest as a chief engineer working for AtkinsRéalis and as a director of Peers for the Planet.

I welcome this Bill, but I feel for the Minister. She has just about finished the Herculean task of taking the Planning and Infrastructure Bill and the Renters’ Rights Act through this House. To use the words of the noble Lord, Lord Lansley, this is another doorstop of a Bill for her to take through.

This is a very important Bill on something that many Governments have grappled with over many years. So far, it has been tackled in quite a piecemeal way. There is a real need for that strategic-level approach to complete that process and seize all the benefits of comprehensive devolution across the UK.

I have worked for many years on regional issues in the Midlands. Noble Lords have mentioned many areas of the UK in this evening’s debate, but not yet the Midlands. The Midlands is a great test bed or case study for the issues we are talking about. When I came into Parliament, we had a single combined authority in the Midlands—the West Midlands Combined Authority—but there was nothing across the rest of the region. Where I was, in Derby, in the East Midlands, we looked on the west with a little envy. At the time, Andy Street had huge levels of success in being that voice and in bringing large levels of public and private investment into the West Midlands, while we in the East Midlands were lagging far behind. Now things have moved on. We have the East Midlands Combined County Authority and the Lincolnshire Combined County Authority as well.

There are issues with the way in which this devolution is being approached. I go back to something that the noble Lord, Lord Blunkett, brought out. He made a very perceptive comment on what was then the Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill, earlier in the Session, which was looking at Skills England. The noble Lord said that devolution was something we could all get behind as a concept but, in doing so, we create joins and barriers that were not present before, and we have to learn how to get through those barriers that we have created.

From observing a lot of the legislation that has gone through the House in this Session, I have noted many areas where that is a problem. For example, I have talked about skills. The Government’s approach to skills in Skills England has been driven through combined authorities. Even though we now have three combined authorities in the Midlands, more than half the population lives in areas outside a combined authority, so they cannot take the benefits of some of these initiatives.

We have seen the same in the Social Mobility Committee, which has just reported on the approach to social mobility. The Youth Guarantee Trailblazers are being driven through combined authorities. Of course, that will be resolved in time through the Government’s plans but, even when we move to a model of strategic authorities that cover the whole country, we will need to break down those barriers and I suggest that a pan-regional level is the best place to do that: to look at investment into regions, skills, energy and social mobility. These are areas which require this broader, pan-regional approach. So I look forward to working with noble Lords in Committee to think about how we can put more of a broader—perhaps a pan-regional—structure into this, which is something that was brought out strongly in the Government’s White Paper as well.

My second point is that the Bill is surprisingly silent on energy. If we look at the areas of competence in Clause 2, a number of areas are brought out—transport, skills, housing, et cetera—but energy is conspicuous by its absence. There is a need for clarity here on how these strategic authorities are going, for example, to work with Great British Energy, and on the role of regional energy strategic plans and local area energy plans. We will need some discussion in Committee on how energy will be factored into the role of these new strategic authorities.

On the environment as well, we are retreading some of the discussion that we had on the Planning and Infrastructure Bill, but the planning role of these strategic authorities needs to align with the strategic priorities of the country: environment and net zero. This carries on from our earlier discussion. I want to bring back in Committee how the planning system can better align with these strategic priorities to ensure that what gets built by strategic authorities aligns with those goals, and to empower the strategic authorities to deliver on those goals.

To finish, the vision is there. Many of the issues that the country has faced in recent decades can be traced back to that centralisation of power and opportunity. The regions have been left behind—the geographic inequality that the noble Earl, Lord Devon, mentioned—and the way to resolve that is to devolve power and resources and use all that local knowledge to revive the regions and, not least, deliver the Government’s economic growth agenda.

Moved by
114: After Clause 52, 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) A planning authority when exercising a relevant function under the planning Acts shall have special regard to the need to mitigate and adapt to climate change.(3) 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 91 of the Levelling Up and Regeneration Act 2023) must have special regard to the mitigation of, and adaptation to, climate change.(4) For the purposes of interpretation of this section“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)(5) “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.
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Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I thank my supporters on this amendment, the noble Lord, Lord Krebs, and the noble Baronesses, Lady Young of Old Scone and Lady Parminter. I also thank the Minister for all the engagement we have had on this issue between Committee and Report. I feel a slight sense of déjà vu bringing this amendment before the House, because it is very similar to one tabled to the then Levelling-up and Regeneration Bill a few years back. We have made some really good progress in the intervening period across both guidance and legislation. I will concentrate my remarks on some of the issues I have discussed with the Minister between Committee and Report. I think we and the Government agree on the general direction of travel; our differences may be in how this should be implemented.

I come back to the point raised by the Government that we now have guidance in the National Planning Policy Framework, which is really positive, that climate and nature should be considered within planning decisions. The difference between having the duty in the NPPF and having the special regard duty in statute is that, with the NPPF, a climate and nature duty is just one consideration among many others for decision-makers on the ground to take account of. It does not have any elevated weight within the planning system. This is quite analogous to issues I have talked about earlier in Committee around duties on regulators; at the moment, regulators do not have that specific strategic direction in line with the Government’s goals, which has led to some of the issues around consenting of large infra- structure, for example. Our duty, using that “special regard” wording, would effectively prioritise or upweight climate within the planning system, which would really make a difference in ensuring that it is adequately considered. That is the core of our difference with the Government. They need to consider how climate can be better embedded and have weight within the planning system.

The other area we have talked about is the concern around litigation and possible legal cases in the court because of an amendment such as this. Actually, since this amendment was first debated during the then Levelling-up and Regeneration Bill, around eight other legislative or regulatory frameworks—ranging from pension scheme trustees to financial regulators, NHS trusts, Ofgem, the Crown Estate, Great British Energy and Ofwat—now have climate and nature duties. As far as I am aware, that has not resulted in any legal cases. On the contrary, the feedback from organisations with these duties appears to demonstrate that they are effectively driving the decision-making and delivery of climate and nature-friendly policies and strategies in these institutions.

The amendment has been reviewed by planning and legal experts and has been derisked by using that well-established legal term “special regard”, which has been tried and tested in the courts over many years in relation to Section 66 of the Planning (Listed Buildings and Conservation Areas) Act 1990. It also provides clarity. We have had a number of cases go through the courts that are stopping sustainable developments in the UK. It would go in the reverse direction and provide welcome clarity to the planning system. The amendment has had wide support, including from the Chartered Institute of Housing, Rights Community Action, UK100 and the Town and Country Planning Association.

We have a potential way forward here in that the National Planning Policy Framework, is being updated between now and the end of the year. There is a good opportunity here for the Government to consider the wording of the NPPF in the updates they are making. I have proposed some wording to the Minister for how the NPPF could be updated to go back to that point about adding weight to climate and environment within the planning system. If the Minister could consider those updates in the revision to the NPPF and meet me and other stakeholders after the passage of the Bill, that would be a good step forward and a good way to address the outcomes aimed at by this amendment.

In the final analysis, this is about letting local authorities get on with the job of building sustainable developments and infrastructure right across the country to support growth and support our climate and nature targets. I beg to move.

Lord Blencathra Portrait Lord Blencathra (Con)
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My Lords, when I saw Amendments 206 and 114, I knew that I had to table my Amendment 121F, so that biodiversity was not forgotten again as all attention focused on climate change. I say again, and for the last time on this Bill, that with enormous political will and expenditure, it is possible to reverse climate change, but when a species is lost, it is gone forever.

Local authorities have no locus on climate change—no climate change laws apply to them—but they have many obligations under the Environment Act 2021 to save biodiversity. Therefore, I risk saying to the distinguished and noble Lords who have signed Amendment 114, and are far more expert on this matter than I am, that my amendment is more important than theirs.

Proposed new subsection (2) is, I would assert, rather vague. It states:

“A planning authority when exercising a relevant function under the planning Acts shall have special regard to the need to mitigate and adapt to climate change”.


I think the Government already have all the powers and housing regulations to impose standards on insulation, heat pumps and issues relating to net-zero targets. Indeed, a House of Commons 2023 report stated that the role of local authorities is already defined, namely:

“Implementing enforcing minimum energy efficiency standards for new builds … Delivering funding to retrofit existing homes and improve their energy efficiency … Shaping housing, infrastructure and renewable energy development in their area in their role as local planning authorities … Developing and delivering heat network connections … Encouraging active travel, decarbonising public transport and installing public chargepoints for electric vehicles”.


That is why I say that Amendment 114 is unnecessary.

Although there is only one target on climate change—net zero by 2050—the UK has 23 targets on halting and reversing biodiversity loss. They were published in March, as referred to in my amendment, in the policy paper Blueprint for Halting and Reversing Biodiversity Loss: the UK’s National Biodiversity Strategy and Action Plan for 2030, which is the UK plan to implement the Kunming-Montreal global biodiversity framework, agreed in 2022, in which the UK played a leading role and the Joint Nature Conservation Committee played a very important role.

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Baroness Taylor of Stevenage Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
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My Lords, before I respond on this group of amendments, I convey my get-well wishes to my noble friend Lady Hayman of Ullock, who, as noble Lords will realise, very much hoped to be here with us today, but unfortunately is unwell. I know that she wanted to take part in today’s discussions. We all send her our very best wishes for a speedy recovery.

I am grateful to hear the passion around the Chamber on both climate change and biodiversity, and the healthy tension that seems to have arisen between the two in this morning’s discussion. The key issue is that they are, of course, interdependent, and we have to consider both.

I am grateful to the noble Lord, Lord Ravensdale, for his Amendment 114, which seeks to require the Secretary of State and relevant planning authorities to have special regard to climate change mitigation and adaptation in national planning policy, local plans and planning decisions. I am grateful to the noble Lord for his engagement on this subject and other matters concerning the Bill.

We support the principle that both central and local government should be held to a high standard of accountability in considering climate change throughout the planning system. Of course, I totally agree with the noble Lord, Lord Blencathra, that local government has a vital role in all this. However, as made clear in previous debates, planning policy and existing statutory requirements already cover much of the content of this amendment. For example, the Planning and Compulsory Purchase Act 2004 already requires local planning authorities to include in their local plans policies that contribute to climate change mitigation and adaptation. There is also a requirement in the Environment Act 2021 that environmental factors are considered in the planning system. It also includes the environmental principles duty, which applies to Ministers when making policy.

Furthermore, the Environment Agency produces the flood and coastal erosion risk management strategy, in line with the Flood and Water Management Act 2010, which all risk management authorities, such as district councils, lead local flood authorities and internal drainage boards, are required to act in accordance with.

The National Planning Policy Framework incorporates the principles of sustainable development, including climate change mitigation and adaptation. We have committed to consulting this year on a clearer set of national policies to support decision-making. This will fully recognise the importance of the issue, set out more explicit principles to be followed in the planning system and include further consideration of how the planning system can best address and respond to climate change adaptation and mitigation. I encourage the noble Lord to engage with this consultation when it is launched. The exact wording of these policies and how they interact with other policies in the NPPF will need to be subject to careful consideration, so it would not be appropriate to commit to a specific wording in advance of this or prior to the public consultation that needs to take place.

I understand the point made by the noble Lord, Lord Krebs, about overheating. As he will know, we always keep building regulations under review, but I will take his comments back to the team about what more we need to do to promote the issues around overheating and how we deal with it.

It is crucial that we address climate change in an effective way that avoids being unnecessarily disruptive or giving rise to excess litigation. A legal obligation to give special regard to climate change across the planning system risks opening many decisions to potential legal challenges, especially given how broad climate change is as a concept. I understand the noble Lord’s good intentions, but there is a very real risk that the potential for legal challenge opened by this amendment could impede the production of the policies and decision-making needed to tackle this important issue.

I should stress that, although planning policies do not at present carry specific legal weight in decision-making, this should not obscure the significant influence they carry in the operation of the planning system as important material considerations that must be taken into account where they are relevant. I have written to all noble Lords on this matter.

I am grateful to the noble Lord for his suggestions related to the NPPF, and I am happy to continue meeting him about that. Although we agree that climate change is an extremely serious matter in the context of planning, I hope your Lordships will agree that the approach I have set out is the more appropriate route to ensuring that this happens. For these reasons, I hope that the noble Lord, Lord Ravensdale, will feel able to withdraw his amendment.

Amendment 121F, tabled by noble Lord, Lord Blencathra, seeks to require the Secretary of State to consider the UK’s National Biodiversity Strategy and Action Plan for 2030 when preparing national planning policy. It also seeks to require relevant planning authorities to have special regard to the UK’s national biodiversity strategy and action plan for 2030. I welcome the principle of the amendment, as it seeks to embed the environment in planning policy. However, it is unnecessary because it duplicates existing legislation. When setting policy, Ministers must have due regard to the Environmental Principles Policy Statement. This applies to all new policy, including planning policy. It sets out a robust framework on how to embed environmental decision-making into policy-making.

Current national planning policy is clear that local development plans and individual planning decisions should contribute to and enhance the natural environment, including by protecting sites of biodiversity value. Individual planning applications are assessed against national policies to ensure that decisions are made considering the natural environment. For example, if significant harm to biodiversity resulting from a development cannot be avoided, mitigated or, as a last resort, compensated for, planning permission should be refused.

Where relevant, legislation such as the environmental impact assessment regulations and habitats regulations also applies, which ensures that the environmental impacts of individual planning applications are considered thoroughly before relevant planning authorities decide whether to grant consent. Local development plans themselves are subject to strategic environmental assessment under the Environmental Assessment of Plans and Programmes Regulations 2004, which require the likely significant effects of a plan or programme to be reported and include reference to biodiversity.

As the UK’s National Biodiversity Strategy and Action Plan for 2030 says, we have created

“powerful new tools such as Biodiversity Net Gain in England, a mandatory approach to development which makes sure that habitats for wildlife are left in a measurably better state than they were before the development”.

I therefore trust that the noble Lord, Lord Blencathra, agrees that existing legislation and policy is in place and this amendment is not needed. I ask him to consider not pressing his amendment.

Amendment 206, tabled by the noble Earl, Lord Russell, would require those performing functions under Part 3 to have regard to the Climate Change Act 2008. I recognise that the noble Earl is seeking to deepen engagement with the Climate Change Act but suggest that the existing approach in the Bill is sufficient to ensure that such matters are properly considered where appropriate.

Clause 88(3) already requires Natural England or the Secretary of State to have regard to relevant strategies and plans, which would include the Climate Change Act where it was relevant to an EDP. This ensures that the Climate Change Act is factored in where appropriate but avoids adding undue burden to the preparation of EDPs where it is not relevant. The noble Earl will be aware of the wider consideration of the Climate Change Act throughout the planning process, so I hope he understands why including explicit consideration in the EDP process in this way is not necessary. On that basis, I hope he feels able not to press his amendment.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, the noble Lord, Lord Blencathra, provided an excellent sum-up about climate change not being the only game in town. That is an important consideration, which is why I attempted in my Amendment 114 to join things up and include the Environment Act alongside climate change considerations. The noble Lord, Lord Krebs, also made an important point about systems join-up and said that we need to consider adaptation very strongly as well in how we take all this forward.

I listened very carefully to what the Minister had to say. She listed a number of other areas of legislation and guidance in which this issue is mentioned. But, of course, that is partly the point of this amendment—that it would provide a link-up between all the scattered mentions of climate and environment throughout the existing legislation and guidance.

I say to the noble Baroness, Lady Coffey, that the “special regard” wording has been well tested in respect of heritage buildings. I recognise that it is already reflected but I am trying to drive at the fact that it needs weight within the planning system.

I am encouraged by what the Minister had to say about the NPPF and the opportunity to engage with that process. On that basis, I beg leave to withdraw my amendment.

Amendment 114 withdrawn.
Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, Amendment 202 is in my name and that of my noble friend Lord Offord of Garvel. It addresses the pressing need to streamline and speed up the delivery of new nuclear power stations, currently burdened by heavy-handed regulations. It aims to correct this and ensure that our planning system facilitates rather than fetters the delivery of affordable, accessible and secure energy for the British people.

Energy is the fundamental deciding factor in the success of an economy and that has never been truer than it is today. Energy is indeed now the currency of AI. Progress is decided by whether innovation can be supported by a cheap and accessible supply of energy, and in the present day, with round-the-clock data centres, AI start-ups and an economy that runs non-stop, that is all the more important. If we want to be a growing and prosperous economy, we cannot resign ourselves to be a nation that accepts intermittent and expensive energy.

Unfortunately, we—I include successive Governments in that—have so far done just that. Our international counterparts have been busy reducing their costs and securing their domestic energy supply. At the same time, we have been busily engaged in a somewhat blinkered and self-defeating ideological pursuit. The result is that our costs are now some of the highest in the world, and our shackled planning system does not let us correct this.

This is not an attempt to play politics; the empirical evidence proves the point. Wind and solar energy now account for nearly 40% of our national grid generation. We have commandeered fields and tarnished the countryside to reach this outcome. The result is that even if wholesale prices halve in the next five years, electricity prices will be 20% higher. The policy costs of this Government’s initiatives add around £300 to the average annual bill and cost companies twice as much to deliver it as it does in France. This is not the result of an efficient energy system.

The obvious solution to this is to build more nuclear power plants. They may have large upfront costs, but that is offset by relatively small variable costs. There are potential economies of scale, and they are infinitely more productive than the sources of energy we currently rely on. Once built, they are entirely domestic and provide a secure and sovereign energy source. Replace wind with nuclear power and we have a source of energy that uses up 3,000 times less land—that is an environmental change that will have a noticeable effect on the people of this country.

The problem lies in the fact that we have not taken the necessary steps to realise nuclear’s benefits. The last nuclear power station to come online did so 30 years ago, and of the five in use, four are scheduled to close by the end of the decade, as it currently stands. Hinkley Point C, currently under construction, is set to become the most expensive power station in human history, at an exorbitant £44 billion in 2024 terms. It uses the same EPRs as counterparts in France and Finland, yet they pay 27% less per kilowatt hour than we do.

I spent yesterday in Finland at Olkiluoto 3, the first nuclear power station to have been opened in 15 years. It began electricity production in 2023. It is estimated to last for another 100 years and is the third-most powerful nuclear power generator in the world. It produces almost a third of all electricity in Finland, regardless of the weather or the time of day. It is the same design as Hinkley Point and that proposed for Sizewell C, so we should learn from the engineering challenges faced by the Finns.

The environmental lobby has undertaken a two-pronged attack on energy security, the first of which is the endless sprawl of wind and solar farms, the second being the endless stream of consultations, challenges and appeals that are now a given with every new planning application. This amendment would go a long way to answering that problem, putting progress over paperwork and allowing vital national infrastructure to be built.

If we seriously want lower bills, a dynamic and growing economy and a Britain that attracts investment, we must be brave in bypassing the self-sabotaging legislation which holds us back. This amendment would not dangerously free the market. It is a balanced approach that gives the Secretary of State the choice—it is a choice—on whether the benefits of nuclear power must outweigh discretionary environmental concerns. It would allow us to achieve energy security, embrace the new technologies that come with industrial development and enable the growth that this Government have for such a long time promised. I beg to move.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I will speak to my Amendments 207, 220 and 230, which are all linked. I am grateful to the noble Lord, Lord Roborough, for supporting them. I am also grateful for all the constructive engagement I have had with the Minister and her teams between Committee and Report. I am sorry that the noble Baroness, Lady Hayman, cannot be here this evening and wish her a speedy recovery.

I reflected on the Committee debate which highlighted the contentious nature of these amendments. Of course, noble Lords are concerned about rolling back protections for nature for infrastructure build, and the delays we have seen to large infrastructure in the UK are a multifaceted problem, but we cannot get away or escape from the fact that poor interpretation of environmental regulations is causing excessive cost and multiyear delays to many of our large infrastructure projects. The evidence here is clear—I will not go through the examples again that I cited in Committee.

The root cause of the delays to many of our offshore wind and nuclear programmes, and the other examples that I cited, and their excessive costs, comes down to an overzealous interpretation of the habitats regulations. Ironically, those regulations are causing long delays to much of our net-zero infrastructure and much else besides. They are impacting our national security, because energy security is national security.

My amendments offer a way through that, while maintaining protections for nature, by attempting to take the regulations back to their original intent by reversing case law and clarifying interpretation of existing law. These changes would move the dial significantly by ensuring that regulators are guided towards a more sensible and proportionate interpretation of the regulations and compensation, streamlining the programme for getting infrastructure through the system.

Finally, these points relate to a substantive proposal that the Minister has offered related to these amendments, so I look forward to hearing her proposal in detail when she sums up.

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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My Lords, I should be clear at the outset that the amendments in this group seek to amend substantively the habitats regulations beyond the context of EDPs and the nature restoration fund, and beyond the current focus of the Bill. I am aware that these amendments, and the desire to make changes to the wider system of the habitats regulations, stem in part from a concern that the NRF will not deliver for infrastructure projects. I want to be very clear that this is not the case. We are all well aware of cases where vital infrastructure has been held up by specific environmental issues. We are currently identifying opportunities where EDPs and the NRF can have the greatest impact on infrastructure delivery, particularly addressing common challenges that are currently difficult for developers to resolve alone.

I stress that the Government are already taking action. We believe that the habitats regulations assessment process should be applied appropriately and proportionately, with decisions based on the best available scientific evidence. The Government are working closely with stakeholders to improve the functioning of the habitats regulations, including by acting on the recommendations of the Corry review and the post-implementation review of the habitats regulations.

We know that there are particular issues with the delivery of suitable environmental compensatory measures for offshore wind projects. The consultation, which closed in September, covered proposed reforms to deliver a more flexible approach to this. We will make it clear in guidance that only relevant information needs to be considered in reaching conclusions on the risks to a protected site. The updated guidance will also make it clear that small effects that do not have any prospect of risking harm to a protected site can and should be screened out.

Finally, we will take the opportunity to set out more clearly where there is already flexibility in law in considering appropriate compensatory measures under Regulation 68 of the habitats regulations. Should guidance not be sufficient to make clear how the regulations should be applied, we may consider whether legislative change is needed, in careful consultation with developers, planners, ecologists and other relevant stakeholders. On that basis, I hope that noble Lords will not press their amendments.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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Before the Minister sits down, I very much welcome her commitment to address the points raised in the amendment through guidance and her recognition that legislation will be required. I look forward to working with the Minister and her team on that. Nevertheless, I stress the urgency of bringing forward guidance quickly in this area, due to the delays we are seeing. Can she offer any more information on the timescales for the issuing and release of that guidance?

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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I understand the point the noble Lord is making. I will take the subject back and discuss it with the teams in Defra and my own department, and then write to him, if that would be helpful. I am loath to make a time commitment from the Dispatch Box without doing that first.

Turning to Amendment 202, as previously noted I share the ambition of the noble Lord, Lord Offord, and the noble Baroness, Lady Bloomfield, to support new nuclear development, which will be critical for economic growth and achieving our clean energy mission. However, providing the Secretary of State the ability to completely exempt nuclear power stations producing more than 500 megawatts from requirements in respect to the habitats regulations, environmental impact assessments and any future environmental delivery plans would create uncertainty for developers and erode public support for such projects. These are important tools for making sure that the environmental impacts of projects are considered. The environmental protections they contain relate not only to nature but to the broader community impacts. This blunt approach to disregarding these obligations would put decision-makers at a disadvantage and prevent developers taking important steps to address the environmental impact of the development.

I agree with the noble Lord and the noble Baroness; we need to do more to reform the planning system to accelerate nuclear development in this country. We are in the final stages of designating a new national policy statement for nuclear energy generation, EN-7. That will provide a robust and flexible framework for new nuclear developers seeking development consent and, alongside the Overarching National Policy Statement for Energy (EN-1), will provide the Secretary of State with some discretion when considering habitats regulations and the environmental impact assessment during decision-making by defining low-carbon energy infrastructure, including nuclear, as a critical national priority. We are also awaiting the final recommendations of the Nuclear Regulatory Taskforce.

I hope, following my explanation, that the noble Baroness, Lady Bloomfield, will feel able to withdraw Amendment 202.

Moved by
20A: After Clause 9, insert the following new Clause—
“Applications for development consent: low carbon energy infrastructureAfter section 35D in the Planning Act 2008 (timetable for deciding request for direction under section 35B) (inserted by section 3 of this Act) insert—“35E Representations by relevant authorities, net zero and sustainable development(1) In relation to relevant nationally significant infrastructure projects, relevant authorities should have special regard to the matters in subsection (5) when carrying out the activities in subsection (6).(2) The relevant nationally significant infrastructure projects are—(a) the construction or extension of a generating station within the meaning of section 14(1)(a) for the purpose of low carbon electricity generation, or(b) the installation of an electric line above ground within the meaning of section 14(1)(b) for the conveyance of electricity generated by a station in subsection (a).(3) For the purposes of subsection (2)(b) it does not matter whether the electric line is also used or intended for use in connection with the conveyance of electricity generated from other sources.(4) The relevant authorities are—(a) the conservation bodies in section 32 of the Natural Environment and Rural Communities Act 2006 (UK conservation bodies),(b) the Environment Agency, and(c) such other bodies as may be prescribed in regulation by the Secretary of State.(5) The matters referred to in subsection (1) are the need to contribute towards—(a) achieving compliance by the Secretary of State with part 1 of the Climate Change Act 2008 (Carbon target and budgeting),(b) the achievement of biodiversity targets under sections 1 to 3 of the Environment Act 2021,(c) adapting to any current or predicted impacts of climate change identified in the most recent report under section 56 of the Climate Change Act 2008, and(d) achieving sustainable development.(6) The activities referred to in subsection (1) are any representations under Part 5 and Part 6.(7) In discharging their duty under subsection (1), the relevant authorities must have regard to any guidance given from time to time by Secretary of State.(8) In this section “low carbon electricity generation” has the meaning given in section 6(3) of the Energy Act 2013.””
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Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I start by declaring my interest as a chief engineer working for AtkinsRéalis.

I was reassured by what the Minister stated in response to this amendment in Committee, but I have a few additional points of clarification, hence bringing this back on Report. I am grateful to the Minister for her time last week in discussing the response to this amendment.

Moving in this direction is important for a number of reasons. The first is to help speed projects through the system by ensuring that regulators are aligned with the Government’s goals, in the case of this amendment relating to electricity generating projects and infrastructure. It is all about ensuring that regulators are concerned not just with the micro view, the local impacts of the project on the environment, but the macro view, the potential benefits that that project will bring for the country, whether that is net zero or environmental benefits—in effect, assessing the benefits as well as the costs. That will help some of the issues we have seen in the logjam of projects related to offshore wind and nuclear.

It will continue the work that Peers have undertaken to apply a consistent duty across regulators. We had the duty on Ofgem under the previous Government, on Ofwat under this Government, and on other organisations such as the Crown Estate. This takes inspiration from the Private Member’s Bill that is being taken through by the noble Lord, Lord Krebs, about a consistent duty across all regulators.

It is consistent with the output of the Corry review to help prevent, in the words of the review, the “regulatory overload” that has emerged over time. Simplifying duties on regulators is another key point in helping to speed projects through the system.

I shall not delay the House any further. I would be grateful if, in summing up, the Minister could provide answers to the following points. In Committee, the Minister stated that:

“As we review and develop guidance on all aspects of the NSIP process, we will consider, alongside government policy in national policy statements, how we can support the intent of this amendment”.—[Official Report, 17/7/25; col. 2094.]


Can the Minister please provide additional detail on how duties on regulators are being brought within that guidance and national policy statements now that consultations in that area are under way?

There is still the point on the statutory duty. So far, the Government are going down a guidance route; we have had numerous debates on guidance versus statute throughout the Bill. What plans do the Government have to bring forward statutory duties on regulators to align with the work already done on Ofgem and other regulators? I believe that long-term strategic certainty and drive can be done only via statute.

Finally, on timescales, I would be grateful if the Minister could give an update on the strategic policy statements for all regulators—the commitment that was made by the Government coming out of the Corry review—and what that programme looks like. I beg to move.

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Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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My Lords, I thank the noble Lord, Lord Ravensdale, for meeting me during recess to discuss this. His Amendment 20A seeks to ensure that, in relation to NSIP for low-carbon energy, relevant authorities should have special regard to the achievement of Government’s environmental targets and sustainable development.

The amendment is similar to one debated in Committee. It refers specifically to compliance by the Secretary of State with carbon targets and budgeting and adapting to current or predicted climate change impacts under the Climate Change Act 2008, the achievement of biodiversity targets under the Environment Act 2021, and achieving sustainable development.

As the Government made clear in Committee, we recognise the importance of this issue, but we do not believe that the amendment is necessary. It is vital that we move forward and deliver the critical infrastructure we need, not least to cut greenhouse gas emissions to net zero by 2050. The Bill will deliver a win-win for growth and nature. Developments such as clean energy infrastructure are key to tackling the climate crisis and supporting nature recovery. The Government also appreciate the important role that these bodies play in the planning system. That is why we have taken action in response to the Corry review to ensure that these bodies are joined up and aligned with the Government’s broader priorities. I will say a bit more about that in a moment.

As I did in Committee, I reassure noble Lords that the Government are already utilising the tools they have to guide the considerations given by public bodies in their engagement with the development consent order process. The first of these relates to national policy. The energy national policy statements already take full account of the Government’s wider objectives for energy infrastructure to contribute to the achievement of sustainable development, and to ensure that the UK can meet its decarbonisation targets. We are also strengthening national policy statements through this Bill by requiring that they are updated at least every five years, and by making it easier to undertake interim updates for certain types of material amendments. The Government have recently concluded consultation on drafts of EN-1, EN-3 and EN-5, which will be updated to reflect the Clean Power 2030 Action Plan.

The second relates to guidance. It is critical that public bodies engage fully in examinations so that the examining authority has access to their expertise and can properly scrutinise the application before reporting to the Secretary of State. Through the Bill, the Government are introducing a new duty on public bodies to have regard to any guidance published by the Secretary of State in making representations as part of examinations. This guidance will support government objectives by ensuring that these bodies engage effectively in the process and can provide the right information in a timely way.

We are currently consulting on reforms across the NSIP system to streamline the process. As well as consulting on what pre-application guidance to applicants should contain, we are seeking views on whether to strengthen expectations that statutory bodies attend hearings in person where relevant. As we then review and develop guidance on all aspects of the NSIP process, we will consider how this, alongside government policy in national policy statements, can support the intent of the amendment.

As I have made clear today, the guidance the Government will issue to statutory bodies about their role in the NSIP process will play a vital role, I hope, in addressing noble Lords’ concerns. The Government are clearly in the process of developing policies to update, streamline and rationalise the operation of these bodies and that of regulators and their role in the operation of the planning system, in response to both the Corry and the Cunliffe reviews. My colleagues would welcome further engagement with the noble Lord, Lord Ravensdale, and others in the House who have a particular interest in this area, as we undertake the important work.

Complex projects engage multiple regimes, and I understand that they find themselves batted backwards and forwards between Defra regulators. So we are piloting a lead environmental regulator model to provide a single point of contact for developers on the most complex schemes. We have already made a start, working with the Lower Thames Crossing on this.

The noble Lord, Lord Ravensdale, asked about the timescale for releasing strategic policy statements for Defra regulators in response to the Corry review. This is one of nine fast-tracked recommendations—and I mean fast-tracked. We will communicate on this very soon—I say to the noble Lord, Lord Deben, that I am sorry to use that term—and, when I say “very soon”, I am talking about days, not weeks or months; I hope that gives him some guidance. As the noble Lord knows, the Secretary of State must have regard to matters that are relevant and important to decisions. For all those reasons, I hope the noble Lord is reassured and will withdraw this amendment.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I thank the Minister for those remarks. I am reassured by what she said on timescales and the work that is being undertaken on the NSIP process and the guidance that will come out of that. I would certainly welcome the opportunity to work with her and her team on that guidance. There is more work to do here. The key is ensuring coherence, as the noble Lord, Lord Deben, said. But I am encouraged by the progress and, with that, I beg leave to withdraw my amendment.

Amendment 20A withdrawn.
Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I have just a few brief points to add to what the noble Earl, Lord Russell, stated. For me, this goes back to the governance system. Of course we have made progress in recent years; we have the strategic spatial energy plan, which is being managed by NESO, but we are hearing some feedback on that plan. In effect, it tries to map out what energy projects should be located where, in minute detail across the country. The industry has highlighted a number of problems with trying to do this at that scale; we need local knowledge flowing up into these plans. As well as the top down, we need the bottom up. We need to capture all the great knowledge that local areas and local authorities have.

I will just take heat as an example. One area may be better suited to heat pumps and another to heat networks. One area may have relatively well-insulated housing stock; another, poorly insulated housing stock. We need to capture all that and bring it into the energy transition. It is an important piece of the puzzle to making this energy transition work and making it cost effective. A recent study by UKRI highlighted tens of billions of pounds of savings if a place-based approach is taken over a place-agnostic approach, so it is important that the Government make some progress on this. We have not seen the progress needed.

We have had some good pilots using this approach in various areas across the country, but we now need the Government to get behind this approach to feed all the benefits of that local knowledge into the energy transition. I would welcome some reassurance from the Minister at least on timescales, on how they see this programme developing and on it reaching a decision on the role that local area energy plans will play in the energy transition.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, Amendment 24 in the name of the noble Baroness, Lady Bennett of Manor Castle, seeks to ensure that small-scale renewable energy products are prioritised by the independent system operator and planner. As the noble Baroness knows, we on these Benches are very concerned about energy prices and want to see Ministers taking a pragmatic approach to delivering the energy infrastructure that we need.

I know that there is a particular interest in renewables, but we need to take a whole-system approach, tackling policy costs as well as the marginal costs of electricity. I would be interested to hear from the Minister what assessment the Government have made of the current support for renewables at a smaller scale, and it would be helpful for the House to know what plans the Government have on smaller renewables.

Although we feel that Amendment 46 in the name of the noble Earl, Lord Russell, is too prescriptive, it raises an important question about planning our energy supply for the future. Clearly, local needs should be taken into account. I look forward to the Minister’s response.

Planning and Infrastructure Bill

Lord Ravensdale Excerpts
Moved by
346DA: After Clause 87, insert the following new Clause—
“Development for reasons of national security or energy security in the absence of an EDP(1) The Conservation of Habitats and Species Regulations 2017 (SI 2017/1012) are amended as follows.(2) In regulation 64 (Considerations of overriding public interest), at end insert—“(7) In paragraph (1), “imperative reasons of overriding public interest” may include a situation where—(a) the Secretary of State considers that the development is necessary—(i) for reasons of national security, or(ii) in relation to the generation and conveyance of low carbon electricity, energy and security, and(b) no environmental delivery plan under the Planning and Infrastructure Act 2025 applies to the plan or project(8) In paragraph (1), “no alternative solutions” should be read to mean no alternative solution which can be delivered whilst maintaining reasonable development costs.(9) “Low carbon electricity generation” has the meaning given in section 6(3) of the Energy Act 2013 (Regulations to encourage low carbon electricity generation).”(3) In regulation 68 (Compensatory measures), at end insert—“(2) The Secretary of State may disapply this regulation where—(a) the appropriate authority commits to alternative compensatory environmental measures, and(b) the Secretary of State considers these measures—(i) have a higher environmental value than any compensation measures which would be necessary to meet the requirements of this regulation, or(ii) are necessary to maintain reasonable development costs.(3) Within six months of the day on which the Planning and Infrastructure Act 2025 is passed, the Secretary of State may publish guidance setting out how reasonable development costs are to be assessed in relation to this regulation.””
Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I declare my interests as a chief engineer working for AtkinsRéalis, and as co-chair of Legislators for Nuclear. This group of amendments gets to the heart of some of the issues with this Bill. It is important that we get Britain building again, not least to reverse the long stagnation in the UK economy since 2008. The Chancellor tells us that growth is the problem, and investment is the solution, which I wholeheartedly agree with.

There is a significant risk that Part 3, the centrepiece of this Bill, is not going to deliver for complex infrastructure. The reasons are straightforward: Part 3 may work for a known issue such as nutrient neutrality for a housing development, where developers can club together and pay into a fund. However, for infrastructure developments, habitat issues will not be known in advance, and there will not be time for developers to agree and implement an EDP before consent. Therefore, they are left with a couple of options: they can try to twin-track, which could risk adding even more bureaucracy to the process, or go the existing route. We all know the issues with the existing route—bat tunnels and fish discos have been well-publicised—but less well known are the years-long delays to offshore windfarms due to issues with compensation for environmental impacts and the like.

For example, we have had multi-year delays to the trio of Norfolk offshore wind projects—Norfolk Vanguard East, Norfolk Vanguard West and Norfolk Boreas—due to issues around compensation for an undersea worm, Sabellaria reef, even in areas where it was not present. That is not to mention cutting the size by around 40% and the generation potential of East Anglia ONE North windfarm due to habitat issues with red-throated diver, despite assessments putting the impact at one bird death per year.

Ultimately, if the Government want to meet their ambitious targets for clean energy and growth, they will need an approach that delivers for infrastructure, as well as for housing. For energy, we have managed to build approximately 4 gigawatts of new capacity per year over the last three years. To meet the Government’s clean power target, that will have to increase to at least 15 gigawatts per year between now and 2030—from the Government’s own data—so that is a quadrupling of our current build rate. A lot of that is offshore wind, and I should be clear from my examples that this acceleration in build rates simply will not happen under the current regulatory regime.

At the foundation of all this are the habitats regulations, which are of course very important for the protection of nature in this country but which have become overly burdensome due to the impacts of case law over the years and an overly precautionary approach by the regulator in some cases. Amendment 350 in the name of the noble Lord, Lord Hunt of Kings Heath, proposes some minor changes to steer the interpretation of the habitats regulations back to their original intent to protect nature but to strike a balance. This has been developed in broad consultation with planning lawyers and ecologists who have decades of experience in taking large projects through the planning system.

The amendment provides a menu of options for the Government. One of those is defining a science-led approach, which is important because too often the statutory nature conservation bodies require developers to provide evidence against hypothetical rather than real risks. I am vice-chair of the POST board—the Parliamentary Office of Science and Technology. POST is the link between the scientific research community and Parliament, and we work to ensure a science-led approach to lawmaking. This is an area where it is vital that we ensure that we take a scientifically rigorous approach.

The second part of the amendment would overturn some aspects of case law to get to a more proportionate approach, stating that de minimis effects cannot produce an adverse effect; that mitigation measures can be taken into account when deciding whether a proposed project is likely to have a significant effect; that there is no need to redo a habitats assessment for approval of conditions under a consent that was originally subject to a habitats assessment; and, finally, that compensation measures need not address the same type or scale of impact as the harm caused nor be in place before impact occurs, which restates existing law. I will leave the noble Lord, Lord Hunt, to fill in the detail.

The package of measures in Amendment 350 is a pragmatic and proportionate means of restoring some balance to a system that is currently making it extremely difficult to build infrastructure in the UK. One of the key benefits of what we are proposing is that it would have immediate benefits for a range of projects around the UK. It does not need additional regulations to be developed and raised nor EDPs to be developed; the impact is there straight away.

Amendment 346DA in my name is in the same vein and attacks the problem from a different angle—again, I thank the noble Lord, Lord Hunt of Kings Heath, for his support. It seeks to recognise that there are perhaps narrowly defined classes of projects which should be able to cut through the usual process. For example, we are building offshore wind, which is vital to our energy security and therefore to our national security. Is it really acceptable that these developments have been held up for years because of delays to compensatory regimes under the habitats regulations? Can we really afford to delay infrastructure that is key for the Government’s net-zero target, for energy security and therefore national security in this way? I suggest not, and that there could be certain classes of project, those related to national security and energy security, where the Secretary of State should have additional powers to allow projects to proceed and to work to define their own compensatory measures.

Between Amendments 350 and 346DA, we have a package of options for the Government which seek to recognise the issues of Part 3 for infrastructure and ensure that the Bill delivers for growth—I add to this my previous Amendment 46 on regulators. Ultimately, we need to strike a better balance between the impact of infrastructure on the local environment—the micro view—and the benefits of that infrastructure for the nation, whether that is net zero, energy security or economic growth: the macro view.

We have heard some rumblings in the news about a second planning Bill focused on infrastructure. I do not know the truth of that, but my observation is that we cannot wait for another Bill; we simply do not have the time. The Government need to seize the opportunity that the Bill represents and ensure that it delivers for infrastructure, and I restate the immediate benefit that these amendments would have. I beg to move.

Lord Hunt of Kings Heath Portrait Lord Hunt of Kings Heath (Lab)
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My Lords, it is a great pleasure to follow the noble Lord. I thank him for his amendments and for his support of mine. In fact, he very ably summarised my amendments. It is clearly important and good that we are getting back to what the Bill is all about: the growth agenda. As the Explanatory Memorandum and policy background state, we have a huge problem in building the infrastructure that we need to get this country going again and growing again. The Bill is obviously designed to help us do that, particularly through the planning reforms, EDPs and so on. The big question is whether the Bill is sufficiently focused to give us confidence that our regulatory system is not going to prevent the kind of rapid growth that we need. This is where there is some concern.

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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, government Amendment 349A in this group makes a minor legislative fix, inserting the correct definition of the Ramsar site series into the habitats regulations.

I turn to the non-government amendments and the debate we have just been listening to. The noble Lord, Lord Ravensdale, and my noble friend Lord Hunt of Kings Heath have tabled a number of amendments concerning the operation of the habitats regulations. I wish to add some detail to comments I made in Monday’s debate in response to amendments seeking to limit the disapplication of the habitats regulations to the specific features and impacts identified in the environmental delivery plan. This is an important point which is relevant for today’s debate.

As I said on Monday, the disapplication in Schedule 4 already applies only to the specific impacts of the development identified in the EDP. I want to set out how this could work in practice. If a development proposal comes forward that has three different impacts on protected features—for example, nutrient pollution, recreational disturbance on ground-nesting birds and an impact on dormice—there might be two EDPs covering the area where that development is located, each addressing strategically the impacts of development on one of those environmental features. In this scenario, the developer may choose to discharge its obligations in relation to the two environmental impacts covered by those EDPs through payment of the relevant levy for each. The remaining impact would continue to be assessed in the usual way, either through the habitats regulations assessment or by applying for a species licence. With the other two impacts being addressed through the EDPs, the remaining assessment would be more focused and streamlined.

I want to be clear that it would remain necessary to consider any effects not covered by an EDP. This is by design. EDPs are intended to be modular, with each one addressing a specific impact or impacts. They are not intended to be a comprehensive way of addressing all the possible environmental impacts of developments. I hope that helps to clarify.

I come to the specific amendments that we have been debating. I know that noble Lords have been concerned that EDPs might not deliver for infrastructure, so they have proposed these amendments to improve the operation of the existing system. Our focus in bringing forward the measures in this Bill has been on ways to practically improve the planning process. Case-by-case negotiations of mitigation and compensation measures often slow down the delivery of much- needed housing and infrastructure, as the noble Lord, Lord Ravensdale, explained in his introduction. The nature restoration fund will allow developers to benefit from a streamlined process and simple user experience, while delivering better outcomes for nature. The Bill is also clear that EDPs can be brought forward to support nationally significant infrastructure projects.

The Government already plan to address, through improved guidance, many of the points made in the amendments and by noble Lords. Although I note the desire for an open conversation about wider reforms to the habitats regulations, noble Lords will recognise that amendments of the type proposed go far beyond the NRF and would benefit from proper scrutiny and consideration. Although many in the Committee may favour the spirit of some of these amendments, legislating in this manner at this late stage of the Bill would risk a period of significant uncertainty for practitioners and a potentially negative impact on development that we would all wish to avoid.

I turn to Amendment 346DA. I thank the noble Lord, Lord Ravensdale, for raising the important issue of energy security. I wish to clarify that, through the overarching energy national policy statement, nationally significant low-carbon infrastructure is recognised as critical national priority infrastructure. In relation to such projects, the Secretary of State will start with a presumption in favour of granting consent. It is recognised that it is likely that the needs case for this infrastructure will outweigh the residual effects in all but the most exceptional cases, and we are already seeing positive impacts of CNP infrastructure. The current overarching national policy statement for energy also confirms that, where there are no alternative deliverable solutions to mitigating the impact of the NSIP on sites subject to habitats regulations assessments, then compensatory measures are still required.

Delivery of compensatory measures is an important part of protecting our network of protected sites, where damage to a site is unavoidable and where there is an overriding public interest. For offshore wind, as the noble Lord, Lord Ravensdale, explained, there are particular issues around the identification of suitable compensation, and the marine recovery fund will provide an optional mechanism which developers can pay into to discharge their environmental compensation obligations. In addition, for offshore wind, Defra recently consulted on changes to the environmental compensation requirements and intends to introduce a statutory instrument to deliver these changes. Where an environmental delivery plan is in place under the nature restoration fund, this will enable developers to fund strategic, Government-led conservation measures.

Amendments 349 and 350, tabled by my noble friend Lord Hunt of Kings Heath, and Amendment 349B, tabled by the noble Lord, Lord Lucas, would fundamentally alter many of the well-established principles of the current regime. While the Government understand and support many of their intentions, the focus of Part 3 is to establish the nature restoration fund and create a tool to address the environmental impact of development. Expanding the scope of the Bill in this way, as I said before on the other amendments, risks introducing uncertainty into the system and could slow the consenting of development. Several of the amendments also raise questions in respect of how they guard against environmental regression and significant harm to protected sites.

We feel that such significant changes to the habitats regulations assessment process would be better addressed following greater scrutiny, including from affected stakeholders. However, they raise a number of very important points about the operation of the habitats regulations. To take two specific points, decisions should be made on the basis of the best available scientific evidence and the habitats regulations assessment process should be applied appropriately and proportionately.

Government amendments to Part 3 include clarifying that both Natural England and the Secretary of State will take account of the best available evidence when preparing, amending or revoking an EDP. However, introducing legislative definitions of “scientific evidence” or “scientific justification”, as proposed by these amendments, needs careful consideration to understand the impact of such changes and to avoid the risk that we introduce unnecessary uncertainty and increased litigation in this area.

Dan Corry’s review, which we have mentioned in previous debates, also suggests a potential reform to the habitats regulations and how they are applied, while ensuring consistency with international obligations. I can confirm that we are looking at how to improve the operation of the existing habitats regulations. We are preparing updated guidance on the assessment process, and the noble Lord’s amendment rightly addresses the role that guidance can play in encouraging a proportionate application of that process. The noble Lord, Lord Lucas, may also wish to note in relation to his amendment that the guidance will make clear the flexibility that exists in order to screen out the de minimis effects where it is clear that there is no risk of harm to the integrity of the protected site.

I supported much of what the noble Earl, Lord Russell, said, and the approach that he suggested—that we need to be much more considered and take more time over some of this. We will of course continue to consider ways in which the operation of the habitats regulations can be improved, while protecting our most valuable habitats and species, at the same time as providing more certainty and an efficient process for developers. On that basis, I hope noble Lords will not press their amendments but continue to work with us on this important matter.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I am very grateful to the Minister for her summing up and the extra information that she provided, particularly the important clarity around NSIPs and Part 3. However, we have not yet got away from the central issue of how useful Part 3 is going to be for major infrastructure projects. I appreciated what she said on guidance, but, clearly, we need to go further in what is laid down in statute. Coming back to Amendment 350, we are talking about minor changes to the regulations, to bring us back to their original intent and to clarify the existing law. I certainly look forward to further discussions with the Minister and other noble Lords on this as we go towards Report. With that, I beg leave to withdraw the amendment.

Amendment 346DA withdrawn.
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Lord Hunt of Kings Heath Portrait Lord Hunt of Kings Heath (Lab)
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My Lords, tempting as it is to have a large-scale debate about nuclear energy, I do not think that noble Lords will want that. I broadly understand where the noble Baroness is coming from, and I am sympathetic to the thrust of what she is saying. However, I say to her and to the noble Lord, Lord Blencathra, that nuclear is part of the package. It is the essential baseload. We are going to be very reliant on wind and sun, and the whole thing has to be seen together.

We have this huge potential now. Hinkley Point C is making real progress. A final investment decision has been reached for Sizewell C. The noble Lord, Lord Blencathra, is right about the importance of the appraisal that GBN has undertaken, and government support for Rolls-Royce, and the announcement this week of the agreement with the US, which is twofold. The first point is regulatory alignment, which means, rather like in the pharmaceutical sector, that if one of the major regulators in the US, the UK, or Europe signs off a particular medicine, there is often mutual recognition. Clearly, this is important in meeting this point about reducing the amount of unnecessary bureaucracy in relation to regulation in future. The second point is on the announcement by a number of US companies, particularly from the west coast, who wish to invest in AI and data centres in the UK aligned to advanced modular reactors, which is fantastic news.

On the point made by the noble Lord, Lord Blencathra, I am sure Rolls-Royce is going to be in a very good position, but it has to be open to companies to invite other countries’ reactors as well. You do not want to put all your eggs in one basket in any case. The question then comes back to the issues we have been talking about recently as to whether the regulatory system we have collectively is going to be up to meeting this challenge. I commend a report published yesterday by Britain Remade, whose conference I happened to attend, which caused such offence to my noble friend. It is a very good report about the history of nuclear power development in this country. We had the lead once upon a time. We foolishly threw it away. We have a great chance to get back in at a substantive level, but at the moment it simply costs too much. There are various reasons: there is overspecification—we have heard that before—and there is slow resource-intensive consultation, planning and permitting. We have heard about the issues around some of the environmental protections, and there are various other reasons as well.

I wanted to ask my noble friend this. She knows that there is a Nuclear Regulatory Taskforce. It was set up under the auspices of the Prime Minister and the Chancellor. It gave an interim report in the summer. It is going to come back very soon with a substantive report, but the interim report spoke of,

“fundamental concerns about how regulation operates in practice, with the most prominent being that the system is perceived to be unnecessarily slow, inefficient, and costly”.

On the assumption that this report comes out within the next few weeks, will it be possible to use this Bill on Report as a way of trying to deal with some of the regulatory hurdles? I understand that my noble friend probably cannot answer that, first because the Government have not received the report, and secondly because they will have to consider how to do it, but I just express the hope that we might be able to use this Bill as a vehicle.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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Very briefly, I follow on from the point of the noble Lord, Lord Hunt of Kings Heath. I raised the point he just made in a question a week or so back. That is a really important point: to try and join the dots between the work ongoing with the regulatory task force and this Bill, because it is a prime opportunity to make the legislative changes that are required.

I certainly support the intent of the amendments that the noble Baroness put forward. To go back to the announcement on Monday, we are going to need nuclear in many more locations across the UK than the traditional nuclear sites. I chair an organisation called Midlands Nuclear, where we have been undertaking a siting study for where we can locate nuclear across the region in many non-traditional sites—for example, old coal-fired sites and gas sites. That is going to require a new approach to planning: how we take all these reactors forward, and the sheer number of reactors that were talked about in Monday’s announcement. I temper that by saying that, of course, we are going to need energy of all forms to get to net zero: more wind, solar, nuclear and gas storage. I highlighted some of the issues with wind in debate on the previous group of amendments. We need to think about how we do this more broadly in the planning system.

All these things need to be addressed, and this Bill is a crucial point where we can make sure that people have houses that they can healthily live in. We were talking about health before, and all the amendments in this group bring this together, so I really hope we are going to hear positive directions from the Minister. As I said, I am not attached to a particular way of doing this, but I think we need to hear a lot more. It is not just me saying that; the Committee on Climate Change too is asking the Government how they plan to deal with the overheating issue, particularly of residential buildings, though I remind noble Lords that it is not just residential buildings. Just across the road in Portcullis House in recent times, they have found that it is too hot for people to work in some of the offices over there, in a rather recently rebuilt building. I beg to move.
Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I declare my interests as a chief engineer working for AtkinsRéalis and as a director of Peers for the Planet. I thank my supporters on Amendment 127, the noble Lords, Lord Krebs and Lord Hunt of Kings Heath. I am very pleased to bring back this amendment, which I originally raised as part of the Levelling-up and Regeneration Act a couple of years back. The reason I am pleased to bring it back is that it is a reminder that we have made a lot of progress in this area over the last couple of years. Noble Lords may remember the great progress we made following ping-pong on the then Levelling-up and Regeneration Bill, when we started that process of embedding net zero and climate into our planning system.

Since then, we have had the updates of the National Planning Policy Framework, again embedding climate further into the system, which is already good progress, but as Ministers and noble Lords like to say, there is always more to do. Despite this progress, it is vital that the Government go further, because Peers from all parties across the House have worked extremely hard in recent years to embed our climate and nature goals across a range of sectors and regulatory regimes. That includes the health service, in the Health and Care Act 2022; our skills framework, in the IfATE Bill; Ofwat; the Crown Estate; and Ofgem, in the Energy Act 2022. It is vital that we take those same steps for our planning system, embedding this in statute, not only to help the Government deliver on their overarching climate and environmental goals but to support the 2030 electricity system targets and the target to build 1.5 million homes.

It is particularly important in planning, and the reason is that there are so many different issues to contend with when decision-makers are considering a planning application. Part of the problem is that lack of strategic guidance and direction on which factors are important; that is partly what is leading to paralysis in our planning system. In recent years, we have had legal challenges which have actually delayed sustainable homes being built for years—for example, the Salt Cross development in Oxfordshire—and we have had pushback on solar farms and other aspects of our electricity grid because of a lack of clarity in the planning system.

I am sure that when the Minister responds, she will come back to the NPPF, as I mentioned earlier, but many noble Lords have set out today in previous groups the limitations of relying on the NPPF. For example, the noble Baroness, Lady Willis, said that the guidance that has been there on green spaces for many years has just not delivered.

We really need the strength of a statutory duty in this area, because guidance in the NPPF is not future-proofed. It is only guidance and does not refer to our targets. It is also worth saying that, in the way we have structured the amendments, it is a statutory duty but it is worded around “special regard”, which is a well-tested legislative approach. It is not saying the environment must be considered, because there may be other material considerations that, on balance, override that, but it is saying that it should carry weight within the planning system. This perspective is fully supported by the recent Corry review undertaken for Defra, which says that Defra

“needs to find a way of ensuring clarity, from a spatial perspective, for how the multitude of nature and planning strategies come together in a way which local authorities and combined authorities can understand and deliver, in partnership with regulators”.

The duty would provide exactly that: a golden thread running through the whole town and country planning system to ensure that it delivers for our national goals. We heard earlier in the debate about the future homes standard, which is coming up in the autumn. This duty would complement and work with that future homes standard to make sure that our targets are delivered.

It is this simplification and clarity that is going to help the Government in their target to build those 1.5 million new homes. The House of Lords Built Environment Committee in 2022 stated:

“Local plans are currently too complex and detailed, which results in delays. Alongside introducing time limits on plan-making processes, the Government should produce standardised definitions and simplified guidance for local planning authorities. Simplification will also aid community engagement with local plans”.


Ultimately, that is helping local authorities and local areas deliver. It is all about the devolution of power because in many areas local authorities want to play their part, but they are being blocked—fundamentally because there is little integration and join up at a local level, whether that is local area energy planning, rollout or clarity in our planning system. This leads to an inconsistent approach—a patchwork quilt of responses across the many local authorities in terms of their approach to the environment and net zero. Again, a thread throughout the system would help fix that.

To summarise, this amendment would have important practical effect through ensuring that the town and country planning system delivers against the UK’s strategic objectives: 1.5 million homes that are fit for the future, unblocking and simplifying the system and, critically, giving local authorities the power to play their part, working in concert with the future home standard. Rather than the current piecemeal mentions of climate change and planning policy scattered through the legislation and the NPPF, there is a fantastic opportunity here for the Government to update the Bill to fully embed these targets within statutes and ensure that there is a coherent thread running through the whole planning system.

I have added my name to Amendment 180 in the name of the noble Baroness, Lady Bennett. For me, this is just another case in which there is work being done within industry, but we need a central function to co-ordinate these efforts and bring that consistency to reporting. However, I will not say any more at this stage.

Earl Russell Portrait Earl Russell (LD)
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My Lords, my Amendments 145B and 216 on overheating and climate change are in this group. This is an important group, and we generally support all the amendments that have been put forward.

We have just had the warmest summer on record—the warmest since 1884. Summer temperatures were 1.51 degrees above the long-term meteorological average and all five of the hottest summers have been since 2000. A summer as warm as the one we have just had is now 70 times more likely due to climate change. Obviously, continuous exposure to heat is a slow-motion killer and it is bad for our population. Our homes are not built—or fit—for the future, which is here now.

Buildings are responsible for over 40% of the energy demand in the UK. Some 80% of the buildings that will be occupied in 2050 have already undergone construction. Therefore, we must do more—all of us—to ensure that the homes we build and plan today are fit for the future. My Amendment 145B asks that, where a spatial development strategy includes provisions relating to housing, it also includes provisions for housing to meet recognised high efficiency and climate resilient standards, including but not limited to Passivhaus standards. This is with a view to reducing energy consumption, improving temperature controls and ventilations, particularly in response to extreme heat and contributing to our regional climate change mitigation and adaption objectives.

We have to do more. The Climate Change Committee has also been clear on these points. The UK will not meet its emission targets

“without near-complete decarbonisation of the housing stock”.

The houses we build are places of shelter. They need to provide long-term security, affordability, to be resilient and to cope in the warming climate. This is about asking simple questions about the houses we are building. Are they fit for the future?

Each new home that we build without proper standards leads to higher emissions, higher heating costs and greater vulnerability for those that live within them. Conversely, if we build to high efficiency standards, we can curb our emissions, reduce future retrofitting costs, protect families from the risk of heatwaves and reduce their energy bills.

The amendment refers to standards, particularly Passivhaus, but it allows flexibility; it is not restrictive, and it is not telling local authorities what they have to do, but it is for them to have regard to these things. Therefore, it is not prescriptive. We believe that is a good way of doing these things. It can save people money and give them a better quality of life. We think that this is a good amendment.

Amendment 216 proposes that every new home built in the country should meet a net-zero carbon building standard and be equipped with solar-powered generation as standard. I thank the noble Baronesses, Lady Young of Old Scone and Lady Jones of Moulsecoomb, and the noble Lord, Lord Grantchester, for adding their names. This not a radical measure; this is a reasoned, practical response, designed to support government policies which are either in development or are being developed but have not fully been put forward. Obviously, it covers exactly the same points. As we know, retrofitting is five times more expensive, which is just too expensive. We do not have the time, and we cannot afford to wait.

I acknowledge and thank the Labour Party for the work it is doing in this space. We look forward to the future homes standard and welcome the moves the Government are making on installing rooftop solar. There are various different strands and elements of policy that all need to come together. There is a warm homes plan, the overheating requirement that the Minister has referred to as well, and general building regulatory reforms around zero-carbon buildings. But a lot of these measures are either not here or not strictly laid down in planning law with the certainty that my amendment has.

While I welcome the measure the Government are taking, and I know there will be policies published in the autumn, I want to push the Government as to whether, when those policies come forward, they will have the level of certainty to meet the actions we need. My amendment hopes to solidify and support the work that the Government themselves are actively doing, and to strengthen some of those measures. My question to the Government is: if you are not supporting my measures, what certainty can you give us around the weight the measures you will put forward will have in law?

I give my support to Amendment 127, so ably spoken to by the noble Lord, Lord Ravensdale, and supported by the noble Lords, Lord Hunt of Kings Heath, Lord Krebs and Lord Grantchester. I will not speak to it for too long, but this is an essential amendment. As the noble Lord said, it puts a golden thread through this stuff. “Have regard to” is good wording. This stuff needs to happen. All too often, these issues are ignored or set aside and do not have the clear weight within planning law that they need to. Therefore, we welcome this amendment. This needs to change and it is a sensible and well-reasoned amendment.

I am in favour of Amendment 180, tabled by the noble Baroness, Lady Bennett of Manor Castle, which would introduce a carbon assessment, as required for larger developments. We are no longer blind to one of the most significant drivers of climate emissions. The construction sector is responsible for a quarter of the UK’s carbon footprint and that is set to rise. These emissions remain largely invisible within the planning system, and we need a proper system to take better account of them and to regulate them, so we also support this as a sensible amendment.

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Turning to Amendment 145B, it is vital—
Lord Ravensdale Portrait Lord Ravensdale (CB)
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I appreciate the Minister’s response and that he has highlighted a number of areas of planning policy where this is mentioned. But the point I was trying to make was that there is no central duty that is tying all those areas of policy together into a framework and having that thread running throughout the planning system. Does he agree that this is needed?

Lord Wilson of Sedgefield Portrait Lord Wilson of Sedgefield (Lab)
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It is something that we should look at. The warm homes plan, for example, which will be published in October—in just a few weeks’ time—will look at our approach to heating in homes and the mitigation that we need to implement for climate change. We are looking at this and everything will continue to be under review.

Earl Russell Portrait Earl Russell (LD)
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My Lords, I open this group of amendments, which are all on local energy plans; my amendment proposes to insert a crucial new clause after Clause 28 of the Bill. It would mandate that all local authorities and combined authorities must create a local area energy plan.

Considering the late hour, I will give a slightly condensed version of my original speech. I also express my strong support for the other amendment in this group, Amendment 177, tabled by the noble Lord, Lord Ravensdale, and supported by the noble Lord, Lord Hunt. This amendment would require the Secretary of State to publish vital guidance for local authorities on local area energy plans within 12 months of the Act being passed. To my mind, that is almost like the flipside of the same coin to what I am asking. The amendment that I have tabled and this amendment would work well together, complement each other and make each stronger than they would be without the other. From my point of view, it would be good if it was possible to progress both of the amendments in this group.

I do not really want to go into too much detail. Everybody knows what local area energy plans are. They are vital to devolving these tasks down to local authorities, including local people. They work really well; they are powerful. It is really good that we speak to and include local people and that they have a say, and it is good that we take account of local peoples’ needs and what is happening in local areas. It is good that we do this level of granular work on the ground and talk to local people. These plans are happening in some places: obviously in Wales, and there are some other places where councils are voluntarily doing these things, whether that is in London or other metropolitan authorities.

What does not exist in legislation is a mandated requirement for these things to be done or a mandated support to help local authorities to do these things. Were that to happen, it would help this Government to meet their environment and climate change targets. Frankly, I do not know how we got to where we are without having it in this Bill. I wonder whether that is purely just an oversight.

From my point of view, I stand ready to work with the Minister alongside the noble Lord, Lord Ravensdale. We would like to include this in the Bill. We feel that this would fit within the Bill, help to deliver targets, help us to get to where we need to be and help to empower our local authorities. I will leave it at that considering the late hour that we are sitting, but I genuinely think that this would help all round. I beg to move.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I speak to Amendment 177 in my name and declare my interests as a chief engineer working for AtkinsRéalis and as a director of Peers for the Planet. I thank the noble Lord, Lord Hunt, for his support for the amendment.

I start by saying that I completely agree with what the noble Earl, Lord Russell, just said. I view these amendments as very complementary in terms of local area energy planning. This has to be a staged approach. We first need that guidance set out for local authorities, so that we have a consistent approach to planning but, ultimately, we need a funded programme with funding available to local authorities to enable them to undertake these plans and get to the place where we need to be with the noble Earl’s amendment. Therefore, they are very complementary in that sense.

To add to what the noble Earl, Lord Russell, said, I put this amendment forward to the then Energy Bill a couple of years ago. It is worth reflecting on what we have seen so far in terms of the energy transition, which is a very top-down driven approach. However, we have seen some really good progress since the Energy Act. We have had the formation of the National Energy System Operator, the NESO. We have started to see that thinking about flow-down to regions and local areas, with the formation of the regional energy strategic planner role, the RESP.

However, there is a missing piece of the puzzle in terms of the flow-down to local areas: the bottom tier, which is what the local area energy plan fulfils. In terms of spearheading the transition, it is really important that we get this joined-up view of the governance system and that we have some guidance for local area energy plans. As the Minister knows, this is not a conceptual approach—it is a well-tested road. In fact, since the end of last year, these have now been rolled out and completed for all 22 Welsh councils. There is a funded programme, a technical adviser to ensure coherence in the Energy Systems Catapult and there is that guidance to ensure a systems approach. Now that they have that basis, there is then flow-up to their own national plan as well, which offers great benefits.

This amendment would put a duty on the Secretary of State to publish guidance for local authorities on local area energy planning and to clarify some of the criteria that should be included with any guidance. This is based on the Energy Systems Catapult guidance and includes how local area energy plans can contribute to meeting our net-zero environmental and adaptation targets.

I will briefly illustrate one of the reasons we need this. The pilots undertaken in the UK, in Newcastle, Bridgend and Bury in Manchester, divided each area into zones suitable for different types of heating technologies. The balance of technologies across the three areas shows how different areas can be. In Newcastle, the plan found that roughly half the homes could be heated by a heat network, in Bury it was less than 30% and in Bridgend it was 15%. In Bridgend, a far higher proportion of homes would need to be heated with high-temperature heat pumps to save on the extra expense of retrofitting insulation in its poorer-quality housing stock.

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Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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I appreciate the noble Earl’s contribution, but I politely disagree in that there is a lot of advice and support from local net-zero hubs funded by DESNZ. I understand and sympathise with what he is saying. We have all said today that we want to get moving as fast as we can, in a speedy manner, and to grow. This is all part of the agenda. We want to make sure that we get things right, be concise and have the right level of engagement and consultation, to ensure that when we have the clear plan moving forward it is well understood and implemented and does not have unintended implications or consequences.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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I want to complement what the noble Earl just said. A couple of years back, when I raised this as part of the Energy Act 2023, I remember being given a similar response: this was still being considered by the Government as part of how it would fit into the bigger picture. But I think the Government need to recognise the real importance of that governance-level flow-down from national to regional to local, the importance of local understanding in this picture and the real priority that needs to be placed on developing this guidance and strategy for local areas to take it forward. I hope the Minister will reflect on that.

Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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I take note of the noble Lord, Lord Ravensdale, complementing the noble Earl, Lord Russell, and I recognise that there is a lot of work to do. I appreciate that the noble Lord has raised this before, but now we actually have a Planning and Infrastructure Bill which will very much fix the foundations of the whole growth to net zero and clean energy 2030.

My final and important point on this is that now is not the right time because we do not want to put further burdens on local authorities while we are still developing and finalising our energy planning. That is still under development, but I reassure the noble Lord that we are on it. We want to make sure that this happens as fast as possible, and this Bill will help us to change a lot of the infrastructure, thinking and systems in place in order for our country to grow.

Lord Banner Portrait Lord Banner (Con)
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I tried with my proportionality clause, which we will come to later in the proceedings. That is the best I can do so far; I am toying with tweaking it so that if it were to find its way on to the statute book, the Secretary of State would have the ability to publish statutory guidance on how to give effect to it. But, to echo what the noble Lord said before, if proportionality was spelled out in neon lights in legislation, it would send a message to everybody—consultees, consultants, applicants, decision-makers, the courts and the public—that less can be more. To my mind, that is a fundamental way of furthering the objectives of the Bill.

Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I declare my interest as a chief engineer working for AtkinsRéalis.

I support what the noble Baroness, Lady Pinnock, and the noble Lord, Lord Hunt, have set out around the purposes of the Bill, and in particular what the noble Lord, Lord Hunt, said about putting growth front and centre.

It is important to set out a bit of broader context here, because this goes all the way back to 2008. In the decades before 2008, we had that consistent 2.3% labour productivity growth over many years, but since then, that productivity growth has fallen off a cliff, with only around 0.5% per annum growth since then. That then feeds through into flat real wages. Again, there was a 2% growth in real wages for decades, but they have been flat since 2008, which has led to all those problems with debt, tax take, the NHS, and even the political problems—the frustrations of those who have been left behind.

Of course, growth is a complex picture, as are the reasons behind that slowdown in growth, but our inability to build enough productive infrastructure to invest in that is very high up on that list, whether that is new infrastructure to bring down the price of electricity; new transport infrastructure, with all the agglomeration benefits that come with that; or new digital infrastructure.

We can contrast what is going on elsewhere in the world—to expand on what the noble Lord, Lord Hunt, said—with electricity. China has gone from 6,000 to 10,000 terawatt hours of electricity generation in the past 10 years, whereas our electricity generation has been flat or even declining slightly, at only around 300 terawatt hours. That of course has many other implications: the cost of our electricity, which is around four times that of the United States; the knock-on effects of that to inward investment; and circling back to growth as well. Even if we look at the Government’s targets, such as the 2030 target for clean electricity generation, the amount of electricity infrastructure that we need to build to hit that target is far below what we need to hit to get to 2030, and of course that will have effects on net zero and on energy security as well.

The planning system is at the heart of this, with the key issues of judicial review and environmental regulation, which are being addressed to some extent in the Bill. But, circling back to growth, that needs to be front and centre. It is vital that the Bill delivers for critical infrastructure as well as houses, so that purpose clause which sets that out front and centre in the Bill is vital, with all the benefits it will bring for net zero, the environment, and energy security, and resolving those broader issues of net debt, government spending and quality of life.

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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My Lords, I will speak to Amendment 1 in the name of the noble Baroness, Lady Pinnock, and I thank her for explaining the basis of her approach so clearly. I was not able to speak at Second Reading but I have an interest in planning, going back to the 1980s, both in government and in business, and one of my most rewarding experiences was as chair of the Built Environment Committee before I joined the Front Bench.

I am not sure it is strictly relevant, but I am the joint owner with my brother and sister of a cottage and a couple of fields in agricultural use in an AONB in Wiltshire, this is declared in the register.