Planning and Infrastructure Bill

Debate between Lord Ravensdale and Baroness Hayman of Ullock

Committee stage
Wednesday 17th September 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

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 (CB)]

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.