Planning and Infrastructure Bill

Debate between Lord Roborough and Baroness Pinnock

Committee stage
Wednesday 17th September 2025 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, these Benches totally agree with the two amendments tabled by the noble Baroness, Lady Young of Old Scone, because the depth and range of the changes encompassed in this Bill are significant and substantial. Throughout the Bill are references to the regulatory changes that will be made in secondary legislation; therefore, it is vital to retain understanding by the communities that are going to be affected and to help them with transparency on what the Government are doing to keep them on side rather than in complete opposition, at every turn. If, as the noble Baroness, Lady Young, proposed, there is super-affirmative secondary legislation, the details of those changes could be properly scrutinised in draft form and then through the affirmative process. That seems an important route to take.

I am grateful to the noble Baroness for raising this and hope that the Government Benches, for once in this Bill, as we approach the end, will give us the affirmative nod.

[Lord Roborough (Con)]

My Lords, we support these amendments tabled by the noble Baroness, Lady Young of Old Scone, and my noble friend Lady Coffey. I will start with Amendment 356 in the name of my noble friend.

I am sure it was not lost on the Minister that, when she informed your Lordships that the Secretary of State for MHCLG would be the directing and reporting SoS for Natural England on the nature restoration funds and EDPs, there was a huge collective intake of breath. What a sigh of relief it was this morning to hear that this had been reconsidered. I would be most grateful if the Minister could indicate the circumstances under which it may not be the SoS for Defra, as she mentioned earlier.

The amendments in the name of the noble Baroness, Lady Young, Amendments 351A and 351B, seek to ensure that the super-affirmative procedure is adhered to for any regulations to amend existing acts or assimilated law under Section 89(2). A super-affirmative procedure would result in both Houses having the opportunity to comment on proposals put forward by the Minister and to recommend refinements before amendments are tabled in their final form. I am sure that all noble Lords are of the firm belief that scrutiny of legislation and delegated powers are important principles and a staple of any democratic system. I therefore very much welcome the spirit of the amendments and look forward to the Government’s response.

Planning and Infrastructure Bill

Debate between Lord Roborough and Baroness Pinnock

Committee stage
Monday 15th September 2025 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, this amendment relates to removing—or “disregarding”, to use the legislative term—hope value from recreational land that is to be purchased for public use.

The principle of hope value was debated at length and in detail during consideration of the then Levelling-up and Regeneration Bill in your Lordships’ House. It was agreed by the Government of the time that hope value could be disregarded by acquiring authorities for a number of purposes—including for schools, for example. However, hope value for public recreational uses was not included in the list of categories where hope value could be disregarded.

So Amendments 209B and 209C in my name seek to add the disregarding of hope value by acquiring authorities into the legislation. The reason for that is fairly straightforward and obvious. On a previous day in Committee, we had a debate on the importance of recreational land. My noble friend Lord Addington and the noble Lord, Lord Moynihan, made a strong case for better planning and more openness to planning applications for sporting use. These two amendments seek to add to that.

The importance of the availability of public recreational land cannot be overstated. In days gone by, children could go out of their front door and play in the street without risk. Now that is not possible because of the obvious influx in terms of every household having a car. So, in order for them to play outside, children have to be taken somewhere. If there are not enough “somewheres” to go to—somewhere to kick a ball in a local recreation area; a park, somewhere to go and walk round a lake; or somewhere to play on playing equipment that is provided—it is a huge loss to the development of young people.

Sport, such as the World Athletics Championships—I am an athletics fan, although I could not get to Tokyo—is really important to this country, so it is important that all children have opportunities for play. If local authorities wish to extend the use of recreational areas, it is best if the cost of that land is not added to by hope value.

Those two simple amendments have the same purpose: to enable local authorities to buy land for recreational use without hope value attached to it. I look forward to hearing about the other amendments in this group, and will respond to them when I reply to the Minister. With those short but, I hope, strong messages showing that this is an important issue, I beg to move.

[Lord Roborough (Con)]

My Lords, I shall speak to Amendments 210 and 211 in my name and Amendment 227G in the name of my noble friend Lord Sandhurst. I refer the Committee to my register of interests, as I have previously disclosed on this Bill.

When we say that the Conservative Party is under new management, we mean it. We are rightly proud of much of the work that went into the Levelling-up and Regeneration Act 2023, but we are also clear about areas where improvement is needed. I have tabled Amendment 210 to address one such issue, an issue that sits uncomfortably with our core principles of property rights and fair compensation. We believe deeply in the right of individuals to own property, and that such ownership should not be disturbed lightly. When it is, compensation must be fair and transparent and reflect the true value of what is being lost. That includes hope value.

Hope value is not a vague or abstract notion; it is a well-established component in the valuation of land and property, used not only in sales but in inheritance tax assessments and a wide range of commercial transactions. It reflects the possibility that land might in future obtain planning permission for a more valuable use. It is the very element that allows developers and others to bring forward land for development, persuading reluctant landowners to sell by recognising the future potential of their land.

To disregard hope value is to ignore how the market works. It risks undermining confidence in the land market and creating new barriers to development rather than removing them. The valuation methodologies underpinning hope value are well understood, professionally governed and economically rational. They are consistent with option valuations in financial markets, although I am not sure they go so far as to use the Black-Scholes option pricing model.

If a site has no realistic prospect of future development, its hope value will naturally be nil or negligible. However, where a site has a reasonable expectation of future change in use, reflected in prices agreed between buyers and sellers, we must ask why the Government or local authorities should be entitled to disregard that. In doing so, they risk ignoring market signals and distorting resource allocation. If the market values a piece of land as having the future potential for residential development but the authority wants to use it for a different, potentially less efficient use, that should prompt reflection, not concealment.

In a helpful Written Answer following Second Reading, the Minister set out the intended application of these provisions. That response included reference to land for educational and health purposes but also to housing, and not necessarily affordable housing. That gives little comfort. The noble Baroness, Lady Pinnock, has moved her Amendment 209B, which seeks to expand this to recreational facilities. Needless to say, we do not support that.

We are told that the powers will be used to support affordable housing schemes, but in practice the drafting is broad, the safeguards are weak, and I see no mechanism that protects landowners should the purpose of the CPO change after acquisition. Could the Minister clarify? Would these provisions still apply if the land were no longer used for the original purpose stated in the CPO? Clear guidance—or, better still, an amendment to the Bill—could help to avoid costly litigation in the years to come.

The Minister’s letter also cited examples where removing hope value might help to bring forward certain sites, such as brownfield land where viability is an issue, infill plots, and allocated sites that have not yet come forward, but that analysis does not hold. If viability truly is an issue, the hope value will already be low or nil, and on infill or allocated sites it is not the price that delays development but the length and complexity of the planning process and the delays caused by responses from statutory consultees and agencies.

I hope I have persuaded the Committee that removing hope value does not unlock land or accelerate housing delivery. On the contrary, it undermines property rights, weakens trust in the planning system and may ultimately deter landowners from bringing land forward.

--- Later in debate ---

[Baroness Pinnock (LD)]

My Lords, the noble Baroness, Lady Young, has made the point that we on these Benches would wish to make.

[Lord Roborough (Con)]

My Lords, I speak in support of Amendment 214 in the name of my noble friend Lord Hodgson of Astley Abbotts and thank him for bringing forward what is, I believe, a thoughtful and timely intervention. The amendment seeks to ensure that the Government provide annual updates on agricultural land lost as a result of the Bill, along with any consequent risks to the UK’s food and water security.

We have heard, both in and beyond this Chamber, growing concern about the pressures being placed on agricultural land—particularly the cumulative effect of development, including infrastructure and renewable energy projects, on land that has long supported our domestic food production. This is not an abstract concern. Recent debates around the siting of solar farms on high-grade best and most versatile agricultural land have brought this issue into sharp relief. Although renewable energy is vital for our long-term sustainability, it must not come at the cost of food security.

Food security is a strategic national interest. The experience of recent global shocks, from the pandemic to the war in Ukraine, has reminded us just how important it is to maintain a strong, resilient domestic food supply. Once high-quality agricultural land is lost to development, it is not recovered. We must therefore be careful stewards of this finite resource, particularly the best and most versatile land, as my noble friend Lord Fuller pointed out.

My noble friend’s amendment rightly presses the Government to monitor and report on these risks with due seriousness. The principle of ensuring that we do not undermine our food and water security through planning reforms is one that I believe all sides of this House can support. If I may provide some reassurances to my noble friends, global food production has grown at 0.7% on average per annum for decades, in line with global population growth. That is on stable acres, with lost acres in some regions of the world balanced by other regions, such as Brazil. Acres of land that are lost in this country to development are most likely being replaced by the Cerrado, and possibly even rainforest, being cleared in Brazil. There is a serious leakage issue when we lose our agricultural land. On that, I highlight my register of interests, including as a shareholder of SLC Agrícola in Brazil.

I look forward to the Minister’s response to this amendment and to hearing how the Government intend to safeguard these critical national interests as the Bill progresses. I also support the comments of the noble Baroness, Lady Young, on the land use framework.

Water (Special Measures) Bill [HL]

Debate between Lord Roborough and Baroness Pinnock

Committee stage
Monday 28th October 2024 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I will address my comments to the amendment in the name of the noble Lord, Lord Cromwell. I agree with him that financial restructuring of companies has led us to where we are now, with Thames Water potentially on the brink of collapse—who knows who is going to have to fund the huge injection of capital that has apparently now been agreed. Other water companies are heavily indebted. Ofwat, which is after all the economic regulator, did not query, question or challenge those decisions made in the early years of water company privatisation.

The consequence is that anything the Government now attempt to do is basically closing the stable door after the horse has bolted—and raced to the other side of the world—because the companies are where they are. Although I agree with the noble Lord, Lord Cromwell, that any future restructuring ought to be put under the microscope of the economic regulator, the current situation is leading us to a potentially very grave position, which the Government are trying to address with the other financial clauses in the Bill. I read the clause referenced by the noble Lord, Lord Remnant, as being directed pointedly at a particular water company.

I support the amendment moved by the noble Lord, Lord Cromwell. I suppose it is better to change the situation now than leave it as it is, but what has happened already is unfortunate.

[Lord Roborough (Con)]

My Lords, Amendment 92 is very simple. Had it been in place when the water companies were privatised, it would have prevented the aggressive financial engineering that has led to the financial distress we see regularly reported in the press, which has provoked much anger in this House and elsewhere over the years.

Before I address Amendment 92, I will briefly comment on Amendment 10 moved by the noble Lord, Lord Cromwell. It coexists neatly with my amendment, allowing regulators to be better informed on issues with the financial structures of the companies they regulate, and to be aware of future problems. I am pleased that the noble Lord has moved this amendment, and I broadly agree that the regulator should have better information about the financial structuring of water companies in the interests of protecting their viability and preventing circumstances in which they become overleveraged.

I will speak to the dangers of overleveraging and the problems we have as a result of the weakness of the regulator, but we on this side of the Committee are interested in the amendment moved by the noble Lord, Lord Cromwell, which takes a fairly moderate step towards having a better-informed regulator. That said, it may be possible to go further, either by reforming the way the regulator works in the water sector or, as I propose in Amendment 92, by implementing statutory rules on borrowing for water companies and taking effective steps to prevent capital being taken out of companies that are overleveraged. We need to make the water sector attractive to investors so that they bring more capital into it to fund investment in cleaner and better water infrastructure.

I add my whole-hearted support to the amendment proposed by my noble friend Lord Remnant. It seems grossly unfair that a company that has behaved responsibly should be penalised by the actions of another in the sector. I am aware of precedent in the financial services sector, but that is to protect the integrity of the financial system, which is in all participants’ interests. In this case, each water company is a unique entity whose actions have little or no impact on others. Without this amendment, one bad actor could contaminate the industry.

I add my concerns about the wording that my noble friend Lord Remnant seeks to remove from the Bill. This new subsection as drafted applies the duty to render “relevant financial assistance” to any other company that holds, or held, an appointment under this chapter. This seems to me yet another example of retroactive effects that are littered throughout the Bill and which we will discuss in later groups. Could the Minister explain to the Committee what the Government’s intention is with this retroactive element in the Bill? Will there be a maximum period of time since the relevant company held an appointment for this duty to apply to it? This seems to us to be a concerning power, and we would seek clarifications from the Minister on both the unfairness at the core of this subsection and its retroactive element. I thank my noble friend Lord Remnant for introducing his amendment, and hope that he continues to make progress on this unfairness which exists in the Bill as drafted.