Office for Environmental Protection

Lord Benyon Excerpts

Tuesday 23rd January 2024 Lords Chamber

[Lord Krebs]

To ask His Majesty’s Government what assessment they have made of the second annual progress report of the Office for Environmental Protection, published on 18 January.

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, I refer to my interests as set out in the register. This Government are committed to leaving the environment in a better state than we found it. The Office for Environmental Protection’s report covers the period from 1 April 2022 to 31 March 2023. This includes the first two months of the 2023 environmental improvement plan and our new long-term environmental targets. The OEP’s 200-page report recognises the scale of ambition in the EIP 2023, including our challenging interim targets. We will study it carefully and respond in due course.

[Lord Krebs (CB)]

I thank the Minister for his response. When Dame Glenys Stacey, the chair of the OEP, launched her report last week, she said that the OEP’s job was to hold up a mirror to the Government for them to assess their progress. I am afraid to say that the view in the mirror was not a pretty sight. As was mentioned in yesterday’s Oral Question, the OEP concludes that the Government are largely failing to meet the statutory and other targets they have set for environmental improvement. The Government’s response seems to be either to reject or to reinterpret what the OEP said. Would it not be better to acknowledge what the OEP has said, recognise that things are not necessarily going as well as they should, learn lessons and try to adopt a different tack?

[Lord Benyon (Con)]

I absolutely concur with the noble Lord in that we treat anything that comes from the OEP very seriously. I seek to reassure noble Lords that it is not our position to dismiss it in any way. As I said in my original Answer, the report refers to just two months of the environmental improvement plan, which sets out some very demanding targets and holds the Government to account for them. The noble Lord and I are meeting next week, when I will set out some of the things we are doing as a result of the EIP and other measures. I think he will be reassured that the report that looks at a full year of the EIP’s implementation will show the Government’s ambition and how we are responding to reasoned criticism and being held to account by a very well-led organisation.

[The Duke of Wellington (CB)]

My Lords, I commend the report from the Office for Environmental Protection. I quote from it:

“The current state of the water environment is not satisfactory … the pace of change has now stalled”.


Will the Minister and his ministerial colleagues consider setting up a review of the way the water companies are regulated? Regulation is currently divided between Ofwat, as the financial regulator, and the Environment Agency, as the environmental regulator. Would it not be better to have a single regulator?

[Lord Benyon (Con)]

I thank the noble Duke for his question. The report the OEP produced was for the year up to the end of March last year. In April we published our plan for water, which addresses many of the points the OEP raised. Of course, since then we have had the announcement of the large investment in water quality that we are requiring water companies to make. His point is interesting, and I have considered over many years whether we could have a better landscape of regulation of our water industry. What I want to urge is that there is an urgency about trying to tackle the problems. We have set ourselves very important targets, and if government were to indulge in navel-gazing over many months in trying to create a new body, we would miss our really important 2030 target, which Ministers are concentrating on.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, we all have huge respect for the Minister—even I do —but he keeps repeating the same thing from the Government. Clearly, the report is not happy. It says that this is deeply concerning, adverse environmental trends continue and:

“Government must speed up … its efforts”.


Are the Government going to speed up their efforts?

[Lord Benyon (Con)]

We have a real sense of urgency in the department; it does not just stop at Ministers but goes right down through the agencies that are the delivery bodies for this. We could double the size of Natural England and the Environment Agency and we still would not hit the targets if we were not weaponising the most important people in terms of improving the environment: the people who control and manage the land. Completely changing how we support farming, from an area-based system to one that is improving nature and incentivising and rewarding farmers, is just one part of what we are doing. I have great respect for the noble Baroness as well, so I say to her: come in to Defra and sit down. I will take her through the most ambitious plan for our environment that this country has ever seen.

[Lord Cromwell (CB)]

In answering a recent question in this House, the Minister introduced us to a very interesting category of person, and he has just done it again: the weaponised land manager. Looking at my register of interests, I think I might be one, and therefore I will put a question to him. I spent last month bouncing back and forth between officials who deal with Countryside Stewardship and the sustainable farming initiative, both worthy causes. There is a great deal of passing back and forth, confusion and lack of unity. When will we get a unified scheme so that environmental warriors such as me can actually deliver?

[Lord Benyon (Con)]

The noble Lord is a weapons-grade guardian of the countryside, and I want to make sure that people like him find it really simple and straight- forward to apply for the sustainable farming incentive. It is probably the best 20 to 40 minutes of a farmer’s year, and it compares and contrasts so well with the complications of systems in the past. It is fairer: more than 50% of area payments went to the biggest 10% of farmers; these are systems that improve smaller farmers as well. We are also unifying, to use his word, the system that allows people to apply for Countryside Stewardship and sustainable farming incentives, and the RPA is doing that today.

[Baroness Hayman of Ullock (Lab)]

My Lords, like the noble Baroness, Lady Jones, I recognise the Minister’s personal commitment to protecting the natural environment, but yesterday he rightly observed that you cannot meet 2030 targets if you start acting only in 2029. He has talked about important schemes that have already got off the ground, but yesterday the noble Baroness, Lady Boycott, provided a lengthy list of examples of where there has been little or no visible progress. Can the Minister provide a timetable for the announcements of regulations that are going to be brought forward during the remainder of this Session, so that both this House and the OEP can see where and when this progress is going to be made?

[Lord Benyon (Con)]

The noble Baroness, Lady Boycott, raised the issue of peat. The England Peat Action Plan committed us to restoring 35,000 hectares of peat-land by 2025—which is fairly soon—through the nature for climate fund. Through the net-zero strategy we are also committed to restoring 280,000 hectares of peat by 2050. We will bring forward legislation this year to ban the use of peat in horticulture. That is just one area that the noble Baroness, Lady Boycott, raised. I also draw her attention to our 34 new landscape recovery projects, which show that we are on track to have 70% of land in environmental land management schemes by 2028. This is progress and has real benefits to our environment on the ground.

[Earl Russell (LD)]

My Lords, launching the annual assessment, the chair of the OEP said that

“government’s plans must stack up. Government must be clear itself and set out transparently how it will change the nation’s trajectory to the extent now needed, in good time”.

We do not yet have that clarity or transparency. What action will now be taken to meet the key delivery plans, the interim targets, and to implement an effective monitoring and evaluation learning framework?

[Lord Benyon (Con)]

The noble Earl probably missed what I said earlier about the fact that this report covers just two months since the announcement last January—a year ago—of the environmental improvement plan. In a year’s time, he will be able to see how we are doing against that through the next report, in the summer. Through the Environment Act, noble Lords on all sides were rightly keen to ensure that there is an accurate monitoring and reporting system. These are not state secrets; this is 800 pages of data that we can share that underpin the targets that we produce in that plan. We are committed, through parliamentary processes and through the OEP, to report on those monitoring methods. We will continue to do so in an open and transparent way.

Iran (Sanctions) Regulations 2023

Lord Benyon Excerpts

Tuesday 23rd January 2024 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Iran (Sanctions) Regulations 2023.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, this instrument contains measures to deter the Government of Iran, and groups backed by Iran, from conducting hostile activity against the UK and our partners. It was laid on 13 December 2023 under powers in the Sanctions and Anti-Money Laundering Act 2018. The measures entered into force the following day. The instrument has been considered and not reported by the Joint Committee on Statutory Instruments.

The Iranian regime poses a clear threat to the UK and our partners, with hostile acts ranging from assassination plots to significant support for armed groups. The new legislation provides sanctions powers to respond to this appalling behaviour. We can now introduce sanctions designations in relation to Iran’s hostile actions in any country. It could be used in response to Iranian support to Russia, destabilising conduct in the Middle East or hostile acts in any partner country. We can use these powers where acts are perpetrated by Iran or by armed groups backed by Iran.

Since January 2022, the UK has identified at least 15 threats emanating from Iran to the lives of UK-based individuals. This is totally unacceptable. Furthermore, Iran continues to destabilise the Middle East through its development and use of weapons, along with support for groups such as Hamas, Hezbollah and the Houthis.

Our priority is the safety and security of the UK, the people who live here and our international partners. That is why we have taken action, using this legislation, to sanction the head of the Islamic Revolutionary Guard Corps Quds Force, Esmail Qaani, and other senior IRGC figures involved in Iran’s long-term support to Hamas and Palestinian Islamic Jihad. We will not stop there. For as long as Iran continues to threaten the UK, our interests and our partners, we will respond firmly and decisively. We will use this legislation as a key tool within the broader diplomatic approach aimed at deterring Iran.

Sanctions are particularly effective when imposed alongside international partners and combined with other diplomatic tools. For example, following the murder of Mahsa Amini, a 22 year-old Iranian woman, we sought to expose the extent of Iran’s abuses on the international stage, including at the UN Human Rights Council. This was accompanied by regular sanctions designations co-ordinated with partners including the EU, the US and Canada. We delivered a clear message of international condemnation while holding those responsible for human rights abuses to account through sanctions.

I turn now to trade measures, the other substantive addition made by this legislation. Iran continues to expand its drones programme and is sending them to Russia to use against Ukraine. We have already sanctioned a range of entities and individuals involved in the provision of Iranian drones to Russia, using the existing Russia sanctions regime. However, drones are also a feature of Iran’s hostile activity beyond Ukraine. This legislation imposes new restrictions on the Iranian regime’s drone programme, targeting UAVs and their components, which is crucial to its collaboration with Russia. It draws on knowledge of the Iranian drones deployed in Ukraine and elsewhere. The trade restrictions strengthen our existing export controls on drone components, ensuring that no UK business or person, wherever they are in the world, can facilitate the trade of these items.

This legislation also maintains existing trade measures on goods and technology that might be used for internal repression, such as riot shields and water cannons, and on goods, technology and services that may be used for interception and monitoring. This will ensure that the UK plays no part in enabling the Iranian regime’s trampling of human rights. We strongly support the right of the Iranian people to freedom of expression and assembly.

The legislation maintains our unwavering support for human rights in Iran. The regime continues to treat women and human rights defenders with contempt, executing eight people in 2023 for their participation in the “Woman, Life, Freedom” movement. The recent death of Armita Geravand, a 17 year-old Iranian girl, after an alleged assault by the morality police shows the brutal reality of life for women and girls in Iran. Since October 2022, we have sanctioned 95 individuals and entities responsible for violating human rights in Iran. The Iran (Sanctions) (Human Rights) (EU Exit) Regulations have been revoked and designations made under those regulations are saved under the new regulations, allowing us to continue to hold the people and institutions responsible to account.

These new regulations demonstrate our determination to target those responsible for Iran’s malign activity. They maintain our commitment to human rights law, allowing us to hold to account those in Iran who fail to uphold and respect them. We will continue to work with like-minded partners to disrupt, deter and respond to threats from the Iranian regime and co-ordinate sanctions action. These regulations send a clear message to the Government of Iran and those who seek to harm the UK and our partners. I beg to move.

[Lord Purvis of Tweed (LD)]

My Lords, these measures go beyond the human rights sanctions already in place, as the Minister has said, and are now much broader in their scope and, potentially, their depth. They address Iran’s regrettably growing internal oppression and external aggression. I support the measures and am grateful to the Minister for the clear way that he introduced them.

The noble Lord, Lord Collins, and I have debated Iran on a number of occasions in Grand Committee and the Chamber. The fact that its activities at home and abroad warrant debates in this House is testimony that the United Kingdom has considerable interest in ensuring the safety of our nationals, both at home in the UK and abroad, as well as that of our allies. It is regrettable that these measures need to be in place. As they are broader, deeper and country-wide and could set precedents for other areas, it is right that they be scrutinised. I wish to ask the Minister a number of questions. I fully understand if he cannot answer them today but I would be grateful if he could write to me.

As the Minister said, the context of the repression is the reprehensible persecution and oppression of women and young women in Iran by both the morality police and the judiciary, which cannot be considered free and independent. I would be grateful if he could outline the interaction between those bodies that are now open to sanctions within the police and the revolutionary guard and, as human rights measures are to be put in place, their interaction with members of the judiciary. We have seen all too frequently in Russia and Belarus how judiciaries are now completely captured by regimes and are not independent arms. Can the Minister clarify whether members of the judiciary will also be covered by these measures?

I asked a broader question at the outset about women and girls. I have raised the point repeatedly in the Chamber and to the noble Lord, Lord Ahmad. There had been opportunities for those persecuted to seek refuge in the UK through asylum routes, but there is now no longer a safe and legal route for migration to the UK for Iranian women seeking asylum. This was highlighted in a Home Office report just a number of days ago. Can the Minister write to me about what safe and legal routes exist beyond that offered by UNHCR, which is not a comparable direct route?

We know that Iran often operates not alone but with other countries, through proxies or with other state entities. The Minister was clear that these sanctions will cover Iran’s activities in other countries. What are the consequences for those countries facilitating them? What sanctions can be applied to those bodies that effectively provide proxy support?

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[Lord Collins of Highbury (Lab)]

My Lords, when the Foreign Secretary made the announcement on these sanctions, we had an opportunity to repeat his Statement in the House. I do not really want to repeat everything that I said then.

We very much welcome these actions, in particular the co-operation with other states. I totally agree that, for sanctions to be effective, we must work in conjunction with others—certainly the US, Australia, New Zealand, Canada and the EU. I have no problems with that. However, at the time, I asked that we not limit ourselves to those countries. I asked the noble Lord, Lord Ahmad, what we are doing to ensure that we get broader co-operation on these sanctions, not least with some of the Commonwealth members that could have an impact here.

As the noble Lord, Lord Purvis, indicated, we have discussed and raised the human rights abuses mentioned by the Minister. One area that we are particularly concerned about is the attacks on freedom of speech and the operation of journalists, not least the impact of this on the BBC World Service and the people who work for it—including the threats that have been applied to the families of BBC World Service employees. It would be good if the Minister could mention that—in particular the activities of this rogue state in threatening our citizens, not only abroad but here—in relation to how we will co-operate across Whitehall in addressing these issues. It is important for us to be reassured on that point.

We very much welcome the regulations and their broad nature. We are certainly committed to supporting any efforts to contain Iran and counter its efforts to sponsor terrorism across the globe, not least in supporting the Houthi terrorists operating in Yemen.

There is another question. I will not repeat the questions asked by the noble Lord, Lord Purvis—particularly on the operation of licences, which we have raised before. I totally understand why the conventions that we are signed up to permit that but it would be good to have a detailed explanation. However, one thing I have raised is this: while it is one thing to designate sanctions and agree with other countries about designating them, they must be effective. What I mean is, what are we doing to ensure that we can see the evidence that the Government are actually prosecuting sanctions evasions? People may not realise that there are consequences for evading the sanctions but may face severe consequences, so I would be particularly keen to hear how we are supporting actions to chase people who evade or seek to evade sanctions, or even offer services to facilitate their evasion. These are really important areas.

Of course, we then have the issue of the sunset sanctions from the JCPOA. What are we doing there? These regulations are part of that but what are we doing to beef up some of the designations of Iranian targets? It would be really important to understand that. With those brief comments, I reiterate our support for these regulations, as we did in December.

[Lord Benyon (Con)]

I thank both noble Lords for their questions and their support for this measure. I want to address the important issues that they raised.

The noble Lord, Lord Purvis, asked about the judiciary. He is absolutely right that the judiciary in Iran is not independent. It is an agent of the state and its members are part of the architecture of that state, which has caused some of the grossest human rights abuses. They are available to be sanctioned. We have sanctioned members of that judiciary and will continue to do so as and when we get evidence to support doing that. He also asked about safe and legal routes. We are always looking at this issue. It is obviously a responsibility of the Home Office, with which we work closely; we also work internationally to make sure that safe and legal routes exist. I am very happy to give the noble Lord a more detailed briefing on that.

The noble Lord is absolutely right about the proxies and other states, individuals and companies through which the Iranian Government operate. We work with the EU, as well as with our partners in the US, Canada and many other countries, to try to ensure that a comprehensive regime exists. The Secretary of State can take urgent action under our sanctions regime to replicate sanctions that are implemented by the US and Canada. We will certainly take that action as soon as it is required, and can do so at great speed. Very often, the information comes out in relation to a particular incident or individual, and sometimes that requires speedy action. The Foreign Secretary and the Government are happy to move quickly on that and keep noble Lords informed about what we are doing.

The issue of facilitators is perhaps more relevant to the next SI but it is absolutely right that the noble Lord raised it. Unlike Iran, we are a free country with independent institutions, such as the judiciary. However despicable an individual’s acts, whether the crime is a murder or whether, in a case such as this, an individual feels that they have been wrongly sanctioned, they must have the ability to be supported by the legal system. No one argues with that; where we have a problem is with some people who have made a lot of money out of dirty money coming into the UK. We want to ensure that they are given the full glare of publicity and are understood to have been part of the problem.

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[Lord Purvis of Tweed (LD)]

I thank the Minister; he has been very generous in responding to our points. I am still a little unclear with regard to the issue of Crown dependencies and the overseas territories when it comes to some of the shipping aspects. I would be happy for the Minister to write to me about this. I hope that I am not correct that, while a sanctioned individual and, therefore, vessel, would be prohibited from landing in UK waters, it would be able to land in the waters of overseas territories or Crown dependencies. This would be very attractive to that potential vessel, especially to individuals or an individual’s vessels. As I said, I would be happy if the Minister could write to me to clarify that point as I was not entirely sure of his response.

[Lord Benyon (Con)]

I entirely accept the noble Lord’s point. I want to give myself the clear comfort that he seeks. It is not the case that a vessel or an individual not allowed into United Kingdom waters or ports, or to receive refuge in any form, can then go to a Crown dependency or overseas territory and get access. What I hope I said was that these measures cover all our overseas territories and Crown dependencies. However, I will write to him because I want to make absolutely certain that we are being clear.

I have been seeking inspiration for that reply and have now received a note; I may be able to avoid writing him a letter. There is an overseas territory order that applies on legislation. The UK sanctions regime applies in all United Kingdom overseas territories and Crown dependencies. I think I have just saved a stamp.

[Lord Purvis of Tweed (LD)]

I am grateful to the Minister. However, I think that the exemption would be an exemption from that order because it is an exemption under this order. If there is an exception for authorised conduct in a relevant country and the relevant country is the Channel Islands, the Isle of Man or a British Overseas Territory, I do not know the interaction between the exception that we are approving under this when it comes to the overall application of UK sanctions to the overseas territories. I understand that the overseas territories have that application owing to that other instrument but this is an exception to that.

[Lord Benyon (Con)]

I understand the noble Lord’s concerns. I am informed that he need not worry but I want to make sure that he does not worry; I will therefore put it in a letter to him.

These measures represent a step forward in our capability to respond to hostile Iranian activity and keep our people safe. The UK Government are committed to using sanctions to hold the Iranian regime to account for its malign activity, both in the UK and elsewhere.

Motion agreed.

Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2023

Lord Benyon Excerpts

Tuesday 23rd January 2024 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2023.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee

Motion agreed.

Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023

Lord Benyon Excerpts

Tuesday 23rd January 2024 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, these regulations amend the Russia (Sanctions) (EU Exit) Regulations 2019. These instruments were laid on 14 December 2023 under powers provided by the Sanctions and Anti-Money Laundering Act 2018. They entered into force on 15 and 26 December 2023, and 1 January 2024. The instrument has been considered and not reported on by the Joint Committee on Statutory Instruments.

These instruments contain trade and financial measures, co-ordinated with our international partners, to increase the pressure on Putin over his brutal and illegal war against Ukraine. They ratchet up the pressure on Russia’s war machine and economy as part of the most severe package of economic sanctions that that country has ever faced.

The No. 4 regulations continue the UK Government’s commitment to ban the export of all items that have been used by Russia on the battlefields to date. Building on existing extensive prohibitions, these regulations ban the export of further products that could be used by the Russian military or industry, including electronics and machine parts. The legislation also delivers on commitments made by the Prime Minister at the G7 leaders’ summit last May to ban imports of Russian metals, including copper, aluminium and nickel, by the end of 2023. It extends the existing prohibition on luxury goods to include a ban on services ancillary to their movement and use. This means that those subject to UK sanctions can no longer provide financial services and funds, technical assistance and brokering services related to luxury goods.

There are also amendments to other product definitions and coding to ensure clarity and consistency with partners. On the financial side, this includes new obligations for persons designated under the Russia financial sanctions regime to report any assets that they own, hold or control in the UK or worldwide as a UK person to the relevant authorities. A further requirement has been placed on relevant firms to inform HM Treasury of any foreign exchange reserves and assets belonging to the central bank of Russia, the Russian Ministry of Finance or the Russian National Wealth Fund.

The regulations also amend existing regulations that prohibit UK credit and financial institutions processing sterling payments that have travelled to, from or via sanctioned credit and financial institutions, in order to expand this prohibition to include non-sterling payments. The prohibition adds a new exception to enable UK credit and financial institutions to transfer funds internally in certain circumstances for the purpose of compliance and regulation.

Finally, alongside the No. 4 regulations, we have introduced a new financial sanctions licensing ground to support UK entities in divesting their Russian interests. The licensing ground will also permit UK entities to buy out investments from designated persons and the Russian state, provided those funds go into a frozen account. We will proceed with a further prohibition on ancillary services related to metals when this can be done in concert with international partners.

The No. 5 regulations deliver the Prime Minister’s commitment, made at the G7 summit last May, to tackle the revenue that Russia generates from the export of diamonds. They prohibit the import, acquisition, supply and delivery of diamonds and diamond jewellery produced by Russia. A further G7-wide ban on the import of Russian diamonds processed in third countries is expected to come into force from 1 March this year.

I should add that the Joint Committee on Statutory Instruments has been informed of a minor drafting error in the Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2023. To remedy this, we have identified another instrument where this error can be corrected; we aim to lay it this later this year, with it coming into force as soon as possible. I wrote to the noble Lord, Lord Collins, with some detail on this; it is important that I put this part of my letter on the record. We consider that the Russian regulations can stand as they are in the meantime because, although the incorrect terminology was used, the exceptions set out in Regulation 60DC(2)(d) of the Russia regulations remain clear. The Government plan to lay a separate miscellaneous sanctions amendment statutory instrument later this year, as I said. I hope that, with that assurance, I can give the Committee the absolute understanding that this minor drafting mistake does not impact on the measure.

These latest measures demonstrate our determination to target those who participate in or facilitate Putin’s illegal war. Overall, the UK has sanctioned more than 1,900 individuals and entities, of which 1,700 individuals have been sanctioned since his full-scale invasion of Ukraine. More than £20 billion-worth of UK-Russia trade is now under sanction, resulting in a 94% fall in Russian imports into the UK—comparing one year pre invasion to one year post invasion—as well as a 74% fall in UK exports to Russia.

Sanctions are working. Russia is increasingly isolated, cut off from western markets, services and supply chains. Key sectors of the Russian economy have fallen off a cliff, and its economic outlook is bleak. The UK Government will continue to use sanctions to ratchet up the pressure until Putin ends his brutal invasion of Ukraine. We welcome the clear and continued cross-party support for this action. I beg to move.

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[Lord Collins of Highbury (Lab)]

My Lords, I very much welcome these additional amendments on further sanctions. I certainly welcome the fact that we are focusing on trying to weaken the war machine that this illegal invasion of Ukraine is supporting. I certainty welcome Regulation 5, on luxury goods, too.

In the previous debate, the Minister mentioned the Office of Trade Sanctions Implementation, which aims to crack down on sanctions evasion. I very much welcome that because, as I mentioned, we have seen before evidence of companies circumventing the sanctions. He also mentioned the toolkit, which will, I hope, enable us to avoid repeating some mistakes made in the past. It would be good to better engage on how we will support this new office.

One thing that the noble Lord, Lord Purvis, has raised previously is this: how do we ensure that Britain’s offshore financial centres are properly able to implement the sanctions? Of course, we have been extremely concerned about transparency and the need to introduce public beneficial ownership registers speedily. Without them, we will not be able to see exactly what UK firms or individuals are up to. With opaque entities, sanctions will sometimes be evaded, though perhaps not deliberately. We need to address this properly.

The Government recently updated Parliament with another timeline for the expected delivery of public registers. However, I note that the British Virgin Islands will not have its appropriate frameworks in place as late as 2025. I hope that the Minister will express the same opinion as me: that this is too late and we really need to speed things up.

The noble Lord, Lord Purvis—I nearly called him Lord Putin then—mentioned frozen assets. We will certainly address them in our debate on Friday. Since we also raised this issue in Oral Questions, I note that the Foreign Secretary—the noble Lord, Lord Cameron—mentioned his belief at Davos that frozen assets are an issue that need international co-operation. Can the Minister give us a bit more detail on that?

The noble Lord, Lord Purvis, also referred to the stats that were mentioned by the Minister. I have here a letter dated 19 January from Anne-Marie Trevelyan. It repeats those figures but she says that we have

“sanctioned more than £20 billion of UK-Russia goods trade, contributing to a 99% drop in UK goods imports from Russia and a 82% drop in UK goods exports to Russia”.

I do not know why there is a difference there, especially as it is so recently put. I welcome that letter because it gives a lot of detailed information. One thing that Minister Trevelyan says, in referring to metals, diamonds, oil and stuff, is what we have addressed before: the leakage that seems to happen, particularly with luxury goods. Her letter says:

“The UK, EU and US have sent joint delegations to the UAE, Kazakhstan … Uzbekistan, Georgia, and Armenia, and we have delivered senior bilateral engagement with Turkey and Serbia, yielding positive results”.


I am not sure from the letter whether we have received positive results from all of these visits.

I was in Tbilisi late last year, and I noted that there was a big increase in the import of luxury cars into Georgia. It was also reported that, since the war, trade going from Georgia into Russia has increased, despite its public position. I welcome the fact that we have sent delegations and that the Minister is saying that there are positive results, but can he tell us exactly what they are? Even from my observations, it certainly looks as though there is an ability to evade sanctions.

With those brief comments, I reiterate the Opposition’s position: we are absolutely at one with the Government in supporting Ukraine and ensuring effective sanctions against Russia’s illegal invasion. We welcome these amendments to the sanctions regulations.

[Lord Benyon (Con)]

I again thank both noble Lords for their interest and support for these measures. I will seek to answer all the questions raised. I will ensure that future letters go to both Front Benches; I apologise to the noble Lord for missing him out in that exchange.

Gold is a sanctionable trade. Sometimes it is harder to detect, but it is certainly an element of trade that is within the sanctions regime.

I cannot give the noble Lord a breakdown of the sectors that create the 74%. I do not know why there is a discrepancy with the letter he received from my colleague Anne-Marie Trevelyan, but I will look into it. My understanding is that there has been a 96% reduction in trade from Russia and a 74% reduction in trade in the other direction. That will have caused hardship to some legitimate businesses, and we respect that, but this is an international incident which requires the strongest possible response, and our sanctions regime has had to take this decision.

I will write to both noble Lords about the buying of frozen assets and what impact that could have if those assets were then released, say, to Ukraine, to help pay for the war. We want to make sure that we are not diminishing the amount that that country should get to pay for the damage that has been done to it.

The G7 has repeatedly underscored that Russia’s obligations under international law are clear: it must pay for the damage it has caused to Ukraine. How we ensure that Russia does so is the subject of active and urgent discussions with G7 partners. Leaders have tasked the relevant G7 Ministers to report back on progress by the two-year mark of Russia’s invasion at the end of February. The UK remains fully committed to working with allies to pursue all lawful routes through which Russian assets can be used to support Ukraine.

While these G7 discussions continue, we have taken a number of steps domestically. We were the first to introduce legislation explicitly enabling us to keep sanctions in place until Russia pays for the damage it has caused; we have announced a route by which sanctioned individuals who want to do the right thing can donate frozen funds for Ukraine’s reconstruction; we introduced new powers to compel sanctioned individuals and entities to disclose assets they hold in the UK; and we are stepping up efforts to use funds from the sale of Chelsea Football Club to support humanitarian causes in Ukraine.

The noble Lord referred to the EU’s proposal to use the profits being incurred by funds trapped in Euroclear to support Ukraine. We are looking closely at that, but this situation is unique to the EU’s institutions. We and other G7 partners fully support the EU’s efforts but we do not believe that we can replicate them within our system. However, we are looking at any opportunities to increase the pressure. As I say, the EU’s proposal is unique to its institutions and we want to ensure that we use our frozen assets regime as effectively as possible.

--- Later in debate ---

[Lord Collins of Highbury (Lab)]

Can I just interrupt the Minister on this point? It is something that I picked up from Anne-Marie Trevelyan’s letter of 19 January, where she talks about these joint delegations “yielding positive results”. I agree with the Minister that this is not about attacking the Russian people but is about luxury goods, which are certainly leaking in. I wondered what the Minister meant in her letter about yielding positive results. Do we have figures on that? Has there been an impact on the trade, which seems to be leaking?

[Lord Benyon (Con)]

I am sure that we do have figures, although I do not have them here. I will write to the noble Lord setting out what successes we are having in those negotiations and bilateral discussions.

These measures are the latest addition to our package of sanctions, which is having a damaging effect on Putin’s war machine and regime. The UK Government are committed to using sanctions to keep up the pressure until Putin ends his brutal and senseless war. We in this Committee stand resolute with the people of Ukraine and will continue to support them until they prevail.

Motion agreed.

Environmental Policies: Timeliness and Effectiveness

Lord Benyon Excerpts

Monday 22nd January 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

On behalf of my noble friend Lady Hayman of Ullock, and with her permission, I beg leave to ask the Question standing in her name on the Order Paper.

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, I refer the House to my entry in the register. The Government are committed to leaving the environment in a better state than we found it. Following the Environmental Improvement Plan 2023, we have stepped up our action, including announcing our multimillion-pound species survival fund and 34 landscape recovery scheme projects. Our annual reports on the 25-year environment plan and the outcome indicator framework assess our actions to improve the environment. The next annual report will be published this summer.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is ironic that some noble Lords who would like to have participated in this Question, including my noble friend Lady Hayman of Ullock, will be unable to do so due to disruption caused by the ninth named storm of this winter. As we adjust to a world where extreme weather events are more frequent and other effects of climate change are more apparent, there can be little surprise that Dame Glenys Stacey has warned that the Government

“needs to speed up, scale up and make sure its plans stack up”.

The positive picture painted by the Minister bears little resemblance to the OEP’s report from last week, which found that UK environmental ambitions are “largely off track”. Does the Minister accept the finding that while the Government may be good at announcing major initiatives, they are less effective at developing and delivering them?

--- Later in debate ---

[Lord Benyon (Con)]

I do not agree with that. The report said that 25 areas were improving, 10 were static and eight were deteriorating, and we take these extremely seriously. The OEP said that the EIP targets are welcome but that scale and pace, as the noble Baroness says, have to be improved. That was reporting on the year to March 2023; our environmental improvement plan was announced only last January, so the report was only three months into that period. There is a real sense of urgency among Ministers, through Defra and across government to make sure that we hit our no-net-loss targets by 2030. You do not achieve that by taking action in 2029; you take action now, and we have been doing so over a number of years, to make sure that the multiple decades of decline of nature in this country are stopped and reversed. That is our absolute ambition across government.

[Baroness McIntosh of Pickering (Con)]

My Lords, does my noble friend agree that part of the reason for sewage spilling into people’s homes is that we still do not have an end to the automatic right to connect, and a greater use of SUDS? When does he intend to bring forward the consultation on Schedule 3 to the Flood and Water Management Act 2010 to permit greater use of these facilities?

[Lord Benyon (Con)]

I have written to my noble friend to give her a detailed answer to that question, which is the same one she asked quite recently. I assure her that I asked whether we really had to consult again, and apparently we do; it is a statutory requirement under the Flood and Water Management Act. I suspect we will bring in those measures later this year.

[Baroness Boycott (CB)]

My Lords, I heard the Minister speak about the Government’s urgency, but I will make reference here to actual policies and plans that have been delayed. I will mention a few; this is not an exhaustive list. The horticultural peat ban, which was promised by this year, is not here yet. The implementing regulations for the introduction of due diligence measures on forest risk commodities are still not before Parliament. The UK chemicals strategy was promised last year, the deposit returns scheme has just been delayed until whenever, and there are the replacement protections for hedgerows, which followed the loss of cross-compliance at the end of last year. That is just five. Can the Minister comment?

[Lord Benyon (Con)]

On hedgerows, I refer the noble Baroness to the fact that an enormous quantity of new hedgerows has been planted, and we have 11,000 kilometres of hedgerows under new management as a result of the sustainable farming incentive. On other measures, I am very happy to write to the noble Baroness to tell her the timetable for when those measures will be brought in. On forest risk commodities, it is important that we are in step with other countries; we are absolutely determined to make sure that consumers can know whether the commodity they are buying is putting forests at risk. The UK is a leader in making sure that happens.

[Earl Russell (LD)]

My Lords, the Office for Environmental Protection’s annual report shows that the environmental improvement plan, which sets out legally binding targets, is meeting only four out of 40 of them. With the OEP keeping legal action under active consideration, the Government taking almost a full year to respond to the first OEP report, and the Minister in the other place saying only that the Government will respond in due course, will the Minister give a firm date for when they will provide a formal response to this serious report?

[Lord Benyon (Con)]

The Environment Act requires the Government to respond within 12 months, and we will respond considerably more quickly than that. I know that the noble Earl is asking me a question, but does he agree with me that this is without any measure of doubt the greenest Government ever? I am proud of that and happy to be held accountable for all these measures. We brought in a landmark piece of legislation in the Environment Act. We have brought in so many other measures that have addressed long-awaited needs in this environment, and without doubt we have the greenest Government ever.

[Lord Watts (Lab)]

My Lords, is the Government not using the wrong benchmark? If they were to benchmark to, say, 13 years ago, and look at the improvements, that would be a different matter from looking at the last couple of years.

[Lord Benyon (Con)]

I do not understand the noble Lord’s position. Working off a baseline, we have to make sure that we are sharing data. We are publishing 800 pages of data so that the noble Lord, NGOs, parliamentarians and others can hold us to account on this. We use an accepted baseline in order to show an improvement. No net loss by 2030 and 10% improvement on that by 2042—those are pushing targets.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the tone adopted by the Minister is in stark contrast—180 degrees opposite—to that of the OEP report. That talks of Britain being locked in an irreversible spiral of decline of nature. We have what the Minister calls landmark pieces of legislation. Can he put his hand on his heart and say that Defra has adequate capacity to deliver the absolute flood of material that needs to be done to get anywhere near delivering what he is suggesting is needed?

[Lord Benyon (Con)]

I think we can. We have put more resources into our agencies, particularly Natural England. We have a sense of complete determination to hit this, which comes from Ministers and goes down to the Natural England or Environment Agency individual who is dealing with a particular group of farmers. But for all the resources that we could put into government, we would fail if we doubled them. What is important is that we weaponise land managers and people who really know about this on the ground. That is why clusters of farmers working together—for example, in environmental farming groups—are the way forward to deliver an increase in abundance of species and protection of nature, which is not just an environmental or societal matter. It is an economic one as well, as the Dasgupta report proved.

[Lord West of Spithead (Lab)]

How is the programme going to provide shore power in our ports and harbours so that visiting ships do not have to run their diesel generators?

[Lord Benyon (Con)]

That is a very good question from the noble Lord. I should always come armed with a list of marine shipping questions. I have not, but I will make sure that he gets an answer to that in due course.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, to implement effective policies, you need reliable and accurate data. For water, if an incident is reported but not inspected, or inspected too late, it becomes a category 3 or 4. The Environment Agency has reduced its responses to those categories, saying:

“You get the environment you pay for”.


With this in mind, does the Minister have confidence that the official water pollution figures are accurate? If he has doubts, what are the Government going to do to ensure better monitoring?

[Lord Benyon (Con)]

When we came into government, we knew about 10% of the sewage outflows from water companies into rivers. We now know 100%, because we require them to report them. Technology is our friend here: we are able to use telemetry, which can now do the work of hundreds of people in real time, producing a message to a phone requiring an instant response. I think we are much better equipped to deal with it. Is it perfect? No.

[Baroness Altmann (Con)]

My Lords, I congratulate the Government and my noble friend, who I know is passionate about protecting the environment and the need to do so. I support his claim that this is the most environmentally friendly Government we have had. Before 2010, no Government took this matter particularly seriously. However, will he take on board some of the issues that have been noted about resourcing, particularly of the Environment Agency? It is apparently not attending all the sewage outflows, so it could well be that significant numbers are happening without us knowing. Will he take the issue of resourcing back to the department?

[Lord Benyon (Con)]

I thank my noble friend. In my absolute belief in what we have achieved over the last decade and a bit, I am absolutely not complacent—none of us is. The OEP’s report is really important. We set up the OEP to hold this Government and future Governments to account on this. On the issue my noble friend raises, we have increased the number of Environment Agency officers who should and must respond to all such reports. On water quality as a whole, we have put in place, through our plan for water, the most comprehensive list of measures possible to make sure that not only water companies but farmers, home owners and others who are responsible for the quality of the water in our rivers are held to account when they get it wrong.

Storms: Weather Resilience

Lord Benyon Excerpts

Thursday 11th January 2024 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

I beg leave to ask the Question standing in my name on the Order Paper and refer to my interest as vice-president of the Association of Drainage Authorities.

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, I refer to my interests as set out in the register. I know the whole House will extend our sympathies to those impacted by Storm Henk. To date, 2,185 properties have flooded, and over 81,000 properties have been protected due to the Government’s investment in flood defences. The Government’s 2020 policy statement sets out five ambitious policies and multiple actions to improve future resilience to flooding. Between 2021 and 2027, the Government will have doubled investment in flood and coastal erosion schemes across England to a record £5.2 billion.

[Baroness McIntosh of Pickering (Con)]

My Lords, does my noble friend agree that we should be doing more between floods? I pay tribute to the Environment Agency and drainage boards for the important work they do in regularly maintaining existing flood defences and dredging watercourses. Will he seek to end the arbitrary division of funding between capital expenditure and maintenance funding that is hampering this work, as advocated in the December report from the National Audit Office? Further, will he confirm that the farming recovery grants will reward farmers for loss of crops and for the fact that their land is effectively being used not for food production but to defend downstream communities from future floods?

[Lord Benyon (Con)]

I entirely join my noble friend in saying what fantastic work the Environment Agency has done in reaction to these floods, along with the ongoing work it does in between to make sure that we are more resilient to them. Its annual maintenance programme activities are prioritised and timetabled using information from inspections, maintenance standards, levels of flood risk and legal and statutory obligations. Local teams work with partners, including drainage boards, on maintenance and dredging programmes. In 2022-23, the agency spent over £200 million on maintaining flood risk assets. In 2021, we announced an additional £22 million per year from 2022-25 for the maintenance of flood defences, and details can be found in our Flood and Coastal Erosion Risk Management Report.

My noble friend also talked about farming. The flood recovery fund will pay for the uninsured costs of preparing arable land for planting crops or reseeding grass where it has been damaged, and our agricultural transition plan has a range of measures which will support farmers in these matters.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, in the interest of helping this Government, who appear to have run out of good ideas on almost every topic, what about banning new building on flood plains?

[Lord Benyon (Con)]

I really want to know what the noble Baroness means by that. Does she mean that there should be no more houses built in York, Leeds, London or Exeter? It is not what you build; it is how you build and how resilient the buildings are to flooding. I entirely accept and agree with her that some appalling decisions were taken over the last half century, and houses have flooded because they should never have been built there. But we cannot ban the building of properties; we just have to make them resilient to flooding.

[Lord Deben (Con)]

I remind my noble friend that when his department produced its five-year plan, in the usual range of these, the Climate Change Committee said that it was not adequate. In the light of these floods, will he look at that plan to see whether some changes should take place? The Government have done a great deal, but clearly, this will get worse and we need to look at it again.

[Lord Benyon (Con)]

My noble friend is right that these problems are going to get worse: what we are suffering at the moment is almost certainly the impact of an El Niño effect, which has meant a warmer, wetter start to our winter. This will, we hope, be followed by a dryer but perhaps colder end to it, and we can look to the future. The Government are absolutely looking to the future, and he was right in his leadership of the Climate Change Committee to make sure that all departments are being resilient to the effects of climate change. I will just say that we have achieved much more than some of our closest neighbours. We are going to reduce greenhouse gases by 65% by 2030; the European Union has a target of 55%. We are doing a lot to address this, both globally and domestically.

[Baroness Hayman of Ullock (Lab)]

My Lords, I want to pick up on an issue arising from yesterday’s Statement. In May last year, the EFRA Committee published a report on rural mental health, which found that extreme weather events and animal health crises left farmers, workers and vets dealing with mental health trauma with little support. It called on the Government to provide dedicated emergency funding to enable local areas to quickly access more resources to respond to rural communities’ mental health needs, both during and, crucially, after crisis events. Can the noble Lord explain why the Government disagree and have refused to allocate this funding?

[Lord Benyon (Con)]

If the noble Baroness looks at our rural proofing annual report, she will see a firm commitment in it to issues relating to mental health in rural areas. She is absolutely right that events such as this trigger severe problems for people whose homes are flooded, or who lose their business or a large part of it, and we are seeing that in the farming community. The Government are providing a range of mental health support measures for people in these communities, and I applaud the work the NFU and others are doing, with the Government, to make sure that we are accessing those in need and providing them with the support they require.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the NFU tells me that a review of the flood defence grant in aid funding is vital. The weighting towards people and property means that rural areas are unable to compete for funding, as they will never score highly enough to receive any grant. Are the Government considering altering the formula so that farmers get a fair share of this money?

[Lord Benyon (Con)]

That is a very good question. The first thing we have done is to introduce partnership funding. At the time, the Opposition referred to it as a flood tax, but it has meant that a whole load of schemes that would never have got the go-ahead, because they did not have the value for money of schemes which defended more homes, did go ahead and have therefore been built. Approximately 40% of schemes and 45% of investment better protects properties in rural communities; and since 2015 we have protected over 700,000 acres of agricultural land, along with thousands of businesses and communities, through schemes.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, the Minister and others have naturally focused on the macro schemes that are designed to reduce the major impacts of flooding, but does he agree that micro-level interventions can have a significant impact, such as not using nonporous hard surfaces to concrete over front gardens to create hardstanding for motor vehicles? What advice are the Government giving on the appropriate use of porous materials when people want to create hardstanding at their homes?

[Lord Benyon (Con)]

My Lords, the Government are giving money for property-level flood resilience, and that would entirely fall within this. Software is also now available. For example, I looked some years ago at Bristol, where they had created millions of data points around the city at which they could apply different weather events and see how just a kerb being raised at a certain point, or a wall being extended, can protect a number of properties from flooding. So the noble Baroness is absolutely right: we need to look at the micro as well as the macro effect.

[Lord Bellingham (Con)]

My Lords, I declare my interests as listed in the register. The Minister mentioned damage to farmland. Obviously, most arable farmers will have the chance to re-drill their crops in the spring and many will benefit from the farming recovery grant. However, in the Fens, covering Lincolnshire, Cambridgeshire and Norfolk, a number of horticultural producers have suffered substantial damage to existing crops. They may well not be covered, so what advice can he give them?

[Lord Benyon (Con)]

My noble friend is right: these floods will undoubtedly affect our food security. Lincolnshire and the Fens is a very important area. Internal drainage boards and managing water levels are an important part of this. I cannot say that the level of rain we experienced was unprecedented, and it certainly was not unexpected. We are going to have more of these events, and we have to be better at managing them.

[Lord Berkeley (Lab)]

My Lords, the Somerset Levels have flooded every winter for the last 20 or 30 years, which often stops the railway and roads. I am told it is because the Environment Agency has prevented proper dredging of the rivers, which would allow the rainwater to run away into the sea. Is this not clearly easy to do, and a quick fix that would stop this happening every year?

[Lord Benyon (Con)]

People are very often free with advice. I went down to Somerset when there were floods there and somebody said to me, “All you have to do is dredge this river, cut this dyke through, and the water will flow.” I pointed out to him that that might clear the water from his farm, but it would go into people’s houses in Bridgwater. He said to me, “You are confusing me with someone who is concerned about the people who live in Bridgwater.” These things are never simple, and the noble Lord may be right.

Climate Change: Impact on Developing Nations

Lord Benyon Excerpts

Thursday 11th January 2024 Lords Chamber

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, the nature and environment activist Tony Juniper, now chairman of Natural England, wrote a very good book called What Has Nature Ever Done For Us? He showed the equivalent of the life of this planet in a train journey from London to Cambridge. Humanity’s existence on that journey is the equivalent of just walking from the train to the ticket machine. Only the last few steps of that equivalent journey have created the existential threat of climate change and the loss of nature that we know is so damaging and that can deliver such appalling insecurity and poverty, and which we are seeking to tackle.

I thank noble Lords for their contributions to this debate. I do not have time to do all the contributions credit, but I pay great tribute to the noble Baroness, Lady Northover, for tabling it and for her years of dedication to international development.

Tackling climate change and ending poverty are two sides of the same coin, and we cannot achieve one without the other. The United Kingdom has a crucial role to play, working with our partners to address these critical global challenges. I thank the noble Baroness for setting the debate in context, and I pay great tribute to the right reverend Prelate the Bishop of Winchester for an outstanding maiden speech, in which he stated both the internationalist and the local approach, picked up by so many noble Lords. His was a really thoughtful contribution, and we are lucky to have him among us.

We cannot achieve our climate or development goals without full-scale economic transformation to deliver the trillions of dollars of investment needed. This must be coupled with unprecedented action to tackle climate change and to protect and restore nature. Our White Paper, which has been much commented on in this debate, was published in November. It establishes seven areas of transformative action, and this is how we will deliver a step change in international development by the end of the decade, ending extreme poverty and tackling climate change.

Among the key elements is going further and faster to mobilise international finance and increase private sector investment in development, while strengthening and reforming the international system to improve action on trade, tax and, crucially, debt, which was mentioned by many noble Lords—as well as tackling the scourge of dirty money, of course. This is also the key to unlocking the money needed to tackle global challenges, including climate change. We will build on resilience and enable adaptation for those affected by conflict, disasters and climate change. We will harness innovation, new technologies and scientific research to solve the problems that money alone cannot solve.

The noble Lord, Lord Alton, was right to remind us that linked to this is the whole humanitarian piece. The Pentagon first described climate change as the great risk multiplier, and, with that risk to security, systems of governance collapse. With that comes increased authoritarianism—my noble friend Lord Hannan referred to this. In the White Paper, there is a stark graph showing the number of people in the world who now live under authoritarian regimes, compared to a few years ago.

The global context for international development has changed, and the White Paper sets out our approach and how it is changing with it. We will work in partnership, based on mutual respect, with leaders, communities and individuals shaping the solutions they need. This includes our work to reduce emissions, adapt to climate change and protect and restore nature. I am grateful to my noble friend Lord Eccles for mentioning Kew. At a number of recent COPs, we have seen how Kew is at the heart of this, with its 500 scientists delivering an extraordinary piece of soft power for Britain and a real gift to the world, in the understanding of the importance of plants and natural systems. I am grateful to my noble friend, who led it so well in the past. It is absolutely key to the kind of partnerships that we are creating around the world.

We also partner with countries to improve access to climate adaptation finance. For example, we co-chair the climate and development ministerial meetings with the UAE, Vanuatu and Malawi. The forum has already taken significant steps, including raising support for debt-suspension clauses in times of disaster and launching a task force to improve access to climate finance. Overall, the UK will prioritise its grant resources for the lowest-income countries and communities, which are particularly vulnerable to the effects of conflict and climate change. We will go further and faster to mobilise more finance to help end extreme poverty and tackle the climate crisis.

I will mention the right reverend Prelate the Bishop of Norwich’s absolutely vital point about using local actors, as well as Church-based and faith-based organisations, along with civil society—this is so important. As was mentioned, in countries such as South Sudan, it is really important that we use them as part of the tools we need to win through.

Beginning with our work to reduce emissions, we remain committed to delivering net zero at home and driving progress internationally to keep 1.5 degrees centigrade within reach. Over the past 12 years, our international climate finance has provided almost 70 million people overseas with improved access to clean energy. We also reduced or avoided 86 million tonnes of greenhouse gas emissions. The deal at COP 28 is a key moment in efforts to get to net zero by 2050. For the first time, there has been a global agreement to transition away from fossil fuels, and I am proud of the UK’s pivotal role in the negotiations—but we still have a long way to go. We will continue to work with countries around the globe to accelerate action in this critical decade. I remind noble Lords who are concerned about recent announcements that we are reducing our dependency on our own oil exploration by 7% a year.

I turn to critical minerals. The green transition must not come at the expense of countries—often less developed ones—with critical mineral resources. The UK is working through the G7 and G20 with the IEA, through forums such as the Minerals Security Partnership, to support diverse, responsible and transparent critical mineral supply chains. I pay tribute to the noble Baroness, Lady Northover, and her colleagues in the All-Party Parliamentary Group for Critical Minerals for their efforts on this vital issue.

I turn to adaptation. Over the past 12 years, our international climate finance has helped more than 100 million people cope with the effects of climate change. Our negotiators helped to agree a framework at the COP 28 summit to bring a global goal on adaptation to life; although there is further work to be done, this is a critical step towards more meaningful action. For those who doubt Britain’s place in multilateral diplomacy, on climate and nature, we were really at the heart of that COP and previous ones—and I pay huge tribute to all those who take part. We demean them if we talk it down; this was an extraordinary result. We were extremely gloomy about the possibility of getting the kind of agreement that we did, and certainly to start the whole thing with an agreement on loss and damage was very welcome.

My colleague, the Minister for International Development, Andrew Mitchell, announced at COP 28 £100 million of UK funding to help vulnerable people adapt to climate change. That includes £36 million for action in the Middle East and north Africa to support long-term climate stability; that will mobilise $500 million for clean energy and green growth projects, and support 450,000 people to adapt to climate change.

COP 28 also reaffirmed the importance of forests—and I thank the noble Baroness, Lady Chakrabarti, for mentioning that—and nature, in tackling the climate crisis. I could list all the amounts of money that we have put towards that, but it is a crucial part of the work that we need to do globally to get the planet back on track.

We know that aid alone will not be enough when the annual financing gap for achieving the sustainable development goals is $3.9 trillion. We must unlock finance from other sources, and mobilise more private capital to low- and middle-income countries—a key point made by the noble Baroness, Lady Sheehan. The UK is a major donor to international climate finance. At the G20, the PM announced that the UK will provide $2 billion to the Green Climate Fund, which is the biggest single funding commitment that the UK has made to help tackle climate change. Half of that contribution will go to adaptation.

Overall, we remain committed to spending £11.6 billion of new money on international climate finance by April 2026, including £3 billion to restore and sustainably manage nature. We are committed to tripling UK funding for adaptation to £1.5 billion next year to support those experiencing the worst impacts of climate change. The UK is delivering on its commitment. I have been party to lengthy discussions on this, and I assure noble Lords that we are serious about this.

We have heard the increasing calls from developing countries to reform the international financial system. The Prime Minister launched the global climate finance framework at COP 28 alongside leaders from Barbados, Kenya, India, France and others. This sets a new ambition on reforming finance to address our climate and development goals. A key pillar of reform is multiplying our impact by unlocking hundreds of billions of affordable finance from international financial institutions for key development priorities, and I shall visit one of those next week.

Our guarantees to multilateral development banks—a point that was raised—are also doing this. At the UN General Assembly, we announced a guarantee to unlock up to $1.8 billion of climate finance, supporting vulnerable people across Asia and the Pacific to adapt to climate needs. To note the point made by the noble Lord, Lord Hannay, the UK is leading the way on making the global financial system more shock responsive. We were the first to offer climate-resilient debt clauses in loans from our export credit agency, pausing repayments when disasters strike. COP 28 saw the UK announce take-up of this offer in Senegal and Guyana, with 73 countries backing the UN call to action for creditors to offer CRDCs by 2025.

I am conscious that I want to address the point made by my noble friend Lady Bottomley about malaria, which was also raised by others. We are making a range of investments to fight malaria, which include our £1 billion contribution to the seventh replenishment of the Global Fund. This supports vital tools in combating malaria, including the distribution of 86 million mosquito nets, 450,000 seasonal malaria chemoprevention treatments, and treatment and care for 18 million people—but the future is where the benefits really lie. We are funding R&D support on next-generation bed nets and vaccines and are supporting research that has paved the way for the rollout of RTS,S and R21 malaria vaccines, mainly targeting children under five who are at much greater risk of malaria. Additionally, we have supported the rollout of these vaccines through our £1.6 billion funding to GAVI, including for further clinical trials. This is really important work and, with our biotech industry and ability to move fast on vaccines, we can benefit from some of the tragedies we have had in recent years, such as Covid, and see real benefit to the world in what we are delivering.

Some noble Lords raised the issue of loss and damage. The UK’s contribution to the new fund is a new commitment that will be met from our ODA budget. It is part of our ongoing commitment to support developing countries to tackle the causes and impacts of climate change. I just want to take one of the dying minutes of this debate to mention SIDS—small island developing states. These are people who are facing the reality of climate change on a daily basis. We are absolutely at the heart of trying to support them. I do not have time to go into it, but it is an absolute priority for our country.

We must accelerate progress towards the sustainable developing goals; that matters now more than ever. We will continue to use all the tools that we have to deliver the transformation that the world needs to see, including building a bigger, better and fairer international system that addresses poverty and climate change. Together with our partners, we are building a healthier, greener and more prosperous future for generations to come.

Storm Henk

Lord Benyon Excerpts

Wednesday 10th January 2024 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I declare my interest as a vice-president of the LGA.

Storm Henk and those that preceded it have caused havoc across the country. Nearly everyone in this House will know someone who has been flooded by the storms; I have neighbours who have suffered flooding. I have great sympathy for those who have had their home, business or land inundated by flood-water. It is a truly depressing experience to see your life’s work washed away.

All the emergency services have been brilliant in responding to the rising water, evacuating those flooded out and trying to keep people safe, at the same time as initiating emergency measures to try to stem the flood-waters. We all owe them a great debt of gratitude.

However, sadly, this was not an isolated incident. Excessive rainfall over a sustained period of time has resulted in the ground becoming completely waterlogged, with new rain having nowhere to go but into the already overfull rivers. We have experienced the type of flooding that was originally assessed as a one-in-200-year occurrence. This type of flooding is now occurring on a regular basis, several times a year in some areas.

The impact on the farming community is dire, with the loss of crops and the impact on grazing stock, with farmland and buildings under water. Farmers have nowhere to keep their animals in safety. Although the Government and the Environment Agency responded fairly rapidly with relief and announcing packages of financial help for those affected, there was little preparation over previous years to ensure that flood resilience was sufficiently robust. In October, the Environment Agency found that 4,000 flood defences were rated “Poor” or “Very poor”. At the same time, its budget had been underspent by £310 million. Of the £11.7 million allocated two years ago for flood defences in one area of Nottinghamshire, less than 1% of that money has actually been spent so far.

There is an element of not really taking climate change seriously here. We are getting one storm after another; these are not freak occurrences. The Government have invested £6 billion since 2010 to protect 600,000 properties; that is roughly £10,000 per property. Decent and well-maintained flood defences protect properties and businesses, but farmland is a different matter. Depending on the area of the country, flooding farmland can be part of the solution to preventing towns and villages from being flooded—a sad but necessary fact. The Environment Agency had been working hard after Storm Babet to clear river channels to ensure that water could flow freely but, surely, these issues are part of routine maintenance which should occur regularly, not just when a storm is threatened.

The Government have activated the flood recovery framework to provide relief to all those affected by flooding. This is good news. Can the Minister say when this will come in? Eligible flooded households can apply for £500 to help with immediate costs, together with 100% relief on council tax and business rates for three months. But it could be six months before flooded householders will be back in their homes; some people may be out for a year. Would the Government agree to looking at extending this tax relief longer in some cases? I welcome the scheme for flood-hit properties to be able to apply for £5,000 to help with flood resilience measures; this will help. What it will not do is stop it raining.

I also welcome the recovery fund for farmers who have uninsurable damage, with grants of up to £25,000 and up to £2,500 to help towards business-as-usual recovery. This should help many who have been severely affected. However, I am concerned about the Flood Re scheme, with over half a million properties benefiting so far from the scheme. As flooding incidents occur more frequently, I wonder whether the scheme will cope with the additional numbers and would be grateful for the Minister’s reassurance on this matter.

The Statement indicates that £5.2 billion is to be spent on new flood defence schemes in the current six-year period. The Minister in the other place indicated that there would be an announcement shortly on the application of successful innovative projects. Can the Minister give an indication of when “shortly” is likely to be? Will it be before the end of the month?

As for building on natural flood plains, I agree completely that local authorities should apply strict criteria covering new developments and ensure that they receive robust advice from the Environment Agency. It is also essential that future Secretaries of State do not overrule local authorities’ decisions to refuse developments on the grounds of potential future flooding.

The Statement gives a great deal of information on the actions taken in the wake of Storm Henk, but it makes little reference to climate change. The weather we are experiencing, which is causing such havoc, is the direct result of rising temperatures due to climate change. Last year was the hottest on record since records began. This is not going to change overnight unless the Government, businesses and the population take climate change seriously. Extensive drilling for oil in the North Sea, along with slowing down measures which would move the country more quickly towards reaching our carbon targets, are deliberately increasing the risk of more storms and floods. I hate to use the phrase “rowing back”, but that is exactly what the Prime Minister is doing when it comes to the implementation of the 25-year environment plan.

All government departments have a part to play in ensuring that the country tackles climate change. It is ludicrous to allow one department to deliberately throw caution to the wind and then expect another department to pick up the cost and mop up the mess caused. It really is time for co-ordination between all government departments to tackle this problem and help towards preventing yet another disaster for the farmer, householder and small business owner who will suffer life-changing events due to the lack of sufficient planning. If I were rating the Government’s actions on this issue, as other institutions are rated, I would give a “Good” for the last-minute emergency response, but for the long-term co-ordinated planning I fear I would give only a “Very poor” rating. It is time for climate change to be taken seriously.

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

I start by referring noble Lords to my entry in the register. I thank the two noble Baronesses for their questions: I will try to get through as many of them as possible and give other noble Lords a chance to ask questions. I know I speak for the whole House when I say we are very mindful of the impact that these floods have had on a great many households, individuals and businesses. Our thoughts are with them as they try to cope with the aftermath.

Several of our biggest river systems—the Trent, the Thames, the Severn and the Avon—saw record or close to record levels as they drained huge volumes of rain from across their river catchment areas. So far, 2,000 properties were flooded during Storm Henk and more than 80,000 properties were protected as a result of the Government’s investment in flood defences: we have to remember that there are a lot of people who did not flood because of the investment that has taken place. Over 1,000 Environment Agency staff have been working tirelessly in incident rooms to protect communities across the country—I thank the noble Baroness for raising the good work they have done. There is now an improving picture across the country as we enter a colder, drier spell and we see flood warnings continue to reduce over the coming days.

Ahead of the winter, early forecasting by the Met Office and the Flood Forecasting Centre enabled preparatory action to be taken at national and local levels, and I can assure noble Lords that that did take place, has taken place and will continue to take place. We exercise for these incidents. The largest civil contingency exercise ever undertaken, Exercise Watermark, took place a decade ago and since then there have been a number of others testing all the new systems we put in place following the Pitt review following the 2007 floods where we saw nearly 50,000 properties flooded. We have learned from that. Those who say that the way forward is some new, centralised system are ignoring the very important findings of that review, which said that we have to put more trust in local resilience fora, working with the emergency services, local authorities and the Environment Agency at a local level. It is really important that we continue to do that.

The Environment Agency wrote to all Members of Parliament in England to provide information for use in the event of flooding and launched its annual flood action campaign on 7 November, encouraging people to be prepared. Throughout the winter, Defra monitored the flood risk and chaired daily government meetings during Storm Henk to ensure that appropriate actions were being taken to minimise impacts to communities.

For all those who have, sadly, been affected, the Defra and Department for Levelling Up, Housing and Communities Secretaries of State activated the flood recovery framework, which the noble Baroness mentioned, on 6 January. This will allow eligible communities impacted by the flooding to apply for financial support. This will provide financial support to help with immediate clean-up costs and up to £5,000 to make homes and businesses more resilient for future flooding. Our flood recovery fund will support those farmers who have suffered uninsurable damage to their land; they will be able to apply for grants of up to £25,000—I will come on to talk about support for farmers in a second. Small and medium-sized business will also be able to apply for up to £2,500 from the business recovery fund to support their return to business as usual.

On the points raised by both noble Baronesses that there is somehow a rowing back, I would just state that when the noble Baroness’s party and mine came into government in 2010, 40% of our energy needs came from coal; that is now 1% and the 1% will be eliminated in years to come. No Government in the G7 or the European Union have taken more action on climate change. Our predictions for decarbonising our economy in the roll-up to the net zero date of 2050 outperform so many of our near neighbours and other developed economies.

The noble Baroness is absolutely right that the Environment Agency has said that it will be able to protect fewer homes. Construction inflation has had an impact on public procurement right across the piece —there is no doubt about it—but we have put more money into the programme and we will continue to protect homes.

The noble Baroness asked a very specific question about asset condition. There have been three Environment Agency asset breaches in January 2024. All were raised earth embankments in rural parts of Lincolnshire. There was minimal risk to properties but some impact on farmland. The Environment Agency is working with local landowners to understand the impact, assess the damage and plan for repairs. There were eight breaches during Storm Babet across the East Midlands. They have been inspected and repairs are under way.

On farmland, under the current schemes some 45% of the projects that have been put in place were in rural areas. So that protects farmland: we have protected over 700,000 acres. We are taking the impact of floods on our food security, the rural economy and the businesses concerned very seriously and are busy doing what we can to protect land and ensure that farmers can be supported in recovering from this. It is certainly going to have an impact on our food security, because large areas of counties such as Lincolnshire are very important for the production of crops that we all need.

On asset condition, I also say to the noble Baroness that our target is for 98% of all assets to be in a good condition: at the moment, it is about 93.5%. In this comprehensive spending review, we will get to somewhere between 94% and 95%. We have increased the maintenance budget to £221 million, an increase of £20 million.

I am conscious that time is too short to answer other questions and will certainly write on any other issues that have been raised.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank my noble friend for coming to answer questions on the Statement. He referred to the Pitt review of 2007, in which Sir Michael Pitt clearly stated that we should end the automatic right to connect. A lot of the floodwater will contain sewage: it is sewage on farmland and in people’s houses. When is he going to introduce the consultation that will lead to the implementation of Schedule 3 to the 2010 Act that we were promised would be implemented this year? That is now absolutely urgent.

The noble Baroness on the Liberal Democrat Benches mentioned mapping and building inappropriately on flood plains. Can my noble friend give the House an assurance today that we are ensuring that local authorities are mapping to ensure that nothing is built on zone 3b land, where building should be an absolute no-no?

[Lord Benyon (Con)]

On my noble friend’s last point, 99% of planning permissions given in the last financial year were done in accordance with the Environment Agency’s advice on whether those developments should go ahead. Over the last 50 years there have been some appallingly bad decisions and we have seen housing going where it should not. But I absolutely do not agree, if that is what my noble friend is saying, that we should say that there should be no building on flood plains, because that would mean having no new buildings in cities such as York, Leeds, London and Exeter. Of course, it is not what you build but how you build it and how resilient it is, so building in resilience is vital.

I do not know a precise date for the final stage of our implementation of the Pitt review—a point that my noble friend raised—but as soon as I can find out I will drop her a line.

[Lord Watson of Wyre Forest (Lab)]

My Lords, I wish the Minister a happy new year. Given the increased frequency and impact of flooding, how confident is he that current assumptions on infrastructure adaptation and resilience are accurate? Will he take a personal interest in proposed flood defences for the people of Wyre Forest in Worcestershire? The good people of Bewdley were promised defences by the then Prime Minister Boris Johnson but, since then, have been flooded twice.

[Lord Benyon (Con)]

The noble Lord raises an important point. I assure him that, through the various fora looking at weather patterns—not least the Environment Agency and Defra working closely together—and through our entire adaptation programme, we are changing our view of the risk, in accordance with the best available science, particularly meteorology. This is a requirement under our adaptation programme, but it is also something we have to do to make sure that our plans and the vast amounts of taxpayers’ money that go into these schemes reflect this.

An important difference that has allowed us to take many more schemes forward has been the partnership funding approach. I do not know the specifics of the noble Lord’s Wyre Forest scheme, but so many did not qualify under the value for money criteria in the past and were not built. Now that we have introduced our partnership funding scheme, with other sources of funding, planning conditions, local levies and a variety of other measures, we have seen hugely increased numbers of schemes and protections put in place. I hope the noble Lord’s scheme will benefit from that and I will raise it personally with the floods Minister to ensure that it is in the programme.

[Lord Bellingham (Con)]

My Lords, I pay tribute to the Minister for the effort he made to visit some of the residents affected and also to the Prime Minister, who went to the East Midlands and Oxfordshire. That does them great credit. I understand from what the Minister said that 2,000 homes have been severely affected and badly damaged and that the vast majority will have full insurance. However, some have not been able to get cover, for a variety of reasons. Can anything be done to help residents facing that plight?

[Lord Benyon (Con)]

I thank my noble friend for his point about visits. It is hard to get this one right. Ministers should not be on site and getting in the way while an emergency is happening—but they should also not be too late. I think my colleagues hit the sweet spot; they were able to hear from people affected, feed that through to officials and make sure that, where changes needed to take place, they did. Our job is now to make sure that we learn from this, as we do from every incident.

On my noble friend’s second point, insurance available for people at flood risk has changed dramatically since we introduced Flood Re, which has meant that households that could not get insurance can now get it. That scheme must be constantly reviewed in the light of increased risk. Alongside that, £5,000 will be available to the households he mentioned and Flood Re can also fund resilience repairs under our build back better programme, which provides up to £10,000 towards the cost of like-for-like reinstatement after flood damage.

Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024

Lord Benyon Excerpts

Wednesday 10th January 2024 Lords Chamber

Moved by

[Lord Benyon]

That the draft Regulations laid before the House on 30 November 2023 be approved.

[The Minister of State, Department for Environment, Food and Rural Affairs, and Foreign, Commonwealth and Development Office (Lord Benyon) (Con)]

My Lords, I refer to my entry in the register. The draft instruments—the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024 and the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024—were both laid before the House on 30 November. The instruments have been grouped as they are part of a package of regulations which work together to introduce the new framework for mandatory biodiversity net gain. Although biodiversity net gain is a key policy delivered by the Environment Act, some of the policy involves amendments to the planning system. I will speak to both instruments together, given their interlinks, but I will not profess to be an expert om the intricacies of the planning system and commit to writing to noble Lords on points of particular detail.

The instruments laid before the House today form part of a package of SIs that will commence the new, world-leading biodiversity net gain requirement. This is a new approach to development and land management that was legislated for in the Environment Act 2021 and had strong support across both Houses. It aims to leave the natural environment in a measurably better state than it was beforehand through requiring a 10% net gain for biodiversity on each eligible grant of planning permission. These gains must be delivered, first, through on-site habitat enhancement or creation where possible, then through off-site enhancements or through purchasing units from the market and, finally, as a last resort, through purchasing statutory credits sold by the Government.

A public consultation on the policy and implementation of biodiversity net gain was held in 2022. The government response, published at the beginning of 2023, confirmed the policy intention for mandatory biodiversity net gain and has informed the drafting of these regulations.

I turn first to the Biodiversity Gain Site Register (Financial Penalties and Fees) Regulations 2024. The Environment Act 2021 gives the Secretary of State for the Environment, Food and Rural Affairs the power to make provision for a register of biodiversity gain sites. The core purpose of this publicly available register is to record allocations of off-site biodiversity gains to developments. The register will be established by the Biodiversity Gain Site Register Regulations 2024.

This instrument makes provision for the imposition of a financial penalty and the payment of fees relating to applications to that register. This instrument provides for imposing financial penalties to help ensure that the biodiversity gain site register contains accurate information. The provision for financial penalties will encourage compliance, deter individuals from submitting incorrect information and remove illicit financial benefit—for example, through cost avoidance.

This instrument also provides for fees to be charged for different applications to the register. These applications include gain site registration, amendment applications and applications for the allocation of habitat enhancements to development. The fees have been set to achieve cost recovery for the set-up and ongoing maintenance of the register. Developers are not obliged to use the biodiversity net gain register and should first aim to achieve biodiversity gains on site before turning to off-site gains. Landowners who choose to supply off-site gains to developers must apply to register their land. We expect that they will do so only if the benefits from selling units outweigh the costs. Without these regulations setting the requirement for fees to be paid and the amount to be paid, the register would not achieve cost recovery and there would be a significant cost to the Government.

I now turn to the Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024, which have been ably drafted by the Department for Levelling Up, Housing and Communities. The Environment Act 2021 amended the Town and Country Planning Act 1990 to make provision for biodiversity net gain in the planning system. The Act specifically adds a new Schedule 7A, which sets out the statutory basis for the 10% biodiversity gain objective, the metric and the general biodiversity gain condition which will apply to those planning permissions. It also made consequential changes to other parts of the Town and Country Planning Act.

These regulations will make further consequential changes. First, they provide rules within Schedule 7A for determining the local planning authority which is responsible for the approval of a biodiversity gain plan required under the general biodiversity gain condition. Secondly, they further amend Section 73 of the Town and Country Planning Act, which enables the variation of conditions of previous planning permission to cover the circumstances when an earlier biodiversity gain plan is to be regarded as approved where the development’s on-site habitat is irreplaceable habitat. Finally, they make amendments to Section 78 of the Town and Country Planning Act for the purpose of appeals about determinations by planning authorities in respect of the biodiversity gain plan. These are technical amendments to ensure the provisions for biodiversity net gain in the Town and Country Planning Act work.

In conclusion, let me emphasise that the regulations are essential to the successful delivery of the new mandatory net gain requirement, which will help to deliver much-needed gains for nature. Once the regulations are approved by both Houses, we will lay the rest of the biodiversity net gain regulations, which we have published in draft. I commend these draft instruments to the House.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I was expecting more people than this. I thank the Minister for his introduction, and I think it is very clear that what we are looking at here are two instruments from a very major set that will finally implement the idea of biodiversity net gain, which your Lordships’ House and the other place have been debating for what now feels like many years.

Before looking at the detail of these two statutory instruments, I think that it is worth thinking about what we are talking about here. We are trying to deliver a system, however much some of us—I include the Green Party in this—have doubts about it, that means that we do not keep going backwards. As we stand in the House tonight, we are about to see the destruction of a veteran oak tree in Melton Fields in East Riding for the construction of an Amazon warehouse. I have been on the site and seen this happening. The biodiversity net gain that is being offered is “We will have some wetlands over there”—I am not quite sure where the sign that says “Birds, go that way” will be—but there is huge concern and there is still so much that we are losing. I think it is crucial that we see that.

I have a couple of questions about the instruments that I would like to put to the Minister. He talked about ensuring full cost recovery in the fees being charged. What will be the situation for projects for the public good, such as a new hospital for the NHS, a community centre or group? What provision is there to make sure that the people who can afford to pay are paying and that those community projects are not stopped but able to go ahead?

The other point which I think reporting in recent days has raised—this fits in with the levelling-up Bill that your Lordships’ House spent an inordinate of time on last year—is that we are seeing controls being put on for more than 10% biodiversity net gain, and that is overwhelmingly concentrated in the south of England, where there are local area partnerships. In terms of these instruments, but also more broadly, will there be allowance for the regional differences, the regional cost differences and, perhaps even more importantly, the regional ability to pay, in the provision in these statutory instruments?

--- Later in debate ---

Having said all that, as I mentioned at the beginning, we very much support the regulations, but some clarification in the areas that I have drawn attention to would be helpful and very much appreciated.

[Lord Benyon (Con)]

My Lords, I am very grateful for the contributions to this debate. The regulations debated here today will support the new mandatory net gain requirement, which will help secure positive outcomes for biodiversity, create better places for local communities and support a more consistent, streamlined and transparent planning process. This is very much only part of how we seek to deliver our 2030 targets, which my noble friend Lord Deben mentioned, of no net loss of species, and an increase by 2045. It is really important to make that clear.

We estimate that we are talking about around 6,900 hectares a year, but hundreds of thousands of hectares of other nature improvements are being incentivised by wider biodiversity credit schemes, carbon credit schemes and nature conservation measures that are being led through our environmental land management and other agri-environment schemes. Communities across England will benefit from new developments that work for both wildlife and people and create nature-rich places to live, while ensuring that they have the new homes that they need.

To take the point made clearly by the noble Baroness, Lady Bennett, there will continue to be a need for development under any party of government, which means that there will continue to be a risk of the loss of biodiversity. We need a system that works and is clear.

I take my noble friend’s point: I suspect that they were talking about the Natural England metric when he was at that conference. I would be the first to admit that that is a very complicated piece of work: it runs to a great many pages, and I have tried to run a competition in my head, if not in the department, about how many people understand it. The point is that, as we develop this and as those metrics are understood by more people—the people advising the businesses that seek to purchase the credits and the land managers who seek to make the land available—we will see a robust scheme that is accountable.

I will try to address the key points raised. The noble Baroness, Lady Bennett, quite rightly raised the issue of whether 10% goes far enough—why 10%? We consulted on the percentage gain to be required in the 2018 public consultation. Respondents set out varying views on the appropriate percentage gain, and there were calls for both higher and lower percentages—obviously, there will be people out there who did not want any and people who wanted a great deal more. We maintain the view that 10% strikes the right balance between the Government’s ambition for development and the certainty of achieving environmental outcomes to support the pressing need to reverse environmental decline while being affordable and deliverable for developers.

Developers and local authorities may wish to voluntarily pursue gains higher than 10%—a very good point made by the noble Baroness, Lady Thornhill. Where higher net gain percentages may be set in local planning policy, careful consideration in those events should be given to the feasibility of requirements above 10%, for example for smaller, self-build and community developments —I think that is really important. To be clear, biodiversity net gain means a strengthening, not a weakening, of the protections for the environment. The existing strong statutory and policy protections for our statutory protected sites, protected species and irreplaceable habitats will remain in place.

My noble friend talked about on-site enhancements and how they will be enforced. Local authorities will have a range of existing planning enforcement tools at their disposal, and the Environment Act includes mechanisms to ensure that commitments through conservation covenants are adhered to. The enforcing body which has entered an agreement to secure the site will play a key role in ensuring enforcement. This may be a local authority or could be a responsible body for a conservation covenant. Significant on-site biodiversity gains must be secured by a planning condition, planning obligation or conservation covenant, all of which bind the land, meaning that they apply to successor landowners as well. Off-site biodiversity gains must be secured, including management, by either a planning obligation or conservation covenant. Failure to deliver, or attempt to deliver, biodiversity net gain outcomes which are secured with conditions or obligations, subject to which planning permission is granted, can result in enforcement action by the planning authority.

The fines, along with the registration fees, will have to be reviewed as time goes by. Of course, we will see how it works. So much of this can and will need to be amended as we work it through. On the point about fines, if the kinds of greenwashers that the noble Baroness was referring to have not built the wetland or planted the trees or the wildflower meadow or whatever it is, the 30-year clock will not start until they have—so it is not only a fine but a delayed benefit to them.

The noble Baroness talked about projects for public good, which was a very good point. On the question of a hospital, the fees will be paid by the landowner, so it will not come out of the cost to the public purse, if you like. There will, of course, be a degree of management of those fees: some of them may find their way into front-ending the costs. There is a key point about nationally significant infrastructure projects: we are delaying the implementation of biodiversity net gain until next year for NSIPs because it is a more complicated matter. These are obviously much larger schemes and we want to make sure that there is biodiversity net gain—but we want to do it in the right way, so we will consult on that.

My noble friend talked about net zero. Our commitment on net zero, as he knows better than anyone, and for no net loss by 2030, are just some of those that are locked in law—we have to do it—so the Government have taken a range of measures, not least this extraordinarily exciting piece of legislation, the Environment Act, to deliver that. It is important that we see it working and we will continue to make sure that we look at all suggestions that can improve the planning system to deliver this.

The noble Baroness, Lady Thornhill, talked about monitoring. Integrating the biodiversity net gain requirement into existing planning processes is obviously what we are talking about. The Government are allowing the outcomes to benefit from existing enforcement and monitoring powers in the planning system. Planning application data is routinely published online and will describe how a development is achieving biodiversity net gain. Off-site habitat enhancement will be registered and will need to be secured, including any appropriate monitoring arrangements, through a conservation covenant or planning obligation. Planning authorities are required under the Natural Environment and Rural Communities Act 2006 to report on the actions they have carried out to meet their biodiversity net gain obligations and the details of biodiversity gains delivered or expected to be delivered.

There are some real-life examples, and here I will big-up Buckinghamshire Council, which this week has put information on its website setting out how landowners and developers should engage with it to seek to enter into Section 106 agreements to secure their land, including the estimates of associated costs. These will be negotiated through the Section 106 agreement process, but should cover the costs of the ongoing monitoring that the local planning authority—in this case Buckinghamshire —will carry out. One such estate, the Iford Estate, has already entered into Section 106 agreements to secure portions of land. In the example of Iford, it has entered into a Section 106 agreement with the local authority—the South Downs National Park Authority. Private sector marketplaces are emerging which list BNG units for sale, operating to join up landowners with developers looking to find off-site units. Examples include Addland, the Environmental Trading Platform and Savills Environmental Exchange. I think the Environment Bank is one of the leaders in this field.

[Baroness Bennett of Manor Castle (GP)]

It is interesting that the Minister chose the example of Buckinghamshire. I was referring to the apparent difference that is developing between north and south—that, broadly speaking, higher standards appear to be being set in the south. Are the Government planning to monitor the regional impacts of this, and is the north going to get the biodiversity net gain that it urgently needs? Will the Government act if it is not?

[Lord Benyon (Con)]

The legal requirement is across the country; there is no geographical lessening of the need for it. We will certainly be monitoring which local authorities we think do this properly and which do not, and that will be a matter of public record.

I should just comment on the key question of irreplaceable habitats. These are obviously England’s most valuable habitats. They have a high range of biodiversity value and are so difficult to recreate—ancient semi-natural woodland, peat bogs and that sort of thing. On 29 November, we published the draft irreplaceable habitat regulations, which set out the list of habitats to be considered irreplaceable habitat for biodiversity net gain purposes. The local planning authority must be satisfied that the adverse effect of the development on the biodiversity of the on-site habitat is minimised and that there is an appropriate compensation plan in place. The regulations also set out that losses of irreplaceable habitats cannot be compensated for using statutory biodiversity credits. It is important to note that irreplaceable habitats already have significant protection in the National Planning Policy Framework. Impacts on these habitats from development require the strongest of justifications.

I will address another point made by the noble Baroness, Lady Bennett. Off-site gains, which could be biodiversity gains, on other landholdings, or purchasing biodiversity units from the market, are part of the new hierarchy that sets out the draft regulations on biodiversity procedures. This ensures that, where impacts on habitats cannot be avoided or mitigated, compensation should be delivered either through off-site gains, as I say, or through enhancing and creating habitats on site, and, as a last resort, through purchasing statutory credits from the Government.

The right reverend Prelate the Bishop of Norwich speaks with great knowledge—I heard his outstanding maiden speech in this House. He is an ecologist, and I would say that his erstwhile career is now a growth industry, which answers some of the points he made. I do not know the exact number of local authorities that employ their own ecologists; I am very happy to seek that out and to write to noble Lords. It is a growth industry, because developers and local authorities are going to need them. There are a great many local authorities that use a contractual arrangement, and so do not employ them directly, but many still do.

--- Later in debate ---

[Noble Lords]

Oh!

[Lord Benyon (Con)]

They are warm and cuddly people, and they always bend to our will.

I absolutely reject what the noble Baroness said about the land use framework. The report that she and her colleagues produced is one of the best reports that I have read produced by a committee of either House. It is being taken extremely seriously. I understand that it is taking longer than we would like to produce our land use framework, but we are certainly not dismissive of it; we think it is an extremely valuable piece of work. She asked for an example of land that would perhaps have a lower requirement: on much brownfield land there will be very little biodiversity loss, so that is an example.

I turn to all noble Lords who raised the question of costs. We fully comply with the new burdens rules in government, and we want to make sure that local authorities are using them to their best needs. The Government have already committed over £15 million this year to assist local planning authorities in preparation for biodiversity net gain. Defra is working to make sure that the information that local planning authorities need to prepare is in place before mandatory biodiversity net gain comes into force. We know that many local planning authorities are already delivering biodiversity net gain and that there are examples of good practice; I have already cited one of them.

We are aware of a range of preparation activity ongoing. This includes increased ecological skills capacity and training, including in the biodiversity metric, evidence-gathering and a range of other areas. Defra has also funded the Planning Advisory Service to support local authority planners to prepare for mandatory biodiversity net gain, and there are 600 members in its practitioner network.

I hope I have covered most of the points raised. As confirmed in the Government’s Environmental Improvement Plan, this Government are committed to halt and reverse nature’s decline. Biodiversity net gain is a key enabler for this, giving the development industry an opportunity to work with the planning system to ensure development improves and protects our precious biodiversity, rather than further eroding it. I commend the draft regulations to the House.

Motion agreed.

Biodiversity Gain (Town and Country Planning) (Consequential Amendments) Regulations 2024

Lord Benyon Excerpts

Wednesday 10th January 2024 Lords Chamber

Moved by

[Lord Benyon]

That the draft Regulations laid before the House on 30 November 2023 be approved.

Motion agreed.