National Infrastructure Commission: Baseline Report
Debate between Viscount Younger of Leckie and Lord Berkeley
Viscount Younger of Leckie (Con)
My Lords, I congratulate the noble Lord, Lord Berkeley, for securing this debate. He is known with great respect throughout the House for his pursuit of certain causes célèbres, including matters relating to transport to the Isles of Scilly. I also know he is a long-standing advocate for the benefits of infrastructure and his speech indicated his clear focus on all the key issues, many of which I will be attempting to touch on this afternoon.
The Government recognise the transformative possibilities of infrastructure benefit here. That is why we have committed £130 billion to economic infrastructure since the publication of the National Infrastructure Strategy last year. However, it is fair to say that in past decades and under past Governments, the UK’s infrastructure has been plagued by stop-start public funding and policy uncertainty that has conspired to undermine private investment. In 2015, to help resolve these issues, the Government established the National Infrastructure Commission—which I will refer to as the NIC—to provide independent, expert advice. My noble friend Lady Neville-Rolfe was right to ask why it took so long. I hope to reassure the noble Lord, Lord Tunnicliffe, that the Government have a robust approach to infrastructure. We are focused not merely on capital spending but on long-term infrastructure planning, improving project delivery and supporting private investment. I will try to touch on those points as I go through my remarks.
I remind your Lordships of the crucial role of the NIC’s first national infrastructure assessment. Published in 2018, it set out a recommended long-term strategy for the country’s infrastructure over the next 30 years. That work directly underpinned our National Infrastructure Strategy, which we published last year. Alongside the strategy, the Government published their formal response to the commission’s 2018 recommendations, partially or fully endorsing the vast majority. Already those recommendations are becoming reality. For example, earlier this year we launched the UK Infrastructure Bank in Leeds, which is expected to unlock more than £40 billion-worth of infrastructure investment. Just over a month ago, the UKIB made its first investment with a £107 million loan to Tees Valley Combined Authority. Only yesterday we announced its first private sector investment, in subsidy-free solar energy.
I turn to the baseline report for the Second National Infrastructure Assessment, which is of course the main subject for today’s debate. The report highlights some areas where the Government have made significant progress, so let us start with that. First, on the delivery of gigabit-capable broadband, I mention briefly that, only yesterday, my flat was upgraded to full-fibre broadband, and the speed is much faster—that is just a bit of self-indulgence. The report draws attention to the fact that coverage is now at over 62% compared to just 10% in November 2019. The noble Baroness, Lady Bakewell of Hardington Mandeville, mentioned that rural broadband connectivity is lagging behind. The Government recognise the importance of gigabit-capable connectivity to people across all areas, but particularly in rural parts. We have committed £5 billion to support gigabit-capable coverage in the hardest-to-reach-areas where possible, so that is an ongoing programme and the noble Baroness raised a good point.
Secondly, on the transition to renewable forms of energy, the report points out that the share of electricity generated from renewable sources has grown from less than 10% in 2010 to almost 40% in 2019.
Thirdly, on our ambition for electric vehicles, the report mentions the Government’s pledge to end the sale of new petrol and diesel cars and vans in 2030, with all new vehicles required to be 100% zero emission from 2035. The noble Baroness, Lady Randerson, stated that there was not enough funding for buses along the same theme. I reassure her that £3 billion of new funding over this Parliament will be dedicated, to double the amount given since the 2015 spending review levels. The £525 million for zero-emission buses in this Parliament is in addition to wider support, including a green uplift in the bus services operator grant, and £1.2 billion of dedicated bus transformation funding.
The noble Baroness, Lady Randerson, also suggested that more needs to be done on long-range charging and charger ratios. The Government are making significant investments in electric vehicle charging, including £1.3 billion at the spending review 2020. That includes funding for a rapid changing fund to reduce people’s anxieties around long-range charging by rolling out thousands of rapid charges across our strategic road network. The UK has more rapid chargers per 100 miles than any country in Europe, according to a report. However, of course the noble Baroness is right to make that point, and there is always more to be done there—we all know that as drivers on our roads.
Fourthly, on drought resilience, which was raised. The report underlines that we have endorsed the commission’s recommendation that we increase drought resilience to reflect a one-in-500-year event.
Another positive aspect of the report is the NIC’s social research, which was raised by the noble Lord, Lord Berkeley. Understandably, people will always call for more and better infrastructure. However, this research shows growing public confidence that infra- structure will meet people’s needs over the next 30 years—this is perhaps excepting the views on net zero raised by the noble Lord. I will need to check back on that.
Of course, we recognise that the report also highlights some concerns, including nine key challenges on which the NIC will focus in its second national infrastructure assessment. I want to focus my remarks around three important elements of these, again raised during this short debate: net zero, flooding and transport.
First, although net zero was mentioned in rather positive terms by the noble Lord, Lord Berkeley, we recognise the report’s concerns about our journey to net zero, including in respect of decarbonising our electricity system and heating. That is why we have recently published our net-zero strategy, setting out how we plan to achieve our 2050 goals, in particular by leveraging up to £90 billion of private investment in green infrastructure by 2050.
The Government have also published the Heat and Buildings Strategy, which lays out our vision for a sustainable and affordable transition to a low-carbon heating sector. We are providing £3.9 billion over the spending review period for heat and buildings decarbonisation, including £1.8 billion for low-income households and £450 million for the new boiler upgrade scheme, which financially incentivises home owners to install heat pumps.
We have also provided significant funding to decarbonise transport. This includes confirming £6.1 billion at the spending review to support the policies and strategy in the transport decarbonisation plan. We have invested £620 million in the transition to EVs, building on the £1.9 billion committed at the previous spending review.
The noble Lord, Lord Berkeley, and my noble friend Lady Neville-Rolfe stated that there was no road map for net zero and that the UK was not reducing emissions fast enough. I note those two points. In response, I would say that the UK reduced emissions faster than any other country in the G20 between 1990 and 2019. The UK reduced its greenhouse emissions by 44% compared to just 5% for the G7 as a whole. In June 2019, the UK became the first major economy to legislate for an end of contribution to climate change by 2050. As I mentioned earlier, the recently-published net zero strategy sets out a clear pathway to reach net zero and level up the UK by supporting up 190,000 jobs in the mid-2020s and up to 440,000 jobs in the 2030s.
Lord Berkeley (Lab)
On progress on greenhouse gases and zero emissions, where does the into-the-UK part of international aviation come in this? At the moment, I get the impression that it is dumped and seen as not part of our problem. It is part of our problem.
Viscount Younger of Leckie (Con)
I agree with the noble Lord that it is part of the problem. I suspect that he may be referring to the air passenger duty and other matters. I shall write separately to him on that important matter, because I think it is fair to say that there is a balance to be struck between allowing people to travel and being sure that our aeroplane sector is fit for purpose in terms of achieving our climate change goals. I think that was probably the gist behind his question.
On flooding, we recognise that action is needed to improve surface water management as flood risk increases, so we have commissioned the NIC to conduct a study into the management of surface water flooding in England, including the role of nature-based solutions. In addition, the Government have updated their partnership funding arrangements, enabling more surface water schemes now to be delivered via their £5.2 billion investment programme.
Finally, I turn to urban connectivity, as part of the wider transport issues that I mentioned earlier. We recognise the challenges in respect to this highlighted by the report. That is why in the Budget we committed £5.7 billion over five years for London-style integrated transport settlements that will transform local networks in eight English city regions, and we have announced £1.2 billion over the spending review period for bus transformation deals.
The noble Lord, Lord Berkeley, asked whether the Government should consider the challenges and costs of delivering major infrastructure projects. He is quite right to highlight this. That is why the Chancellor set up Project SPEED to ensure that spending decisions are informed by deliverability concerns.
Moving quickly to next steps—with the Committee’s indulgence, I will go on beyond my time, but not too far—our work to create an infrastructure revolution is a remarkable cross-government effort. The Government have an established process for formally responding to the NIC’s recommendations. Once it has published the second national infrastructure assessment in the second half of 2023, we will respond as soon as practicable, although, as I have shown today, we are already engaging on these issues.
The noble Baroness, Lady Bakewell of Hardington Mandeville, asked about flood defences and where the £5.6 billion is being invested. Funding is distributed consistently across the country to wherever the risk is greatest and the benefits are highest. Defra published its flood and coastal erosion risk management investment plan in July 2021, as she may know. It provides an indicative regional breakdown of spend, including between £620 million and £750 million of investment in the north-west and £680 million to £830 million in Yorkshire and the Humber.
The noble Lord, Lord Tunnicliffe, asked about funding and urban connectivity. The Government have provided £4 billion of additional emergency funding to support TfL through the pandemic to address urban congestion. We have announced £5.7 billion to support transport networks.
I will conclude with a few ad lib-type remarks, as I want to pick up on an interesting point made by the noble Lord, Lord Berkeley, about our reflection on going to Waitrose to pick up a box of matches. We should be sure, as part of this debate on the NIC, of the vision we are looking at. This is probably not government policy, but we should look ahead—probably not too far—at how we might get our box of matches. Surely we would order a drone, which would deliver it to us. Or, if we were going to go to Waitrose, we would talk to our watch and ask a car—not our car but any driverless car—to come to our door. We would then get into the car with a coffee and a newspaper, be driven to Waitrose to buy our box of matches and then be driven back. The car would then disappear into the ether. We would then take our box of matches—perhaps rather cynically, I wonder what it might be for. Perhaps it is to light your fire in the drawing room, which adversely affects CO2, so maybe we should not go there. Anyway, the serious point is that we need to think quite positively about the changes that will definitely come to the way that we live. The noble Lord, Lord Berkeley, spoke about society and our way of life. He makes an extremely good point.
To conclude, this is an extraordinary moment—
Ajax Programme
Debate between Viscount Younger of Leckie and Lord Berkeley
Viscount Younger of Leckie (Con)
My noble friend makes a very good point. Perhaps I can add to what he was saying: this project represents the biggest single order for a UK armoured vehicle for over 20 years. Incidentally, the project supports approximately 4,100 jobs across more than 230 UK suppliers. It is now in its production and support phases, with the Army having taken formal delivery of the first Ares capability drop 1 vehicles in July 2020. However, it is more than that, as my noble friend said. This is a new and larger vehicle. It is modular and, over a predicted 30-year lifespan, it will be capable of being built on. It will be the backbone of the future digitised modern force, with unparalleled protection levels, incorporating hard-won lessons from recent conflict in Afghanistan and Iraq. Perhaps that adds to the complexity of this matter. I reassure the House again that these outstanding issues need to be addressed.
Lord Berkeley (Lab) [V]
My Lords, I also welcome my noble friend Lord Coaker to the Front Bench. His initial question today indicates his enormous expertise.
I am surprised that we have got this far with this new development. We have seen the new report, apparently from the independent Infrastructure and Projects Authority, which says that this vehicle cannot reverse— perhaps we do not need to any more—fire on the move or go more than 20 miles an hour, and that the soldiers are limited to an hour and a half inside it because of the noise. What use is that on a battlefield? Will they put up a white flag and change staff before they continue?
I remind the House that the IPA has said that the delivery of the project “appears to be unachievable”. That is rather different from what the Minister has just told the House, which is that there are no plans to delay and that we will go on with it and, presumably, continue with the order of 580 tanks, which will all be deployed this year. Is it not time that we cancelled the whole thing and saved the Government, the taxpayer and ourselves several billion pounds of taxpayers’ money?
Viscount Younger of Leckie (Con)
I need to put the noble Lord right on a number of points. First, on the IPA report, I remind the House that this came out as a result of a leak, and a full inspection is going on as to how that leak came out. On the speed restriction, I reassure the noble Lord that Ajax is capable and will be capable of speeds of up to 70 kph, but an initial limitation of 30 kph was introduced as a control measure for newly qualified Household Cavalry Regiment crews. That is in line with what I said earlier about this being the demonstration phase of this enormous project. On the rear step, the vehicle is capable of reversing over a vertical 0.75-metre step. Following some initial issues, this was restricted, again for the same reasons. Similarly, on the noble Lord’s point about firing on the move, the vehicle can and does fire on the move. The MoD has yet to certify the platform to perform this, which is also in line with what I said earlier. I reassure the House again that this major project is on track and will be delivered on time.
Rail Disruption: Social and Economic Impacts
Debate between Viscount Younger of Leckie and Lord Berkeley(3 years, 7 months ago)
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Lord Berkeley (Lab) [V]
My Lords, I am grateful to the noble Baroness, Lady Randerson, for asking this Question. I understand from the technical press that 86 out of 93 of these affected trains have either a failure of the yaw dampers, which connect the bogie to the body shell—they are quite important parts—or the lifting points, with cracks of up to one foot long. On the routes affected this clearly means that there are very few, if any, trains. These are trains designed and procured by the Government—
Viscount Younger of Leckie (Con)
I am sorry to interrupt the noble Lord, but could he keep his question succinct?