Finally, we have made changes to the nature restoration fund. Before I detail the various improvements made, let me take this opportunity to remind the House why part 3 of the Bill is so important. Put simply, when it comes to development and nature, the status quo is not working. It is not working for development because constraints like the requirements for nutrient neutrality in sensitive river catchments are stifling the building of new homes and infrastructure. Equally importantly, it is not working for nature, because the need to meet environmental obligations on the basis of site by site assessments and interventions all too often does little to drive the recovery and restoration of our protected sites and species.
Andrew George Portrait Andrew George (St Ives) (LD)
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Is the Minister not concerned that he has lost the audience among wildlife organisations and trusts that say they are offended by Ministers’ portraying nature as a blocker to development rather than an enhancement to life and the economy, and are now asking for part 3 of the Bill to be scrapped?

Matthew Pennycook Portrait Matthew Pennycook
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I will come on to address that call, which I know is being made, but in general the Bill aims for, and I have always focused on, a win-win for development and the environment. We had extremely productive engagement with ENGOs in the development of the Bill, and we continue to have fruitful conversations with them, aside from the campaigns that I know are being fought out there in the country and in some of the national media.

While critics of this part of the Bill may be content to maintain the suboptimal status quo, in full knowledge of the fact that it is frustrating the building of new homes and failing to drive the restoration of nature, this Government are not. To those who believe this Government might buckle and scrap part 3 of the Bill entirely, I simply say, “You have underestimated the resolve of this Government and this Minister.” The case for moving to a more strategic approach that will allow us to use funding from development to deliver environmental improvements at a scale that will have the greatest impact in driving the recovery of protected sites and species, is compelling.

That is why so many organisations indicated their in-principle support for the purpose and intent of part 3 when the Bill was first introduced.

--- Later in debate ---
Meg Hillier Portrait Dame Meg Hillier
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If I move on to what will happen, I think the hon. Gentleman will be reassured. There is a bigger point here, which I do not have time to elaborate on in this debate. This change is part of a trend of Government not appreciating the role of thoughtful, thorough scrutiny from outside the Whitehall bubble—this is a disease affecting Governments of all parties—and of scrutiny from MPs with detailed knowledge of the subject matter. The hon. Gentleman, of course, has a strong track record on this issue outside this place, from before he became a Member of this House.

Those who scrutinise through Select Committees often understand the system, and how a change in policy or law can have a different effect within policy guidance because of the interactions it will have. The worst-case scenario here would be that a Committee did not have time to examine a proposal, or, if it did have time, that the Government ignored the recommendations. I am grateful to the Minister and his officials for the time they have spent engaging with me and the Clerk of the Liaison Committee, on behalf of the Select Committees, to try to mitigate those worst-case risks. In theory, these changes could sound quite reasonable, but in practice, there is a risk that the Government could lose a useful voice that also reflects the views of other bodies. Select Committees also get the chance to question Ministers in public, which is important for transparency and accountability. Select Committees can also give force to the views and expertise—shared in public, very often orally—of bodies with knowledge of the technical changes that could be introduced and wrapped into new or revised policy guidance.

We have all been there when, at the Dispatch Box, a Minister promises that another Minister will attend a Committee and be questioned, but we are talking about having as little as six weeks to work with. We have all been in a situation in which a Minister’s diary is so busy that it is difficult for them to attend, and that would not be good enough in this case. I hope the Minister will give some reassurance that he will, through the normal channels in Whitehall, ensure that every Department is aware of the requirement for a relevant Minister to attend within a period that allows the Committee to produce a report or respond to the Government, which does not mean at the end of a six or 12-week consultation period.

I hope the Minister can give me those reassurances. I would like him to be very clear on the record. I acknowledge the efforts made in Committee to talk about this, and some of the pledges made then, but it is important that these changes and the Minister’s views and pledges are made clear in this Chamber. In Committee, the Minister said that

“Ministers will make themselves available to speak at the Committee during that period, in so far as that is practical.”

He also said that

“not all select Committees will respond in the relevant period, therefore elongating the process”.––[Official Report, Planning and Infrastructure Public Bill Committee, 29 April 2025; c. 103.]

I can clarify for and reassure the Minister that it is the intention of those on Committee corridor to ensure that these things are dealt with in a proper and timely fashion.

I hope that the Minister will ensure both that Ministers attend in a timely fashion, and that there is a proper approach that ensures that Committees get advance notice of a new planning policy statement or revised statement, so that they have time to plan and get their ducks in a row in order to enhance the work of Government by giving them, if necessary, critical-friend comments. Scrutiny in whatever form is absolutely vital. If, as I hope, the Minister will put that on the record today, I will not push my amendment to a vote. It is vital that parliamentary scrutiny be protected as much as possible.

Andrew George Portrait Andrew George
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It is clear that we are today debating methodologies, rather than values. Certainly, I do not dispute the Minister’s values at all; we all want to see the growing need met, and the environment protected. The question that we are debating today is the best methodologies for achieving those outcomes. I have submitted a number of amendments covering three areas, which I will rattle through as quickly as I can, all of which support the themes that my hon. Friend the Member for Taunton and Wellington (Gideon Amos) advanced today, and indeed that he has pursued in Committee in previous weeks.

Amendment 148 relates to housing targets. It proposes allowing local authorities to adopt targets that reduce housing need, rather than simply targets to build homes. House building targets are in many areas part of the problem, rather than the solution to housing need. For example, since the 1960s, Cornwall’s housing stock has been among the fastest growing in the United Kingdom. It has almost trebled, yet housing problems for local people have got significantly worse over that time.

Simply setting house building targets results in massive hope value being attached to every single community around Cornwall. Having worked as a chief executive of a charity that tries to build affordable homes, I can say that establishing house building targets makes it more difficult to address the housing needs of local people. Targets that are about reducing need would change the dynamics of the planning system in places that face these problems.

Unfortunately, the approach to house building targets that has been adopted by parties over the previous decade is built on the delusion that private developers will collude with Governments to drive down the price of their finished product. We can no longer carry on in that delusion. We cannot and should not pursue counterproductive methodologies. Amendment 149 and new clause 108 are consequential on the fundamental change proposed in amendment 148.

My hon. Friend the Member for Taunton and Wellington has spoken about introducing a new class order to address the prevalence of non-permanent occupancy in some areas. The previous Government were looking at bringing in a new class order for holiday lets, but that should be extended to second homes and all homes of non-permanent occupancy. New clause 92, which is consequential on new clause 91, proposes introducing a sunset clause for planning permission to ensure that there is not a perverse incentive for people to apply to change a property’s use in order to enhance the value of their property when they sell it. This is not about the politics of envy but the politics of social justice. I think those who represent areas or constituencies with large numbers of second homes properly understand how these things operate.

Finally, I tabled a number of amendments relating to affordability, including new clause 89 on affordable development and new clause 90. New clause 89 would prohibit cross-subsidy—or at least open-market development—on rural exception sites. Those sites should not be called rural exception sites; they should be called rural norm sites. That should be the methodology for delivering affordable homes in rural areas. It should be driven by wanting to have affordable homes in such locations.

Steff Aquarone Portrait Steff Aquarone (North Norfolk) (LD)
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My hon. Friend is making an excellent case. In North Norfolk, people want house building that genuinely meets local need and helps address the housing crisis, which is affecting everyone in my constituency. On affordability, does he agree that we need to empower local authorities to define what “affordable” means in their areas?

Andrew George Portrait Andrew George
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My hon. Friend is right about that. Affordability is defined for rented accommodation—either 80% of market rent or the local housing allowance, whichever is lower—but it is not sufficiently defined for the intermediate market in rural areas, which includes shared ownership and discounted sale. There are ways that affordability can be achieved, and that should be done within local planning. We should give local authorities the power to define, for the purposes of their communities, what is and is not affordable, and we should strengthen the role of neighbourhood development plans in that respect as well.

New clause 90 would put a cap on developer profit. A lot of people do not understand how planning authorities make their viability assessment when developments are brought forward. There is an assumption of a developer profit of 20%, but when developers ask for amendments to the way that their planning applications are viewed, they will often have undertaken two different valuations, and will come with both. One they present to the planning authority, and one they keep in their back pocket. One of the valuations comes with violins, and a sob story about how they will lose out because of the development, and how they are doing it only for the community. The other valuation is the reality. We know that they are making a killing out of other people’s poverty.

Olivia Bailey Portrait Olivia Bailey (Reading West and Mid Berkshire) (Lab)
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I am pleased to support this important Bill and the Government amendments to it, which will deliver the housing, infrastructure and environmental protections that my constituents need.

First, I welcome the Government’s enhancements to the environmental delivery plan. They provide greater clarity, legal safeguards and appropriate flexibility to ensure that the plan restores and enhances our precious natural habitats. The current piecemeal approach to offsetting environmental harm is not working. The Government’s sensible approach maintains existing protections for nature, and adds to them with the ability to fund high-impact strategic nature recovery projects. I am very lucky that there are several significant nature recovery projects in my constituency, such as Sulham woods and meadows, which I had the pleasure of visiting last week. This project is maximising biodiversity on 130 hectares of marginal arable land, and is planting 24,000 trees, 4 km of new hedgerow and a new walnut orchard. We need more big projects like this.

I would like to highlight the opportunity the Bill presents for our country’s chalk streams. I am proud to represent a constituency that boasts many wonderful waterways, including the entire length of the River Pang—a beautiful, winding chalk stream that is a point of local pride. It is said to be the inspiration for the “Wind in the Willows”, and it is loved by families, dog walkers and anglers alike. But the precious Pang is in crisis. In just a few short years, the water quality has plummeted to poor. Citizen scientists and anglers testing the river, such as Professor Mike Wilson and Pete Devery, consistently report samples with completely unacceptable levels of phosphate and E. coli. The phosphate pollution from Thames Water sewage works is so bad that luminous green from the resultant algae can be seen in satellite images.

I thank all the campaigners, citizen scientists and volunteers with whom I have been working throughout my campaign to restore the Pang. I also thank the ARC project, the Rivers Trust, the Angling Trust, Pang Valley Flood Forum and Berks, Bucks and Oxon Wildlife Trust, as well as all members of the Pang Flagship Chalk Stream Partnership, which supports a range of initiatives to restore the Pang. They are all dedicated advocates whose restoration efforts are making a real difference. Chalk streams are rare and valuable habitats. Their mineral-rich, stable waters are home to a plethora of species.