Planning and Infrastructure Bill

Baroness Scott of Bybrook Excerpts

2nd reading
Wednesday 25th June 2025 Lords Chamber

[Baroness Scott of Bybrook (Con)]

My Lords, I declare my interests as set out in the register as vice-president of the Local Government Association.

We on these Benches support many of the Bill’s principles and ambitions, several of which build on work that we led in government during a period of record housebuilding. While not perfect, the Levelling-up and Regeneration Act is a step forward, streamlining the planning system and focusing on local priorities. As a Minister, I recognised the urgent need for more homes, and I remain just as committed today to driving practical action to meet that need.

In 2019, the Conservative Party committed to delivering 1 million additional homes over the course of that Parliament. In 2024, before the general election, we delivered on that commitment. The Labour Party has now committed to delivering 1.5 million homes over this Parliament, and it is essential that it delivers on that manifesto commitment.

As the Bill progresses through this House, we will raise serious concerns: the removal of councillors’ voting rights on individual applications; sharply increased housing targets in rural areas, without sufficient protection for villages; the shift to strategic plans; and the questions over the deliverability of the 1.5 million homes target. That figure appears to be little more than the Deputy Prime Minister’s arbitrary aspiration. Announced in the other place without a road map, without detailed plans and, ultimately, without a credible delivery mechanism, the target lacks the very foundations required to make it achievable.

There are, quite rightly, widespread questions about the target’s deliverability, particularly in light of the February S&P Global UK Construction Purchasing Managers’ Index, which reports one of the sharpest monthly declines in housebuilding and construction on record. Furthermore, the joint report from Savills, the Home Builders Federation and the National Housing Federation estimated that the Secretary of State is likely to fall short of her target by as many as 500,000 homes.

Doubts about deliverability were only compounded by the recent spending review. The Chancellor’s announcement was heavily backloaded, with limited short-term impact; most of the uplift comes after 2030, with meaningful increases not projected until 2035-36. The headline figure, spread over a decade, goes beyond this Parliament and will have to withstand numerous fiscal events from a Government so often keen to change their mind.

There is, as yet, no formal multiyear budget commitment. It is a pledge, not a statutory allocation. As the Institute for Fiscal Studies put it, the £39 billion figure is meaningful only if future spending reviews confirm it. Even if the workable aspects of the Bill are able to deliver more homes, the Government must indicate how this funding will deliver their pledge in this Parliament.

The Bill also impacts our natural environment and rural communities. Later in this debate, my noble friend Lord Roborough will outline why, from these Benches, we view Part 3 of the Bill as a particular cause for concern. The proposed nature restoration levy may, to some sitting in an office in Whitehall, seem like a welcome simplification of the environmental conditions attached to the planning system. But in reality it appears to water down existing protections, and that is not a solution. The Official Opposition want to see the right homes in the right place, without weakening our position on nature restoration and appropriate environmental protections.

There are important questions that the Government must answer. What safeguards will ensure that the levy is proportionate to the environmental impact and does not simply become another tax or barrier to development? What is the expected timeline for implementing the environmental delivery plans, and have the Government factored in potential delays, including the possibility of judicial reviews? We look forward to the Minister’s reflections on these points. Our assessment is that it could take some years from Royal Assent before the environmental delivery plans begin to make a real-world impact. If the Government believe otherwise, we would welcome reassurances on this.

On outcomes, concerns persist. The Chartered Institute of Ecology and Environmental Management has warned that this system risks the immediate loss of natural capital, with any benefits only realised decades later. We hope the Government can provide greater confidence that this approach will deliver meaningful and timely results for the environment.

If the Government are now concerned with the issue of nutrient neutrality, perhaps I might draw their attention to the amendments we tabled during the passage of the Levelling-up and Regeneration Act. Regrettably, the Government—then in opposition—chose to vote them down, thereby defeating the proposition. I would, of course, be more than happy to assist the Ministers by returning these amendments to the attention of the House, in the hope that even at this stage the Government might now reconsider their position.

Additionally, this Bill touches on the crucial area of energy. My noble friend Lord Offord will speak with authority on this subject later in the debate. However, I will briefly set out why we see it as so vital. The UK continues to face some of the highest electricity costs in the world, an issue that poses a serious barrier to growth. We therefore welcome commitments to energy infrastructure and support any measures that aim to reduce energy costs. This must go hand in hand with proper community consultation, particularly regarding the installation of overhead cables and new pylons. Finally, we must ensure that we are developing a diverse and resilient energy mix, one that provides stability and equips us to meet the challenges of an increasingly uncertain world.

On planning, the Minister is correct that we are deeply concerned about the proposed national scheme of delegation, which would remove councillors’ ability to vote on individual planning applications. Is the Minister not concerned about the systematic removal of layer upon layer of democratic oversight? Democratic accountability matters, especially when it comes to housebuilding. Local consent, legitimacy and trust are essential to deliver not just more houses but the right houses.

When local communities and their elected representatives have a meaningful role in the planning process, housebuilding is seen as something done with people, not done to them. Strip that away and you risk generating opposition, misdirecting development and ultimately building fewer homes. We want the right homes in the right places, and the Government need to bring communities with them if they are to deliver that. When communities are engaged and can see the shape and benefit of new housing, whether through affordable homes, infrastructure improvements or environmental safeguards, public support increases and delivery becomes more achievable.

We are particularly concerned at the proposed model of strategic planning. It could be—and is being—used to shift urban housing need into our rural areas. This is especially troubling in light of the disproportionately high increases in housing targets assigned to those rural authorities. The Secretary of State has raised the national housing target by 50%. Residents might reasonably expect that their local targets have increased by a similar amount, but that is far from the case. According to the House of Commons Library, in major urban conurbations, housing targets have risen by an average of 17%. In predominantly rural areas, they have increased by 115%.

To illustrate, London’s target is down 12%, Newcastle down 15%, Birmingham down 38% and Coventry down 55%. Meanwhile, Wyre Forest and New Forest have seen their targets doubled. Westmorland’s target has increased by almost 500%. This is neither fair nor sustainable. It erodes local trust and places significant pressures on our rural services, infrastructure and landscapes.

Worse still, it undermines the very reason we need more homes in the first place. High housing costs in major towns and cities act as a major barrier to interregional mobility. For low-income houses, households and renters, housing affordability creates a form of price lock-in, preventing them accessing areas with greater employment opportunities. If we are serious about boosting growth and supporting opportunity, we need the right homes in the right places. We need homes where opportunities are, and we need local representation to be involved in the process of building those homes. We therefore urge the Government to rethink this approach and to restore a meaningful role for democratic decision-making in the planning system.

From these Benches, we warmly welcome the Government’s greater emphasis on the local plans. A plan-led system is the right approach, and we recognise the effort to ensure that communities have a stronger voice in shaping development. However, we see opportunities to build on this. In particular, we would like to explore more ambitious support for small builders and self-builders, an important part of a diverse and resilient housing sector. The current 10% site allocation for such developments is a positive step, but we support the Federation of Master Builders’ suggestion that this could be increased to 20%. We also welcome consideration of an expanded role for Homes England in supporting microbuilders, who often face particular barriers to entry.

I turn briefly to the issue of grey belt. While we appreciate the intention to make better use of underused land, concerns remain about how these changes may impact the wider countryside, particularly village identity. Although this is not directly part of the Bill, it clearly interacts with the Bill, and we hope Ministers will continue to reflect on the balance between flexibility and long-standing protection of rural communities. There is also a risk of unintended urban sprawl. This would place significant pressure on our local infrastructure and services. We should prioritise the proper use of our existing urban centres, bringing empty properties back into use and supporting densification where appropriate to make the most of the space we already have.

Our aim in engaging with the Bill is not to obstruct its objectives but to contribute constructively to its success. We will bring forward amendments that are designed to strengthen the Bill’s ability to deliver well-designed, affordable homes, particularly for those on lower incomes and first-time buyers, while ensuring that local voices, rural character and environmental safeguards remain respected.