Transport Act 2000 (Air Traffic Services) (Prescribed Terms) Regulations 2025

Lord Hendy of Richmond Hill Excerpts

Monday 14th July 2025 Grand Committee

Moved by

[Lord Hendy of Richmond Hill]

That the Grand Committee do consider the Transport Act 2000 (Air Traffic Services) (Prescribed Terms) Regulations 2025.

Relevant document: 28th Report from the Secondary Legislation Scrutiny Committee

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, the UK’s airspace is a vital piece of our national infrastructure that is essential to economic growth, connectivity and national resilience. Last year, there were more than 2.4 million flights using UK airspace, but despite a significant rise in air traffic demand, the structure of our airspace has remained largely unchanged since the 1950s, when there were around 200,000 flights a year. This means that today’s flight paths remain largely based on a system that relies on a network of outdated ground-based navigation beacons. As a result, aircraft today fly less efficient routes and are unable to take advantage of modern aircraft technology and performance. This leads to increased fuel consumption, a greater risk of delays and, as a result, higher carbon emissions. The National Air Traffic Service—NATS—has estimated that, without modernisation, by 2040 one in five flights could face delays of more than 45 minutes.

A plan to fix this has been set out by the Department for Transport and the Civil Aviation Authority—the CAA—in the form of the airspace modernisation strategy. The regulations being considered today are one part of enabling that plan to happen. Modernised airspace will enable greater capacity in the air, improve resilience to disruption and help UK aviation to achieve net-zero greenhouse gas emissions by 2050.

The draft regulations will be made under powers conferred by the Transport Act 2000. Under that Act, the Secretary of State may modify prescribed terms in an air traffic services licence. This instrument designates as prescribed any term specifying air traffic services authorised under a licence and any term specifying the area in which those services may be provided. In practice, this will allow the Secretary of State to modify the terms in the air traffic services licence granted to NATS (En Route) plc, known as NERL, in order to create and fund a new UK airspace design service, or UKADS for short.

The airspace modernisation strategy is a long-term plan designed to ensure UK airspace remains safe, efficient and capable of meeting future demands. It includes changes to flight paths to enable better use of the UK’s airspace.

The approach adopted in the UK until now has seen individual sponsors—usually airports—design and progress their own proposals for airspace change through the CAA’s CAP1616 airspace change process. This approach recognises the crucial role that airports play in airspace design, but also creates fragmentation and delay, particularly when multiple airports have overlapping airspace designs and competing priorities. This is especially an issue around London, which currently has 11 airports in the programme and some of the most complex airspace in the world.

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[Lord Moylan (Con)]

My Lords, in general we welcome this statutory instrument. We welcome the prospect of a more rational organisation of airspace—who could do otherwise? However, there are considerable problems and the Minister needs probing on some of them. I am grateful to my noble friend Lady Foster of Oxton, who is not in her place because she is detained on a train that has been diverted and which has delayed her. She would have been here; as noble Lords will know, during her many years in the European Parliament, she worked on all the Single European Sky legislation. She has supplied me with some questions, and some of my speech has been helped by her: I want to acknowledge that, because that has been very useful.

The first question has to go to cost. How much extra will the airlines have to pay, over and above their current payments for air traffic control services? They are going to be recharged for this. Is it going to be a smooth sum, or will it be lumpy and go up and down as costs are incurred? The Minister says it will be small and that, indeed, they may save money in the long term, once it is all done. However, there are so many things that the Government say are going to be small and will save you money in the long term, but they never do. So can he be more precise than simply saying “small” and give us a better clue of how much it will be, perhaps as a percentage of what they currently pay?

Another question has to do with the timescale for achieving this; here, I refer to the comments of the noble Baroness, Lady Pidgeon. It looks as though it will take years, not simply because of complexity—we grant that the work will be complex—but also, if one looks at page 5 of the Explanatory Notes that accompany the statutory instrument and the number of stages that have to be gone through to achieve a CAA decision on airspace change, it could take many years to do the work. Can the noble Lord give an estimate of how long it might be before, even for the London area, we see these changes brought into effect?

Returning to the charges for a moment, will foreign carriers that enter UK airspace be asked to pay towards this? If so, how will they be charged? Then there is the big question of how these changes are going to be integrated with neighbouring airspace and air traffic control arrangements, particularly the Single European Sky arrangements. Do they need to be, perhaps because they are en route? It might be that they are wholly within domestic airspace and that integration is therefore not needed, but some words from the Minister on that when he comes to reply would be helpful.

There is another question, about skills. I do not doubt for a moment that many of the people involved in airspace planning in the UK are very skilful, but UK Research and Innovation’s Future Flight Challenge said:

“The skills and knowledge needed for the airspace designers for any ACPs associated with enabling new airspace users will likely be different to the airport based changes”


to which we are accustomed. Where are the skills going to come from? Can we be guaranteed that we will have the right skills and the right people in place to do this work in a timely fashion?

Next, I want to build on some remarks made by my noble friend Lord Kirkhope of Harrogate, who referred to general aviation and smaller airports—he did not refer to smaller airports explicitly, but I shall. With this new all-singing, all-dancing, powerful body that will set these new rules for flights, it will be very easy to ignore the particular needs of smaller airports. I note that, in the consultation so far, there have been some very worried remarks from airports such as Biggin Hill and Farnborough about how their interests are going to be looked after as this work proceeds. Again, some consolation from the Minister would be very helpful.

Finally, I come to the public. Any change in flight paths can have a devastating effect on communities that live under those flight paths, particularly if they are close to an airport. The question of public engagement by NERL as it proceeds with this work is going to be crucial to its successful implementation. I would like to hear the noble Lord say that that there will be a plan from the outset for transparent public engagement on the proposed changes, and the possible changes, so that communities, local authorities and their representatives can be fully engaged. He may say that this could make it difficult to get the work done, but my view is that we have a choice: either we tackle this problem early on and hope to deal with it as we proceed, or we proceed in relative silence, with a lack of transparency, and run into a massive problem at the end, a problem that might, in various locations, be so powerful that it results in making the changes politically unimplementable. I would like to hear about the public engagement strategy, because of the powerful effect that these changes might have on local communities; otherwise, if the Government can pull this off, it will take many years and it will improve things, but there is a great danger, in my view, of it all going horribly wrong somewhere along the line.

[Lord Hendy of Richmond Hill (Lab)]

My Lords, I thank all noble Lords for their consideration of these draft regulations. I will now attempt to respond to the specific points raised.

I was pleased to hear the noble Lord, Lord Kirkhope of Harrogate, welcome these proposals. He referred to general aviation, as did the noble Lord, Lord Moylan. We recognise the key role of general aviation and the value that it brings, both economically and as a pipeline for people to learn to fly. The UKADS will take account of the needs and views of general aviation as it develops its designs. Of course, London has some of the most complex airspace in the world, and the UKADS will provide the guiding mind to help deliver modernisation in this very complex area.

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[Lord Moylan (Con)]

The question about timescale was not about when the work would begin; rather, it was, I think, about when it was likely to result in some fruit.

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord for his intervention. I will write further on what we can say about the projected timescales of conclusion. It is enough to note for now that this work is extraordinarily complex, particularly since we are seeking to address the airspace around London, which is one of the world’s most congested spaces. I will write to all noble Lords on what we currently envisage the timescales of this to be, so far as we can estimate them.

I was delighted to hear that the noble Baroness, Lady Pidgeon, also welcomes this statutory instrument. In respect of local communities, which are clearly very important, aircraft noise is a considerable issue in some communities. I should declare my interest in that I live in Richmond, so I am familiar with the circumstances of this—although I have got used to it, as I did when I lived in Hayes and Ealing when I was growing up.

The first thing to say is that modernisation is expected to benefit those who use and are affected by UK airspace, including residents living near airports. The UK ADS will progress airspace change proposals through the CAA’s CAP1616 airspace change process, as current sponsors do now. This includes requirements to engage with local communities and to factor in environmental considerations. Airports will continue to play an important role in strengthening community relationships by working in partnership with the UK ADS to deliver consultations and to ensure that local voices are meaningfully represented. The CAA and the department expect, by the September of this year, to consult on a package of changes that will make the process for airspace design decisions more proportionate. People affected by airspace change will continue to have a say and any changes will retain the important principles of a transparent, evidence-based process.

Airspace modernisation is expected to result in a further reduction in the average noise levels per flight, as aircraft climbs and descents could become quicker and quieter with route changes that better utilise the capabilities of modern aircraft. Modern technology and navigation systems also make it possible to set much more accurate flight paths, which navigate more accurately around population centres. However, noise impacts will also depend on other factors, such as planning decisions, traffic growth or airline route choices. Airports will still be expected to develop and implement robust noise action plans, which will be subject to oversight and review by my department and the Civil Aviation Authority.

The noble Baroness, Lady Pidgeon, asked whether the new body could be subject to freedom of information requirements. It will be a body in private hands, but the Civil Aviation Authority and the Department for Transport will be subject to FoI requests. She, too, asked about the timescale. I have already said that I will write to noble Lords to make an initial foray into that area.

On the questions raised by the noble Lord, Lord Moylan, and the nature of the charges, in November 2024, the Civil Aviation Authority set out illustrative costs of approximately £20 million per annum. This is broadly equivalent to approximately 2% of the 2024 UK en-route charges paid by airlines—for illustrative purposes, this is approximately £7 per flight or 5p per passenger. The CAA has taken into account feedback received and is currently consulting on detailed proposals for the new charge, with final charges depending on the chosen regulatory model and actual service costs.

The noble Lord asked whether charges will be paid by foreign airlines: they will. They will pay through the existing industry mechanisms, the same as the en-route rate paid for services today. He asked about skills. This is a challenge around the world. UKADS and NERL have skills and facilities in house. We will maintain what we have, and by creating a new guiding mind, we will enable better use of the skills and experience we already have in house. I will write to the noble Lord further about integration with the European system.

I believe I have answered all the points that have been raised, but if there are any further points, I shall be happy to write to noble Lords.

Without these regulations we will not be able to establish the UK Airspace Design Service and deliver the benefits that airspace modernisation can bring. Those measures will help us deliver fewer delays for passengers and quicker, quieter and cleaner flights over the UK. This will lead straight into the Government’s commitment to innovation, sustainability and economic growth. I hope noble Lords will join me in supporting these measures.

Motion agreed.