Planning and Infrastructure Bill (Fifth sitting)

Paul Holmes Excerpts

Tuesday 13th May 2025 Public Bill Committees

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

Thank you, Mrs Hobhouse. On that cheery note, it is great to be back in Committee this morning.

The clause is about long-duration electricity storage, or LDES, which is an incredibly important part of an electricity system, allowing us to store cheap renewable energy when the wind is blowing and the sun is shining, and to generate electricity when people need it most. It is a crucial part of our clean power mission.

Across Great Britain, we already have 2.8 GW of LDES on the grid. I have had the pleasure of visiting some pumped hydropower stations that have been part of our system for decades. They allow excess electricity to pump water high up to a mountain reservoir, where it can be released when we need it to drive turbines and generate electricity. The most recent of those sites, however, was completed more than 40 years ago. The clean power 2030 action plan suggests that we need another 1.2 GW of LDES in the next five years. The National Energy System Operator suggests that we could need up to 15 GW by 2050, so a significant increase on where we are today.

Despite low operating costs and high system-wide benefits, which in 2024 were estimated at £24 billion, the large up-front capital costs to build such stations in the first place, and the revenue uncertainty over such a long lifespan of an asset, have deterred private investment in LDES over the decades. The clause therefore introduces a cap and floor scheme to develop new long-duration energy storage in Great Britain.

Those wishing to develop an LDES asset will be able to apply to Ofgem for protected revenues, conditional on satisfactory delivery and operation and on sharing excess profits with consumers. That provides the revenue certainty needed for investors, giving the green light for the next generation of those important assets. We expect—we have set out deliberately—that this will be technology-agnostic. We therefore expect that we will have more pumped hydro, as well as more novel technologies such as liquid air energy storage.

The clause imposes a duty on Ofgem to establish and operate a cap and floor scheme to encourage the development of LDES assets across Great Britain. The clause also defines the minimum eligibility requirements for the scheme: assets will need a minimum power output of 50 MW, and to be able to discharge at full power for eight hours without recharge. Simply meeting those requirements, however, will not guarantee success, and Ofgem will only select the projects that are most useful for system-wide benefits and for consumers. The clause gives the Secretary of State the power to update that definition by regulation. It also defines in broad terms how Ofgem will set the cap and floor, and how it will fund floor payments.

This is a really important step. As I say, after 40 years of not building long-duration energy storage in this country, we are incredibly excited to be building it once again. It is also crucial to how we deliver the clean power system in the future. I commend the clause to the Committee.

[Paul Holmes (Hamble Valley) (Con)]

Good morning, Mrs Hobhouse. It is a pleasure to serve under your chairmanship and to see you again. I welcome both Ministers to their places. As soon as you said that we can start removing layers, Mrs Hobhouse, my button suddenly popped off. I apologise, and I guarantee that I will not remove any more layers, for fear of disrupting the Committee.

The clause amends the Electricity Act 1989, requiring the Gas and Electricity Markets Authority to implement a cap and floor scheme for long-duration energy electricity storage or LDES. We are concerned that the clause introduces unnecessary bureaucracy and will distort the market with the introduction of the scheme. I have several questions on this. Can the Minister explain what criteria will determine the initial cap and floor levels? More importantly, how frequently will they be reviewed to stay responsive to market changes?

We know that the scheme aims to provide financial stability to LDES for operators by setting revenue caps and income floors, and to encourage investment in this technology. However, will LDES operators and investors have a role in reviewing or adjusting the scheme to ensure that it reflects real-world conditions? Will there be eligibility criteria for a formal application process for operators to access the scheme, ensuring fair access for all players? Those concerns, we would argue, highlight the need for clarity and effective integration with broader energy policies and to ensure the scheme’s success. I look to the Minister for clarification on those elements of the clause. We do not intend to divide at this stage, but we will provide further scrutiny at further stages of the process.

[Gideon Amos (Taunton and Wellington) (LD)]

Good morning, Mrs Hobhouse, it is especially a pleasure to serve with you in the Chair. Liberal Democrats are supportive of a scheme to encourage long-duration energy storage and, for that reason, are generally supportive of the clause. Long-duration energy storage is crucially needed, including, of course, battery storage.

There are instances of fires in battery storage facilities, but there is no reason why they should not be built safely—they can and are built safely. We ask the Ministers to consider whether fire brigades should be statutory consultees in applications for battery storage proposals. That is not the case at the moment, which seems perverse, given that there is an acknowledged fire risk that needs to, and can, be dealt with. We should have fire services as statutory consultees to ensure that happens.

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[Michael Shanks]

The hon. Gentleman makes an important point, which we will take onboard. It is already part of what the Health and Safety Executive and the Fire Service are looking at nationally in terms of guidelines, but the Government continue to take an interest. The hon. Gentleman is right that as the schemes expand across the country, more fire brigades that may have not had experience of these incidents in the past will have to gain experience. It is an important point and we take it seriously.

On a general point, I am glad that hon. Members across the Committee recognise the importance of LDES. It is genuinely an exciting moment for the country that we will build some of these important engineering projects to deliver the long-duration energy storage that the country needs.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Clause 22

Benefits for homes near electricity transmission projects

[Paul Holmes]

I beg to move amendment 83, in clause 22, page 29, line 33, after “benefits” insert

“of £1,000 per year for ten years”.

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

New clause 102—Community benefits from major energy infrastructure projects—

“(1) The Secretary of State must by regulations establish a scheme under which communities with a specified connection to a major energy infrastructure project are entitled to financial benefits.

(2) In subsection (1), ‘major energy infrastructure project’ and ‘specified connection’ have such meaning as the Secretary of State may by regulations specify, provided that any such definition includes all newly consented renewable energy projects.

(3) Financial benefits provided for by a scheme under this section must—

(a) be provided by the owner of the relevant major energy infrastructure project, and

(b) amount to 5% of the annual revenue of the relevant project.

(4) Where a major energy infrastructure project is onshore, regulations made under this section must—

(a) provide for two-thirds of the financial benefits accruing to a community under this section to be paid to the council of that community, and

(b) provide for one third of the financial benefits accruing to a community under this section to be paid into a strategic fund operated by the council.

(5) Where a major energy infrastructure project is offshore, regulations made under this section must provide for the financial benefits accruing to a community under this section to be paid into a strategic fund operated by the relevant council.

(6) Regulations made under this section may, among other things—

(a) specify the powers, purposes, responsibilities and constitution of a council strategic fund;

(b) make further provision determining which communities are qualifying under this section, and defining community for this purpose;

(c) confer functions in connection with the scheme;

(d) provide for delegation of functions conferred in connection with the scheme.”

This new clause sets out a scheme for providing financial benefit to communities in areas connected with major energy infrastructure schemes.

[Paul Holmes]

Amendment 83 was tabled by the shadow Scottish Secretary, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie). We welcome clause 22, which empowers the Secretary of State to establish a financial benefit scheme for people living near new or upgraded electricity transmission infrastructure. It is vital that people living locally to such works, who will see their life disrupted, should receive fair compensation for their trouble. I said in the last Committee session, as did other Opposition Members, that we support the Government’s move to do that and to involve local communities, following on from some of the provisions that the Conservatives made in government.

Where there is a disagreement, however, is on the level of that compensation. Amendment 83 would require the Secretary of State to establish a scheme under which persons with a specified connection to qualifying premises are entitled to a financial benefit of £1,000 per year for 10 years, provided directly or indirectly by electricity providers. We believe that this would be able to be monitored under the current scope of the legislation, particularly where it says that the Secretary of State may provide funding from Parliament to those administering the scheme.

Provisions would also be made for complaints, procedures, appeals or dispute resolution related to the scheme. The regulations would be subject to an affirmative procedure—we do not see any need to change that. The clause would apply to England, Scotland and Wales and come into force on Royal Assent. We would argue that the level set out in the amendment would not need to change the Bill. The scheme would allow eligible residents, mainly through electricity suppliers, to receive benefits based on the proximity to above-ground transmission projects, including past projects, which are fair and proportionate.

Under our amendment, any scheme established under proposed new section 38A(1) of the Electricity Act 1989 would have to include provision for, for example, homeowners residing within 500 metres of qualifying premises to be entitled to financial benefits of £1,000 a year for 10 years. The Minister and I did not argue—we never argue—but debated last time, and the Opposition accept the nature of what the Minister intends to do, but we feel that there needs to be more clarity for the consumer and for local people. There were stories on Sky News that the consumer benefit for homes near electricity transmission infrastructure would be set at about £250 a year, so I would be grateful if the Minister would state what he expects the level of compensation to be and clarify that for the rest of the Committee.

Whether the Minister chooses to accept our very reasonable offer of £1,000 a year or not, will he answer how errors or instances of fraud will be handled within the administration of the benefit scheme? What rights do residents or other parties have to appeal decisions or penalties related to the benefit scheme? What role will the Secretary of State play in ongoing monitoring and enforcement of the scheme, with particular regard to regulatory powers?

As I said, I do not want to go over the arguments again, but the Opposition believe that we must take communities with us, when it comes to consumers and people affected by large-scale planning decisions through centralisation and an attempt—to be fair to the Minister—to reduce the bureaucracy and deliver the infrastructure that we need. We talked last time about community benefit under other amendments and clauses of the Bill. The Opposition believe that residents and local communities deserve to know that there will be a certain amount for a certain period, and we believe that £1,000 a year for 10 years is something that local people would welcome. I commend amendment 83 to the Committee.

[Luke Murphy (Basingstoke) (Lab)]

It is a pleasure to be able to speak briefly on clause 22, which I welcome. This scheme is key to delivering the key Government commitment to ensuring that those who are closest to new electricity infrastructure feel the benefits soonest. Also important is the Government guidance that will be brought forward on how developers will ensure that communities hosting transmission infrastructure can benefit, including through funding for community projects, sports clubs and leisure facilities. I welcome this key commitment.

It is disappointing that the shadow Secretary of State for Scotland, the hon. Member for West Aberdeenshire and Kincardine, is not here to explain further his comments in the newspapers today. He has moved from saying that he opposes electricity pylons to the issue of scientists themselves, suggesting that climate targets are not, in fact, science-based. It is disappointing that he is not here to defend his amendment, but I very much welcome the Government’s proposal.

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[Michael Shanks]

The Minister for Energy made it on to this Committee; the shadow Minister for Energy could have made it on to this Committee as well, so my hon. Friend should not withdraw his criticism so hastily. Anyway, he is ever present in these discussions and we enjoy his contributions from beyond the Committee room.

[Paul Holmes]

I will try not to take that personally. The Minister should be grateful for what he has got. If he wanted a shadow Energy Minister on the Committee, he could have made that known through the usual channels.

[Michael Shanks]

I thank the hon. Gentleman for that important intervention. I will turn to the substance of the amendment before I get into trouble, Mrs Hobhouse.

The amendment seeks to set the level of benefit at £1,000 per year over 10 years. First, I should say I welcome the fact that across the Committee today there is support for that principle. That is really important, because the principle that we want to recognise—to be fair, the previous Government did when they launched the consultation—is that if we host nationally important energy infrastructure, particularly transmission infra-structure, which so often has less of a community benefit in the communities that it passes through, there should be some benefit from it. That is a really important point.

The balance that we sought to strike was to find a way to give a benefit to those households affected by the transmission infrastructure, but also make sure that the wider bill payers across the country that will pay for those community benefits are not saddled with a significant bill as a result. So the balance that we struck was £250 per year over 10 years. I would never seek to question the House of Commons Library, but I think perhaps the hon. Member for Broxbourne might not be correct in his interpretation of its figures. It would be £2,500 over the course of the 10 years that the scheme would be in place. I think that is what he was referring to.

In our view, the point here is that this still provides a significant benefit regarding bills for those households for a substantial amount of time—10 years—but at the same time does not result in significant amounts being added to the bills of other people right across the country who will pay for this. We think £1,000—which we looked at carefully as part of this process—is too much.

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[Michael Shanks]

That is a question that I have asked myself many times over the past nine months. The problem is that we inherited a number of these things from the previous Government and we are working through them.

I have regular meetings on the subject. It is really important that we get this right, because we need to strike the balance: ultimately, the community benefit funds will, one way or another, be paid for by bill payers, but we want communities to have a real benefit. The balance has to be right because we are trying to bring down bills for everyone across the country. The Conservative amendment would increase people’s bills, but we are determined to try to bring them down. There is a balance to be struck.

We feel that this is an exciting moment to drive community ownership forward. A key aim of Great British Energy will be to drive forward the local power plan, so that communities do not just have benefits from infrastructure, but own some of those benefits. A number of hon. Members across the House have mentioned the real benefits of communities having a stake in projects—they can spend the money on whatever they want to spend it on, rather than on what a scheme might define. The two go hand in hand.

The bill discount scheme is an important step to drive forward community acceptance of new network infrastructure. We will develop proposals at pace for the hon. Member for Taunton and Wellington and for communities right across the country on the wider aspects of energy infrastructure. I hope that he will not move his new clause 102.

[Paul Holmes]

I am grateful to the Minister for some of the answers he has given—

[Michael Shanks]

Some?

[Paul Holmes]

Well, I am grateful to him for trying to give all the answers, but I only agree with some of them, as he would expect. I wish that he would accept the amendment, but he has stated clearly that he will not. The amendment is ambitious and would give clarity to the consumer and local people about what they should expect.

I understand what the Minister said about the amount of money given to local people being legislated for in secondary legislation, but there is a question about why he will not put that into primary legislation. He could be clear—the £250 a year was clearly leaked to the press a few months ago—but the Government have still not produced any legislation to give certainty to the consumer. That is symptomatic of the Government: in lots of areas of the legislation, they simply have not provided any detail to the people it affects. We will get to those other examples later, when we come to the specific issue of planning reform.

The hon. Member for Basingstoke seems to have an encyclopaedic knowledge of Opposition politicians’ quotes; I suggest that the Whips Office makes more use of him, given his ability to get an Opposition quote quickly, just like that. He might want to get a hobby, I don’t know, but he is good on quotes.

[Luke Murphy]

Will the shadow Minister give way?

[Paul Holmes]

I will, yes—is he going to give me another one?

[Luke Murphy]

I do not need to have encyclopaedic knowledge to read the newspapers this morning, which is where the shadow Secretary of State made those comments.

[Paul Holmes]

I do not know which newspaper the hon. Gentleman reads, but it is obviously not a very good one, because it takes the comments of my hon. Friend the shadow Scottish Secretary and acting shadow Energy Secretary out of context.

My hon. Friend did say that the target date was not based on evidence, but he was talking about the arbitrary nature of the 2050 target for net zero; he clearly did not say that there was no science behind the concept of climate change. The hon. Member for Basingstoke is a doughty champion and fiery Back Bencher, destined for high ministerial office. He would be a good Minister, but he needs to read out the whole of a quote and give the genuine context of any comments by Opposition politicians.

To come back to the amendment, Mrs Hobhouse—I feel your beady eye upon me—the shadow Scottish Secretary has a clear record. In his earlier comments, he talked about bills going down, but bills are up by £300 a year. There was a manifesto commitment to reduce energy bills for people by £300 a year, and that is simply not happening because of the record of the Department for Energy Security and Net Zero. At the moment, it is closing down oilfields and relying far too much on renewable energy, without getting to the sustainable level at which energy bills could come down. The Minister keeps saying that he wants to bring them down, but when will they come down?

We understand and support the aims and ambitions of new clause 102, tabled by the Liberal Democrat spokesman, the hon. Member for Taunton and Wellington. However, we think there is some question about its practical implementation, specifically taking into account

“5% of the annual revenue of the relevant project”

and the provision

“for two-thirds of the financial benefits accruing to a community under this section to be paid to the council of that community”.

We do not necessarily think that that is how the money should be distributed. As we discussed in the last sitting, and I agree with the Minister entirely, if a local authority gets money dedicated for a community, that does not necessarily mean that the money will get to the community. That is part of the flaw of the section 106 system and the community infrastructure levy. We all know examples of when money has been given, with the good intentions shown in this honourable new clause, but the community that needed to be helped simply was not. We feel that is not the best way to distribute the money; I believe the Minister feels the same, following our lengthy discussion on whether he can or cannot award money to Scottish Ministers or local authorities. I am sure he will come back to that line another time.

On new clause 102, the point is what the Minister said earlier about lines going through multiple local authorities; the well-intentioned money would not get to the right people at the right time. It would be diluted, and we do not think that that is the right way forward. However, we absolutely support the Liberal Democrats in their ambition to make sure. That is why we put a specific figure into our amendment 83: we absolutely want to make sure that the people desperately affected by some of the infrastructure investment genuinely get some of that money. We also understand and endorse the element of community improvements, which I know we will come on to in other areas of the legislation.

The Minister is a good man. We entirely endorse him and will work together on the need for benefits for the people affected. But he needs to be more ambitious—he should have come the Committee today with a specific figure; he should not have said to the Committee that he is “minded”. He could have put in primary legislation the amount the Government were willing to give. I put down in my notes too soon that the Minister was very tight, with £250 a year—I think that was unfair to him.

But the Minister needs to be more ambitious: he should match our commitment to £1,000 a year and to local people affected by such infrastructure knowing that they would be guaranteed that for 10 years. Most people are responsible when spending their own money; we believe they would put that into the community, which would benefit it and improve its infrastructure. I commend amendment 83 to the Committee, and we will press it to a Division.

Question put, That the amendment be made.

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[Michael Shanks]

The clause enables the generation of electricity from renewable sources within the public forest estate through inserting a new section into the Forestry Act 1967.

Our public forests are a national asset, providing vital environmental, social and economic benefits. They also offer an opportunity to contribute to our clean power by 2030 mission through the development of home-grown renewable electricity proposals. The clause will support this by enabling Forestry England to undertake activity relating to both small and large-scale renewable electricity projects on the public forestry estate.

Developments may take place on both forested and non-forested land within the public forest estate. There will, however, be no reduction in size of the estate and sites will be carefully selected. These powers will see us integrating technologies including solar, hydro and wind energy into our natural landscape, accelerating progress to net zero and helping to tackle climate change.

Principles underpinning renewable energy developments include ensuring that there is no net loss of woodland area, positive habitat restoration and maintaining a sustainable home-grown timber supply. Forestry England has already developed around 40 small-scale renewable energy installations, but under current legislation any excess electricity that Forestry England generates is wasted and cannot be exported to the grid. That includes rooftop solar and biomass heating to generate energy used at their various visitor centres and offices. The new powers will allow Forestry England to export electricity generated from its own projects to the national grid.

Without this change to legislation, there would continue to be an imbalance between English activities in this space and those that take place in Scotland in connection to renewables. Public land being managed by the forestry authorities in Scotland is currently able to be used to generate renewable electricity at commercial scale. I commend the clause to the Committee.

[Paul Holmes]

I welcome the clarity in the Minister’s opening remarks on the clause. While the theory of generating renewable energy, and deriving income by selling electricity generated from renewable sources, on public forestry land is positive, several concerns need to be addressed that do not lend support to the Government’s initiative. I issue a word of warning to the Minister from experience: measures that concern public forests can be very divisive. As the previous party in government, we still have the scars on our back when it comes to forests. However, we accept that there are clear precedents in Scotland for what the clause will do.

I have a couple of questions for the Minister on these very well intentioned measures. Again, there is a need for clear consultation with people who live locally. We accept that these forests are run by experts, and we pay tribute to them for the way in which they run our forests across the country, but there will be people who have an absolute passion for our forests. Believe me: we saw them in our inbox when I worked for an MP. We need some clarity on that.

My first question is how the powers will balance commercial activity with conservation duties. The Minister said that there are examples of where we have done that before. It is a genuine question. We must make sure that when there is a drive to allow this to happen, some of the conversation elements are not lost in the management of the forests, and that renewable projects do not undermine biodiversity, recreation or climate resilience.

Secondly, what criteria will determine when ministerial consent is required for projects? As I am sure we agree, clear thresholds are necessary for consistency and community confidence. Within that, there must be consultation of local people. As I said, it can be an incredibly emotive topic when people find out from their local forestry commission that it is engaging in some electricity generation. When it comes to our beautiful forests, such wording can mean that people need to be told about it properly and consulted properly. What is the Minister doing to ensure that that will be at the forefront of these projects? As I said, we have been there before.

Does the Minister have any concept of how income from renewable generation will be managed? Oversight mechanisms will be vital to ensure transparency and accountability in these commercial activities. Are there limits on the scale or type of renewable projects on public land to prevent industrial-scale developments, and how will local communities be engaged in decisions affecting their access to public land?

While the clause offers opportunities, it poses risks that need careful management, so I urge the Government to provide more details to ensure that the powers are used responsibly, and that there is no mission creep at the end of the day from this very well intentioned clause.

[Luke Murphy]

I rise briefly to welcome the clause, which underlines the Government’s commitment both to tackle climate change and to restore and protect nature. As the Minister said, we have seen how Forestry and Land Scotland has been able to make use of its estate to install more than a gigawatt of generating capacity, which has been a major source of revenue for it to continue its conservation, preservation and reforestation mission. Once again, it underlines the Government’s commitment to protect nature while tackling climate change.

[Michael Shanks]

I thank all hon. Members for their contributions. The hon. Member for Hamble Valley has taken the right tone, which is that our forestry land is to be treasured and protected for future generations, but there is a balance to be struck—we strike it every day in relation to how much the public can access and enjoy that land, and use visitor facilities. Stewardship of our forestry land is the responsibility of all of us. I thank him for his remarks.

We expect the footprint from the projects to be incredibly small. In fact, the most successful projects in Scotland are often on the rooftops of visitor centres, alongside toilet blocks, and in those sorts of places, so we are not talking about cutting down huge areas of forest to build ground-mounted solar. However, the point the hon. Gentleman made about consultation is critical. There will be comprehensive public and statutory consultation, and I fully expect Forestry England to carry out an even more detailed engagement process, given its stewardship role for certain pieces of land.

In fact, in Scotland, where some projects have been carried out, groups of people who frequently use the forest have been involved in designing the projects and deciding what the money will be spent on. There are real benefits to that. Although there is sometimes short-term disruption from construction, often the projects have resulted in accessible routes being opened in Scottish forests, including new wheelchair-accessible paths, so previously inaccessible land is being made accessible. However, the hon. Gentleman is right about consultation.

On the subject of revenue stream, we expect the measures to enhance Forestry England’s wider role and its existing objectives, which do not shift as a result of the measures. Of course, those objectives relate to environmental conservation. In fact, the revenue, which is currently being wasted—the critical point is that these projects cannot export to the grid—could actually create a net benefit, and we would expect it to do so. That is an important point, as is the issue of mission creep. We will certainly keep that in mind.

[Paul Holmes]

The Minister has satisfied me with his answers and is adopting a constructive tone regarding the clause, but I want to press him on the criteria used to determine ministerial consent. He is right to say that we do not want mission creep, and that we would usually expect minimum amounts of development around visitor centres and in the existing infrastructure of forests. Can he outline where the Government might set, not necessarily restrictions, but additional criteria regarding the size and scale of energy projects under the clause?

[Michael Shanks]

Again, there is a balance to be struck: we do not want to create a fixed set of national guidelines that preclude larger scale projects that would not disrupt existing forestry. I do not want to suggest that every piece of forestry land is the same, and therefore that the guidelines should apply in the same way. None the less, the hon. Gentleman makes an important point, and I will write right to the Committee about it.

I say the same to the hon. Member for Ruislip, Northwood and Pinner. As I think he would expect, schemes such as those he mentioned are not intended to be part of these measures However, I will consider whether we can tighten the guidance. The clause is intended to be about using land that, in some cases, already has some of these projects on it, but they cannot export to the grid. Small-scale solar or hydro—those are the sorts of schemes that we see as fitting alongside the wider mission of Forestry England. The hon. Gentleman raised an important point, and I am happy to write to the Committee about it.

Question put and agreed to.

Clause 24 accordingly ordered to stand part of the Bill.

Clause 25

Fees for certain services

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[The Minister for Housing and Planning (Matthew Pennycook)]

It is a pleasure to continue our proceedings with you in the Chair, Mrs Hobhouse.

Chapter 3 of part 1 of the Bill deals with reform of transport infrastructure. Its various clauses—all of which, I hope, are uncontroversial—are designed to streamline and improve the efficiency of delivering transport infra- structure projects. Clauses 25 to 29 of the chapter make various amendments to the Highways Act 1980.

As hon. Members will be aware, local authorities and statutory consultees provide advice, share information and prepare responses to consultations on proposed highway projects. However, they currently do not have a statutory basis on which to recoup the costs associated with the work they do to review the applications. That can lead to delays in processing applications due to a lack of resources, or information being received late in the process.

Clause 25 inserts a new section 281B into the 1980 Act, providing a new regulation-making power for the Secretary of State in England and for Welsh Ministers in Wales to charge applicants for services in connection with certain schemes and orders on a cost-recovery basis. To be clear, it will not allow them to make a profit; instead, it will support the capacity and capability of local planning authorities and statutory bodies to carry out those processes, which in turn will encourage timely and high-quality inputs into the process.

The charges will apply to parts of the Highways Act associated with approving new roads, making changes to existing ones and making other legal orders necessary for highway projects. Furthermore, we will use a proportionate delegated power to ensure that cost recovery and the provision of services remain flexible and responsive in the light of changing circumstances over time, such as inflation.

The clause will bring the Highways Act into line with cost recovery provisions established under other infrastructure consenting regimes. By resourcing the input from critical stakeholders, this power will contribute to the acceleration of highway infrastructure project delivery, supporting the Government's economic growth mission now and in the future. On that basis, I commend the clause to the Committee.

[Paul Holmes]

We welcome clause 25, and I welcome the Minister to his position. He has a lot to live up to after those clauses, and I will continue to be nice to him. I say well done also to the other Minister for the constructive way he has been working on this Committee. Opposition Members do appreciate that. Because we are not stupid, we realise it is sometimes a challenge to win votes. Although the votes we undertake here are closer than the ones on the Floor of the House of Commons, let that not be an encouragement to us to call more.

As I said, we welcome clause 25, which allows public authorities to charge fees for services related to specific highway schemes. None the less, some clarity is needed on several points. While recovering costs is reasonable, the clause must be carefully implemented with safeguards to ensure fairness, accessibility and consistency across England and Wales.

The Minister has stated that this is a reserved matter for certain statutory bodies and local planning authorities, but will he outline how this goes with his perfectly admirable stance on devolution? Will he look to allow new combined authorities and mayoralties to take on some of the powers, or is he planning for them to be devolved even further, to mayoral authorities coming on stream rapidly from the Department under this Government? We would like some clarity on how he sees the powers being amended once local authorities and some of those statutory bodies no longer exist or are reformed.

Has the Minister considered the impact of the fees on small developers, charities and community groups? Could they create barriers or delays in any process? Will there be provisions allowing fee waivers or reductions for certain applications, such as for community-led or rural projects? How will disputes about fee fairness be resolved, and will there be an appeals process? What guidance will there be to ensure consistency in fee application across regions, to avoid significant variations from one local authority or statutory body to another? Finally, could the fees delay or discourage essential infrastructure development, especially in areas with planning capacity challenges?

[Rachel Taylor]

I acted for developers before coming into the House, and I know their biggest concern was always delays, not the fees that the local authority charged for doing these things. As a result of the lack of capacity in local authorities, there has been a move to more unadopted roads on small estates, which has its own problems for property owners going forward. I really welcome this provision, because it lays sensible steps toward making it easier for developers to complete their projects sooner, which enables them to make more money.

I think that the offset in costs will be welcomed by small developers. This provision is particularly important in the small authorities that cover large geographical areas, because it will enable them to go out and make visits. To give an example, my client was required to build a pavement but could not do so while there was a vaccination centre up the road. The local authority could not, under the fee structure, find the time to come out and visit the site, which would have enabled it to make a more sensible decision. In general terms, this provision is really welcome and developers, both small and large, will see this as a very positive step forward.

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[Paul Holmes]

On that point—depending on the Minister’s answer, I may not have to make a speech and detain the Committee—the Minister has outlined that the strategic highways authority is National Highways; does he envisage that for some roads, particularly across England, the county council is the strategic highway authority, and will have to apply the section 10 changes? Is he not worried that, because of the financial implications for some county councils—regardless of politics—there could be a kind of enticement for people to get rid of some of the strategic parts of their local road networks? It may be a complete lack of understanding on my part, but could the Minister outline whether county councils could be included in some of that process?

[Matthew Pennycook]

I am more than happy to write to the shadow Minister about the role of county authorities in managing the highway network, and how the Highways Act and the consenting regime applies to them. I do not think his point is pertinent in this respect, in the sense that the clause transfers administrative functions related to section 10 orders under the Highways Act from the Secretary of State purely to National Highways. It does not change the legal decision-making authority, which remains the Secretary of State’s, but the administrative burden, in terms of the final preparation, publishing and consultation of the necessary documents, would be done by the applicant—National Highways. But I am more than happy to provide the shadow Minister with further detail about the interaction with county authorities.

[Paul Holmes]

Please do not write to me on that. I say that not to offend officials but because I do not want them overworked and the Minister has clearly outlined what he means, for which I am grateful. The question was obviously to clarify my understanding of the legislation. I asked it because I just wondered whether strategic highways authority included county councils. My county council controls a large number of roads, and I wondered whether it was enveloped under the proposal—under the meaning of strategic highways authority. The Minister has answered that, and I am perfectly content not to make a speech.

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[Matthew Pennycook]

Clause 27 will reduce the objection period for applications under the Highways Act 1980 from six weeks to 30 days. Such applications could be for the construction of new roads, changes to existing ones and other necessary legal orders for delivering highway infrastructure. The objection period refers to the timeframe during which interested parties can view application materials and provide comments.

Reducing the objection period will speed up the consenting process without sacrificing the safeguards that are essential for the fair consideration of objections. An objection period of 30 days aligns with the relevant objection periods for other transport consenting regimes, such as the Planning Act 2008. Again, I draw the shadow Ministers’ attention to the fact that, as per the previous clauses, we intend to align the Highways Act provisions with those in other consenting regimes, to provide for a more uniform arrangement across the piece.

Additionally, the clause will introduce a 10-week deadline for the Secretary of State to make decisions on these schemes and orders. Currently, there are no statutory deadlines for the decision-making stage for the relevant processes, unlike in other consenting regimes, such as the Planning Act 2008. Bringing the Highways Act into alignment with other consenting regimes will improve certainty and the efficiency of the process. The power for the Secretary of State to extend the decision deadline, if necessary, ensures flexibility in cases where additional time may be required.

By shortening the objection period and setting a clear decision timeframe, the clause makes the process more predictable for all stakeholders. Faster, more predictable decisions will result in more efficient delivery of transport infrastructure projects, contributing to better transport networks. We think this change strikes the right balance between improving speed and maintaining fairness, ensuring that the process remains transparent and accountable. I commend the clause to the Committee.

[Paul Holmes]

May I say, Mrs Hobhouse, that you are absolutely on fire? We are getting through things very quickly, and I will adhere to your instructions.

The clause updates the objection and decision-making timelines under the Highways Act 1980. Although the goal is to align with other planning regimes, several concerns remain. First, the clause reduces the objection period in England to a minimum of 30 days, but maintains it at six weeks in Wales. What justifies that discrepancy? Should there not be consistency across all authorities?

Furthermore, is it not the case that reducing the objection period may limit the time available for affected parties to prepare responses? I know that this is outside the remit of this very prescriptive clause, but many constituents will say that they did not get the letter or see the things that were posted, or that local people simply were not able to see things. I really think that this 30-day restriction will harm many average Joes—I hate that term, but I do not know how else to put it. People out there, who have busy lives, busy jobs and families, and who are working on their daily lives, will really struggle, in the first place, to see things within 30 days. However, they will also not know that the period is now 30 days and may therefore not be consulted on some of the actions that authorities may take.

I ask the Minister to assess whether 30 days is the right length of time. I am not talking about having an unrestricted length of time for consultation, and we absolutely need to make sure, if we want to deliver on some of these policies, that the timeframe is reasonable. However, I question whether 30 days is far too rapid and will cause more harm than good to the consultation rights of the British public. I would also ask what systems will be in place to notify stakeholders of deadline changes and extensions in individual cases, to ensure clear and accessible communication.

I have a last question. While the intent of the clause is to streamline processes, we must ensure fairness, transparency and quality decision making, allowing stakeholders to engage meaningfully. We absolutely accept that there is currently no statutory deadline. Ten weeks is adequate, but on the 30 days element of the consultation period, when we think about people out there with busy lives, I think could cause a huge problem for democratic accountability and for the transparency of the system in allowing local people to have their say. I ask the Minister to look at that 30 days again, but we will not press the clause to a Division.

[Matthew Pennycook]

I thank the shadow Minister for his response and questions. Again, I make the point that with a number of these provisions we are trying to align the Highways Act with other consenting regimes. I do not know whether his position is that the statutory objection period in those other consenting regimes—for example, the Planning Act 2008—should be lengthened. I would argue that such an extension would add time and complexity. We think that should be brought into line with the others.

We think that 30 days is the appropriate period, that the existing arrangements, which set out a period of not less than six weeks, are too long, and that we should bring the Highways Act into line with the other regimes. On that basis, we do not think that the clause sets a precedent for the shortening of objection periods, because objection periods of about four weeks, as I have said, can be found in other infrastructure consenting regimes. That is an adequate period of time in which to submit objections.

The shadow Minister asked another, separate question about the Secretary of State’s ability to extend deadlines from the 10-week period. Again, in any such instances, the Secretary of State would need to send written notice of the extension to the relevant parties in those cases, setting out why an extension is required. I hope that on that basis the shadow Minister is reassured about the use of that particular part of the clause.

Question put and agreed to.

Clause 27 accordingly ordered to stand part of the Bill.

Clause 28

Procedure for certain orders and schemes

Question proposed, That the clause stand part of the Bill.

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[Paul Holmes]

We welcome the clause and the clarification and certainty that the Minister has given, but I want to put some questions, along similar lines to those we have asked before, about transparency and limits or caps on the fees that authorities can charge.

We believe that without clear limits, there is a risk of inconsistent or excessive charges and a disproportionately wide range of fees across authorities. What mechanisms will be in place to allow applicants to challenge or appeal fees that they consider unreasonable? What impact does the Minister think this measure may have on smaller companies in the supply chain, which may be less able to absorb the costs that will be imposed? We do not disagree with the principle of the clause; we just have some questions about the detail.

Finally, how will the Secretary of State or Welsh Ministers review or update the regulations? As costs and administrative practices evolve, it is crucial that the regulations are reassessed regularly to ensure that they remain fair, relevant and effective. Will the Minister remark briefly on that and on some of the smaller businesses that may be affected?

[Matthew Pennycook]

I thank the shadow Minister for those points. The clause only allows for the charging of fees for services on a cost-recovery basis. I think there is broad agreement across the Committee that cost recovery for applications is a fair and proportionate way to proceed. Organisations will not be—