Civil Aviation (Consumer Protection and Regulatory Reform) Bill [Lords] Debate

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Department: Department for Transport
Heidi Alexander Portrait Heidi Alexander
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My hon. Friend is right to raise the impact on people who were caught up in this disruption. I have read reports of people having to sleep overnight in airports and people who have potentially missed weddings, so we cannot say enough about how important it is that we address this problem. I have learned in politics that absolute guarantees when it comes to managing the operation of a vast and complex transport system can be unwise, but what I can say is that I will leave no stone unturned in seeking to understand what has happened here and what can be done to drastically reduce the likelihood of something like this ever happening again. We need to ask tough questions about the resilience of NATS’s systems and progress with planned upgrades, and we need to think about consumer redress issues.

Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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I thank the right hon. Lady for her comments and for recognising the NATS issue. However, given its importance to the House, will she make a statement tomorrow so that questions can be asked then, rather than during a Second Reading debate? Members across House have lots of questions about this serious matter.

Heidi Alexander Portrait Heidi Alexander
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I am keen to address these significant issues today. The public would rightly expect the Transport Secretary, while standing at the Dispatch Box, to answer questions here and now, so I am happy to take any interventions.

As many colleagues will know, most civil aviation legislation is assimilated EU law, and the Government’s power to update it has now expired. The Bill will restore that power, giving the Government the flexibility to regulate at a pace that will enable us to keep up with the world around us. I should say that I am very grateful to my noble Friend the Minister for Rail for his excellent stewardship of the Bill through the other place.

I will now outline the main elements of the Bill and what we hope it will achieve. Aviation serves millions of us well each year, but when things go wrong, passengers must have confidence that they will be protected. The Bill will allow passenger rights to be bolstered through secondary legislation, helping us to tackle the issues that matter most.

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Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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Before I turn to the Bill, let me comment on the events of the last 24 hours, which have shown just how important effective oversight of our aviation sector is. The shocking failure at NATS has left hundreds of thousands of passengers in the lurch, and serious questions have been raised about the resilience of our air traffic control system and aviation infrastructure. As we consider legislation that gives further functions to the CAA, we must ensure that proper parliamentary scrutiny and ministerial accountability are not lost. When something goes wrong this badly, the House must be able to demand answers.

Having spoken to Mr Speaker earlier today, it was my understanding that urgent questions requested by my party and by the Liberal Democrats were not accepted because the Government gave assurances that a statement will be made in the House tomorrow. The Government could have chosen to make a statement today, but they chose to prioritise other matters. If the Secretary of State would like to intervene to say that tomorrow there will be a statement in which all Members can ask proper questions about what has happened, I would welcome that. A Second Reading debate is not the right place for questions and answers, and only one hon. Member from the Labour Benches intervened on her. This is not an appropriate moment to have that discussion, so perhaps the Secretary of State would like to confirm that there will be a statement tomorrow. If not, I am afraid it looks like there has been a serious miscommunication between the Speaker’s Office and those on the Government Front Bench. [Interruption.] Sorry, does the Minister want to speak from a sedentary position, or does he want to come to the Dispatch Box and speak?

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Richard Holden Portrait Mr Holden
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Okay. If he does not want to answer the questions, we will have to drag him to the House tomorrow.

Keir Mather Portrait Keir Mather
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I am in the House right now!

Richard Holden Portrait Mr Holden
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If the Minister would like to speak, he can stand at the Dispatch Box. No, he does not want to do that—fine. We will have him here tomorrow, then, as we were told today that our urgent question would not be accepted because the Minister would be making a statement. We will have to see whether that actually happens.

Having said all that, I welcome the engagement from the Secretary of State and Ministers in the other House on this Bill, and the engagement that has taken place on this matter. I would like to see that engagement continue, and I hope that it can.

The Conservatives agree with the stated aims of the Bill—namely, to promote economic growth and infrastructure development, to strengthen consumer rights and protections, and to enhance aviation security. For that reason, we will not divide on Second Reading. I also agree with the Secretary of State’s observation in her letter to colleagues on 1 September, in which she said that the contributions of the Lords have helped strengthen the legislation before the House today. At its core, this is broadly an administrative Bill. We on the Conservative Benches recognise that certain measures must be taken following our exit from the European Union to ensure that regulatory gaps are filled and continuity is maintained in a way that ultimately keeps Britain’s aviation industry working safely, as the Secretary of State highlighted.

The Bill pays much attention to consumer rights and associated protections, and the Conservatives welcome parts of that agenda. Indeed, I appreciate the Department showing some flexibility on these issues, particularly with regard to safeguarding disabled passengers. However, given the violent agreement between the Secretary of State and me on these matters—I confess that it is not always this way across the Dispatch Box—I am slightly puzzled by one item. Why on earth did her party whip Members in the other place to vote against a review of airport drop-off charges? Why are passengers paying such exorbitant drop-off charges? It would appear that the Government do not want us to know that. Why is it, as The Times has reported, that charges at Gatwick have now reached £10 for 10 minutes, while Luton’s, under Labour-run Luton council, have increased from £2 to £7?

Vikki Slade Portrait Vikki Slade (Mid Dorset and North Poole) (LD)
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In Bournemouth, the charges have now gone up to £8, yet there are no buses to the airport. Two buses, which go at 6 o’clock in the morning and come back at 6 o’clock in the evening, serve the industrial estate, but they do not serve the airport staff or passengers, and it is impossible for people to get there any other way. Does the shadow Secretary of State agree with me that these charges should be restricted or banned until such time as the airport provides alternatives for all passengers?

Richard Holden Portrait Mr Holden
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The hon. Lady makes a very clear case for why such a review of airport parking charges is necessary. One has not happened for a decade. It was great to get the support of the Liberal Democrats in the other place in backing Lord Moylan and the Conservative proposals in that space. Now that the provision is in the Bill, I hope the Government will not seek to remove it. There are obviously concerns about the impact that surface access targets have had on some airport parking charges, especially when, as the hon. Member has made clear, genuine alternatives often do not exist properly or are incredibly expensive. I genuinely find it difficult to believe that the Secretary of State does not herself believe that there is a simple link between Gatwick having a minimum target of more than half of passengers getting to and from the airport by public transport and the soaring drop-off charges. I hope that this perfectly reasonable provision for a review that puts passengers first will not be removed from this Bill. It would be great to hear from the Minister winding up whether the Government intend to stick with that important review, which was inserted against the Labour party’s wishes in the House of Lords.

Another point worth mentioning is that the Bill, for all the powers it rearranges and the regulations it enables, offers remarkably little vision for where British aviation should be heading. The Government have talked a lot about growth, yet have refused to set tangible targets to deliver it—whether in this aviation Bill, or indeed for passenger growth in the Railways Bill.

The Opposition understand that economic growth and the competition that fuels it are essential not merely to the success of individual airports and airlines, but to maintaining Britain’s global reputation as one of the world’s outstanding aviation nations. Yet too often this Government appear to regard the aviation industry less as an engine of growth and more as an ATM. Indeed, Labour Members seem to be beset with Tigger-like pleasure at finding new costs to impose on businesses, while growing the welfare bill rather more successfully than they are growing the economy.

Ministers must understand that every additional burden and every tax—air passenger duty or business rates—is having huge impacts on aviation. I was with Manchester Airport Group recently, which is now facing an effective tax rate of 77%, when corporation tax and business rates are combined, after facing a more than 100% increase in its business rates. Manchester is not alone; airports up and down the country are facing huge increases in tax. It will be really important for Ministers to address that as part of the broader concerns about growth.

Every charge deters investment and makes new jobs, new routes and greater passenger choice that little bit harder to deliver. That principle must also apply to the new powers given to the CAA. Can the Minister assure the House that significant new regulatory, safety and airspace decisions will be evidence-based, proportionate and subject to the proper assessment of their costs and benefits?

Andrew Snowden Portrait Mr Andrew Snowden (Fylde) (Con)
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My right hon. Friend rightly points out the tax increases that airports are facing combined with business rates and increased regulations. We are trying to build a business case for commercial flights from Blackpool airport again, and such things make it really hard for airports that are trying to reopen routes and start new ones. Does he agree that that should be looked at?

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Richard Holden Portrait Mr Holden
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I thank my hon. Friend for that. Obviously, the air space does not exist within the Bill alone. The tax changes will have huge implications, whether at Blackpool airport or at Humberside airport, which I visited recently. They face life-and-death pressures that will decide whether they continue to be going concerns. This is not just about airports and the jobs that they create directly, but the connectivity that they provide for entire regions. He makes an incredibly important point.

As has been the case with too much legislation of late, the Bill leaves plenty of questions up in the air. Where are the measures to secure the future of the workforce—our mechanics, engineers and next generation of skilled workers? Where are the measures to ease the burdens surrounding apprenticeships, an issue raised with me directly by the apprentices I met at Heathrow recently? Why is there no indication of how to champion our excellent aviation colleges at airports, such as the one at Stansted that I had the pleasure of visiting recently? Where is the plan to tackle pilot shortages? Has the Secretary of State not received representations calling for the Government to assist with pilot recruitment, or is she turning a deaf ear to them? Where is the vision for Britain being a world leader in single-aisle aircraft manufacturing, something for which the industry, as she knows, is clamouring to the rafters?

I know that the Secretary of State is incredibly busy selling out taxpayers in her latest meetings with union barons who have her over a barrel; she was apparently too busy to join me and many of the shadow ministerial team at the Farnborough air show. My understanding is that not a single Minister from the Department for Transport went to Farnborough this year. Perhaps she could correct me if I am wrong. It is Europe’s largest airshow, a symbol to the world of Britain’s openness and our leading edge in aviation, so it does seem quite bizarre that, while they were all sat there waiting for the reshuffle, none of them popped down. Maybe that shows the Government’s general view of aviation—they are just not interested. [Interruption.] It seems shocking that the ministerial team did not get there. [Interruption.] If they do not want to do the job, then rather than shouting at me from a sedentary position, we could just swap sides of the House.

Too often, it seems, the Department is in the business of delaying Bills. It leaves drafting to the last moment, and then tables reams of amendments to its own legislation, before expressing surprise that the Opposition might wish to scrutinise what has happened. We will not oppose sensible measures simply for the sake of it. Of course, we welcome stronger passenger protections where they are needed, and of course we want the highest possible standards of safety and security, but we also want a Bill that backs Britain’s aviation sector—a Bill that is backed by a ministerial team who also back Britain’s aviation sector.

We want a Bill that gives the sector the space and the economic environment in which to succeed, and that creates the conditions in which competition, innovation and enterprise can thrive. I look forward to the opportunity to table amendments in Committee. Hopefully, we can work together to improve the Bill, as Opposition Members in the other place did, to ensure that British aviation remains safe, is more competitive and remains world leading.

None Portrait Several hon. Members rose—
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Keir Mather Portrait The Parliamentary Under-Secretary of State for Transport (Keir Mather)
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It is great to be back at the Dispatch Box, Madam Deputy Speaker, and I thank all Members for their participation in today’s debate. Before I begin, I too would like to acknowledge the significant disruption caused by yesterday’s air traffic control fault, and apologise to all passengers whose travel plans were affected. As those events have shown, civil aviation is a cornerstone of our national prosperity, supporting jobs, investment and connectivity across the United Kingdom. This Bill is an important piece of legislation, and one that is rightly regarded as an opportunity to strengthen a critical sector for the United Kingdom.

The aviation sector has evolved significantly in recent years as a result of rapid technological developments, new aircraft capabilities and the emergence of new airspace users, including drones. The regulatory framework requires modernisation to adapt to these developments. At the same time, the UK’s departure from the European Union has limited our ability to update certain areas of aviation regulation. The sector has also had to respond to major external shocks, from the unprecedented disruption caused by covid-19 to, more recently, instability in the middle east. To meet these challenges, we need a framework that is flexible enough to adapt to change, support innovation and keep passengers at its heart. The Bill will help deliver that framework.

The Government have listened carefully to the scrutiny that the Bill received in the House of Lords. We made a number of significant changes during its passage through the other place, particularly to strengthen accessibility provisions, passenger protections, accountability and parliamentary oversight. I thank peers from across the political parties and the Minister, the noble Lord Hendy, for their efforts in achieving this. As a result, the Bill that is before the House today is stronger than the one first produced.

I have paid close attention to the points raised by Members across the House this evening, and I would like to address them in turn. I will start with the remarks of the shadow Secretary of State, the right hon. Member for Basildon and Billericay (Mr Holden), and the shadow Minister, the hon. Member for Bognor Regis and Littlehampton (Alison Griffiths), who I warmly welcome to her place—it is great to be working alongside her. They have made an impassioned defence of the aviation sector and aviation businesses; I only wish there were more Conservative Back Benchers in the Chamber to listen to their impassioned pleas. I will make two points, the first of which is on the shadow Secretary of State’s point about making a statement. From my experience as a Government Whip, it is never wise to question Mr Speaker’s decisions about what is allocated or not allocated in this House.

Richard Holden Portrait Mr Holden
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Will the Minister give way?

Keir Mather Portrait Keir Mather
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I will just finish my point. I am, however, more than happy to come and answer any questions the Secretary of State may have in this place.

The shadow Minister made an important point about the fact that the Secretary of State has asked the CAA to report within six months. When we had the major outage in 2023, it took two years for the CAA to make a similar report. In that report, it made 34 recommendations, of which 32 have been implemented, so a six-month timeframe is a much shorter, sharper window in which to get definitive answers to these questions. NATS is also required to provide a report to the CAA within a week of the incident taking place, to fully explain the implications of what has happened.

I will now give way to the shadow Secretary of State.

Richard Holden Portrait Mr Holden
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I just wanted to make it very clear that I was in no way questioning what Mr Speaker decided. When he spoke to me, he made it very clear that his understanding was that the Government were going to make a statement. [Interruption.] Government Front Benchers may shake their heads, but that is what I was told by Mr Speaker.

Judith Cummins Portrait Madam Deputy Speaker (Judith Cummins)
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Order. I understand the points that are being raised, but the right hon. Gentleman would be well advised to not relate private conversations with Mr Speaker to the Chamber.

Richard Holden Portrait Mr Holden
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Thank you very much, Madam Deputy Speaker. The point I was making was that I was basically being accused by the Minister of saying something that I had not said. I just wanted to make clear what was said, because the real question here is one of parliamentary scrutiny.

Keir Mather Portrait Keir Mather
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If the shadow Secretary of State is of the opinion that I have mischaracterised what he said, I will of course withdraw that statement, but I suppose we should let the usual channels take their course in figuring that out. I should add that I was slightly remiss in what I said earlier: not 32 but all 34 of the recommendations have been implemented.

Let me now turn to a serious point raised by the shadow Secretary of State about drop-off charges and the amendment that was made in the House of Lords. I can confirm that the Government have no objection to conducting a review of this matter, although we need to think carefully about the terms of such a review and about the time that it will take to ensure that we can engage with the range of issues that Back Benchers have raised today about transparency, charging, ability to pay and free drop-off points.

I understand people’s frustrations when public transport challenges prevent them from accessing airports. My hon. Friend the Member for Macclesfield (Tim Roca) made that point very powerfully. I should also acknowledge, however, that airport drop-off charges operate as part of a wider framework. They are often used to manage congestion—a point made by my hon. Friend the Member for Harlow (Chris Vince)—to meet mode share targets, and to fund infrastructure improvements. However, all that could be part of the conversation that takes place through a review, and our approach will, of course, always be to protect passengers while supporting our airports as businesses.

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Keir Mather Portrait Keir Mather
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I thank my hon. Friend for saying my speech is fantastic, and it is certainly detailed. I know that we have been cruising at altitude for some time, so I will do my best to get on with it. He raises a broader point about climate resilience at our airports, and I can assure him that the DFT takes this matter incredibly seriously and is progressing work across the Government to think about how we can become more adaptive, in partnership with the private sector, to deal with these issues.

Turning to the matter of the legislative consent motion in relation to clause 7, I confirm to the hon. Member for Moray West, Nairn and Strathspey that it does engage the legislative consent process for both Scotland and Northern Ireland. My officials are engaging with their counterparts on this matter, and I will be sure to keep him informed.

The hon. Member for Horsham (John Milne) asked me about the subject of his private Member’s Bill on creating an ombudsman for the CAA. My view is that the costs of setting up a potential ombudsman outweigh the benefits it would bring. Complex CAA decisions, such as changes to flight paths, are already subject to extensive consultation. I am of the view that the CAA has robust remedies for people dissatisfied with customer service issues, including consideration by the independent complaints assessor, while the work of the CAA is also subject to oversight by the Parliamentary and Health Service Ombudsman, and that is before we get into a broader conversation about the CAP 1616 process. However, I am happy to discuss this with him after today’s debate and ahead of Committee consideration to think about what more we can do to address his concerns.

My right hon. Friend the Member for Hayes and Harlington also raised a concern about the CAA reporting within six months and us not dealing with the situation with the immediacy it requires. I can assure him that a report will be coming through from NATS to the CAA within a week. That will provide its initial assessment of what has taken place. We will shortly have more to say on what the impacts are and I will endeavour to keep the House informed. He raised a point about whether there will be sufficient follow-up actions. That is a fair challenge, but I would just say that when the outage occurred in 2023, 34 recommendations were proposed to mitigate reoccurrences by the CAA, all of which were implemented.

On CAA oversight, I agree with my right hon. Friend that that is massively important. I would just say that we currently have a robust system for CAA oversight, although we can of course debate whether to take it further. There is an independent complaints assessor, the CAA’s work is subject to oversight by the PHSO, economic regulation decisions can be appealed to the CMA and there is of course the CAP 1616 process for airspace modernisation, but I would be glad to engage with him on where we can take those matters further.

I will draw my remarks to a close. The Bill is about modernising the UK’s aviation framework so that it remains fit for the future: supporting growth; strengthening passenger protections, particularly for those who find travelling through our airports most challenging; and maintaining the highest standards of aviation safety and the UK’s formidable reputation in this space. Our ambition is to build a competitive aviation system that delivers for passengers and keeps pace with technological and operational change. Today’s debate has been wide ranging and a useful opportunity to discuss important issues with hon. Members. I thank all those who have contributed and I look forward to continuing our discussions in Committee.

Question put and agreed to.

Bill accordingly read a Second time.

Civil aviation (Consumer protection and regulatory reform) bill [Lords]: programme

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Civil Aviation (Consumer Protection and Regulatory Reform) Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 22 October 2026.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Shaun Davies.)

Question agreed to.

Civil aviation (Consumer protection and regulatory reform) bill [Lords]: money

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Civil Aviation (Consumer Protection and Regulatory Reform) Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under or by virtue of any other Act out of money so provided.—(Shaun Davies.)

Question agreed to.

Civil aviation (Consumer protection and regulatory reform) bill [Lords]: Ways and means

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Civil Aviation (Consumer Protection and Regulatory Reform) Bill [Lords], it is expedient to authorise the imposition of charges for the exercise of functions under or by virtue of the Act.—(Shaun Davies.)

Question agreed to.

Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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On a point of order, Madam Deputy Speaker. Members have not had the chance today to properly raise the NATS blackout, which has affected over 100,000 passengers and cost UK aviation tens of millions of pounds. The Secretary of State has not indicated that the Government will provide a statement today in the Chamber. Madam Deputy Speaker, can you tell me what those of us on the Opposition Benches, and all Members interested in raising issues that affect their constituents, can do to get answers from the Government?

Judith Cummins Portrait Madam Deputy Speaker (Judith Cummins)
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That is not a matter for the Chair, but those on the Treasury Bench will have heard the right hon. Gentleman’s remarks, and he will be aware of other parliamentary mechanisms open to him for raising the matter further.