Planning and Infrastructure Bill
Public Bill Committee, 13 May 2025.
Wera Hobhouse (Liberal Democrat, Bath)
I remind Members to send their speaking notes by email to hansardnotes@parliament.uk and to switch electronic devices to silent. Tea and coffee are not allowed during sittings. It will probably get very hot, so if you would like to take off some of your layers, that is absolutely fine.
Clause 21 - Long duration electricity storage
Michael Shanks (Labour, Rutherglen)
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 (Conservative, Hamble Valley)
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 (Liberal Democrat, Taunton and Wellington)
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.
John Grady (Labour, Glasgow East)
I rise simply to support the provision. The first point to note is that this sort of technology has always been critical for the electricity system, which is why we have plants such as Cruachan in Scotland—which I commend to everyone as a great place to visit on their summer holidays—and Dinorwig in Wales. We need more investment in this.
As someone who has been involved in the energy sector for almost 30 years, the simple fact of the matter is that this technology will not be invested in without additional support. The plan for a cap and floor mechanism is well worked through, and has a reasonable pedigree in the electricity industry for supporting investment. Clause 21 seeks to introduce that. Quite properly, it is technology-agnostic, because there is a great deal of innovation in this sector. The provision is important for decarbonisation, energy security and jobs across the British Isles; I therefore support it.
Wera Hobhouse (Liberal Democrat, Bath)
Before I call the Minister, I remind Members to please indicate a little bit more clearly to me—preferably at the beginning of a debate—whether you want to speak.
John Grady (Labour, Glasgow East)
I apologise for not indicating properly.
Michael Shanks (Labour, Rutherglen)
I thank all hon. Members for their contributions and their recognition, first and foremost, of the important role that long-duration energy storage plays in our system. My hon. Friend the Member for Glasgow East referred to Cruachan—the hollow mountain —and I think there is barely a person in Scotland who has never been on a school trip to there. I would recommend it to anyone; it is a fantastic example of not just how important this is to our energy system, but the engineering that has lasted a significant number of decades and still runs on our system. It plays an incredibly important role.
The shadow Minister, the hon. Member for Hamble Valley, raised a number of important questions. Ofgem has consulted on the process for the first window of the cap and floor scheme. It has published detailed, technical guidance on what we would expect those projects to be able to deliver. We, and Ofgem as the regulator, have very deliberately been technology-agnostic to allow more of these innovative projects to come forward. That first round will run its course, but we absolutely would expect that Ofgem and the Government will look at the results of that review and see if there are areas that we might improve on for a further round if that is deemed necessary. We will keep the scheme constantly under review.
The cap and floor scheme that Ofgem has run for interconnectors has been an incredibly successful way of delivering value for money for consumers and of giving that revenue certainty over the long term. It is a model that works very well. We will review the projects that move forward in the scheme. As I outlined, there are technical requirements that they must meet, but there will also be a process of ensuring that the projects deliver value for money for consumers.
The hon. Member for Taunton and Wellington rightly recognises the role that LDES plays in the mix. We could see some battery projects coming forward in this round. Traditionally, they have not been part of long-duration energy storage, but that technology is moving forward rapidly and some might be able to bid into this process. There are some really innovative projects in that space.
It is important to take the question of how we deal with safety risks for batteries in a balanced way. There are safety incidents for a whole range of infrastructure in our country; some get a lot more attention than others in the media, and we need to be careful not to draw more attention to one particular technology at the exclusion of others. But the hon. Member for Taunton and Wellington is right that safety should be paramount in everything we do with every energy system and every part of infrastructure.
We are looking at the wider question of how we might introduce additional safety measures on battery storage sites more generally, not just as part of the LDES scheme. The Health and Safety Executive has a key role in regulating battery designers, installers and operators to ensure that they take the necessary measures to ensure health and safety. It is an important step, and one that we take seriously.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
I want to press the Minister on the point raised by the hon. Member for Taunton and Wellington. On a visit to the London Fire Brigade I learnt that there is a particular set of risks associated with batteries—essentially, the difficulty of putting the fires out.
In the grand scheme of things, batteries are not more serious than, for example, oil storage, but they require different equipment and differently trained and equipped crews to respond. Will the Minister say more about how, as batteries become a more significant part of the energy mix, he will ensure that fire brigades are able to take a view at the planning stage and are made aware of the risks—just in case they have to respond?
Michael Shanks (Labour, Rutherglen)
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.
Clause 22 - Benefits for homes near electricity transmission projects
Paul Holmes (Conservative, Hamble Valley)
I beg to move amendment 83, in clause 22, page 29, line 33, after “benefits” insert
“of £1,000 per year for ten years”.
Wera Hobhouse (Liberal Democrat, Bath)
With this it will be convenient to discuss the following:
Clause stand part.
Paul Holmes (Conservative, Hamble Valley)
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 (Labour, Basingstoke)
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.
Wera Hobhouse (Liberal Democrat, Bath)
I remind Members that the hon. Member for West Aberdeenshire and Kincardine cannot be here because he is not on the Committee, so he is excused.
Lewis Cocking (Conservative, Broxbourne)
It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I rise in support of amendment 83, in which the shadow Secretary of State for Scotland sets out a fair and reasonable system as to what benefits people living near new energy infrastructure should be able to get. It is important to note that the House of Commons Library says that the Government are minded to set aside £2,500 a year for 10 years. The Government should be able to find it within themselves to support our amendment, considering we do not even go as far as the provision that they suggested, according to the House of Commons Library. This amendment should be an easy step to get to where the Government want to go.
I do have some concerns. It has been raised in Committee before that this provision cannot be a simple solution to not doing any consultation. We still need a belt-and-braces consultation, and I want to hear some clear words from the Minister to say that this will not replace that—residents will still be able to have their say, and there will still be a full and proper consultation when new energy infrastructure comes forward.
I am disappointed to see in the legislation hardly any detail about what the community benefit scheme will be. I have said before that if we leave too much ambiguity, electricity providers and developers will want to get away with paying nothing at all or as little as possible. We should not allow that to happen. We should allow people—our constituents—who live near energy infra-structure projects to get the best deal possible, considering that they will have to put up with a lot of disruption. I have some constituents who live near large housing developments. There is a lot of disruption during the construction phase, so I want more detail about what the Government intend to set out.
As I have said, a House of Commons Library paper said that the Government were minded to go to £2,500 a year. The Government should therefore have no issue supporting the amendment because it does not go as far as that. It sets out reasonable benefits that everyone should expect across the country, leaving less to ambiguity and putting power into the hands of this Parliament scrutinising this legislation rather than developers and electricity providers because, as I said, they will want to get away with paying as little as possible.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I rise to speak to new clause 102, which stands in the name of the Liberal Democrats. This would ensure that all communities hosting major energy infrastructure—solar farms, wind farms, major battery storage, gas, nuclear or other power stations, as well as transmission infrastructure, which is already covered by the Bill—would receive a benefit of 5% of the annual revenue of that project.
Safeguarding the future by tackling climate change is vital, but we are only going to achieve that if we bring communities with us and make it affordable for households. We recognise, and of course welcome, the provision in the Bill for community benefits for those near transmission lines, but those living beside nuclear, gas, coal-fired or other power stations are not eligible for any community support. For example, I supported the development of Ham Farm solar park in Taunton, but none the less the community gets no benefit for the significant impact it is having on that community.
It is time that we had a system that gave community benefit for all energy infrastructure if we are to persuade communities and work with communities to host that infrastructure. If we are going to move Britain to a low pollution energy future with more home-grown energy—something the Liberal Democrats strongly support—we must be willing to compensate those expected to live with and host these enormous developments. It is time, in short, that local people benefited from national energy projects.
Liberal Democrats have consistently led the way on community benefit. My right hon. Friend the Member for Kingston and Surbiton (Ed Davey) brought in the first community benefit system of this kind. In 2013, when he was Secretary of State and making the UK the biggest offshore energy generator in the world, he said:
“Communities hosting renewable energy installations play a key role in meeting the national need for secure, clean energy. It is only right that local people should be recognised and rewarded for that contribution”.
He continued:
“developers already offer community benefit packages on a voluntary basis, we challenged them to do more”. —[Official Report, 6 June 2013; Vol. 563, c. 116WS.]
He then announced an increase in the recommended community benefit package in England from £1,000 per megawatt of installed capacity per year to £5,000, which remains the basis of the system today. Now it is time to extend that benefit to all energy, and to make it proportional to the revenue raised by energy projects. My hon. Friend the Member for Inverness, Skye and West Ross-shire (Mr MacDonald), who is a real champion for his constituency, proposed a scheme such as is set out in new clause 102 to Highland council back in 2021. It is important to recognise that the industry has contributed in this area, and in renewables especially.
In February 2024 the Government, in their document, “Developing Local Partnerships for Onshore Wind in England: Government response”, endorsed the 2013 system of £5,000 per megawatt installed capacity. Our new clause would mean that 5% of revenue from all energy projects goes to local communities. To put some figures on that, Grubb and Garjardo at UCL Bartlett estimate that, in a good year for energy generators such as 2022, UK revenue from renewables was £15.5 billion. Put that across 53,000 megawatts of installed capacity, meaning that £288,00 revenue per megawatt of installed capacity was raised, and 5% of that would be around £14,000 in community benefit per megawatt of installed capacity. In less good years, such as 2021, it might be around £7,000 per megawatt of installed capacity.
With average electricity bills in households being £730 in the UK, it is also important to secure reductions in bills by adopting the Liberal Democrat policy in our manifesto of finally decoupling electricity prices from the wholesale gas price. Based on Energy UK’s figures, that would mean a reduction in electricity costs per household of around £200 per year. The sums yielded to communities through the new clause—around £7,000 in 2021—would be comparable with the volunteered figure of £5,000 from the industry, but with the added benefit that when revenues increase, the community benefit would also increase.
So far the Government have taken only limited steps, which are welcome; but as part of the proposals that we put forward for a similar system in a debate in Westminster Hall in October, we were encouraged by the Minister, the hon. Member for Rutherglen, who said:
“On community benefits in particular, we are continuing—at pace”—
that key word—
“the work started by the previous Government to review how we can effectively deliver benefits for communities living near this infrastructure.”
He said that they were,
“developing clear guidance on community benefits for both the infrastructure and the transmission networks.”—[Official Report, 15 October 2024; Vol. 754, c. 276WH.]
My hon. Friend the Member for Inverness, Skye and West Ross-shire provides an example from the highlands. It is in the periphery of the UK—the highlands and elsewhere—that many of the biggest energy projects are located. Typically, they are areas where there are high levels of fuel poverty, limited access to affordable housing, lower wages, and high costs for electricity connection and heating. Rural areas, where many major projects are built across the UK, share the characteristics of departing young people, sparse and remote public services, especially after the ending of the rural service delivery grant, and poor infrastructure.
Other countries provide compelling examples of what can be done. Denmark, for example, requires new renewable projects to offer at least 20% ownership to local residents. In Germany, local authorities, or Länder, such as Munich, develop their own offshore wind farms, and community benefit comes from the tax revenue that they provide.
Our new clause would see two thirds of the benefit funds designated for the community, by which we mean to be spent in the council ward affected, where community groups themselves could and should be delegated with the power to manage and distribute those funds, with one third used for community benefit at a more strategic level for the council area decided by elected councillors. Fuel vouchers, affordable housing and investment into health and social care could be among the priority candidates for the spending of these benefits. It is unacceptable that these communities, which provide the backbone of our energy revolution, often see little financial benefit from hosting such infrastructure.
Michael Shanks (Labour, Rutherglen)
I thank all Members for an interesting debate. Amendment 83 was tabled by the hon. Member for West Aberdeenshire and Kincardine. He is ever present in these discussions, but never present—
Luke Murphy (Labour, Basingstoke)
Can I withdraw my criticism about the absence of the shadow Minister for Energy?
Michael Shanks (Labour, Rutherglen)
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 (Conservative, Hamble Valley)
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 (Labour, Rutherglen)
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.
Ellie Chowns (Green, North Herefordshire)
I thank the Minister, and I absolutely recognise the importance of the principle of community benefit. However, would he not agree with me that it becomes problematic if we put in specific numbers, such as £250 or £1,000 a year? Inflation will change what that means, so is it not more relevant and logical to place a requirement more like the amendment advocated by the hon. Member for Taunton and Wellington, which talks about a community dividend that is in proportion to the revenues generated by the project rather than an absolute number?
Michael Shanks (Labour, Rutherglen)
I thank the hon. Lady for that point; I will come to the new clause shortly. The difficulty with that approach for transmission infrastructure is that by definition it goes through so many different communities in a linear way that it would be really difficult to divide up that funding among communities. How you define each community is quite challenging, whereas defining households that are within a certain distance of pylons, for example, is very easy, and we want to give a direct benefit to those households.
Ellie Chowns (Green, North Herefordshire)
Logically, we could divide by the number of miles of transmission infrastructure in each community.
Michael Shanks (Labour, Rutherglen)
I understand the point that the hon. Lady is making, but a transmission line goes through a significant number of communities in a linear way. For a wind farm, you could draw a line around it and benefit all those communities; a transmission line does not work that way, so we would be giving to a significant number of communities who have maybe one or two pylons near them. That is why we think what is most important is that the households closest to the infrastructure get the direct community benefit.
To the point made by my hon. Friend the Member for Basingstoke, this is not the only part of the Bill—we will also have a community benefits fund for infrastructure like substations, where if there is one particular piece of infrastructure built in a community, with all the disruption that goes with building that, wider community benefits come from that as well. It is not one or the other; we are doing both, but in a legislative sense, we only have to legislate on the Bill discount scheme, which is what we are talking about in this amendment.
The shadow Minister asked for detail on some important points—including that we should set out in secondary legislation the specific level of benefit and the duration over which it will be paid. Of course, the £250 a year is a “minded to” position that we have come to as a result of the consultation that the previous Government did and the evidence that we have seen, but that will be set out in secondary legislation, which—to the hon. Lady’s point—allows us to alter that over time if the scheme is successful. This is, in some ways, a trial to find out whether the intended policy outcomes result. I hope that for those reasons—I will come to some others—the hon. Member for Hamble Valley might withdraw his amendment.
Clause 22 is about creating a financial benefit scheme for eligible households living near certain new or significant increases in network transmission infrastructure, and inserts new sections into the Electricity Act 1989. It empowers the Secretary of State to establish and determine the overall design of the scheme, including qualification criteria, scheme administration, enforcement, and provisions requiring the benefit to be passed on.
The “pass-through provision” is outlined in new section 38B(2), and is essential to ensure that the right consumers benefit and to ensure that when an intermediary sits between the electricity supplier and the end user—as happens in some cases—the intermediary will be required to obtain the full benefit and then pass it on to the end user. If this is not complied with, new section 38B(3) allows regulations to provide for the withdrawal or recovery of benefits made to intermediaries.
To enforce compliance with the scheme, new section 38C details the enforcement provisions that may be made in regulations, and I hope this answers the shadow Minister’s point around potential fraud in the system and the imposition of penalties that we will make through secondary legislation for instances of regulations not being complied with. Finally, new section 38D deals with provisions around data collection for the purposes of administering the scheme. Overall, it is worth remembering the purpose of this clause: it is to improve the public acceptability of network transmission infrastructure.
Lewis Cocking (Conservative, Broxbourne)
I appreciate the Minister’s correction of what I said—the Government are less generous than I interpreted, in terms of the £2,500 over 10 years. But can he give us some warm words about this not replacing any consultation and say that it is on top of all of the consultation and residents being allowed to have their say, and that we will not allow electricity companies just to pay some money and then get away without doing any consultation at all? Can he give us some reassurances on that?
Michael Shanks (Labour, Rutherglen)
It is a very important point, and this will come through in the discussions that we will have more generally in this Committee around community consultation, but it will continue to play an important part. I think it is important to separate out any question of compensation from community benefit.
This is not a compensation scheme, and landowners that currently are compensated for infrastructure being built will continue to be compensated through whatever channels that is decided in. This is a community benefit, so it is additional. It is about recognising that it is critical for the future of the country that we build new grid infrastructure, and that if someone hosts that infrastructure they should gain some benefit from doing so. This is our proposal for doing that, alongside the community benefit funds that we have announced.
The Government believe that it is appropriate to set out the full detail on this in regulations, as is the case in many such schemes that have been set up over the years, due to the technical level of detail that will be required, and have drafted this clause to make sure that it applies only to transmission infrastructure, as it is not the intention that it should apply to other technologies. I commend clause 22 to the Committee.
That brings me to new clause 102, tabled by the hon. Member for Taunton and Wellington, which seeks to introduce a scheme that would ensure communities are provided with financial benefits from hosting major energy infrastructure projects from a range of technologies. I welcome the intent of this measure. Indeed, I have had a number of conversations with the hon. Gentleman’s colleagues on this very topic over the past nine months in which I have had the privilege of having this job, and spoken fairly recently to his colleague, the hon. Member for Inverness, Skye and West Ross-shire (Mr Angus MacDonald)—I was in his constituency yesterday, seeing the investment that this Government have made in port infrastructure in his constituency.
We therefore agree broadly with the hon. Member for Taunton and Wellington’s point about how communities should benefit from all this energy infrastructure, but the new clause is not the right way to do it. We are already considering—he quoted myself to me, and I was delighted to hear I was fairly coherent in that debate—the question of wider community benefits. Clearly, at the moment most such community benefit schemes are voluntary schemes run by developers. It is important to say that some of those are actually hugely successful, and communities welcome the collaborative approach in drawing them up, but others are very unsuccessful, and leave communities without the genuine benefits that they should get. We are therefore looking at this really closely at the moment.
As my hon. Friend the Member for Basingstoke noted, we published guidance in May 2025 on community benefit funds for those who live near electricity transmission infrastructure, and shortly we will publish updated guidance for onshore wind in England, which, of course, follows the 10 years of the previous Government’s ban in England. We are also exploring options for our overall approach to community benefits, to provide consistency across different technologies and to maximise the ambition from that. We have left on the table the option of that being mandatory in every case, but we want to look closely at how that would work, and how the design would work to ensure that we are not setting a scheme that does not suit the flexibilities that individual communities might want to take advantage of.
I reiterate that communities are providing a service to this country when they host clean energy infrastructure and there should be a benefit from it. Towards the end of the hon. Gentleman’s speech, he rather veered off community benefits and into an equally important space on community ownership, which is something that I have also had a number of important conversations about. We see ownership of energy by communities as a really important step as well, and that is a step up from community benefits.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I am extremely grateful to the Minister for addressing the serious points in the new clause, and particularly for saying that mandatory schemes will not be taken off the table. He was coherent back in October, except—if I might suggest—for the phrase “at pace”. Could he explain what “at pace” means in this context, in terms of what the timescale might be?
Michael Shanks (Labour, Rutherglen)
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 (Conservative, Hamble Valley)
I am grateful to the Minister for some of the answers he has given—
Michael Shanks (Labour, Rutherglen)
Some?
Paul Holmes (Conservative, Hamble Valley)
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 (Labour, Basingstoke)
Will the shadow Minister give way?
Paul Holmes (Conservative, Hamble Valley)
I will, yes—is he going to give me another one?
Luke Murphy (Labour, Basingstoke)
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 (Conservative, Hamble Valley)
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.
Wera Hobhouse (Liberal Democrat, Bath)
Before we move on to the next clause, I remind Members that, although I recognise the importance of the principle and the discussion of community compensation and benefits, we need to press on and get through our agenda of line-by-line scrutiny. It is important to discuss the principles, but please also remember that we have a very long agenda in front of us.
Clause 23 - Electricity transmission systems: extension of commissioning period
Michael Shanks (Labour, Rutherglen)
We come to the most exciting clause in the Bill: the offshore transmission owner, or OFTO, regime. I can see everyone is on the edge of their seats.
This is an incredibly important clause. It provides a competitive market for offshore electricity transmission, which is important because it helps us to achieve cost-effectiveness in the building and operation of offshore wind farm connections on to the national grid. The clause is part of our efforts to ensure the regime supports the UK’s continuing ambition to be a world leader in offshore wind.
The clause extends the time that wind farm developers who build their own transmission assets have to divest those assets to an independent offshore transmission owner. That time is currently 18 months and the clause increases it to 27 months. That period is known as the generator commissioning clause, or the GCC.
The clause addresses the increase in size and complexity of wind farms since the GCC was first introduced. My Department issued a call for evidence on the OFTO regime, which closed in February 2024 under the previous Government. The responses suggested that the GCC period was too short and should be extended due to the increase in the size and complexity of wind farms, which has led to an increased risk of developers experiencing technical faults, and has meant more time is required for more complex commercial negotiations.
Without the clause, we would expect to continue to see many offshore wind farms needing to request individual transmission licence exemptions, which we bring to this House for decision, if they are unable to transfer transmission assets within the current 18-month period. The vast majority of offshore wind farms entering the process since 2016 have needed to apply for one of these exemptions, with each exemption requiring a separate statutory instrument to be considered each time.
The clause is therefore expected to reduce very significantly the number of offshore wind farms requiring an exemption. The requirement for an exemption leaves wind farms at risk of shutting down, taking a source of renewable energy off the grid and endangering the UK’s energy security, which is of course something we all want to avoid. This is a technical but very important clause and I commend it to the Committee.
Clause 24 - Use of forestry estate for renewable electricity
Michael Shanks (Labour, Rutherglen)
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 (Conservative, Hamble Valley)
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 (Labour, Basingstoke)
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.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
My great-grandfather spent his entire working life at the pit in Cwmcarn, which is now a forestry commission site. There is evidence of the coal that was dug for centuries on that site, which is now a place that is enjoyed for leisure by all. Broadly, I echo the comments about welcoming the clause.
On page 35, line 20, the excluded types of fuel are listed, to determine what may be considered to be renewable. Waste to energy is not included; nor is the sustainable fuel mandate, which is currently focused on aviation fuel, but ultimately involves producing a gasoline product entirely from waste the purpose of which is to create energy. The fuel may go into aircraft, but it could be used for other purposes. The concept of waste to energy means, essentially, building an incinerator on forestry land to burn waste and generate electricity. By implication, that is something that the Government envisage as a result of that subsection. Could the Minister say more about that?
Michael Shanks (Labour, Rutherglen)
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 (Conservative, Hamble Valley)
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 (Labour, Rutherglen)
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.
Clause 25 - Fees for certain services
Matthew Pennycook (Labour, Greenwich and Woolwich)
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 (Conservative, Hamble Valley)
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 (Labour, North Warwickshire and Bedworth)
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.
Lewis Cocking (Conservative, Broxbourne)
I have a few comments, although I support the principle of this provision. There is not enough capacity in some planning departments, so I agree that fee cost recovery and some of the additional fees, particularly those relating to highways matters, are really important for local authorities, but I have a few questions. When will the money be paid? Will it be paid before the development has started, so there is capacity in the system? People sometimes make planning applications and get planning permissions but do not actually build out the development, so will the fees still need to be paid in those cases?
I have some concerns that I would like the Minister to comment on. Some authorities still have section 106 agreements, and I am concerned that developers will just move money from those section 106 agreements—money that is to be put into education or healthcare, for example—by saying in a viability assessment that they now have to pay these fees to the local authorities, particularly around highways. How can we stop it being the same money, just moved around? These fees should be additional to the money from section 106 agreements that the council was already getting, as they are going directly into capacity issues within planning departments. I am worried that developers will try to play games by just moving the same money around the system or cutting the same pie in a different way, which will not help local authorities. I would like to hear the Minister’s response to those comments, but I wholeheartedly support what the Government are trying to do in this specific case.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I welcome both the broad support for the intent behind the clause and the very reasonable questions that have been put to me by members of the Committee. To be very clear, because we have strayed into pavement applications, section 106 applications and other things, this clause very specifically relates to allowing local authorities and statutory consultees to recover the costs that they incur when providing services on highway-related applications only. We may discuss later some of the other matters and the general position of planning authorities and the challenges they face in capacity and capability. I just wanted to make that point.
All the clause does is bring the Highways Act 1980 into line with the cost recovery provisions established under other infrastructure consenting regimes. It is broadly accepted that we need to support local planning authorities and statutory consultees to process applications in a timely manner. We think that will drive high-quality and timely—
Lewis Cocking (Conservative, Broxbourne)
Will the Minister give way?
Matthew Pennycook (Labour, Greenwich and Woolwich)
I will address the hon. Member’s point, if he will wait, and then he is more than welcome to come back in. As I said, it help to drive timely and high-quality inputs into the process, which will speed up the delivery of highway infrastructure projects and avoid extra costs. This is an important point to make: there are costs associated with the fact that applications are not taken through in a timely manner. If they are delayed or time out, that can result in design changes or the process to reach a decision being extended, which brings extra costs. In general terms, we want to ensure, as with many of the provisions in the Bill, a more streamlined, certain and faster consenting process.
It will be for the Secretary of State and Welsh Ministers to set out in regulations those bodies that are able to charge the fees; they may include bodies such as the Environment Agency and Natural England. Regulations and guidance will set out in more detail what advice and information will be covered by the cost recovery process, as well as other matters, including how fees are calculated, when fees can and cannot be charged and the point at which fees are charged.
We will get into separate issues relating to build out, but to respond gently to the point made by the hon. Member for Broxbourne, I cannot see how a very specific highways-related application will necessarily bleed over into section 106 negotiations. None the less, I will reflect on that point, as we do not want cost recovery provisions in the clause to allow developers to reduce section 106 contributions on the basis that they are having to pay this charge. As I said, delegated powers will ensure that the cost recovery power is future-proofed by ensuring that it is flexible enough to account for changes, not least in inflation, which we have discussed before.
Lewis Cocking (Conservative, Broxbourne)
I completely understand where the Minister is coming from on specific applications just for roads. I suppose my comments were related to new towns or garden villages, where there will be lots of facets to those applications—house building, new roads and what have you. I therefore welcome the Minister’s comments on the fact that he will look at those issues that I have raised.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I certainly will do so, and, just to stress the point once again, what we are trying to do here and in a number of other clauses in this chapter is broadly about bringing the processes under the Highways Act 1980 and the Transport and Works Act 1992 into line with other consenting regimes. As I said, in this case, it is about ensuring that cost recovery provisions established under those other infrastructure consenting regimes apply in the case of the Highways Act. However, I certainly will be more than happy to reflect on the hon. Gentleman’s point, and on those made by other members of the Committee. On that basis, I commend the clause to the Committee.
Clause 26 - Power of strategic highways company in relation to trunk roads
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clause 26 will allow National Highways to handle the majority of the administrative actions for creating or changing the status of a trunk road. As I am sure all Committee members are aware a section 10 order under the Highways Act is used to designate or declassify a road as a trunk road.
Trunk roads are major routes in our highways network that are managed by National Highways instead of local authorities. Having the power to make a road a trunk road is an essential step in ensuring that key roads are maintained at the national level. Trunk roads perform an important role in enabling safe, reliable and often long-distance journeys by both people and goods between our major towns and cities, and provide access to our international gateways.
The current system places much of the process for handling requirements of these section 10 orders—namely their preparation and publicity—on the Secretary of State, rather than the highways body itself. Clause 26 will simply transfer the administrative control of the application from the Secretary of State to the strategic highways authority—National Highways. It will also align the handling process with the way in which applications under other parts of the Highways Act are currently managed.
I stress that the Secretary of State will remain the ultimate decision maker on the application. However, by removing the administrative burden from the Secretary of State, clause 26 will create a more efficient process, which we believe will lead to faster decisions on new and upgraded trunk roads. This will help to deliver road improvements more quickly, support economic growth, enhance transport links and reduce congestion.
Paul Holmes (Conservative, Hamble Valley)
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 (Labour, Greenwich and Woolwich)
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 (Conservative, Hamble Valley)
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.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I very much welcome that intervention, as will my officials, I am sure. It saves them a letter—although letters may be forthcoming in the course of debate if we require further detail on very technical points. I will just stress the point again: I think the confusion lies in the fact that section 10 orders apply only to National Highways, if the shadow Minister needs reassurance in that regard. But broadly, these are procedural changes that just allow, as I have said, the administrative burden to be transferred from the Secretary of State to National Highways.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
Just to pick up the point made by my hon. Friend the shadow Minister—again, at the risk of placing officials in need of writing a letter—we can consider London, where we have Transport for London, Highways England and various other agencies or companies that manage the miles and stretches of those motorways. Very close to my constituency we have the M40/A4 motorway, which is literally the same road but transfers from being a Highways England road to a TfL road at the boundary of Greater London. There could be significant issues where, for example, local authorities that are responsible for neighbouring roads would need to be consulted, so I would be grateful if the Minister could clarify, particularly in respect of where we have TfL, red routes and things like that, all of which I think would be within the scope of the clause, that that has been fully considered so that we can ensure that we do not see unnecessary friction as a result.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I do not think that in any circumstances we would see friction on elements where the Secretary of State remains the body that takes forward the administrative process. I cannot envisage a way in which that would cause friction. Just to be very clear, a section 10 order under the Highways Act is used to designate or declassify a road as a trunk road. That is action carried out by National Highways, as I have said. We simply want it to take the administrative actions for creating or changing the status of a trunk road. I am more than happy to write to the hon. Member for Ruislip, Northwood and Pinner—apologies to my officials —on this administrative change as to who takes on those actions, namely National Highways rather than the Secretary of State, and how that interacts, which I think was his point, with the boundary of roads managed by the Greater London Authority, which is not covered by this clause of the Bill.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
I am just reflecting on my experience as a councillor in local government. There are often disputes. For example, the creation or designation of a red route clearway as a trunk road removes all parking along the length of that route and also affects things like bus services along it, so there are situations in which there may be a difference of opinion between a local authority, which is the current manager or administrator of the route, and a trunk road manager, who wishes to designate it as such for the benefit of an infrastructure project but clearly will not be subject to the consequences that that would have for bus routes, parking and other issues under the ambit of the local authority. I am just looking for clarity that there is a process by which those issues will be resolved and that there will be a relevant level of consultation, so that the kind of tensions that we saw around low traffic neighbourhoods with a dispute between Transport for London and a local authority about what was going on in a local area are not replicated.
Wera Hobhouse (Liberal Democrat, Bath)
I remind everybody of the tightness of the parameters within which we need to keep this debate. Otherwise the Committee will have to find another day to sit. By no means do I want to stifle debate, but it is also up to the Minister to allow interventions or not.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I think we will all know where to place the blame if that scenario arises—we will not need to add an extra day.
I gently say to the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner, that he is comparing apples and pears. To be as clear as I possibly can be, all the requirements set down in the legislation in respect of preparing and publishing materials, and the fact that the Secretary of State remains the decision maker, remain in place. The clause purely changes the body overseeing the administrative actions associated with those applications. On that basis, I think this is a fairly uncontroversial procedural change. We have committed to write to the hon. Gentleman about any possible interactions with the Greater London Authority’s management of red routes. On that basis, I commend the clause to the Committee.
Clause 27 - Deadlines for consultation and decisions on certain orders and schemes
Matthew Pennycook (Labour, Greenwich and Woolwich)
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 (Conservative, Hamble Valley)
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 (Labour, Greenwich and Woolwich)
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.
Clause 28 - Procedure for certain orders and schemes
Matthew Pennycook (Labour, Greenwich and Woolwich)
The clause seeks to address the fact that under the existing system, a statutory instrument is required to approve applications under sections 16 and 106(3) of the Highways Act, and for orders under section 10, which are made by the Highways Authority in the form of a draft statutory instrument, whereas a simpler confirmation process exists for other applications under that Act.
An SI is currently required for applications to make or unmake a trunk road or special road, to construct a special road, or to build a road bridge over or road tunnel under navigable waters. Those statutory instruments are not subject to any parliamentary procedure, but they take extra time to prepare. That represents an unnecessary and disproportionate burden of bureaucracy in our view.
As I have mentioned, the Highways Act already contains a quicker process for confirming other types of application via a confirmation document issued by the Department for Transport. The clause will simply allow the applications to which I have referred to be confirmed via a confirmation document issued by the Department. In short, that again aligns the handling processes across the relevant parts of the Highways Act. That will support the Government’s goal of speeding up the consenting of transport infrastructure by streamlining the process.
To maintain transparency in the decision-making process, the clause ensures that a confirmation notice must be published in the public domain. I commend the clause to the Committee.
Clause 29 - Compulsory acquisition powers to include taking of temporary possession
Matthew Pennycook (Labour, Greenwich and Woolwich)
The clause concerns compulsory acquisition powers in relation to projects undertaken under the Highways Act 1980. No clear provision is currently available to allow Highways Act project promoters to temporarily use and possess land, such as for construction purposes, by compulsion. In lieu of such a provision, if a project promoter cannot come to a commercial agreement with the landowner or owners for a licence to access the land required, the project promoter will typically apply for powers of compulsory acquisition to enable it to buy and use the land. That approach is disproportionate when the land is needed only temporarily for construction purposes. Additionally, the current arrangement offers the landowner no legal right to regain their land.
The intention of the clause is to provide clarity that project promoters, under the Highways Act 1980 regime, can temporarily use and possess land by compulsion. It does so by introducing a clear and proportionate legal power to require authorities that have already identified a piece of land as necessary for the planned construction of the proposed highway works to temporarily use land when they cannot reach agreement with the landowner, while also protecting landowner rights to regain their land and support compensation mechanisms.
By reducing legal ambiguity, the power will help to shorten often protracted land negotiations, speeding up the process to submit an application for highways works, ultimately thereby delivering transport projects quicker. In doing so, it will contribute to the Government’s ambition to simplify the consenting of major transport infrastructure projects.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
Broadly speaking, the Opposition support the intention set out in the clause. Improving the efficiency of such works is clearly a very logical step. Could the Minister say a little more about how the power will interact with the powers and duties that apply to statutory undertakers? I am thinking, for example, of where it is necessary to divert a gas main or water main, or other significant infrastructure, where there are already legal rights in place that can be used for that purpose. An issue we are all familiar with is the disruption caused to transport networks when major works are being undertaken. Will there be a process for ensuring a degree of co-ordination? Will there be a requirement or expectation for consultation so that, where a highways body wishes to undertake that work, it can possibly be co-ordinated with the work of other statutory undertakers involved in the same project, to minimise the disruption?
Will there be an assurance that that process will provide for an appropriate level of compensation for the landowner whose land is being taken temporarily, as that often seems to be a source of dispute? This should not become a back-door way by which a highways agency, as the lead body, says, “We are going to take that at no recompense,” rather than going through a process of negotiation to achieve an agreed sum in respect of the loss of amenity to the owner of the land.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I thank the shadow Minister for that contribution and I recognise the reasonable concern he raises. If he will allow me, because it is a very technical aspect of the Bill, I will write to him with full details of how we see this power working, particularly in respect of compensation measures. I think his remarks recognised that the present arrangements do not provide the necessary certainty for landowners that they can regain their land. They force applicants to use disproportionate powers. We are trying, through the clause, to provide certainty that there is a way to take possession of land temporarily when required.
It is worth saying that there is a temporary possession power in the Neighbourhood Planning Act 2017. It is a different mechanism; it has not yet been enacted. We are trying to achieve a fairly simple clarification through the Bill, which will not require us to enact powers that are above and beyond what is required under the simplification to which the clause gives effect. It is an uncontroversial procedural change that will make the process more certain and efficient for both parties and provide them with reassurances.
Clause 30 - Replacement of model clauses with guidance
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clauses 30 to 41 make various amendments to the Transport and Works Act 1992. I would hope that the Committee has a shared recognition that that Act of Parliament needs to be more efficient for applicants applying for transport infrastructure schemes such as new railways or tramways in England and Wales. This will allow transport infrastructure projects to be delivered as efficiently as possible, providing faster decisions and support economic growth.
Clause 30 allows the Secretary of State in England and Welsh Ministers in Wales the power to move template model clauses from legislation into guidance. The model clauses are intended to streamline the drafting of Transport and Works Act orders, but they can currently only be amended through secondary legislation. Setting them out in more flexible guidance, rather than legislation, will allow them to be updated more regularly via a more efficient and faster process. That supports the Bill’s aim of simplifying and streamlining transport rules, ensuring that we have a more efficient legal framework moving forward. On that basis, I commend the clause to the Committee.
Clause 31 - Removal of special procedure for projects of national significance
Matthew Pennycook (Labour, Greenwich and Woolwich)
I hope that on this clause, at least, we can avoid detailed questioning by the Opposition, because there is nothing with which issue can be taken. It is a simple tidying up of the statute book. The Transport and Works Act requires updating to reflect the wider changes that are to be implemented in the planning sector. It was, as I have mentioned, given Royal Assent in 1992.
The purpose of clause 31 is simply to remove a redundant section of the Transport and Works Act, which refers to schemes considered to be “of national significance”. Since the Planning Act 2008 was introduced as the consenting regime for nationally significant infrastructure projects, with clearly defined thresholds for what is considered “of national significance”, it has effectively rendered that part of the Transport and Works Act entirely redundant.
The effect of the clause is a simple procedural fix. By removing outdated references, the clause will make it easier for developers and public bodies to understand and apply the law, while also reducing administrative burdens. I commend the clause to the Committee.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
Throughout proceedings on the Bill, we have flagged up the important point that is highlighted by subsection (3), namely the lack of retrospective application. I would like the Minister’s response on a point that is of concern to the Opposition. There is always a risk that powers that are due to expire will be used and exploited in advance of new legislation coming in. What measures does the Minister have in mind to ensure that that does not turn into a problem?
Matthew Pennycook (Labour, Greenwich and Woolwich)
I thank the shadow Minister for his question. As ever with his points, it was well made. I will go away and reflect on it, but I struggle to see how the use of the clauses we are considering in the Transport and Works Act—as I have said, they have been rendered entirely redundant since they were superseded by provisions in the Planning Act 2008 that clearly define thresholds for what is deemed to be nationally significant infrastructure —give rise to the challenge that he posits.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
The Minister has served on a planning Committee, and he will be aware of the challenges that arise where, for example, a historical permission is secured on which a developer subsequently seeks to rely. It is clear that the intention is, quite rightly, to remove those redundant clauses. The concern I am highlighting is that when permission rights have arisen under the clauses that have been made redundant and a developer later relies on them, we must ensure that the process is effectively managed.
Matthew Pennycook (Labour, Greenwich and Woolwich)
If I have understood the point correctly—I am more than happy to write to the shadow Minister and set this out in detail, but he can intervene if I have not got this right—the challenge is about applicants who in the past have relied on the provisions of the Transport and Works Act 1992 that we are today arguing are redundant, and how permissions obtained on that basis prior to the Planning Act 2008 interact with the changes in the clause. It is essentially a concern about retrospection in relation to the clause.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
We are zeroing in on the issue that I seek to highlight. The statement in subsection (3) says that the clause does
“not apply in relation to an application in respect of which a notice”
has been made
“before this section comes into force.”
Early on in his remarks, the Minister referred to sections of the Neighbourhood Planning Act 2017 that have not come into force, eight years after they underwent scrutiny in a Committee like this one and Parliament passed them. This clause may not come into force for some considerable time after we debate it in Committee and the Bill becomes law—indeed, it may never come into force. If the previous legislation remains the relevant legislation for an extended period, or if a developer sees advantage in securing a permission now, under the previous legislation, before the new measures take its place, do we have an appropriate process for dealing with that?
Matthew Pennycook (Labour, Greenwich and Woolwich)
I understand the point, but I think the shadow Minister is conflating an application under the relevant provisions in the Transport and Works Act and what the clause seeks to clarify, which is when schemes are considered to be of national importance. As I said, with the Planning Act 2008, we have an Act of Parliament that provides very clear thresholds for when schemes are considered of national importance.
I am more than happy to write to the shadow Minister with further detail, but I think he raises a valid point. We think the redundant section 9 should be removed from the Transport and Works Act to give developers and public bodies clarity on how the law should be applied going forward, while also reducing administrative burdens. The easiest way—mindful of your strictures, Mrs Hobhouse—to move the Committee on and ensure that we can debate important clauses later in the Bill is for me to commit to writing to the shadow Minister with exhaustive detail on that point.
Clause 32 - Duty to hold inquiry or hearing
Wera Hobhouse (Liberal Democrat, Bath)
With this it will be convenient to consider clause 33 stand part.
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clauses 32 and 33 relate to public inquiries under the Transport and Works Act. Clause 32 will amend the circumstances in which an objection is considered to an application under that Act. Currently, if an objection is raised to an application under the Act, a public inquiry or hearing can be required to be held, even if the objection is deemed to lack substance. That can result in costly and lengthy public inquiries taking place, even where objections lack merit.
The length of the inquiry process can range greatly depending on the complexity of what is being examined, from six months to two years. Clause 32 will mean that a public inquiry is held only when an objection is raised that is considered by the determining authority to be serious enough to merit such treatment. A streamlined process for considering objections saves time and cost for applicants. All objections will continue to be decided—I want to stress this point—entirely on the merits of the arguments put forward. This not about removing the voices of individuals or communities; instead, it ensures that the objections process remains proportionate, so serious objections are given due attention.
Clause 33 makes amendments to section 11 of the Transport and Works Act regarding decisions on costs arising from a public inquiry. It will enable an inspector conducting the public inquiry to make decisions on those costs, unless the Secretary of State or Welsh Ministers direct that a cost decision is to be determined by them. Currently, the inspector must write a report with recommendations of costs to the Secretary of State based on the conduct of parties taking part in the public inquiry. That approach contrasts with the Planning Act 2008, where cost decisions are made by the examining authority.
By delegating the decision-making capability to the inspector conducting the inquiry, we will ensure that claims are resolved more quickly for all stakeholders. That will reduce administrative burden in determining such cases and save time, helping to deliver transport infrastructure more efficiently. The Secretary of State in England, and Welsh Ministers in Wales, will retain the ability to direct that a cost decision is to be determined by them should they not wish to delegate responsibility on a potentially contentious case. The clauses, as I have argued, will reduce unnecessary bureaucracy and administrative burdens, helping to deliver transport infrastructure more efficiently. I commend them to the Committee.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I rise to query some of the provisions. We understand that the Government’s proposal would effectively remove the automatic right to call a public inquiry. The Minister knows we are concerned that the Bill seeks to remove people from the process, and to remove the opportunity for objections in the planning process. That is a very serious concern for us. The clause proposes a public inquiry only where the Secretary of State
“considers that the objection is serious enough”.
Many organisations have raised concerns about that. The Heritage Alliance, for example, made the point that the clause increases
“the Secretary of State’s discretion to decide whether an objection is ‘serious enough’ to warrant…an inquiry”.
It argued:
“The ‘serious enough’ test is expansive”
and does not aid clarity. It
“might not adequately protect significant designated and undesignated heritage assets.”
It would be useful to get clarification on what exactly the Government mean by “serious enough”. There is, if I recollect correctly, guidance for inspectors in the Town and Country Planning Act on when to decide to hold a public inquiry as opposed to an informal hearing, or to consider an appeal by written representations. It seems appropriate that if the clause is to be brought in, there should be some guidance and reassurance on what is considered serious enough, because the proposed test in the clause is extremely arbitrary.
Matthew Pennycook (Labour, Greenwich and Woolwich)
Hopefully I can provide the hon. Gentleman with further clarification. I recognise and appreciate the valid concerns he raises. As things stand, it is not the case that any objection to an application of the kind we have described results in a public inquiry or hearing, but it can in many instances give rise to one.
For example, when an objection comes from a landowner whose land would be affected by compulsory purchase; when a local authority for the area concerned receives an objection that they do not consider frivolous or trivial; or when other concerns are raised that need to be considered, a public inquiry or hearing takes place. In many circumstances, that is appropriate. In others, it may be the case that an exchange of correspondence, for example, can achieve the same goal without the need for a lengthy and costly public inquiry. I hope that gives him some reassurance as to the type of circumstances—
Gideon Amos (Liberal Democrat, Taunton and Wellington)
Will the Minister give way?
Matthew Pennycook (Labour, Greenwich and Woolwich)
I am pre-empting what the hon. Member is going to intervene on, so I will finish making the point and he can come back to me. I hope he is reassured as to why we consider the change necessary, and the outcome that we are trying to achieve.
The hon. Member raises an entirely valid point about the fact that it will be for the Secretary of State for Transport to decide on a case-by-case basis when objections meet the test that he rightly reiterated. I will reflect on how we might provide further clarity, perhaps through guidance on the circumstances in which that test should be applied, but I recognise there is a fair challenge about what cases will come through this route.
I hope the hon. Member will recognise that the problem we are trying to resolve is that under certain circumstances, as things stand, a public inquiry or hearing can be triggered where it is not necessary, and there may be a far more proportionate way of moving things on and responding to objections—for example, in an exchange of correspondence. I hope that reassures the hon. Gentleman somewhat. As I have said, I am happy to reflect and come back to the Committee with further thoughts on this point.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I simply say that doing away with, effectively, an automatic right to a public inquiry in certain circumstances, as the Minister has clarified, and replacing that with the words “serious enough” is a big leap. I strongly encourage the Minister to put on record guidance on what relevant parties can expect will be considered serious enough to merit a public inquiry.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I do not have much more to add. There is a genuine problem with the current arrangements that we need to resolve. As I have said, in some circumstances a public inquiry or hearing is not necessary; things can be dealt with in other ways. Under the current arrangements, public inquiries and hearings can be triggered even if an objection is considered to be lacking in substance. That is onerous and disproportionate, but the hon. Gentleman raises a fair point about the basis on which the Secretary of State for Transport will determine whether the objection is of the relevant level of seriousness to require a public inquiry or hearing. I am more than happy to come back to him on that point in due course.
Clause 34 - Deadline for decisions
Wera Hobhouse (Liberal Democrat, Bath)
With this it will be convenient to debate clause 35 stand part.
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clause 34 provides a power for the Secretary of State or Welsh Ministers to introduce statutory deadlines for the determination of Transport and Works Act order applications. Unlike other infra-structure consenting processes, the Transport and Works Act process does not have statutory timeframes to govern the duration of its decision stage, and that can lead to uncertainty and delays. The clause will bring it into alignment with other planning consenting processes, such as the Planning Act 2008 process, and introduce greater accountability of decision makers.
Clause 36 - Fees for certain services
Matthew Pennycook (Labour, Greenwich and Woolwich)
The clause allows the Secretary of State in England and Welsh Ministers in Wales to make provision in regulations for public authorities—limited to certain statutory bodies and local planning authorities —to charge applicants for their services in connection with Transport and Works Act orders. Currently, public authorities cannot recover costs for this work, and that can lead to delays because of a lack of resourcing. The clause will apply to parts of the Act associated with approving the construction or operation of railways and tramways, externally guided buses, monorails and certain other types of guided transport.
Supporting the capacity and capability of local planning authorities and statutory bodies will encourage timely and high-quality inputs into the process, which will speed up the delivery of highways infrastructure projects. I commend the clause to the Committee.
Paul Holmes (Conservative, Hamble Valley)
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 (Labour, Greenwich and Woolwich)
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—
Matthew Pennycook (Labour, Greenwich and Woolwich)
We were discussing clause 36 and I was attempting to reassure the shadow Minister, the hon. Member for Hamble Valley, that his concerns were unfounded. We were discussing fees charged by particular public bodies for providing services associated with Transport and Works Act 1992 orders.
As I made clear, the power is subject to delegated procedures, ensuring that it is flexible enough to account for any changes in the provision of services in the future. I reassure the shadow Minister that the power allows for the charging of fees for services only on a cost-recovery basis. The regulations will set out any required safeguards, just as there are safeguards in place in regulations that relate to the charging of fees by authorities on nationally significant infrastructure project cases, for example. Subsection (4) makes it clear that applicants will be required to have regard to guidance that will provide detail.
The shadow Minister asked me about two specific points. On appeals, there is no set appeals process for the fees charging system, other than the ultimate recourse to judicial review on the basis that the fees charged to do not comply with the forthcoming regulations or are irrational. On small businesses, I recognise that there is potential constraint as some applicants for Transport and Works Act orders may be smaller businesses, such as heritage railway operators, and it may be harder for them to absorb costs, but I reiterate my previous point that the delays in the system that we currently experience are not cost free. We feel strongly that the benefits of the change proposed by clause 36 outweigh the disadvantages of extra costs, even for smaller applicants. On that basis, I hope the shadow Minister is reassured and I commend the clause to the Committee.
Clause 37 - Disapplication of heritage regimes
Christine Jardine (Liberal Democrat, Edinburgh West)
With this it will be convenient to discuss schedule 2.
Matthew Pennycook (Labour, Greenwich and Woolwich)
The purpose of clause 37 is to remove the need for Transport and Works Act order applicants to apply to multiple consenting authorities for separate authorisation requirements under relevant heritage regimes in England and Wales, such as listed buildings and scheduled monument consents. Instead, the clause provides for the consolidation of the application process for certain heritage authorisations, so that they can be obtained through the Transport and Works Act itself. I must make clear that it is for applicants to determine whether they want to proceed on the basis of existing arrangements, namely consulting multiple consenting authorities, or whether they want to obtain those consents through the Transport and Works Act itself, in which instance the Secretary of State for Transport would need to confirm that that could be undertaken via that route. The consents would be obtained as part of the TWA order process and the decision-making process that pertains to it.
In making this change, as with other changes that we have made in this part of the Bill, we would bring the Transport and Works Act order process in line with the Planning Act 2008, which provides a one-stop shop development consent order process for major infrastructure. To ensure proper oversight is maintained throughout the amended process, applicants will still need to consult the relevant consenting authorities before applying. I commend this clause to the Committee.
Schedule 2 amends the Ancient Monuments and Archaeological Areas Act 1979 and the Planning (Listed Buildings and Conservation Areas) Act 1990 as a result of the changes made by clause 37 of the Bill. As I have just set out, clause 37 enables an order under the Transport and Works Act to obtain certain consents through the Act itself, rather than requiring separate applications to each relevant consenting authority. Schedule 2 disapplies offences that would otherwise arise from proceeding without those consents or authorisations. The inclusion of this power is a prudent, practical and reasonable step to take to ensure the most efficient legal framework moving forward. I commend the schedule to the Committee.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
It is a pleasure to serve under your chairmanship, Ms Jardine. The Opposition broadly understand the direction of travel that the Minister has set out and the principles underlying it are clearly quite sensible.
Will the Minister give us a degree of assurance, particularly about the process for determining the circumstances in which the authorities that are listed and the circumstances that are listed may be set aside? That is significant because significant infrastructure developments are often close to heritage railway buildings and historic sites where there will be a legitimate expectation from both local authorities and residents that a proper consultation will be undertaken.
We know that, in the past, the effect of that regime has been that in many cases developers, in places such as Royal Quay in my own constituency in Harefield, have chosen to put historic buildings back into use for a new purpose. For example, formerly industrial buildings connected with Victorian transport networks could be used for residential development, rather than simply demolishing and clearing the sites and losing that heritage asset in the process.
It would be helpful to understand how we will ensure, through the regime as set out, that those considerations are fully taken into account. I appreciate that we will debate the green belt later on, but there is significant interaction in the Bill between the different types of regime that apply, and we have already had much debate about the green belt and the grey belt.
I am aware that the Secretary of State for Housing, Communities and Local Government yesterday issued a decision with respect to a site just north of London, and the effect of her determination is that any land on a transport corridor located between, for example, a motorway and a village, even if it is currently in the green belt, will be considered to be grey belt for the purposes of developability. That will clearly have a significant impact in similar situations in locations with a significant heritage element that are close to railways, motorways and other such transport networks that would potentially, from a developer point of view, benefit from swifter development without a consultation being undertaken. However, from the perspective of local residents and the wider community concerned about heritage and land use, they are losing the opportunity to have this.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I rise to speak either against the clause or in favour of amendment 7, which is in my name. I am not sure which, but I am sure you can advise me, Ms Jardine. We have significant concerns about the clause, and I will spend a few minutes on them as it is, perhaps, more serious than it first appears. The clause would disapply the need for listed building consent, conservation area consent, scheduled ancient monument consent and notices for works on land of archaeological importance from Transport and Works Act projects.
Our heritage has benefitted from protection under criminal law since Lord Avebury in the Liberal Government brought in the Ancient Monuments Protection Act in 1882. The Act provides that anyone who damages a monument commits an offence punishable by imprisonment
“with or without hard labour for any term not exceeding one month”.
That protection, and much of the wording in that Act, has survived, and the relevant wording remains in the main and principle Acts for listed buildings: the Planning (Listed Buildings and Conservation Areas) Act 1990 and the Ancient Monuments and Archaeological Areas Act 1979. My suggestion is that this is not the time to remove such strong statutory protection and criminal sanction from measures to protect ancient monuments and listed buildings.
I appreciate that the Government, in their memorandum to the Delegated Powers and Regulatory Reform Committee, say that the approach is similar, but not as wide as the Planning Act 2008 approach, which the Minister has mentioned, and I fully understand the single consenting regime objective. It would be narrower in some ways because, in the proposed Transport and Works Act approach, it could be possible to be more selective about which measures are disapplied. However, the Planning Act 2008 approach is very different, because regulations made under it enshrine those same legal tests that go back decades—and, in some cases, centuries—so that they remain on the statute book and applicants under that Act still must comply with them.
If our country’s heritage is worthy of protection under criminal law, as the Liberal Democrats believe that it is, the same tests should surely be applied under the Transport and Works Act as under other legislation. Those are long-standing tests. In relation to listed buildings, the wording that many in the sector will know is that we must have
“special regard to the desirability of preserving the building or its setting or any features of special architectural or historic interest”.
Those words ring down the years. For scheduled ancient monuments, the requirement was to have regard to the “desirability of preserving” the scheduled monument or its setting and, in conservation areas,
“to the desirability of preserving or enhancing the character or appearance of that area.”
Those are familiar words that, as I say, ring through legislation over many years. They should not be removed from the Transport and Works Act process altogether, which this clause would do. These are central principles of heritage protection that have lasted decades, if not centuries. The Government may point out that, as they say in the explanatory notes, section 12(3A) of the Planning (Listed Buildings and Conservation Areas) Act 1990 remains in place, which provides:
“An application for listed building consent shall, without any direction by the Secretary of State, be referred to the Secretary of State instead of being dealt with by the local planning authority in any case where the consent is required”.
Although that section is referred to, it does not apply here, because consent is not required. All the requirements for consent are disapplied by the clause in this Bill, so there would be no recourse to consent under that route.
Our recommendation is that the important statutory tests be repeated in the legislation for Transport and Works Act projects, just as they are for all other projects, including in regulations made under the Planning Act 2008.
Many heritage organisations share our concerns. The National Trust says:
“We have serious concerns regarding the scope of Clause 37 of the Bill which seeks to disapply existing heritage regimes. This clause enables Transport and Works Act 1992 orders to disapply authorisation”
for listed buildings, and so on. It continues,
“we have strong concerns about the possible disapplication of heritage regimes for transport infrastructure developments. There is a risk that this could enable harm to heritage assets without proper scrutiny and go further than the stated ambition of the Bill.”
The Heritage Alliance has stated:
“Until greater clarity and detail is forthcoming from government, we continue to have significant concerns regarding its potential to cause…unintended harm to heritage assets.”
Even the Government’s own agency, Historic England has said:
“Whilst the clause provides discretionary powers for the Secretary of State on whether to disapply the legislative provisions relating to heritage, as drafted there is a lack of clarity as to how and when this discretion would be applied. This risks resulting in uncertainty and inconsistency, which would undermine the policy intention…In addition, the disapplication of the legislative provisions for heritage does not provide any equivalent safeguards for the protection of heritage in relation to the authorisation and enforcement provisions for listed buildings and scheduled monuments, as exists at present”
in legislation. It goes on:
“The clause, as currently proposed, would therefore result in a weakening of heritage protection.”
It concludes that
“the current wording of Clause 37 may not actually deliver the policy intention of streamlining planning decisions, whilst having the unintended consequence of reducing heritage protection.”
In short, we are very concerned about the removal of such long-standing legal protections for our heritage. In our view, they must be put back on the statute book in one way or another.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I appreciate the comments from the Liberal Democrat spokesman, the hon. Member for Taunton and Wellington, and the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner. Let me go over some of the points I have made to reinforce them, but also to respond directly to the challenges raised.
I think the principle of the one-stop-shop DCO process for major infrastructure is accepted as a beneficial aspect of the NSIP regime. We think allowing Transport and Works Act orders to take that holistic approach to all the consents required has merit. It would provide more certainty for applicants and ensure that some timelines and requirements were reduced, therefore benefiting the speed of the process. I very much recognise the concerns raised about heritage protections. The shadow Minister will forgive me for not commenting on a decision made by the Secretary of State, not least in the period when it is potentially still challengeable, but I note his concerns.
We obviously do not want harm to heritage assets to take place. It is not the intention of the clause to weaken heritage protection safeguards. Where the hon. Member for Taunton and Wellington challenges me fairly is about the clarity as to when the Secretary of State for Transport may refuse a request to take an application down that route. We have in mind such circumstances. Again, I make the point that it is for the applicant to determine whether they want to go through under the existing arrangements or under the new procedure, which integrates all those consents.
The type of grounds that I think would be reasonable for the Secretary of State for Transport to refuse to take the application down such a route might be, for example, an objection by Historic England or the relevant local planning authority. The hon. Member makes a valid point and he is perfectly within his rights to press the matter to a Division, but I will go away and seriously think about how we can provide further clarity and reassurance on this point. We absolutely want to ensure a better process, with those bodies consulted and their concerns addressed, but to allow for the decision-making process and the Transport and Works Act to apply, not to weaken heritage protection.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I am grateful for the Minister’s response. I urge him to consider regulations. That is the approach under the Planning Act 2008, which has worked and ensures that the Secretary of State for Transport will have to apply the same tests that local planning authorities’ inspectors and the Secretary of State have to apply under the 2008 Act. They have to apply their central and historical tests—ironically they are historical tests for historic parts of our heritage and should be retained. We strongly urge the Government to consider regulation in that regard. I am grateful that he has indicated he will consider that, no doubt among other options. We believe it should be statutory. On the basis of the assurance given, we will not press the matter to a vote.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I thank the hon. Gentleman for that point. We will certainly go away and reflect, because it is broadly our intention to ensure that the Transport and Works Act is brought into line with other consenting regimes, not least the Planning Act regime and how that operates in respect of some of these protections. I commit to give him an answer by Report stage, either in terms of changes we think are necessary or reassurance that we do not think changes are necessary. One way or another, I will get him a clear answer on his, as I said, fair and reasonable challenge.
Clause 38 - Deemed consent under marine licence
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clause 38 allows Transport and Works Act orders to include a deemed marine licence for projects in UK waters, where a separate authorisation is currently required. That removes the need for a separate application to the Marine Management Organisation, or MMO. It allows for a single process, again similar to the Planning Act 2008, which already allows deemed marine licences. Applicants will still need to consult the MMO before applying, ensuring that proper oversight remains in place.
The MMO will continue to enforce marine licence conditions under existing powers. This is another change that we believe creates efficiencies and removes duplication. As I have said, it aligns the Transport and Works Act with the Planning Act 2008 process, making it simpler and quicker for transport projects that involve marine areas. A streamlined approval process will save time and costs for applicants while maintaining important environmental safeguards. On that basis, I commend the clause to the Committee.
Paul Holmes (Conservative, Hamble Valley)
It is a pleasure to serve under your chairmanship, Ms Jardine. The Opposition wholly understand the intention behind clause 38, but I want to ask the Minister a quick question. How will enforcement responsibilities be co-ordinated to prevent confusion between the MMO and other authorities involved in Transport and Works Act orders? I accept that the core of the Bill, for good or bad, is to streamline and ensure the Government deliver their objectives quicker than at present, but can the Minister reaffirm that he is wholly assured, in line with his officials’ advice, that streamlining the process will not compromise environmental protections?
Matthew Pennycook (Labour, Greenwich and Woolwich)
I can provide the hon. Gentleman with that assurance. In terms of enforcement, I assure the hon. Gentleman that if consent is granted under the Transport and Works Act, any breaches of marine licence will continue to be dealt with by the Marine Management Organisation.
Clause 39 - Authorisation of applications by local authorities
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clause 39 removes the requirement that exists at present for a second local authority resolution after submitting a Transport and Works Act application, making the process faster and simpler. Currently, local authorities must achieve a majority vote from their local authority members both before and after submission of an application. Key stakeholders told us during the development of the Bill that the second resolution is unnecessarily bureaucratic and causes delays. Removing it will cut red tape and speed up transport projects. This is a simple and, I hope, uncontroversial clause, and I commend it to the Committee.
Paul Holmes (Conservative, Hamble Valley)
We agree with the Government on clause 39. However, if local authority members need to give a majority vote on the first round, it makes the Minister’s claim that the measure will reduce bureaucracy seem a tad overstretched. We will not press the clause to a Division, but circumstances do change between the first and the second resolution. With great respect to the Minister, it is a bit of a stretch to say that simply not putting the second resolution on the agenda of a full council meeting or committee will overwhelmingly reduce bureaucracy. On that point, as well as on the slight undermining of transparency, we seek reassurance from the Minister.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I thank the shadow Minister for that point. In no way am I implying that in a committee meeting, the process of putting hands up on another vote is itself onerous. What are onerous are the delays that can be caused by the need simply to reaffirm a vote that has already taken place. The Government think this is a simple and proportionate change to ensure that the Transport and Works Act is modernised appropriately.
As I hope the Committee saw this morning, the Transport and Works Act, which is over 30 years old, needs to be brought up to date and into line with other consenting regimes. Clause 39 deals with just another example of an element of that Act that requires addressing. All interested parties in a Transport and Works Act project will be able to make representations as they do now—the process will continue as it does now, but without the need for the second resolution.
Clause 40 - Extension to Scotland of certain amendments
Christine Jardine (Liberal Democrat, Edinburgh West)
With this it will be convenient to consider clause 41 stand part.
Matthew Pennycook (Labour, Greenwich and Woolwich)
This is another example of the way in which the Transport and Works Act needs to be tidied up, because there are currently unnecessary legal duplications. We want to address those, and that is what clauses 40 and 41 do. Previous regulations under the Act applied only to England and Wales. That created dual versions of certain Transport and Works Act provisions —one for England and Wales, and another for Scotland. Clause 40 removes the duplication by extending provision to Scotland so that there is only one consistent version of the text. This is a simple procedural fix. Scotland does not use the Transport and Works Act, so the change has no practical impact there. It simply ensures clearer legislation with no unnecessary duplication.
Reducing duplication makes the law clearer and easier to apply, and simpler to understand for all applicants. It also reduces complexity for legal and policy teams, making future updates faster and more efficient. This supports the Bill’s aim of simplifying and streamlining transport laws.
Clause 41 provides a power to make amendments to primary and secondary legislation that are necessary to maintain the effect of that legislation in consequence of clauses 30 to 40. The power cannot be used to implement changes in policy or make amendments for reasons unrelated to clauses 30 to 40; its purpose is simply to ensure consistency. If any changes are needed to primary legislation that already exists or is made in this parliamentary Session, the relevant regulations will need approval from both Houses. If any changes are needed to secondary legislation, the negative procedure will apply. The inclusion of this power is a prudent, practical and reasonable step to take to ensure the most efficient legal framework moving forward. I commend the clauses to the Committee.
Clause 42 - Fees for applications for harbour orders
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clause 42 amends the Harbours Act 1964 to enable fees for processing harbour empowerment and revision orders to be levied on the basis of hours of time deployed on any particular application, rather than on the basis of average costs. This is part of a package of measures that Government are taking to strengthen performance in the handling of harbour order applications, especially in England, after a backlog built up over recent years.
Relevant Departments, along with the Marine Management Organisation itself, are further addressing these challenges through various administrative initiatives alongside this provision. The clause applies to England, Scotland and Wales, consistent with the territorial extent and application of the original Harbours Act. The Bill does not determine the overall level of fees; there will be full consultation of ports before fees are altered by regulations.
Provisions for the new system of setting fees will come into effect two months from Royal Assent. To ensure that fees can still accompany harbour orders before regulations are made, the provision repealing the current power to determine fees will be commenced by regulations. The new fees system will take precedence over the current system upon the commencement of this clause, meaning that there is no practical need for the previous regime to be switched off for the new fees regulations to be made.
However, following discussion with the devolved Governments, a decision on the desired timing for this repeal in Scotland will be necessary. The Secretary of State would, as a routine matter, make the commencement order at a date chosen by Ministers in the devolved Government.
The clause further supports the Government’s growth and clean energy missions by improving the efficiency of harbour order processing, which will support our wider objective of improving transport consenting processes. I commend it to the Committee.
Clause 43 - Installation of electric vehicle charge points
Matthew Pennycook (Labour, Greenwich and Woolwich)
Clause 43 will remove the need for a section 50 street works licence when installing electric vehicle charge points on a public road, and instead allow applicants to apply for street works permits. Applying for a street works licence is costly, and it can take a long time for an application to be approved. The lengthy process of having to apply for a street works licence to install charge points on a public road is delaying the roll-out of this essential infrastructure.
The licence application process has previously been identified by installers as a significant barrier to installation. The application process and associated costs for those licences also vary greatly between highway authorities. On average, each street works licence can cost between £500 and £1,000 and take 12 weeks or longer to obtain. As a result, installing apparatus can be a lengthy and costly process, hindering the efficient roll-out of electric vehicle charge point infrastructure.
The clause will enable EV charge point installations to be completed without the need for a licence and instead to be authorised by permits, which, in comparison, cost between £45 and £130 and take on average only two to five days to approve, depending on the type of work and road involved. Permits can be applied for online via one system, known as Street Manager, that covers all local authorities in England. Use of Street Manager will also provide local authorities with better oversight of works planned in their areas. That will improve planning and co-ordination, reducing disruption on our roads caused by works.
The clause ensures that the same requirements in legislation, such as the duty to reinstate the road after works are completed, continue to apply to EV charge point installers so that none of the existing safeguards are lost. This change will remove barriers to installing electric vehicle charge points on the public highway and, as I have argued, improve the efficiency of delivering transport infrastructure. It also supports the Government’s growth mission, following an investment of over £2.3 billion to support domestic manufacturers and consumers to switch to electric vehicles. On that basis, I commend the clause to the Committee.
Paul Holmes (Conservative, Hamble Valley)
We welcome the Minister’s comments on clause 43. As we enter the world of net zero and increasing green travel, we need to have the infrastructure in place, so we support the Government’s attempts to make that easier. Whether I think electric cars are the future is not within the scope of clause 43—I declare an interest, in that I do not. I think we need to invest in other areas and that, eventually, we will see that the infrastructure simply cannot be delivered in the way that it needs to be, but that is for another day. [Interruption.] The Minister for Energy, who is doing his work in secret at the back of the Chamber, is shaking his head at me. We will have a chat in the Tea Room afterwards about how we should be investing in hydrogen instead of electric cars—but, as I say, that is outside the precepts of this clause. I will get back to the clause.
What safeguards are in place to ensure that EVCPOs meet their responsibilities, particularly when it comes to road reinstatement? I do not mean to dumb down this argument, but we have all had emails coming to our office about this: when road repair and utility companies do works, they are not often joined up. They are not often communicated to local people properly, and, when a local authority gives permission for works to be done by different utility companies, they are not often done in conjunction. An area of the road is dug up, then another organisation comes along and digs it up, and they do not put the roads back properly. Can the Minister outline whether, under current legislation, he is satisfied about that?
Companies being allowed to make these changes with reduced bureaucracy and at increased speed is welcome, but we need to make sure that local authorities use their responsibilities properly so that the consumer and the public are not put in the frustrating situation, which we have all seen before, of disruption and a lack of co-ordinated effort when utilities and other companies do works in local areas.
Olly Glover (Liberal Democrat, Didcot and Wantage)
It is a pleasure to serve under your chairship, Ms Jardine. I thank the Minister for speaking to this clause, and I am pleased to say that the Liberal Democrat Benches are keen to support it. I am also pleased to agree with the Conservative spokesperson on this, although I was disappointed to hear that his preferred method of transport involves hydrogen, rather than joining me on my bicycle, which I very much enjoyed riding in his constituency a couple of months ago.
It is important that we do everything we can to support the roll-out of electric vehicles, which is essential to our goals on air quality and climate change. The United Kingdom has a long way to go, with just 20% of vehicle sales last year being electric, compared with 90% in Norway. Hopefully, these measures will help us to close the gap.
I also welcome the Minister’s assurance that this will not undermine the requirements to make sure that street works are done professionally and repaired with full competence. For any Members with an interest in the subject, the Transport Committee is doing a detailed inquiry into it. Hon. Members are right to point out that that is often a major source of frustration for our constituents. I am very pleased to support this clause.
Rachel Taylor (Labour, North Warwickshire and Bedworth)
It is a pleasure to serve under your chairmanship this afternoon, Ms Jardine. I strongly support the clause and was really glad to see that the Electric Vehicle Association England welcomes the change. It will make it easier, cheaper and faster to install public chargers for EVs.
There is a battery assembly plant run by JLR in my constituency. We are making more components for electric vehicles, but my constituents find it really difficult to make the jump to invest in an electric vehicle, because there are just not enough electric vehicle charging points in the town centres around my constituency. Anything that makes it easier and removes the blockages will be extremely helpful.
I echo some of the points made by the Opposition spokespeople. We must make sure that the charging points are installed carefully and thoughtfully, which means taking into account the pavement requirements of pedestrians, particularly those with pushchairs or using wheelchairs. Will the Minister explain how that will be taken into account?
I definitely welcome this change, and it is a huge step forward. Particularly in more rural constituencies like mine, people need to be able to drive their electric vehicles in and out of town centres for work, and to be able to charge them.
Lewis Cocking (Conservative, Broxbourne)
It is a pleasure to serve under your chairmanship, Ms Jardine. I support giving consumers choice and making it easier to install electric car charging points. This will be a massive help for people in flats—if they want to make the switch to an EV and cannot charge their vehicle at home, the more public charging points there are, the better—but we need to think about it carefully.
My constituents are fed up with multiple utility companies digging up the roads willy-nilly—sometimes, the same stretch of road. There does not seem to be any logic behind where roadworks will be, and multiple roadworks happen at the same time.
We need to issue guidance. If utility companies, councils and other authorities are going to install loads of charging points, it needs to be done in a logical way. What work are the Government doing with all the different companies and operators in this space? We do not want to see consumers turning up to different charge points that all have different connectors. We need to make this as easy as possible for the consumer, no matter what car they drive.
I reiterate that we cannot just dig up roads willy-nilly. What discussions are the Government having with the companies in this space to make it as easy as possible for consumers to access charge points?
Luke Murphy (Labour, Basingstoke)
It is a delight to serve under your chairship, Ms Jardine. I welcome these proposals. This is a major reform that will allow the Government to speed up the delivery of vital electric vehicle infrastructure, to deliver on our climate targets and ensure that we can meet the growing demand for electric vehicles.
I share the disappointment of my hon. Friend the Member for Taunton and Wellington in the words of the shadow Minister, the hon. Member for Hamble Valley, on the future of electric vehicles. The Conservative party’s position is anti-business and anti-investment. Electric vehicles are the future, and they are going to create jobs.
Paul Holmes (Conservative, Hamble Valley)
I resist the temptation to say that the hon. Gentleman is picking me up on every point in this Committee. At no point did I say that I do not think we should have cleaner energy or better, cleaner and greener vehicles. I happen to think that the investment that is needed to bring the infrastructure up to scratch, alongside the emissions caused by the technology that is used in the creation of these electric cars, means that we need to diversify and find other ways to have cleaner cars.
In no way should the hon. Gentleman interpret my words as being anti-business. In fact, other areas, particularly the hydrogen sector, will deliver much more business investment in my constituency of Hamble Valley, and in his constituency of Basingstoke, through the proposals coming forward with the energy companies in the Solent.
Luke Murphy (Labour, Basingstoke)
I thank the shadow Minister for his intervention. I do not disagree. Instavolt, one of the largest public electric vehicle rapid charging network providers in my constituency of Basingstoke, fully supports these proposals.
The reason why I think the Conservative party’s position is anti-business and anti-jobs is that businesses are crying out for certainty—they want certainty about the transition, not big question marks about the future. I support the removal of the need for a street works licence under section 50, which will cut down on paperwork and costs. I echo the remarks of my hon. Friend the Member for North Warwickshire and Bedworth on accessibility, but I support this proposal, which will allow us to speed ahead and build a world-leading charging network.
Nesil Caliskan (Labour, Barking)
It is a pleasure to serve under your chairship, Ms Jardine. I echo the points made by other colleagues: I absolutely support the roll-out of electric vehicles, which is more likely due to this change. To be clear, I think local authorities will welcome it. They have long been frustrated by the current framework, which means that as they seek to roll out electrical vehicle charging points they are met with a planning system that prevents them from doing so at the necessary scale. Clause 43 removes the burden from local authorities and also from individuals, who often want to purchase an electric vehicle but think twice because being able to get a charging point in the convenience of their individual home is too difficult.
Finally, the point about cost is important. When we speak to companies that manufacture vehicle charging points, they are clear that the number of installations helps them to reduce the cost per head. This measure will mean that it becomes easier to install at a faster pace, with the hope that the overall cost will be reduced. I support the measure and think it will be a crucial step in this Labour Government’s important mission to reach net zero.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I welcome the broad support on both sides of the Committee for the intended purpose of the Bill, which will mean that companies installing EV charge points can do so, as I have argued, using permits available online across England, and will no longer have to apply for costly licences, which can take several months to obtain, via a range of different local authority processes. That will speed up the installation of on-street EV charge points and help local authorities to co-ordinate works with other roadworks. I think the use of that digital platform will help local authorities to have an overview of all the installations taking place in their areas.
A number of points have been made. The hon. Member for Broxbourne raised the issue of street works and digging up roads. While I take his point, there is a difference between the installation of EV charging networks and general utilities works, and there is more that can be done to manage that process. If he will allow me, because it is a slightly separate issue, I am more than happy to set out for him in writing what the Government are doing on that particular point.
In general, however, the concerns I have heard relate to safeguards. There is a separate point about whether members of the Committee believe that the existing statutory requirements are fit for purpose or need to be reformed, but I want to make clear that this clause will ensure that the statutory requirements that are in place continue to apply to EV charge point installers. We are not losing any of the existing safeguards, including guidance and safety codes, so the inspections and reinstatements will continue to apply and installers will be obligated to keep their apparatus in working order. In addition, existing regulations already require installers to provide annual reports to the Secretary of State on the reliability of their network, and investigatory powers and sanctions are available to deal with non-compliance.
In relation specifically to pavement access, EV charge point operators will still need to comply with the safety code of practice, which sets out the requirements to ensure access while works are taking place. I can give hon. Members assurance on that point. I hope I have set out that existing statutory requirements will continue to apply, so no safeguards are lost; in moving from a street works licence to a permit, we are just ensuring that we can make it far easier for charge point operators to roll out vital infrastructure.
Clause 44 - Fees for planning applications etc
Christine Jardine (Liberal Democrat, Edinburgh West)
With this it will be convenient to discuss Government new clause 39—Surcharge on planning fees.
Matthew Pennycook (Labour, Greenwich and Woolwich)
We turn to part 2 on planning, chapter 1 of which relates to local planning decisions. Clause 44 seeks to introduce, through regulations, the sub-delegation of planning fees to local planning authorities. It is an important change, and we feel it needs to be made. We know that a lack of capacity and resources in local planning authorities and among statutory consultees leads to delays in decision making and in the delivery of housing and economic growth.
I hope the Committee is aware of the changes that the Government are making, outside the scope of the Bill, to enhance local authority capacity and capability. The Chancellor has announced a £46 million package of investment into the planning system as a one-year settlement for 2025-26. On 27 February, the Government announced funding to support salaries and complying graduate bursaries to help with our commitment to appoint 300 new planning officers in local planning authorities. We have made changes, through regulations, to increase planning fees for householder and other applications, with a view to providing much needed additional resources for hard-pressed local planning authorities. More broadly, the Department’s established planning capacity and capability programme is delivering a wider package of support.
For local planning authorities, fees are an important contributor to resourcing requirements. Planning application fees are set nationally, and they are intended to cover the cost to a local planning authority of processing and determining a planning application. However, as things stand, the fees do not fully cover the costs of providing the service. Based on the most recent local government spending data for 2023-24, that has led to an estimated funding shortfall of £362 million per year. It means that local authorities are not adequately equipped to deliver an efficient planning service to developers and investors.
Clause 44 will tackle the problem by enabling local planning authorities to set their own planning fees and charges to cover their costs. It will do that by allowing the Secretary of State, through regulations, to sub-delegate the setting of planning fees and charges to local planning authorities. Allowing local planning authorities to set their own planning fees is the most effective way to increase resources in a manner that responds to the individual circumstances of each local authority. It will help to address capacity issues in the planning system by ensuring that planning authorities are adequately funded to deliver vital services.
We are also introducing safeguards to ensure that the fees are reasonable and directly invested in improving planning performance, and that they are not used to fund other council services. Planning fee charges will not be able to exceed the cost to local planning authorities in determining a planning application. That will prevent disproportionate or unjustifiably high fees being set. That is an important point, because one of the concerns we have had is about the ability, without the provision being in place, of local authorities that do not want to see development to set extremely high fees to deter applications. To ensure transparency, local planning authorities will also be required to consult on any fee increases and publish evidence to justify the fees that they charge. Finally, and most importantly, income received from planning fees will be ringfenced, as I have said, so that it can only be used in the determination of planning applications.
Clause 44 is another crucial step towards a more responsive and efficient planning system. I hope we can all support it. I therefore commend the clause to the Committee.
Government new clause 39 seeks to introduce a new sustainable funding model for the statutory consultee system. Alongside local planning authorities, statutory consultees play an important role in the planning system, providing expert advice and information on significant environmental, transport, safety and heritage issues to ensure good decision making.
However, it is a concern that the statutory consultee system is not currently working effectively. The concerns expressed by local planning authorities and developers about the operation of the system are wide-ranging. They include statutory consultees failing to engage proactively, taking too long to provide advice, re-opening issues that have already been dealt with at a plan-making stage, submitting automatic holding objections that are all too often withdrawn at a late stage in the process, and frequently issuing holding responses that allow statutory deadlines to be met while seeking over-specific levels of information from developers over long timeframes. All of those concerns can cause substantial delay and uncertainty for applicants.
The Government are determined to return the statutory consultee system to meeting its goal of supporting high-quality development through the swift provision of expert relevant advice to inform decision making. In March, I set out a number of steps that we are taking to achieve this in England, including ensuring that the statutory consultee system works to support development and economic growth, limiting the instances in which statutory consultees should be consulted, changing the performance management of statutory consultees and, finally, developing a model to support sustainable funding.
The new clause will allow the Secretary of State to make regulations to apply a surcharge to planning application fees. This would apply to development that is permitted by local planning authorities, and to other bodies that are able to charge planning fees under the Bill. It will be used to fund bodies, such as statutory consultees, that provide advice and ancillary support that enables good decision making.
Through regulations, we will develop detailed proposals that will establish the level at which any surcharge would be set, and the types of planning application it should be applied to. In doing so, we will be highly conscious of the need to balance the burdens that we are placing on developers with the benefits that will accrue to them through a more effective and efficient planning application system. We will consult on such proposals before any regulations are introduced.
I note that statutory consultees can already generally secure payment for voluntary pre-application work, and that will continue to be the case. A new funding mechanism for statutory consultees, alongside the sub-delegation of planning fees, as per clause 44, will allow us to address capacity and resourcing issues, and support a faster and better quality decision making process. On that basis, I urge the Committee to support the clause and the new clause.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
I know that my hon. Friend the Member for Hamble Valley wants to raise some points, but I want to ask a couple of slightly technical questions.
The first relates to clause 44(6), on directions in relation to planning fees. The publication of a schedule of planning fees is part of the statutory council tax-fixing process, which every local authority is required to undertake. As we hear from our residents, that generally takes place in February and comes into effect at the start of the following financial year. If a local authority publishes its proposals, as the Minister described in respect of cost recovery, it needs to be confident that any change—in the form of a direction from the Secretary of State—will come in a timely manner that enables further consultation so that the lawful council tax fixing can occur. What provisions will be in place to ensure that any objection from the Secretary of State will come in a timely manner?
My second slightly technical question is this. My experience of planning authorities is that there is huge variation in their cost bases. That partly reflects a shortage of staff, but it also reflects different local arrangements. An authority with large numbers of householder applications may use an outsourced service to process them at a relatively low cost. However, if senior, experienced, in-house planning officers are responsible for managing all planning applications, that will significantly increase the cost. Neither of those things is illegitimate; each is a manifestation of the democratic decision making of elected politicians about what is appropriate for their community.
It would be helpful to understand what process the Secretary of State will go through in determining what a reasonable level of planning fees is. For example, will she consider the requirement for specialist input at a technical level because there is a significant amount of radon gas, which is found in certain challenging sites because of their topographical nature? Whether there is a requirement for remediation and specialist consultancy will be critical to a proper assessment of that planning application. Other local authorities may have development opportunities of a different nature. Will the Minister set out his thinking on that? That would be enormously helpful.
Rachel Taylor (Labour, North Warwickshire and Bedworth)
When the Committee met the witnesses a week or so ago, we touched on section 106 agreements and the role of planning authority lawyers in that process. I think that the fees for processing and determining applications include the process for agreeing a section 106 agreement. Is it the Government’s intention to include costs arising from the legal department’s time and efforts in determining those applications in the ringfenced planning application fees? I am aware that there is a severe shortage of qualified and experienced property lawyers in both local authorities in my constituency, as well as a shortage of planning officers.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I rise to support the thrust of clause 44. For a very long time, we Liberal Democrats have called for local authorities to be free to set their own fees for planning applications, so we welcome the approach.
I seek a couple of clarifications from the Minister. Does clause 44 refer to planning applications and not to listed building consent? I think we all share a desire to keep listed building applications free of charge, so will the Minister let us know about that in due course? Local authorities are struggling for funding. In my own Somerset council, £2 out of every £3 of council funding is spent on care for adults and children, leaving £1 out of every £3 provided by council tax for everything else, including planning, housing, enforcement and environment, so funding is crucially needed.
Somerset council has asked for the freedom and flexibility to set its own planning fees. One challenge it faces, in common with other planning authorities and planning departments, is the market rate paid to professional town planners, who frequently find that the level of remuneration in councils is worse. Will the Minister confirm that local authorities will be free to set salaries above the market rate to attract planning officers in circumstances when the market conditions make that necessary? The Minister may not wish to answer all my questions now, but I hope that he can address them at some point.
Jim Dickson (Labour, Dartford)
It is a pleasure to serve under your chairship, Ms Jardine. I fully support what the Government intend to do in this clause. Those of us who have worked in local authorities or have supported the development industry over many years will know that there are many occasions when statutory deadlines are not hit, reports do not go to committee at the right time to enable consent within an agreed timescale, and reports have to be deferred because they have not been written well enough by an overstretched planning department.
I have a couple of questions for the Minister about the arrangements that will be introduced through this legislation. Will there be a backstop for local authorities that do not put a regime in place? Will he consider allowing local planning authorities and developers to agree bespoke fees for applications to be determined on a shorter timescale? Is the use of planning performance agreements, which are currently in common use, affected by the new legislation? What performance management arrangements do the Government want local authorities to put in place to justify the fee changes?
Paul Holmes (Conservative, Hamble Valley)
I welcome what the Minister has to say about this clause. In common with other hon. Members who have spoken, we welcome the general gist of permitting regional variation to planning fees as a general principle. In theory, that will create opportunities for local planning authorities to set their rates at a level that works best for them. How will the Government ensure consistency and fairness in planning fees across different local planning authorities, particularly for developers operating in multiple regions? Does the Minister have any thoughts on that?
In considering the need to support local planning authorities, what support will be provided to them to accurately calculate cost recovery levels and comply with consultation and reporting requirements? Given the ever-changing and growing costs to local planning authorities, which we all recognise, how frequently will they be allowed or required to review and update their planning fees?
Luke Murphy (Labour, Basingstoke)
I, too, rise to support the measures. The Committee heard evidence from developers that they do not at all mind paying higher fees as long as they get a fast, quality service that delivers quicker and better outcomes for everyone involved.
We know that planners are absolutely vital to planning the future of our communities, the places where we will live for years to come, and they cannot do that on a shoestring. For too long, we have seen many local planning authorities unable to cover their costs, which causes delays and cuts and has led to a doom loop in the planning system. It is great that the Government plan to give control to local planning authorities, with the safeguards that the Minister has set out, to set their own fees and ensure that we can have the proactive, effective and fast planning system that we all want.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I will set out a couple of points in response to questions raised by hon. Members. If I miss anything, I am more than happy to follow up in writing on the technical detail, including on some issues that sit outside the scope of the clause but are pertinent.
For example, the Liberal Democrat spokesperson, the hon. Member for Taunton and Wellington, raised the issue of salaries that could be paid to local planning department staff. That will be a consideration for local planning authorities attracting talent. He is right that over recent years we have seen, for a variety of reasons, a bleeding out of talent, particularly to the private sector. There is a challenge in attracting the requisite skills into the public sector to ensure that we can take our planning reforms forward.
The purpose of clause 44 is to allow the Secretary of State, through regulations, to delegate the power to set planning fees and charges to local planning authorities. It will be up to local planning authorities whether to set their own fees or remain on what will essentially become a default national fee rate. We will carry out a national benchmarking exercise, including engagement with local authorities, to ensure that the default rate is at an appropriate level.
For the process by which local authorities can set their own fees, if that is the route they want to take, the Bill has a number of safeguards to ensure that fees are not set too high. In the first instance, local planning authorities will be required to undertake public consultations and publish information to justify any local fees prior to their introduction. To respond to the hon. Member for Ruislip, Northwood and Pinner, that is in the process in which local planning authorities would be able to evidence particular challenges in their area that require them to have a skillset and resource base slightly different from those of other local planning authorities, but that would have to be properly justified.
For objections, there will be a process by which the Secretary of State can intervene and direct local planning authorities to amend their fees or charges when those have been set at an inappropriate level. I note the point, well made by the hon. Member for Ruislip, Northwood and Pinner, that such directions—that intervention—would have to come at a point that allowed a local authority to ensure that the changes were made in a timely manner relative to its other financial responsibilities.
Any hon. Member is free to intervene if I have missed a point, but I hope that I have broadly reassured the Committee that the clause will provide for those who want to set their own fees—although I stress that an authority can remain on the national default rate if it wants—so that the fees can more fully reflect the cost of processing applications and thus ensure that we are providing a timely service. It is a beneficial change.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
The Minister is generous in inviting interventions; I rise to make a small one. I technically ought to declare that I live in a listed building—a fairly shabby one—but that is not the only reason why I wanted to listed building consents to be free.
Matthew Pennycook (Labour, Greenwich and Woolwich)
On that point I should say, although I hope this was implied, that we will set out detailed processes in the regulations. We will absolutely take into account points that have been made today. I give the hon. Gentleman my undertaking that the specific issue that he raises will be fully considered as part of that process.
Lewis Cocking (Conservative, Broxbourne)
I have a question to gain clarity for local authorities. Will the Minister request local authorities to submit how much they spend on planning currently? If the increase in fees is to go into additional planning service, I would not want to see local authorities moving money out of their planning services now, and then charging additional fees so that the services still had the same budget. I hope I have explained that point sufficiently. Will he ask local authorities to submit how much they spend on planning now, to ensure that the additional fees that they will be able to charge go into additional service?
Matthew Pennycook (Labour, Greenwich and Woolwich)
That is an interesting point. That would be a fairly extreme measure for a local authority to undertake but, if I have understood the hon. Gentleman correctly, it could drain its planning department budget, foreseeing that it would be able to set a fee at an appropriate rate to make up for that, and therefore in a sense evading the clear stipulation that we have here to ringfence planning fee charges to the provision of planning services. I will say a couple of things on that basis.
As I said, local planning authorities will have to consult publicly and test their fee level. As part of that, they will have to consider the benchmarking exercise that we will undertake for the default national rate—so we will have a sense of what different local authorities are charging. However, if the hon. Gentleman will allow me, I shall go away to reflect more fully on how—as I hope is clear we have been thinking today—local authorities without the best intentions might seek to game the system.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
rose—
Matthew Pennycook (Labour, Greenwich and Woolwich)
The final point I will make before giving way is that, were a local authority to seek to evade that ringfencing provision by reducing the amount of resource going into its planning department—a not particularly sensible route to take—and then, potentially, it were not able or allowed to charge a fair and proportionate fee set in that regard, it would come under the usual planning performance dashboard, where the Department can look at the local authority for not providing a timely service or performing appropriately. As the hon. Gentleman knows, a set of intervention powers would be available to national Government, were that the case.
It is far more likely, however, as we have heard from local authorities, that they would use the power to set local fees that reflect the cost of services, using it to bring more resource in and—generally, this is what they want to do—to start processing applications in a more timely manner than they can now.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
The Minister’s response has been excellent. Clearly, there will be a number of different arrangements at a local level. That should encourage us, as a Committee considering the legislation, to reflect a little further.
In the example that the Minister talked about—the behaviour of local authorities—it may not be about those who have ill intentions. Some local authorities may have a planning and building control department—although the two regimes are separate, there is great commonality of skills—while others may have outsourced one or both those functions, or have them in-house but entirely separate.
As part of the published council tax fixing, there is a requirement to set out a schedule of fees for building control. Some local authorities may choose to bundle that together, so when people put in a planning application, they pay for both; but others may do that separately. Some developers, including householders, may choose to purchase the building control privately, even though they could purchase it from the local authority. A lot of factors will determine what a reasonable cost base is. It would help if the Minister shared with the Committee some further thinking on how the Government might seek to establish a baseline, in particular in the light of potential challenges in the future by developers who feel that the level of cost at a particular spot is other than reasonable.
I press the Minister a little on how that interacts with two further points that he made. Government new clause 39 refers to the power of the Secretary of State to implement a surcharge as a percentage of a planning fee that has been set. From what I understand of what the Minister said in his commentary, that will principally be to fund the work of the statutory consultees. Clearly, the imposition of a surcharge will then form part of the planning fees that have to be part of the statutory consultation on the legislatively fixed timetable that the local authority has to follow. How will the Government ensure that that timetable is respected, so that they themselves are not subject to the challenge?
Matthew Pennycook (Labour, Greenwich and Woolwich)
I thank the hon. Gentleman for pressing those two points. I am more than happy to come back to the issue in more detail, but as a general point, a lot of further detail is yet to come post consultation and the regulations’ being laid. We will provide further detail then on some of the technical questions as to how the power will be implemented.
The surcharge introduced by Government new clause 39 will provide the ability to fund the statutory consultees and other bodies that provide assistance and advice in relation to the planning application process. For example, we may wish to fund training and guidance for local planning authorities so that they can better engage with statutory consultees. However, the surcharge, which, as he rightly says, comes as an additional amount on top of the fees for processing applications, is very much intended to address the particular challenges that we are facing in terms of how statutory consultees are able to engage with the process in a timely manner, so that we get that advice up front.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
May I press the Minister a little further? That is a really helpful answer in illuminating the Government’s thinking, but could he explain to the Committee how that will interact with the existing arrangements for planning performance agreements, which are very common in respect of larger-scale planning applications? Clearly, if a developer required to engage with all this wider statutory-consultee process is already entering into a voluntary agreement with the local authority to fund the process, there is a risk that that will have an impact. It risks either reducing the ability of the local authority, because that surcharge is effectively being taken by the Secretary of State, or increasing the cost base and therefore opening up the question whether the planning fees are reasonable in the first place.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I would say two things in response to that, and then perhaps, Ms Jardine, in the interests of making progress on the Bill, I will happily write to the Committee to set out further details of the operation of the surcharge.
First, on how the surcharge will be processed and distributed, it will, as the hon. Gentleman rightly says, be paid by the person collecting the fee to the Secretary of State in a manner and at a time prescribed by regulations, which are forthcoming. Outside the regulations, the proceeds will then be earmarked for distribution to bodies that provide advice and assistance in the planning process, including by way of consultation responses.
Secondly, the question has been asked several times whether the Government have properly considered the cumulative impact of fees and charges—are we getting the fees right? We are very aware that the surcharge will increase the fees that are already out there—it is an additional levy in that sense—and that other measures in the Bill may already result in fee increases. I repeat that we are committed to consulting on the proposed rates and the type of application that this should apply to—not least to allow the development sector to fully engage with those proposals.
On that basis, I think it would help the Committee if I set out later—chapter and verse—how we think both the clause and the surcharge will operate, on a very practical basis, and how local authorities can understand the Government’s intent in bringing them forward.
Clause 45 - Training for local planning authorities in England
Ellie Chowns (Green, North Herefordshire)
I beg to move amendment 152, in clause 45, page 58, line 3, at end insert—
“(c) require that any training accredited under this section includes content on—
(i) inclusive design principles in the built environment;
(ii) the requirements and intent of Approved Document M, Volume 1: Dwellings of the Building Regulations 2010, with particular emphasis on the M4(2) accessible and adaptable standard and the M4(3) wheelchair user standard;
(iii) the requirements and intent of Approved Document B of the Building Regulations 2010;
(d) require that all members, elected members, and officers of a relevant local planning authority who carry out any function relevant to planning undertake mandatory training comprising the content set out in paragraph (c).”
Christine Jardine (Liberal Democrat, Edinburgh West)
With this it will be convenient to discuss the following:
Amendment 49, in clause 45, page 58, line 15, at end insert—
“(7A) This section applies in relation to a relevant planning function conferred on a mineral planning authority as if references to a local planning authority were to a mineral planning authority in England.”
This amendment has the effect that (if regulations under inserted section 319ZZA of the Town and Country Planning Act 1990 are made) members of a mineral planning authority in England who have not completed any training required by the regulations will be prohibited from exercising certain mineral planning functions on behalf of the authority.
Clause stand part.
Ellie Chowns (Green, North Herefordshire)
It is a pleasure to serve under your chairship, Ms Jardine. I did not prepare anything in advance—apologies—but I do think it is important for the Committee to consider amendment 152, tabled by an hon. Member from another party. The amendment asks the Government to consider using the opportunity offered by the Bill to ensure that the training provided—which is essential for those involved in planning decisions, whether elected members or officers—includes a specific focus on accessibility.
This is a really important issue. If we are to be an inclusive and equitable society, it is vital that planning decisions are made in a way that takes into account the importance of accessibility. It is also an increasing issue. We are an ageing society: in 2022, 19% of our population was over the age of 65, but in 50 years’ time that will be 27%—half as many people again. We know that disability is associated with age; we know that 45% of people over the age of 65 report a disability, and half of those disabilities are mobility-related. So, accessibility of buildings—accessibility of all the areas that come within the remit of planning decisions—is a crucial aspect.
I ask the Minister to comment on the suggestion made in amendment 152. Does he recognise the importance of these issues? Would he consider taking this away and exploring whether the clause could be amended to make this minor but important additional change, to ensure that all planning decisions going forward recognise the importance of accessibility?
Jim Dickson (Labour, Dartford)
Just before I speak to the amendment, I will say that I fully support what the Government are doing here. As a former member of a local authority, I have seen good training, but in other contexts I have also seen very poor training for planning committee members. I know that most local authorities have a scheme in place, which is obviously welcome, but it is variable. Having some national guidance and trialling it in legislation is extremely important.
My point on the amendment is that accessibility is vital. I hope it will appear in guidance that the Department produces further to the legislation. We might wish to see a whole range of other considerations in that guidance, too, but I hope this one will be in there. Perhaps the Minister will reassure us that these important issues will be included in guidance. He might make the case that it is much better to have them in guidance because it can be changed regularly, rather than in primary legislation, which is changed via a much more torturous process. It would be interesting to have the Minister’s insights on the full range of the guidance.
Lewis Cocking (Conservative, Broxbourne)
It is a pleasure to serve under your chairmanship, Ms Jardine.
I have a few questions for the Minister. I am pleased to see this clause. When I was leader of Broxbourne council, we changed the council constitution to do exactly what the Government are trying to do here. I want to know how many local authorities will be affected, because I know that many of them already have mandatory training for planning committees in their constitution.
What I have not seen in the Bill is how often council officers will be required to carry out the training—will it be once per term of office, which means once every four years, or annually? I cannot seem to find any detail on when elected councillors will be required to do the training. I would like the Minister to comment on what he envisages as a workable interval. Obviously the training has to be timely, because there are always changes to the national planning policy framework and local plans, but not too exhaustive, so that councils can still make planning decisions.
The Minister speaks about speeding up planning decisions. I would not want councils to fall into the trap of not having enough people with the right certificate, and the right training at the right time, to carry on their quasi-judicial function of planning. I should be grateful for the Minister’s comments.
Rachel Taylor (Labour, North Warwickshire and Bedworth)
Amendment 152 is well intentioned and sets out a number of matters that planning authorities should take into account when organising training. There are also other aspects of the planning process to consider, including how we make better provision for electric vehicles. The last major piece of planning legislation from 1990—it has endured for 35 years—is very prescriptive about the content of training for members and officers, but it will be extremely difficult to encapsulate everything that is needed.
I certainly think that the requirements for people with disabilities and for climate and nature are sometimes conflicting. I have seen a number of planning schemes where trees are put in the middle of the road or pavement. Although those environments look nice, they do not accommodate people with disabilities, such as sight or mobility problems.
We have to adapt as things move on, and this is exactly the sort of thing that I would ask the Minister to consider in guidance that could be regularly updated, as opposed to it forming part of the Bill. I certainly support the amendment’s intention, and I am grateful to my hon. Friend the Member for Shipley (Anna Dixon) for tabling it.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I rise to support amendment 152. The Liberal Democrats have a similar measure on the amendment paper, new clause 11, which also refers to the accessibility of housing. We are pleased to support this amendment, and we support training for planning authorities in general. In the Minister’s summing up, can he address the concern of some organisations that, as well as accessibility, the training needs to include conservation and heritage?
Paul Holmes (Conservative, Hamble Valley)
Clause 45 relates to mandatory planning training, which is long overdue. It could be a huge benefit to local planning authorities to have trained planning committee members.
When many members of the public—and many Members of Parliament—saw the mandatory training element of the Bill, they probably shouted, “Oh good God, thank you!” There is a massive variation in the outcomes of planning committees, as we will come to in debates on other clauses where we disagree with the Government on planning committees. To strengthen planning committees and ensure that they all perform—and that members of planning committees perform to the best of their ability and are trained to make the complicated decisions that local planning authorities and committees have to make—is a good thing.
I declare an interest that, as a former chair of a planning committee at Southampton city council for two and a half years, I really enjoyed the training. The planning training at the time, when the council was under Conservative control—I will say that it does it now under Labour too—was automatically given to newly elected councillors on the committee. It was exemplary.
Councillors could not pick and choose whether to go. Instead, the council very clearly said from an early stage, “If you do not attend this training, we will not defend any decision that you make, and we will not put you on the planning committee, despite the best wishes of group leaders from all parties.” That is a commendable approach, and one that I know other local authorities also take.
Planning decisions are sometimes the most user-friendly decisions that are made; although they are not necessarily the most important, they are where a local resident will have the most interaction with their local authority. Apart from when a bin is not collected—or, in a unitary or county council, when someone is going through problems with education or an education, health and care plan—planning decisions are the bread and butter of the public facing element for locally elected politicians.
Later in Committee, we will talk about how the Opposition feel that the Government are trying to take some of those responsibilities away, but the precept of this provision to allow locally elected councillors to have the best training that could possibly be provided, so that they make decisions that they are proud to stand by and are legally defensible on appeal, is long overdue and is of huge benefit to local authorities. We welcome clause 45.
On Government amendment 49, the Minister may forgive me a slight rant. I absolutely agree with this amendment on mineral planning authorities. I suggest that officers and managers of highways authorities, particularly those in Hampshire, should also undergo some training, given how woefully Hampshire county council officers have dealt with a mineral extraction facility in Hamble in my constituency. I know that the Minister cannot comment on that in his semi-judicial capacity, but I can because I do not have those responsibilities.
Locally elected councillors, who should make the decision and have had the proper training, refused Cemex’s application. When it came to appeal, local planning officers removed the rug from under people’s feet by refusing to defend that decision, so the local community has had to find £75,000 to try to defend it—thank God for the constituents of Hamble who are defending it. I know that the Minister cannot comment on that case, and I am being slightly facetious, but perhaps we need an audit of the way that officers engage their responsibilities as mineral and waste planning authorities. Other Committee members are aware of the case in Hamble, and, although I will not ask them to speak on it, I know they will be sympathetic to my call.
I thank the hon. Member for North Herefordshire for moving amendment 152 on behalf of the hon. Member for Shipley. It is well intentioned, but it would create a burden that is already met by national equality and planning legislation, as well as local authority planning guidance and locally set planning regulations. This is a slight role reversal, but I hope that the Minister will agree—I am not writing his lines for him—that accepting the amendment would create more bureaucracy for councillors on planning committees.
There is already provision, through national guidance, national legislation and local guidance, to ensure that developments are accessible and that accessibility is at the forefront of any proposed development. The Opposition do not support the amendment, because we believe that we have made great advances over recent decades in ensuring that developments are accessible and that local authority members and planning officers take very seriously their responsibilities when it comes to accessibility in the planning system.
I wholly welcome clause 45, which is a great thing for the empowerment of local authority councillors. It will bring councillors, their constituents and their residents closer together. Some of the most difficult decisions that I had to defend in my time as a councillor were those I took on planning applications as chair of the planning committee, particularly on the big blue IKEA in Southampton, which other hon. Members might have been to. Yes, I did that—I am looking to other Hampshire Members, who may have been there.
That decision was controversial, but I was able to defend it because I had had the training. When some of my or my committee’s decisions were challenged, I had a detailed knowledge from that planning training, which officers provided, so I could be questioned at appeal and make sure that the decisions were sound. We lost a few, but we defended a few; that is the nature of local democracy. I say to the Minister that I am deeply encouraged by clause 45, which we wholeheartedly support. We do not accept amendment 152. We wholly agree with Government amendment 49.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I welcome the considered and thoughtful contributions from hon. Members on both sides of the Committee. I will set out the purpose and effect of the clause, address amendment 152 and speak about Government amendment 49.
As we heard in the contribution of the hon. Member for Hamble Valley, planning is principally a local activity, because decisions about what to build and where—although not decisions about whether to build at all—should be shaped by local people. That is why we believe that planning committees have an integral role to play in providing local democratic oversight of planning decisions. As I have said, I have been a local councillor and sat on planning committees, as have many Committee members—the hon. Gentleman just set out his experience. Planning committees are comprised of dedicated elected members, and in most instances the decisions are well informed and robust.
It is, however, vital that in exercising their democratic oversight, planning committees operate as effectively as possible, focusing on those applications that require member input and not revisiting the same decisions. One of the ways we want to achieve those outcomes is by ensuring that all planning committee members receive adequate training to support their important work, which can be extremely complex when it comes to certain challenging applications.
The hon. Member for Broxbourne rightly made the point that lots of local planning authorities already have some form of mandatory training in place. Data from the Planning Advisory Service suggests that more than 80% of councils do, but a percentage do not, and approaches to training vary quite widely across the country. That leads to inconsistencies in knowledge relating to planning law and in practice among planning committee members, which obviously has an impact on their ability to apply the relevant laws and policies when making planning decisions.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
I am struck by the Minister’s point about the need for consistency. We will all be conscious of the level of inconsistency in delegated planning decisions, which make up around 95% of decisions on planning applications. Does he have a programme in mind to achieve the level of consistency for those decisions that this measure will bring to decisions made by democratically elected members?
Matthew Pennycook (Labour, Greenwich and Woolwich)
If I could probe the hon. Gentleman in turn, does he mean consistency in the decisions made by expert planning officers rather than on individual planning applications?
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
Actually, the answer is both. We will all know of people’s experience with local authorities: they meet a planning officer to discuss a delegated planning decision and they receive advice, but when it is submitted, it is considered by a different planning officer who takes a completely different view. Given that that is how the vast bulk of planning applications are dealt with, if the Government’s aim is to bring consistency and certainty to the process—it is a laudable aim—it will be necessary to focus on the more than 90% of decisions that are already made under delegated powers, as well as this measure, which is for that small number considered by the planning committee.
Matthew Pennycook (Labour, Greenwich and Woolwich)
That is a fair and reasonable point. If the hon. Gentleman will allow me, I will write to him to set out the Government’s thinking on that issue. If it is available—I fully expect that it will be— I will give him some sense of the level of refusals on appeal for decisions made by committees versus decisions made by expert planning officers, which I think would be relevant. In general terms, in many instances, we think that expert planning officers have the relevant expertise to make good decisions on the basis of planning law. We are trying to ensure through this clause that elected members also have that experience in place through mandatory training.
As has been rightly said, the clause is about building on existing good practice—there is very good practice out there—and ensuring that it is implemented consistently across the country. It is worth noting that mandatory training for committees was strongly supported by the sector as a whole in the responses to the planning reform working paper where we set out ideas in this space, lots of which we are taking forward.
We will introduce regulations to specify which planning functions are covered by this measure, what the training looks like—its nature and content, and how it will be delivered—and details about the certification process. Those regulations will be subject to further engagement with the sector and I will reflect on all the points that have been made today.
Paul Holmes (Conservative, Hamble Valley)
The Minister is being very kind; he just mentioned a point that I forgot to mention. I do not expect certainty, and he has said that he is bringing forward regulations, but what work has the Department already done with organisations that may have the capacity and the desire to provide that training to local authorities?
There may be situations where a planning officer within a local authority may be confident that they can provide that training, as was provided to me, but we also had the Local Government Association and other private KCs—QCs at the time—who could be paid to provide training. How does the Minister anticipate the training will be provided and by whom? Has his Department started the work to see what parties might be interested in providing the training?
Matthew Pennycook (Labour, Greenwich and Woolwich)
We have had a huge amount of engagement with the sector, both in working up the proposals and in the feedback that we have received to the planning reform working paper. The hon. Gentleman will also be aware of the Planning Advisory Service that already provides local authorities with support, and there are other organisations in this space that have a direct interest in planning and training. I am happy to provide him with further details if he wishes but, as I say, through the introduction of regulations, further detail will be forthcoming.
I should mention—Opposition Members will particularly enjoy this one, I think—that the Mayor of London can act as a local planning authority in respect of applications of potential strategic importance, so the training requirement will apply to him too.
Paul Holmes (Conservative, Hamble Valley)
I might as well pack up and go home— I did not hear any “hear, hears” in response to that—because the Minister has given us the best news that the Mayor of London requires planning training, after the failure of his authority to deliver the housing numbers that it wants and now the announcement that he thinks that he has carte blanche to build over the green belt with his blessing and that of the Secretary of State. I am delighted that under a Labour Government’s proposals, the Labour Mayor of London might actually learn something about planning in his authority.
Matthew Pennycook (Labour, Greenwich and Woolwich)
What is there to say to that? In no way did I imply that the Mayor of London requires planning training—I think he has had extensive planning training—but the training requirement set out in this clause will apply to him, because he acts as a local planning authority in respect of applications of potential strategic importance.
Likewise, it will apply to mayors of combined authorities and combined county authorities where they have functions corresponding to the Mayor of London conferred on them. The requirement will also apply to any persons authorised to act on their behalf, including, for example, deputy Mayors in London and other such figures. A mandatory requirement for training in planning matters will improve the overall decision-making process and decrease delays in delivery of much-needed homes and other crucial developments.
Before I turn to amendment 152, I will address a very well made point raised by the hon. Member for Broxbourne. Through regulations, we will set out the timing of when training is required, but he asked an important question about what happens if training is not in place when a decision is required and whether that would stall the process. As he will know, local authorities have their own codes of conduct. We trust local authorities to ensure that committees are carried out in accordance with the rules and regulations set out by the clause. We are aware of the need to ensure that undue delays are not caused, so for that reason any decision reached by members who are in breach of the measure will not be invalidated, but the requirement will still apply to local authorities. We are reliant on their code of conduct to enforce it.
Amendment 152 was tabled by my hon. Friend the Member for Shipley and spoken to by the hon. Member for North Herefordshire. As other hon. Members have said, it raises the excellent point that development must form an inclusive and safe environment for everyone. We wholeheartedly agree that that is of paramount importance.
The national planning policy framework makes it clear that planning policies and decisions should ensure that developments create places that are safe, inclusive and accessible. We want to ensure that our mandatory training supports members of local planning authorities to make decisions properly, in accordance with the relevant planning policies, including those I have just mentioned, and other material considerations. That is why we will work closely with the sector to design the mandatory training.
We do not think it is necessary to specify details of all the matters covered by mandatory training in the Bill, as to do so would be exhaustive and would pre-empt the forthcoming regulations and the further detail that I have referred to. I assure the hon. Member for North Herefordshire and my hon. Friend the Member for Shipley, who tabled the amendment, that we will consult on the content of the training to ensure that councillors are appropriately supported in making decisions in this area.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I invite the Minister to go slightly further. Will he say today that the regulations will include the requirement for both accessibility and heritage training?
Matthew Pennycook (Labour, Greenwich and Woolwich)
The hon. Member understandably tempts me to start to specify what will be in the training, but I will not do that. Further details will be brought forward in due course, but I have certainly heard the case made by Committee members about what the training should include in respect of accessibility and other issues.
Finally, Government amendment 49 is a minor and technical amendment that clarifies that members of mineral planning authorities should also undergo training in planning matters. Mineral sites deal with complex planning issues, so it is only right that members of mineral planning committees, acting on behalf of mineral planning authorities, should be included in the requirement to undergo relevant training.
Along with amendments 50 and 51—which we will come to shortly—this amendment clarifies the position of mineral planning authorities for the purposes of the Bill. To be clear, we want to remove any doubt as to the requirements of the Bill with respect to the training of members of mineral planning committees, and that is what this amendment achieves. For those reasons, I humbly invite the hon. Member for North Herefordshire to withdraw amendment 152.
Ellie Chowns (Green, North Herefordshire)
I beg to ask leave to withdraw the amendment.
Clause 46 - Delegation of planning decisions in England
Matthew Pennycook (Labour, Greenwich and Woolwich)
I beg to move amendment 50, in clause 46, page 61, line 39, at end insert—
“(7) Sections 319ZZC and 319ZZD and this section apply in relation to a relevant planning function conferred on a relevant mineral planning authority as if references to a relevant local planning authority were to a relevant mineral planning authority.”
This amendment has the effect that the Secretary of State may make regulations requiring certain planning functions conferred on mineral planning authorities in England to be discharged by certain persons or by committees of a certain size and composition.
Christine Jardine (Liberal Democrat, Edinburgh West)
With this it will be convenient to discuss the following:
Government amendment 51
Clause stand part.
Matthew Pennycook (Labour, Greenwich and Woolwich)
As I have set out, the Government recognise the vital role that planning committees play in ensuring that decisions about what to build and where are shaped by local communities and reflect the views of local residents. Under local government law, local authority planning decisions must be a committee function, not an executive one, and presently every council has its own scheme of delegation to identify the circumstances in which planning decisions are taken by the planning committee rather than delegated to officers.
While the vast majority of planning decisions for local planning authorities are made by committees— around 96%— there is some inconsistency, which can create risk and uncertainty in the system. Clause 46 therefore seeks to build on the existing approach by giving the Secretary of State the power to introduce a national scheme of delegation. I reassure the Committee, as I have at other stages, that these measures are not about taking away democratic oversight but about spreading good practice, and there is good practice out there already.
A national delegation scheme will set out which planning functions across the country should be decided by officers and which by planning committees. It will also give the Secretary of State the power to set requirements around the size and composition of planning committees, so that we can have a uniform arrangement across the country as to what is effective in that regard. That will help to address some of the issues that we have identified around the operation of planning committees, which include a lack of consistency and clarity on which applications will be determined by committee; too much time spent considering applications that are compliant with the local development plan, or considering niche technical details including post-permission matters; and a lack of transparency on committee decisions and their consequences.
There is lots of good practice out there, and we know that in almost all instances, committees make good decisions on the basis of planning law and relevant material considerations. However, we are all familiar—in particular those of us who have served in local government and on these committees—with examples of where a development proposal was on a site allocated in the local plan, and in line with all policy expectations, but the committee refused the application against officer advice, and the subsequent appeal was upheld, unnecessarily costing the local authority significant sums of money and creating delay.
Paul Holmes (Conservative, Hamble Valley)
Does the Minister not understand that local plans are usually formed by an administration and executive of the council, and that it is up to local ward members who may be affected by appointed or adopted sites within that local plan, and who feel that they want to have a say, to request that that is called in? If a planning committee decides that it should not go ahead, that is their decision. Does he not see that there is a separation between the power of the executive to meet the guidelines that the last Government and his Government have set out, and the willingness and ability to allow the planning committee to make decisions, even if it is on sites that an executive has already approved in the council’s local plan?
Matthew Pennycook (Labour, Greenwich and Woolwich)
A number of points here are worth pulling out. We have just discussed on mandatory training the need to ensure that all elected members across the country who serve on committees are cognisant of planning law and other considerations to which they must adhere.
I would gently press back. We know there are instances where committees take a decision on allocated sites against officer recommendation, out of line with planning law and those considerations, because it is easy to do so in certain instances—they might be responding to pressure from the gallery. I have had direct experience of that. It is deemed a cost-free decision to refuse an application on that basis, but it is not cost-free to the local authority and it introduces unnecessary cost and delay, and all the burdens that come with appeals.
Lewis Cocking (Conservative, Broxbourne)
Does the Minister recognise the other side of that coin? There are examples, and I can give him some from my local authority, of where officers recommend a planning application for approval, the committee turns it down, it goes to appeal and the planning inspector has agreed with the committee. It is not one size fits all; there are two sides to the argument and there will be examples of both. This measure puts a lot of trust in, and gives even more power to, planning officers.
Matthew Pennycook (Labour, Greenwich and Woolwich)
It does, and we think that is right. We think we should trust and empower expert planning officers. The appeals process will remain in force. I recognise the scenario the hon. Gentleman outlines. Local planning officers do not get every decision right. To gently challenge him, he is making the case for no scheme of delegation at all. Schemes of delegation are in place across the country. We are not saying that we do not trust expert planning officers to make the decisions on any applications. We trust them in lots of local authorities to make lots of decisions. As I said, 96% of applications go through planning officers.
There are two issues at play here, which we will perhaps draw out in the debate. We should be honest about them. Members may reasonably take the view that there should simply be no national scheme of delegation—that providing that consistency on the basis of a uniform national arrangement is wrong in principle. If that is the case, I respect that decision. That is not the position of the Government. We think there is a case for a national scheme of delegation.
Then there is the detail of what should go into that national scheme of delegation. Have we got the balance right in terms of the applications that should come before planning committees and should go to planning officers? We already trust expert planning officers to make decisions on a host of delegated applications across the country. The problem is there is huge variation in how those local schemes of delegation apply.
Lewis Cocking (Conservative, Broxbourne)
In the current scenario, local planning authorities can go through their own scheme of delegation, and if there are lots of objections or a significant public interest, they can determine that instead of doing it through the scheme of delegation, they can bring it to the planning committee, which they will not be able to do under the national scheme of delegation.
Matthew Pennycook (Labour, Greenwich and Woolwich)
I refer back to my point: the hon. Gentleman may take the view, which is a perfectly coherent and respectable view, that a national scheme of delegation is wrong in principle. That is not the Government’s view, because we think there are significant advantages to be had from introducing greater consistency and certainty about what decisions go to a committee, so we can have a uniform approach across the country.
Rachel Taylor (Labour, North Warwickshire and Bedworth)
Does the Minister agree that very often the controversial decisions that go to planning committees and are declined by them, leading to an appeal, result in higher council tax for residents, because of the huge cost of appeals, reviews and so on? A national scheme of delegation, where it is clear which decisions can be made under delegated authorities and which cannot, will therefore simplify the process for developers, remove the delays and costs for them, and keep costs down for local residents.
Matthew Pennycook (Labour, Greenwich and Woolwich)
My hon. Friend is absolutely right that it is not a cost-free decision to refuse an application where a committee does so on grounds that are not robust. That does not apply in the vast majority of instances. As I say, most committees are comprised of elected members who are diligent, considerate and aware of the risks. Through the mandatory training that we have just discussed, we are trying to get to a situation where elected members are trained and are more cognisant of planning law and the considerations they have to take forward. We want to ensure that there is consistency across the country.
As I say, there are two issues at play here. Some Members may take the view that a national scheme of delegation is wrong in principle. If Members do not take that view, which is not the Government’s view, the debate that we should be having, and will have—as I said on Second Reading, we will bring forward details, so that we can consider them alongside the Bill—is what the most appropriate national scheme of delegation would be, to achieve the right balance between making sure that the most controversial, major applications come before committees and entrusting expert planning officers to make other decisions.
Paul Holmes (Conservative, Hamble Valley)
I wonder whether the Minister has given any thought to political proportionality when it comes to any future national scheme of delegation. I will give him an example. Forgive me if this is slightly out there; if so, I can write to him, or we can have a conversation in the Lobbies later.
Say a local authority was 87% made up of one party, and there was one councillor from one party and another councillor from another party. In my constituency, we have a local authority that is overwhelmingly dominated by one party. For many residents, the planning system feels like it is out of touch, because the leader creates a different committee that allows just his party to make a decision—or, in the usual planning committees, local residents do not feel like the administration’s wishes are being taken into account, because the planning committee is overwhelmingly dominated by one party.
Will the Minister please assure us that any national scheme of delegation will not exacerbate that situation where local authorities have very strong political control one way, and political decisions within the planning system are taken by an overwhelming political administration? Will he assure us that we can have future discussions about that, so that such a situation in any local authority would not be made worse by a national scheme of delegation? I hope I explained that right.
Matthew Pennycook (Labour, Greenwich and Woolwich)
The shadow Minister did explain that correctly, and I recognise the challenge. I would say two things: first, I assure him that party political considerations have not factored in any way into the development of the clause. The measure that we are proposing will improve the situation in the sense that, if there are very clear rules about which applications can come before a committee and which should go to national expert planning officers, as per a national scheme of delegation, some of the potential to use specific applications that might not be the most major, controversial applications that should come before a committee, in a political way, will be removed. As I said, the detail regarding what the national scheme of delegation will entail will come forward in due course.
As I mentioned, the clause also allows the Secretary of State to make regulations setting out the size and composition of planning committees. Best practice suggests that having smaller planning committees can lead to more effective debates and decision making. We have seen some extremely large and unwieldy planning committees across the country. We want to ensure that there are, within reasonable parameters, some prescriptive views on what the most effective size is.
Our views have been tested with the sector. In response to our working paper, there was broad support for the principle of the proposals from the local government sector, and we will continue to take on feedback as we refine our detailed proposals. That will, as I said, include a formal consultation on the regulations through which the new powers will be exercised. That is a requirement imposed on the Secretary of State by the clause and must happen prior to the regulations being made.
As I said, local democratic oversight of planning decisions remains essential, but it is vital that planning committees operate as effectively as possible, focusing on those applications that require member input and not revisiting the same decisions. Clause 46 is about ensuring that skilled planning officers in local authorities are trusted and empowered in their roles, while retaining important democratic oversight on those sites that local people care about most. I commend the clause to the Committee.
Government amendments 50 and 51 are both minor and technical amendments clarifying that the power of the Secretary of State to make regulations requiring relevant planning functions to be discharged by committee, sub-committee or an officer, and regulating the size and composition of a planning committee, also apply to mineral planning authorities. As the Committee will be aware, a local planning authority is not necessarily also a mineral planning authority; it depends on if and where there is a minerals site.
Mineral planning authorities are a special type of planning authority, and it is only right and proper to include them within these provisions to ensure greater consistency and certainty within the planning system. We must be clear about which local authorities are to be caught by this clause. The amendment clarifies that mineral planning authorities, where they exist, are to be subject to the provision in the clause.
Paul Holmes (Conservative, Hamble Valley)
We will oppose the clause. Our reason for doing so is that this chapter of the legislation is a massive power grab and piece of centralisation. The whole Bill—in particular its planning reform elements and this clause—reeks of this Government’s centralising zeal, as I said on the Floor of the House on Second Reading.
I tried to explain our point of view in my interventions on the Minister. He rightly challenged people to say whether there should be a national scheme of delegation, and Conservative Members wholly say that there should not be. I am grateful that he recognises that that is a not an opportunistic viewpoint; it is one that we sincerely believe.
Local authorities should have the power to do what they wish to do, because they are elected by their constituents and their residents. They, too, have a democratic right to exist and to undertake the responsibilities placed on them by the residents of their wards. They have a democratic right and duty to undertake those responsibilities and to participate in their accountability structures as local councillors, delegated to make decisions on behalf of their residents, and of their towns, cities and villages all over the UK.
As I said, we are concerned that the clause is just another attempt to centralise and to give the Minister and the Secretary of State the ability to build 1.5 million homes without necessarily allowing democratic checks and balances to be in place. In further amendments later in the Bill, the Secretary of State and the Minister of State actively try to take power away from local authorities and locally elected people.
Has anyone on the Labour Benches who was in a local authority—I asked this on Second Reading—been approached by their local councillors saying that they are not happy? Former council leaders and former councillors sit on this Committee, and I ask them whether councillors have told them that their own party is taking away councillors’ power and ability to speak for their residents. Members of Parliament in Committee are actively allowing that to happen if they vote for this clause to stand part.
Many local authorities are allowed to choose the way in which they do their business. That is why we do not believe that there should be a national scheme of delegation. In my own regional structures, the county council has a regulatory committee and two planning committees, and the borough council—although I have vast disagreements with how Eastleigh is managed—has local area committees that are accountable to the local wards in their localities. Such committees are actually more democratic, because different parties might represent the ward on them. When I was a councillor in Southampton, we had one planning committee that looked after everything within the authority boundary. All of that is because local authorities, through their own delegated schemes and democratic structures, pick how they wish to conduct their business. The clause will simply stop those local authorities being able to do that.
I am not talking to the Minister only about the size of the committee and the principles behind that. All the way through this clause are regulations for the Minister to lay, not only about the size and composition of committees discharging such functions, but requiring which functions are to be discharged. Local authorities already have that. We believe that local authorities should be able to decide that.
I challenged the Minister on one of his examples about local plans that are drawn up by an executive but can now be challenged by locally elected members of a planning committee. We do not see anything wrong with that. Local council members represent wards affected by local plans delivered by an executive. Whether that is an executive of the same political persuasion as the councillors who have concerns or of a different political persuasion, councillors have their rights under a local scheme of delegation.
That planning application should be able to go to a planning committee and be called in by a member under the rights that they have as a councillor. If, after its members have been trained through the excellent provision proposed by the Minister, the planning committee still decides to reject the application, that is the power and right of the locally elected councillor, and this Government are taking that right away.
Nesil Caliskan (Labour, Barking)
Does the hon. Member not recognise that a local plan has to be approved by full council? That already gives every single councillor the ability to have their say at a full council meeting. Democratic oversight sits not just with local planning committees, but with different local authority functions. Democratic oversight is at its best at full council, and local plans are approved at full council, with a vote for every member.
Paul Holmes (Conservative, Hamble Valley)
I accept what the hon. Lady says, but I do not agree that a local ward member who may disagree with the local plan should not then have it considered in planning committee later on. Of course, a full council does meet to approve the local plan, but I go back to my original point: that is an executive decision.
Nesil Caliskan (Labour, Barking)
It is not. It is a full council decision.
Paul Holmes (Conservative, Hamble Valley)
It is an executive decision. An executive is required by legislation to put five-year housing land supply forward under a local plan, and a local plan is approved by full council. That work is undertaken by officers, signed off by a lead member for environment or planning under their responsibilities, and put forward to full council. The hon. Lady is absolutely right about that, but why does she then say that if a ward member wants to call in a planning application that affects the constituents who elected them in the village they represent, that should not be allowed to go to a planning committee and be decided on by that committee, whether or not it is against the executive’s local plan?
Nesil Caliskan (Labour, Barking)
Does the hon. Member not recognise that once a local plan is approved at full council, it is a regulatory framework that has legal standing? That is the framework on which a planning committee bases its decision. I take the point that members may want to voice a view, but in the context of a regulatory framework, all we are doing is setting people up for failure and costing taxpayers money for decisions that will be overturned on appeal.
Paul Holmes (Conservative, Hamble Valley)
Again, I understand where the hon. Lady is coming from, but it is still within the rights of the appointed planning committee to say yes or no to the detailed development proposals. Local plans talk about numbers and locations. Planning applications that go before officers but are then called in by the committee are discussed in detail: what the developments look like, how many affordable houses there are, and what roads and community infrastructure there will be. That is the right of local planning committees, and under these measures this Government will take that away.
Why does the Minister feel that he and the political leadership of his Department should say what functions should be discharged by a committee, sub-committee or officer, and what conditions local authorities should abide by? I say that that is the right of the local authority, and that a scheme of delegation drawn up through consultation by local members in a full council or a committee role should perfectly satisfy the democratic checks and accountability that local people expect.
We said earlier that one of the only ways in which people engage with their local authorities is through the decisions that their councillors make on planning applications. This Minister and this Government are potentially taking that away from a huge number of people across the country, just because they want to get their 1.5 million houses through. They are doing so based on what they think is acceptable, despite the fact that local councillors may not find it acceptable to them. That is a disgrace. This is the way in which this Government have decided to go forward on delivering their 1.5 million homes—through mandatory targets in urban versus rural areas, a national scheme of delegation, and taking power away from local planning authorities, local councillors and lead members.
The Opposition say that that is a disgrace. That is something that local members should be doing. At every sitting of this Committee and at the later stages of the Bill, we will always say that locally elected councillors should have the power and right—they have the democratic responsibility and the democratic mandate—to make local decisions for local people. This Government are taking that away. We will oppose this clause and push it to a Division, because it is simply not right for the people in this country, who elect their councillors to speak for them. Every hon. Member on the Government side of the Committee whose councillors and constituents are affected by planning decisions is effectively saying to those councillors that they are not good enough to make decisions on behalf of their ward members, and that those ward members should not be making decisions on behalf of their councils. I look forward to them explaining that at their AGMs.
Amanda Martin (Labour, Portsmouth North)
It is a pleasure to serve under your chairmanship, Ms Jardine. I would like to speak on amendments 50 and 51.
Portsmouth is a part of a minerals partnership and collaborates with Hampshire county council, Southampton city council, New Forest national park authority and the South Downs national park authority. Together, they have developed and adapted Hampshire’s minerals and waste plan. Does the Minister agree that amendments 50 and 51 will support administrative efficiency, particularly for those fully urbanised authorities such as mine in Portsmouth, where we have no or very few mineral resources to extract? Releasing such authorities from having full mineral plans and duties could reduce future duplication and free up much-needed planning resources, allowing us to work on plans that are relevant and specific to our area.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
We support the delivery of 1.5 million homes, but a confrontational approach, whereby elected representatives are longer allowed to take decisions on behalf of local people, will alienate people from the planning system, create more conflict and make it harder to deliver the homes that we need. Taking powers away from local elected representatives is taking powers away from local people. So much of planning is already predetermined by national guidance and policy.
Only last Friday, I had two parish councillors at my surgery. They came to ask why Government guidance on highway planning overrides everything that they, local people and their own transport planning expert know about highway safety in their village. Those objectors wanted to support the housing scheme in Cheddon Fitzpaine, but they were asking for a previous commitment to secondary access to be honoured. The councillors were told that there would be costs of £400,000 if they did not follow Government transport planning guidance, and they had no choice but to accept the application without the road. Not for the first time, after that meeting some of my councillors came to me and said, “What is the point of being a councillor if local resources are so constrained that there is no money to provide local services?” Even on planning committee, the Government are taking away decision-making powers from local people. It is totally unacceptable.
Matthew Pennycook (Labour, Greenwich and Woolwich)
This is an important point to try to tease out. The decision the hon. Gentleman has just referred to took place in an instance where, if I have understood him correctly, local residents took issue with the application of national policy and guidance on a planning decision. I do not think it is the position of either the Conservative party or the Liberal Democrats that national policy and guidance should not exist, and that it should all be completely localised. We may have disagreements on the spectrum, but we all recognise that national frameworks should be in place in some instances. The NPPF is a good example, as are other policies and guidance.
That is why I think we should have a more rational and proportionate debate—we may disagree at the end of it—about the pros and cons of a national scheme of delegation, and, if one is in favour of it, as the Government are, what it should include. There is this idea that, at present, local authorities and local elected members can do whatever they want—that they are completely free, and their mandate gives them scope—but, no, that is not true. They are constrained in several respects. In fact, we have debated that at length in this Committee. The NSIP regime was introduced in recognition of the fact that certain applications should be determined on a national basis, not by local committees.
I invite the hon. Gentleman to reflect and expand on why in this area, local discretion should be untrammelled—if I follow his argument—whereas in other areas he would rightly support the idea that national guidance and policy should be in place. He may differ with the content of that guidance, but local planning authorities are subject to frameworks and guidance that I think we all recognise should be in place.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I am grateful for the Minister’s intervention, but guidance and policy are guidance and policy. We are talking about giving him and all future Ministers, of whatever party, the power to write the delegation arrangements for each local council in the country and tell them what they may or may not be allowed to decide. The difference is that national infrastructure projects are huge projects that have a national justification and are decided by an elected Secretary of State, but the Bill will forcibly delegate to an employee of a council decisions that will quite often be completely disagreed with by every single member of a council but will stand as a decision of that council. It cannot be logical.
Matthew Pennycook (Labour, Greenwich and Woolwich)
That is a separate argument, but the hon. Gentleman cannot pray in aid the case that he has just cited, which was made on the basis of a national scheme of delegation not being in operation, and where his local residents just took issue with national policy and guidance, which he thinks should be in place. He has recognised, quite rightly, that elected members of the Government can take views about what national framework should be in place.
We strongly feel that there is a good case for a national scheme of delegation that does not remove, in the apocalyptic terms that the shadow Minister outlined, all decisions and all ability to input into applications from local residents, but simply sets out where appropriately elected members in committees should make decisions and where decisions should be left to expert planning officers.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I completely accept that policy and guidance exist, but there is a degree of discretion when it comes to policy and guidance. We are dealing with primary statutory legislation here, and there would be no discretion over its implementation.
I think the Minister should accept that this is not about a fluffy national scheme of delegation that we all agree with; this is about removing the right of councillors to recover decisions to democratically elected members of the council. They may not; they are not allowed to. The clause is very clear that the Local Government Act 1972 will be changed so that councillors may not recover those decisions, and they will be made by employees.
This is not about a national scheme of delegation. We could all agree on a recommended scheme and have a standard scheme of delegation. This is about the law. I am surprised that the Minister is so lightly giving all future Ministers power to deny decision making by local councils.
Paul Holmes (Conservative, Hamble Valley)
The hon. Gentleman is making a very reasonable argument. Does he agree that we could be having a very different debate today if the Minister and the Secretary of State had not been so heavy-handed in legislating on what local councils can do? We could be having a conversation about national guidance for planning committees. This overreach and this democratically reductive approach are the reason why the hon. Member for Taunton and Wellington I are so concerned about the Government’s measures.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
I agree with the hon. Gentleman. As I have said, the Local Government Act will be changed so that councillors may not have permission to recover such decisions, even if every single member of the council disagrees with a decision. This would be better described not as a national scheme of delegation, but as a forced removal of planning powers from councillors.
Nesil Caliskan (Labour, Barking)
I have heard comments about the planning system during the debate, but less focus on the fact that we have a housing crisis that has manifested itself in record numbers of people living in temporary accommodation, with young people unable to buy properties and many people priced out of the communities into which they were born and in which they live. A national housing crisis requires a national solution.
I do not believe that the proposed changes in any way hinder or damage democratic oversight from a local perspective. The reality is that with the existing framework, it is not possible to deliver planning approvals at the scale that is required to meet the national housing crisis, and a national delegation will help to speed up delivery. We cannot simply depend on a handful of brave councillors who too frequently find themselves in the firing line of decision making for schemes that it is clear to everybody should already have been approved.
I hear what Members say about local authorities, and what the LGA has said. However, the LGA is also clear about the housing crisis our communities are experiencing. The national scheme of delegation gives clarity not only to local authorities and planning officers, but to the industry that we so depend on to be able to build homes up and down the country. The scheme will also speed up processes. The speed at which planning permissions could be granted means that developers are more likely to put bricks on the ground and build homes. It is about recognising the severity of the housing crisis in this country and its impact on millions of people, and choosing whether one is willing to take action to address that need.
Ellie Chowns (Green, North Herefordshire)
I absolutely recognise that we have a housing crisis in this country, but does the hon. Lady recognise, in turn, that it is not just a question of building our way out of the housing crisis? Does she recognise that we have nearly 1 million empty homes in this country, that we have an incredibly unequal housing system, and that financial mechanisms such as the introduction of buy-to-let mortgages had a huge effect in making our housing system even more unequal and unaffordable for many people? Does she recognise that a key part of resolving the housing crisis has to be for Government to take a more direct role in funding the development of more genuinely affordable social rented housing?
Nesil Caliskan (Labour, Barking)
I recognise a number of those points, but supply of housing is the fundamental reason why we have a housing crisis in this country. The amendments being proposed sit alongside many of the solutions that she is seeking. Without our ability as a country, including local authorities, to see housing delivered at the necessary speed, we will never see the number of affordable homes we need or a buy-to-let market being constrained in the way that it needs to be. Supply is the No. 1 reason why we are experiencing a housing crisis. We cannot deliver the number of homes we need without fundamentally looking at the planning system.
Finally, on councillors having their say, the idea that councillors run for public office only because they want to sit on a planning committee—it sounded as if a number of Members were insinuating that—is, I am afraid, a little out of touch. There are lots of ways in which local authorities and councillors can make a difference. Planning committees are indeed one of the most attractive committees, but there are multiple layers of regulatory policy in a local authority that members not only can have a say on, but get to vote on. Earlier, I referenced a local plan that full councils are required to vote on.
An officer making a decision on an application that will not go to a planning committee does not remove a local authority’s ability to put out for consultation. Members of the public, and indeed councillors, will still have the opportunity to submit their views through what will be a statutory consultation period. Local authorities and planning officers will be obliged to take those views into consideration.
I want to underline the point that if we accept that there is a housing crisis in this country and that the planning system is broken, surely planning has to be an aspect that we look at in recognition that local authorities are sometimes being hindered by the existing framework. The speed at which we can deliver housing through a more streamlined planning system, putting faith in professionals in a local authority alongside councillors, will allow us to deliver the 1.5 million homes that we so desperately need.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
I will start where the hon. Member for Barking finished. We know that the planning system has delivered consents for 1.5 million new homes in England, where the development sector has failed to step up. One of the things much debated among political parties is the fact that that seems to suggest that, although there are undoubtedly issues, the planning system has been good at producing the opportunity for those new homes—the challenge has been the inability of the development sector to step up to the plate. That should be the priority to address.
My hon. Friend the Member for Hamble Valley mentioned the Mayor of London’s recent decision about going into the green belt. That is in the context of a capital city that already has 300,000 unbuilt planning permissions for new homes. The Opposition’s argument is that the priority should not be increasing the stock of unbuilt planning permissions but delivering the homes that our country needs.
Gideon Amos (Liberal Democrat, Taunton and Wellington)
As an illustration of the hon. Gentleman’s point about unbuilt planning permissions, in Somerset there are permissions for 11,000 new homes that have not been built, while the new NPPF requires a 41% increase in the allocation of permissions. There is no record of these pressures having led to an increase in the number of houses actually being built.
David Simmonds (Conservative, Ruislip, Northwood and Pinner)
If we look at the statistics from the ONS on new household formation and the balance between that and the delivery of new homes, we see that they are reasonably in balance at the moment. We know that many people would like a bigger home or a different type of home, and that is why we have consistently argued that we need to focus on the nature of the homes we are delivering, not just on the units being delivered through the planning system.
Members have consistently made the point about centralisation. The UK is already an exceptionally centralised country: we have fewer democratically elected politicians per head of population than most other developed democracies in the world. Our concern with these measures is that they further reduce the voice of a local resident through their democratic representative about a decision that may be the most significant thing affecting their home or their neighbourhood in their entire life.
By creating a national scheme of delegations, we go beyond a point of saying that all local authorities must ensure, in the delivery of a quasi-judicial process, that they are following the law. We begin to say that this is no longer a delegation: it is compulsory. We are taking away the democratic power of the local authority, under which it delegates those decisions to planning committees and to officers, and we are deciding in Whitehall who will make those decisions.
While I absolutely respect what the Minister is saying about expert planning officers, having served in the last Parliament as the chair of the all-party parliamentary group on housing and planning and worked very closely with the RTPI, I think we need to be realistic. In many cases, when the Minister says “expert planning officers”, we are talking about newly minted graduates who do not live in—and have no experience of—the local area. They arrive and undertake a desk-based exercise to make these decisions. They are not highly experienced people with a level of local insight who understand why particular aspects of design, materials, or the nature of a development will have a real impact on a neighbourhood.
There are specific examples; one is applications by elected members themselves. I know from my time as a councillor in Hillingdon that a standard rule to ensure transparency is that any application by an elected councillor must be heard by a committee. If someone wishes to change the windows in their home, or build a loft extension, it has to go through a planning committee, even when those things are covered by permitted development rights. That was to ensure that level of transparency. It is not clear how such issues are dealt with through this proposed scheme of delegation.
Matters of detail can be critical: ensuring the acceptance of a proposed development at a neighbourhood level may often come down to issues like overlooking or how it respects the privacy of neighbours. Does it have tree planting, to screen developments that people are unhappy to see? Will there be mitigations around noise? Those are not trivial matters; they have a huge impact on people’s quality of life. The ability of elected representatives to say, “This decision made, entirely in accordance with planning law, needs to be taken transparently in public so that these representations can be heard” is critical.
The measures do not address the issue of petitions. We already know that local authorities have slightly variable, but broadly consistent, measures across the country. Where residents of a neighbourhood with concerns about a planning application want the opportunity to be heard, they can petition; whether that item was going to be on a committee agenda or not, it will be taken to committee so that it can be dealt with in a public forum.
There is no clarity about how those rights of petition will be dealt under a scheme of delegation. It appears that those residents may simply be told, “This is a matter for that newly minted graduate sitting there with their scheme of delegations. They will decide it. You no longer have a voice, despite the fact that several hundred residents in a single street may have signed a petition or application.” Many of us, as Members of Parliament, will have heard that.
The hon. Member for Taunton and Wellington also referenced circumstances where committees are a route for making positive decisions, where things sit outside existing planning law, but the view of planning officers or elected members is that an application should be approved. An example of that, which I experienced in my constituency, relates to the changed rules over the years around permitted development rights.
If somebody has exercised their right to expand to the limited permitted development in the 1960s, they have acquired a home of a particular size, and that permitted development right has been extended by legislation on several occasions since. If somebody buys one of those properties in its original condition, then they enjoy less scope for expanding their property within permitted development because they have not previously exercised their rights under previous regimes. Planning officers may well take the view, especially if others in the street and neighbourhood have already extended, that they would put the issue to a committee. The committee could, in a quasi-judicial function, accept that on the basis of the evidence before them, it is reasonable with planning law to grant consent. However, following the rulebook, as the expert planning officers must, would result in such an application being refused.
Planning committees act as a safety valve for such occasions, when the letter of planning law may restrict or constrain what could happen but the experts, local elected representatives and the neighbourhood argue that we should go beyond it.
I finish by coming back to the initial point about what it means when we talk about a national scheme of delegations. There are many areas of local government life: education, children’s services and adult social care. Planning is another area where we have a series of statutory functions that must be discharged by the local authority. Traditionally, Governments have been of the view that the key thing for which we are legislating is the outcome. We want to see the effective, rigorous administration of planning law at a local level, and we want to make sure that that is done in a transparent way.
By introducing a national scheme of delegations, we are effectively taking away the discretion of the locally elected politicians, particularly on issues such as the enforcement of planning, where it is frequently a committee decision whether to proceed with enforcement. That is similar to those positive decisions I have described, where, for example, people are seeking to benefit from permitted development rights, and a decision may be made about whether enforcement action is in the public interest and the interest of that particular neighbourhood. By forcing such matters to be the subject of a Whitehall mandate, we remove that critical element of local discretion.
We know that around 34% of people are voting in local elections at the moment, and we are trying to encourage people to engage more because of the impact that has on the neighbourhood. If we take away their voice on something so fundamental and basic, which has such an impact on their domestic life—even inside their home—then we are doing no service to our democratically elected brethren in local government.
Olly Glover (Liberal Democrat, Didcot and Wantage)
I am conscious that we are reaching that time in the afternoon when we may be feeling a little fatigued, so I shall attempt to keep my remarks concise. First, it is important to bear in mind in this discussion that the Minister’s and the Government’s desire to take action to increase our ability to deliver the housing the country needs is sincere. The debate, of course, is whether the measure is an effective way of doing that.
I say to the hon. Member for Barking that there are many reasons why people decide to become local councillors. However, going by those in my constituency, it is because of a deep passion and care for their community. Major developments, of course, have major impacts on communities—hopefully for good, but sometimes for ill. It is entirely understandable that councillors would wish to have the full opportunity to scrutinise such proposals.
I was encouraged to hear the Minister say that national guidance and context are important for planning officers; I therefore hope that he will be receptive to some of our amendments and proposals in subsequent clauses. We must be clear that we are not attacking planning officers in this debate; they have a difficult role in balancing the national guidance and statutory requirements with strong local sentiments from councillors and residents. But that is why it is so important that councillors do continue to be involved.
One of the challenges is that we make the assumption that more house building automatically leads to more affordability, which sadly is not necessarily the case at all. The issue is all about the type of housing being delivered, and perhaps the current market-dominated approach is not always so effective. For example, in my constituency of Didcot and Wantage, in Oxfordshire, we have seen 35% population growth in 20 years. I have never opposed a housing development—neither in my current role as a Member of Parliament, nor before election. I do not intend to change that, because, yes, we do need more housing.
However, the housing growth has led to the fact that, in the town of Didcot, where I live, the average house price is now 15 times the average annual salary. South Oxfordshire Housing Association highlights a serious shortage of social and affordable housing, particularly for one or two-person households. A fairly small two-bedroom terraced house from the mid-’90s costs nearly £300,000, despite some of the fastest house-building growth rates in the country. So the issue is not just about the volume; it is also about the type.
I will give another example, then conclude my remarks. In Valley Park, to the west of Didcot, an outline permission request for a 4,000-plus home development came before the planning committee in 2021. The planning application was recommended for approval by officers, but the councillors on the committee felt that it did not include any provision for healthcare—something already under pressure in the town—and that cycle and walking provision was also poor. Because elected representatives made speeches during the meeting, outlining the issues, the planning decision was deferred for a couple of months and those things were able to be added in. That is an example of the real value that councillors can add.
Another example is that an application for a Lidl in the town of Wantage was recommended for refusal, but the planning committee and the councillors, having heard from local people, realised that it would be a well-used amenity and granted approval. Those are just two examples of where councillors in my constituency have added huge value.
In this time, when we are seeing a perhaps unprecedented loss of faith in politics—I am certainly thinking of the recent elections and, shall we say, some interesting voting patterns—keeping the local link and making sure that local people are brought into the planning process, and that planning is done with them rather than to them, continues to be very important. Councillors play a key role in that, and that is why they should retain their current positions and influence on planning committees.
Lewis Cocking (Conservative, Broxbourne)
I am beginning to get fond of the Minister, but we do disagree about clause 46 specifically. It is an attack on democracy. I have already made the point that, within my local authority of Broxbourne, we have a scheme of delegation that delegates some decisions to officers, but there is an ability to change that: if lots of residents are particularly concerned about a development, or even about a dropped kerb, that can go to committee.
I have served on a planning committee and overturned officers’ recommendations, both for approval and for refusal. On one planning committee, after we overturned an officer’s recommendation for approval, the issue went to the planning inspector, who wrote back, saying, “I uphold every reason that the planning committee has given for refusal. I fully support the decision it has made.”
I am really concerned about the lack of accountability because, at the end of the day, whether council tax goes up because of planning decisions made by the council that it then needs to defend at appeal, or bad planning decisions are made, the electorate can have their say at the May local elections. They can say, “Do you know what? We don’t agree with any of the decisions that this council is making, and we can vote for someone else at the ballot box.”
A national scheme of delegation removes councils’ ability to be flexible. This should not be one size fits all. There is also no accountability. We work with some brilliant planning officers, but we also work with some who are not as good in their opinions on planning applications. I have many examples within my own local authority. Speak to one planning officer, and they will say that something is a brilliant idea that fits the national planning policy framework; speak to another, and they will take a completely different view. There is a lack of accountability in what the Government are doing. Let me make a broader point: I do not know what councils have done to offend the Government. They want to abolish lots of them, create super-councils and take away their planning powers.
When we adopted our local plan in Broxbourne, I think it was the second local plan in history to be adopted virtually; because of the covid regulations, we had to meet online. I gently push back on the arguments that councillors at full council—I know that they have to vote on a local plan at full council—have had their say on a development. A local plan is not that specific. It will set out areas for development. It may set out some principles, such as wanting a school or a community centre on a site, but it will not go into detail on design, or the look and feel of the community.
The idea that councillors have had their say on the local plan and now everything will be approved and can go through is nonsense. I have made the point in the House that we really need to think about the communities we want to make. We can approve as many house building targets or applications as we want, but we have to give some thought to the communities.
Amanda Martin (Labour, Portsmouth North)
Does the hon. Member accept that two thirds of local planning authorities in England—around 206 councils—do not have an up-to-date local plan?
Lewis Cocking (Conservative, Broxbourne)
Both of mine have a local plan. A number of authorities do not have one; it is a long and arduous process, and I welcome discussions about how we can streamline it. As I said, if a local plan has been approved, a site may have been allocated for development, but the minutiae or detail regarding the design of that development will not have been gone into. I have always maintained that the reason developers struggle to get through the planning system is because they try to build absolute rubbish. If they came forward with lots of really good schemes, councillors would not give them as hard a time as they do.
Amanda Martin (Labour, Portsmouth North)
indicated dissent.
Lewis Cocking (Conservative, Broxbourne)
The hon. Lady shakes her head, but I have sat on a planning committee and seen developers come forward and make planning applications in line with local plan allocation on outline, which means that we are just discussing the principle of development, or potentially the numbers or the access, with all the detailed designs left to the full planning application. It is set out in gold. We get everything we want. We get a good 106 negotiation. There will be a new doctors surgery and a new school. Lo and behold, when that same developer comes back with a full planning application, it is completely different, but because the principle of development has been established it is very difficult to then turn down. Developers are taking some councils for a ride, and we need to be careful of that.
Nesil Caliskan (Labour, Barking)
The hon. Gentleman will recall that he and I worked very closely: we are part of a small percentage of ex-council leaders who actually saw through a local plan.