Monday 1st September 2025
(1 day, 21 hours ago)
Lords ChamberPlanning and Infrastructure Bill 2024-26 View all Planning and Infrastructure Bill 2024-26 Debates Read Hansard Text Watch Debate Amendment Paper: HL Bill 110-III(b) Amendments for Committee (Supplementary to the Third Marshalled List) - (1 Sep 2025)
Baroness Coffey (Con)
I think that is right. The HSE, on its own website, refers to the fact that it cannot comment on every application and, in effect, needs to be proactively contacted only if there is considered to be a major risk.
I am also conscious that the River Test is considered by my honourable friend Caroline Nokes to be under threat. For people who are interested in these things, I commend the speech of my right honourable friend Sir Alec Shelbrooke, who talked about dendrites. It was a very knowledgeable, well-researched speech about fire risk, including thermal runaway and the like.
Coming back to the fundamental proposal of my noble friend Lord Forsyth, he specifically asked me to talk about safety. There is a concern about overdevelopment and the loss of food for agricultural production. We will keep coming back to this on this side of the House, recognising the importance of food security alongside the other elements of national security.
On the amendment that I have tabled, perhaps I should declare an interest as this is about a subject that I have referred to a few times before: energy substations. Again, I am worried. There is an element here of thinking about where we do energy generation or other aspects of interconnection. Frankly, if the Government think the only way they can get these things done is by ripping apart environmental protection law and reducing food production land, they should not connect at those areas that already have these environmental designations or are key producers of food in this country.
My amendment refers specifically to 1, 2 or 3. I am conscious that the best and most versatile land is traditionally grades 1, 2 and 3a. However, Defra, through Natural England, does not publish where grades 3a and 3b are, because apparently that is too difficult to do, as it requires individual local site surveys on determining whether a particular field is grade 3a or 3b, so for comprehensiveness I have put in grades 1, 2 and 3.
However, as my noble friend Lord Fuller has pointed out, there is an element here about the fact that, frankly, a lot of this stuff was—in effect, with a light touch—reconsidered only in 2010. Fundamental parts of our land have not been assessed in terms of their contribution towards food production or food security for probably the best part of 40 to 50 years. As a consequence, recognising the targets set by the Government and the challenges that we face, I am conscious of the land use framework. Admittedly, I did a draft of that nearly three years ago, and I am sure everyone is frustrated that we still have not seen it yet. One of the challenges is this competing element of what we do with the land that we have.
Let us be straightforward about this: once agricultural land is gone, it is gone for good. I am not blaming farmers or landowners, who, candidly, the policies of the last 12 months have given even more reason to get a secured income on the basis of the value or use of their land. One of the foibles, in a way, of doing things such as leasing out land for solar is that it does not adjust in terms of the agricultural elements of inheritance tax. However, when farmers can get a guaranteed income for a proportion of their land, while other things are so uncertain, I do not blame them for wanting to make that choice.
My honourable friends—apologies, I am still earning about this place; I should have said my noble friends—have eloquently put some of the issues around solar. There definitely has to be a place for solar across our country, but one final point that I want to make on battery energy systems is that we really need to target where they are going to be. There is no point in having batteries in parts of the country that are nowhere near the grid or near where most of the energy is going to be used. That is why I have proposed the amendments I have today.
Baroness Neville-Rolfe (Con)
My Lords, I simply want to agree with Amendment 89 in the name of my noble friend Lady Hodgson of Abinger. I prefer it to the amendments from my noble friends Lord Fuller, Lord Forsyth and Lady Coffey, although they all have merit. We have heard from my noble friend Lady Coffey that we may already have enough solar farms under consent already, although I am not sure what the Minister thinks of that.
As the House of Lords, we can take a longer-term view and, unfashionable though it may be, I believe we should protect the highest-quality agricultural land for farming and food and prohibit solar farms on that land. It is of course less costly for the developers, who want flat sites, but that is not a good reason to sacrifice the best land needed for food security.
Government is about balance. Our population is growing. We live in a dangerous world that could one day jeopardise imports of food, and the most productive land should be devoted to growing crops.
Lord Roborough (Con)
My Lords, I will speak to Amendment 89 in the name of my noble friend Lady Hodgson of Abinger, Amendment 92 in the name of my noble friend Lord Fuller, Amendment 94A in the name of my noble friend Lord Forsyth of Drumlean and Amendment 94B in the name of my noble friend Lady Coffey. These amendments focus on a matter of strategic and national importance: the protection of prime agricultural land in the face of increasing pressure from non-agricultural development, particularly the expansion of renewable energy infrastructure. The arguments have been well made already in this short debate, so I can be brief.
In bringing these amendments, my noble friends rightly highlight the wider context in which we debate this issue. The agricultural sector has been under immense pressure from market volatility, environmental challenges and, regrettably, punitive tax measures such as the family farms tax raid. Against that backdrop, it is more important than ever that we protect our best and most versatile land, not just for farmers but for the long-term food security of our nation. The Government must support an approach that balances the need to scale up renewable energy with the critical need to maintain our ability to feed ourselves.
These amendments make a strong case for preventing the unnecessary loss of high-quality agricultural land. As I and other noble Lords have previously highlighted Committee, some of the largest solar developments are being approved without proper regard for the grade or quality of the land being sacrificed. Every one of the large-scale solar farms approved under NSIP that I have looked at has been materially located on best and most versatile land. That is not just a matter for the farming community; it is a matter of national food security. We cannot create a future in which we can switch on our lights and heat our homes but are unable to feed ourselves. We must not let the pursuit of energy security come at the expense of food security.
As others have highlighted, a disproportionate percentage of our best and most versatile land is going to solar. This is madness when 58% of our farmed land is not in the BMV category and there is also a significant amount of unclassified and unfarmed land that could be used for renewable development. With the Government’s ambition to triple solar capacity by 2030, the pressure on land is only going to intensify. Unless active steps are taken now to guide that development sensibly and strategically, we will continue to see the erosion of our agricultural capacity and, with it, increased dependence on imported food.
These amendments are both timely and necessary. They would ensure that solar and other non-agricultural developments are directed towards less productive land or even non-productive land, leaving our best farmland for the essential job of feeding our population. I urge the Minister to take these amendments seriously and offer clear assurances that under no circumstances will the Secretary of State approve developments that compromise the UK’s food security.
The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, Amendments 89, 92, 94A and 94B relate to Clause 28 and the protection of agricultural land. I thank the noble Baronesses, Lady Hodgson and Lady Coffey, and the noble Lords, Lord Fuller and Lord Forsyth of Drumlean, for tabling these amendments. Is that the right pronunciation of Drumlean? I am glad he is not here, because I know he would shout at me if I got it wrong.
Amendment 89, tabled by the noble Baroness, Lady Hodgson, seeks to prohibit the construction of ground-mounted solar farms on land of grades 1, 2 and 3A. The Government view food security as national security and champion British farming and environmental protection. All solar projects undergo a rigorous planning process, considering environmental impacts, local community views and any impact on food production. The Government believe that solar generation does not threaten food security. As of the end of September 2024, ground-mounted solar PV panels covered an estimated 21,200 hectares, which is only around 0.1%—not 1%—of the total land area of the UK. Even in the most ambitious scenarios, only up to 0.4% of UK land will be devoted to solar in 2030.
The Government are in total agreement with the noble Baroness in that we want to get the balance right between protecting fertile agricultural land and facilitating renewable energy. The Government agree that protecting food security should always be a priority. That is why land use and food production are already material considerations in planning. Planning guidance makes it clear that, wherever possible, developers should utilise brownfield, industrial, contaminated or previously developed land. Where the development of agricultural land is shown to be necessary, lower-quality land should be preferred to higher-quality land. However, we do not believe the accelerated rollout of solar power under present planning arrangements poses a threat to food security.
The government consultation on the land use framework sought feedback on what improvements are needed to the agricultural land classification system to support effective land use decisions. The land use framework, to be published later this year, will set out the evidence, data and tools needed to help safeguard our most productive agricultural land. It will also lay out how government intends to align the different incentives on land; ensure that joined-up decisions are made at national and local levels; and make accessible and high-quality data available.
As such, we believe that this amendment is not necessary to protect agricultural land. Moreover, a total ban on the use of higher-quality land may have several deleterious consequences. Quite often, a site suitable for solar development will contain soil of varying quality. At the moment, the amount of high-quality land proposed to be developed is examined by planning officers. This is a consideration in planning decisions. Were this amendment to be incorporated into the Bill, large projects could be rejected for the sake of a small area of higher-quality soil that constitutes a small fraction of the overall site.
This amendment would reduce the number of economically viable sites for solar generation, which would increase costs for developers. They may seek to recoup these by placing higher bids in the contracts for difference scheme. That cost is ultimately borne by bill payers. In short, banning all solar development on higher-quality land may endanger the Government’s mission to achieve clean power by 2030, increasing the exposure of British consumers to volatile imported fossil fuels.
I shall touch on the noble Baroness’s point about solar on domestic and non-domestic buildings. Deploying rooftop solar remains a key priority for the Government and we will publish the future homes standard this autumn. The new standard will ensure that solar panels are installed on the vast majority of new-build homes once it comes into force, saving households hundreds of pounds a year on their energy bills. That will support our ambition that the 1.5 million homes we will build over the course of this Parliament will be high-quality, well designed and sustainable.
Additionally, the recently published Solar Roadmap contained several actions for both government and industry to support the deployment of solar PV in the commercial sector. These included unpicking the complex landlord/tenant considerations in the sector by developing and distributing a toolkit for owners and occupiers. The Government set out that rooftop solar on new non-domestic buildings will, where appropriate, play an important role in the future buildings standard, due to be introduced later this year.
The Government have also announced £180 million of funding for Great British Energy to help around 200 schools and 200 NHS sites to install rooftop solar. We expect the first of these installations to be complete by the end of the summer—summer being a flexible concept, so whenever that comes. The Government are assessing the potential to drive the construction of solar canopies on outdoor car parks over a certain size through a call for evidence, which closed on 18 June. We will publish the government response to that consultation. I trust that the noble Baroness will be satisfied with that response and I kindly ask her not to press her amendment.
Amendment 92, tabled by the noble Lord, Lord Fuller, seeks to remove solar projects on high-quality land from the nationally significant infrastructure project regime. I thank the noble Lord for his engagement on this subject. I know that he has spent many years serving in local government and has considerable expertise. However, I hope that he recognises the contradiction in his argument. At the same time as he argues about the very difficult conditions that farmers face in growing food, these are brought about by climate change, but he is using them as arguments not to tackle it by moving to clean energy—so there is a bit of a contradiction in the argument there.
It is vitally important that every project is submitted to the planning process that best suits its impact, scale, and complexity.
Lord Fuller (Con)
The point is that the difficulty that farmers are under may be aggravated by poor weather, either too wet or too cold, but the real problem is that this Government are engaged in a war on the countryside by undermining the finances of every family farm and damaging food production, even with the stuff on bioethanol, taking 1 million tonnes of wheat out of the market. That is the reason why farms are doing so badly—it is not to do with climate change.
Baroness Taylor of Stevenage (Lab)
The noble Lord was referring specifically to climate impacts on food growing, which I felt was a bit ironic as we are trying to tackle the climate change that is bringing them about with exactly these measures to use clean energy.
The Government recognise the benefit of returning control over decisions to local planning authorities. As of 31 December 2025, we will double the NSIP threshold for solar projects from 50 megawatts to 100 megawatts. However, the Government believe that large solar farms, even when they propose to use higher-quality agricultural land, are best dealt with under the NSIP process.
The NSIP regime is rigorous. Although the decision is not taken locally, local engagement is still at the heart of the process. Under the current legislative framework, developers taking projects through the NSIP regime are required to undertake community consultation as part of the preparation for the application. This gives communities ample opportunity to feed in their views and shape the project. Currently, the level and quality of community consultation, among other factors, is taken into account by decision-makers. I am glad the noble Lord made a protest about the one that he was subject to; I hope communities will do that if they feel that those consultation processes are not being carried out in good faith.
Moreover, considerations under the NSIP regime include any impact on land use and food production. Planning guidance is clear that poorer-quality land should be preferred to higher-quality land, avoiding the use of best and most versatile agricultural land where possible. This is in line with the policy governing decision-making by local planning authorities. Even if there were a marginal gain in public confidence from returning the decision to local authorities, we would not expect the outcomes to change.
This marginal gain must be weighed against the likely costs of this proposal. First, a proper examination of the potential impacts of a large-scale solar farm is a major and lengthy undertaking. Giving this responsibility to local planning departments may place an untenable burden on resources which are already under pressure.
Secondly, it is right that projects of such scale, size or complexity as to be nationally significant should be considered through the NSIP process. These proposals are of strategic importance to the country as a whole, and as such central government is the most appropriate decision-maker. Changing policy to allow decisions about these projects to be taken by local authorities may increase investor uncertainty at a pivotal moment for the Government’s 2030 clean power mission. This may jeopardise our work to reduce reliance on imported fossil fuels, increase energy security and protect consumers from global price shocks, just at the very time when Members have raised the issue of security.
Lord Fuller (Con)
I am prompted to intervene only because the head of the noble Lord, Lord Khan, nearly seems to be falling off with nodding. The point is that the NSIP regime is combining schemes which, frankly, should normally go through the local planning authority. These are disparate, small, stand-alone schemes which fall under NSIP only because the system is being abused to string them all together quite artificially. There are no capacity constraints in local government planning to do with these smaller schemes; we know where they are and we know the issues. To suggest that stringing together a dozen different small schemes is nationally significant demonstrates the falsehood and the paucity behind the argument that NSIP should be engaged in this manner.
Baroness Taylor of Stevenage (Lab)
These are geographical schemes. As I said, we are increasing the size of schemes that will go to NSIP.
Lastly, I am concerned that accepting this amendment would imply that there are some issues on which the NSIP regime is either not competent or not qualified to adjudicate. This is simply not the case. Setting this precedent may reduce public confidence in the NSIP planning system as it applies to other types of infrastructure. It may undermine trust in decisions which have already been taken. For all the reasons I have outlined—although it sounds as though I have not convinced the noble Lord—I hope he will not press his amendment and will continue to work with us on this issue.
Amendment 94A, tabled by the noble Lord, Lord Forsyth, and spoken to by the noble Baroness, Lady Coffey, seeks to prohibit battery developments on best and most versatile agricultural land. The Clean Power 2030 Action Plan set out an expansion of renewable technologies required to achieve the 2030 ambition, including the acceleration of grid-scale battery development from around 5 gigawatts at present to at least 23 to 27 gigawatts by 2030. Grid-scale batteries, which are rapidly falling in cost and increasing in scale, allow the power system to store cheap excess renewable energy and use this, rather than expensive polluting gas, at times of need.
Baroness Neville-Rolfe (Con)
Can the Minister not deal with the problem of patches of best-quality land on a site with a classic de minimis rule of, say, 5%? That would still allow us to protect the best land without needless delay and Defra—or the new framework that the Minister mentioned—could easily provide the data for that purpose.
Baroness Taylor of Stevenage (Lab)
I am sure that if the noble Baroness wished to put that forward in the land use framework it would be considered. I always worry about de minimis rules because there will always be the exception to the rule that goes slightly over it, and then you end up with a big problem sorting that out. However, if she wishes to feed that into Defra’s part of the land use framework consultation, I am sure it will take account of it.
Baroness Hodgson of Abinger (Con)
I thank the Minister for her extensive response and all noble Lords who have contributed to this debate, especially those who have given support. Many interesting points have been raised, and some very worrying statistics. I simply repeat that, especially given the international situation, we really need to think about national food security and resilience. We import 40% of our food and, if we got into a war situation, we would need to grow more than we are at the moment. It seems counterintuitive to be allowing good agricultural land to be used to generate electricity when this can be done elsewhere.
I will not repeat all the points previously made, except to say that we also need the good will of the British people. We need to ensure that local people can have their views heard. I was heartened when the Minister said that there would be community consultation, but too often these consultations are binned and not acted on—people listen and then some other outcome happens. I hope that community consultation in which local people expressed that they really did not want solar farms would be respected and the schemes would be turned down.
I was slightly disappointed that the Minister did not address the points about foreign investors leasing this land long term. I imagine that we do not know who they are and we are not checking on who is buying what. I am very disappointed to hear that the Minister is not prepared to recognise the depth of feeling on this issue. I withdraw the amendment now, but hope that we can have further consultations and some movement can be made to address what all of us have tried to say about making sure that prime agricultural land does not have solar farms on it. I reserve the right to bring this back at the next stage of the Bill.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, this group of amendments relates to the development and implementation of local area energy plans. The proposals raise important questions about the role of local authorities in our transition to a decarbonised, secure and efficient energy system. We have heard some thoughtful contributions about the tensions between local and central government, but also of the enormous potential when the right balance can be struck between the two.
Let me begin with Amendment 90, in the name of the noble Earl, Lord Russell, which would require all local authorities to prepare and publish local area energy plans. These plans would outline current and future energy needs and the decarbonisation pathways to meet them. The underlying intent here is one we can all recognise. The energy transition cannot be delivered only centrally; local authorities must have a clear understanding of their energy demands and the means to meet them sustainably. The noble Earl, Lord Russell, made a number of good points, reinforced by the noble Lord, Lord Hunt of Kings Heath, on which we might all agree in principle.
However, while we acknowledge the ambition behind this amendment, we would caution against placing an additional statutory duty on all local authorities, particularly at a time when many face stretched resources and competing priorities. A blanket requirement risks creating a burden of compliance that may prove challenging for councils already struggling with core service delivery. We must ensure that our expectations of local government are realistic, proportionate and backed with adequate support.
Amendment 177, tabled by the noble Lord, Lord Ravensdale, seeks to define the consultation and approval process for local area energy plans and mandates the provision of guidance to assist local authorities in their preparation. We recognise the positive intention here to provide clarity, consistency and technical support to authorities seeking to engage with this important agenda. This amendment also aims to widen the uptake of such planning and to define better the role of local authorities in delivering the future energy system. Those are commendable aims. While we must avoid onerous procedural hurdles or risk diverting local effort away from practical delivery into process-heavy reporting, we hope the Minister will consider this amendment carefully.
In conclusion, these amendments rightly draw attention to the importance of empowering local authorities in the energy transition. I welcome the debate and the ideas put forward, but urge a cautious, pragmatic approach. I look forward to the Minister’s response and any reassurances he can give on the Government’s direction in this space.
The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Lord Khan of Burnley) (Lab)
My Lords, I start with Amendments 90 and 177, which relate to local area energy plans. I thank the noble Earl, Lord Russell, the noble Baroness, Lady Bennett, and the noble Lords, Ravensdale and Lord Hunt of Kings Heath, for tabling these amendments.
Amendment 90, tabled by the noble Earl, Lord Russell, seeks to require all local authorities and combined authorities to produce a local area energy plan. The Government are committed to working in partnership with local government, in recognition of the essential role that local places play in accelerating to net zero and supercharging our mission to deliver clean power by 2030. We recognise that, in support of this role, some local authorities have already produced local area energy plans and have used them to plan for the investment they need to support the energy transition and deliver net zero in their areas. We welcome the work that many local authorities have undertaken to develop and deliver their local energy plans. Local authorities may well be considering how planning their future energy needs may form part of their local growth plans or help contribute to Ofgem and NESO’s work on regional energy strategic plans.
However, this is not the right time to place further burdens on local authorities, while the approach to energy planning is still under development. We are considering how these plans might align with a range of regional and national plans, including the regional energy strategic plans, the warm homes plan, heat network zoning and Great British Energy’s local work. With that in mind, we continue to consider the potential benefit of local net-zero plans, working with partners across central and local government such as the local net-zero hubs, Great British Energy, NESO, Ofgem and Innovate UK.
We are also learning from the work of several local authorities in England which have already undertaken to develop their own plans, in recognition of the important lessons that can be learned from local authorities. In the meantime, local authorities that wish to assess whether energy planning fits with their wider strategic plans can access a range of support to help them develop local plans, including the tools and advice available on the Net Zero Go digital platform, supported by the department and the advice and support available to them from their local net-zero hubs.
Earl Russell (LD)
I welcome the Minister’s response to my amendment and the amendment in the name of the noble Lord, Lord Ravensdale. However, I am hearing from the Minister that this is not the right time to do this stuff. I understand that the Government are actively drawing up different strings and bits of policy and bringing them together. However, if now is not the right time, when might be the right time?
The Minister says that the Government are drawing together policy but also that there are loads of policy guidance available for local authorities that want to do this. The two statements are almost contradictory. Now is not the right time for the Government to give guidance, but guidance is available to any local authorities that want it. My worry is that this leads to guidance that is much more open to interpretation, which the Government do not have proper control of and which could be followed in multiple different ways without the Government having control over it. I strongly ask the Minister to think again on these matters. These are really important issues. I recognise that the Government are forming policy, but forming policy and working with local authorities are not contradictory things. These are everyday matters of government.
I thank the Minister for his response but call on the Government to think again.
Lord Khan of Burnley (Lab)
I appreciate the noble Earl’s contribution, but I politely disagree in that there is a lot of advice and support from local net-zero hubs funded by DESNZ. I understand and sympathise with what he is saying. We have all said today that we want to get moving as fast as we can, in a speedy manner, and to grow. This is all part of the agenda. We want to make sure that we get things right, be concise and have the right level of engagement and consultation, to ensure that when we have the clear plan moving forward it is well understood and implemented and does not have unintended implications or consequences.
Lord Ravensdale (CB)
I want to complement what the noble Earl just said. A couple of years back, when I raised this as part of the Energy Act 2023, I remember being given a similar response: this was still being considered by the Government as part of how it would fit into the bigger picture. But I think the Government need to recognise the real importance of that governance-level flow-down from national to regional to local, the importance of local understanding in this picture and the real priority that needs to be placed on developing this guidance and strategy for local areas to take it forward. I hope the Minister will reflect on that.
Lord Khan of Burnley (Lab)
I take note of the noble Lord, Lord Ravensdale, complementing the noble Earl, Lord Russell, and I recognise that there is a lot of work to do. I appreciate that the noble Lord has raised this before, but now we actually have a Planning and Infrastructure Bill which will very much fix the foundations of the whole growth to net zero and clean energy 2030.
My final and important point on this is that now is not the right time because we do not want to put further burdens on local authorities while we are still developing and finalising our energy planning. That is still under development, but I reassure the noble Lord that we are on it. We want to make sure that this happens as fast as possible, and this Bill will help us to change a lot of the infrastructure, thinking and systems in place in order for our country to grow.
Lord Jamieson (Con)
My Lords, I thank my noble friend Lady Coffey for bringing this matter to the attention of the Committee, in particular the issue of concentration of power supply and potential implications. This amendment would limit the consent for electricity infrastructure within a 50-square mile area where the cumulative capacity is more than 10% of the country’s total. This raises several important questions for the Government. What assessment has been made of the cumulative impacts on a local area already hosting significant infrastructure? Additionally, how will fairness between different regions be measured and maintained? What mechanisms are in place to prevent overconcentration in certain areas at the expense of others, given, as my noble friend mentioned, the potential strategic risks to the country? I look forward to the Minister’s reply.
Lord Khan of Burnley (Lab)
My Lords, Amendment 94C, tabled by the noble Baroness, Lady Coffey, would create a new local area test, designed to limit the consenting of electricity infrastructure by reference to a percentage of the national total. In other words, it is addressed at the overconcentration of infrastructure in particular places.
The Government agree with the noble Baroness that the siting of electricity infrastructure should be considered carefully. While the Government are taking a strategic view, they are doing so via the strategic spatial energy plan and the centralised strategic network plan, due for publication by the end of 2026 and 2027 respectively.
It is unclear how exactly the amendment is intended to work in practice, given the complications of concepts such as cumulative capacity. It is not in the national interest for individual applications to be assessed or prevented by reference to a subjective threshold. They must be judged on the need case for the infrastructure weighed against local impacts, and that is precisely what the current system achieves. For projects designated as nationally significant, known as NSIPs, there is already a national policy statement, approved by Parliament, which sets out in detail the need case for this infrastructure and all the considerations that must be applied when consenting it.
This amendment would add further complexity to the consenting system, which could lead to a slowing down of the decision-making process for low-carbon and electricity infrastructure projects, which are crucial for this country—although, in practice, the threshold of 10% of the entire country’s electricity capacity is so high that it is highly unlikely that any project would in fact reach such a threshold.
The Government agree that infrastructure planning should have a special element. The strategic special energy plan will support a more actively planned approach to energy infrastructure across England, Scotland and Wales, land and sea, between 2030 and 2050. It will do this by assessing and identifying the optimal locations, quantities and types of energy infrastructure required for generation and storage to meet our future energy demand with the clean, affordable and secure supply that we need.
Lord Jamieson (Con)
My Lords, I rise briefly to talk to Amendment 94D, tabled in the name of my noble friend Lady Coffey. This amendment concerns constraints on grants delivered by the Gas and Electricity Markets Authority. I simply ask the Minister whether he can clarify how the Government intend to ensure that such grants are awarded in a way that is both transparent and consistent across different technologies. I look forward to the Minister’s response.
Lord Khan of Burnley (Lab)
My Lords, Amendment 94D tabled by the noble Baroness, Lady Coffey, seeks to prohibit the Gas and Electricity Markets Authority—GEMA—from granting or considering early construction funding or accelerated strategic transmission investment unless planning consent has already been secured.
While I understand that network companies should not be given excessive funding for projects where procurement or construction costs are not yet incurred, I must urge noble Lords to consider the unintended consequences that this amendment would have for our energy infrastructure and our collective ambition to deliver a net zero-ready grid.
Let us be clear: the mechanisms in question, early construction funding and ASTI, are not blank cheques. They are carefully staged investments, including stages designed precisely to support the preparatory work that enables planning consent to be sought in the first place. This includes environmental assessments, route design, stakeholder engagement and technical feasibility studies. These are not luxuries; they are prerequisites for any responsible and successful planning application.
To deny access to funding before planning consent is granted creates a paradox. Planning consent cannot be obtained without preparatory work, and preparatory work cannot be funded without planning consent. This amendment risks trapping vital transmission projects in a bureaucratic cul-de-sac.
We are not debating theoretical infrastructure; we are talking about the backbone of our future clean energy system—projects that will connect offshore wind, solar and other renewables to homes and businesses across the country. These are the arteries of our economy. Delaying them risks not only our clean energy mission and net-zero commitment but the security and affordability of our energy and wider economic growth as grid capacity is needed to power new investments.
Moreover, GEMA already operates under a rigorous framework of accountability and oversight. Funding decisions are not made lightly; they are subject to scrutiny, cost-benefit analysis and alignment with strategic national priorities. To impose a statutory constraint at this stage would not enhance that process but hinder it. I therefore kindly ask the noble Baroness, Lady Coffey, to withdraw her amendment.
Baroness Coffey (Con)
My Lords, again, I have split this amendment off from the other consideration of energy infrastructure projects. To cut to the chase, we need to make sure, bearing on some of the debate that we have had earlier about how we are going to achieve joint objectives, not only that we have a fit-for-purpose grid but about how we move the transition along. I have consistently tried to make the case that that cannot be done at the expense of the natural environment.
Arising from the Environment Act 2021 is a duty on Ministers specifically to consider policy in terms of environmental principles, but I think I am right in saying there is also a requirement to consider the genuine impact of projects when a Minister is giving consent to them. One element will be thinking about biodiversity as well as considering the natural capital accounts of the country—on which we do annual balance sheets which are put forward by the Treasury—and a key consideration should be what is happening as a consequence of the environment to any particular project. One of the things that I am afraid is somewhat shrouded in mystery here is that normally there is just the response, “Yes, we have considered this”, and nothing is shared with the country. My amendment is intended to ensure transparency.
I am conscious that the sub judice rule might apply, and there is already a legal case against the Deputy Prime Minister over her Section 20 statement regarding the Bill—I am assuming that, by extension, that applies to the Minister as well. However, it is important that not only Ministers but the wider country understand quite what is happening in this balance. The reason I say that is that primary legislation is already in place where the primary indicator is about the recovery of aspects of nature, particularly thinking of species. As a consequence, transparency is vital, and the OEP has been regularly pushing for a lot more transparency on exactly this sort of information so we have a sense of whether we are going to be anywhere close to hitting the targets that this Parliament has already agreed to in both primary and secondary legislation. On that basis, given the time of the evening, I simply beg to move.
Baroness Scott of Bybrook (Con)
My Lords, I thank my noble friend Lady Coffey for bringing Amendment 94F to the attention of your Lordships. It would ensure that the duty relating to environmental principles was published in full. I ask the Minister: how are the Government going to monitor compliance in relation to environmental principles? As importantly, how will Parliament be kept informed of progress in this area? I thank my noble friend Lady Coffey for tabling her amendment and allowing us to ask those questions, and I look forward to the Minister’s response.
Lord Khan of Burnley (Lab)
My Lords, I was beginning to feel a bit of déjà vu before the noble Baroness, Lady Scott, spoke in place of the noble Lord, Lord Jamieson.
Amendment 94F, tabled by the noble Baroness, Lady Coffey, seeks to ensure that where an energy infrastructure project requires an assessment in relation to the environmental principles policy statement by the Secretary of State or the Gas and Electricity Markets Authority, this assessment and any advice provided and considered as part of that assessment is published.
As highlighted throughout today’s debate and in earlier discussions on the Bill, it is essential that we press ahead and deliver the critical infrastructure that we need to cut greenhouse gas emissions to net zero by 2050 and to achieve a clean power system by 2030. I thank the noble Baroness, Lady Coffey, for tabling this amendment and for the opportunity to set out both how the environmental principles policy statement and the environmental principles more broadly are given due regard by this Government.