Monday 10th November 2025
(1 day, 20 hours ago)
Lords ChamberPlanning and Infrastructure Bill 2024-26 View all Planning and Infrastructure Bill 2024-26 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 143-I Marshalled list for Third Reading - (7 Nov 2025)
The Lord Privy Seal (Baroness Smith of Basildon) (Lab)
My Lords, I have it in command from His Majesty the King and His Royal Highness the Prince of Wales to acquaint the House that they, having been informed of the purport of the Planning and Infrastructure Bill, have consented to place their interests, so far as they are affected by the Bill, at the disposal of Parliament for the purposes of the Bill.
Clause 65: Other requirements for an EDP
Amendment 1
“(8A) The Secretary of State must make regulations setting out the appropriate prioritisation, by Natural England, of the different ways of addressing any negative effect of development on a protected species or on a protected feature of a protected site when—(a) preparing an EDP, or(b) considering requesting an amendment to an EDP.”Member’s explanatory statement
This amendment would place a requirement on the Secretary of State to make regulations setting out a prioritisation of the different ways in which the negative effect of development which may be subject to an EDP may be addressed. The regulations would apply to Natural England when preparing an EDP or considering an amendment to an EDP.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, the nature restoration fund is a key part of the Government’s vision for a planning system that delivers for both nature and people. Throughout the passage of the Bill, we have worked with Peers and wider stakeholders to ensure that everyone can be confident that, by taking a different approach, we can unlock better outcomes for nature. While the NRF proposes a different approach, this will be available only where there is clear evidence to show that this strategic approach will deliver better environmental outcomes.
In creating this new approach, we have developed the overall improvement test to ensure that EDPs deliver more than would be achieved under the current system, going further than offsetting impact and supporting the restoration of sites and species, in line with our wider ambitions. While it is right that we focus on outcomes, we have been clear that Natural England will of course carefully consider not only what is achieved but how it is achieved. That is why the Bill provides Natural England with the tools it needs to take action to avoid and reduce the impact of development, as well as deliver proactive conservation measures that will materially outweigh the impact of development on the relevant environmental feature.
While we are clear that the Bill will allow Natural England to take appropriate actions to deliver on the overall improvement test, in moving to a strategic approach there is a need to articulate how the principles of the existing mitigation hierarchy are expressed through the new system. I am very grateful to the noble Baronesses, Lady Parminter and Lady Grender, for their continued work with the Government to ensure that there is clarity as to how Natural England will consider the different ways of addressing any negative effect of development, including how such actions should be prioritised when developing an EDP.
This will not affect the experience for developers, nor the speed with which EDPs can come forward, but will provide transparency as to how Natural England will undertake the preparation of an EDP and how it should prioritise the actions available to it to deliver the overall improvement test. This amendment will allow the Government to bring forward regulations setting out the appropriate prioritisation of actions taken to address the negative effect of development through an EDP.
I also wish to bring to the attention of the House a minor and technical correction to Clause 120 to remove a previous government amendment that was accidentally agreed on Report. That consequential amendment made provision for the commencement day of a substantive government amendment that would change the Secretary of State’s powers to issue holding directions to local planning authorities, which your Lordships defeated on Report. We have therefore removed the consequential amendment from the Bill.
While on my feet, I want to address a couple of further points following our debates on Report, raised in particular by the noble Lord, Lord Roborough. The first relates to the noble Lord’s request for an assurance that CPO powers under the Bill will not be misused and for clarification as to how these powers, and the purchase of land by public authorities more broadly, engage with the Crichel Down rules.
Where land acquired by or under a threat of compulsion by a non-departmental public body is surplus to requirements, there is an expectation that it will be offered back to the former owners or their successors. This expectation is established in case law and the procedure for offering land back is set out in the Crichel Down rules. This ensures that where the land is genuinely surplus following purchase by a public body, it will be made available to former owners. As we move forward with implementing the Bill, we would be happy to work with relevant stakeholders to consider how best to improve awareness and understanding of these rules.
Through the passage of the Bill, concerns have been raised on the behaviours surrounding the use of CPO powers. The Government have been clear that authorities using CPO powers should undertake engagement with all landowners to identify the impacts of their schemes, along with the mitigation measures that can be implemented. This advice was included in the latest update of the Government’s guidance on compulsory purchase, which was published in January this year.
The Government have listened carefully to the debates in the House and will continue to work with stakeholders to promote best practices to drive out bad behaviours and to ensure that the needs of landowners are fully considered. In addition, we will review the Government’s guidance and plain English booklets on compulsory purchase to ensure that they are as robust and clear as possible.
On compensation, the availability of advance payment of compensation is important to ensuring that landowners receive payment where they have been unable to reach agreement on the total amount of compensation due. Authorities are advised to ensure that prompt advance payments are made—otherwise, interest on the total compensation due will increase, resulting in the overall cost of development being higher.
The Government have been clear that the CPO reforms in the Bill do not target farmers or any other type of landowners. Nothing in the Bill changes the core principles of compulsory purchase. It must be used only where negotiations to acquire land by agreement have not succeeded and there is a compelling case in the public interest.
Finally, another area raised by the noble Lord, Lord Roborough, was in respect of the role of the private sector and landowners delivering the nature restoration fund. As set out in the recent all-Peers letter, EDPs create new opportunities that will help to grow nature service markets and support revenue diversification for farming and land management businesses. As committed to in Committee, the Government will publish guidance for Natural England regarding the role of the private sector in EDPs. This guidance will be clear that open and competitive procurement of goods and services is typically the best way to secure value for money and innovation. We will expect Natural England to preferentially adopt competitive procurement approaches for EDPs wherever possible, recognising that in some instances direct delivery will be necessary.
I hope that this provides reassurance that the NRF presents opportunities for landowners and private providers to work with Natural England to deliver high-quality nature services. I beg to move.
Lord Lansley (Con)
My Lords, I have a question about the amendment that the Minister has just moved to Clause 65. She will recall from the debates on Report that there is a whole structure in Clause 63 that is designed to allow Natural England, when making an environmental delivery plan, to focus on one environmental feature and, in relation to that feature, to focus on one negative effect of the development on it. It is structured so that the others are excluded, notwithstanding the wise insertion into that clause of material relating to water, nutrient neutrality et cetera. The new amendment, where the Secretary of State can make regulations relating to prioritisation, does not refer to the negative effect on development identified in an environmental delivery plan, but it talks about
“addressing any negative effect of development on a protected species or on a protected feature of a protected site”.
To boil that down, my question is: is it the intention that the Secretary of State’s regulations would look at only the negative effect of development on a protected feature that is identified in an EDP, or is it, at an earlier stage, setting out prioritisation in relation to what may be the negative effects of a development on a particular feature? I am afraid that it makes a significant difference when and how the prioritisation comes into effect.
While I am on my feet, I say a big thank you to the Minister and her officials for the several—in fact, many—occasions on which they have provided helpful guidance and advice on the interpretation of the Act, but I reiterate my continuing request that we be told when the powers that are relevant to the implementation of this Bill but are contained in the Levelling-up and Regeneration Act are to be commenced or, more to the point, implemented. She knows that we are waiting on many of these and that they are as significant as some of the planning measures in the Bill itself.
Lord Roborough (Con)
My Lords, I rise extremely briefly to thank the Minister for her engagement and her reassurance on the exercise of CPO powers and the engagement of the private sector.
Baroness Parminter (LD)
Gosh, that was brief. I will say a few words on behalf of our Benches. I apologise that the noble Baroness, Lady Pinnock, is stuck—there are no trains anywhere—so the House will have me, very briefly.
We have been pleased with the engagement that we have had with the Ministers throughout Report and leading up to Third Reading today, which has brought about some important changes in the Bill, including on the issue of how we plan for electric vehicles in infrastructure, and the commitment that the Minister has made to look again at spatial standards for housing so that hopefully we can ensure that more young homeless people can find accommodation in the future.
The amendment that the Minister ably introduced—I am grateful for the many meetings about it that she and colleagues had with me and other Peers on these Benches—tries to give us reassurance that the environment will have the safeguards that are needed in this new process of strategic planning. I am particularly grateful that she has brought forward regulations—not guidance, which was an issue of concern—because we need regulations to provide the necessary clarity and transparency for those of us who are concerned about the need for environmental safeguards and the appropriate way in which the negative effects of developments will be addressed.
Can the Minister make clear how the mitigation hierarchy, a very well-established environmental principle which has served this country and indeed many countries around the world so well for so long, will apply in this new approach to strategic level planning for housing? How the mitigation hierarchy in this new process of EDPs will provide the necessary safeguards for the environment?
It is my hope that it will reduce the risk of viable impact avoidance and mitigation solutions being overlooked—I say it is my hope; at this stage, that is all it can be. However, it will definitely make it much clearer for those of us concerned about the environment just how Natural England will make its decisions. What evidence will it use in order to move forward with EDPs? That will give us some reassurance that the environmental protections will be in place. If they are not, we know there will be legal challenge. That is neither in the interests of the developers or, indeed, of the environment that will suffer.
It is a compromise on the amendment I introduced on Report, and I accept that. For some, will be a compromise too far; I accept that as well. I am a Liberal Democrat and prepared to face the political reality and the evidence that this Government believe this new approach with EDPs will deliver the housebuilding that we all want, while at the same time giving us on these Benches and others some security that the environmental backstops will be in place. That is what we need and what our ever-diminishing wildlife and habitats desperately need.
Baroness Scott of Bybrook (Con)
My Lords, I thank the Minister for listening and for bringing forward Amendment number 1, which this side of the House supports. We also take note of Amendment 2.
Member’s explanatory statement
This amendment removes an amendment to the commencement clause which was made in error at Report Stage as it related to an amendment inserting a new clause which was not agreed.
Baroness Taylor of Stevenage (Lab)
My Lords, to make a few brief comments to the noble Lord, Lord Lansley, we have discussed the implementation of the issues contained in the levelling-up Act before; however, it would probably help noble Lords if I write a letter setting out when those provisions come into place—I hope that will help all noble Lords. In terms of the noble Lord’s question about the hierarchy and how it would be employed, we wanted to be very clear that the mitigation hierarchy lives in this model but has to be expressed in a different way given this move to a strategic approach. We have debated that many times before. The different levels of the hierarchy do not neatly map on to the different types of conservation measures available under an EDP, so we will use regulations to set out how those principles are expressed through the NRF. If I can comment further on the issue raised by the noble Lord, I will write to him or arrange a meeting between us.
I am very grateful to all noble Lords for all their engagement and contributions during the passage of this landmark piece of legislation, the Planning and Infrastructure Bill. It is a complex piece of legislation. I have been very grateful for the expertise around the House, which, in the best tradition of this House, has helped to make the Bill better. We have debated the Bill at length and into the early hours on many occasions over the past six months, with many thoughtful and considered contributions. I say a special thank you to my noble friends Lady Hayman of Ullock, Lord Khan of Burnley, Lord Wilson of Sedgefield—he has arrived from his horrendous train journey just in time to hear me thank him—and Lord Hendy of Richmond Hill for their steadfast support in taking this Bill forward. I know they echo my thanks to Members across this House.
I also thank my honourable friend in the other place, the Minister for Housing and Planning, who has taken a lot of time to talk to Peers about their concerns. I am grateful in particular to the Opposition Front Bench, namely the noble Baroness, Lady Scott of Bybrook, and the noble Lords, Lord Jamieson, Lord Roborough and Lord Blencathra, for their robust and constructive engagement throughout the passage of the Bill. In a similar vein, I also thank the noble Baronesses, Lady Pinnock, Lady Parminter and Lady Grender, and the noble Earl, Lord Russell, for their continued engagement and contributions during the debate.
Many noble Lords have generously lent their time and expertise, including many here around the Chamber, and I am very grateful to all of those who have contributed. While there may be disagreement on some of the issues we have debated, I know we all share the same aim of unlocking economic growth and getting this country building again. I believe that we are in broad agreement that this Bill represents a critical milestone in achieving this objective, alongside doing what we can to enhance our environment as we go on that journey.
Finally, I am very grateful to all the officials and members of the Bill team, who have worked tirelessly on this Bill behind the scenes: Holly Harper, Isabelle, Lucy, Tom, Daria, Fatima, Guy and Sam. I of course thank my brilliant private office, without whom I would not be doing anything. I also pay tribute to all the parliamentary staff, including the clerks, doorkeepers, security, Hansard and the Public Bill Office, many of whom have stayed late—sometimes very late—as we debated this Bill into the early hours.
Baroness Coffey (Con)
My Lords, I know that the Commons will consider amendments to this Bill on Thursday. I genuinely hope that the Government strongly and carefully consider the contributions noble Lords have made during this Bill, particularly on Amendment 130, put forward by the noble Baroness, Lady Willis of Summertown.
On the advice of the clerks, I speak at this point to put on record my concerns about the Clause 20(3) statement that was put in the Bill by both the Minister and former Secretary of State. It is a matter that is being considered in the courts right now—whether it is justiciable or not. As a former Secretary of State for Defra, my understanding is that it almost certainly would be. However, it turns out that the Government and House of Commons do not believe it is, but that it is a parliamentary proceeding. That is why I want to express my concerns about not only this Bill but how we consider this element in future Bills.
I do not say this lightly, because I am conscious of what the Office for Environmental Protection has said, but it is one reason why I have tabled Questions to the Senior Deputy Speaker and the Minister. With that I hope that we will see a Bill enacted in due course that will enhance the environment, rather than my concerns about what Part 3 will do to it.
Baroness Scott of Bybrook (Con)
My Lords, this has been a challenging Bill. Over eight days in Committee and five on Report, we have examined it in extraordinary detail, with early mornings and late nights. Yet, despite the effort, it still falls short of the Government’s stated ambitions. The scale of late-stage amendments, with 67 tabled on Report—and even two more today, which we supported—speaks to a Government with no clear plan to deliver the homes we need. At the last election, the Government pledged to deliver 1.5 million new homes, yet construction output continues to decline, falling by 0.3% in August following no growth at all in July. That is hardly the sign of a system ready to meet its targets.
This Bill, regrettably, does not confront the real blockages to delivery. From the outset, we on these Benches have sought to focus on substance: the practical and legal barriers that genuinely hold back new housing, such as the Hillside judgment, the absence of proportionality in planning enforcement, restrictions linked to Ramsar sites and the complexities surrounding nutrient neutrality rules. These are the real challenges confronting developers, councils and communities seeking to build, not the voices and views of local people that are being curtailed. These are the issues that matter; the measures that would build homes, infrastructure and hope for millions still locked out of home ownership.
Baroness Taylor of Stevenage (Lab)
My Lords, this Bill is very much part of our plan to deliver. We inherited a sclerotic system and we will get Britain building again, fixing the foundations so that we can deliver both the housing and infrastructure that we need and protect our environment at the same time. We have already committed to funding the planning sector, supporting the skills agenda in the construction industry, sorting out the building safety regulator—great progress is being made there already—and providing a package of support for SME builders, who definitely deserve our confidence as they have found themselves neglected and left out in the cold for the past few years. We want to get Britain building again. We all need to work together on this mission—it is something for all of us to get involved in—and I look forward to working with noble Lords from across the House.
The noble Baroness mentioned there being 67 amendments. I hope she realises that there is an irony in first accusing the Government of not listening and then accusing us of putting forward too many amendments. We were listening. Many of those amendments were technical in nature, responding to some of the devolution aspects of the Bill, but those that responded to what noble Lords have said have, I hope, received the support of the House. That said, I thank all noble Lords for all their contributions and commend the Bill to the House.