Infrastructure (Wales) Act 2024 (Consequential Amendments) Order 2025
Debate between Baroness Anderson of Stoke-on-Trent and Baroness Humphreys(5 days, 6 hours ago)
Grand CommitteeRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness in Waiting/Government Whip (Baroness Anderson of Stoke-on-Trent) (Lab)
My Lords, this order was laid before your Lordships’ House on 27 October 2025. The draft order is needed following the passage of the Senedd’s Infrastructure (Wales) Act 2024. The 2024 Act streamlines and unifies the decision-making processes for devolved infrastructure projects in Wales, including significant energy, waste, water and transport projects. It does this by creating a new consenting regime for these devolved projects, with a number of existing consents, authorisations and licences integrated into the new process. Previously, these devolved projects in Wales have been consented under various pieces of legislation, including the Electricity Act 1989 and the Transport and Works Act 1992. They will now require infrastructure consent under the Welsh Government’s 2024 Act.
The Welsh Government will commence the Infrastructure (Wales) Act 2024 and bring the new consenting process into force next week, on 15 December 2025. This draft order makes consequential amendments to UK legislation that falls outside the legislative competence of the Senedd. The amendments are necessary to ensure that the Act can take effect as intended and are therefore needed in advance of the new process coming into force. As the 2024 Act establishes a new consenting arrangement in Wales, it is not reflected in UK legislation in the same way that existing processes are. This order updates the relevant UK Acts to take account of the establishment of infrastructure consent in Wales by ensuring that it is treated in a way that is consistent with those existing consenting arrangements.
First, this order amends the Nuclear Installations Act 1965. Under the 1965 Act, applicants for a nuclear site licence may be directed to notify relevant public authorities about their application. This power of direction, however, does not apply to applications for nuclear generating stations, which require consent under the Electricity Act 1989. This is because the 1989 Act sets out its own requirements for consultation with public authorities. In line with this, Article 2 of this order ensures that the power of direction in the Nuclear Installations Act 1965 does not apply to projects which require infrastructure consent under the Infrastructure (Wales) Act 2024. This is because the 2024 Act similarly places its own requirements on applicants to consult with public authorities.
Secondly, this order amends the Planning (Hazardous Substances) Act 1990. When granting infrastructure consent under the 2024 Act in circumstances where hazardous substances consent would also be required, the Welsh Ministers can deem hazardous substances consent to be granted. This enables hazardous substances consent to be granted without a separate application being needed. Article 3 of this order amends the 1990 Act to create a requirement for the Health and Safety Executive to be consulted before hazardous substances consent can be deemed to be granted by the Welsh Ministers as part of an application for infrastructure consent. This ensures that the HSE can consider the risks that the hazardous substance may present to people nearby and provide science-based advice to the Welsh Ministers. This replicates the process for other consenting regimes, including under the Electricity Act 1989, which require consultation with the Health and Safety Executive in these circumstances.
This order amends Section 130 of the Finance Act 2013, which relates to the annual tax on enveloped dwellings. This tax is payable on properties that are within the UK, classed as a dwelling and owned fully or partly by a company or a collective investment scheme. Where a building is being converted for non-residential use and the conversion requires infrastructure consent under the new Welsh processes, Article 4 of this order ensures that the building will be classed as a dwelling for the purposes of the tax until consent required for the modifications is granted. This is in line with the process for conversions to buildings which require planning permission or development consent under the Planning Act 2008.
I welcome the Welsh Government’s infrastructure Act and the new streamlined consenting arrangements for devolved infrastructure in Wales. This draft order makes the necessary consequential amendments to reserved legislation, helping to ensure that the Welsh Government’s Act can take effect as intended. I beg to move.
Baroness Humphreys (LD)
My Lords, I welcome this statutory instrument, which provides the necessary consequential amendments following the enactment of the Infrastructure (Wales) Act 2024. It represents a sensible and measured step to ensure that the new Welsh infrastructure consent system is aligned with existing legislation across the United Kingdom. While this order is by its nature technical, it none the less reflects an important moment in the ongoing evolution of Wales’s governance arrangements. I therefore ask the Minister whether she views this legislation as an expression of confidence in Wales’s ability to manage and deliver major infrastructure projects and, more broadly, whether she considers it indicative of a direction of travel towards further devolution.
The Minister will know, as many of us do, that there is growing concern in Wales that the party which proudly introduced devolution in 1999 now appears resistant even to discussions about extending those powers or devolving additional services. In the last year alone, Members of both Houses have made the case for the devolution of policing, justice, youth justice and the Crown Estate, all to no avail. However, this order shows that effective co-operation between the Welsh and UK Governments is possible and productive. Can the Minister clarify whether she sees this as part of a broader commitment to strengthen that partnership and recognise Wales’s capacity to take greater responsibility for its own affairs?
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I thank the Minister for introducing this order to the Committee. The order makes minor and technical changes to UK legislation, recognising the provisions in the Infrastructure (Wales) Act 2024. That Act, passed by the Senedd in June 2024, simplified the consenting process for infrastructure projects in Wales. As the Minister outlined, energy, electricity, transport, water and waste projects can now proceed through a single approvals process monitored and applied by the Welsh Government. The effect of this order is to ensure that existing UK legislation aligns with the Act. This includes amendments to the Nuclear Installations Act 1965, the Planning (Hazardous Substances) Act 1990 and the Finance Act 2013. These changes are largely consequential, but they are necessary to make the provisions of the 2024 Act fully operational.
While we accept the technical purpose of this instrument, a number of questions arise. I am very happy to receive any answers in writing if necessary. First, are the agencies in Wales sufficiently resourced to handle the additional applications and responsibilities arising from these powers? Secondly, while the processes are broadly similar to current UK procedures, how will the Government ensure that assessments in Wales meet the same standards and rigour as those elsewhere in the UK? Thirdly, what types of projects are most likely to be affected by this new consenting regime over the next five years? I note the impact on the Nuclear Installations Act 1965, as the Minister would expect me to. Finally, do the Government anticipate this instrument acting as a gateway to further devolution of infrastructure powers to Wales? If so, how will safeguards be maintained to protect the public interest and ensure safety in vital sectors?
Third-party commentators have welcomed the aim of simplifying infrastructure approvals. It is hoped that this will encourage sustainable investment and support Wales in reaching its net-zero targets. That said, clarity and consistency in guidance will be essential if investors, the public and decision-makers are to have confidence in the new regime. Subject to the Minister’s assurances on the questions I have raised, we recognise the technical and consequential purpose of this order and support it.
Prime Minister and First Minister of Wales Meetings
Debate between Baroness Anderson of Stoke-on-Trent and Baroness Humphreys
Baroness Anderson of Stoke-on-Trent (Lab)
The noble Lord makes a very interesting point—I wonder whether he made it to his Conservative colleagues on Great Yarmouth Borough Council, who were the first to introduce a tourism tax. The tourism tax brings in £33 million a year. There are ongoing conversations, but this is devolution in action, and it is a matter for the Welsh Government.
Baroness Humphreys (LD)
My Lords:
“In this new generation, it must be the people and communities of Wales who profit from our energy gifts. We need a different approach to the one which just hands the power and resources to the Crown Estate over which we have no say”.
Those are not my words but those said yesterday by the Welsh Labour First Minister, echoing the sentiments of some in this House. Has she used similar words in the discussions with the Prime Minister, and was he listening—or are we seeing the building of a new red wall in the Bristol Channel, one dividing Welsh Labour from its UK Big Brother?
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, anyone would think that there might be an election within the next 12 months.
Council of the Nations and Regions
Debate between Baroness Anderson of Stoke-on-Trent and Baroness Humphreys
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, the Council of the Nations and Regions is one vehicle where the Heads of Government meet, but we have regular conversations with all First Ministers, especially the First Minister of Wales. That is why we announced the largest-ever Budget settlement for Wales under devolution, including a £1.4 billion increase because of the Barnett formula. How it is spent is now a matter for the Welsh Government.
Baroness Humphreys (LD)
My Lords, I welcome the formation of the Council of the Nations and Regions and, particularly, the forum it provides for the Prime Minister to meet the First Ministers of the devolved nations and the mayors of combined authorities. I was pleased to read the brief minutes of the first meeting on the government website. The Labour manifesto committed to set out a new memorandum of understanding outlining how the nations would work together to strengthen the Sewel convention. Has that been done? If not, what progress has been made on it?
Baroness Anderson of Stoke-on-Trent (Lab)
I thank the noble Baroness for her question. Work is under way. This is about how devolution works, and therefore there will not be one person who announces that. We are working with each devolved authority to make sure that any changes and updates to the MoU on the Sewel convention work for all devolved Governments and will report in due course.
Wales
Debate between Baroness Anderson of Stoke-on-Trent and Baroness Humphreys
Baroness Anderson of Stoke-on-Trent (Lab)
I thank my noble friend for all the work that she does in support of the blue light services, and as a commissioner. The reality is that last month’s Budget was an extraordinary settlement for the people of Wales—£21 billion, and £1.7 billion in additional funding as part of the Barnett formula. That shows the difference there can be when you have a Labour Government at the Senedd and a Labour Government here.
Baroness Humphreys (LD)
I too express my appreciation for the work of the emergency services, and the search and rescue and mountain rescue teams from other parts of Wales who helped in the Conwy valley over the weekend.
When the Welsh Government’s commission on the constitutional future of Wales reported in February, it concluded that each of the options—enhanced devolution, a federal structure, and independence—could be a valuable way forward. We on these Benches would argue that the federal structure, giving each of our four nations equal powers, would strengthen the position of Wales, Scotland and Northern Ireland in the UK most effectively. Is it not time to deal with the English problem: devolve powers properly to the regions of England and create a sensible federal structure that benefits all four nations?
Baroness Anderson of Stoke-on-Trent (Lab)
I thank the noble Baroness for her question regarding England—while we are talking about Wales. There is a Question tomorrow on the role of the Council of the Nations and Regions and how devolution in action can work across the country, and I look forward to discussing that in more detail with her then.