Planning and Infrastructure Bill

Debate between Baroness Scott of Bybrook and Earl Russell

Report stage
Wednesday 22nd October 2025 Lords Chamber

[Earl Russell (LD)]

My Lords, I rise briefly to respond to the amendment in the name of the noble Baroness, Lady Coffey. It was moved in Committee by the noble Lord, Lord Gascoigne. It aims to remove the size and complexity tests currently required for awarding a water infrastructure project licence. While this is a technical amendment, it would have significant implications.

Under existing regulations, a water infrastructure project licence is awarded only if the project is considered large or complex enough to potentially threaten the incumbent water undertaker’s ability to deliver services. The test involves assessing factors like projected costs, risk profile, delivery complexity and the water company’s competencies, among others, to determine whether specifying the project to an extended provider would result in better value for money and service stability. The amendment’s goal is clear: it is to remove this test.

I have listened to what the noble Baroness said. It is argued that the amendment would allow smaller or less complex projects potentially to be outsourced or treated as specified infrastructure projects, SIPs, and offer better economic efficiency. While we recognise that this could lead to broader applications of the project licences and potentially facilitate more third-party infrastructure projects in the water sector—we share this ambition to accelerate infrastructure delivery—we are cautious on this amendment, and I follow the line that we took in Committee. The current regulatory framework, which includes a size and complexity threshold, exists as a crucial safeguard. Ofwat’s regulations are intended, and the test ensures it, for ambitious projects, if managed by an incumbent company, not to threaten the water company’s fundamental services obligations to its customers.

Given the widely acknowledged fragility of the water sector more generally and the broken infrastructure that has led to substantial water wastage, we must think carefully before rushing to add to this. Instead of risking unintended consequences through a quick legislative fix, we prefer a more robust path that could be considered by the Government co-funding models, for example, similar to those used in the nuclear sector, if crucial projects exceed what companies can realistically deliver.

It is also essential to take note of the Government’s concerns raised in Committee regarding the amendment. They confirmed that they actively resisted this amendment, certainly in Committee. They have already made a commitment to review the specified infrastructure projects, SIPR, framework. Our understanding is that Defra intends to amend it to help major water companies to proceed more quickly and deliver better value for bill payers. The Government stated their concerns that removing the size complexity threshold now would pre-empt that planned review process. They emphasised the importance of ensuring that any changes are properly informed by engagement with regulators and industry to create a regime that remains targeted and proportionate to the sector’s diversity needs. The Minister assured the Committee that this essential review, which follows the publication of the Cunliffe review on water industry modernisation, will be completed in this calendar year.

For those reasons, while we welcome the spirit of Amendment 58A, we believe that the responsible course of action is to allow the Government to complete their committed to and planned regulatory review, so we are unable to support this amendment.

[Baroness Scott of Bybrook (Con)]

My Lords, I support Amendment 58A, tabled in the name of my noble friend Lady Coffey. As we have heard, under the current framework, only projects deemed sufficiently large or complex can be considered for a separate infrastructure licence. This threshold may have made sense at the time that the regulations were introduced, but it now risks being a barrier to innovation and investment in the sector, which is already under increased strain. By removing this test, the amendment would allow projects to be assessed on their value for money alone—a clearer, more practical standard. It would not lower the bar for scrutiny but rather broaden the scope for alternative delivery models, where they can be demonstrated to give clear public benefit.

Given the ongoing challenges around water security, pollution and climate resilience, we should be enabling a wider range of solutions and not limiting them to outdated regulatory constraints. This is a modest and targeted amendment that would give Ofwat and the relevant authorities greater flexibility to support efficient investment in our water infrastructure. We agree with its intent, we support it, and we hope that the Government will think again.

Planning and Infrastructure Bill

Debate between Baroness Scott of Bybrook and Earl Russell

Committee stage
Tuesday 9th September 2025 Lords Chamber

[Earl Russell (LD)]

My Lords, I will briefly speak broadly in support of this amendment tabled by the noble Lord, Lord Murray of Blidworth. The amendment would embed the promotion and use of mediation and alternative dispute resolution in our planning system. I inform the Committee that I have been an elected local councillor sitting on a planning committee and worked for a number of years as a community mediator, helping to run a community mediation service specialising in neighbour disputes.

For too long, our approach to resolving planning disputes has been overly adversarial, leading to court battles, mounting costs, lengthy delays and frustrated developers, communities and local authorities. Too much of our planning process revolves around zero-sum games—talking to people, doing things to them and resorting to formal legal processes when things go wrong, as they inevitably do. The amendment is an invitation to do things better, for the benefit of all people and the interests of better governance and speeding up the planning process.

Mediation is no longer an untrusted novelty. It is widely used in all sectors of society. Its benefits are well established in many sectors and many areas of everyday life. It is used fairly infrequently, but it is used in the planning process. Properly structured and supported mediation interventions and processes can resolve specific contentious issues at an early stage, reducing hostility and helping to build trust, to foster positive relationships in a way that litigation is not capable of doing. When used, it produces high satisfaction, more creative solutions and results that last beyond the immediate dispute. As opposed to legal processes which are imposed from on high, mediation resolutions are designed and tailored by the parties themselves to fix exactly their individual needs. These outcomes can be transformative and, because the parties design them themselves, they tend to work more for their specific needs, meaning that they are more committed to the outcomes that they have helped to create.

Mediation will obviously not work in all cases, but it can work in some. What is certain is that, if mediation is not widely available, not promoted and not explored, it will not work in the planning processes. In some areas I do disagree with the noble Lord. My view is that mediation should be wholly a voluntary process for both parties. Every dispute that is kept out of lengthy appeals or court hearings is a saving to the public purse, a saving to local councils and a help with the Government’s stated aim of speeding up the planning processes. Studies have found that as many as 73% of mediated cases avoided further appeals, cut expenses and helped to reduce times.

It is not just about saving money. This is about making the system more accessible, making it work better for the people involved and making it more inclusive. Mediation enables genuine dialogue and empowers communities to participate meaningfully in the decision-making process. It is especially effective in complex cases—major developments, local plans, Section 106 negotiation and compulsory purchase disputes—where misunderstandings and mistrust can easily escalate into enshrined conflict. Mediation offers confidentiality, tailored solutions and better governance. Some worry about the cost, but this could be overcome and lead to savings. I call for the Government to look at this and to take it seriously. However, for this system to work it would need some dedicated funding and support from government.

I conclude with a couple of questions. We know that we have some mediation processes within planning, but they are rarely used and not very well embedded. Have the Government done any assessment on the use of mediation to date? Has it helped to speed up processes? Has it resulted in better outcomes? Have those outcomes lasted longer than legal ones? If the Government are not going to support this amendment today, can they consider doing a larger-scale trial of the use of mediation within the planning process? Then the outcomes can be properly monitored and the Government can make a fair assessment of the use of mediation more wholly within the planning process.

[Baroness Scott of Bybrook (Con)]

My Lords, I wish to speak briefly on Amendment 133, tabled by my noble friend Lord Murray of Blidworth. We welcome the opportunity the amendment provides to hear more from the Government on how they intend to reduce the risk of lengthy and expensive litigation within the planning process. As many in the Committee will know, such disputes can cause considerable delays, uncertainty for local communities, and significant costs for both the applicants and local authorities. It is therefore important to understand what practical steps the Government are considering to streamline proceedings while ensuring that proper scrutiny and accountability remain in place. I look forward to the Minister’s reply.