Planning and Infrastructure Bill

Lord Gascoigne Excerpts

Committee stage
Thursday 24th July 2025 Lords Chamber

Moved by

[Lord Gascoigne]

59: After Clause 47, insert the following new Clause—
“Water infrastructure project licencesOmit sub-paragraph (a) of regulation 4(3) of the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (S.I. 2013/1582).”Member’s explanatory statement
This new clause would amend the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 to remove the “size and complexity” test for the awarding of a licence for a water infrastructure project, meaning that projects would be considered on value for money alone.

--- Later in debate ---

[Lord Gascoigne (Con)]

My Lords, the Minister said in the last group that he was running out of energy, so I reassure him that he is not hallucinating: I am not my noble friend Lady Coffey. However, I am moving Amendment 59 on her behalf. I refer noble Lords to my interests on the register and declare that I am on the board of the Conservative Environment Network—although I speak completely independently of it.

I am sure that whenever I stand to speak, many of my colleagues on this side and on the Front Bench think that what I have to say is full of excrement. I am pleased to satisfy them today because when it comes to sewerage, it is not often that it can be associated with good news. But Tideway is the good news story in the UK. It was officially opened by His Majesty the King earlier this year, and London’s super-sewer is now fully connected and has, to date, captured over 7 million tonnes of sewage, which would historically have spilled into the River Thames. That is enough storm sewage to fill Wembley one and a half times. While I was waiting today, I was trying to figure out how many times it would fill this Chamber, but I will leave that to brainier folks than I.

This super-sewer is a marvel of modern engineering. It spans the length of London from Acton in the west right through to the Beckton sewage treatment works in the east, passing under iconic London landmarks as it goes. Having taken many years to build, it will continue to serve Londoners for generations to come, helping to protect our precious natural environment from sewage at the same time.

However, ambitious infrastructure projects such as Tideway do not come cheap. That is why, in 2013, the specified infrastructure projects regulations were created. I do not want to go too much into the weeds of this but these regulations made it possible for the Tideway project to be paid for using a novel financing mechanism. This reduced the political and financial risk for Tideway’s investors, reduced the cost of capital, and spread the costs over multiple generations of Londoners who will benefit from that infrastructure. The incurred debts are repaid over the long term by Thames Water bill payers, much like a mortgage.

Before work started, it was estimated that the project would cost customers between £20 and £25 per year, and that was in 2014-15 prices. The cost has remained well within that range since, which in itself is a remarkable achievement. As I said at the beginning of my remarks, this makes Tideway a good news story.

--- Later in debate ---

[Lord Hendy of Richmond Hill (Lab)]

My Lords, it was of course a pleasure to hear the noble Lord, Lord Gascoigne, introduce these amendments. He referred to the success of the Thames Tideway project, and there were a number of references to who did it. The person in charge of that project is Andy Mitchell, who has done an extraordinarily good job, so it is quite right that his name should be referred to next to the project itself.

The amendments seek to insert new clauses specific to water infrastructure. Amendment 59 tabled by the noble Baroness, Lady Coffey, seeks to remove the size and complexity test from the specified infrastructure projects regulations, known as SIPR. The Government are resisting this amendment because we have already committed to reviewing the SIPR framework. That was set out in the Chancellor’s New Approach to Ensure Regulators and Regulation Support Growth policy paper, published in March 2025, which confirmed that Defra will amend the SIPR framework to help major water projects proceed more quickly and deliver better value for bill payers. It is important that the planned review goes ahead so that any changes are properly informed by engagement with regulators and industry. Removing the size and complexity threshold now would pre-empt that process and risk creating a regime that does not reflect the sector’s diverse needs or long-term priorities.

We will continue to work closely with stakeholders to ensure that the specified infrastructure projects regime remains targeted and proportionate and delivers value for customers. The noble Lord, Lord Jamieson, asked by when this review will be completed, and I can assure him that it will be completed in this calendar year. I therefore thank the noble Baroness, Lady Coffey, for tabling the amendment, but I kindly ask the noble Lord, Lord Gascoigne, to withdraw it on her behalf.

Amendment 61 tabled by the noble Lord, Lord Lucas, seeks to introduce enabling regulations for milestones and enforcement for various delivery phases of all water undertakers’ reservoir proposals. The Government have already taken urgent steps to improve water security. This involves action to improve water efficiency and to reduce water company leaks alongside investing in new supply infrastructure, including new reservoirs and water transfers. We are taking action to speed up the planning process for new reservoirs. For example, we recently revised the National Policy Statement for Water Resources Infrastructure to make clear that the need for the proposed reservoirs in the water companies’ statutory management plans has been demonstrated.

Ofwat’s price review final settlement in December 2024 for the water sector has also unlocked record investment, around £104 billion of spending by water companies between 2025 and 2030. This includes £8 billion of investment to enhance water supply and manage demand, such as enabling the development of nine new reservoirs. As part of that, leakages will reduce by 17%. We have taken steps with Ofwat to improve water company oversight by increasing reporting and assurance requirements on companies’ delivery, improving protection for customers from companies failing to deliver the improvements by returning the funding to customers, and encouraging companies to deliver on time by applying time-based incentives.

The Government, as the Committee has already heard, also commissioned Sir Jon Cunliffe to lead the Independent Water Commission, to which the noble Lord, Lord Lansley, referred. It is a once-in-a-generation opportunity to modernise the water industry and deliver resilient water supplies. The Government are grateful to Sir Jon and the commission for their work and will carefully consider their findings and recommendations, including those that the noble Lord, Lord Lansley, referred to.

We will provide a full government response to the commission’s report in the autumn, setting out our priorities and timelines. The Government will introduce root and branch reform to revolutionise the water industry. Working in partnership with water companies, investors and communities, the Government will introduce a new water reform Bill to modernise the entire system so that it is fit for decades to come. I hope that the noble Lord, Lord Lucas, is therefore reassured that the proposed new clause is unnecessary, and I kindly ask him not to move his amendment.

Amendment 62, introduced by the noble Lord, Lord Gascoigne, on behalf of the noble Baroness, Lady McIntosh, is not necessary. It is a probing amendment to encourage the consideration of measures to facilitate the construction of small reservoirs. The Government are already encouraging building both small and large reservoirs. That improves resilience to climate change, sustains food production and water security and supports economic growth.

Reservoir safety legislation does not prevent new reservoirs being constructed but does ensure that structures are well built and maintained. The streamlining of the planning system will make them quicker and easier to build in the future. However, it is important that new reservoirs do not pose flood risks for local communities by being built in the wrong locations and that existing reservoir dams are structurally safe.

Reservoirs that store water above ground level pose risks to life, property, businesses and the environment, and could cause economic disruption to local communities if the dam structure were to fail. These risks are managed through reservoir safety regulations. Reservoirs that store water below ground level do not pose the same risks and so are out of scope of the reservoir safety regulations. Current advice to farmers and landowners who wish to build reservoirs is to consider options for non-raised water storage. The Government intend to consult in the autumn on proposals to improve reservoir safety regulations, including making the requirements more tailored to the level of hazard posed and bringing some smaller raised reservoirs in scope. These proposals do not alter the need for more reservoirs, nor prevent new ones being built. They are to ensure that reservoir dams are structurally sound and that flood risks for communities down stream are effectively managed.

I appreciate the interests of noble Lords in tabling these amendments. However, for the reasons I have set out, I kindly ask the noble Lord to withdraw the amendment.

[Lord Gascoigne (Con)]

My Lords, I am conscious that the hour is late and already the two Chief Whips are conspiring to tell us that we need to rattle through.

[Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)]

Wind up!

[Lord Gascoigne (Con)]

Exactly—that is just what my Chief Whip says.

I am grateful to the Minister and everyone who has participated. I obviously cannot do justice to what my noble friend Lady Coffey would say on Amendment 59 in this group, but it has been a good discussion, albeit short.

I think it was my noble friend Lord Lucas who made the correct observation that this is not just about water infrastructure in itself. It is about the importance of it linking into housing and the need to build more homes. My noble friend Lord Lansley made a very good point about the Cunliffe review as a whole and the need to have a broader discussion about what was said in that review. I am sure that will happen.

I am conscious that we are heading into Recess. I am grateful for the many brainy points that my noble friend makes about the issues within the regulations and this legislation. For now, on behalf of my noble friend, I beg leave to withdraw this amendment.

Amendment 59 withdrawn.

Moved by

[Lord Gascoigne]

60: After Clause 47, insert the following new Clause—
“Guidance on planting along highways(1) The Secretary of State must, within six months of the day on which this Act is passed, issue guidance for developers, local planning authorities and other relevant parties on the planting of trees, shrubs, plants or grass alongside highways constructed as part of—(a) any new transport infrastructure;(b) any other development for which consent has been granted.(2) Guidance issued under this section must outline how licence conditions under section 142(5) of the Highways Act 1980 (licence to plant trees, shrubs, etc., in a highway) are to be applied and complied with in a way which—(a) is not unreasonably burdensome on applicants for licences, and(b) does not prevent or discourage the planting of trees, shrubs, plants or grass,and must provide model licence conditions, standard designs, and planting palettes.”Member's explanatory statement
This new Clause would require the Secretary of State to publish guidance on the planting of trees and other plants alongside new highways.

--- Later in debate ---

[Lord Gascoigne (Con)]

My Lords, yet again I have the two Chief Whips staring at me. I will be brief, but also, I hope, very cheery—this will be a cheery discussion.

--- Later in debate ---

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord, Lord Gascoigne, for tabling this amendment. The Chief Whip on our side is no longer present, but I can hear him saying, “Get on with it”, so I shall.

I thank all noble Lords who have contributed to this discussion. The Government agree that planting schemes can mitigate the environmental impacts of new highways and make existing ones more pleasant. However, this amendment is not necessary as there is already relevant guidance on this matter, produced by a number of relevant stakeholders, that local highway authorities and others should have regard to. This includes the well-managed highways infrastructure code of practice, which provides guidance for local authorities on managing highway networks; the Design Manual for Roads and Bridges; the Manual for Streets; and local authorities’ own street adoption and street works guidance documents. Some local authorities go further and encourage local residents to look after street trees—including my own. When I am not in the Chamber until late at night, I am nurturing a small but growing tree in my locality by taking it a bucket of water every so often, and it will be a pleasure to do so this evening when we finish.

Planning applications for highway development under the Town and Country Planning Act 1990 are already subject to mandatory biodiversity net gain, and we are currently consulting on the application of biodiversity net gain for nationally significant infrastructure projects, with the aim of mitigating any environmental impact. Requiring additional or new guidance would be an administrative burden and could merely duplicate the guidance that already exists, so I kindly ask the noble Lord, Lord Gascoigne, to withdraw his amendment.

[Lord Gascoigne (Con)]

I am grateful to the Minister and everyone who participated in the debate; it started on a high then slowly descended. I have said many times in this Chamber that I massively respect the Minister, but I think he mentioned about five different sets of rules or guidance, and that is precisely why there should be some clear documentation that sets out the different issues and how to tackle them.

I am grateful to my own Back Benches, the Greens and the Lib Dems for their comments and support. The noble Baroness, Lady Bennett, raised the perfect point that this is also about wildlife, which is often accused or neglected, and the fact that we have the 2030 targets, which we should aim for and this can play a part in that.

I am conscious of the time, but there are various things I could say to my dear and good noble friend Lord Moylan. I will take him up on the offer to engage with him. I will make three very quick points. First, while trees do not improve your driving, it is a fact that having trees on streets slows down drivers in urban areas; someone made that observation in mainland Europe, where, sadly, they have more trees than we do. It therefore improves driving, even if it does not improve the quality of the driver.

Secondly, my noble friend mentioned the issues with his mulberry bushes. That is exactly why there should be guidance on new development—that is its purpose.

Finally, I was googling frantically what sort of tree my noble friend Lord Moylan could be. I cannot quite put my finger on it, but one that I found was the great white oak. I am told that it is big and majestic in many ways, but it is also quite stubborn. I say respectfully to my noble friend: please, let us have this journey; I will come and help him clean up his mulberry bush.

For now, I beg leave to withdraw the amendment.

Amendment 60 withdrawn.