Planning and Infrastructure Bill

Lord Inglewood Excerpts

Committee stage
Wednesday 17th September 2025 Lords Chamber

[Lord Lucas (Con)]

My Lords, where it is troubling serious agriculture, yes, we should enforce.

[Lord Inglewood (CB)]

My Lords, on the grounds of “it takes one to know one”, it is worth noting that this is a debate that we are unlikely to have in the next Session of Parliament—old-style hereditary Peers’ contribution to the governance of this country.

I will talk briefly about invasive species. I declare an interest as a landowner in Cumbria. It has always seemed to me that the real problem in dealing with the ones that are pests, of which we can all think of a number—Himalayan balsam, Japanese knotweed and so on—is that those of us who want to see them rolled back have never managed to capture the hearts and minds of the country. It is no good just doing it yourself, as I think the noble Lord, Lord Lucas, said. I suggest to the Government that they should think in terms of trying to enrol the nation on this particular crusade.

I say this because my contributions towards our local red squirrel group may be endangered, although I hope they will not be, by reduction in support for my agricultural enterprises, because there is less money going round. There might be ways of incentivising those involved in land management, possibly with a little financial contribution as part of a wider package, to make some of these things happen. I will leave it at that, other than to say that if anybody wants to see an extreme example of a reservoir with a whole group of invasive species in one place, they should travel by train from Preston to Manchester and look out the window. They all seem to be there on the verge of the railway line.

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[Lord Framlingham (Con)]

My Lords, I wish to make a brief intervention. In terms of infrastructure, nothing has had a more devastating effect on the countryside and nature than HS2—for no purpose at all, which is very sad. The point I wish to put to the Minister relates to compulsory purchase orders. I do not know whether she is aware that the farmers have been paid only 90% of the value of the farmland taken for HS2, which seems grotesquely unfair. I wonder whether she would take that on board and perhaps comment on it or think about it.

[Lord Inglewood (CB)]

My Lords, I rise briefly to support those who have argued that the levy must be spent exclusively on nature. That is what it is collected for. The Government, who administer these things more generally, have enormous resources at their disposal and they are ordaining that this is the way things will be done. As part of that, they should foot the bill for their own activities.

If I may, I will also turn briefly to Amendment 309, tabled by the noble Lord, Lord Gascoigne. I have great sympathy with it, but it might be better to include a spatial measure, rather than a local authority boundary measure, behind the approach we adopt. If we have a development very close to a local authority boundary, it may be that the right place to spend the money is just over the boundary. Equally, I have suddenly discovered that I live in the county of Westmorland, when previously I had always lived in Cumberland. The distance from Alston to Barrow-in-Furness, which are in the same county, is over 100 miles, and I think that would throw up problems.

There is also a deeper, fundamental problem, to which I do not know the answer. Part of the emotional element of the levy is that the money is to be spent on nature and environmental improvements quite close by—that is the psychology of it. As the noble Baroness, Lady Coffey, said, in cases such as the Channel Tunnel, that is not really possible. Speaking as someone from the north of England, where we have plenty of projects which could benefit from money of this kind, if all the money raised is in the south of England and cannot be spent in the north, you would find a very considerable feeling of discontent. A lot of the problems, once you get away from the immediate locality of any particular project, may well be, at the most extreme, quite a long way away.

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[Lord Fuller (Con)]

My Lords, I am greatly concerned that the Bill potentially freezes out the role for private sector providers, thus stopping the flow of investment into nature. That said, I was mildly reassured by the letter that came this morning. Nevertheless, I am anxious that the proposition is that Natural England will become a monopoly consolidator and provider of mitigation solutions—with the dead hand of the state. This Bill should define how private operators can work alongside Natural England to address the market for mitigation.

In an earlier grouping, I explained the distinction between permitting and licensing. In my view, licensing is the way to go for the EDPs, not least because it will prevent the derivatives—secondary markets that enrich speculators at the expense of delivering the outcome. We cannot afford to create a new milk quota disaster with the creation of a collateralised asset class that has everything to do with speculation and nothing to do with nature recovery. That is not an argument against private involvement; it is an argument for channelling and regulating what is a fast-developing industry.

I support Amendments 258 and 268 because they seek to put in place how we deal with private industry and how Natural England is required to engage with it. This Bill should set the terms of trade. How will those 80-year-tail liabilities be secured? What step-in rights will there be in the event of the provider going bankrupt? Will the obligations be characterised as in Section 106 or as a land charge at the Land Registry? The Section 106 route has criminal and prosecution routes in the event of non-compliance, but a land charge is an unenforceable civil matter subject to litigation. How we deal with these will be very important and needs to be in the Bill.

I spoke about these tail liabilities. I have some experience with this, as I declared earlier. I am a director of Norfolk Environmental Credits Ltd, the device through which the local councils in Norfolk manage environmental credits. We are subject to international accounting standards. We need to take into account our covenant strength. I do not believe that this has been thought through at all. We made about £5 million-worth of sales of credits to local developers, but the balance sheet value was nil because we had to discount that income over an 80-year tail. I see my noble friend Lord Mackinlay nodding. He is a tax man and understands these things.

The interplay between the P&L and the balance sheet is something that the Bill has not contemplated at all—and it must. Unless we include sensible benchmarking accounting standards to value the upfront contributions against those tail liabilities, we will never give confidence and clarity so that schemes can be consistently compared. None of this essential detail is contemplated by the Bill but it should be.

This is before we get to private industry having a role in the pricing, and the heroic assumption that Natural England, as is anticipated, will be able to deliver mitigation more efficiently than a competitive, healthy private sector. Given the monopolistic nature of the state-owned mechanism for charging, and the speed at which the large bureaucratic organisations operate, this completely unqualified assumption seems tenuous. There are obvious conflicts of interest and susceptibility to legal challenges through those conflicts. How is Natural England going to kitemark private proposals? What protections would private operators have against predatory pricing or the loading of legal contractor inspection costs on to innovative solutions, with the only opportunity for these private operators to appeal being against the organisation that is trying to eat their lunch?

We need the innovation of private providers so that we avoid muddled thinking. I am delighted to see the noble Lord, Lord Hunt of Kings Heath, in his place. He characterises as eco-zealots those who order the use of bat bridges, the eye-wateringly expensive bat tunnels—each of which was a colossal waste of money —or the sloppiness of the designation of land at Ebbsfleet as unfavourable when it was not unfavourable.

We need a streamlined process where developers can work with landowners to propose and have certified good schemes delivered in local markets at sensible prices—especially now that we contemplate that hundreds of these EDPs may be produced. While Natural England is focused on its own proposals, we need to give comfort to private operators that their applications will be dealt with promptly rather than them submitting the ideas and not having them taken seriously by Natural England. That is no way to proceed. We need to establish contract certainty, the legal basis and the enforceability of these projects, with the assurance that the mitigations will be delivered over the liability period.

Failure looks like packaging and collateralisation of these schemes into another subprime crisis. We must guard against that. The private sector has a role and can and should work in tandem with Natural England. But all this counts for nothing unless the terms of trade are set.

I have other things to say but, given the time, I will stop there. The Bill needs to state explicitly that the private sector has a role to play. But Natural England should have a statutory duty to actively assist competition in this space in a prompt and timely manner, even if it is at the expense of its own proposals.

[Lord Inglewood (CB)]

My Lords, as I listened to this debate, I thought that everybody was talking about it from the perspective of the person who does the work. The prime focus of what we are discussing should be the best outcome for nature. The most choice available to help nature is the route we should go down. Therefore, we should not exclude any possibility of all kinds of commercial arrangements that may surround this, some of which, particularly given the points drawn to our attention by the noble Lord, Lord Fuller, we may not yet even have thought of. We should keep every option open to ensure that the outcome for nature is ultimately the prime consideration.

[Lord Fuller (Con)]

I thank the noble Lord. He makes a point that I missed when I turned a page in my notes. Essentially, we are creating financial instruments with muddy wellingtons attached. We need to think about that balance as we contemplate how the Bill will work in practice, with those 80-year requirements to keep and maintain these projects contemplated by the EDP. It needs a change of thought.

Certainly, international accounting standards will be at the front of our mind. This is the sort of question that actuaries at life insurance companies are employed to handle. They know that they have a liability and what sum of money is needed up front to deal with it. That is not contemplated at all in Clause 59. It needs to be. That is the point I am trying to make. The state cannot do it itself—it needs a flow of private money coming into this space to benefit nature, but one that has its feet on the ground and where the numbers add up.