Planning and Infrastructure Bill

Lord Khan of Burnley Excerpts

Committee stage
Monday 1st September 2025 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, this group of amendments relates to the development and implementation of local area energy plans. The proposals raise important questions about the role of local authorities in our transition to a decarbonised, secure and efficient energy system. We have heard some thoughtful contributions about the tensions between local and central government, but also of the enormous potential when the right balance can be struck between the two.

Let me begin with Amendment 90, in the name of the noble Earl, Lord Russell, which would require all local authorities to prepare and publish local area energy plans. These plans would outline current and future energy needs and the decarbonisation pathways to meet them. The underlying intent here is one we can all recognise. The energy transition cannot be delivered only centrally; local authorities must have a clear understanding of their energy demands and the means to meet them sustainably. The noble Earl, Lord Russell, made a number of good points, reinforced by the noble Lord, Lord Hunt of Kings Heath, on which we might all agree in principle.

However, while we acknowledge the ambition behind this amendment, we would caution against placing an additional statutory duty on all local authorities, particularly at a time when many face stretched resources and competing priorities. A blanket requirement risks creating a burden of compliance that may prove challenging for councils already struggling with core service delivery. We must ensure that our expectations of local government are realistic, proportionate and backed with adequate support.

Amendment 177, tabled by the noble Lord, Lord Ravensdale, seeks to define the consultation and approval process for local area energy plans and mandates the provision of guidance to assist local authorities in their preparation. We recognise the positive intention here to provide clarity, consistency and technical support to authorities seeking to engage with this important agenda. This amendment also aims to widen the uptake of such planning and to define better the role of local authorities in delivering the future energy system. Those are commendable aims. While we must avoid onerous procedural hurdles or risk diverting local effort away from practical delivery into process-heavy reporting, we hope the Minister will consider this amendment carefully.

In conclusion, these amendments rightly draw attention to the importance of empowering local authorities in the energy transition. I welcome the debate and the ideas put forward, but urge a cautious, pragmatic approach. I look forward to the Minister’s response and any reassurances he can give on the Government’s direction in this space.

[The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Lord Khan of Burnley) (Lab)]

My Lords, I start with Amendments 90 and 177, which relate to local area energy plans. I thank the noble Earl, Lord Russell, the noble Baroness, Lady Bennett, and the noble Lords, Ravensdale and Lord Hunt of Kings Heath, for tabling these amendments.

Amendment 90, tabled by the noble Earl, Lord Russell, seeks to require all local authorities and combined authorities to produce a local area energy plan. The Government are committed to working in partnership with local government, in recognition of the essential role that local places play in accelerating to net zero and supercharging our mission to deliver clean power by 2030. We recognise that, in support of this role, some local authorities have already produced local area energy plans and have used them to plan for the investment they need to support the energy transition and deliver net zero in their areas. We welcome the work that many local authorities have undertaken to develop and deliver their local energy plans. Local authorities may well be considering how planning their future energy needs may form part of their local growth plans or help contribute to Ofgem and NESO’s work on regional energy strategic plans.

However, this is not the right time to place further burdens on local authorities, while the approach to energy planning is still under development. We are considering how these plans might align with a range of regional and national plans, including the regional energy strategic plans, the warm homes plan, heat network zoning and Great British Energy’s local work. With that in mind, we continue to consider the potential benefit of local net-zero plans, working with partners across central and local government such as the local net-zero hubs, Great British Energy, NESO, Ofgem and Innovate UK.

We are also learning from the work of several local authorities in England which have already undertaken to develop their own plans, in recognition of the important lessons that can be learned from local authorities. In the meantime, local authorities that wish to assess whether energy planning fits with their wider strategic plans can access a range of support to help them develop local plans, including the tools and advice available on the Net Zero Go digital platform, supported by the department and the advice and support available to them from their local net-zero hubs.

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[Earl Russell (LD)]

I welcome the Minister’s response to my amendment and the amendment in the name of the noble Lord, Lord Ravensdale. However, I am hearing from the Minister that this is not the right time to do this stuff. I understand that the Government are actively drawing up different strings and bits of policy and bringing them together. However, if now is not the right time, when might be the right time?

The Minister says that the Government are drawing together policy but also that there are loads of policy guidance available for local authorities that want to do this. The two statements are almost contradictory. Now is not the right time for the Government to give guidance, but guidance is available to any local authorities that want it. My worry is that this leads to guidance that is much more open to interpretation, which the Government do not have proper control of and which could be followed in multiple different ways without the Government having control over it. I strongly ask the Minister to think again on these matters. These are really important issues. I recognise that the Government are forming policy, but forming policy and working with local authorities are not contradictory things. These are everyday matters of government.

I thank the Minister for his response but call on the Government to think again.

[Lord Khan of Burnley (Lab)]

I appreciate the noble Earl’s contribution, but I politely disagree in that there is a lot of advice and support from local net-zero hubs funded by DESNZ. I understand and sympathise with what he is saying. We have all said today that we want to get moving as fast as we can, in a speedy manner, and to grow. This is all part of the agenda. We want to make sure that we get things right, be concise and have the right level of engagement and consultation, to ensure that when we have the clear plan moving forward it is well understood and implemented and does not have unintended implications or consequences.

[Lord Ravensdale (CB)]

I want to complement what the noble Earl just said. A couple of years back, when I raised this as part of the Energy Act 2023, I remember being given a similar response: this was still being considered by the Government as part of how it would fit into the bigger picture. But I think the Government need to recognise the real importance of that governance-level flow-down from national to regional to local, the importance of local understanding in this picture and the real priority that needs to be placed on developing this guidance and strategy for local areas to take it forward. I hope the Minister will reflect on that.

[Lord Khan of Burnley (Lab)]

I take note of the noble Lord, Lord Ravensdale, complementing the noble Earl, Lord Russell, and I recognise that there is a lot of work to do. I appreciate that the noble Lord has raised this before, but now we actually have a Planning and Infrastructure Bill which will very much fix the foundations of the whole growth to net zero and clean energy 2030.

My final and important point on this is that now is not the right time because we do not want to put further burdens on local authorities while we are still developing and finalising our energy planning. That is still under development, but I reassure the noble Lord that we are on it. We want to make sure that this happens as fast as possible, and this Bill will help us to change a lot of the infrastructure, thinking and systems in place in order for our country to grow.

[Earl Russell (LD)]

I withdraw my amendment.

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[Lord Jamieson (Con)]

My Lords, I thank my noble friend Lady Coffey for bringing this matter to the attention of the Committee, in particular the issue of concentration of power supply and potential implications. This amendment would limit the consent for electricity infrastructure within a 50-square mile area where the cumulative capacity is more than 10% of the country’s total. This raises several important questions for the Government. What assessment has been made of the cumulative impacts on a local area already hosting significant infrastructure? Additionally, how will fairness between different regions be measured and maintained? What mechanisms are in place to prevent overconcentration in certain areas at the expense of others, given, as my noble friend mentioned, the potential strategic risks to the country? I look forward to the Minister’s reply.

[Lord Khan of Burnley (Lab)]

My Lords, Amendment 94C, tabled by the noble Baroness, Lady Coffey, would create a new local area test, designed to limit the consenting of electricity infrastructure by reference to a percentage of the national total. In other words, it is addressed at the overconcentration of infrastructure in particular places.

The Government agree with the noble Baroness that the siting of electricity infrastructure should be considered carefully. While the Government are taking a strategic view, they are doing so via the strategic spatial energy plan and the centralised strategic network plan, due for publication by the end of 2026 and 2027 respectively.

It is unclear how exactly the amendment is intended to work in practice, given the complications of concepts such as cumulative capacity. It is not in the national interest for individual applications to be assessed or prevented by reference to a subjective threshold. They must be judged on the need case for the infrastructure weighed against local impacts, and that is precisely what the current system achieves. For projects designated as nationally significant, known as NSIPs, there is already a national policy statement, approved by Parliament, which sets out in detail the need case for this infrastructure and all the considerations that must be applied when consenting it.

This amendment would add further complexity to the consenting system, which could lead to a slowing down of the decision-making process for low-carbon and electricity infrastructure projects, which are crucial for this country—although, in practice, the threshold of 10% of the entire country’s electricity capacity is so high that it is highly unlikely that any project would in fact reach such a threshold.

The Government agree that infrastructure planning should have a special element. The strategic special energy plan will support a more actively planned approach to energy infrastructure across England, Scotland and Wales, land and sea, between 2030 and 2050. It will do this by assessing and identifying the optimal locations, quantities and types of energy infrastructure required for generation and storage to meet our future energy demand with the clean, affordable and secure supply that we need.

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[Lord Jamieson (Con)]

My Lords, I rise briefly to talk to Amendment 94D, tabled in the name of my noble friend Lady Coffey. This amendment concerns constraints on grants delivered by the Gas and Electricity Markets Authority. I simply ask the Minister whether he can clarify how the Government intend to ensure that such grants are awarded in a way that is both transparent and consistent across different technologies. I look forward to the Minister’s response.

[Lord Khan of Burnley (Lab)]

My Lords, Amendment 94D tabled by the noble Baroness, Lady Coffey, seeks to prohibit the Gas and Electricity Markets Authority—GEMA—from granting or considering early construction funding or accelerated strategic transmission investment unless planning consent has already been secured.

While I understand that network companies should not be given excessive funding for projects where procurement or construction costs are not yet incurred, I must urge noble Lords to consider the unintended consequences that this amendment would have for our energy infrastructure and our collective ambition to deliver a net zero-ready grid.

Let us be clear: the mechanisms in question, early construction funding and ASTI, are not blank cheques. They are carefully staged investments, including stages designed precisely to support the preparatory work that enables planning consent to be sought in the first place. This includes environmental assessments, route design, stakeholder engagement and technical feasibility studies. These are not luxuries; they are prerequisites for any responsible and successful planning application.

To deny access to funding before planning consent is granted creates a paradox. Planning consent cannot be obtained without preparatory work, and preparatory work cannot be funded without planning consent. This amendment risks trapping vital transmission projects in a bureaucratic cul-de-sac.

We are not debating theoretical infrastructure; we are talking about the backbone of our future clean energy system—projects that will connect offshore wind, solar and other renewables to homes and businesses across the country. These are the arteries of our economy. Delaying them risks not only our clean energy mission and net-zero commitment but the security and affordability of our energy and wider economic growth as grid capacity is needed to power new investments.

Moreover, GEMA already operates under a rigorous framework of accountability and oversight. Funding decisions are not made lightly; they are subject to scrutiny, cost-benefit analysis and alignment with strategic national priorities. To impose a statutory constraint at this stage would not enhance that process but hinder it. I therefore kindly ask the noble Baroness, Lady Coffey, to withdraw her amendment.

[Baroness Coffey (Con)]

I beg leave to withdraw the amendment.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friend Lady Coffey for bringing Amendment 94F to the attention of your Lordships. It would ensure that the duty relating to environmental principles was published in full. I ask the Minister: how are the Government going to monitor compliance in relation to environmental principles? As importantly, how will Parliament be kept informed of progress in this area? I thank my noble friend Lady Coffey for tabling her amendment and allowing us to ask those questions, and I look forward to the Minister’s response.

[Lord Khan of Burnley (Lab)]

My Lords, I was beginning to feel a bit of déjà vu before the noble Baroness, Lady Scott, spoke in place of the noble Lord, Lord Jamieson.

Amendment 94F, tabled by the noble Baroness, Lady Coffey, seeks to ensure that where an energy infrastructure project requires an assessment in relation to the environmental principles policy statement by the Secretary of State or the Gas and Electricity Markets Authority, this assessment and any advice provided and considered as part of that assessment is published.

As highlighted throughout today’s debate and in earlier discussions on the Bill, it is essential that we press ahead and deliver the critical infrastructure that we need to cut greenhouse gas emissions to net zero by 2050 and to achieve a clean power system by 2030. I thank the noble Baroness, Lady Coffey, for tabling this amendment and for the opportunity to set out both how the environmental principles policy statement and the environmental principles more broadly are given due regard by this Government.