Planning and Infrastructure Bill

Lord Lansley Excerpts

Committee stage
Monday 15th September 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I will also speak to Amendments 187, 200, 201, 202 and 203, which relate to the relationship between development corporations.

Development corporations are important vehicles for delivering large-scale and complex regeneration and development projects. As we continue to deliver the many homes that this country desperately needs, we expect the number of development corporations to increase in the coming years. Different types of development corporations have been created in law to respond to the circumstances of that time. This has created ambiguities within the current legislative framework so that multiple development corporations could be created within the same locality. This risks creating confusion and delaying the speed of delivery for key strategic projects, which can be unhelpful and frustrating for all.

As the intention of our reforms in this Bill is to create a clearer, more flexible and robust development corporation legislative framework, I believe that these amendments are necessary. This is because they will set out the relationship between different types of development corporations by aligning their boundaries and removing any doubt over decision-making. These amendments will create a backstop so that, for example, if, following consultation, a centrally led development corporation had an overlap with a mayoral development corporation or a locally led development corporation, the overlapping part would automatically become part of the government-led area. The same would apply for a mayoral development corporation, which would have the same power over a locally led development corporation.

I hope that noble Lords understand why the amendments are necessary. Before I respond to the other amendments in this group, it would be helpful to listen to noble Lords’ views, so I shall reserve any comment on them until I wind up. I beg to move.

[Lord Lansley (Con)]

My Lords, I shall speak to my Amendments 206A, 351ZA and 362 in this group, which also relate to mayoral development corporations. I am supportive of what the Minister is proposing in Amendment 186 and the related amendments. It is helpful to see that there is an established hierarchy between development corporations so that, if the Government establish a development corporation, it trumps a mayoral development corporation, in effect, while a mayoral development corporation trumps a locally led development corporation. However, my amendments raise an additional—and, I hope, helpful—issue.

Before I come on to that, let me say this: the underlying purpose of the development corporations in Part 4 of this Bill is to give mayors, through such corporations, the scope to engage in not just regeneration but development. So mayoral development corporations can be the vehicle for significant new settlements, both as urban extensions and in new sites. That is helpful, too.

Of course, what we do not have in this hierarchy of development corporations is the availability of local authorities to propose locally led development corporations on the same basis as the Government and mayors can do. That was in the Levelling-up and Regeneration Act but has not yet, with the exception of one of the accountability measures at the back of the section, been brought into force. Unless the Minister tells me otherwise, as I understand it, it is not the Government’s intention to bring into force the further provisions of that Act on locally led development corporations. For the avoidance of doubt, if I am wrong about that, I would be most grateful if the Minister could tell us so in her response to this debate.

Members who were attentive to the running list of amendments will recall that I tabled Amendments 204 and 205 back in July. Their purpose is to give other mayors access to the same powers to establish—I should say “propose”, since the Government establish them—mayoral development corporations as are available to the Mayor of London under the Localism Act. This is not to say that mayors do not have any such powers. However, since the Localism Act, they have generally been established under statutory instruments. Some of those have given mayors similar powers to those of the Mayor of London, but there are often gaps; the time pressures on these debates does not permit me the pleasure of examining precisely which gaps have been identified and for which mayors, but that does not matter. The point is that my Amendments 204 and 205 had the objective of giving mayors—all mayors—the same powers as are available to the London mayor.

I then found, when the Government published the English Devolution and Community Empowerment Bill in the other place, that Clause 36 and Schedule 17 of that Bill provided for other mayors to have the same powers as the London mayor. It struck me that, under those circumstances, there was no merit in my continuing to push Amendments 204 and 205, so I withdrew them. It further struck me that, if we provide for other mayors to have those powers under the English devolution Bill, it will run to a slower timetable than this Bill.

Therefore, Amendment 206A, which would bring into the Bill the new schedule proposed in Amendment 351ZA, is drafted in the same terms, substantially, as the Government’s English Devolution and Community Empowerment Bill. It would have the same effect—to give mayors generally the same powers as the London mayor—but it would do so in this Bill. Instead of waiting until some time next year—a time to be determined—and given that this is the Government’s number one legislative priority and that we are going to debate into the night if we have to, we can be confident that the provision would reach the statute book this year.

Based on the past experience of the unwillingness of Ministers to bring provisions of Bills that we have passed into force, Amendment 362 requires that the provision be brought into force within two months after the passing of this Bill. Therefore, we would be looking at all mayors having the powers by the early part of next year. This is important and relevant because we are already beyond the point at which the New Towns Taskforce said that it would publish its recommendations, including sites for new towns. It said in its interim report that it would publish the final report and recommendations in the summer; it is definitely now no longer the summer. I hope that the Minister will be able to tell us that it will do so shortly, as there is a degree of planning blight associated with their not being published. There is benefit to delivering on the objective to build more homes if we publish them sooner rather than later.

I hope that this Bill will secure Royal Assent this year—ideally, by the end of November—and that, by the end of January, with the inclusion of Amendment 206A and the proposed new schedule, the mayors will have access to those powers by the end of January.

[Baroness Scott of Bybrook (Con)]

My Lords, I will speak to Amendment 195A and to our probing opposition to Clause 93 standing part of the Bill.

Starting with Amendment 195A, I would be grateful if the Minister could clarify what is meant in practice by the provision that allows a development corporation to

“do anything necessary … for the purposes or incidental purposes of the new town”.

How is such a wide power to be defined, limited and safeguarded in its use? I would be grateful for a clear answer on that point.

Turning to Clause 93 more broadly, I make it clear that we are supportive of development corporations. Our concern is to understand more fully how they are intended to function under the Bill and to ensure that they are established on a sound and accountable footing.

I ask the Minister how local accountability will be preserved under the changes to the development corporations, given that they already have the ability to operate across multiple non-contiguous sites, an ability that will no doubt take on greater significance with the advance of devolution. How will such corporations function in practice alongside devolution? What safeguards will be in place to avoid confusion or diluted accountability, particularly in the context of local government reorganisation? This question seems especially pressing in the light of the changes that may arise from the forthcoming English devolution Bill, which your Lordships’ House will be considering in the coming months. How will the Government ensure that the role of development corporations sits coherently alongside wider reforms to local and regional governance?

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

My Lords, I will start with the notice from the noble Baroness, Lady Scott, opposing Clause 93 standing part. I welcome the opportunity to explain the intentions behind this clause. Clause 93 clarifies and extends areas for development and the remit of development corporation models. It includes changes to legislation that would extend the remit of mayoral development corporations, so that they can deliver regeneration and new town development rather than just regeneration. It also allows that separate parcels of land can be designated as one new town area, overseen by one new town development corporation.

The current framework is outdated and not fit for purpose. Each development corporation model was developed to address a specific circumstance at the time of its introduction. This poses a significant risk to the effective delivery of the development corporations. For example, mayoral development corporations can be used only for regeneration projects, as the model was developed initially for London but then widened out to areas outside London, including rural areas. The English Devolution and Community Empowerment Bill will enable strategic authorities to create more mayoral development corporations, so it is even more important to ensure that the legislation is fit for purpose.

Amendment 195A aims to remove the power permitting new town development corporations

“to do anything necessary or expedient for the purposes or incidental purposes of the new town”.

I reassure the noble Baroness that this is not a new addition to the new town development corporation framework. This provision is already written into primary legislation underpinning new town development corporations, as well as urban development corporation models. The changes to the infrastructure provision include listing specific functions and bringing them in line with mayoral development corporations, with the addition of heat pumps, which have been added to the list of infrastructure that can be delivered by all models.

As development corporations are used to respond to the specific needs of developments or regeneration schemes, it is important that the legislation offers this level of flexibility so that they can be tailored accordingly. We all want to see large-scale developments and infrastructure projects that will support housing and economic growth, but they need to be supported by the right infrastructure without compromising existing provisions. It would be a step backwards if we were to take the power away from new town development corporations and instead provide only a list of infrastructure, as some developments may require new technologies. Decisions to establish development corporations and the powers each will have will be made via regulations. Their oversight will be carefully designed and subject to statutory consultation.

Amendments 351ZA and 362, tabled by the noble Lord, Lord Lansley, would standardise and extend powers in respect of mayoral development corporations to mayors of all strategic authorities outside London. I welcome his proposal. It is vital that we empower local leaders to transform underused sites to create thriving communities tailored to local needs. For this purpose, mayoral development corporations should be part of every mayor’s toolkit. However, we believe these amendments are unnecessary. The changes the noble Lord is proposing are already being made through the English Devolution and Community Empowerment Bill introduced on 10 July 2025. Given its scope, that Bill is the most appropriate vehicle for these changes. I take the noble Lord’s point about delay, but I am not under the impression that there is going to be any grass growing under the feet of the English Devolution and Community Empowerment Bill. I think that is going to get moved on at pace and I hope that it will be appropriate for the changes that we are talking about.

[Lord Lansley (Con)]

Since we have in this Bill Part 4 relating to development corporations, I fail to see why it is not the appropriate place to legislate for mayoral development corporations, rather than the English Devolution and Community Empowerment Bill. I think the evidence points to completely the opposite conclusion to the one the Minister just used.

[Baroness Taylor of Stevenage (Lab)]

I think it sits alongside other measures in that Bill. That is why it has been put into the EDCE Bill rather than this Bill.

Amendment 362 would commence provisions in relation to the development corporations within two months of the Planning and Infrastructure Bill passing. I welcome the noble Lord’s enthusiasm in wanting the changes to be implemented quickly, and I share his passion for that. We recognise that they are important measures, creating a clear, flexible and robust development corporation legislative framework to unlock more housing across the country, co-ordinating that with infrastructure and transport to support sustained economic growth. We also want the changes to come into force as soon as practically possible. However—and I would say this—there is further legislative work and guidance to ensure that development corporations are set up for success. It takes a significant amount of time to establish a development corporation, including essential preparatory and scoping work. We do not envisage that this will cause any delays to those interested in setting up a mayoral development corporation, but I do not think the progress of the other Bill is going to hold things up unnecessarily either.

It might be helpful if I cover some issues around how this is going to work. We know that development corporations are a vital tool for delivering large-scale, complex property developments, particularly where the risk—the noble Lord, Lord Shipley, mentioned risk—is too great for private sector delivery alone. To encourage the use of development corporations and reduce the risk of challenge, there should be clarity around their remit and functions.

Decisions to designate and grant powers to development corporations must be made by regulations. They are subject to statutory consultation, and they must be made with careful consideration of all the issues of oversight that we have heard about. The department consulted on oversight regulations for locally led urban development corporations last year, and the Government’s response is expected later this calendar year—I hope it does not run out before “later” arrives. Locally led urban development corporations cannot be set up before provisions in the Levelling-up and Regeneration Act 2023 are commenced.

In relation to the point from the noble Lord, Lord Shipley, about South Tees, the Government have issued a response to the independent review of the South Tees Development Corporation and Teesworks joint venture, which included clarifying the available measures to strengthen the oversight for mayoral development corporations. On 3 April 2025, guidance was published which clarified legislation and scrutiny of mayoral development corporations. I hope that that gives an adequate response to his question.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

It is not my understanding that there will be fiscal devolution powers in that way, but I will take that back and write to the noble Lord if I am wrong.

[Lord Lansley (Con)]

I understood from what the Minister was saying that it is the Government’s intention to bring all of Section 172 of the Levelling-up and Regeneration Act relating to locally led new towns into force. Am I correct in that? I got the impression that that is the Government’s intention, but it was not quite explicit.

[Baroness Taylor of Stevenage (Lab)]

My understanding is that the powers in the Act relating to locally led development corporations will be brought into force, but I have committed to write to the noble Lord, Lord Jamieson, with a full explanation. I will circulate that letter when I have published it.

[Baroness Taylor of Stevenage (Lab)]

I am sorry if I misled the noble Baroness. I meant to say that the Government recognise the issue around planning capacity. We have already allocated that £46 million for local government, and we must have the discussions with Sir Michael Lyons that recognise that we need to make sure that the capacity is there to deal with new town development corporations as well.

[Lord Lansley (Con)]

Can the Minister tell us when we can expect to see the report of the New Towns Taskforce?

[Baroness Taylor of Stevenage (Lab)]

In the autumn.

--- Later in debate ---

[Lord Lansley (Con)]

Before the Minister replies, I just intervene, not having spoken previously, to say there are always two sides to any argument. There were clearly two sides to the argument before the Supreme Court, the other side being Dr Day’s argument that those people who had the benefit of access to open space should have been consulted about the loss of that.

I agree with my noble friend Lord Banner that, clearly, the intention of the 1972 legislation was that local authorities could dispose of that land and that they would be able to do so notwithstanding the previous Open Spaces Act 1906. The point that was asserted on Dr Day’s behalf before the Supreme Court was that those people who benefit from access to open spaces should have been consulted. The opportunity should be taken just to establish that not only do we need to change the law, we need to examine how and under what circumstances local authorities that wish to dispose of land to which the public have access should consult those people who would be affected.

[Lord Pannick (CB)]

In answer to the excellent speech by the noble Lord, Lord Blencathra, it was not my noble friend Lord Grabiner and I who described the situation as a mess. Those were the words of Lady Rose herself in the Supreme Court. I would not presume to suggest that the Supreme Court judgment was a mess.

While I am on my feet, I am grateful for the opportunity to mention that my noble friend Lord O’Donnell is here but was not here at the beginning of the debate. He tells me that he very much supports this amendment and would wish to be included in any meeting, if the Minister will grant one. He is a main committee member at the Wimbledon club. He strongly supports the amendment but cannot speak because he was not here at the beginning of the debate.

--- Later in debate ---

Moved by

[Lord Lansley]

238: Clause 55, page 91, line 33, leave out “one or more” and insert “the”
Member’s explanatory statement
This amendment and another in the name of Lord Lansley to Clause 55, line 35 would secure that each of the environmental features which are likely to be negatively affected by a development are identified in the EDP and the ways in which that effect is caused is also identified.

[Lord Lansley (Con)]

My Lords, the noble Baroness, Lady Young, was talking about the various views that were being taken on Part 3. The beauty of Committee is that we can ride all those horses. The particular horse with which I am concerned is trying to find for the Bill precise drafting language that achieves precisely what is intended and is as clear as possible about what we intend.

As we get into Clause 55, we are in one of the central provisions where the environmental features and the impact of development on such features must be identified, all in the environmental delivery plan, as must the conservation measures needed to secure the overall impact. We will come on to debate the overall improvement test. I note that Amendment 266 is in this group but I am not quite sure why; I think properly it should be in the group relating to the overall improvement test, which we will get to on Wednesday.

The most important amendment in this group is not mine but the Government’s Amendment 247A, the effect of which is to add specific language about the conservation measures that will have to be taken offsite and what is required in those to secure the overall improvement test: that they will

“make a greater contribution to the improvement of the conservation status of the feature than measures that address the environmental impact of development on the feature at the protected site itself”.

That is a helpful amendment as part of the package of amendments that have enabled the structure of the Bill and the objectives to be slightly better than they started out.

Amendment 238 comes at the beginning of Clause 55 and relates to the identification of the environmental features likely to be negatively affected by a development. We know what the protected features of a protected site or a protected species are because those are set out in Clause 92, on the interpretation of this part. I am interested in what the noble Baroness, Lady Young of Old Scone, has to say about her amendment and I will wait to hear that.

Amendment 238 would amend Clause 55(1), where the Bill says that an environmental delivery plan must identify

“one or more environmental features which are likely to be … affected”.

I want to check precisely what the Government are trying to achieve by the words “one or more”. If they are worried that an environmental delivery plan may be challenged because not all the environmental features are identified, I do not think this drafting is helpful. If an environmental development plan does not identify an environmental feature that is likely to be affected by development, it is potentially able to be challenged in any case, and I do not think the language “one or more” would escape from that risk. The environmental features are the starting point of an environmental delivery plan. If one does not correctly identify the environmental features likely to be affected, that plan seems to me by its nature to be flawed. So why the words “one or more”? There will not be none or there would not be an environmental delivery plan. If there is more than one, it would be wrong for the environmental delivery plan not to take account and identify those, and leaving them out would make it flawed.

--- Later in debate ---

[Lord Lansley (Con)]

My Lords, I am most grateful to the Minister for that very helpful response to this short debate. I enjoyed many of the contributions, not least that of the noble Baroness, Lady Young of Old Scone. Cambourne was of course in my former constituency. I would say to her that we have not given up on trying to get East West Rail together on the A428 corridor. Perhaps we will talk about that off-site, as we might say in the context of this Bill.

We learn as we go, do we not? I have learned—it was not clear—that the intention regarding the environmental delivery plans is that, once they have identified a development, even though it might impact on an environmental feature, that feature may not necessarily form part of the environmental delivery plan; it may be dealt with under the existing habitat and other regulations.

That is very interesting. However, that being the case—I will not dwell on it, but we may have to come back to it—Amendments 239 and 240, on the ways in which that negative effect is likely to impact on that environmental feature, should all still be included, and if they directly relate to the development they should definitely be included. Those two amendments still have merit in respect of the drafting. We could maybe talk about that at some point. With the hope that we might revisit those points, I beg leave to withdraw Amendment 238.

Amendment 238 withdrawn