Matthew Pennycook MP: speeches 2025

Speeches

• 22 May 2025 · Planning and Infrastructure Bill (Thirteenth sitting) · Hansard source

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  I welcome that clarification from the shadow Minister and thank him for his comments. He highlighted the important role that the Planning Advisory Service plays. Skilled planners are essential to delivering efficient, proactive planning services and ensuring that new development supports growth and high-quality design of places and homes. The Government recognise the mounting pressures on local planning authorities as they adapt to significant reforms, both in how we want to reform the house building system and in boosting housing supply. That is why we have legislated in the Bill to allow all local planning authorities to set their own planning fees in order to increase resources in a way that responds to the individual needs of each authority and, as we have debated at length on previous clauses, ensure those fees are ringfenced. Furthermore, the Chancellor announced—I have said this before, but it is worth my pointing to the Government’s good efforts in this area at every opportunity—a £46 million investment for 2025–26 at the Budget last year, supporting planning capacity and capability, including the recruitment and training of at least 300 graduate and apprentice planners. Funding is also being used to support implementation of the revised national planning policy framework. For example, we allocated substantial funds to local planning authorities to assist them with green belt reviews. Alongside that, our planning capacity and capability programme works with sector partners to build long-term skills, modernise local plans and speed up decision making, using innovation and digital tools. Importantly, we are closely tracking the impact of those interventions through an embedded research and evaluation team. A national survey conducted in 2023 informs our approach; a further survey, now concluding, will build on that baseline. Given the robust programme of support and evaluation already in place, we are of the view that the new clause is not necessary, and I hope that with those reassurances he might be minded to withdraw it.

• 22 May 2025 · Planning and Infrastructure Bill (Thirteenth sitting) · Hansard source

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  I note and appreciate the case that the hon. Gentleman has just made, but successive Governments have taken the view that businesses should not have the right in law to any particular given level of passing trade, and that traders, or other organisations, must take the risk of loss due to temporary disruption of traffic flows along with all of the other various risks of running a business or organisation. The same businesses or organisations may also profit from new developments once works have been completed. If planning permission is needed, affected organisations can express concerns as part of that process if they are worried about how works will affect them. Temporary traffic regulation orders are needed for some road closures, and affected organisations can also express concerns as part of that process to the relevant local planning authority.

• 22 May 2025 · Planning and Infrastructure Bill (Thirteenth sitting) · Hansard source

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  I thank the hon. Gentleman for moving new clause 32. In short, we think it is unnecessary, but I take on board his points and I share his concerns about the particular case that he raised. Local planning register authorities are already required to maintain and publish a register of every application for planning permission that relates to their area. The register must include details on application decisions, including where the Secretary of State has made the decision either via a called-in application or a recovered appeal. That is set out in article 40 of the Town and Country Planning (Development Management Procedure) (England) Order 2015. Secretary of State decisions on planning casework are also published on gov.uk in order to provide additional transparency. That includes the decision letters that set out the reasons for the decision in question. When determining applications for planning permission, the Secretary of State operates—obviously—within the ministerial code and planning propriety guidance. The planning propriety guidance makes it clear that decisions on planning proposals should be made with an open mind, based on the facts before them at that time. Any conflicts of interest between the decision-making role of Ministers and their other interests should be avoided. To that end, planning Ministers are required to declare their interests as part of their responsibilities under the ministerial code. The ministerial code makes specific provision for the declaration of gifts given to Ministers in their ministerial capacity, and gifts given to Ministers in their capacity as constituency MPs or members of a political party fall within the rules relating to the Registers of Members’ and Lords’ Financial Interests. In addition, before any planning Minister takes decisions, the planning propriety guidance reiterates that they are required to declare anything that could give rise to a conflict of interest, or—this is equally important—the appearance of a conflict of interest. The planning casework unit within my Department uses that information to ensure that planning Ministers do not deal with decisions that could give rise to an appearance of impropriety. For example, if the Minister in question has declared that the applicant of the proposal is a political donor, they would be recused from making the decision. We therefore feel that there is sufficient transparency on planning casework decisions made by the Secretary of State, and the Ministers, including myself, who act on her behalf, and it is not necessary to impose an additional administrative burden on local planning authorities. I hope that, with those assurances, the hon. Member for Taunton and Wellington will withdraw his amendment.

• 22 May 2025 · Planning and Infrastructure Bill (Thirteenth sitting) · Hansard source

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  I am always happy to have conversations with hon. Members about the Government’s thinking in this area and other areas, although a particular spin on recent conversations I have had with hon. Members found its way into The Guardian , which is a warning to Ministers. We are trying, as a Government, to feel our way to the most appropriate way to boost the coverage of swift bricks. As I have said, that is an objective that we absolutely share. In that regard in particular, I point once again to the fact that we are committed to producing a set of national policies for decision making to set out policy requirements in a variety of areas in a more explicit manner. As part of that, we will assess how existing policy is operating, and whether there are any changes to wording in that area that would be beneficial to that objective. Although I fully support the aim of securing both an increase in swift brick coverage and more nature-friendly features in new developments more generally, I cannot support these new clauses, for the reasons I have given. I hope the hon. Member for North Herefordshire will be content to withdraw them. Given that the hon. Member for Taunton and Wellington has not spoken to new clause 23, which relates to biodiversity net gain, I will—

• 22 May 2025 · Planning and Infrastructure Bill (Thirteenth sitting) · Hansard source

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  As the hon. Gentleman has just made clear, new clause 58 would place a statutory duty on local planning authorities to contribute to targets set under the Environment Act, the Climate Change Act and the Air Quality Standards Regulations 2010, and to contribute to the programme for adaptation to climate change under the Climate Change Act. Many local authorities already have a high level of ambition to tackle climate change, restore nature and address wider environmental issues, including air quality. In our view, it is not clear what additional benefits, if any, a new statutory duty would bring. Local authorities already have statutory duties to improve air quality in their areas. Thanks to the combined efforts of local and central Government, air quality in the UK is improving, although we accept that there is more to do. The Government will continue to work with local authorities to reduce air pollution and its harmful effects. Existing tools and duties also support efforts to contribute to targets for nature, such as local nature recovery strategies, which we have discussed, and the biodiversity duty under the Natural Environment and Rural Communities Act 2006, which was strengthened by the Environment Act 2021. The latter requires all public authorities to consider and take action to conserve and enhance biodiversity, which must have regard to any relevant local nature recovery strategy and any relevant species conservation strategy or protected site strategy prepared by Natural England. On climate adaptation, the Government already work closely with local authorities, a number of which are developing dedicated climate risk assessments. In October, the Government launched the local authority climate service, which provides tailored data on climate change impacts. The Government also ran the first adaptation reporting power trial for local authorities last year, providing guidance and support on how to assess climate risks to their functions and services. The Government also provide a range of net zero support to local authorities. This includes funding five local net zero hubs, which support local authorities to develop net zero projects and attract commercial investment, and funding the local net zero accelerator pilot programme to test how to support local places to leverage commercial investment at scale to accelerate the move to net zero. Given such existing support, and the fact that many local authorities are already taking great strides in tackling the combined issues of environmental decline and climate change impacts, we do not think a statutory duty for local authorities to contribute to environmental, net zero or air quality targets, or towards the Climate Change Act’s programme for climate adaptation, is necessary. For that reason, I hope the hon. Gentleman will consider withdrawing the new clause.

• 22 May 2025 · Planning and Infrastructure Bill (Thirteenth sitting) · Hansard source

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  Sorry—and 23 as well? I could also address that, if we come on to debate it, but let me first respond to new clauses 20 and 27 relating to swift bricks. I am well aware of the serious population decline of swifts in the UK. There are numerous reasons behind that decline. It is not just the loss of nesting sites; there are other factors, such as the decline of insect food, but nesting sites are a certainly a contributory factor and the Government recognise that. The objective of increasing the coverage of swift bricks is one that we absolutely share. However, there are different ways of advancing that aim and this is where a fruitful debate can take place. We are not convinced that legislating to mandate the use of specific wildlife features is the right approach, whether that is done through building regulations or a freestanding legal requirement. If the hon. Member for North Herefordshire wants a good summary of my own views, which I have been very clear on over many years, she can find it in a 10 July 2023 Westminster Hall debate we had on the subject, where I expressed similar reservations about the approach that the new clause dictates. Measures such as swift bricks and hedgehog highways are beneficial in many cases, but they will not be feasible or effective for every single development across the country. The way that new clause 20 tries to provide for exceptions demonstrates that, so there is obviously an awareness of the issue, but it also shows the complexity which arises from a blanket approach. I have real concerns that it would be difficult to operate in practice and risks more legal challenges seeking to block development, rather than securing better uptake of the right features in the right places. Progress is already being made in expanding the use of wildlife features in homes across the country. The Future Homes Hub, representing 29 home builders who have a large share of the market, operates a voluntary commitment to install a bird nesting brick or box for every new home built. There are factories across the country producing large numbers of swift bricks, so they—and similarly hedgehog highways—are being rolled out as a standard on every new development. That action is welcome, but we absolutely accept that more can be done. That is why our revisions to the national planning policy framework, published last December, make clear that developments should incorporate features that support priority or threatened species such as swifts, bats and hedgehogs. That is supported by both the national model design code and Natural England’s green infrastructure framework, which set out how developers can do this.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  Clauses 83 to 92 relate to compulsory purchase and are designed as a group to improve the compulsory purchase order process and land compensation rules to enable more effective land assembly through public sector-led schemes. As hon. Members will no doubt be aware—I am sure that they have read every word—the Government’s 2024 manifesto made a commitment to further reform compulsory purchase compensation rules to improve land assembly, speed up site delivery and deliver housing, infrastructure, amenity and transport benefits in the public interest. That manifesto promised that a Labour Government would take steps to ensure that, for specific types of development schemes, landowners are awarded fair compensation rather than inflated prices based on the prospect of planning permission. The Government’s reforms, which were outlined in the consultation published at the end of 2024, are necessary to deliver the housing and critical infrastructure that this country needs and to make it more attractive for the public sector to use its compulsory purchase powers to deliver development in the right places. That is the intent behind the clauses that we are debating this morning. To be clear, changes introduced in the Bill are not targeted at farmers or any particular landowners, and they make a limited addition to the existing power for CPOs to be confirmed with directions removing hope value, so it may apply to parish or town council CPOs facilitating affordable housing provision. I made this point on Second Reading and I want to be clear: there is nothing in the Bill that changes the core principle of compulsory purchase—that it must be used only where negotiations to acquire land by agreement have not succeeded and where there is a compelling case in the public interest. It will be for individual authorities to decide where it is most appropriate to use their CPO powers to deliver their schemes in the public interest. Taken together, the clauses will ensure that quicker decisions on CPOs can be made, the administrative costs of undertaking the process are reduced, and a better balance is struck so compensation paid to landowners is, as I have said, fair but not excessive. Clause 83 amends the legislation underpinning the compulsory purchase process and compensation rules to allow the service of statutory notices to be undertaken by electronic methods of communication. Allowing CPO notices to be served on parties by electronic communication will ensure that the CPO process is modernised and made more efficient. Notices may be served by electronic communication providing the person receiving the notice has provided an address for such a service, such as an email address. Where an address is not provided, the existing methods of service—for example, by post—will remain. The default method for service of notices on public authorities will be electronic communication, providing the authority has specified an address for communicating about the specific CPO in question. The clause, which again I hope is uncontroversial, simply intends to modernise and speed up the compulsory purchase process and reduce the administrative costs, and I commend it to the Committee.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  Clause 85 will speed up decisions on CPOs where no objections have been received. Currently, where a CPO is not objected to, the confirmation decision can be made by the acquiring authority, providing certain conditions have been met. One condition is that the CPO does not require modification—for example, to correct an error in the drafting of the order. That adds unnecessary delay and prevents authorities from taking earlier possession of land to deliver benefits in the public interest. Clause 85 allows an acquiring authority to confirm its own compulsory purchase order with modifications, providing that they do not affect a person’s interest in the land. Where they do, it introduces the ability for acquiring authorities to confirm their own CPOs where modifications are required, providing that the modifications do not affect a person’s interest in a controversial way. Where modifications need to be made to a CPO— for example, to remove land from the CPO, or to correct a drafting error such as the wrong colour used on the map to identify land—the confirming authority will set out in a notice what modifications are required. Acquiring authorities will not be allowed to add new land into CPOs or exclude part of a plot of land from CPOs, as such changes could provoke objections. In those circumstances, the modification and confirmation of the CPO will still be made by the confirming authority. The changes are intended to speed up the decision-making process for CPOs that have not been objected to, and to allow benefits in the public interest to be delivered more efficiently. They will be particularly helpful in situations where, as part of a wider land assembly exercise, an acquiring authority needs to exercise its compulsory purchase powers to acquire title to land in unknown ownership. Modifications that do affect a person’s interest in land are allowed, but only if the affected person gives their consent for the modification being made. For these reasons, the Government believe that the clause will enable the CPO process to better benefit the public interest.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  As the Government move to bring forward the new system of environmental outcome reports that will replace the EU processes of environmental impact assessment and strategic environmental assessment, it is necessary to make a minor amendment to the original drafting to ensure the new system can comply with relevant international obligations. Environmental outcomes reports provide the opportunity to streamline the assessment process while securing better outcomes for nature, but it is vital we start this journey with the right powers. Clause 93 amends the power to specify environmental outcomes to ensure they can relate to areas outside of our national jurisdiction. This is to ensure that the new system of EORs can comply with, among other things, the UK’s obligations under the Espoo convention, which requires signatories to consider the potential transboundary impact of development. This measure will ensure that, as the Government progress with developing the new system of EORs, they will have sufficient powers to ensure the new system can adequately fulfil all our international obligations.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I note the point that the hon. Gentleman is making. I will not comment on the specific case he raises, but I am keen to provide him with as much reassurance as possible about the skillset of inspectors, and that skillset being directly applicable to the types of cases they will be looking for in terms of compensation. On the practical considerations around the timescale of the process and other issues he has raised, I am more than happy to set that down in writing to him. Question put and agreed to. Clause 92 accordingly ordered to stand part of the Bill. Clause 93 Reporting on extra-territorial environmental outcomes Question proposed, That the clause stand part of the Bill.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I thank the shadow Minister for those questions. As ever, I will reflect on his request for procedural fairness to be maintained, but in broad terms, I would say that abuses of the kind he suggests are highly unlikely. I am more than happy to provide him with further reassurance on that point. Given that clause 87 is about undertaking the procedure in question by agreement, I think it is less controversial. On clause 86, it will be for the acquiring authority to be confident that the conditions for the use of the power have been met, and to objectively identify where it thinks that the conditions for the use of the power have been met. In doing so, it will be for acquiring authorities to respond to and defend against any disputes or challenges made on the use of the power. Where the land includes a dwelling, the acquiring authority is empowered only to expedite the vesting of the land if the dwelling is unfit for human habitation within the well-understood meaning set out in section 10 of the Landlord and Tenant Act 1985. However, included within the power to take early possession of land or buildings is a safeguard to prevent the vesting of land from being brought forward where there is disagreement as to whether the land is unoccupied or is in a condition that it is fit for use, or where an occupant identifies themselves to the authority. As I have said, parties can make representations to the acquiring authority that those conditions have not been met, but ultimately, the decision as to whether they have or not remains with the acquiring authority. However, I am happy to reflect on whether there is a need for further safeguards in this area and to update the shadow Minister accordingly. Question put and agreed to. Clause 86 accordingly ordered to stand part of the Bill . Clause 87 ordered to stand part of the Bill. Clause 88 Adjustment of basic and occupier’s loss payments

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I thank the hon. Gentleman for his question. We just debated a clause about standardising the list of infrastructure that all development corporations can bring forward, but clause 82 addresses a specific gap in the legislation, which is that development corporations cannot have transport powers and are reliant on local transport authorities to bring them forward. I do not dismiss his point about wider infrastructure—we have debated it elsewhere, and I have taken on board the points that hon. Members have raised—but the clause addresses a specific issue and outlines a way of dealing with it. As I say, the preferred approach is co-operation in the first instance and working with the local transport authority in question. The ability to transfer transport powers, which is available under the clause, is ultimately a backstop measure, and escalation via direction is an initial measure to address insufficient co-operation. The clause clearly sets out how the escalatory process will work, although it is worth saying that decisions to either direct or transfer powers will be taken on a case-by-case basis and applied only where there is good reason to believe that co-operation on the part of the local transport authority is not forthcoming and necessary transport infrastructure is not delivered. We think that the backstop is necessary for cases where the local transport authority refuses to co-operate and is blocking necessary infrastructure that the development corporation requires for its urban regeneration and development needs. On that basis, I hope I have reassured hon. Members.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I absolutely can confirm that. If the hon. Member is interested, that was set out in the extensive debates on that power during the Levelling-up and Regeneration Bill Committee. The public benefits to which the direction can apply are very clear: transport schemes but also affordable housing schemes. However, it would be judged on a case-by-case basis whether the amount of affordable housing provided, in each instance, was sufficient to meet that public benefit test. The important point that I need to make is that the reference to the provision of affordable housing and other benefits is an important safeguard, to ensure that directions removing hope value could meet the public interest justification test and ensure that the use of the power would be compliant with human rights legislation. That is really important. Trying to draw the power too widely would fall foul of human rights legislation and we would not be able to use it in any case. That is why it has to be targeted at schemes that deliver in the public interest. That will be judged on a case-by-case basis. The Government also have concerns that amendment 2 could introduce a change that could make it difficult for authorities to justify directions removing hope value in the public interest. We think that it could make the benefits delivered through use of the existing direction power less clearly identifiable and problematic for those reasons, so I will not be able to accept the amendment, although, as I say, I am sympathetic to the use of the direction in clear instances when a public benefit is at stake. Although we have commenced the Levelling-up and Regeneration Act provisions only this year, to date no acquiring authority has used them; I suspect that is partly from the usual hesitancy about being the first mover and partly about ensuring that there are sufficient skills in the acquiring authority to use it. But the Government are very clear: we do want an acquiring authority, where appropriate, to make use of the power, although we cannot draw it more widely for the reasons I have given. I turn to amendments 86 and 87. The amendments seek to amend clause 91 and expand the power introduced by the Levelling-up and Regeneration Act for CPOs to be confirmed with directions removing hope value. The amendments propose to extend the types of CPOs for which directions removing hope value may be sought to CPOs providing provision of sporting and recreational facilities. The amendments also seek to introduce a change so that CPOs that provide sporting and recreational facilities would not have to facilitate affordable housing provision when seeking directions removing hope value. While the Government recognise the value of parks and playing fields to our communities—we could all give our own examples of how much they are cherished and loved—we are unable to support the amendments. As I have said, the non-payment of hope value to landowners through the use of CPO powers must be proportionate and justified in the public interest. Affordable housing, education and health are types of public sector-led development where the public benefits facilitated through the non-payment of hope value can be directly demonstrable to local communities. The Government have concerns that the provisions would be less compelling for sporting and recreational facilities. The proposed changes could make it difficult for authorities to justify directions removing hope value in the public interest, as the benefits to be delivered would be less clearly identifiable. The Government are therefore unable to support the amendments. I turn briefly to clause stand part. Clause 91 makes amendments to the power introduced by the Levelling-up and Regeneration Act, which we have just been debating, that allows authorities to include in their CPOs directions the removal of hope value from compensation, when that is justified in the public interest. First, the clause amends the Acquisition of Land Act 1981 and provides that CPOs made with directions removing hope value may be confirmed by acquiring authorities where there are no objections to the relevant CPO. Alongside that reform, the Government intend to publish updated CPO guidance to make clear their policy that the power for inspectors to be appointed to take decisions on CPOs under the 1981 Act can be used for CPOs with directions removing hope value. CPO guidance published by my Department sets out criteria that the Secretary of State will consider in deciding whether to delegate confirmation decisions to inspectors. The updated CPO guidance, reflecting the Government’s policy, will be published when we implement the Bill’s reforms following Royal Assent. The changes will speed up the decision-making process for CPOs with directions removing hope value and ensure that the process is more efficient and effective. Secondly, clause 91 extends the power for CPOs to include directions removing hope value to CPOs made on behalf of parish or community councils under section 125 of the Local Government Act 1972. That will allow parish or community councils, when seeking to deliver affordable housing in their areas, to acquire land without paying hope value compensation—again, when a direction removing hope value is justified in the public interest demonstrably and clearly. The change is intended to increase the viability of such schemes to deliver more affordable housing, which these communities desperately need. Lastly, the clause amends the legislation to ensure that when CPOs are confirmed with directions removing hope value, the directions apply not only to the assessment of market value of land taken but to loss payments where the assessment of market value is a relevant factor. That makes it clearer that hope value will be removed from all heads of claim where market value is assessed. That provides for the consistent application of the principles for the assessment of the market value of land where CPOs are confirmed, with directions removing hope value. It also ensures that the compensation regime does not deliver excessive compensation where compulsory purchase is used to deliver benefits in the public interest. I again make it clear that these reforms are not about targeting farm owners or any specific types of land or landowner. Neither do the clauses seek to change—returning to the point made by my hon. Friend the Member for Basingstoke—the core principles of compulsory purchase, which remain. There is nothing in the Bill that changes the core principles of compulsory purchase. As I have said, it must be used only where negotiations to acquire land by agreement have failed, and where there is a compelling case in the public interest. To deliver the homes and infrastructure we need, we must look to unlock land in the right places. These clauses ensure we have the correct tools to realise that. Briefly, new clause 108, tabled by the right hon. Member for Louth and Horncastle, seeks to repeal section 14A of the Land Compensation Act 1961, which provides the power for CPOs to be confirmed, with directions removing hope value where justified in the public interest. For that reason, I understand why the shadow Minister has at the last moment hesitated to speak to it. In essence, the new clause would remove the power introduced by the Levelling-up and Regeneration Act 2023, which allows acquiring authorities to take forward certain types of scheme by compulsory purchase and to pay a reduced value for land where it will deliver clear and significant benefits and is justified in the public interest. I disagree with the reforms made by Baron Gove—I think that is now the correct terminology—in a number of areas. He tainted his record in my Department very late on in the previous Government by abolishing mandatory housing targets under pressure from the so-called planning concern group, the ringleaders of which all lost their seats in any case. He did, however, introduce a number of very valuable reforms, one of which is that reform to CPOs. It is therefore absolutely right that we do not attempt—as the right hon. Lady clearly does, if not the shadow Minister—to remove it from the statute book.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  Clause 90 amends the power to take temporary possession of land under the Neighbourhood Planning Act 2017. Promoters of major infrastructure have indicated that their current consenting regimes provide flexibility for the taking of temporary possession of land, and should the 2017 Act power be commenced, that flexibility would be taken away. The clause sets out that the power for acquiring authorities to take temporary possession of land by agreement or compulsion under the 2017 Act does not apply in respect of: first, other express temporary possession powers provided for by other Acts; secondly, development consent orders made under the Planning Act 2008, and infrastructure consent orders made under the Infrastructure (Wales) Act 2024; thirdly, orders made under the Transport and Works Act 1992. The clause will enable the taking of temporary possession under the 2017 Act, without interfering with the process for taking temporary possession under development consent orders, infrastructure consent orders or transport and works orders. It will help ensure continued flexibility for the delivery of critical infrastructure, while paving the way for the taking of temporary possession under other regimes such as the CPO process and the New Towns Act 1981.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I thank the shadow Minister for not pressing amendments 134 to 147. I would not have been able to accept them for reasons I could have gone into at some length. I will deal with the clause and then new clause 52, which the Opposition still wish to move. To ensure that compensation paid to those whose land is compulsorily acquired is fair, clause 88 makes changes to the Land Compensation Act 1973 and the framework for basic and occupier’s loss payments. Loss payments exist to reflect the inconvenience caused by compulsory purchase. They are valued either on the market value of a person’s interest or on an amount calculated by reference to the area of the land or buildings known as the “land amount” or “building amount”, whichever is the highest. The market value of a freehold interest is often more than the market value of a leasehold interest held by an occupying tenant, which often has little or no market value. That usually results in occupying tenants receiving less compensation than owners. As occupying tenants bear the burden of having to close or relocate their businesses, the existing allocation of loss payments is poorly targeted. It unduly favours investor owners over occupying businesses or agricultural tenants who incur greater costs. The Government believe that to be unfair. The clause therefore amends the 1973 Act to adjust the balance of loss payments in favour of occupiers. Under our changes, we are increasing the land and buildings amount payments, which will benefit occupiers as that is the payment that they usually receive. That will better reflect the level of disruption and inconvenience caused to them through compulsory purchase, compared with investor-owners. It also ensures that the compensation regime is fair. To be clear, the reforms to the CPO process and compensation rules will not encourage the use of any particular type of CPO or change the fundamental principle that there must always be a compelling case in the public interest for use of a CPO. The changes being made to the loss payments regime will benefit tenant farmers whose land interest is compulsorily acquired, as they will receive a fairer share of compensation to reflect the level of inconvenience that they experience from CPOs. The changes under the clause will not result in landowners being paid less than market value for the compulsory purchase of their interests. The clause also simplifies the method of calculating the buildings amount for occupier’s loss payments relating to non-agricultural land by using the gross internal area method instead of gross external area, which we believe is more consistent with industry standards. The clause applies to England only, apart from the change to the method of calculating buildings amounts, since the Welsh Ministers have devolved competence to reform loss payments for CPOs in Wales. I therefore see the clause as an integral part of ensuring that the CPO process is built on a fair and balanced compensation process, relative to the level of disruption and inconvenience caused to occupiers of land by a CPO. I commend the clause to the Committee. I am more than happy to respond in due course, but will first turn briefly to non-Government new clause 52, which seeks to introduce a change to the loss payment compensation regime under the Land Compensation Act 1973. The new clause would increase the amount that occupiers of buildings or land subject to a CPO would be entitled to, and place them on an equal footing with owners. Clause 88 already achieves, in part, what the shadow Minister is looking for: it increases the loss payment compensation due to occupiers of buildings and land in the way that the new clause seeks to do. The purpose of loss payments, however, is to reflect the inconvenience caused by compulsory purchase, and it is occupiers, rather than investor owners, who bear the greater burden in that respect because they are the ones who will need to close or relocate their businesses. As I said, the clause rebalances loss payment compensation to allow occupiers to claim a higher amount and landowners to claim a lower amount. We believe that that rebalancing of loss payment compensation in favour of occupiers is the right approach. While the clause does some of what new clause 52 seeks to achieve, elements of the new clause are problematic for the reasons I set out. I am afraid I will not be able to accept the new clause, and I ask the shadow Minister not to move it.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  The Opposition are at liberty to change their position on any policy that the previous Government introduced, but they do not want to change policy in this area as they believe that the power is proportionate and necessary. However, the right hon. Lady still tabled the new clause to signal that they may be willing to come back to it at some point. Is that broadly right?

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  Clause 92 amends the process for the confirmation of CPOs made under the New Towns Act 1981. Decisions to confirm CPOs made under the Acquisition of Land Act 1981, such as housing and planning CPOs, can be made by inspectors on the Secretary of State’s behalf, but currently, confirmation decisions on CPOs made under the New Towns Act must be taken by the relevant Secretary of State. Clause 92 introduces a power for confirmation decisions on CPOs made under the New Towns Act to be delegated to inspectors, although the Secretary of State will retain the ability to recover decisions for their determination. This change will ensure the decision-making process for CPOs facilitating new towns is streamlined and consistent with the confirmation of other CPOs. Clause 92 also amends the decision-making process for directions for the payment of additional compensation under schedule 2A to the Land Compensation Act 1961 where an acquiring authority has not fulfilled the commitments it relied on when it obtained a direction allowing it to acquire the land without hope value. The clause introduces a power for the Secretary of State to appoint inspectors to take decisions on applications for additional compensation. This will ensure that the process for considering applications for additional compensation is more efficient and consistent with the approach set out in clause 91, which allows for the delegation of decisions on CPOs. The clause will make the authorisation process more efficient, resulting in quicker decisions.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  If the shadow Minister will allow me, I will come back to him in writing on the specific point of how the Government will ensure that the relevant inspector has the correct skillset to make the necessary decisions. I think it is probably worth making two other points. First, how will the delegation of decisions to inspectors on CPOs made under the New Towns Act 1981 be considered? The appointment by the Secretary of State of an inspector to make the decision on a CPO made under the 1981 Act will be considered against the delegation criteria published in the Government’s guidance on the compulsory purchase process. Secondly, there is the important question of whether the decision on an application for additional compensation will be delegated to the same inspector who considered the original CPO with the direction removing hope value. In that regard, it is important to note that the timescales between the confirmation of a CPO with a direction removing hope value and the determination of an application for additional compensation will vary in each case. As such, it may be impractical for the inspector who considered the original CPO with the direction removing hope value to determine the direction for additional compensation, so we need that flexibility.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I welcome the support for the clause that hon. Members have indicated. The integration of transport infrastructure and its timely delivery are essential to delivering large-scale urban developments, and that is what the clause will facilitate. The shadow Minister and others asked me whether the wording is sufficient to deliver the objectives of the clause. I will reflect on that, as I always do, but we are clear that introducing a duty on local transport authorities to have regard to and co-operate with development corporations—this is our preferred approach in the instance—will facilitate co-operation. Each development corporation will respond to particular and localised delivery challenges, with differences in transport requirements for each development, so it is not possible to specify the nature of the co-operation required in all cases. In practical terms, officials in my Department will support the development corporation to have those conversations with local transport authorities, try to get a shared understanding and resolve transport challenges in particular circumstances. As a necessary minimum, we will expect local transport authorities to engage constructively with the development corporation’s plans for transport delivery and not unduly block the delivery of transport infrastructure that is necessary to unlock growth in the red line area.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  It is a pleasure to continue our proceedings with you in the Chair, Ms Jardine. We have now reached part 4 of the Bill, which concerns development corporations. Among other reforms, the Government are clear that boosting housing supply requires renewed focus on building large-scale new communities across England. Development corporations are statutory bodies established for the purpose of urban development and regeneration. They are important vehicles for delivering large-scale and complex regeneration and development projects. The four clauses in this part are designed to create a clearer, more flexible and more robust framework for their operation. Clause 79 strengthens development corporations by providing greater clarity and flexibility for them in terms of the variety, extent and types of geographical area over which they can operate. That will ensure that development corporations can be used to respond to site-specific challenges, without having to retrofit the scope of the project to match the development corporation model used. The changes are necessary to ensure that development corporations are suitable for modern development needs. They will enable delivery of more large-scale developments, including consented sites that have been stuck in the system for far too long. They will be vital to the delivery of new large-scale projects, such as the new generation of new towns to which the Government are committed. Existing legislation provides for five types of development corporation. It is probably worth mentioning them to aid our deliberations: the new town development corporation, the urban development corporation, the mayoral development corporation, the locally-led new town development corporation and the new locally-led urban development corporation, which was introduced in the Levelling-up and Regeneration Act 2023 and is subject to the commencement of its provisions. Clause 79 clarifies that new town development corporations can deliver urban extensions—expansions of existing urban sites—and that new town development corporations and urban development corporations can develop brownfield and greenfield sites. The clause also expands the remit of mayoral development corporations so that they can be used to deliver new settlements, including on greenfield sites, as well as urban regeneration projects. That will ensure that mayors have the right powers to deliver the range of places their communities need. Finally, the clause creates maximum application and flexibility for new town development corporations by allowing separate, non-contiguous parcels of land to be designated for development, aligning NTDCs with the other development corporation models. A single new town development corporation will also be able to oversee the laying out of more than one new town site. By making the legislative framework clearer and more flexible, the reforms will facilitate the use of development corporations and therefore unlock more sites for development, further supporting the Government’s growth mission and the delivery of 1.5 million new homes in this Parliament. I commend the clause to the Committee.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I take the shadow Minister’s point. He tempts me to opine on digital communication strategy across Government, but it is too early in the morning to do that. Different Government Departments are taking forward reform in different ways. I recognise the point he makes. It may or may not interest the Committee that I am required to do jury service in the coming weeks, which the Whips have some issue with. I received electronic and postal notice of that jury service. Different processes are in different stages of reform. We are very clear that, for this process, we want to move to default electronic communication, which has lots of administrative benefits, but we have made provision for those who do not feel that they can move, or want to move, to that type of notice. We will, as I have said, provide guidance for local authorities on best practice and ensure that routes to legal challenge on procedural grounds are minimised. However, I will take the hon. Member’s point away. I am happy to share it with ministerial colleagues in other Departments. I think it is a fair challenge that the Government should ensure that, across the board, to the extent that they possibly can, they have a uniform approach to moving to electronic communication in instances where they want to do so. Question put and agreed to . Clause 83 accordingly ordered to stand part of the Bill . Clause 84 Required content of newspaper notices Question proposed, That the clause stand part of the Bill.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I thank the shadow Minister for those fair and reasonable questions. I will provide a reassurance on the central mechanism by which we expect the Bill to operate. Electronic communication will become the default. Where parties do not agree to receive service of notice by electronic methods, or do not provide an electronic address for service, they will continue to receive notices by post, hand delivery or it being left at their address, so there is a clear mechanism for those who do not want to, or feel they cannot, receive such notices by electronic communication. However, authorities will need to ensure that the electronic address given by recipients for service of notice is the one used when they serve notices electronically on that person. Where an action is triggered by the receipt of a notice under the CPO process, the legislation is clear that if notice is served by electronic communication, the notice will be taken to have been received on the next working day—“working day” is defined in the legislation. We will, of course, provide guidance for local authorities on best practice, and ensure that routes to legal challenge on procedural grounds are maintained. The central point on which we must be clear is that where parties have agreed in writing to receive service of notice by electronic methods, the burden of responsibility for responding to an action triggered by receipt of a notice will lie solely with the recipient. If they do not feel able to administer the process on those grounds, there is an option to still receive notices in the existing manner.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  Clause 80 seeks to ensure that all types of development corporation must aim to contribute to sustainable development, climate change mitigation and adaption, and good design. The delivery of large-scale development and regeneration projects is vital to boost the housing supply, as I just mentioned. We must ensure, however, that large-scale new communities are delivered sustainably, with care for our climate, and that they have good design and quality at their heart. Currently, only new town development corporations are required to aim to contribute to sustainable development and have regard to the desirability of good design. The current legislative framework does not require any development corporation model to contribute to climate change mitigation and adaption. Clause 80 will change that by amending current legislation to ensure that all development corporations must aim to contribute to sustainable development, climate change mitigation and adaptation, and good design. Through the changes, we will create certainty for local communities that development corporations working in their areas will put sustainable development, climate change, and good design at the heart of delivery. I commend the simple, straightforward and, I hope, uncontroversial clause to the Committee.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I thank my hon. Friend for those questions. To be clear, the purpose of the clause is to ensure clarity around the remit and functions of development corporations. I understand his points about legacy and the wider contributions that development corporations can make, not least to construction and other skills areas. I am happy to take those up with him outside the Committee and to provide full responses on those points, but they are slightly outside the scope of this clause. Question put and agreed to. Clause 79 accordingly ordered to stand part of the Bill. Clause 80 Duties to have regard to sustainable development and climate change Question proposed, That the clause stand part of the Bill.

• 20 May 2025 · Planning and Infrastructure Bill (Eleventh sitting) · Hansard source

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  I thank all Members for their contributions. To the point made by my hon. Friend the Member for Basingstoke, I do not think that I can add much more to the very clear set of principles that have guided our approach in opening this particular part of the Bill. This is not particularly directed at the shadow Minister, but there has been a fair amount of scaremongering about what the compulsory purchase provisions in the Bill entail, which has not always been completely accurate—let me put it as gently as that. In response to a number of the challenges, I recognise why the shadow Minister raised his point, and I addressed the point about the Welsh Government. Welsh Ministers have devolved competence to reform loss payments for CPO in Wales, and therefore this clause applies in the way that I have set out. On the more substantive point, without getting into individual cases, I note the case that my hon. Friend the Member for Basingstoke made and I appreciate why he raised it, but he will also recognise why I cannot comment on specific instances of CPO use. On the general principle of the Bill, I will say a couple of things to the shadow Minister. First, we are not removing the ability for landowners and occupiers to claim for a basic occupier’s loss payment. The Government consider it necessary to rebalance how loss payments are allocated between owners and occupiers to ensure—this is the guiding principle—that those who experience the most level of disruption and inconvenience caused by compulsory purchase are compensated fairly. The shadow Minister pushed me to reassure him and to go away and reflect to ensure that the system has equal parity. We already have a two-tier system in place; there are differing rates for tenants and landowners. All we are seeking to do through this clause is rebalance the loss payment compensation in favour of occupiers for the reasons that I have given. Landowners and occupiers can still claim for loss payments in addition to claiming compensation for the market value of their land, disturbance costs and other reasonable costs incurred because of a CPO, such as legal and other professional fees. We may have a principal difference of opinion here; however, on the substantive point, although we have a two-tier system already, we think that it is right to rebalance that two-tier system and weight it slightly more in favour of occupiers of land so that they are entitled to the higher amount of 7.5%, and owners of land to the lower amount of 2.5%. We think that is right, and for that reason, we will not be able to accept new clause 52. Question put and agreed to. Clause 88 accordingly ordered to stand part of the Bill. Clause 89 Home loss payments: exclusions Question proposed, That the clause stand part of the Bill.