Matthew Pennycook MP: speeches 2025

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Speeches

15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Let me give the hon. Gentleman further reassurance. There are two things. First, we genuinely do not believe that that line would strengthen the legislation in any way, in the sense that it is ambiguous and would be an additional expectation on Natural England. More importantly, it is likely only to limit Natural England’s options in bringing forward the conservation measures under EDPs. I will give him an example: it would make it more difficult to do things such as pooling levy payments to fund larger-scale, more beneficial interventions over the EDP geography. I ask him to reconsider on that basis.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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No—the amendment is entirely at odds with the purpose and intent of clause 61, which is to disapply the requirement for assessment of environmental impact of a feature covered by an EDP once the development has committed to pay the nature restoration levy. In our view, therefore, the amendment would fundamentally undermine the operation of our approach, and for that reason we cannot accept it.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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It is a pleasure to serve once again with you in the Chair, Mrs Hobhouse. Let me respond first to amendment 54, tabled by the hon. Member for North Herefordshire. I will then turn to clause 61 and schedule 4. The hon. Lady’s amendment seeks to limit the circumstances in which Natural England can receive a nature restoration levy payment in respect of an environmental delivery plan. She made a number of points about the mitigation hierarchy and irreplaceable habitats. I will not repeat the debate we had on a previous clause in relation to existing protections in national planning policy, which will still have effect for irreplaceable habitats. On the mitigation hierarchy, we share her and the OEP’s view: it is a very important component of environmental law. Natural England will always want to consider the mitigation hierarchy when it is developing EDPs. We anticipate that Natural England will still prioritise avoidance and reduction of environmental harm in the first instance, not least because it is likely to deliver the best environmental outcomes at the lowest cost for developers. However, we do not believe that it should always apply. The flexibility provided by the Bill will allow for those cases where, in Natural England’s expert judgment, the strict appliance of the mitigation hierarchy would lead to sub-optimal outcomes, and where money could be spent in a far more effective way to achieve better outcomes for nature. The hon. Lady is absolutely right and we have been very clear about this point: it is the Government’s view that the Bill effectively maintains the mitigation hierarchy. As I have said, that is also the view of the chief executive of Natural England. There is flexibility built into the Bill, which we need.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Let me work through each of the amendments that have been tabled and spoken to. I will start with amendment 9, which was tabled and set out by the hon. Member for Taunton and Wellington. It requires that funds gathered through the nature restoration levy be spent without unreasonable delay. An environmental delivery plan will have had to meet the overall improvement test, as we have debated at length, to have been made. In designing the conservation measures in an environmental delivery plan, Natural England will have been aware that delivering measures at the earliest point in time is usually the easiest way to achieve that outcome. However, the appropriate timing to deliver a conservation measure may depend on the specific circumstances of each case and the nature of the conservation measures that represent the best outcomes for the environment in the view of Natural England, as the body preparing the EDP. Natural England’s discretion in these determinations should not, in our view, be unduly restrained by an obligation to spend money quickly, rather than well and effectively, to achieve the outcomes under the EDP. There is an option for Natural England to establish—
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I appreciate—as, no doubt, the development sector will—the hon. Gentleman’s concern for developers and the right of appeal. I do give him that commitment. I will go away and think about the point he raises. Question put and agreed to. Clause 65 accordingly ordered to stand part of the Bill. Clause 66 Use of nature restoration levy
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Clause 63 forms part of the wider group of clauses that provide the necessary powers to make regulations governing the operation of the nature restoration levy. The clause specifically deals with issues of liability and provides regulation-making powers to set out who is liable to pay the nature restoration levy and when that liability arises. Given the breadth of environmental circumstances and types of development that may be covered by an environmental delivery plan, the detailed operation of the levy is best addressed through regulations, with the powers to make regulations suitably constrained. Technical matters of liability, such as the withdrawal and cancellation of liability, will be set out in the regulations, with the clause providing the relevant powers. To provide certainty and clarity to developers, those regulations will be subject to the affirmative procedure. Clause 64 is another limb in the group of clauses that will govern the operation of the nature restoration levy. In particular, the clause provides the powers to make regulations in respect of how Natural England calculates and sets the nature restoration levy. Those regulations will, for example, frame how Natural England determines the cost of conservation measures to address the impact of development on the relevant environmental feature and the subsequent levy rate for developers. In doing so, regulations made under the clause will ensure matters of economic viability form part of the setting of rates under the charging schedule.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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We have debated various amendments to clause 66, so I will be brief. I will just put on the record the Government’s case for the Bill. The clause sets out that Natural England must spend money received through the nature restoration levy on conservation measures. More detail may be specified in regulations, as I have said, including the conservation measures that may be funded, maintenance activities and what can be treated as funding. In allowing Natural England to receive levy payments, it is vital that the payments are used to fund conservation measures that address the impacts of development on the environmental feature or features in relation to which the levy is charged. That is critical not only to ensuring that the impacts on the environmental feature are properly addressed, but to giving developers confidence that their contributions are not being used to replace wider action to restore nature. Such fairness is central to this model. In designing the nature restoration fund, we have had to account for a range of circumstances that could arise. For example, it may be necessary to allow Natural England to use money received through the levy to reimburse actions already taken to prepare for anticipated environmental impact. Similarly, there will often be circumstances where it is necessary to make sure that funding is sufficient to extend beyond the end date of the EDP to ensure that conservation measures put in place are properly maintained for the appropriate time period. The clause provides for such possibilities through subsection (4) and will support the delivery of the package of regulations that will underpin the nature restoration levy. The clause also ensures transparency on how levy payments will be used. That is why subsection (3) will require Natural England, through regulations, to publish a list setting out the various types of conservation measures that it may seek payment for and the procedure for doing so. The regulations will also be able to restrict Natural England’s spending of money received via the nature restoration levy on certain other activities. The measures are further supported by subsection (5), which allows regulations to specify monitoring and reporting practices that Natural England must take, including that it accounts for money received via the levy separately from its other funding sources. That is an important point. Importantly for developers, such transparency will mean that when it comes to reviewing the charging schedule, they will be able to understand clearly not only what they have been asked to contribute, but how it will be used. For those reasons, I commend the clause to the Committee. Question put and agreed to . Clause 66 accordingly ordered to stand part of the Bill. Clause 67 Collection of nature restoration levy
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Clause 65 will allow a right of appeal in relation to the calculation of the amount of the levy payable by a developer. As environmental delivery plans include charging schedules, which can set out the levy rates for different types of development, there is a need to ensure that there is a route for developers to appeal if they believe that the levy payable has been miscalculated. Crucially, the levy rates will be part of the draft environmental delivery plan, which will provide clarity as to the cost for developers, but we want to ensure that if developers believe that the rate has been miscalculated, they have a right to appeal. The appeal process will be set out in regulations, and the clause provides the detail of what those regulations may include. This is a simple and straightforward clause, and I commend it to the Committee.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I am not going to give way, but the hon. Lady can make a further contribution. However, this will be only where Natural England consider it appropriate and would deliver better outcomes for nature of over the course of a delivery plan. The hon. Lady’s amendment would remove that flexibility and undermine the purpose of these reforms, which is to maximise the impact of measures at a strategic scale. We are confident that this more strategic approach to the assessment of negative effects and delivery of conservation measures strikes the right balance and will result in better outcomes. As I said, and am more than happy to continue to repeat, I understand the importance of ensuring that this flexibility is used only where it needs to be, and that everyone can be confident that harm is being avoided wherever possible. I am giving further thought to ways to underpin that confidence. Clause 61 establishes the framework that will allow developers to pay the nature restoration levy, setting out the process by which developers can make a request to Natural England to pay the nature restoration levy in respect of their proposed development. If accepted by Natural England, the developer will then be committed to make the relevant payment, as set out in the charging schedule that will be published as part of the environmental delivery plan. The clause then sets out how the making of that payment affects the developer’s environmental obligations. For example, the legislation makes clear that the commitment by a developer to pay the nature restoration levy in respect of an environmental delivery plan addressing nutrient pollution removes the need for the developer to consider the impact of the development on an environmental feature in respect of nutrient pollution. Where payment of the levy is made mandatory by an environmental delivery plan, the clause removes the ability of a developer to discharge the relevant environmental obligation in any way other than through the payment of the nature restoration levy. In those circumstances, Natural England must set out the reasons why it considers it necessary to mandate the payment of the levy under the EDP. That will form part of the consultation on the draft EDP, and has been included to address situations where the environmental outcome can only be achieved with payments from all relevant developments, or where failing to capture payments from all relevant developments would render the EDP economically unviable. The nature restoration levy is central to our new strategic approach, ensuring that Natural England can secure funds to deliver conservation measures and to provide certainty to developers that the making of the payment discharges the relevant environmental obligation. I will come back to the shadow Ministers, the hon. Members for Hamble Valley and for Ruislip, Northwood and Pinner, as I have given a commitment in relation to previous clauses on their points about the interactions between the provisions in this Bill and those in the Wildlife and Countryside Act. That is a very complex matter, and we will set out more detail where we have it. In general terms—I say this with the proviso that regulations will bring forward further detail on how the levy will operate—the request and the payments are intended, essentially, to meet the scale and type of development that the EDP relates to. They cannot just be made on the basis of the discretion of what Natural England decides it wants. They have to relate to the conservation measures being put in place. We do, however, want to get the balance right between levy rates that ensure that development is economically viable—otherwise the EDP will not come forward in some instances—and not setting a rate that allows for gold-plating of projects, where that is not required. We will discuss that in more detail on future clauses. I turn to schedule 4. In establishing the nature restoration fund, there is a need to provide legal certainty on how the new approach interacts with existing environmental requirements. Critically, there is a need to establish that where developers make a payment to the nature restoration fund, that relieves the decision maker of any obligation to consider the impact on the environmental features that the EDP addresses, as those obligations will now be discharged on a strategic scale by Natural England. Schedule 4 achieves that by making clear that for each environmental feature identified in an EDP, be it a protected feature of a protected site or a protected species, the paying of the nature restoration levy removes many of the requirements for the developer under existing legislation. For example, where an EDP covers the impact of nutrient pollution on a protected site, and a developer pays the nature restoration levy, they will no longer be required to consider that environmental impact through wider environmental assessments. Similarly, where a protected species is identified as an environmental feature under an EDP, the making of a levy payment will mean that the developer will benefit from a deemed licence based on terms set in the EDP, which removes certain associated requirements for the developer under existing legislation. Crucially, the legislation is clear that the making of a payment will only be capable of addressing the environmental impact on the protected features covered by an EDP. Although we expect coverage to build up over time, it is only right that the discharge of environmental obligations is limited to the matters addressed in the environmental delivery plan. Therefore, if the development has other environmental impacts that are not covered by the EDP, they will continue to be assessed in the usual way. It is important to stress that the removal of the need for the developer to meet those environmental obligations will apply only when Natural England has sufficient evidence to draft an EDP, the Secretary of State has concluded that the EDP is sufficient to outweigh the impact of development, and the developer has committed to making the necessary nature restoration levy payment. Given the targeted nature of the changes to the regulations and Acts, and the need to provide legal certainty for the nature restoration fund to operate, I commend clause 61 and schedule 4 to the Committee.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I thank the hon. Lady for speaking to amendment 92, which, as she set out, seeks to remove the duty on the Secretary of State to consider economic viability when making regulations in respect of the nature restoration levy. We believe that it is important to consider viability in the setting of that levy, because excessive costs will mean either that developers will not want to pay into the nature restoration fund, or if they are forced to, that less development will come forward. This will be a particular issue for small and medium-sized housebuilders. Without developers paying into an EDP, the conservation measures that it sets out will not be delivered. The hon. Lady’s amendment also includes the aim of establishing a requirement that all conservation costs are funded entirely by the developer. Introducing requirements that all funding for conservation measures come from developers will also undermine Government’s ability to step in and provide funding should conservation measures not deliver the necessary effect. That is likely to lead to an increased cost for developers, or to force them to avoid using an EDP and to rely on existing systems that do not provide the same benefits for the environment as the nature restoration fund. For that reason, we cannot accept the hon. Lady’s amendment. Clause 62 is essential to the operation of this new strategic approach. It will empower the Secretary of State to make regulations in respect of the nature restoration levy. I therefore commend it as currently drafted to the Committee. As hon. Members will be aware, clause 70 will allow the Government to provide guidance to Natural England on the operation of the levy. It enables the Secretary of State to give guidance in relation to any matter connected with the nature restoration levy, and provides that Natural England, or any other public body to which such guidance is given, must have regard to it. Such guidance will provide clarity as to the operation of the nature restoration levy and speed up implementation. For those reasons, I commend these clauses to the Committee.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I am shaking my head, for the following reasons. I have made it clear that the nature restoration fund will ultimately work on the basis of full cost recovery. To be clear, these are costs for introducing compensation measures and discharging environmental obligations that Natural England at present does not handle; developers do them on a site-by-site basis. Although I do not underestimate the resourcing challenges across Government, the full cost recovery for the service provided will not impact on Natural England’s wider work. There will be full cost recovery for the preparation and delivery of environmental delivery plans for Natural England. I hope that that addresses the matter. In that sense, I do not think the shadow Minister is right to say that we are giving Natural England an additional responsibility, on top of its existing responsibilities, outside the provisions of the Bill here, for which full cost recovery will apply. There is a specific, direct link with the levy that is going to be raised. Broadly, I say to the shadow Minister—I am just flicking through the explanatory notes—that he has challenged me, and I accept the challenge, that there is not enough specificity in the regulation-making powers in the Bill. I have committed to regulations coming forward under the affirmative procedure. If he could go away and help my reflection by guiding me to another piece of legislation that has included the specificity around regulation-making powers that he would like to see, that would very much aid my deliberation.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I will not give way again; I will make some progress. In reinstating as it does the requirement for site-by-site assessments before a levy could be accepted, the amendment is contrary to that strategic approach and would hamper it. In proposing a strategic approach, as I have said before, we have been careful to ensure that this is taken forward only where there is a clear case that the benefits of the conservation measures under an environmental delivery plan outweigh the negative effect of development. That is precisely why clause 50 requires Natural England to set out the negative effect of the development to which the environmental delivery plan applies, alongside the conservation measures that Natural England will take to address the environmental impact and contribute to an overall environmental improvement. Only when it is satisfied that the conservation measures will outweigh the negative effects of development can the Secretary of State agree to make an environmental delivery plan. In establishing an alternative to the existing system, as I have said, the Bill intentionally allows for a more strategic approach to be taken to environmental assessment and flexibility to diverge from a restrictive application of the mitigation hierarchy. Without that flexibility, it will not operate as intended.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Clause 69 is a further building block in the system of regulations that will govern the operation of the nature restoration levy. Whereas regulations made under clause 68 will enable Natural England to take enforcement action to address non-payment of the nature restoration levy, clause 69 ensures that, where appropriate, any persons who have suffered loss or damage as a result of such enforcement action will have a route to compensation. The compensation process, including when and how a claim for compensation can be made and how the amount of compensation will be determined, may be set out in regulations, with the clause providing the framework for that process. Through the development of a new system, we intend to guard against such circumstances, but it is only right and prudent to provide for them. For that reason, I commend the clause to the committee. Question put and agreed to. Clause 69 accordingly ordered to stand part of the Bill. Clause 70 ordered to stand part of the Bill. Clause 71 Administering and implementing EDPs Question proposed, That the clause stand part of the Bill.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I did address this in some detail—the intention behind these clauses has obviously passed hon. Members by—but I would just like to make very clear, for the Guardian article that will no doubt appear tomorrow, that I have no particular animus against badgers in whatever form. However, we need these amendments to the Protection of Badgers Act to ensure operability under the nature restoration fund. They bring badger licences granted as part of an EDP in line with licences granted under the habitats regulations and the Wildlife and Countryside Act. In essence, all we are trying to do is to ensure that the licensing approach is relevant across all relevant species. I am happy to write to Members with more detail. I really do think, and I say this with all sincerity, that their concerns in this area are unfounded. I am happy to set out more detail in respect of badgers specifically.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I thank hon. Members for setting out the rationale for this group of proposals so clearly. From memory, we have already discussed at length, on a number of clauses, the resourcing issue for Natural England. To be clear—I have been candid about this—in setting up the nature restoration fund, we are asking Natural England to do a lot. The hon. Member for Taunton and Wellington referenced the £14 million allocated in the Budget to its work in this area.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Environmental delivery plans will, by their very nature, cross administrative boundaries and require input from a wide range of actors from across the system, be they local authorities, regulators or other public bodies. It is vital that Natural England can rely on their support and input to develop and implement environmental delivery plans. Clause 75 will establish a stand-alone duty to co-operate in respect of environmental delivery plans to ensure that relevant public bodies and public authorities engage and co-operate with Natural England. The duty will require such public bodies in England to provide reasonable assistance to Natural England and have regard to any guidance given by the Secretary of State about how the duty needs to be complied with. Of course, we recognise that such bodies will want to proactively engage on such matters, but a legislative duty will provide reassurance to local communities, environmental groups and developers that all parts of the system will work together to ensure that the plans can be put in place and properly implemented. The clause provides an important safeguard to ensure that all parts of the public sector work together to design and deliver EDPs. Clause 76 relates to Ramsar sites, which I am sure hon. Members are aware are wetlands of international importance designated under the convention on wetlands. In England alone, these amount to over 300,000 hectares of land. To date, in England, these sites have been given the protection of the habitats regulations assessment process, through policy as set out in the national planning policy framework and in Government guidance, rather than through legislation. To support the effective operation of the nature restoration fund work, we propose to place protections for Ramsar sites on a legislative footing, with clause 76 providing for Ramsar sites to be treated in the same way as European sites under the habitats regulations assessment process. Obligations relating to Ramsar sites will therefore have a legal basis, allowing environmental delivery plans and payments into the nature restoration fund to cover the impact of development on Ramsar sites. That is important, given the importance of the sites, and will mean that, going forward, such sites of global importance can benefit from the environmental uplift secured through an environmental delivery plan. In order to ensure the operability of the nature restoration fund, schedule 6 makes various necessary amendments to the Conservation of Habitats and Species Regulations 2017, the Wildlife and Countryside Act 1981, the Town and Country Planning Act 1990 and the Protection of Badgers Act 1992. Part 1 of the schedule places the protection of Ramsar sites, the country’s most important wetlands, on a statutory footing. That will apply the statutory protections of the habitats regulations assessment process to Ramsar sites, mirroring existing policy requirements set out in the national planning policy framework and national guidance. That approach will not only strengthen protections but ensure that Ramsar sites can be adequately covered by EDPs. Part 2 of schedule 6 makes various minor and consequential amendments to the Acts I have mentioned. In respect of the Protection of Badgers Act, those are to allow for the granting of a deemed licence, which can cover the activities necessary to allow development and to implement an EDP. The amendments also provide for greater alignment with licences granted in respect of other species. This part makes further amendments to provisions on wildlife licensing, again to ensure workability with an EDP. Part 2 of schedule 6 also excludes the preparation of EDPs and the implementation of conservation measures from the requirement to produce a strategic environmental assessment and the requirement to conduct an assessment under part 6 of the habitats regulations. Similarly, the schedule excludes the application of regulation 9 to the exercise of those functions. That approach reflects the fact that we have embedded the requirements in the process of the environmental delivery plan itself. For example, EDPs will consider alternatives, conduct robust public consultation, and carry out appropriate monitoring and reporting. By their very nature, EDPs will result in better outcomes for nature, but will do so by adopting a different approach, as we have discussed at length. Amendment 121 will be set out in more detail by the hon. Member for Taunton and Wellington. It seeks to remove the Government’s consequential amendments to the Protection of Badgers Act 1992. The Government recognise that badgers are an iconic British species and have already started immediate action to bring an end to the badger cull by the end of this Parliament. Our consequential amendments to the Act under schedule 6 to the Bill will ensure that the nature restoration fund is operable for badgers. As part of the fund, we are ensuring that any licences granted as part of an environmental delivery plan in respect of badgers will be in line with licences granted under the habitats regulations and the Wildlife and Countryside Act. Without the changes, environmental delivery plans could not be put in place to address the impact of development on badgers. In developing the new model, it is vital that Natural England is empowered to achieve the best possible environmental outcomes. That is why schedule 6 also gives Natural England the necessary range of tools to undertake conservation measures that support badgers. We will be guided by the evidence and Natural England’s expertise on which species are best suited to strategic approaches and how to apply the new tools. At this stage, however, we need to ensure that the legislation remains capable of supporting badgers. Given that explanation, I hope the hon. Member will not move amendment 121. I turn now to clause 77. In establishing the new system, the Government have been mindful of the appropriate role for Parliament in scrutinising regulations made in respect of the nature restoration fund. In drafting this clause, we sought to secure the appropriate parliamentary procedure for the making of regulations under this part of the Bill, which must be made by statutory instrument. As with all Bills, we have tailored the approach to reflect the significance of the regulations, with the most important being subject to additional scrutiny through the affirmative procedure. With that in mind, regulations relating to the nature restoration levy, regulations relating to the designation of a delivery body other than Natural England, and regulations making consequential amendments that amend an Act of Parliament will need to be approved by both Houses of Parliament. Any other statutory instruments containing regulations that are made under this part will go through the negative procedure. They will therefore become law unless there is an objection by either House of Parliament in the form of a resolution to annul. We think that strikes the right balance and makes the best and most appropriate use of parliamentary time. For that reason, I commend clause 77 to the Committee. Finally in this group, I turn to clause 78. In establishing the nature restoration fund, the legislation relies on a number of terms and phrases that define the core features and operation of the model. This clause acts as a reference list, bringing together the various definitions used in this part of the Bill. This clause is designed to assist the House and the public to navigate the clauses. Following introduction, we have sought to address minor issues in the drafting to ensure the effective operation of the statute book and to address any minor errors. Government amendments 103 to 111 make minor but necessary technical changes. I therefore commend clause 78 and the relevant Government amendments to the Committee.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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Both may well be possible in some instances, but may not be in alignment in others. We our principally concerned that money is spent well on the most effective conservation measures to achieve the best outcomes for nature. There is of course an option for Natural England to establish some mitigation measures prior to development starting. Furthermore, the Bill contains provisions requiring National England to report on its progress, to ensure that there is transparency over how money secured through the levy is being used. We discussed that in a debate on a previous amendment tabled by the hon. Member for Keighley and Ilkley, which had overlooked the fact that EDPs have a set timeframe. The shadow Minister will know that EDPs are required to be reported on twice over the EDP period. It is worth making the point that Natural England must also publish annual reports setting out how it is spending the money received via the levy and the effectiveness of any EDPs. That requirement is a minimum and, as we have discussed, Natural England may publish reports at any other time. With that explanation, I hope the hon. Member for Taunton and Wellington will withdraw the amendment.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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May I leave the hon. Gentleman with a point to reflect on? Natural England already undertakes a range of duties and makes interventions in support of positive nature outcomes, not least in terms of nutrient pollution, which we have discussed. It cannot do that through the approach we are talking about. Oversight of that is provided by the Department for Environment, Food and Rural Affairs, and that would remain in place. I ask him to reflect on the existing situation as it applies to Natural England, and how its very beneficial work is overseen at present.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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As the hon. Member for Taunton and Wellington argued, amendment 6 is designed to ensure that developers pay the nature restoration levy before a development can progress. The timeline of payment has been carefully considered by the Government, and the payment and timing of the levy will be agreed as part of the wider process of planning consent, and before development can progress. However, in developing the legislation, we recognise that EDPs will cover a broad range of circumstances, so there is a need to allow the payment of the nature restoration levy to be tailored to reflect the type and scale of development in each instance. For example, this would allow large, multi-phased developments to pay in line with development milestones, as opposed to there being a requirement for the total levy to be paid up front. That will ensure that the environmental delivery plan is a viable option for developers, which in turn will ensure that we are able to deliver the improved environmental outcomes through the nature restoration fund. Clause 67 already allows regulations to be created regarding the imposition of planning conditions to require payment of the levy—for example, allowing a condition that development cannot commence until the levy has been paid. If we took an overly prescriptive approach to the payment of the levy, we would risk reducing the overall impact of the new approach and driving more developers into using the existing process, which delivers less for nature, as we have argued previously. Having given that explanation, I hope that the hon. Member for Taunton and Wellington will consider withdrawing his amendment. Clause 67 establishes a requirement for nature restoration levy regulation to include provision relating to the collection of the levy. It also stipulates further provisions, including matters such as when and how the levy is to be paid. The regulation-making powers in the clause are vital to ensure that the levy can accommodate different scenarios, such as enabling other public authorities to collect the nature restoration levy on behalf of Natural England, and to provide for refunds in case of overpayment. Importantly, and as I have just set out, the regulations also allow for the imposition of planning conditions to require payment of the levy—for example, a condition that development cannot commence until the levy has been paid. We believe that that is the most appropriate mechanism to secure collection of the levy and for that reason I commend the clause to the Committee. I turn finally to clause 68, which continues to build the system of regulations that will govern the operation of the nature restoration levy and ensure that effective enforcement procedures are put in place. Ensuring that levy payments are properly captured is vital to ensuring that Natural England is able to deliver the conservation measures required under the EDP, in order to secure the necessary positive environmental outcomes. As the levy is the way in which the EDP is funded, it is vital that mechanisms are available to Natural England to enforce payment when a developer has breached their commitment to pay the levy. Although we expect the vast majority of developers to engage with the new process in good faith, non-payment of the levy could result in insufficient funding being available to address the environmental impact of development, which is unacceptable. That is why clause 68 sets out that regulations must include provision relating to enforcement of the levy, with consequences for late or failed payment. It also sets out that regulations may include provisions around penalties and charges, granting enforcement powers such as powers of entry, information collection and prosecution, and provisions regarding replications of existing tax enforcement measures and appeals. It is important that there is effective enforcement of the nature restoration levy. I have taken up the challenge put by the shadow Minister. I hope that he comes forward with further detail. As a former shadow Minister who has sat in the hon. Gentleman’s place while considering many pieces of legislation, I would argue that these regulation-making powers are sufficiently detailed. I count 13 subsections under clause 68, for example, with further detail in regulations to come. On that basis, I commend these clauses to the Committee.
15 May 2025 · Planning and Infrastructure Bill (Tenth sitting) · Hansard source
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I understand why the shadow Minister has sought to press me on this point, as I hope I have conveyed on previous clauses where we have touched upon compulsory purchase. We expect Natural England to use compulsory purchase orders as a last resort, and subject to appropriate scrutiny and oversight. It will need to be authorised by the Secretary of State. I hope I can reassure him up front that Secretary of State oversight of the CPO process, as it applies through the nature restoration fund, is the same as in the existing process. Schedule 5 makes it very clear that the Acquisition of Land Act 1981 applies. More generally, clause 72 provides Natural England with powers to compulsorily purchase land. As we have set out throughout this sitting, to be successful in delivering a win-win for nature and the economy, it is vital that Natural England has the necessary powers to secure and implement the conservation measures needed to protect the environment and enable Britain to get building. Although it is necessary to equip Natural England with those powers to ensure conservation measures can be delivered, they can be used only if the land is required for the purposes connected with a conservation measure set out in an environmental delivery plan, where attempts to acquire land by negotiation have failed, and where there is a compelling case in the public interest for use of the compulsory purchase powers. As a further safeguard, the use of those powers will need to be authorised by the Secretary of State. Equipping Natural England with compulsory purchase powers is not unusual or novel. I sought to address that point on Second Reading. Many public bodies with statutory powers have compulsory purchase powers, and Natural England can already make compulsory purchase orders in some circumstances. Clause 72 is supported by schedule 5, which applies the Acquisition of Land Act 1981 and makes necessary modifications to compulsory purchase compensation legislation to accommodate these changes. Government new clauses 112 to 118 support this approach to compulsory purchase by making a number of technical amendments to ensure the operability of the new powers. That includes protections in respect of the use of CPO powers where the use of them may affect those carrying out statutory functions. Finally, the package of amendments removes certain terms that are a hangover from outdated regulations and makes adjustments to the Compulsory Purchase Act 1965 to allow for powers of entry where notice has been given. As the Committee has already heard, the Government have taken a cautious approach to extending compulsory purchase powers but are clear that they need to be available in the context of the nature restoration fund to ensure that there is sufficient certainty that, where necessary and appropriate, compulsory purchase can be used to ensure conservation measures are delivered. I turn now to amendment 150, tabled by the right hon. Member for Louth and Horncastle (Victoria Atkins), which would restrict Natural England from utilising compulsory purchase powers for land that forms part of a dwelling or private garden. If I heard the shadow Minister correctly, it is a probing amendment, but I am more than happy to provide him with some further detail on the Government’s position. We agree that it will be crucial for the use of compulsory purchase powers to be appropriately constrained. That is why we have made sure that the current clauses provide that these powers can be used only where attempts to acquire land by negotiation have failed and there is a compelling case in the public interest for use of the compulsory purchase powers. That is supported by the further safeguard that the use of the powers will need to be authorised by the Secretary of State, which will include considering whether the public interest benefits of the acquisition justify interfering with the private rights of those affected. It is highly improbable that conservation measures in private gardens could form an ecologically essential component of an environmental delivery plan. I do not say it would be impossible, but it is highly improbable. Any restriction, however, of the use of the power where land contains an occupied dwelling or forms part of a private garden would be an unusual restriction on CPO powers, and would introduce unnecessary risks of complexity and delay when they are exercised. Any private dwellings will already benefit from additional protections, as I am sure the shadow Minister will know, under article 8 of the European convention on human rights. For that reason, and the existing safeguards within the Bill itself, I hope that the shadow Minister will withdraw the right hon. Lady’s amendment. Finally, I turn to new clause 107, which would provide for circumstances where Natural England must return land that has been compulsorily purchased. In providing Natural England with new powers to acquire land through compulsory purchase, the Government have been at pains to ensure that the powers operate with effective safeguards, as I have said, and are in line with the wider approach to compulsory purchase. As raised elsewhere in the debate, we are clear about the need to ensure that Natural England can, where appropriate, use such powers to secure land to deliver conservation measures. The new clause would undermine the efficacy of the proposed targeted powers by requiring land to be returned, at a loss to the taxpayer, where Natural England had to spend more money on conservation measures than the original contract price offered to the landowner. That would leave a hole not only in the public purse but in the environmental delivery plan in question, which would need to secure additional land to implement additional conservation measures that would have been secured on land now returned to the original owner. We share the desire of the shadow Minister to see the effective use of the powers—that is why the safeguards are in place—but I hope that, with that explanation, he will withdraw the amendment.
14 May 2025 · Planning and Infrastructure Bill (Eighth sitting) · Hansard source
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The Government have been consistently clear—from when we published the Bill and beforehand, in consulting on the general approach—that the nature restoration fund is not simply about streamlining how environmental obligations are discharged, but about using funds more effectively to secure better outcomes for the environment. Clause 55 sets out the process for the Secretary of State when making an environmental delivery plan. The process begins when Natural England sends a draft copy to the Secretary of State along with copies of all consultation responses and Natural England’s response to the consultation. The clause requires that the Secretary of State may only approve an environmental delivery plan once satisfied that it passes the overall improvement test. The test requires the Secretary of State to be satisfied that conservation measures are likely to be sufficient to outweigh the negative effect of the development on the conservation status of each identified environmental feature. That test reflects the shift to a strategic approach, which, when considered alongside the wider package of safeguards, ensures that environmental delivery plans will deliver the better outcomes outlined in the plan itself. Environmental delivery plans will be evidence-based documents that will be subject to public consultation before the Secretary of State makes the decision to approve the plan. The Secretary of State can request further information from Natural England if needed. The environmental delivery plan will also set out how the conservation measures will contribute to the overall improvement of the conservation status of the relevant environmental feature. The test is therefore not a limit on the ambition of environmental delivery plans, but a safeguard that the conservation measures are sufficient to deliver the desired outcomes. If the overall improvement test is met, the Secretary of State may make the environmental delivery plan. It is anticipated that the Secretary of State considers wider factors, such as whether the conservation measures that will be maintained beyond the environmental delivery plan end date are properly funded for that duration. Once an environmental delivery plan is approved, Natural England will be able to proceed with delivering the conservation measures identified and take payments from developers that wish to use the environmental delivery plan to discharge relevant environmental obligations. In considering the overall improvement test, the Government have tabled Government amendment 97, which clarifies that the Secretary of State must be satisfied that the overall improvement test is passed by the time of the end date of the environmental delivery plan. That will ensure that environmental delivery plans are focused on timely delivery of conservation measures and that the Secretary of State can approve an environmental delivery plan only when these measures and the environmental benefit will be secured by the end of the EDP. The amendment is supplemented by Government amendment 98, which clarifies that the negative effect that the Secretary of State must consider relates to the maximum amount of development covered by the environmental delivery plan. This clause also contains other matters governing the approach that the Secretary of State must take when deciding whether to make an environmental delivery plan, including the ability to request further information from Natural England. There will be times when the Secretary of State decides that an environmental delivery plan cannot be approved, so the clause ensures transparency if the Secretary of State decides not to approve an EDP. In concluding my comments on the purpose and effect of this clause, I want to be clear to the Committee that the Government recognise the importance of confidence in the outcomes that the nature restoration fund is designed to deliver. We have designed that model to provide for positive outcomes in all instances; that is the test that an EDP must meet. I recognise, however, that that confidence is an area for concern; we have heard from a number of hon. Members on this Committee and other stakeholders in that respect. It is vital that people have confidence. Although I am clear that that is what the legislation is designed to do, as I have made clear I am also listening to views on how we make sure that the approach is as effective as possible. We will be giving further thought to whether we should do more to underpin people’s confidence in that area. I turn to clause 56. When an environmental delivery plan is made, the clause sets a clear 28-day deadline within which it must be published; it will include the date of implementation. Prompt publication is important not only for transparency but because an environmental delivery plan cannot come into effect until it has been published. With that explanation, I commend the clauses and Government amendments to the Committee. I turn to amendment 119, tabled by the hon. Member for North Herefordshire. [ Interruption. ] I expect that she will speak to it after the Divisions in the House. Ordered, That the debate be now adjourned.— (Gen Kitchen.)
14 May 2025 · Planning and Infrastructure Bill (Eighth sitting) · Hansard source
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No, I think the hon. Gentleman is mistaken. As I have said, proposed new section 12D(4)(b), as drafted, enables spatial development strategies to describe infrastructure for both mitigation and adaptation. The Government are very clear that we need to have concern for both. As I have said, it does not need to be one or the other. I am more than happy to provide the hon. Gentleman with further detail—in writing, if he wishes—as to the operation of that subsection. On amendment 79, I recognise that the provision of social infrastructure is also an important consideration. Proposed new section 12D(4)(c) already allows spatial development strategies to describe infrastructure for the purposes of promoting or improving the social wellbeing of the area. I therefore do not consider that additional provision is needed in order to enable SDSs to describe social infrastructure. On amendment 123, I agree that, as we have discussed in relation to previous clauses, as the hon. Member for Didcot and Wantage noted, sufficient provision of health and education facilities, and other forms of essential infrastructure listed in the amendment, is critical in supporting and facilitating new development, and in ensuring that the needs of existing communities are met. I hope that I gave the hon. Gentleman, in relation to a previous clause, some reassurance about the Government’s intent in this policy area. I also recognise that in some cases, for a variety of issues, it can be related to whether sufficient developer contributions have been secured and so on, but in many cases there is an issue of co-ordination with bodies like ICBs. I think the Government could potentially do more in this area. I note the plea from the hon. Member for Taunton and Wellington for his local railway station, which I will ensure is passed on to the relevant Minister in the Department for Transport but, in terms of amendment 123, I do not agree that it is necessary to enable spatial development strategies to contribute to such an outcome. Proposed new section 12D(4), as drafted, already gives strategic planning authorities the scope to specify in their strategies a wide range of infrastructure types, including those listed in the amendment. On the issue of specifying infrastructure targets, I do not think it is appropriate for spatial development strategies themselves to set infrastructure targets. Again, that is because SDSs will not allocate specific sites, and therefore they are not likely to give sufficient certainty about the precise level of infrastructure needed at that stage. That is a role for subsequent local plans, which will need to consider infrastructure needs at a more granular level when sites are allocated and, as I have said before, need to be in general conformity with other plans. Spatial development strategies will, however, be able to specify the key infrastructure needs for the development that they identify. For the reasons that I have outlined, and because we do not want to fetter the production and development of spatial development strategies—it is for the areas that bring them forward to have a measure of discretion about their infrastructure and housing tenure needs—we do not think the amendments are necessary, and I request that hon. Members withdraw them.
14 May 2025 · Planning and Infrastructure Bill (Eighth sitting) · Hansard source
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In establishing this new approach, we recognise the need to ensure that developers have clarity around the required levels of contributions to benefit from an environmental delivery plan. This transparency will ensure that developers can factor in the cost of the levy, should they choose to use the EDP. Clause 51 establishes clear, understandable charging schedules with each environmental delivery plan, including one or more charging schedule. These schedules will set out how much developers will be required to pay to discharge their environmental obligations through the EDP and will reflect the environmental impact that the EDP is seeking to address. This may vary depending on the nature and size of the development, with the charging schedules being bespoke to each particular environmental delivery plan. In addition, the charging schedule will be regulated in accordance with clauses 62 to 69, which will allow regulations to be made setting out requirements for how these rates will be determined. I think this is probably the appropriate point to respond to the shadow Minister’s previous point. Those regulations would allow for fees to be index-linked to account for inflation, which is part of what he raised, but he mentioned build costs as well. Those regulations allow that scope.
14 May 2025 · Planning and Infrastructure Bill (Eighth sitting) · Hansard source
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In introducing the nature restoration fund, we have been clear that the new approach will be expert-led and ecologically sound. The Government recognise that environmental delivery plans will play an important role in reframing the relationship between development and the environment. It is therefore essential that the plans benefit from the relevant expertise and oversight. Clause 54 is central to securing the effective scrutiny of environmental delivery plans, and sets out clear requirements for Natural England to consult relevant bodies and the public. It mandates that Natural England seek the views of specified public bodies, including—as the shadow Minister noted—the Environment Agency and relevant local planning authorities. That could also include, where relevant, any mayoral combined authorities or mayoral combined county authorities. The clause also includes a power for the Secretary of State to add, via regulations, to the list of bodies that Natural England must consult, as well as to make regulations requiring public authorities to respond to consultations. The consultation process will not only lead to better environmental delivery plans, informed by relevant experts and local communities, but provide the Secretary of State with the assurance needed to approve an environmental delivery plan. We are making explicit provision for consultation, but we need to ensure that the consultation process is proportionate and does not unnecessarily delay environmental delivery plans coming forward. That is why the clause sets a consultation period of 28 working days from when the draft environmental delivery plan is published, unless regulations specify a longer period, and allows Natural England discretion over whether a redrafted environmental delivery plan requires re-consultation. In deciding whether to make an amendment, the Secretary of State must apply the overall improvement test. The clause ensures that environmental delivery plans will be appropriately scrutinised, while also being implemented at the pace we need in order to unlock development and make a meaningful contribution to nature recovery. Amendment 53, tabled by the hon. Member for North Herefordshire, echoes her previous amendment, as she rightly acknowledged. It would add the Climate Change Committee and the Office for Environmental Protection to the list of bodies that Natural England must consult when producing an environmental delivery plan. As set out previously, public consultation gives any organisation or individual an opportunity to provide views, without their being specifically listed in the legislation. The existing drafting would therefore allow the Office for Environmental Protection and the Climate Change Committee to provide comment through the consultation process where they think appropriate, rather than requiring Natural England to seek their views for every environmental delivery plan. It is important to note that Natural England can seek the views of any other public body, as appropriate, and the Secretary of State can expand the list to include further organisations at a later date. Opposition Members with concerns in this regard could perhaps outline why they think Natural England would not consult those bodies when it was taking forward an environmental delivery plan that it felt needed their input. We are confident that the approach in the Bill will allow any organisation or body that wants to engage with an EDP to have its voice heard. With that explanation, I hope the hon. Member for North Herefordshire will withdraw her amendment. Finally, amendment 125, tabled by the hon. Member for Keighley and Ilkley (Robbie Moore), would require Natural England to seek the views of impacted landowners, sea fishing businesses and owners of fishing rights when consulting on a draft EDP. Sea fishing is obviously an important industry and we understand the importance of ensuring that the views of sea fishers are heard. We also recognise that the views of landowners will be important when developing environmental delivery plans, and Natural England will of course work with landowners and all affected stakeholders. Similarly, DEFRA maintains good relationships with landowners whose land forms part of our network of protected sites, and will continue to do so following the implementation of the nature restoration fund. Crucially for amendment 125, clause 54 already ensures that Natural England consults publicly on draft EDPs, which will provide to any landowner or affected business, including sea fishing businesses and those with fishing rights to affected rivers and lakes, the proper opportunity to comment on a draft EDP. That public consultation will allow views to be heard and therefore it is not necessary to require that specified groups be consulted in addition to the consultees listed in clause 54(1). In addition to the clause already providing sufficient opportunity for consultation, it would not be practical to seek the views of all sea fishing businesses affected by an EDP, given the potential number of commercial sea fishers—particularly in areas with high concentrations of fishers and fishing communities. It would be difficult to identify and contact each one individually, as I think the amendment would make necessary, and a disproportionate layer of bureaucracy would be created that was unnecessary given the underlying requirement to consult publicly on EDPs. I hope that with that explanation, the shadow Minister will not press his amendment.
14 May 2025 · Planning and Infrastructure Bill (Eighth sitting) · Hansard source
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I hope that the hon. Gentleman will forgive me, but I am not going to provide the Committee with a running commentary on the Government’s internal deliberations in response to the OEP’s letter. I will not do that today. I totally understand why hon. Members are trying to draw me on the point, but I am not going to do that. I have set out the Government’s position, and I have made it very clear that we will reflect on the letter and on the points made today. Question put and agreed to . Clause 51 accordingly ordered to stand part of the Bill . Clause 52 Other requirements for an EDP Amendment proposed : 3, in clause 52, page 86, line 12, at end insert— “(10) An EDP must include a schedule setting out the timetable for the implementation of each conservation measure and for the reporting of results. (11) A schedule included under subsection (10) must ensure that, where the development to which the EDP applies is in Natural England’s opinion likely to cause significant environmental damage, the corresponding conservation measures result in an improvement in the conservation status of the identified features prior to the damage being caused. (12) In preparing a schedule under subsection (10) Natural England must have regard to the principle that enhancements should be delivered in advance of harm.”— (Ellie Chowns.) This amendment would require Environmental Delivery Plans to set out a timetable for, and thereafter report on, conservation measures, and require improvement of the conservation status of specified features before development takes place in areas where Natural England considers development could cause significant environmental damage. Question put, That the amendment be made.

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