Lord Hendy of Richmond Hill (Lab)

I thank the noble Lord, Lord Jamieson, for moving this amendment on a new national lane rental scheme. As the noble Lord says, he and I have exchanged correspondence on this issue, for which I also thank him. This Government are committed to reducing disruption from street works and improving the efficiency of our road networks. Lane rental is a valuable tool that enables highway authorities to charge utilities up to £2,500 per day for works on the busiest roads at the busiest times. These charges incentivise quicker completion, off-peak scheduling and alternative locations to minimise disruption. Existing schemes, not only that in London with Transport for London—a scheme I happened to have the privilege of introducing in my time as the commissioner at Transport for London—but those in Kent, Surrey, East and West Sussex and other applications that are in train, show that lane rental encourages more thoughtful planning and has proven effective in reducing disruption where congestion is most acute. However, lane rental is not suitable for every area or every road. Many local authorities do not experience the levels of congestion needed to justify the administrative and financial burden of operating such a scheme. We remain committed to empowering local authorities but we must be mindful that there is a risk that extending lane rental powers universally could lead to an inconsistent and fragmented approach across the country. The Government recognise the value of local leadership. That is why, in our devolution White Paper, we committed—subject to consultation—to devolving approval of local lane rental schemes to mayoral strategic authorities. We have consulted on this proposal and will publish the results and next steps as soon as we can. In relation to proposed revenue ring-fencing, from January 2026, highway authorities operating lane rental schemes will be required to spend 50% of surplus lane rental charges on highway maintenance, including the remediation of potholes, and the remaining 50% on measures intended to reduce the disruption or other adverse effects arising because of street works. These requirements will be set out in legislation and updated guidance, ensuring a balanced and targeted use of funds. For the reasons outlined, I therefore ask the noble Lord to withdraw his amendment.