Baroness Taylor of Stevenage (Lab)

My Lords, in moving government Amendment 4, I will speak also to Amendment 256. This proposal responds to concerns raised by Peers about the need to address water scarcity, particularly through easing restrictions on reservoir construction to encourage more reservoir development. Growing demand and climate variability have placed increasing strain on existing water resources, reinforcing the need for additional storage capacity. Without new reservoir capacity, we risk being unable to meet that future demand. Reservoirs are fundamental to maintaining secure public water supplies and supporting economic growth, yet delivery, particularly of major schemes, has been too slow under current processes. This amendment removes a procedural hurdle, thereby streamlining the consenting process and enabling faster delivery of major water projects, after more than 30 years without new major reservoirs in England. Crucially, it enables third-party providers appointed by water undertakers to apply to deliver major water infrastructure, including reservoirs, transfer schemes and desalination plants, through the streamlined development consent order route. That will accelerate delivery of essential water infrastructure, help secure future water supplies, and unlock housing and economic growth, including delivery of new towns and our ambition for building 1.5 million homes this Parliament. Importantly, this change does not reduce environmental or public scrutiny: projects will continue to be subject to the full planning process, including statutory consultation and environmental assessment. This amendment is an important step in responding to concerns about water scarcity and supporting the pro-growth measures contained in the Bill. I thank noble Lords for their engagement on this matter to ensure that it is quicker and easier to consent and build the reservoirs we need so desperately, now and into the future. The Government are content to accept Amendments 5 to 7 in the name of the noble Lord, Lord Lansley. I am mindful that water infrastructure, particularly reservoirs, has had a difficult history in parts of the United Kingdom. Communities still remember the loss and upheaval caused by past projects, such as at Capel Celyn. It is therefore right that, as we modernise and expand the routes by which these essential schemes can be delivered, we also strengthen the mechanisms that guarantee their safety, integrity and public accountability. These amendments make a helpful clarification to government Amendment 4. They will ensure that where a third-party provider is appointed to deliver a large-scale water infrastructure project under the specified infrastructure projects regulations, that provider must be formally designated as an infrastructure provider under Regulation 8. This means that they will be fully subject to the statutory safeguards provided by those regulations. Those safeguards are vital. They ensure that any company delivering major water infrastructure is formally designated and operates within a framework of strict oversight and accountability. Ofwat’s supervision, the requirement for licensing and consultation, and the ability to challenge decisions through the Competition and Markets Authority, together provide a robust system to protect the public and the environment. I also clarify that these amendments do not alter the position for projects delivered through direct procurement for customers, known as DPC, the other competitive procurement route for third-party delivery of NSIPs. Under that model, water companies competitively appoint third-party providers to finance and deliver major infrastructure. This mechanism also has a strong regulatory framework, with Ofwat oversight, competitive tendering, and measures to protect customers from cost and delivery risks. DPC is a useful option for less complex NSIP-scale projects, providing an alternative route for competitive delivery. Under both schemes, projects benefit from strong regulatory protections for customers and the public, with clear oversight, risk management and accountability built in. By accepting these amendments, we will bring greater clarity and reassurance that the statutory protections apply fully to third-party providers under the SIPR framework. This means that these important projects can be taken forward with confidence—safely, transparently and in the public interest. Faster, flexible delivery of major water infrastructure is essential to secure resilient water supplies, support housebuilding and unlock local economic growth, while always ensuring that safety, environmental and consumer standards are maintained. I thank the noble Lord, Lord Lansley, for tabling these amendments and for his engagement on this important matter. I welcome Amendment 7A, which seeks to require that applicants for dam and reservoir schemes seek separate consent for the heritage impacts of their project outside the NSIP regime. While I recognise that there may be concerns about the future impact of these desperately needed water projects on heritage assets, the Government believe that the thorough process set out in the Planning Act already provides adequate protections. Applicants for all projects, including dam and reservoir schemes, are already required to include information relating to heritage impacts from their projects, including an assessment of any effects on such sites, when they submit their application. Further, where the development is subject to environmental impact assessment regulations because of the likely significant effects on the environment by virtue of its nature, size or location, the applicant is required to undertake an assessment of any likely heritage impacts, including cumulative impacts, as part of the environmental statement. This is also set out in the water resources national policy statement updated in July this year. Moreover, concerns may be raised by communities or statutory bodies through relevant representations where the examining authority considers that more information is required before reporting to the Secretary of State, and it can require it from applicants and schedule hearings. In determining applications, the Secretary of State will identify and assess the particular significance of any heritage asset that may be affected by the proposed development, including affecting the setting of a heritage asset, taking account of the evidence. The Secretary of State must also comply with the specific decision-making obligations relating to listed buildings, conservation areas and scheduled monuments placed on the Secretary of State set out in the Infrastructure Planning (Decisions) Regulations 2010. When making the decision, the Secretary of State must have regard to the desirability of preserving the listed building or its setting or any features of special architectural or historical interest that it possesses. Requiring applicants to undergo a separate process to secure these consents would delay delivery of these critical infrastructure projects, adding additional process, complexity and costs. This goes against the intention of the Planning Act 2008 regime, which was introduced to provide a one-stop shop approach for obtaining consents for large-scale, nationally significant infrastructure. Moreover, it would also hinder this Government’s ambitions to speed up and streamline the planning process for major infrastructure projects. I thank the noble Baroness, Lady Scott, for tabling Amendment 7B. It seeks to provide that in cases where a dam or reservoir is already defined as a nationally significant infrastructure project and will result in the demolition of 20 or more homes, those whose homes would be impacted are notified and may make representations to the Secretary of State before the scheme enters the NSIP planning route, with a view to perhaps preventing the project being determined through the NSIP regime. I acknowledge the significant impact that NSIP projects have, and that dam and reservoir schemes, in particular, can have when numerous homes near each other are demolished. It is clear, and we all agree, that a thorough process must be followed that allows all these issues to be understood before a decision is reached. That is why the Planning Act is so important. We believe that there are already sufficient legal requirements that provide adequate opportunity for impacted persons to be heard. I am afraid that the amendment seeks to insert discretion for the Secretary of State in a part of the process that does not exist. Dams and reservoirs that meet the threshold set out in Section 27 of the Planning Act 2008 are not directed by the relevant Secretary of State. They are automatically treated as NSIPs once they meet the threshold in Section 27. There is no other route to consent than via the Planning Act 2008. I understand that the amendment is driven by a desire to ensure that the voice of impacted individuals is heard throughout the process and before the Secretary of State makes a final decision whether to grant or refuse development consent. I say emphatically that this is already provided for by the Planning Act 2008. All individuals who are impacted or whose land is proposed to be compulsorily acquired are both recognised as affected persons and notified of an accepted application under Section 56. This notification means these persons are treated as interested parties under Section 102 without having to complete a registration form. This allows them to play an active role in the examination by submitting written and oral representations to the examining authority, so that their views and specific circumstances can be heard by that examining authority. These affected persons are able to submit notice to the Secretary of State requesting a compulsory acquisition hearing, which the examining authority must hold if a request is made by at least one affected person within the deadline set by the examining authority. Individuals who are not directly impacted or whose land is not being compulsorily acquired can also submit a relevant representation and complete a registration form to be considered as an interested party. This provides an opportunity for those living nearby to engage and share their concerns with the examination. Finally, local authorities are invited by the Secretary of State to submit a local impact report, which gives details of the likely impact of the proposed development on the authority’s area. This may include the impact on individuals within that area. I do not agree that, in cases where there are significant local impacts, it should automatically be the case that local decision-making should be followed. This would remove the ability of the Government to make decisions in the national interest and ensure sufficient infrastructure is built which meets a strategic rather than a local need. There is no easy answer to the impact of projects on individuals and communities. However, the Planning Act 2008 provides a means through which to balance the interests the nation has in building the infrastructure it needs, particularly water infrastructure, with the interests of those acutely impacted. Applicants will be expected to argue why alternative sites are not appropriate and how impacts, where possible, may be mitigated. For all those reasons, I hope that the noble Baroness, Lady Scott, will not press her amendment. On Amendment 56, the Government already take steps to facilitate the building of both small and large reservoirs, and £104 billion of private sector investment has been secured through Ofwat’s price review. We continue to support farmers to develop local resource options to secure water supplies. Reservoir safety legislation does not prevent new reservoirs being constructed but ensures that structures are well built and maintained. Reservoirs which store water above ground level pose a potential risk to life, property, business and the environment, and would cause economic disruption to local communities if the dam structure were to fail. These risks are managed through reservoir safety regulation. Reservoirs which store water below ground do not pose the same risks and so are out of scope of reservoir safety regulation. The Government’s advice to farmers and landowners is to consider options for non-raised water storage first. The Government are intending to consult soon on proposals to improve reservoir safety regulation, including making the requirements more tailored to the level of hazard posed and bringing some smaller raised reservoirs into scope. These proposals do not alter the need for more reservoirs, nor do they prevent new ones being built, but are to ensure that reservoir dams are structurally sound and that flood risks for communities downstream are effectively managed. There is already a permitted development right which enables the creation of on-farm reservoirs where they are reasonably necessary for agricultural purposes. Under this agricultural permitted development right, farmers can create ponds and on-farm reservoirs, subject to certain limitations and conditions, to manage and control impacts of development. We have not got the exact numbers but I believe there are around 3,000, so people are already taking advantage of that. Changes to permitted development rights are brought forward through secondary legislation, as amendments to the general permitted development order, often following consultation. Carrying out a public consultation ensures the views of the public, including those who will benefit from the rights created, are taken into account. It also allows for consideration of any potential impacts of the proposal and how these might be mitigated. The Government will continue to keep permitted development rights under review. It is important that new reservoirs are built in locations where they do not pose a flood risk for local communities, and that existing reservoir dams are structurally safe. I thank the noble Baroness for tabling this amendment and ask that she does not press it, based on the actions already being taken forward to review safety regulations impacting small, low-hazard reservoirs, and the subsequent secondary route to make any necessary changes to encourage their creation. I beg to move. Amendment 5 (to Amendment 4)