Baroness Taylor of Stevenage (Lab)

I thank the noble Baronesses, Lady Coffey, Lady Pinnock, Lady Scott of Bybrook—the noble Lord, Lord Jamieson, spoke to her amendments—and Lady Miller of Chilthorne Domer, for their amendments to Clauses 4 and 5. I am also grateful to Members across the Committee for the way in which they have engaged with these amendments and what we in government recognise as a significant evolution to the nationally significant infrastructure projects regime. I am sure we all have experiences of the best in consultation—with a developer that not only consults but truly engages with communities over a period of time to get a better development—and those at the opposite end that carry out a half-hearted tick-box exercise and then crack on without changing anything, keeping a laser focus on their bottom line. We want to encourage the former, not the latter. All the amendments in this group seek, in one way or another, to reverse changes made by the Government in the other place. Those changes will remove the statutory duty for applicants to consult during the preparation of an application for a development consent order. These are significant reforms to the NSIP regime and therefore deserve our attention. It may be helpful to revisit the rationale behind the Government’s decision to amend the Planning Act in this way. As I outlined in my Written Ministerial Statement on 23 April, the Government are committed to driving economic growth and taking decisions on 150 major economic infrastructure projects before the end of the Parliament. The level of ambition here is high, as indeed it should be. The UK suffers from outdated and inadequate infrastructure, which is holding us back, not only in economic but in social terms. To deliver new roads, low-carbon energy infrastructure and reservoirs, the UK and its communities need to prosper. We must be open to change, and we are willing to do things differently. I sense a change in public perception on this as well. I think people are beginning to realise that if we want cheaper electricity, and if we want water available for housing and general use, we need to move more quickly to develop the infrastructure we need. The Government will meet our critical infrastructure commitments only if we take this opportunity to address the inefficiencies that have crept into the NSIP regime over time. One of the most pressing issues is the growing duration of the pre-application phase for projects. In 2021, the average time to secure consent had risen to 4.2 years—up from 2.6 years in 2012. Over this same period, average pre-application timescales doubled. We all recognise that that trend is just not sustainable. In response to the question from the noble Lord, Lord Jamieson, over the past year, the Government have listened to feedback from the bodies and stakeholders most familiar with the development consent order process. That includes developers and practitioners, legal experts, local authorities, statutory bodies and a range of other interested bodies that play very important roles in the process. Through those discussions, it has become clear that the statutory consultation requirements under the Planning Act, though well intended, are now driving perverse outcomes and unintended consequences. To answer the point from the noble Baroness, Lady Neville-Rolfe, there are a number of reasons why that is the case, including those that she stated and others. The legislative requirements are too prescriptive; rather than fostering the meaningful dialogue that we all want to see, the process has become overly procedural, encouraging risk aversion, excessive documentation—we have already heard about this—and a reluctance on the part of applicants even to adapt proposals for fear of triggering further rounds of consultation. That has led to confusion for communities and delays for developers. In responding to the point from the noble Baroness, Lady Miller, where there is consultation, an application would normally include key elements of that consultation in the report to the planning body. Although developers have to state their responses to that, even now they do not need to do anything about what the consultation said; they just have to say why they are not doing whatever they have been asked to do. There will often be mitigations in place, but there do not have to be. Given all these concerns, it is clear that the statutory consultation requirements—uncommon in other planning regimes—are now acting as an absolute brake on progress. The Bill therefore proposes to align the NSIP regime more closely with other planning frameworks by removing these statutory obligations at the pre-application stage. This change is expected to reduce the average time taken to submit applications by around a year and deliver savings of more than £1 billion across the current project pipeline. In the long term, faster delivery will also help reduce household bills. As set out in my Statement of 23 April, the Government remain firmly committed to a planning system that supports high-quality applications and delivers benefits for both the nation and local communities. We all recognise that the best applications are those shaped through early and constructive engagement. As the Housing Minister emphasised in the other place, we still expect the NSIP regime to operate on a front-loaded basis, with well-developed proposals entering the system and progressing to predictable timescales. In answer to the noble Baroness, Lady Neville-Rolfe, I do not think there is any objection to voluntary pre-consultation if that is what developers choose to do. Experience from other planning regimes shows that meaningful engagement can and does take place without statutory compulsion, and that developers are best placed to judge how to take a proportionate approach to consult on their applications, which vary in relation to their scale, location and circumstances. The development consent order process also incentivises high-quality submissions. In order to proceed through examination within statutory timescales, we are confident that developers will continue to engage proactively so that they are well prepared. As well as any consultation and engagement during the early stages of an application’s development, interested parties will still have the opportunity to raise objections, contribute views and present evidence through participation in the examination process. To support and inform the implementation of these changes, the Government will launch a consultation about guidance later this summer, which will set out that best practice involves developers undertaking consultation and engagement prior to submitting an application. This will help to ensure that applications remain robust and responsive to local concerns. The NSIP regime relies on developers bringing projects forward to deliver national policy and meet the UK need for infrastructure. We know that the industry has responded positively to the removal of the statutory requirement, with many major developers reaffirming their commitment to meaningful engagement. They are committed to exploring new and better ways to engage with communities. If these amendments were accepted, we would risk undermining the very purpose of the Bill and the will of Members in the other place, who requested this change to deliver lasting and transformative improvements to the NSIP regime. The current system would remain burdened by unnecessary delays, risk-averse behaviours and a lack of clarity for communities. For these reasons, I respectfully urge noble Lords not to press these amendments. I turn to Clause 5 and the amendments tabled to it. However, given the importance of Clause 5, I hope noble Lords will allow me briefly to set out the intended impact of the clause before turning to the amendments in question. The clause contains important changes which will enable the Government to deliver on the policy intent of the changes through Clause 4, which, as we have discussed today, removes statutory consultation requirements at the pre-application stage.