The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)

My Lords, civil aviation is a cornerstone of our national prosperity, supporting jobs,investment and connectivity across the United Kingdom. In 2025 alone, UK airports handled 2.1 million commercial flights and nearly 300 million passengers. This highlights both the scale of the sector and the need for effective regulation. The Bill before your Lordships’ House will reinforce consumer protections, support economic growth and aviation infrastructure, and enable improved safety standards. In doing so, it will help ensure that the UK remains an attractive and competitive aviation hub for years to come. I am sure that noble Lords will wish to consider the case for this Bill. The sector has changed profoundly in recent years. Rapid technological advances, new aircraft capabilities and the emergence of new airspace users, such as drones, have created complexity for which the current framework was not designed. At the same time, the UK has lost certain powers to update regulation following EU exit. The sector has also faced external shocks,such as the recent instability in the Middle East and the unprecedented disruption of the Covid-19 pandemic. To manage this, we need a framework flexible enough to respond to volatility, embrace innovation and prioritise passengers. That is the purpose of this Bill. The Bill takes an important step to strengthen consumer protection for passengers. Although the sector serves millions well, when things go wrong some may face uncertainty and delay in securing redress. The Bill introduces a power to strengthen air passenger rights through secondary legislation, ensuring that they keep pace with case law, international standards and a changing landscape. This will allow the Government to tackle the issues that matter most to passengers: delays and cancellations, baggage loss or damage, injury or death, protections for disabled and less mobile passengers, and redress mechanisms for individuals. I am acutely aware of the difficulties that disabled passengers can encounter when flying, including poor and inappropriate service, long waiting times, and damaged and lost mobility aids. I have heard concerns expressed by noble Lords from all sides of the House on challenges that they have faced themselves or when travelling with family and friends. The noble Baroness, Lady Grey-Thompson, led my department’s Aviation Accessibility Task and Finish Group to identify ways to improve without legislation the travel experience of disabled air passengers, but this Bill will provide the Government with the powers to strengthen legal protections where necessary to ensure that the system works for all passengers, including those who require assistance. Crucially, the Bill strengthens enforcement. Unlike other regulators, the Civil Aviation Authority currently relies on court action to protect consumer rights. This is slow and resource intensive. The Bill will give the CAA direct consumer enforcement powers, aligning it with the Competition and Markets Authority. That will allow earlier and more effective intervention, quicker redress and greater passenger confidence. The Bill supports the modernisation of UK airspace. The UK has some of the busiest and most complex airspace in the world, yet much of its design dates back to the 1950s. Modernisation is therefore essential to maintain and improve safety, reliability and efficiency, as well as to reduce emissions and noise for communities. Without it, it is estimated that, by 2040, as many as one in five flights could face significant disruption. The Government have established the UK Airspace Design Service to deliver the most complex airspace changes, beginning with London. The Bill complements that work by strengthening the Secretary of State’s existing powers of direction, enabling her, where necessary, to direct those involved in airspace change to implement approved designs. This provides a more robust power of last resort, ensuring that modernisation can proceed effectively. The Bill broadens who may be charged for the provision of air traffic and air navigation services. This will ensure that the cost of providing better air services, including funding the UK Airspace Design Service, can continue to be recovered fairly, as new types of airspace service users emerge. On slot reform, the Bill enables a more agile and resilient approach to airport slot regulation, a framework that has remained largely unchanged since the early 1990s. Effective slot allocation is essential, not only in times of disruption but to maintain capacity, connectivity and competitiveness. The Government must be able to respond swiftly and proportionately when demand changes or operational pressures arise. The Bill therefore introduces a delegated power to amend slot regulations when needed, replacing powers lost after EU exit. Recent experience has shown why that matters. The pandemic demonstrated how quickly aviation operations can be disrupted, and more recent instability in the Middle East has reinforced how quickly external events can impact aviation, resulting in the need for an urgent statutory instrument to be brought before this House in the next few days using powers that will no longer be available after 23 June. The Bill therefore provides a much-needed mechanism for updating slot rules when circumstances require it in the future. Finally, the Bill strengthens the aviation safety framework. The UK has an excellent record on aviation safety and these measures will help ensure that it is maintained. However, since EU exit, all changes to safety regulations—mostly highly technical and routine updates—must be delivered through statutory instruments. This process is time-consuming, resource intensive and duplicative; it is unsuitable for an international and fast-moving sector such as aviation, where global safety standards evolve continuously. As a result, the UK is falling behind on its international obligations, which could impact the safety of the sector. The Bill aims to make safety rule-making faster and more efficient, by delegating technical aviation safety and operational standards to the Civil Aviation Authority. This will create a more responsive and agile framework, helping to ensure that safety requirements keep pace with international standards and the changing landscape. We recognise that noble Lords, and Members in the other place, will want to ensure appropriate ministerial and parliamentary oversight of this delegation. The Bill includes strong measures precisely to ensure this. The Secretary of State will set objectives and priorities for the Civil Aviation Authority, which will be laid before Parliament, including a forward look at rule-making tasks. The Secretary of State will be able to direct or even override, if necessary, the CAA’s exercise of its rule-making functions using her existing powers. The Bill also includes binding requirements on the Civil Aviation Authority to consult and notify affected parties, including Ministers, and a duty to report to Parliament on the exercise of this delegated power. This approach gives Parliament a more holistic forward and backward view on aviation safety rule-making, compared with the fragmented and piecemeal view it has in the current system. It also enables much-needed consolidation of the existing, fragmented sources of law, which would otherwise be impractical. This will make compliance for industry simpler and enhance safety. Alongside this, the Bill addresses an important gap in enforcement. It restores powers, lost after the EU exit, to amend and create aviation safety-related criminal offences where necessary. Without this, some safety rules cannot be fully enforced, making them harder to update and less effective in practice. Taken together, these measures will support a clearer, more effective regulatory framework by preserving the UK’s high safety standards, aligning better with international practice and sustaining public confidence in the safety of our aviation system. In closing, I know many noble Lords will be interested in how the Bill interacts with the Government’s support for a third runway at Heathrow. I should be clear: the Bill is designed to support the entire aviation sector, regardless of any decisions on expansion. Those with a particular interest in Heathrow will have an opportunity to scrutinise proposed changes to the airports national policy statement later this year. Before I conclude, I should note that this Bill is an important waypoint, not the end of the runway, for aviation reform—sorry. Following Royal Assent, further regulations will set out the detail for industry and allow for further scrutiny by your Lordships and Members in the other place. The Bill’ application is UK-wide, as aviation is a reserved matter, but some of its clauses touch on transferred matters in Northern Ireland. The Government are therefore seeking a legislative consent Motion from the Northern Ireland Assembly. This Bill is a measured and practical piece of legislation. It updates the legislative framework governing civil aviation in a way that is proportionate, targeted and grounded in the needs of a modern sector, while remaining consistent with the high standards this House would rightly expect. I hope noble Lords will recognise the value of these reforms and feel able to support the Bill’s passage today. I beg to move.