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

My Lords, I thank the noble Lord, Lord Moylan, and the noble Baronesses, Lady Jones of Moulsecoomb and Lady Pidgeon, for their amendments on micromobility. I will begin with Amendments 104A and 105A. The noble Baroness is right that delivery devices such as pavement robots are used—and in the future may well be used very frequently—in Great Britain. This framework is designed to license the provision of shared micromobility vehicles. It is not designed to regulate how they are used on the streets, but I reassure the noble Baroness that all the categories that she spoke about could be included in the category of “non-passenger micromobility vehicles” in future under the Bill’s existing drafting, as it is broad enough to capture vehicles used for different purposes, including delivery vehicles. I turn to Amendments 105 and 106. The Bill sets out clear parameters for what could be considered a micromobility vehicle for the purposes of this licensing framework and Amendment 105 seeks to remove them. The framework will initially cover shared pedal and e-bikes, but it needs the flexibility to extend to other modes, such as e-scooters, once they have been regulated for under separate UK-wide regulation. The framework must be future-proof to be fit for purpose. We must retain flexibility or risk leaving our local leaders without the ability to effectively manage their streets every time a new technology enters the market. Retaining this flexibility without being overly broad is key and the parameters and definitions that we have set out in the Bill achieve this balance. These amendments would defeat this intention to the point of being prohibitive, leaving only cycles and e-cycles in scope. Amendment 107 seeks to remove the power of the Secretary of State to create exemptions to the requirement to hold a licence. A future-facing licensing framework for shared micromobility is essential to ensure that local leaders have the powers that they need to maximise the benefits of these schemes and decisively tackle any negative impacts. However, these requirements must be proportionate. To ensure this, it has always been our intention to exempt schemes from licensing requirements based on their scale and nature. It is not right that a community-led scheme providing five or six bikes for shared use in a village should be held to the same standard as a commercial operator applying for a licence for tens of thousands of bikes—and that it could face criminal prosecution for doing so. This power has been created to ensure that such situations are avoided. It is not possible to account in primary legislation for all the potential exemptions to licensing requirements that might be necessary to ensure proportionality, not least as this may differ by vehicle type and usage. Micromobility is a new industry, and new business models and technologies will continue to emerge. This framework is designed to account for the shared use of these future technologies on our streets. The impacts of different vehicle types on shared street space will be different and it is impossible to anticipate these future impacts with certainty right now. Therefore, the types of schemes that it is appropriate to exempt may vary by the type of shared micromobility vehicle or business model. For example, a scheme of 10 shared cycles may be small enough to exempt from licensing due to very limited impacts, but a scheme of 10 pavement delivery devices could have significantly different impacts that may make it appropriate to require a licence. That is why the flexibility to make further exemptions in regulations is essential to the effective future functioning of the framework. On Amendment 108, while I agree with the noble Baroness, Lady Pidgeon, that parking density and standards are critical to the success of shared micromobility licensing, I believe that the framework as introduced already tackles this in the most appropriate way. The framework already contains regulation-making powers on what must be included in a licence. That includes the power to set specific licence requirements on parking, if deemed necessary following consultation. On density, as with other traffic management measures, local authorities know their roads best and are best placed to consider what level of provision is appropriate and in what locations. However, we will set out statutory guidance following detailed consultation to help licensing authorities to make these decisions. Where the licensing authority and traffic authority are not the same, they will have a legal duty to co-operate on parking. I will be happy to discuss this subject, and Amendments 109 and 113, with the noble Baroness further after Committee. On Amendment 109, regarding parking for micromobility vehicles, and Amendment 110, tabled by the noble Lord, Lord Moylan, a key intention of the framework is to ensure the provision of shared cycle parking in the right spaces. So, while I appreciate the sentiment behind these amendments, I do not believe that they are needed. The licensing authority is intended to be the highest tier of local government to ensure that oversight of these schemes happens at the strategic level. However, traffic authorities are best placed to deliver effective parking solutions locally. The legal duty, as it exists in Schedule 5, has been drafted to facilitate collaborative working relationships between these bodies. These amendments would place the burden of resolving parking challenges entirely with traffic authorities, which could have the effect of making them junior partners in parking provision and would not be conducive to the genuine positive collaboration and partnership between authorities that is necessary to make schemes successful. The proposed amendment, tabled by the noble Baroness, Lady Pidgeon, also would not add any further specificity to the duty, given the ambiguity of what is meant by “sufficient parking”. That could create further challenges and opaqueness for local authorities to navigate as part of a licensing process that is intended to make managing these schemes more straightforward and efficient. Local leaders know their areas best, and effective and constructive co-operation will look different in different places. We may well set out in further detail in guidance what constructive co-operation could look like, but it is important that that is done following in-depth consultation to ensure its effectiveness. I turn to Amendment 111, tabled by the noble Lord, Lord Moylan. Licensing authorities will be able to set licence conditions on the parking of shared cycles and enforce these through the framework. The issues that the amendment seeks to address are largely ones that are likely to arise with illegal private vehicles rather than shared micromobility. Identifying the owner of a private cycle can be challenging but, in the case of shared e-cycles, it is commercially essential that the operator is clearly identifiable and engageable. The police and local authorities in certain circumstances already have powers to remove and dispose of broken-down, abandoned and obstructive or dangerously parked vehicles. For local authorities, the powers extend to cycles and other micromobility vehicles. Indeed, as the noble Lord observed, those very powers have been used by no less than the Royal Borough of Kensington and Chelsea to seize more than 1,000 obstructively parked rental e-bikes in 2025, according to the council’s own website. Similarly, concerns about inherently unsafe vehicles are generally focused on illegal electric motorcycles rather than shared e-cycles operated by legitimate businesses. The Government’s Crime and Policing Bill will strengthen existing police powers by removing the requirement for a warning to be issued before the seizure of vehicles being used illegally. On Amendment 112, on which the noble Lord, Lord Moylan, spoke, ensuring the safe use of shared micromobility vehicles is at the heart of this framework. We recognise the role that insurance plays in safety and accountability for operators, users and non-users of shared cycles. That is why we have taken powers that allow us to set out in regulations what insurance may need to be in place as part of a shared-cycle scheme. However, insurance is a commercially and legally complex area. Therefore, it is vital to first consult in depth to understand the full impacts of any potential requirements. I understand of course how crucial it is that we get the insurance question right, and that the consequences of not doing so could have serious impacts on lives and livelihoods. It will be particularly important to strike the right balance of responsibility between operators and users, and it may not be reasonable or appropriate to place the burden of obtaining insurance entirely on the user, as this amendment would do. This approach would also deviate from existing approaches to insurance for other shared modes, such as rental cars or rental e-scooters. Insurance requirements will need to align with any related aspects of licensing which may be deemed necessary following consultation, such as potential processes for user identity or age verification. It is important that flexibility exists to ensure such alignment in secondary legislation and thereby that the framework is as effective and rigorous as possible.