Baroness Coffey:

Moved by Baroness Coffey

87: After Clause 51, insert the following new Clause—“Planning decisions: consideration of an EDPIn section 70 of the Town and Country Planning Act 1990 (determination of applications: general considerations), after paragraph (2)(aa) insert—“(ab) any Environmental Delivery Plan made under the Planning and Infrastructure Act 2025, so far as material to the application,”.”Member’s explanatory statementThis Amendment seeks to ensure that when making a planning decision, the local planning authority must take into account any EDP applying to the land in question.

My Lords, this Amendment is about consideration of an EDP by a local council. As I referred to on a previous group of amendments including an amendment in my name, because we have not gone to the full consideration of an EDP, it is not my intention to press this amendment later. This is effectively giving substance to what the chief executive of Natural England said to the Commons Committee considering this Bill, which was that if a council was not content with how an EDP was delivering, it would not have to give planning permission, but that is not expressed anywhere else in the Bill. That said, as we are yet to get properly to Part 3, I will reserve my judgment about whether to return to this another time. I beg to move.

I shall speak to Amendments 163A and 163B, tabled in my name. These seek to ensure that the nature restoration fund is properly aligned with the planning process and, in particular, that it is capable of supporting the larger and more complex developments. It is my view that the current drafting of Clause 66 risks preventing some of the larger, more complicated schemes from using an environmental delivery plan. These kinds of larger, more complicated developments often evolve after the development has started. We will hear more about this on Hillside, at whatever ungodly hour we get to it. For example, outline permission may be granted, but a developer may subsequently seek to change the planning conditions attached to the permission. There may be amendments to other aspects of the development under Section 96A or otherwise. It may also be the case that larger developments need to apply for retrospective planning permission after development has commenced to regularise the development when it has been built differently to the permission.

In its current form, Clause 66 allows developers to request to use an EDP only before development has commenced—a single snapshot in time. While I can understand why it was drafted in that way, inadvertently, it seems to me, it risks limiting the nrf by failing to accommodate the possibility of ever-evolving development schemes. If the Government are going to deliver their growth and housing targets, I assume that they would want to ensure that the NRF could support the full range of development projects, particularly given that the larger ones tend to have the greatest tendency to evolve during their often decades-long and certainly years-long lifetimes.

Amendment 163A would not require Natural England to accept such a development but would allow the design of EDPs to accommodate these scenarios where appropriate. Amendment 163B similarly does not require Natural England to accept a request from a promoter of such development to pay the levy, but it makes clear that deciding whether to accept it is guided by the Secretary of State’s policy on the matter. I encourage the Government to consider this amendment in the spirit in which it is tabled, to ensure the proper functioning of legislation and help the nature restoration fund to navigate the complexities of the planning system.

My Lords, in this group of amendments on the EDP consultation process, we are broadly in support of Amendment 87, tabled by the noble Baroness, Lady Coffey. We appreciate Amendments 163 and 163B, tabled by the noble Lord, Lord Banner, but we have rather more care in relation to these and will ask some questions about them.

Amendment 87 strikes us as a sensible and necessary clarification, seeking to require local planning authorities to have regard to an EDP relevant to the land in question. It closes an important procedural loop between the Bill’s new environmental mechanisms and the Town and Country Planning Act. I will move on to the other amendments, as I do not think that Amendment 87 will be pushed to a vote.

With Amendment 163A, we are entering more complex territory. Having listened to the noble Lord’s speech, I know that his amendment is intended in relation only to large developments. However, this amendment seeks to allow developers to use an EDP after development has commenced. This is a fundamental change to how the Bill was originally drafted. Although this amendment and the next one are short, they would have profound impacts on the nature of the Bill and the reasoning behind it. Given the late stage that we find ourselves in, it is worth treating these amendments with a degree of cautious scepticism. I have a number of questions on these amendments, particularly as I understand that the Minister might be intending to support them to some extent.

I understand the reasoning behind them. Projects evolve, impacts manifest late in the process and developers may wish to regularise matters through this pathway. Indeed, in principle, a degree of flexibility can be helpful for all concerned in the planning process. This could also help to speed things up, which is one of the core intentions of the Bill. However, flexibility, if poorly secured and accounted for, risks turning things instead into loopholes and could give the Government much more direct power and say over matters of importance. EDPs were created precisely to ensure that environmental protection is front-loaded, assessed, integrated and approved before the first spade hits the ground. If we are now to permit post-commencement plans, we are blurring that critical line. The Government clearly set that out in the original drafting of the Bill, so this is a very fundamental change.

Might this invite retrospective justification of impacts that should have been avoided or evaluated in advance, and what is the mechanism that will stop deliberate misuse of this new Clause should a developer be so minded to do that? How will post-commencement EDPs preserve the same environmental rigour as those agreed at the outset of the drafting of this Bill? What safeguards will ensure that the flexibility serves better compliance, not convenient regularisation after the fact? How will this affect the deterrent from starting work without proper authorisation? The credibility of EDPs and public trust depend on certainty that environmental obligations cannot be adjusted once the bulldozers roll in. This could increase uncertainty for developers themselves. For all the talk of streamlining, shifting assessments mid-project can introduce delay, legal risk and even greater reputational exposure.

What assurances can the Minister offer that such changes will not paradoxically lengthen timeframes and make further complications? Amendment 163B takes us a step further down this new road of divergence by requiring Natural England to have regard to guidance issued by the Secretary of State when deciding whether to accept a post-commencement request. On one reading, that offers consistency and greater ministerial oversight and control, but on another, perhaps more troubling, reading, it introduces a political lever over which the Government can exert pressure, which could impact the ability to have independent ecological assessments. Is it right that the Government are given these new powers, and what effective challenge would there be to them should they be agreed? What grounds, or hoops, would these powers need to go through before they are given?

The arguments that Natural England is independent and yet the Government are giving it direction cannot both be true. The Government originally set this Bill out with Natural England being independent, so where is the logic to flipping that fundamentally on its head? How would the independence of Natural England be protected under this arrangement if it is agreed? What, if any, real independence would exist, were this new arrangement to be put in place? Where would Natural England stand in relation to the Government? It seems like the Government are not only setting the homework task but are also the sole person marking that homework as well.

If it did happen, would it be transparent and would it be subject to any parliamentary scrutiny? It is really important that these decisions are published and that they are open. Natural England must continue to exercise professional discretion based on evidence and on statutory duty, not on ministerial pressure or preference. Environmental regulations lose their legitimacy the moment that scientific judgment is replaced by a possible political judgment. If the Government were minded to allow post-commencement EDPs at all, then surely we need stronger guarantees of transparency, clear eligibility thresholds, independent verification and public reporting of any decisions. Without that, such an innovation risks eroding confidence both in the system and in its underlying environmental purpose.

With those questions, I seek some clarification from the Minister, but these are fundamental changes that flip key parts of this element of the Bill on its head. They are introduced at a very late stage, and they raise a number of issues of concern.

My Lords, I will not make extensive comments on my noble friend Lady Coffey’s Amendment 87, as we will return to EDPs in future groups on Report. However, this amendment does have merit in that EDPs should be a relevant matter for making planning decisions.

My noble friend Lord Banner has expertly introduced Amendments 163A and 163B, and I have nothing to add except my support. I very much look forward to the response from the Minister.

My Lords, I thank the noble Baroness, Lady Coffey, for Amendment 87, which would require decision-makers to take account of the environmental delivery plans when making a planning decision under the Town and Country Planning Act. I agree, of course, that it is crucial that EDPs are integrated into the planning system. I hope I can provide the noble Baroness with the necessary assurance that her amendment is not necessary.

At its heart, an EDP enables a developer to discharge a relevant environmental obligation by making a commitment to pay the appropriate nature restoration levy. Once this commitment is made, the legislation removes the requirement to consider that specific environmental impact as part of any wider assessment, as the impact will be materially outweighed by the actions taken under the EDP. Therefore, while the planning decision-maker will need to consider a wide variety of matters when making individual planning decisions, it is not necessary for the decision-maker to consider the EDP itself. I therefore hope that, with this explanation, the noble Baroness will feel able to withdraw her amendment.

I turn now to Amendments 163A and 163B, tabled by the noble Lord, Lord Banner, which would help ensure that the nature restoration fund works effectively for large-scale development. It has always been our intention that Part 3 of the Bill should support development as much as possible. As we have repeatedly said, the nature restoration fund will benefit both development and nature. Therefore, we want to maximise its scope and consequently the benefits it will deliver. I am grateful to the noble Lord, Lord Banner, for tabling his amendments and I have looked at them very closely. As has been pointed out, the restriction in Clause 66 may in fact preclude a proportion of development from being able to come within scope of an EDP at all. Where, as is often the case, a large development needs to vary planning permission, for example, or apply for retrospective planning permission following changes outside of the developer’s control, we need to ensure the nrf can support such development, as failing to do so could significantly reduce the ability of the NRF to deliver the win-win that we all want to see for nature and for development.

While, of course, there will be complexities in how to manage large and complex development, this can be addressed through the design of EDPs and supported with government guidance. As with any development, it will be for Natural England to consider requests, having regard to that guidance. I hope I can reassure the noble Earl that this is not a way of skirting around the planning procedures in any way whatsoever; this is about access to the nature restoration fund, so all of the normal things that apply to planning permission would still apply—this is just about providing that access to the NRF once the development has started. With that explanation, I thank the noble Lord, Lord Banner, for tabling the amendments, for all the work he has done on this and for the meetings I had with him on it. I hope the House will join the Government in supporting his amendments.

My Lords, I beg leave to withdraw my Amendment.

Amendment 87 withdrawn.

Amendment 87A not moved.