Baroness Taylor of Stevenage:

Moved by Baroness Taylor of Stevenage

1: Clause 65, page 105, line 4, at end insert—“(8A) The Secretary of State must make regulations setting out the appropriate prioritisation, by Natural England, of the different ways of addressing any negative effect of development on a protected species or on a protected feature of a protected site when—(a) preparing an EDP, or(b) considering requesting an Amendment to an EDP.”Member’s explanatory statement This amendment would place a requirement on the Secretary of State to make regulations setting out a prioritisation of the different ways in which the negative effect of development which may be subject to an EDP may be addressed. The regulations would apply to Natural England when preparing an EDP or considering an amendment to an EDP.

My Lords, the nature restoration fund is a key part of the Government’s vision for a planning system that delivers for both nature and people. Throughout the passage of the Bill, we have worked with Peers and wider stakeholders to ensure that everyone can be confident that, by taking a different approach, we can unlock better outcomes for nature. While the nrf proposes a different approach, this will be available only where there is clear evidence to show that this strategic approach will deliver better environmental outcomes.

In creating this new approach, we have developed the overall improvement test to ensure that EDPs deliver more than would be achieved under the current system, going further than offsetting impact and supporting the restoration of sites and species, in line with our wider ambitions. While it is right that we focus on outcomes, we have been clear that Natural England will of course carefully consider not only what is achieved but how it is achieved. That is why the Bill provides Natural England with the tools it needs to take action to avoid and reduce the impact of development, as well as deliver proactive conservation measures that will materially outweigh the impact of development on the relevant environmental feature.

While we are clear that the Bill will allow Natural England to take appropriate actions to deliver on the overall improvement test, in moving to a strategic approach there is a need to articulate how the principles of the existing mitigation hierarchy are expressed through the new system. I am very grateful to the noble Baronesses, Lady Parminter and Lady Grender, for their continued work with the Government to ensure that there is clarity as to how Natural England will consider the different ways of addressing any negative effect of development, including how such actions should be prioritised when developing an EDP.

This will not affect the experience for developers, nor the speed with which EDPs can come forward, but will provide transparency as to how Natural England will undertake the preparation of an EDP and how it should prioritise the actions available to it to deliver the overall improvement test. This Amendment will allow the Government to bring forward regulations setting out the appropriate prioritisation of actions taken to address the negative effect of development through an EDP.

I also wish to bring to the attention of the House a minor and technical correction to Clause 120 to remove a previous government amendment that was accidentally agreed on Report. That consequential amendment made provision for the commencement day of a substantive government amendment that would change the Secretary of State’s powers to issue holding directions to local planning authorities, which your Lordships defeated on Report. We have therefore removed the consequential amendment from the Bill.

While on my feet, I want to address a couple of further points following our debates on Report, raised in particular by the noble Lord, Lord Roborough. The first relates to the noble Lord’s request for an assurance that CPO powers under the Bill will not be misused and for clarification as to how these powers, and the purchase of land by public authorities more broadly, engage with the Crichel Down rules.

Where land acquired by or under a threat of compulsion by a non-departmental public body is surplus to requirements, there is an expectation that it will be offered back to the former owners or their successors. This expectation is established in case law and the procedure for offering land back is set out in the Crichel Down rules. This ensures that where the land is genuinely surplus following purchase by a public body, it will be made available to former owners. As we move forward with implementing the Bill, we would be happy to work with relevant stakeholders to consider how best to improve awareness and understanding of these rules.

Through the passage of the Bill, concerns have been raised on the behaviours surrounding the use of CPO powers. The Government have been clear that authorities using CPO powers should undertake engagement with all landowners to identify the impacts of their schemes, along with the mitigation measures that can be implemented. This advice was included in the latest update of the Government’s guidance on compulsory purchase, which was published in January this year.

The Government have listened carefully to the debates in the House and will continue to work with stakeholders to promote best practices to drive out bad behaviours and to ensure that the needs of landowners are fully considered. In addition, we will review the Government’s guidance and plain English booklets on compulsory purchase to ensure that they are as robust and clear as possible.

On compensation, the availability of advance payment of compensation is important to ensuring that landowners receive payment where they have been unable to reach agreement on the total amount of compensation due. Authorities are advised to ensure that prompt advance payments are made—otherwise, interest on the total compensation due will increase, resulting in the overall cost of development being higher.

The Government have been clear that the CPO reforms in the Bill do not target farmers or any other type of landowners. Nothing in the Bill changes the core principles of compulsory purchase. It must be used only where negotiations to acquire land by agreement have not succeeded and there is a compelling case in the public interest.

Finally, another area raised by the noble Lord, Lord Roborough, was in respect of the role of the private sector and landowners delivering the nature restoration fund. As set out in the recent all-Peers letter, EDPs create new opportunities that will help to grow nature service markets and support revenue diversification for farming and land management businesses. As committed to in Committee, the Government will publish guidance for Natural England regarding the role of the private sector in EDPs. This guidance will be clear that open and competitive procurement of goods and services is typically the best way to secure value for money and innovation. We will expect Natural England to preferentially adopt competitive procurement approaches for EDPs wherever possible, recognising that in some instances direct delivery will be necessary.

I hope that this provides reassurance that the NRF presents opportunities for landowners and private providers to work with Natural England to deliver high-quality nature services. I beg to move.

My Lords, I have a question about the Amendment that the Minister has just moved to Clause 65. She will recall from the debates on Report that there is a whole structure in Clause 63 that is designed to allow Natural England, when making an environmental delivery plan, to focus on one environmental feature and, in relation to that feature, to focus on one negative effect of the development on it. It is structured so that the others are excluded, notwithstanding the wise insertion into that clause of material relating to water, nutrient neutrality et cetera. The new amendment, where the Secretary of State can make regulations relating to prioritisation, does not refer to the negative effect on development identified in an environmental delivery plan, but it talks about

“addressing any negative effect of development on a protected species or on a protected feature of a protected site”.

To boil that down, my question is: is it the intention that the Secretary of State’s regulations would look at only the negative effect of development on a protected feature that is identified in an EDP, or is it, at an earlier stage, setting out prioritisation in relation to what may be the negative effects of a development on a particular feature? I am afraid that it makes a significant difference when and how the prioritisation comes into effect.

While I am on my feet, I say a big thank you to the Minister and her officials for the several—in fact, many—occasions on which they have provided helpful guidance and advice on the interpretation of the Act, but I reiterate my continuing request that we be told when the powers that are relevant to the implementation of this Bill but are contained in the Levelling-up and Regeneration Act are to be commenced or, more to the point, implemented. She knows that we are waiting on many of these and that they are as significant as some of the planning measures in the Bill itself.

My Lords, I rise extremely briefly to thank the Minister for her engagement and her reassurance on the exercise of CPO powers and the engagement of the private sector.

Gosh, that was brief. I will say a few words on behalf of our Benches. I apologise that the noble Baroness, Lady Pinnock, is stuck—there are no trains anywhere—so the House will have me, very briefly.

We have been pleased with the engagement that we have had with the Ministers throughout Report and leading up to Third Reading today, which has brought about some important changes in the Bill, including on the issue of how we plan for electric vehicles in infrastructure, and the commitment that the Minister has made to look again at spatial standards for housing so that hopefully we can ensure that more young homeless people can find accommodation in the future.

The Amendment that the Minister ably introduced—I am grateful for the many meetings about it that she and colleagues had with me and other Peers on these Benches—tries to give us reassurance that the environment will have the safeguards that are needed in this new process of strategic planning. I am particularly grateful that she has brought forward regulations—not guidance, which was an issue of concern—because we need regulations to provide the necessary clarity and transparency for those of us who are concerned about the need for environmental safeguards and the appropriate way in which the negative effects of developments will be addressed.

Can the Minister make clear how the mitigation hierarchy, a very well-established environmental principle which has served this country and indeed many countries around the world so well for so long, will apply in this new approach to strategic level planning for housing? How the mitigation hierarchy in this new process of EDPs will provide the necessary safeguards for the environment?

It is my hope that it will reduce the risk of viable impact avoidance and mitigation solutions being overlooked—I say it is my hope; at this stage, that is all it can be. However, it will definitely make it much clearer for those of us concerned about the environment just how Natural England will make its decisions. What evidence will it use in order to move forward with EDPs? That will give us some reassurance that the environmental protections will be in place. If they are not, we know there will be legal challenge. That is neither in the interests of the developers or, indeed, of the environment that will suffer.

It is a compromise on the amendment I introduced on Report, and I accept that. For some, will be a compromise too far; I accept that as well. I am a Liberal Democrat and prepared to face the political reality and the evidence that this Government believe this new approach with EDPs will deliver the housebuilding that we all want, while at the same time giving us on these Benches and others some security that the environmental backstops will be in place. That is what we need and what our ever-diminishing wildlife and habitats desperately need.

My Lords, I thank the Minister for listening and for bringing forward Amendment number 1, which this side of the House supports. We also take note of Amendment 2.

Amendment 1 agreed.