My Lords, it is four years since the general election, when the coalition partners made a pledge to the British people to cut our deficit
and get our economy growing once again. I am pleased to say those promises are very evidently being delivered. From the start we were clear that poor infrastructure in our country was among the biggest obstacles to growth.
We set out the most ambitious programme of investment and improvement for generations, investing a record £100 billion in schemes to improve our roads and railways, build affordable homes and boost our internet access. After decades in which successive Governments neglected our infrastructure, we also had to find ways to modernise the delivery of that infrastructure, to overcome administrative hurdles and to accelerate planning. This Bill will establish a new framework to allow stable long-term funding, to get better value for money and relieve unnecessary red tape. It will improve planning processes and allow us to get on with our building programme. It will help us to direct funding towards the best projects, improving returns and creating the right conditions for sustainable growth. It will boost jobs and economic competitiveness across areas such as transport, energy and housing, and it will speed up infrastructure development while ensuring that communities remain involved.
Your Lordships will be aware that the Government have committed more than £24 billion to upgrade England’s strategic road network between 2011 and 2021. We are also investing in maintaining our network, resurfacing 80% by 2021. We want roads to be in top condition to keep traffic running smoothly and are working with industry suppliers to accelerate delivery of road renewal. We are making the biggest investment in roads since the 1970s. Our national road network is being transformed to provide a world-class strategic network, tackling congestion, improving reliability and supporting jobs and growth.
Part 1 of the Bill will turn the Highways Agency into a government-owned company, with the stable, long-term funding needed to plan ahead effectively. We are also introducing in the Bill the framework for a roads investment strategy. The strategy will be agreed by the Government and the new company. It will set out the Government’s longer-term strategic vision for the strategic road network, investment plans and performance criteria, along with the necessary funding, just as happens for the railways. The new delivery model will allow the company to better prioritise its spending in terms of both maintenance requirements and capital demands. This is bound to lead to better asset management than we have now.
These measures are expected to save the taxpayer at least £2.6 billion over the next 10 years and will make the new arm’s-length company more directly responsible for delivery. Performance will be assessed through an independent monitor specialising in roads, based in the Office of Rail Regulation. Road users will also be given a voice through a road user watchdog based in Passenger Focus.
It is vital that we invest in our infrastructure. The Government have made a huge financial commitment to 2021. Now we need to get the best return on that investment, and putting an end to the stop/start nature of managing the supply chain is essential. To give but one example, since the 1950s it has been planned to
upgrade the A453 from Nottingham to the M1 to a dual carriageway. Proposals have started and stopped four times in the intervening years as Governments have changed their minds and gone back to the drawing board. It was only in 2012 that the work finally started. It is important that we end stop/start. It is also important that we look after our infrastructure.
Part of looking after our infrastructure is controlling the invasive non-native species that pose serious threats. The cost to the transport sector from invasive non-native species in Great Britain was estimated in 2008 to be about £81 million a year. The total cost to the economy of invasive non-native species is estimated at £1.7 billion per annum. This burden affects agriculture, horticulture and infrastructure.
In contrast to powers available under animal and plant health legislation to combat disease and pests, the nature conservation bodies have no powers to require landowners to act or powers of entry to carry out work themselves in respect of invasive non-native species, and they have to rely on reaching voluntary agreements. While most landowners are willing to enter into voluntary agreements, experience has shown that about 5% are not. The changes included in Part 2 will give powers for Ministers and nature conservation bodies in England and Wales to make species control orders that will require landowners to take action against invasive non-native species or permit the bodies to do so.
Early eradication is key to reducing eradication costs. The cost of eradicating water primrose has been estimated to be £73,000 if we eradicate it at its initial stage but more than £240 million if we allow it to become widespread in Great Britain.
When planning nationally significant infrastructure projects, it was never the aim to make the process burdensome for obtaining further development consents. Part 3 shows the Government’s commitment to increasing the pace of delivery for new developments and to manage our land assets more effectively. The Government are committed to securing investment in new nationally significant infrastructure projects as part of their efforts to rebuild the economy and to create new jobs. We want to speed up the process and get Britain building for our future.
Applications are large and detailed documents—up to 50,000 pages or more. Allowing inspectors to be appointed once the application has been accepted, rather than once it has been publicised, will give inspectors an additional six to eight weeks to become familiar with the issues. In addition, we will allow two inspectors to be appointed as examiners: at present one, three, four and five are allowed but not two. Since the workload is often too much for one inspector but not enough for three, around £200,000 a year can be saved by developers if an examination is conducted with two inspectors rather than three.
Currently, the process for making changes to a development consent order once consent has been granted is lengthy. The process is the same as if a completely new application is being submitted. A simpler process is required but only for very minor changes. This the Bill will now allow.
It is equally important to improve the procedure for discharging planning conditions so that local projects can proceed without unnecessary delay. The Bill introduces a deemed discharge for certain types of planning conditions which will help to ensure that conditions which require the approval of the local planning authority are discharged in a timely manner so that development, including new housing, that has already received planning permission can proceed, providing much needed certainty for applicants as to when decisions can be expected.
The issue of improving the outcomes for applicants around discharge of planning conditions is not new. A key recommendation of Joanna Killian and David Pretty’s comprehensive review of the planning application process in 2008 was that the Government should seek to speed up the process for discharging planning conditions. This included looking to introduce a default approval.
One of the ways in which we can stimulate the economy is by getting better use of public sector land assets by utilising surplus land that the Government own. The Homes and Communities Agency, the HCA, is a non-departmental public body that funds new affordable housing in England. We want to make it easier for the agency to work with local partners to create new affordable homes and thriving neighbourhoods.
The new public sector land programme from 2015-16 will see the transfer of a significant amount of surplus land from government departments and government arm’s-length bodies to the HCA. Land transfers from arm’s-length bodies can be administratively burdensome in terms of time and cost because they cannot be made to the HCA directly; instead the land has to be transferred first to a parent government department. We would like to ensure that in the future these transfers can be made more quickly and with reduced administration, so the Bill allows for a direct transfer to the HCA.
The Bill also corrects what was frankly an oversight in the legislation that set up the Homes and Communities Agency, the Greater London Authority and the mayoral development corporations. At present when these bodies purchase land they, like every other government body, override existing easements. However, unlike every other government body they cannot sell the land with the override in place. This Bill eliminates this anomaly, although it will not be used by bodies such as the Forestry Commission or National Parks, contrary to some recent, wholly unfounded, speculation. This applies only to private rights and not to those that are public.
The purchase and indeed development of property requires good, timely, accurate information. The Bill therefore sets up the framework for the Land Registry to modernise and digitise property searches. It will centralise and digitise local land charge information from the 348 local authorities that currently hold and deliver it. The result will be a far more efficient and cheaper service. The Land Registry will set a standardised national fee and turnaround time in contrast to the existing postcode lottery. Fees currently range between £3 and £96. A single source for improved access to property information will support a more streamlined conveyancing process and improve the ease of registering
a property in England and Wales. We want our renewable energy developers to work with local communities, allowing them to share in the benefits of renewable energy infrastructure projects. Part 4 would give communities the right to invest in their local renewable electricity schemes, transforming how they engage in these types of projects. It would give them the opportunity to have a real stake and sense of ownership in projects happening on their doorsteps.
The measures that I have discussed above are on the face of the Bill. In the Queen’s Speech and in other discussions, the Government have however drawn attention to other measures that are not on the face of the Bill at present but may be included by future amendments. These measures have specifically been: enhancing the United Kingdom’s energy independence and security by opening up access to shale and geothermal sites, maximising North Sea resources, and the construction of zero-carbon homes.
A third of UK energy demand is met by gas. If we do not develop shale, by 2025 we expect to be importing close to 70% of the gas that we consume. The Government therefore support the development of our own indigenous energy sources in a safe and sustainable manner. We believe that shale gas and oil and deep geothermal energy may hold huge potential for adding to the UK’s energy sources, helping to improve energy security, create jobs and meet carbon targets. We consider that the existing procedure for gaining underground access to be burdensome and unfit for new methods of drilling. A public consultation on underground access was opened on 23 May and will conclude on 15 August.
Subject to that consultation, future amendments to the Bill would provide companies with access for shale and geothermal extraction 300 metres or more below the surface without requiring individual landowner permission. In return, a payment would be made to the community. As I said, the Government’s consultation on this policy continues until 15 August 2014 and the legislation is entirely dependent on the outcome of that consultation.
I am well aware, however, that some noble Lords are concerned about the potential environmental impact of extraction from shale. The UK has over 50 years’ experience of regulating the onshore oil and gas industry. More than 2,000 wells have been drilled onshore during that time. The Government are confident that the UK oil and gas industry, including shale gas, will continue to be well regulated and any risks, particularly environmental risks, will be effectively mitigated.
The UK oil and gas industry is of national importance; it makes a substantial contribution to the economy, supporting around 450,000 jobs, and had record capital expenditure in 2013 of around £14 billion. Oil and gas will continue to be a vital part of the energy mix as we transition to a low-carbon economy, with indigenous oil and gas production supplying the equivalent of about half the UK’s primary energy demands.
Sir Ian Wood’s independent report in 2014 recommended changes to the recovery and stewardship regime, estimating that full and rapid implementation would deliver at least 3 billion to 4 billion barrels of oil equivalent—more than would otherwise be recovered
over the next 20 years. The report, in turn, estimates that this would bring over £200 billion additional value to the UK economy.
The Government accepted Wood’s recommendations in full in February 2014, and plan to introduce measures in the Bill to put the principle of maximising economic recovery of petroleum in the UK into statute. We also intend to introduce a power so that the costs of funding a larger, better-resourced regulator can be paid for by industry rather than by the taxpayer as is currently the case. This legislation is still being developed and will be made available at the earliest opportunity. It is our intention to introduce it before the end of Committee.
The Government have made a public commitment to ensure that new homes in England are zero carbon from 2016 onwards. Emissions from all homes represent over one-quarter of the total annual output of carbon emissions in the United Kingdom. It is crucial that we reduce this. The key consideration for the Government is to ensure that environmental policies are balanced against the need for continued economic growth in the housing sector.
The average bill for heating and lighting an older home is around £1,200 a year. In new homes, the amount would be less, and government changes to the building regulations have already reduced this amount by £200, with a further tightening of regulations having just come into force. New homes will be required to reduce all carbon emissions from energy used to heat and light those homes to zero. There will be a stronger energy-efficiency requirement, met by insulation measures, which may be augmented by on-site renewable energy measures such as solar panels. Where it is not possible to abate all these carbon emissions through energy efficiency measures—for example, through insulation or on-site renewable energy measures such as solar panels—the Government will allow developers to off-set those emissions that represent the difference through “allowable solutions”.
The principle of allowable solutions has been broadly accepted by the development industry as the most cost-effective way of delivering zero-carbon homes. A typical allowable solution measure might be either the retrofit of existing homes, particularly through solid wall insulation, or financial contributions for investment in low-carbon or renewable energy infrastructure. An explanation of how these schemes may work will be available for Committee stage.
In summary, the measures in the Bill will help create a better environment for investment in infrastructure across the transport, energy and land development sectors. The Government firmly believe in making it easier, quicker and simpler to get Britain building for our future. The Bill will help us build a stronger and more competitive economy that creates jobs, and provides families and businesses with better and reliable infrastructure to help us compete in the world.
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