This Fortnight in Westminster: Infrastructure, Investment and Climate Tensions

February

2025

Author

Vira Veselukha

🗳️ Devolution - Fast-Track Councils Confirmed

News:‍‍

‍Deputy Prime Minister Angela Rayner MP confirmed this week that local elections scheduled for May 2025 in nine council areas across England have been postponed for a year as part of Labour’s broader plans to restructure local government. The affected regions include East Sussex, West Sussex, Essex, Thurrock, Hampshire, Norfolk, Suffolk, Surrey, and the Isle of Wight. These areas will now be fast-tracked for a devolution deal, with newly elected mayors in May 2026.
Meanwhile, Kent County Council's devolution bid has been delayed, leaving uncertainty for local authorities and 15,000 workers. Kent County Council’s Leader Cllr Roger Gough and Medway’s Cllr Vince Maple had hoped for approval this week to replace Kent’s 14 councils with unitary authorities and an elected mayor. Local Government and Devolution Minister Jim McMahon MP praised their swift application but gave no reason for the delay, promising a decision soon.

Political Reactions:‍

The decision to postpone local elections in nine council areas has sparked strong backlash from opposition parties, with both the Liberal Democrats and Reform UK accusing the Conservatives and Labour of collusion to protect Tory-run councils from electoral losses.‍
Lib Dem leader Sir Ed Davey MP slammed the move, pointing out that all but two of the affected councils are Conservative-led. He called the decision a “disgraceful stitch-up”, claiming it was designed to shield failing Tory councils from voter backlash.‍
Reform UK accused Labour and the Tories of colluding to cancel 5.5 million votes, launching a “save democracy” petition while falsely claiming elections were cancelled, not postponed. Reform UK leader Nigel Farage MP slammed the move as “cowardice of the political class” vowing to run candidates in every district and positioning Reform as the true opposition aiming to win the next general election.

Next steps:

The delay allows the Government time to implement the changes and prepare for the transition to the new council structure.

✈️ Aviation - Major Airport Expansions Confirmed

News:

As widely expected, in a speech delivered in Oxfordshire last week, Rachel Reeve’s officially declared her support for the “badly needed” Heathrow third runway, citing economic growth as the number one priority of her government.
Reeves listed a number of benefits associated with the expansion, including increasing GDP by 0.43% by 2050, and the creation of 100,000 jobs. Plans for expansion at Luton Airport and Gatwick were also supported, although the Development Consent Order's (DCO) await an official decision.

Political Reactions:

Environment Secretary Steve Reed MP publicly backed the expansion, despite Ed Miliband MP’s well publicised opposition to the plans, should the expansion fail to “meet climate targets” that have been set by the government.
Leading Labour’s opposition, Mayor of London Sadiq Khan reiterated his opposition to expansion plans, citing issues of “noise, air pollution and meeting our climate targets”. Khan is now expected to lead a cross-party ‘rainbow coalition’ of London councils fighting the third runway.

What comes next?

This comes at a critical juncture in the UK’s climate strategy, where emissions reductions and environmental commitments are under intense scrutiny. This is a significant political signal from the Labour Government's intent on seeing economic growth in this Parliament.
A decision on the Gatwick DCO will be made by 27 February 2025, whilst Luton DCO is due to receive a decision by 3 April 2025.
Heathrow is still in the pre-app stage meanwhile and has been invited by the Government to submit an application to the Planning Inspectorate (PINS) by summer 2025. Once complete, Government will update the airports National Policy Statement (NPS).

☀️ Solar - Two Solar Farm DCO's Given Green Light

News:

In a significant move to accelerate the UK’s clean energy transition, Energy Minister Ed Miliband MP approved two large-scale solar projects: West Burton Solar Project and Heckington Fen Solar Park. Together, these solar farms have the potential to generate almost 1GW of electricity which can power over 200,000 homes, demonstrating the critical role of solar energy in the UK’s ambition to fully decarbonize the grid by 2030.

Political Reactions:

The approval of the two large solar farms in Lincolnshire sparked strong local opposition. Conservative Cllr Colin Davie, Executive Councillor for Environment, Economy, and Planning for Lincolnshire County Council, criticised the government for ignoring residents' concerns, highlighting how Lincolnshire now has 3,500 hectares of approved solar developments, with 6,400 more proposed.
Cllr Davie condemned the move as “trashing the countryside”, arguing industrial solar farms on agricultural land have caused widespread frustration amongst the local community and may not deliver affordable energy.

What comes next?

With nearly 60% of the 70 Nationally Significant Infrastructure Projects (NSIPs) in the pre-app stage of the planning process being solar projects, this conversation will continue to intensify across the country.
Ministers acknowledge tough decisions will be necessary to push forward large-scale projects that serve the national interest in the push for net zero. The approval of these projects signals strong policy support for solar expansion, reinforcing the UK’s position as a leader in clean energy. The focus now turns to execution and grid integration to maximise the impact of these renewable assets.

🏘️ Ox-Cam Corridor Takes Step Forwards

News:

Chancellor Rachel Reeves MP also unveiled a renewed commitment to unlock the economic potential of the Oxford-Cambridge Corridor, backed by sizeable public and private investment.
A £7.9 billion agreement with water companies will fund new reservoirs in the region, addressing critical water infrastructure needs and paving the way for future growth.
East West Rail will receive additional support, with further road upgrades also announced to bolster connectivity across the region.
Homes England and Cambridgeshire & Peterborough Combined Authority (CPCA) have also launched a Strategic Place Partnership (SPP) to drive local housing, regeneration, and growth. This aligns with the Government’s goal of delivering 1.5 million new homes over five years. The initiative will see significant investment in development in Northstowe, Peterbrough Station Quarter and Waterbeach New Town among other areas.

Political Reaction:

Deputy Chair of the National Infrastructure Commission Julia Prescot said that “accelerating investment” in the region “is essential” and that “the green light to unleash the Oxford to Cambridge corridor’s full economic potential is welcome after a number of false starts”.

What comes next?

The Government’s 10 year Infrastructure Strategy Working Paper is expected in June 2025, whilst the Planning & Infrastructure Bill is expected to be released by Ministry of Housing, Communities and Local Government (MHCLG) in March 2025 – providing further development and clarity on the OxCam corridor plans.

📃 Government Consultation - Land Use

The Department for Environment Food and Rural Affairs (DEFRA) has launched a new consultation that will run from 31st January to 25th April 2025 on land use strategy to equip decision-makers with the data needed to protect England’s most productive agricultural land. This initiative aims to bolster Britain’s food security amidst global uncertainties and the growing challenges of climate change.
By ensuring a "data-driven approach to land management", the strategy seeks to balance "sustainable development, food production, and environmental protection". The consultation invites stakeholders across agriculture, policy, and sustainability to shape a future where land use decisions support economic resilience and food supply stability.