EU Signals Trade Deal Risk as UK Planning Bill Advances
Brussels warns that the UK’s new Planning and Infrastructure Bill could breach level-playing-field rules underpinning the EU-UK trade agreement
The European Union has expressed serious concern that the United Kingdom’s Planning and Infrastructure Bill could jeopardise its free-trade framework with Britain by diluting environmental protections and undermining the level-playing-field commitments at the heart of the EU-UK Trade and Cooperation Agreement (TCA).
The legislation, currently before the House of Lords, introduces a Nature Restoration Fund allowing developers to pay a levy instead of adhering to existing habitat-protection rules, and enables construction on designated wildlife sites provided environmental improvements are delivered within ten years.
The EU argues this constitutes regression in standards, contravening the non-regression clause of the TCA.
Europe’s ambassador to the UK, Pedro Serrano, was reported to have met Environment Secretary Emma Reynolds and warned explicitly that the bill “could flout” the level-playing-field rules that bar the UK from gaining competitive advantage through weaker regulation.
The ambassador has since denied making that statement.
The EU also cautions that the bill may jeopardise UK access to the European electricity market, a vital concern given that the UK currently imports some 16 per cent of its electricity from the bloc.
The UK government, for its part, insists the reforms will not regress environmental standards — claiming they will deliver “a win-win for nature and development” and maintain full commitment to the TCA.
The bill has been framed by ministers as a lever to unlock housing, transport and clean-energy infrastructure by speeding approval processes and enabling strategic land-use reform, including reform of Nationally Significant Infrastructure Projects and the introduction of Strategic Development Strategies outside London.
Environmental advocates say that the new regime favours growth at the potential cost of ecological safeguards; the EU shares this concern, noting that Treasury claw-back powers over the Nature Restoration Fund mean the levy may not be entirely ring-fenced for nature recovery.
With the UK government seeking a “reset” in its relationship with the European Union under Prime Minister Keir Starmer, the unfolding dispute risks placing fresh strain on cooperation efforts.
The coming weeks in Parliament and between London and Brussels may determine whether the bill can be amended to avoid triggering formal dispute-settlement procedures under the trade deal.
The legislation, currently before the House of Lords, introduces a Nature Restoration Fund allowing developers to pay a levy instead of adhering to existing habitat-protection rules, and enables construction on designated wildlife sites provided environmental improvements are delivered within ten years.
The EU argues this constitutes regression in standards, contravening the non-regression clause of the TCA.
Europe’s ambassador to the UK, Pedro Serrano, was reported to have met Environment Secretary Emma Reynolds and warned explicitly that the bill “could flout” the level-playing-field rules that bar the UK from gaining competitive advantage through weaker regulation.
The ambassador has since denied making that statement.
The EU also cautions that the bill may jeopardise UK access to the European electricity market, a vital concern given that the UK currently imports some 16 per cent of its electricity from the bloc.
The UK government, for its part, insists the reforms will not regress environmental standards — claiming they will deliver “a win-win for nature and development” and maintain full commitment to the TCA.
The bill has been framed by ministers as a lever to unlock housing, transport and clean-energy infrastructure by speeding approval processes and enabling strategic land-use reform, including reform of Nationally Significant Infrastructure Projects and the introduction of Strategic Development Strategies outside London.
Environmental advocates say that the new regime favours growth at the potential cost of ecological safeguards; the EU shares this concern, noting that Treasury claw-back powers over the Nature Restoration Fund mean the levy may not be entirely ring-fenced for nature recovery.
With the UK government seeking a “reset” in its relationship with the European Union under Prime Minister Keir Starmer, the unfolding dispute risks placing fresh strain on cooperation efforts.
The coming weeks in Parliament and between London and Brussels may determine whether the bill can be amended to avoid triggering formal dispute-settlement procedures under the trade deal.
