Spotlight: Devolution, renewables growth and Gatwick 2nd runway progress

This week has seen the government’s devolution agenda continue to take shape, with announcements for mayoral authorities to be able to keep a greater share of income tax and business rates revenues, to support local spending. The government hopes that this can boost local housing and infrastructure spending, constituting a major shift in power from Whitehall to the regions.

The implication for infrastructure developers could be significant, as greater fiscal autonomy may give regional leaders both the means and the incentive to bring forward housing and infrastructure projects that support economic growth, potentially creating a stronger and more consistent pipeline of opportunities across England's devolved regions.

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Spotlight on next week

Next week is set to be another key week across politics and the energy, infrastructure and development sectors, and for us at Luminate.

The week ahead:

• The Clacton by-election: Nigel Farage is standing for re-election for Reform UK after resigning his seat to fight a “people vs the establishment” contest. We will be watching to see how Reform performs, after three recent by-election defeats.

• Consultation on local council borrowing and investment risk closes: MHCLG closes its consultation on how the UK Government should identify and deal with local councils that take on excessive borrowing and investment risk. Any change will impact how councils can borrow to invest in housing and infrastructure and could impact how dependent they will be on private investment.

• Progress on devolution: Following last week’s announcements on tax and business rate retention, we will be looking for any further announcements on timelines.

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This week’s headlines:

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ENERGY

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TOP STORY: 📰 Renewables surpass 52% of UK power generation in 2025 | Enerdata  

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Renewables generated a record 52.1% of the UK's electricity in 2025, driven by continued growth in wind and solar power, with solar alone reaching a new high of 6.9% of generation. For the energy sector, the figures underline the UK's continued shift towards a renewables-led system, despite gas remaining the single largest source of UK energy last year.

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We’ve also been reading:

✒️ Proposed data centre connection reforms | Ofgem

✒️ Reshaping cyber regulation in downstream gas and electricity | Press release from Department for Energy Security & Net Zero. It's also filed under Infrastructure

📰 NESO grid queue penalty unused | Energy Live News

📰 New energy chief’s Aberdeen vow for ‘homegrown energy’ | Press & Journal (paywall)

📰 Marine energy will be the UK’s next great green frontier | Enlit  

📰 Britain will soon be Europe’s energy powerhouse | The Telegraph  

📰 Droughts cause nuclear power plants in Europe to reduce output | New Civil Engineer

📰 Government relaxes height limits on solar panels that can be installed without a planning application | Planning Resource (paywall)

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INFRASTRUCTURE

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TOP STORY: ✒️ Gatwick to open second runway as government wins legal challenge | Press release from Department for Transport and The Rt Hon Heidi Alexander MP

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A Court of Appeal ruling has cleared the way for Gatwick Airport's £2.2bn runway expansion after campaigners failed in their legal challenge. The project, which will allow around 100,000 additional flights annually, is a major boost for the aviation sector and reinforces the momentum supporting airport growth despite environmental opposition. It is also a boost for the South East at a time when the political centre of gravity is moving away from the region.

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We’ve also been reading:

✒️ Government orders that public spending must back British jobs and skills in every postcode | Cabinet Office, Mark Ferguson MP and The Rt Hon Louise Haigh MP

✒️ PM hands mayors share of income tax to make lives better in every postcode | Press release from Prime Minister's Office, 10 Downing Street and The Rt Hon Andy Burnham MP

📰 Gatwick airport to open second runway after legal challenge fails | The Guardian

📰 Why Heathrow’s expansion matters for the UK’s future workforce | New Civil Engineer (paywall)

📰 Luton Airport expansion clears final legal hurdle | BBC News  

📰 Brick Lane data centre go-ahead: Campaigners 'deeply disappointed' as ministers approve controversial plans | The Standard

📰 Developer makes case for landfill gas-powered data centre in Canterbury | New Civil Engineer (paywall)  

📰 Can the UK’s newest rail station escape the problems of HS2? | Financial Times

📰 Healey urged to be bold on borrowing in first test of Burnham’s growth pledge | Government borrowing | The Guardian

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DEVELOPMENT

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TOP STORY: ✒️ Housing Secretary refuses 3,500-home Ebbsfleet regeneration scheme and new football stadium, citing chronic lead exposure health risks and loss of a safeguarded minerals wharf  | Decision letter from Ministry of Housing, Communities and Local Government  

The Government has refused planning permission for the proposed mixed-use redevelopment around Ebbsfleet Football Club, which would have delivered up to 3,500 homes, commercial space, a new stadium and other community uses, on grounds of health risks, viability and the loss of existing employment grounds. The decision shows the risks of large-scale, mixed-use development and development on existing employment sites.

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We’ve also been reading:

✒️ Barnet committed to delivering homes residents need as housing target proposed to increase by 38 per cent | Barnet Council

📰 Positive Persimmon looks to tap into ‘Burnham bounce’ on housebuilding | The Guardian

📰 Residents lose High Court battle against Government on new Chinese mega-embassy in London | The Standard

📰 Councils’ Right to Buy sales income doubles to £1.6bn | Inside Housing

📰 Government reveals how planners and applicants should prioritise overlapping biodiversity gain exemptions | Planning Resource

📰 8,000 homes planned for new south London neighbourhood | The Standard

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