Spotlight: NSIP Planning reform, NESO losing control and mansion tax

This week's Spotlight is dominated by NESO: engineers publicly warning they've lost control of the system, alongside an independent probe into allegations the operator covered up grid stability risks and told staff not to keep records. Ofgem moved on two fronts too - a consultation to curb speculative data centre grid connections (demand requests have hit 125GW) and new Grid Code rules forcing better data-sharing between NESO and network operators.

On planning, the NSIP regime's mandatory pre-application consultation was scrapped from 24 July, and Andy Burnham's ministerial reshuffle reached the energy and infrastructure departments. On development, IFS/Tax Policy Associates flagged that a lower mansion tax threshold (£1.5m vs £2m) would nearly double the properties caught, mostly in London and the South East.

Read the stories making the news in full below:

ENERGY

✒️Ofgem acts to free up grid capacity by tackling speculative data centre projects | Ofgem

✒️Capacity Market auction parameters: letter from DESNZ to NESO, July 2026 | Press release from Department for Energy Security & Net Zero

✒️Jacobs appointed by Great British Energy – Nuclear to support planning for new UK nuclear projects | Great British Energy – Nuclear

📰 "We don't have control of the system", warn NESO engineers | Energy Live News

📰 NESO launches independent probe into blackout cover-up allegations | Engineering and Technology Magazine

📰 Ofgem orders new data exchange to improve NESO's grid visibility (Grid Code modification GC0139) | Energy Live News

📰 NESO steps up restrictions on electricity interconnector capacity | Energy Live News

📰 Power pivot: AI data centres could help ease grid pressure, researchers argue | Envirotec

🗣 "Do not put speed ahead of safety": UK government urged to ensure plug-in solar is properly regulated | Solar Power Portal

📰 First carbon storage project to repurpose existing infrastructure in UK enters into lease | New Civil Engineer

📰 ScottishPower dishes out £103m O&M contracts | renews

INFRASTRUCTURE

✒️ Fastest infrastructure building in a generation as planning rules overhauled (NSIP pre-application consultation scrapped, effective 24 July) | Press release from MHCLG

✒️ Nationally Significant Infrastructure Projects: updates to advice pages following Planning and Infrastructure Act reforms | Planning Inspectorate

✒️ Major Projects Annual Report 2025–26: most major projects require intervention to stay on track | National Infrastructure and Service Transformation Authority (NISTA)

📰 Raft of ministerial changes at departments overseeing infrastructure and civils sectors | New Civil Engineer

📰 Nista's optimism on major projects stops short of planning reform | New Civil Engineer

🗣 Heathrow can show British infrastructure still delivers | New Civil Engineer

📰 Heathrow expansion ‘key to Andy Burnham’s job creation drive’ | The Times

📰 Heathrow expansion would take thousands of jobs from other UK regions, report finds | The Guardian

DEVELOPMENT

✒ Neighbourhood planning toolkits - updated 26 July 2026 | Toolkit update from

Ministry of Housing, Communities and Local Government

📰 New planning guidance promised to help councils implement biodiversity gain exemptions | Planning Resource (paywall)

📰 Housing committee chair Eshalomi made junior minister at MHCLG | Building

📰 1.5m homes target will not be “defeated,” says housing secretary | pbc today

📰 Water supply issues set to cause ‘hugely frustrating’ delay to local plan | Planning Resource (paywall)

📰 Lowering the mansion tax threshold to £1.5m would nearly double the number of properties caught | Institute for Fiscal Studies / Tax Policy Associates

📰 House purchase approvals up, but market recovery remains uneven | Mortgage Solutions (Bank of England data)

📰 Mayor unveils streamlined draft London Plan with focus on housing delivery, growth and AI | Estates Gazette

📰 Southwark approves 152-home key worker housing scheme near London Bridge | Estates Gazette