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16 October 2025

Monthly NSIP Newsletter - September 2025 Issue

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Herbert Smith Freehills Kramer LLP

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Our regular newsletter highlighting recent events within the NSIP world with our views on key issues of interest.
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The September 2025 edition of HSF Kramer's monthly NSIP newsletter is now available. This is our regular newsletter highlighting what we consider to be the most interesting and topical recent events within the NSIP world together with our opinions on key issues that matter to our clients.

1. DCO granted for the Gatwick Airport Northern Runway Project

Summary

The Secretary of State ("SoS") for Transport has granted development consent to Gatwick Airport Limited ("GAL") (advised by HSF Kramer) for the Gatwick Airport Northern Runway Project in a decision that shows the potential of a "minded to" process in the NSIP regime.

Key facts

  • A DCO was granted for the Gatwick Airport Northern Runway Project on 21 September 2025. The decision letter is here.
  • The final decision followed a "minded to approve" letter and further submissions being made by the applicant and interested parties. The decision reflected those submissions and reached a number of conclusions different to those preliminarily indicated in the earlier letter.

Further analysis

On 21 September 2025 (in what must be a first for a DCO decision, on a Sunday evening!), the SoS granted development consent for the Gatwick Airport Northern Runway Projects, which involves the repositioning of the airport's existing northern runway 12 metres to the north to allow dual runway operations with the current main runway, as well as associated airfield infrastructure and terminal works and highway improvements.

The decision followed the SoS's letter dated 27 February 2025 noting that she was "minded to approve" the project, subject to further information being provided. Alongside that letter the SoS published the Examining Authority's ("ExA") Recommendation Report, allowing GAL and interested parties to make further submissions by reference to the ExA's analysis.

The final decision is notable for the way in which the SoS has had clear regard to these further submissions on certain topics with which GAL and the wider aviation industry had concerns. A key example is the thresholds for significance in assessing aviation noise impacts: the "Significant Observed Adverse Effect Level" ("SOAEL") and "Lowest Observed Adverse Effect Level". On the former, the SoS's Decision Letter recorded:

"The Secretary of State acknowledges that there are differences in view... on the appropriate figure for noise limit values and that she was initially minded to accept the SOAEL values proposed by the ExA... However, in light of the further reasoning and justification provided by the Applicant... the Secretary of State now considers that the values proposed by the Applicant are appropriate and consistent with policy..."

We consider that this demonstrates the potential benefit of building in a "minded to" stage to NSIP decisions where the relevant SoS is either inclined to refuse consent for a project or is inclined to grant consent but with significant departures from the scheme advanced by the applicant (such as limiting the extent of development or imposing new controls). By publishing the ExA's Recommendation Report and requesting further information on key topics, an applicant has the opportunity to address any flawed reasoning they identify in the report and further substantiate its position to the SoS. This can result in securing a more deliverable consent.

2. Government racing towards its 150 decisions target with flurry of grants including two road projects and offshore wind assets

Summary

Over the last month, DCOs have been granted for the A46 Newark Bypass, M60/M62/M66 Simister Island and Morgan Offshore Wind Project: Generation Assets.

Key facts

  • A DCO was granted for National Highways' A46 Newark Bypass on 1 October 2025. The decision letter is here. The project will provide a dual carriageway on the A46 between Farndon and Winthorpe.
  • A DCO was granted for National Highways' M60/M62/M66 Simister Island on 9 September 2025. The decision letter is here. The project involves a range of highway works including construction of a new loop road linking the M60 eastbound to the M60 southbound and widening of the M60 and M66.
  • A DCO was granted for Morgan Offshore Wind Limited's Morgan Offshore Wind Project: Generation Assets on 29 August 2025. The decision letter is here. The project involves offshore wind assets including turbines, substation platforms and cables (the onshore cables are being consented separately).

Further analysis

There are many similarities between these DCO applications. All three were examined by panels (three inspectors each for the A46 and Morgan Offshore Wind and two inspectors for Simister Island). The ExAs recommended approval for all of them. They were all decided on time, with no extensions. The ExA and SoS were agreed on the vast majority of topics across these applications, with the SoS agreeing with the ExA's weighting on every topic for the A46, which is very unusual for a DCO application.

The A46 application sought compulsory acquisition powers over one plot of Crown land. The applicant maintained that, as the land had been disclaimed and would escheat (in other words, it was ownerless and would return to the Crown), it could be acquired without Crown consent under section 135 of the Planning Act 2008 ("PA08"). Some uncertainty arose during the examination but the Crown Estate Commissioners failed to respond to repeated requests for clarity from the SoS. The SoS decided that she had no reason to disagree with the applicant's view that the interest had extinguished and was not held for the benefit of the Crown, meaning that Crown consent was not needed.

Compulsory acquisition powers were also sought in the Simister Island application. However, powers were not granted over all of the requested plots (including land within the back gardens of residential properties who had not been consulted) as the ExA and SoS agreed that they failed the section 122 PA08 tests on the basis that they were not necessary for the development.

Although the Simister Island application failed the biodiversity net gain ("BNG") trading rules and did not achieve 10% on all units (3.68% habitat units, 58.50% hedgerow units and 0% river/stream units), the SoS concluded that the applicant's proposal to create a rarer habitat to replace lost habitat was acceptable compensation, noting that BNG is not yet mandatory for NSIPs.

Wake effects were a key issue for the Morgan Offshore Wind application. A number of objections were raised by Orsted in relation to risks of reduced wind speed or changes to direction which could lower energy output at its six nearby offshore wind farms. The applicant disputed claims that the proposed development was "close" to Orsted's existing infrastructure. The ExA asked the applicant to submit a wake effects assessment but the applicant declined, arguing that there was no legal or policy requirement for a wake effects assessment. The SoS stated that the applicant's position was "unhelpful and overly legalistic" and described one of the applicant's arguments as "semantic". Both the ExA and SoS stated that they were disappointed by the applicant's refusal to provide a wake assessment, as this "could and should have been properly addressed during the examination by reasonable parties acting collaboratively, rather than adopting entrenched positions".

3. Delays in offshore wind farm DCO decisions: a growing pattern of Habitats Regulation challenges

Summary

Whilst the Government is working hard to achieve its ambitious target for DCO decision-making, there is a recent growing trend in delays to DCO decisions for offshore wind projects.

Key facts

  • The most recent delay was for the Outer Dowsing Offshore Wind Farm, originally scheduled for determination on 10 October 2025, and now deferred until 18 December 2025. This delay reflects a broader trend in offshore wind infrastructure consenting, where environmental issues – particularly under the Habitats Regulations – are proving to be persistent stumbling blocks.
  • The Outer Dowsing project, located off the Lincolnshire coast, aims to deliver up to 1.5GW of renewable energy. However, in October 2025, the SoS issued a consultation letter requesting further information on Benthic ecology, intertidal, subtidal and coastal effects, as well as Offshore and Intertidal Ornithology. The delay and further detailed questioning by the SoS underscores the complexity of delivering appropriate ecological compensation and mitigation measures, particularly in the marine environment.

Further analysis

Outer Dowsing follows a similar announcement last month regarding the Five Estuaries Offshore Wind Farm. That project, which proposes in excess of 3GW of capacity off the Essex coast, saw its DCO decision pushed from September to December 2025. Like Outer Dowsing, Five Estuaries has faced scrutiny over its habitats regulation assessment ("HRA"), with concerns raised about the adequacy of compensation proposals for impacts on bird populations and marine habitats. The cumulative effect of multiple offshore wind farms in ecologically sensitive areas is increasing the burden on developers to demonstrate no adverse effect on integrity, or to provide sufficient compensatory measures.

Meanwhile, the Morecambe Generating Assets DCO, which includes both offshore and onshore infrastructure for the Morecambe Offshore Wind Farm in the Irish Sea, is still scheduled for determination later this month. However, a recent consultation by the SoS suggests that a third delay may be imminent. The consultation focusses on similar HRA issues, particularly around feasibility of kittiwake compensation and how cumulative effects with the Mooir Vannin Offshore Windfarm are documented in the HRA. If delayed, it would reinforce the emerging pattern of regulatory bottlenecks in the offshore wind consenting process.

These delays have implications for the UK's renewable energy ambitions, as well as the Government's own targets for infrastructure consenting more widely. The Habitats Regulations are being applied to require an ever higher evidential burden and, as offshore wind farm projects continue to grow in scale and number, it is becoming harder to demonstrate that the cumulative environmental impacts have been fully assessed and mitigated.

4. CPO process and compensation reforms: consultation outcome

Summary

On 19 September 2025, the Government published a response to the "Consultation on Compulsory Purchase Process and Compensation Reforms" which was published in December 2024 and sought views on a range of proposals within England and Wales.

Key facts

  • The proposals were considered by the Government to make the compulsory purchase process quicker and more efficient so acquiring authorities are incentivised to make use of a compulsory purchase order ("CPO") to deliver benefits for communities.
  • The Government also considered that these proposals would enable more land value to be retained by public sector authorities via compulsory purchase which is then reinvested in projects for the public benefit.
  • The Government also considered that these proposals would enable more land value to be retained by public sector authorities via compulsory purchase which is then reinvested in projects for the public benefit.

Further analysis

The consultation asked 22 questions, and 160 responses were received from a range of stakeholders including local authorities, developers and members of the public. The feedback to each of these questions has been published by the Government alongside its response and includes the following proposals of interest which the Government intends to take forward:

  1. 61% of respondents responded positively to agreeing that directions to remove compensation payable for prospective planning permissions (hope value) should be allowed to be included in CPOs made on behalf of parish/town or community councils by local authorities under section 125 of the Local Government Act 1972 where the schemes underlying the orders are providing affordable or social housing.
  2. Most of the respondents agreed that the decision-making function of the confirming authority relating to the making of a direction for additional compensation under Schedule 2A of the Land Compensation Act 1961 should be eligible to be undertaken by an Inspector.
  3. 89% of respondents considered that notices/documents required to be served within the CPO process should be capable of being served electronically.
  4. The majority of the respondents considered that the description of land published in newspaper notices of the making and confirmation of CPOs should be simplified. The Government responded that it intends to retain physical newspaper notices at present but proceed with simplifying the information relating to the description of land published in newspaper notices.
  5. The Government intends to proceed with allowing acquiring authorities to modify their CPOs providing all other conditions under section 14A of the Acquisition of Land Act 1981 have been met and the proposed modifications will not be controversial or unfair on a person with an interest in the land included in the CPO or would not likely provoke objections in response to mostly positive feedback to this within the consultation.
  6. 78% of respondents agreed there should be an expedited notice process for the vesting of interests in land under the general vesting declaration ("GVD") process in certain circumstances outlined in the consultation. The Government in response intends to proceed with introducing an expedited notice process for the vesting of interests in land and properties under the GVD procedure where land or property subject to a CPO is unoccupied and unfit for its ordinary use because of disrepair, neglect, contamination, or risk to health or safety and where there is an agreement between the acquiring authority and the owner of an interest subject to CPO.

Having considered responses to the consultation, the Government does not intend to take forward the proposal to allow the earlier taking of the possession of land or properties under the GVD process where no objections are made to CPOs or no responses received to CPO notices.

Overall, it is positive to see that the Government has reiterated its intention to promote development and initiatives that provide public benefits, with a particular focus on housing and infrastructure. There is a strong drive to fast-track progress, and the suggested improvements are a step in the right direction if implemented. However, in order to be effective, the Government will need to ensure that these proposals are implemented thoughtfully via the Planning and Infrastructure Bill and supported by guidance where necessary.

5. General round-up

  • The Flood Risk and Coastal Change Planning Practice Guidance was updated in September 2025 with some favourable updates for developers meaning that a sequential test need not be applied where a site- specific flood risk assessment demonstrates clearly that the proposed layout, design, and mitigation measures would ensure that occupiers and users would remain safe from current and future surface water flood risk for the lifetime of the development, without increasing flood risk elsewhere.
  • The Planning Inspectorate has published a new guidance document, Nationally Significant Infrastructure Projects: Terms commonly used in the process (September 2025) (link), which seeks to explain common NSIP terminology for those who may be less familiar with the process, including common abbreviations. This looks to be a helpful resource for members of the public to sort their "FRAs" from their "HRAs".
  • The developer of the proposed Hedgehog Grove Solar Farm announced on 15 August 2025 that it is not proceeding with its DCO application, with the developer instead deciding to consent the 98 MW scheme under the Town and Country Planning Act 1990 ("TCPA") following the government legislating to increase the solar NSIP threshold from 50 MW to 100 MW (coming into force on 31 December 2025). The developer's letter cited the TCPA process having a "shortened preparation phase" and being "more democratically accountable" than the DCO process. The TCPA application will be made to Braintree District Council and Uttlesford District Council, the latter of which had been stripped of its decision-making powers for major applications until it was de-designated in June 2025.
  • Applications for the East Midlands Gateway Phase 2 and the East Midlands Gateway Rail Freight Interchange Material Change were submitted on 28 August 2024 but were withdrawn on 23 September 2025 to address feedback from the Planning Inspectorate.
  • The following applications have been submitted and are awaiting acceptance:
    • The application for the Lime Down Solar Project was submitted on 19 September 2025. The decision whether to accept the application for examination is due by 17 October 2025. The project page is here.
    • The application for the Rosefield Solar Farm was submitted on 26 September 2025. The decision whether to accept the application for examination is due by 24 October 2025. The project page is here.
    • The application for the East Park Energy project (a solar and BESS project) was submitted on 3 October 2025. The decision whether to accept the application for examination is due by 31 October 2025. The project page is here.
  • The following applications have been accepted for examination
    • The Connah's Quay Low Carbon Power Project (advised by HSF Kramer) was accepted on 28 August 2025. The project page is here.
    • The Tween Bridge Solar Farm project was accepted on 24 September 2025. The project page is here.
    • The Keadby Next Generation Power Station Project was accepted on 24 September 2025. The project page is here.
    • The Norwich to Tilbury transmission project was accepted on 26 September 2025. The project page is here.
  • The examination stage was completed for the following applications:
    • The examination of the A46 Coventry Junctions (Walsgrave) project closed on 12 September 2025. The project page is here.
    • The examination of the Fenwick Solar Farm closed on 4 September 2025. The project page is here.
  • The following application has moved into the decision stage:
    • The ExA's recommendation was sent to the SoS for the Helios Renewable Energy Project on 3 September 2025. The project page is here.
  • The following updates from projects in the post-decision stage are of interest:
    • National Highways has made two applications for non-material changes to the Lower Thames Crossing DCO – one to amend certain details of air quality mitigation and one to amend the obligation on it to agree a financial contribution with the Kent Downs National Landscape such that this must be accomplished prior to works being carried out south of the River Thames rather than anywhere within the order limits.
    • Indaver Rivenhall Ltd (advised by HSF Kramer) has made an application for a non-material change to the Rivenhall Generating Station Extension DCO, to correct a drafting issue introduced into the made DCO by the SoS. The project page is here.
    • The SoS has agreed to make a non-material change to the Northampton Gateway Rail Freight Interchange Order 2019 to allow for additional mezzanine floorspace on the site. The project page is here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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