In her first speech as Chancellor, Rachel Reeves set out Labour’s plans to overhaul the current planning regime, from building 1.5 million homes in this term of parliament, to giving priority to energy projects.
Now, the Ministry for Housing, Communities and Local Government (MHCLG) has proposed a series of additional changes to the Planning Bill, with the aim of preventing delays to major housing and infrastructure projects and accelerate decision-making across the planning system.
Lodders’ Planning team provides an overview of the amendments and what they could mean for developers, local authorities, and landowners.
According to ministers, the main obstacles slowing delivery of infrastructure projects are:
The latest Planning Bill update focuses particularly on legal challenges and council decision-making.
Legal challenges, though often raised for legitimate reasons, can become a significant source of delay for nationally important development. In response, the government intends to reduce the number of stages through which major infrastructure projects can be challenged in the courts, cutting this to two for most challenges and one for those judged “totally without merit.” The aim is to prevent projects from becoming mired in prolonged litigation that can stall delivery for years. Whilst a welcome suggestion, these amendments could have sought to go even further and remove additional layers in the process, such as the requirement for leave to be applied for when judicial review is sought. It will remain to be seen whether these amendments go far enough.
The Bill will also prevent planning permissions for large housing schemes from expiring simply because they are caught up in legal proceedings. Under the current system, permissions can lapse if a judicial review takes too long, forcing developers back to square one and compounding delays. The amendment ensures that permissions remain valid while the legal process runs its course, offering greater certainty to developers and investors.
In a further effort to reduce localised blocking of development, ministers will be granted the power to issue holding directions to stop councils from refusing planning applications while a potential call-in decision is being considered. At present, ministers can only intervene to pause approvals, not refusals. This change will enable the government to prevent local authorities from rejecting schemes that align with national priorities and growth ambitions.
A further amendment would give Natural England some discretion as to whether it responds to every request from local planning authorities, enabling it to focus its time on higher risk applications and those with the potential for greater nature recovery returns.
Housing Secretary Steve Reed said the changes are necessary to “tackle blockers in the courts and in the planning system” and deliver the government’s pledge to build 1.5 million homes this parliament.
It’s clear that the proposed updates to the Planning Bill signal a significant shift towards central intervention to keep developments moving. For developers, infrastructure providers and investors, the potential benefits could include:
However, there are concerns that these amendments remove some of the safeguards built into the current system and that they represent a move away from community level decision-making.
Though the proposed amendments will likely raise political and legal debate, particularly around local decision-making and environmental scrutiny, they could take effect quickly if passed, reshaping the planning landscape for major developments.
The Planning team at Lodders will continue to monitor the Bill as it progresses and provide further insight. For expert advice and guidance, please get in touch.
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