The Planning and Infrastructure Bill, introduced by Deputy Prime Minister Angela Rayner on 11 March, aims to accelerate housebuilding and essential infrastructure, positioning the UK as a clean energy superpower.

Alongside reforms to the National Planning Policy Framework (NPPF), which were published in December 2024, the bill forms part of the government’s Plan for Change to boost economic growth. Key reforms include:

1. Planning Fees

Councils will set planning fees to cover costs, with funds reinvested to enhance decision-making efficiency. While there are concerns about increased costs for smaller developers, faster processing may ultimately benefit the industry by reducing delays.

Dr Victoria Hills, chief executive at the RTPI commented that “By deciding to invest planning fees into planning services, the government not only addresses a key request long advocated for by the RTPI, but demonstrates that it has listened to our repeated concerns about the chronic underfunding of the planning system and the resulting impact on day-to-day delivery.”

2. Statutory Consultation

The government will streamline the statutory consultee process to focus on relevant parties, aiming to reduce delays while ensuring democratic involvement. Striking a balance between efficiency and inclusivity is crucial.

3. Planning Committee Reforms

A national scheme will classify applications to determine which are handled by officers versus committees. This aims to expedite the approval process for smaller projects, though it’s vital to ensure local community concerns remain addressed.

4. Nature Restoration Funds

Developers will contribute to a fund for large-scale environmental projects, addressing ecological issues more effectively than site-specific solutions. This approach holds promise for creating lasting positive environmental impacts that benefit both the development sector and the community.

5. Compulsory Purchase Orders

The Bill sets out plans to reform the compulsory purchase order regime with the aim being that compensation paid to landowners is not excessive and the process of using directions to remove ‘hope value’ where justified in the public interest is sped-up. The British Property Federation commented, “The recent changes to Compulsory Purchase Orders in the Levelling Up and Regeneration Act 2023 haven’t really been tested yet, so we need to proceed cautiously with further changes and make sure we do it in a way which fairly balances needs of communities with rights of landowners and stimulates rather than inhibits development.”

6. National Significant Infrastructure Projects (NSIPs)

The government plans to reform the NSIP process to expedite approvals for major infrastructure projects, particularly in energy, to enhance energy security. While local opposition remains a challenge, these reforms aim to balance urgent energy needs with local concerns.

7. Incentivising Local Communities

The Bill proposes energy bill rebates for residents near new pylons to promote community acceptance of energy projects. This financial incentive encourages local support for clean energy initiatives, making communities stakeholders in the transition to cleaner energy. Proper implementation is essential to maximise benefits.

8. Spatial Development Strategies

New spatial development strategies from regional mayors and local authorities aim to enhance regional planning by improving land use and infrastructure. While their effectiveness may still be uncertain, these strategies have the potential to promote cohesive and efficient planning, benefiting both developers and local communities.

Conclusion

The Planning and Infrastructure Bill aims to expedite planning and construction while balancing efficiency with community involvement. It focuses on enhancing housing, infrastructure, and clean energy, presenting opportunities for developers, local authorities, and communities. While the proposals seem beneficial, it’s crucial to ensure they don’t overlook local concerns or democratic processes. If implemented effectively, these reforms could significantly improve the planning landscape and promote housing, infrastructure, and environmental sustainability.

This latest stage of the government’s planning reforms has been met positively by the industry. However, it is vital that all of this is adequately resourced in the forthcoming spending review if it is to deliver transformational change in the planning system.