Chancellor Rachel Reeves at the regional investment summit in Birmingham.

Chancellor Rachel Reeves at the regional investment summit in Birmingham. Credit: Mike Sheridan / Place Midlands

Chancellor says ‘we are delivering’ as planning bill becomes law

Rachel Reeves said government changes to planning laws will “tear down barriers to growth” after a raft of planning reforms received Royal Assent.

The government says measures introduced yesterday as part of its flagship Planning and Infrastructure Bill will speed up development of nationally important infrastructure projects such as reservoirs, along with road and rail schemes.

Key reforms included in the act will see strategic planning measures introduced through the use of spatial development strategies, designed to create greater cross-boundary working  between local authority areas.

Plans to “modernise” local planning committees are also included, designed to speed-up the planning system by setting out which specific planning functions should be made by committee and which could be delegated to planning officers for a faster decision.

The government claims the changes will result in a £7.5bn boost for the country’s economy over the next ten years.

Chancellor Rachel Reeves said the legislation would end “years of dither and delay” which had held back vital projects such as the Lower Thames Crossing, and the Sizewell C nuclear reactor.

“We promised to grasp the nettle of planning reform, and we’re delivering,” she said.

“And we’re not stopping there, this government will leave no stone unturned to get spades in the ground, building the homes families need and the infrastructure our economy needs to thrive.”

Meanwhile new rules will strengthen the powers of  government-appointed development corporations, such as those planned to build up to a dozen new towns across the UK, adding pioneering heat networks to the list of infrastructure they can provide using delegated powers, and remove restrictions on provision of railways, light railway, and tramways.

In a linked announcement this week, the government also announced the establishment of its “Nature Restoration Fund”, which will use developer contributions to fund schemes which restore protected habits and species, potentially replacing mitigation measures for individual developments in a bid to speed up the planning process.

Housing secretary Steve Reed said the change marks a move away from a “broken status quo” that has prevented homes and infrastructure from being built, whilst “doing nothing for nature’s recovery.”

“Britain’s growth has been held back by a sluggish planning system, slamming the brakes on building and standing in the way of fixing the housing crisis for good,” he said.

“Today that changes. Our landmark Planning and Infrastructure Act will tear down barriers to growth, and this means getting spades in the ground faster, unshackling projects stuck in planning limbo and crucially unlocking a win-win for the environment and the economy.

“We’re ushering in a new era to build 1.5 million homes that will give families a secure roof over their head, alongside key infrastructure to create high-paying jobs and power our homes and businesses.”

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