Housebuilders will be given swifter access to build new homes around England’s commuter train stations under the latest government plans to deliver on its pledge to boost building and in turn generate economic growth.
Ahead of the chancellor’s speech next week on economic growth, Rachel Reeves yesterday announced how the government will go further and faster to deliver its Plan for Change milestones of 1.5 million new homes over five years and 150 decisions on major infrastructure projects by the end of the Parliament. It follows the ambitious reforms unveiled by the chancellor in July and delivered by the deputy prime minister at the end of last year through publication of the overhauled National Planning Policy Framework.
The government’s next steps on planning reform include streamlining a set of national policies for decision making to guide planning decisions taken by local authorities and promote housebuilding in key areas.
In a major new growth push, the government will ensure that when developers submit an application for acceptable types of schemes in key areas – such as in high potential locations near commuter transport hubs – that the default answer to development is ‘yes’. This, the chancellor hopes, will unlock more housing at a greater density in areas central to local communities, boosting the government’s aim of growing the economy. These measures will transform communities, with more shops and homes nearer to the transport hubs that working people rely on day in day out.
As part of these measures, the government will streamline decisions on critical infrastructure projects by slashing red tape in the planning system which is holding up projects. That means looking again at the input from expert bodies who developers are required to consult – and replacing the current systems of environmental assessment to deliver a more effective and streamlined system that reduces costs and delays for developers, whilst still protecting the environment.
The chancellor also revealed on Sunday that she is championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space developed.
Last year homebuilding fell below 200,000 and permissions reached their lowest for over a decade, which is why the government is taking radical action necessary to reverse this trend and deliver the homes necessary to reach 1.5 million homes over this parliament.
The government has committed to making 150 decisions on these major economic infrastructure applications over this parliament.
Reeves said: “I am fighting every single day in our mission to kick start the economy, deliver on our Plan for Change, and make working people better off. That includes avenues that others have shied away from.
“Too often the answer to new development has been “no”. But that is the attitude that has stunted economic growth and left working people worse off. We need to do things differently and that journey began as soon as I started at the Treasury in July. These are our next steps and I can say for certain, there is more to come.”
Deputy PM and secretary of state for housing, Angela Rayner, commented: “From day one I have been clear that bold action is needed to remove the blockers who put a chokehold on growth. That’s why we are putting growth at the heart of our planning system.
“Growth means higher wages, better living standards, families raising their children in safer homes, and the next generation taking their first steps onto the housing ladder.
“This year we will go even further to make the dream of homeownership a reality for millions and fix the housing crisis we inherited for good – getting more shovels in the ground to build the homes and vital infrastructure that our communities so desperately need.”
On Sunday the chancellor set out further action on the government’s growth mission by announcing the following:
Planning
The Planning and Infrastructure Bill will provide the powers to accelerate the infrastructure and homes needed to deliver on the government’s ambitions – and fast track critical infrastructure such as windfarms, power plants, and major road and rail projects. Today the government is confirming for the first time that the Bill will be introduced in Spring and we will work with Parliamentarians to ensure a smooth and speedy delivery.
Further detail on the Bill is being published today in a working paper on streamlining decisions on nationally significant infrastructure projects, including reducing the burden on developers by making consultation requirements more proportionate, strengthening statutory guidance to ensure they are clear over what is and is not required when submitting planning applications, and ensuring that National Policy Statements are updated at least every five years to give more certainty to developers, speeding up decisions. Previous working papers have already set out reforms to the operation of planning committees, and an overhaul of the way developers can discharge their environmental obligations so that they can crack on with building.
The Chancellor is today also announcing reform to the statutory consultee system, which requires developers to consult local communities and expert bodies when making planning decisions. This often means too many organisations consulted on too wide a range of issues, clogging up much-needed development. Today the government has declared a moratorium on any new statutory consultees and the Chancellor and the Deputy Prime Minister will review in the coming weeks the existing arrangements to make sure they meet this Government’s ambitions for growth.
This follows changes announced last week to the rules around challenging major infrastructure projects through the courts – stopping blockers getting in the way of the Government’s Plan for Change and getting nuclear plants, trainlines and windfarms built quicker. Current excessive rules mean unarguable cases can be bought back to the courts three times. This will be overhauled, with just one attempt at legal challenge for hopeless cases that would previously have caused much more delay.
Environment
The government is also reforming environmental impact assessments, which have strayed from their original purpose of supporting decision making and have become voluminous and costly documents that too often support legal challenges rather than the environment.
They will be replaced by Environmental Outcome Reports which will be simpler and much clearer, which will support growth by saving developers time and money, whilst still protecting the environment. The government will publish a roadmap for the delivery of these new Environment Outcomes Reports in the coming months.
This follows a working paper on development and nature published by the government before Christmas setting out a new approach that will turbocharge the delivery of housing and infrastructure while securing positive environmental outcomes. Developers will be able to pay into the Nature Restoration Fund which will allow them to discharge relevant environmental obligations for protected sites and species and focus on building, safe in the knowledge that appropriate action will be taken to support nature’s recovery.
Major infrastructure
A working paper is being published setting out the government’s plan for its 10 Year Infrastructure Strategy, which will be focussed on infrastructure’s role in enabling resilient growth, delivering clean energy by 2030 and net zero by 2050 while securing the growth benefits of the transition, and improving public services.
The working paper seeks industry views as part of the government’s continued consultation on the development of the strategy which will be published in late Spring.
Industry reactions:
Eoghan O’Lionaird, Chief Executive, Wates Group, commented: “As a business focused on reimagining places for people to thrive, we welcome the proposed changes to planning and the opportunity to work with government and local authorities to unlock land and build new homes for communities where they are urgently needed.
“Operating as both developer and builder, we experience first-hand the delays and expense that an overly burdensome planning system has added to the process of building homes, schools, hospitals, and other vital infrastructure, including commercial and industrial buildings that are essential to driving economic growth.
“We also welcome the government’s reforms to environmental impact assessments. A move to Environmental Outcome Reports would save time and money and could be transformational – we look forward to working with Government on the detail and how this can be delivered in a way that maintains robust environmental protections.
“These reforms are welcome, but they must be underpinned by the forthcoming ten-year National Infrastructure Strategy – something Wates Group has long championed. Providing the built environment sector with long-term certainty is crucial to supporting investment in new technologies and the training of skilled workers. This will be essential to delivering the next generation of infrastructure and ensuring we are well-equipped to meet the challenges of the future.”
Jennie Daly, CEO of Taylor Wimpey said: “We continue to be impressed by the speed with which the government has gripped the need for planning reform to deliver much needed new housing supply. New high-quality housing and the infrastructure it brings are essential drivers of economic growth.
“We welcome the commitment from the government to introduce the Planning and Infrastructure Bill as a priority in the spring, and we look forward to supporting the promised consultation work on reforming the planning system to expedite decisions and overcome local barriers to growth.”
Helen Gordon, chief executive of Grainger, stated: “The Government’s proposals to unblock the planning system and turbo boost economic growth are both bold and welcome. Prioritising housing around transport hubs like train and tube stations is the right approach. TfL and Network Rail, by partnering with private sector leaders, like Grainger, are already creating greener communities that are less reliant on cars. With a shortage of 4.3 million homes, we need bold action to stimulate supply. Today’s proposals could go farther if the government unlocks billions of pounds of further institutional investment into the UK housing market through the fast-growing Build to Rent sector.”
Mark Reynolds, Mace Group executive chairman and co-chair of the Construction Leadership Council, commented: “When the government and the construction sector work in partnership we can unlock growth of up to 2% of GDP. The simplification and streamlining of the planning system is a significant contributor to this so the announcements today are a welcome development which could deliver £2 billion per year in savings once fully implemented.
“In addition the upcoming publication of the 10 year National Infrastructure Strategy is an opportunity to set out plans for ambitious growth and chart a direction for the industry, instilling confidence in businesses to invest in skills, innovation and deliver profitable growth, we look forward to contributing to its success.”
Neil Jefferson, CEO of Home Builders Federations, remarked: “Identifying more land for development and removing the treacle from the planning process that delays applications is essential if we are to increase housing supply. The swift moves to address these blocks in the planning system are very welcome and will pay dividends if the other constraints on housing supply can be tackled. Housing delivery is dependent upon a range of factors, of which planning is a major one, and these changes underline the government’s commitment to increasing supply.”
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Read the orginal article: https://propertyindustryeye.com/industry-reacts-to-governments-new-sweeping-planning-reform-to-boost-growth/
