Labour promises 'biggest building boom in a generation' in reform of UK's planning system

Labour has promised its planning reforms will deliver the “biggest building boom in a generation” as the Planning and Infrastructure Bill makes its parliament debut.

The long-awaited bill, which appeared in the House of Commons for the first time on Tuesday (11 March) is central to the government’s pledge to boost economic growth.

Ministers have targeted building 1.5 million homes ahead of the next election as well as ‘beating the blockers’ to build roads, railway lines and windfarms to deliver on promise of growth that saw the party gain power last year.

Angela Rayner, deputy prime minister, said: “We’re creating the biggest building boom in a generation – as a major step forward in getting Britain building again and unleashing economic growth in every corner of the country, by lifting the bureaucratic burden which has been holding back developments for too long.

“The Planning and Infrastructure Bill will unleash seismic reforms to help builders get shovels in the ground quicker to build more homes, and the vital infrastructure we need to improve transport links and make Britain a clean energy superpower to protect billpayers.

“It will help us to deliver the 1.5 million homes we have committed to so we can tackle the housing crisis we have inherited head on – not only for people desperate to buy a home, but for the families and young children stuck in temporary accommodation and in need of a safe, secure roof over their heads.

“These reforms are at the heart of our Plan for Change, ensuring we are backing the builders, taking on the blockers, and delivering the homes and infrastructure this country so badly needs.”

Why is the government looking to reform the planning system?

The existing planning system is largely considered to be too slow and costly to deliver the homes that the country desperately needs to end the long-running housing crisis.

Last week the Home Builders Federation (HBF) reported that the number of planning permissions granted for new homes in 2024 was the lowest for a decade.

The group said that 242,610 units received planning permission last year – the lowest total for any calendar year since 2014. In order for local authorities to meet the government’s stretch target of 370,000 homes a year, planning approvals must rise by 53%, HBF said.

The pace of the planning system, which can be expensive and can stall in the face of opposition, is nothing new.

Andrew Carter, chief executive of pro-planning reform think tank Centre for Cities, said Britain has a shortage of roughly 4.3 million homes due to the “unusually restrictive and unpredictable planning system”. 

“Delays, uncertainty, and barriers to development in the planning system have increased housing costs and reduced productivity, particularly in cities,” said Carter.

“A challenge as big as the housing crisis demands a big reform.”

What is in the Planning and Infrastructure Bill?

The Planning and Infrastructure Bill will bring in reforms to the national planning policy framework and pave the way for 150 major projects to turn Britain into a clean energy superpower and raise living standards, the government said.

The bill will streamline planning decisions by introducing changes to planning committees by controlling the size of them and which applications come before them.

Councils will also be able to set their own planning fees. The government said the current system runs at a deficit of £362 million and cash will be reinvested to speed the system up.  

A nature restoration fund will also be established to ensure builders can meet environmental obligations faster and at a greater scale by pooling contributions.

Chancellor Rachel Reeves previously promised that “bats and newts” will no longer hold up development while developers and environmental campaigners have disagreed on the need for existing nutrient neutrality legislation in the past.

The legislation will also make it easier for land to be bought for developments. The compulsory purchase process – which allows land to be acquired for projects that are in the public interest – will be improved to ensure important developments delivering public benefits can progress. 

This will also remove ‘hope value’ – which is the value attributed to the prospect of planning permission being granted for alternative development. Patrick Hickey, director of the development management consultancy, Make NW, told Big Issue this change will make it easier for local authorities to purchase land more cheaply to build social housing. 

The Planning and Infrastructure Bill will also make it easier for the government to build up to 12 new towns in England through development corporations. 

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The legislation will introduce a system of ‘strategic planning’ across England, known as spatial development strategies. This will see multiple local planning authorities taking a joined-up approach between development needs and infrastructure requirements to find the most sustainable areas to build.

Meanwhile, infrastructure projects will be delivered faster by streamlining consultation requirements for projects to build roads, railway lines and windfarms. The government is also limiting legal challenges to major infrastructure projects from three attempts to one.

The bill will also look to prioritise grid connections for clean energy projects with the government warning that some initiatives are facing waits of 10 years. Labour said introducing a ‘first come, first served’ approach will unlock growth with £200bn of investment to “protect households from the rollercoaster of fossil fuel markets”.

People living within 500 metres of new across Great Britain will also get money off their electricity bills under the plans. Residents will receive up to £2,500 off their bills over 10 years with the discount paid for by raising energy bills by 80p.  

The government has already set out planning changes to reintroduce mandatory housebuilding targets and change rules on building on the green belt in its first few months in Downing Street. 

What has been the reaction to the Planning and Infrastructure Bill?

The government’s planning reforms have earned praise for promising to remove barriers to building homes and delivering infrastructure projects that are needed to boost economic growth.

But ministers have been warned that reformed rules must be backed up with investment at this summer’s spending review.

Rachael Williamson, Chartered Institute of Housing’s interim director of policy, communications and external affairs, said: “A strategic, joined-up approach to planning and infrastructure is essential to delivering the homes that communities need and ensuring that development keeps pace with demand — particularly for the thousands of people struggling to access affordable housing.” 

But Williamson said the construction sector must be “properly resourced and supported” to boost housebuilding.

She said: “We look forward to further announcements in the upcoming spending review and a long-term housing strategy that provides the certainty and investment needed to turn these commitments into reality. Everyone deserves a safe and affordable place to call home.”

Strategic planning also earned praise from Steve Chambers, sustainable transport campaigner at Transport for New Homes. 

“We need to start choosing locations for housing much more strategically, locations that are, or can be connected to existing transport networks to ensure that residents have sustainable transport connections from the day of occupation,” said Chambers.

“Integrating housing with transport planning, as is already done in London with the London Plan and Mayor’s Transport Strategy, should help to achieve this and ensure that wherever your new home is, you can go out the front door and know that there is turn up and go public transport available that connects you to a whole network of destinations.

“To ensure that new developments are truly sustainable however, we need to ensure there is funding made available for new metros, stations and trams, and not just new roads.”

Nathan Emerson, CEO of Propertymark, the professional body representing the property sector, also said that new housing must take into account access to local amenities and “keep pace with real word demand”.

“The legislation must deliver an infrastructure-first approach towards building new homes ensuring there are improved transport links, adequate schools and medical centres, as well as focusing on building housing for an ageing population and homes that are net zero,” said Emerson.

“The reforms must ensure a diverse mix of properties are delivered in the right areas at the right time and mean that local councils have the capacity and resources they need to deliver additional new homes. What’s key is that local knowledge is utilised effectively, and local democracy is fully considered and enhanced when it comes to planning decisions.”

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