Driving investment: Planning for growth

The current planning system in the UK has long been perceived as a significant barrier to economic growth. Its slow and cumbersome processes have stifled progress, impacting the delivery of essential housing, infrastructure, and decarbonization initiatives. Inconsistencies and variations in planning practices, often influenced by local politics, have eroded investor and contractor confidence, leading to delays in critical projects.

However, change is on the horizon. A Planning and Infrastructure Bill was announced in the King's Speech. The Bill will include measures for:

• Streamlining the delivery process for critical infrastructure including accelerating upgrades to the national grid and boosting renewable energy,

• Reforming compulsory purchase compensation rules to ensure that compensation paid to landowners is fair but not excessive where important social and physical infrastructure and affordable housing are being delivered.

• Improving local planning decision making by modernising planning committees.

• Increasing local planning authorities’ capacity, to improve performance and decision making.

• Using development to fund nature recovery where currently both are stalled.

The majority of the Bill is expected to extend and apply to both England and Wales with some measures also extending to Scotland.

The CBI has worked with members to produce the "Planning for Growth” report seeking to influence government policy in this area. Members have called for:

An ‘overarching strategy’ for planning, making Local Planning Authorities (LPAs) agents of growth by:

• Resourcing the planning system by ensuring the Spending Review allocates sufficient resourcing to LPAs to deliver key decisions within national timescales such as net zero infrastructure. Provide planning authorities with the flexibility to tailor and ringfence planning fees to meet local needs and deliver enhanced planning services.

• Streamlining and Accelerating Planning to achieve greater consistency across Local Planning Authorities (LPAs). By reducing complexity and uncertainty, we can make the UK a more appealing destination for investors.

• Prioritise strategic planning to deliver growth by empowering Combined Authority Advisory Boards to identify opportunities and support pan-regional infrastructure delivery – both physical and digital. This will ensure that local plans for employment land uses are equally as important as those for new housing.

Find out more

Join the CBI Planning Policy Working Group to play a pivotal role in setting the strategic direction for the CBI's planning policy initiatives.

Your participation will directly contribute to shaping policy proposals and recommendations.

Contact [email protected] for more information.