Reform the planning system to kick-start Scotland's growth ambitions - CBI Scotland

With businesses facing rising costs and cancelled investment due to planning consenting bottlenecks, the CBI is calling for urgent action to revamp the system and drive growth in Scotland’s economy.

The CBI’s new ‘Planning for Growth’ report’s snapshot survey of CBI Scotland members involved in the planning system found over one-third (32 per cent) suffered delays to planning applications being approved in the past three years. Over half of the firms polled by the CBI say they have waited one year or more for a planning decision. These bottlenecks are holding back growth and leaving a legacy of postponed or cancelled business investment and projects.

To unlock the private investment to deliver new housing, clean energy and infrastructure that drives economic growth, Scotland’s largest business group is calling for consistent planning decisions, more planning staff and funding protected so the service is properly resourced and fit for purpose.

The report recommends

(1) Building the planning system’s capacity to deliver major and complex projects

·       With the Scottish Government announcing widespread reform of public bodies, it is vital that planning services are seen as a vital enabler of economic growth.

·       Planning fees must be ring-fenced so that revenue from application is reinvested to improve the system.

·       Scotland’s shortage of planners must be addressed, with a plannings skills pipeline and a campaign to entice college or university leavers to join the profession.

(2) A faster, simpler route to planning decisions

·       Business investment is being held back by decades-old planning guidance, and planning information requests that halt planning applications until they are resolved.

·       These processes need reformed, so requests for information come up front and councils have a single ‘entry point’ for applying to councils, instead of dealing with multiple organisations in parallel – as they do at present.

·       The applications process for planning consent must be published, giving investors clarity and confidence in the system. The Scottish Government’s proposed Major Projects Office is a positive step – but it must work with business to get its role and remit right.

(3) Give more support to Scotland’s strategic sectors that enable growth

·       Business needs a planning consenting system that matches the scale and pace of Scotland’s clean energy ambitions, particularly in offshore wind, grid and ports projects.

·       Firms want a clear and updated framework for marine planning policy, including fixed timescales and consistency in energy project consenting.

·       Housing should be treated as economic infrastructure, with a target of at least 25,000 homes a year, public delivery milestones and more land supply for construction.

(4) Boost accountability and governance in the planning system

·       With 32 local authorities, two national park authorities and a distinct marine consenting regime, the planning system is too fragmented.

·       Businesses want to see shared planning services and lead authority arrangements should be established for complex applications.

·       Bring greater transparency to the planning system by strengthening the National Planning Improvement Framework - with annual public reporting on consenting decision times, approval rates, backlogs and delivery outcomes across planning authorities.

Michelle Ferguson OBE, CBI Scotland Director, said:

“The Scottish Government's ambitions for economic growth are being held back by a planning system that is too slow, too cumbersome and too under-resourced to meet Scotland's needs. Businesses want to invest, build and create jobs, but too often they find themselves stuck in a planning logjam that undermines confidence and delays growth.

“Current proposals to reform planning and speed up infrastructure delivery are welcome, but we need to move further and faster. It’s only by cutting unnecessary bureaucracy that we can really unlock growth-boosting projects like upgrading our energy grid, building new homes and delivering major industrial projects.

“Government and industry have worked hard to make planning reform a priority. Now is the time to build on that momentum to deliver an efficient, consistent and growth-focused planning system that unlocks investment, drives prosperity and helps Scotland compete for investment on the world stage.”

Gavin Newlands, Chair, the CBI Scotland Infrastructure Working Group and Executive Director of Corporate Affairs, AGS Airports, said:

“Whether it is transport, clean energy, housing or digital infrastructure, Scotland’s future prosperity depends on our ability to deliver major projects at pace. A properly resourced planning system that is transparent, consistent and agile is essential to unlocking investment, accelerating delivery and supporting economic growth.”

Click here to read the full CBI Planning for Growth: Scotland report