During the state opening of Parliament on Wednesday 17 July, a series of sweeping reforms in planning, energy, transport, and devolution were unveiled. The new UK Government outlined its priorities for the upcoming 2024-2025 parliamentary session in the King’s speech.
A comprehensive list of 40 bills or draft bills was presented, with 25% of them focusing on infrastructure. These bills cover areas such as planning, transport, energy, and devolution. King Charles emphasised the governments commitment to advancing infrastructure and housing projects swiftly.
One of the key pieces of legislation highlighted was the Planning and Infrastructure Bill, aimed at expediting infrastructure development and transforming the planning system into a catalyst for growth. This bill plays a crucial role in the government’s objectives to increase home construction and reduce carbon emissions from the electricity sector.
The bill includes provisions for the introduction or revision of National Policy Statements, with a scheduled review process every five years. Additionally, there is an innovative section on utilising development projects to support nature recovery efforts, in collaboration with various stakeholders and nature delivery organisations.
The proposed legislation aims to revamp compulsory purchase compensation regulations to ensure that landowners receive payments that are deemed fair and reasonable, avoiding excessive compensation when essential social, physical infrastructure, and affordable housing projects are underway. The government anticipates that these changes will facilitate the unlocking of more development sites, ultimately expediting the construction of new homes. Additionally, the bill includes provisions for the modernisation of council planning committees to enhance local decision making processes and bolster the capacity of local planning authorities. As part of this initiative, the government has committed to funding 300 new planners for local councils.
Acknowledging the current sluggish pace of planning decision making, with only a small percentage of authorities resolving a significant portion of their non-major applications within eight weeks, the government emphasised the need for swift action. By boosting local capacity and streamlining decision making processes, the bill is poised to accelerate the housing delivery pipeline. While the legislation lacks specific details on how the Labour government plans to reform the compulsory purchase order (CPO) rules, reports from the Financial Times suggest that new powers will be granted to public entities like Homes England, local development corporations, and councils to execute CPOs for land acquisition without requiring authorisation from a cabinet minister.
Under previous legislation, councils were permitted to acquire land through CPO for social housing or essential infrastructure without factoring in “hope value”, which reflects the potential for future development. However, the Levelling-up and Regeneration Act of 2023 restricted this authority to cases where explicit approval from the communities secretary was obtained. Through primary legislation labour intends to delegate the power to waive hope value in CPOs to public authorities without the need for higher level authorisation.
Some of the government’s planning initiatives, like the lifting of restrictions on offshore wind projects by the energy secretary, do not necessitate legislative action. With a strong parliamentary majority, the new government aims to swiftly implement its policy agenda and fulfil its campaign promises.
The public’s expectations for improved infrastructure and increased housing remain high. The National Infrastructure Commission has warned that delays in project delivery over the next few years could impede economic progress and jeopardise carbon emission reduction targets. The Planning and Infrastructure Bill stands out as a pivotal piece of legislation in the announcements, with potential opposition expected on the horizon.
Whilst the future of planning and construction is looking brighter, it remains to be seen how legislative changes will truly affect the sector. EAP Property Services Group will keep you updated on progress in the blog. If you have a project in mind, we can help navigate the confusing minefield of planning in the current climate.
EAP Property Services Group welcomes the government proposal to modernise planning committees, recruit new planners and streamline the planning system. EAP are well placed to deliver speedy architectural design and planning application drawings that the government proposals require and look forward to assisting property developers and housing associations with the provision of affordable homes and private dwellings that respond to the requirements of achieving net zero carbon emissions.
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