Chancellor Rachel Reeves is preparing to unveil a series of planning reforms before the upcoming budget to stimulate Britain’s sluggish economic growth.
British sluggish economic groReeves to unveil planning reforms
The changes aim to simplify the process for developers to build houses and infrastructure, potentially boosting the economy by around £3 billion annually. However, there is internal disagreement within the government over how radical the reforms should be.
The package targets improving private sector confidence, which recently hit a record low, according to the Institute of Directors. Alongside these planning reforms, ministers are also working on a separate nature bill that would adjust environmental regulations, which they believe currently hinder new developments in some regions.
While some senior officials view these moves as technical updates to existing policies, Prime Minister Keir Starmer has indicated that a new, more comprehensive planning bill is almost certainly necessary. Yet, some ministers argue that pursuing new legislation could be a distracting political battle, especially since much of the desired reform is already underway.
Planning lawyers have criticised the government’s approach, calling it a “chaotic slew of destructive bills” lacking clear strategy and consultation. Meanwhile, the government emphasizes its commitment to modernizing the outdated planning system to facilitate the construction of 1.5 million new homes and key infrastructure projects like the Lower Thames Crossing.
Reeves is also considering amendments to make it easier to build projects with minimal environmental impact, reduce opportunities for judicial reviews that delay projects, and allow approved projects to be modified more easily. These changes aim to pass through the House of Lords before the budget.
At the same time, Environment Secretary, Emma Reynolds is developing a nature bill that would replace the EU’s protected species list with a UK-specific one, a move that has drawn criticism from environmental groups.
The government remains divided over the need for a new planning bill to speed up major infrastructure projects, with some officials wary of reigniting political conflicts. The debate continues as ministers weigh the best path to reform the UK’s planning system.
