With the Government launching new consultations on the National Planning Policy Framework – Shannon Fuller, Planning Adviser, Country Land and Business Association (CLA) explains the importance of planning reform for our rural communities and businesses.
The planning system in its current state is impacting the rural economy and preventing the growth of rural businesses. In 2023, a CLA survey identified that 93% of respondents felt that the planning system was preventing economic growth in the countryside. In 2024, a follow up CLA member survey showed that 73% of members said they had abandoned plans to invest in their business because of a lack of faith in the planning system. The rural economy is 16% less productive than the national average. Closing this gap could add up to £43bn to the economy but to do this, changes must be made to the planning regime.
The need to address both backlogs with the planning system and skills shortages must be considered with absolute urgency. There is a lack of planning officers at a local authority level and this not only contributes to delays but also skills shortages. There is a distinctive lack of specialist knowledge of the rural economy, heritage conservation, agricultural development, and natural environment conservation. The 2024 CLA planning survey identified that 94% of rural businesses across England and Wales feel there is a lack of knowledge on rural issues and agricultural matters within the planning system. 92% of respondents felt as though an improved knowledge of these areas within the planning system would be beneficial to projects.
Common planning applications submitted in rural areas include those for on-farm diversification projects (including rural tourism), rural workers’ dwellings, rural affordable housing and agricultural development. These applications are often misunderstood in terms of justification and need and in some cases, the policies written to support them are misinterpreted. The result of this skills gap and lack of understanding is the refusal of applications, which leads to the submission of planning appeals to an already inundated Planning Inspectorate. This skills gap coupled with delays of 6-12 months for applications prevents investment by rural businesses and discourages them from bringing forward proposals that require planning permission.
Fundamentally, until local planning departments receive adequate funding and resources, any attempts at planning reform will lack sufficient impact and won’t enable the expansion of rural businesses. The lack of ringfencing of planning application fees results in the diversion of all or part of planning fee income to other more visible and higher legal or reputational-risk activities, such as social care.
For those opting to take the risk and submit development proposals in rural areas, whether housing or commercial development, they are often held back by a Council’s definition or perception of what development would be sustainable. As outlined by the NPPF, the purpose of the planning system is to contribute to the achievement of sustainable development, but most rural villages and locations are often deemed as ‘unsustainable’. Assessments for sustainability do not acknowledge the differences between rural and urban areas, and this is preventing development that could improve the sustainability of an area. For example, sustainable transport policies written for urban areas will not be appropriate for more remote rural areas.
The current sustainability credentials used in the planning process need reform to bring them up to date with modern expectations, especially in a rural context. Planning policies and decisions do not appreciate the improvements that small-scale development can make for the viability of rural villages, this creates a spiral of decline. Without any kind of growth, existing services and facilities such as post offices, village shops and pubs will continue to close. As these establishments close, villages become more unsustainable in the planning assessment and are further prevented from growth. Settlements should be assessed on the services that could be supported if development were enabled rather than what services and facilities currently exist.
Another issue faced by rural businesses and landowners is the distinct lack of affordable rural housing. Over the past decade, demand for housing in rural areas has grown significantly. From 2011 to 2021, there was an increase of 800,000 households in rural areas (+7.8%) which is much higher than the growth rate in urban counterparts. Despite this, there were only 3,282 social rent homes delivered in 2020/21 in rural areas in England, and according to CPRE, it would take 89 years to clear the social housing waiting list with this build rate. Rural areas are being left behind in all aspects of housing delivery.
There are existing planning routes to deliver rural housing and for the most part these have been successful. Rural Exception Sites (RES) are a well-known tool for delivering affordable rural housing. RES are defined within the NPPF as sites that would not usually be deemed appropriate for development but are granted permission for new homes based on evidenced local affordable housing need. Surprisingly, only 548 homes were delivered on RES in England in 2021/22, despite there being nearly 300,000 people on social housing waiting lists in England’s rural areas. There is a frustrating lack of political support for the development of these kinds of sites across Local Authorities. Most Planning Authorities, because of the overarching resource restraints, prioritise development of larger, strategic sites in urban and peri-urban areas. There is no denying that with ambitious housing targets that are yet to be met, small rural sites have a purpose to play. It must be acknowledged that there is a housing need specific to rural areas and this is why a small number of homes in a large number of villages should be encouraged, particularly those that will deliver much needed affordable housing.
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Planning for growth
Read the CBI’s Planning for Growth report which outlines key priorities for planning reform to drive growth in the UK economy. Focused on three areas:
- Resourcing the Planning System: Ensuring adequate resources are allocated to the planning system.
- Streamlining and Accelerating Planning: Simplifying processes to speed up planning approvals.
- Prioritizing Strategic Planning for Growth: Emphasizing strategic planning to deliver economic growth.
