Driving economic development, fostering innovation, and building a greener, more competitive future
Wales is the UK’s energy powerhouse with abundant natural resources, an educated workforce, two green freeports, and great potential for expansion. To capitalise on these resources, more must be done to improve our planning system, which is essential for improving life opportunities, funding public services, and meeting our future generation goals. This is why CBI Wales has published this report that identifies practical solutions to achieve a stronger economy.
Wales needs to prioritise investment in green infrastructure within the planning system, foster innovation across sectors, and enhance collaboration between public and private sectors. This collaborative approach will not only drive economic development but also ensure that the benefits are felt across all communities. The economic prize is substantial. In 2021, a study by the Centre for Cities found that planning reform could boost UK productivity by 10%, equivalent to an additional £180 billion per year.
The problem is clear. The current planning system in Wales is seen as a major obstacle to economic growth due to its slow and complex processes. This has hindered the delivery of crucial housing, infrastructure, and decarbonisation projects. Inconsistencies and delays have eroded investor and contractor confidence, causing delays and even cancellations of projects that would provide much-needed housing and jobs. It is not uncommon for a housing application to take over a year, almost the same time as the on-site delivery of the project. Such experiences align with recent research that found the challenges faced by local authorities in Cardiff, such as inadequate resources and limited enforcement powers, hindered the delivery of high-quality developments.
The CBI is delighted the First Minister of the Welsh Government, Baroness Eluned Morgan, has placed planning reform at the centre of her government programme. This report identifies the key barriers to progress and suggests pragmatic solutions.
Reforming our planning system can deliver more homes, more community facilities, increase jobs, and boost the economy by making Wales a more attractive place to do business. A top-performing planning system delivers tremendous value for money. The economic prize is substantial. In 2021, a study by the Centre for Cities found that planning reform could boost UK productivity by 10%, equivalent to an additional £180 billion per year.
The Welsh planning system's budget has been cut repeatedly over the years, with resources not in line with workload. It is this issue, perhaps above all else, that needs to be addressed. The planning profession and planning system need certainty, professional pathways for the next generation, investment, and innovative new tech. Planning professionals need to be told by government that they will not let things get worse and instead will invest in them for the benefit of local communities.
The first step of local and national government should be to halt the cuts to planning budgets and address the 50% cut to planning budgets identified by the Auditor General for Wales.
This document was written before the Welsh Government consulted on “Promoting a Resilient and High Performing Planning Service.” We have sought to comment on key proposals including the government’s bold proposal to introduce full-cost recovery as well as introduce other measures to accelerate infrastructure planning decisions.
The Welsh Government’s decision to delegate decision-making powers to Planning and Environment Decisions Wales (PEDW) for renewable energy projects up to 50MW should reduce decision times by at least 12 weeks. This initiative aligns with our longstanding advocacy for more efficient infrastructure processes to facilitate timely delivery of major developments.
Addressing the shortage of planners is a critical component of these reforms. Enhancing the capacity and resilience of planning services will ensure that expedited processes maintain rigorous standards, thereby fostering a conducive environment for sustainable business investments.
A sector deal to support renewable energy projects resonates with the CBI’s commitment to drive collaborative efforts between the public and private sectors. A shared vision and coordinated actions are essential for freeing up the planning system to drive jobs and growth.
Key recommendations
- Commitment to Funding: Welsh and UK governments need to commit to resourcing the planning system through regular and consistent funding.
- Floating Resource of Planners: Create a centralised floating resource of planners with expertise in energy projects, which can be deployed to alleviate local bottlenecks.
- Overarching Strategy for Planning: Introduce an ‘overarching strategy’ for planning that adopts off-the-shelf productivity improvements and incorporates “PlanTech.”
- Attracting Planners: Work with education providers to increase undergraduate opportunities and promote planning as a career option.
- Pre-Application Process Review: Urgently review pre-application consultations to identify issues and facilitate a more effective approach.
- Deliver Large-Scale Projects: Work with the UK government to establish an effective planning system that supports large-scale national significant infrastructure projects such as offshore wind and carbon capture and storage (CCUS).
