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CBI Wales calls for a well-funded innovative planning system to deliver sustainable growth

05 March 2025

CBI Wales has called for reform of the planning system to kick-start the construction of key projects that will deliver sustainable growth.

In its ‘Planning for Growth’ report, it makes a series of recommendations aimed at building a well-funded, innovative planning framework that will speed up the construction of housing and infrastructure projects.

The report also calls on the Welsh Government to work closely with the UK government and local authority planning departments to improve the system, making it easier for businesses to invest in Wales.

There are five key areas with detailed measures set out in the report. They are as follows:

  1. Provision of better resources for planning authorities by:
  • The Welsh Government providing regular and consistent funding of local government planning systems. The Welsh system has suffered a 50% real-terms budget cut since March 2008.
  • Ringfencing of planning application fees with this pot of money to be spent on improving the planning system.
  • Creating a centralised ‘floating’ team of planners with the expertise to speed up the passage of energy, other projects and to tackle environmental concerns that can hold up applications.
  1. Innovation and technology to be at the heart of an overarching planning strategy which requires:
  • A fresh focus on investment in innovation and technology.
  • The need for local planning authorities to work closely with the Welsh Government economy department to aid consistency of decisions-making across planning departments.
  • Ensuring Technical Advice Notes (TANs) provide detailed advice for developers and decision-makers. These documents must be fit for purpose, align with net zero targets and remove blockers in the planning system.
  1. Boost housing supply and reform of local development plans by:
  • Restoring a planning note known as TAN 1 which requires local planning authorities to maintain a five-year supply of deliverable land for housing.
  • Replacing unused 15-year development plans with fresh proposals once they time expire.
  1. Take steps to tackle a nationwide shortage of planners by:
  • Ensuring the Welsh Government and local authorities work closely with schools, colleges and universities to raise awareness of planning careers.
  1. More efficient and closer working between the devolved and UK governments on large-scale infrastructure projects:
  • Pre-application planning consultations should be reviewed to flag potential snags that delay applications.
  • The Welsh and UK governments must work together to establish an effective planning system that supports the development of large-scale nationally significant infrastructure projects (e.g. offshore wind, Carbon Capture and Storage).

Russell Greenslade, Director, CBI Wales, said:

“It’s a crunch time for growth and businesses looking to invest in Wales. Our need to reach housing targets and improve key infrastructure such as roads can often be frustrated by inefficiencies in the planning system.

“Without urgent reform, there is a danger the Welsh planning service will become a ‘Cinderella’ service. Wales can’t afford to be left behind on sustainable economic growth, especially with the Chancellor looking to leverage the UK’s overall strengths through planning reform, airports expansion and transport infrastructure.

“I welcome the Welsh Government’s recent proposals to reform the land use planning system and delegate decision making powers for certain projects to Planning and Environment Decisions Wales. However, the government must build on this work by incorporating our report’s recommendations.

“Wales’ planning system can catalyse growth if these changes are made. Our proposals will give firms the confidence to place long-term investment in Wales, bringing jobs and prosperity and improvements to infrastructure.”