Plan for growth by turning unfit planning system into a magnet for investment

The CBI is calling on the Government to mark the consultation to the National Planning Policy Framework as the ‘start of their ambition’ to reform the planning system.

Publishing it’s new Planning for Growth report, the CBI has identified a series of recommendations to accelerate building projects, boost connections and drive economic growth by going beyond the areas for consultation put forward in the NPPF.

Businesses in sectors as diverse as energy, construction, retail and manufacturing have all pointed to burdensome planning processes as a reason for stopping, pausing, or delaying critical investments in the UK.

The overall effect is of a system that prioritises bureaucracy over delivery, undermines investor and contractor confidence, and acts as a handbrake on economic growth. Concerns have also been raised about significant inconsistencies and variations in planning practices and procedures based on local politics.

Ahead of the Autumn Budget, the CBI is calling on the government to adopt a UK-wide Planning for Growth Strategy, implemented in partnership with devolved governments, that will provide cohesion and consistency across the planning system, based on the following principles:

• Allow Local Planning Authorities (LPAs) to bring in locally determined and ringfenced planning fees. This will make the system more flexible, more aligned to local need, and more able to consider factors such as project complexity, scale, and local economic conditions. It will also ensure revenue generated from planning applications directly supports the planning process.
• Allow applicants to pay for independent consultants employed by LPAs for major applications. This will empower councils to access specialist expertise, expedite decision-making, and sustain a strong project pipeline while ensuring transparency and recovering costs.
• Pilot the use of Local Planning Hubs that can advise LPAs on major infrastructure applications (as well as major housing developments). This would allow LPAs to import the knowledge and expertise required to process major applications crucial to delivering national housing and net-zero targets.
• Promote greater public-private partnership for brownfield site development by using public investment to incentivise the private sector to deliver cleanup and regenerate. This reduces the overall burden on the public purse and promotes faster redevelopment that can benefit communities and stimulate growth.

Download the report for our full set of recommendations.

John Foster, CBI Chief Policy and Campaigns Officer, said:

“Putting planning reform at the top of the in-tray represents a real statement of intent from the new government and their prioritisation of growth as the defining mission of the parliament.

“Unlocking private investment is the catalyst for the productivity gains needed to deliver long-term sustainable growth. But right now, delays in the planning system are putting a handbrake on investment and growth. It’s too slow, too cumbersome, and too bureaucratic for the country’s needs. At its worst, it creates a system where development is seen as an outcome to be avoided rather than an objective to strive for.

"The approval of data centres, the reclassification of onshore wind, and the consultation on the National Planning Policy Framework have all provided some early momentum behind the agenda for change. But this should mark the start of the government’s ambition, rather than the finish.

“With the Autumn Budget fast approaching, there is an opportunity to double down on the ambition to transform the planning system from an economic millstone to an economic multiplier. By focusing on consistency, simplicity and resourcing, the CBI’s Planning for Growth report sets out how the Government can create a system that is smoother, swifter and better calibrated to attract the private capital needed to spread prosperity across every corner of the country.”