In the King's Speech, Labour introduced the Planning and Infrastructure Bill, a significant legislative move aimed at accelerating the development of infrastructure and the construction of 1.5 million homes.
The King said in his speech:
My ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing.
This bill, one of 40 legislative proposals, seeks to streamline the planning system, ensuring a faster and more efficient approval process for major projects.
Key Provisions of the Bill
Simplified Consent Process: The bill intends to simplify the consent process for significant infrastructure schemes, reducing the bureaucratic hurdles that currently delay project approvals. This change aims to expedite the initiation and completion of critical infrastructure developments.
Modernised Planning Committees: By modernising planning committees, the government hopes to increase the efficiency of application processing. This reform is expected to facilitate quicker decision-making, enabling faster project launches.
Compulsory Purchase Compensation: Reforming the rules for compulsory purchase compensation is another critical aspect. The new legislation aims to ensure that compensation to landowners is "fair but not excessive", balancing the need for development with the rights of property owners. This is particularly relevant for building affordable housing and essential infrastructure.
Unlocking Development Sites: The bill focuses on unlocking more sites for development by improving land assembly processes. This includes uniting separately owned parcels of land, which is anticipated to speed up housing construction and make homes more affordable.
Nature Recovery and Development Funding: The government plans to leverage development projects to fund nature recovery initiatives. This approach seeks to balance environmental conservation with the need for development, addressing both ecological and housing needs simultaneously.
Prime Minister Sir Keir Starmer said:
Our work is urgent. There is no time to waste. We are hitting the ground running by bringing forward the laws we will need to rebuild our country for the long-term – and our ambitious, fully costed agenda is the downpayment on that change..
Broader Impact and Scope
The majority of the Bill's provisions will apply to England and Wales, with some measures extending to Scotland. This comprehensive approach underscores the government's commitment to addressing housing shortages and infrastructure needs across the UK.
Chancellor Rachel Reeves recently announced plans to build 1.5 million new homes over five years, reinstating compulsory housebuilding targets for local councils. Reeves emphasized that the planning system reforms would facilitate building on less desirable green belt areas, referred to as the "grey belt" by Prime Minister Sir Keir Starmer.
Addressing Local Concerns
Labour's Pat McFadden acknowledged potential controversies, including local opposition to certain developments, often termed "nimbyism" (Not In My Back Yard). Despite these challenges, McFadden stressed the necessity of building more homes to make housing accessible and affordable for future generations.
Opposition Views
The Conservative opposition has voiced concerns about Labour's plans, particularly regarding green belt protections. Chris Philp, the Conservative shadow House of Commons leader, argued that these plans might compromise green belt areas and override local councils' decisions. Despite the Conservatives' record of building 2.5 million homes since 2010, Philp highlighted that this falls short of the target of 300,000 homes annually.
Conclusion
Labour's Planning and Infrastructure Bill represents a bold step towards addressing the UK's housing crisis and infrastructure needs. By streamlining the planning process, reforming compensation rules, and unlocking development sites, the government aims to accelerate construction and make housing more affordable. As the bill progresses, it will undoubtedly spark further debate on balancing development with environmental and local community concerns.
IBB's Caryn Beidas, Residential Development Partner, as quoted in the UK Property Forums, comments:
Labour's commitment to reform the planning system and get the nation building again has resulted in a confidence in the housing industry that we've not seen for some time. Rachel Reeves intends to impose housing building targets for councils, enable planning permission to be granted for 'Grey Belt' land and get large-scale housing developments that have stagnated moving again. The increase in share prices for housebuilding companies since the election was announced is evidence of this renewed confidence. It is an exciting time for all those involved in the residential development sector, including us property lawyers!
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