14th March 2025
“The Planning and Infrastructure Bill introduces a number of changes to legislation aiming to reform the planning system to increase housing and infrastructure delivery, modernise local planning authorities, speed up decision making and the planning process. The changes are the delivery vehicle of the Government’s ambition to ‘get Britain building again’ and meet ambitious house building targets. These are important legislative changes and will impact the day-to-day work of those in the sector.”
The Labour party made significant promises in its election manifesto about overhauling the planning system to reach its goal of building 1.5 million new homes, accelerating decision making, and unlocking land for development. Since coming into power, the Government has vocalised its pro-growth agenda, and its commitment to implementing planning reforms. The Planning and Infrastructure Bill 2025 is an important part of the Government’s strategy in achieving its growth mission – presented on 11 March 2025, it sets out changes to the planning system that Labour hopes will speed up decision making and streamline the delivery of new homes and major infrastructure. This article looks at the key changes brought about by the Bill.
National Scheme of Delegation – a national delegation scheme is to be introduced by the Secretary of State via a change to regulations. Such a scheme is intended to modernise local planning committees and will set out which applications should be determined by officers, and which should go to committee. The aim is to ensure that “the right decisions are being made by the right people at the right level” and reduce delays in the planning process.
Mandatory Member Training – the Bill introduces mandatory training for members of local planning authorities (LPA(s)), who must provide a completion certificate to exercise planning functions on behalf of an LPA. This will arguably ‘level the playing field’ across LPAs, by establishing a minimum level of member expertise and lead to robust decision making.
Planning Fees – LPAs will be able to set their own planning fees, the goal being to help plug the funding and capacity shortfall that many LPAs have experienced. The hope is for the additional money to be “reinvested back into the planning system to speed it up”, but this could take time to materialise, given the current estimated overall annual funding shortfall being £362 million.
Composition of Committees – the Bill sets out controls over the size and composition of planning committees with the aim of ensuring “good debate is encouraged with large and unwieldy committees banned”.
The Bill provides for the (re)implementation of a cross boundary strategic planning system.
Strategic Planning Authorities (SPA) – the Bill introduces SPAs, these will be either strategic planning boards, combined authorities, combined county authorities, upper-tier county councils or a unitary authority (for areas in England).
Spatial Development Strategies (SDS) – SPAs will be responsible for preparing SDS which set out policies in respect of development and the use of land in an area of strategic importance. An SDS may specify infrastructure considered necessary for facilitating development, mitigating/adapting to climate change, or promoting economic, social, or environmental well-being of a strategic area. Once adopted an SDS becomes part of the development plan.
The Bill provides for developers to pay a contribution to a nature restoration fund (administered by Natural England) which will compensate for the environmental impacts of development on a protected feature of a protected site, by bringing forward strategic environmental initiatives in the wider area – that contribution has been termed the Nature Restoration Levy. This brings a more strategic approach to nature delivery than the current ‘per project’ basis, but it will take time for the fund to build up.
Environmental Delivery Plans (EDP) – Natural England will be responsible for preparing EDPs which set out: environmental features likely to be negatively affected by development; conservation measures to be actioned by or on behalf of Natural England; the amount of nature restoration levy payable; and environmental obligations that are discharged, disapplied or modified by developers paying the levy.
Nature Restoration Levy (NRL) – Before development is commenced, where an EDP applies, developers must make a request to Natural England to pay the NRL, and once accepted, they are then committed to paying it. NRL regulations must require Natural England to spend funds on conservation measures for which the levy has been charged.
Reforms to the compulsory purchase regime are intended to speed up the acquisition of land needed for housing and infrastructure. These include the introduction of electronic service of documents, the introduction of the ‘expedited procedure’ (in respect of unoccupied land, or where there is no identifiable interest holder, a general vesting declaration can be made in less than 3 months) and speeding up the process of using directions to remove ‘hope value’ (where justified in the public interest).
The powers of development corporations have been strengthened, including the power to establish a single development corporation relating to the development of more than one new town in England (if the SoS considers this to enable more efficient development). Development corporations can bring together planners, developers, and LPAs; the Government hopes the changes will “help deliver the vision for the next generation of new towns”.
Changes to the NSIP regime, notably to the consultation requirements, are aimed at ensuring quicker delivery of infrastructure projects. These changes are aided by amendments to the Highways Act 1980 and Transport for Works Act 1992 to improve the delivery of transport infrastructure.
The Bill introduces a requirement for national policy statements, against which NSIP are assessed, to be updated at least every five years – ensuring projects and policy align. Where permission is granted for major infrastructure, attempts to challenge a decision will be reduced from 3 to 1 for meritless cases – in accordance with the suggestions of Lord Banner’s review.
The Bill introduces benefits for homes near electricity transmission projects. This includes people living within close proximity of new pylons receiving money off their electricity bills. Separate new guidance will also be published on how developers can provide benefits to communities where transmission infrastructure is located. Such initiatives may make infrastructure development more palatable for the residents it will affect.
Overall, the Bill seeks to improve and streamline numerous aspects of planning and delivery, many of which will be welcomed by the planning sector. However, our view is that the Bill seems likely to bring about evolution rather than revolution. The Government certainly appears to be making steps to act on its promises and strive towards economic growth, but radical change is necessary if it is to come close to meeting its ambitious targets. Will this Bill bring about this radical change? Only time will tell.