What does the Growth Plan 2022 mean for planning?

The new Chancellor Kwasi Kwarteng is clearly out to make his mark and has announced a series of far-reaching planning reforms in his ‘mini-budget’ and Growth Plan 2022. Alongside the many tax cuts, the Government is proposing various initiatives to “…unpick the complex patchwork of planning restrictions and EU-derived laws that constrain our growth…”.

The Growth Plan 2022 contains a series of new announcements, most of which are underpinned by old rhetoric about planning being a blocker to growth. Investment in planning and the public sector must accompany any attempt to speed up delivery and without which many of the headline grabbing ambitions will surely struggle to get out of the blocks.

We have summarised the initial planning implications following the release of The Growth Plan 2022 below:

The Chancellor has announced that the Government is already in discussion with around 40 local and mayoral combined authorities in England to set up Investment Zones. He also noted that more authorities are likely to pursue this initiative. Within these Zones it is proposed there will be lower taxes and a simplified planning regime designed to accelerate growth.

The Plan is light on detail, stating that the level of deregulation and the streamlined mechanism for securing planning permission will follow later in the year. However, the supporting guidance states that this process “…will reduce many of the burdensome requirements which has made the planning of large sites slower and more complex than it should be, to enable developers to bring forward good quality development which responds to the market.”

In attempting to streamline and drive growth it will be critical that this is not at the expense of good planning and decision-making. Investment Zones need to be in the right locations with investment targeting the right sites, supported by the right infrastructure. This requires partnership working and an approach which seeks long term sustainable growth that achieves decarbonisation, environmental enhancement and the delivery of much needed affordable homes and social infrastructure.

The Chancellor’s continuing support in the Growth Plan to accelerate housing delivery will be generally welcomed. The Plan outlines various tax measures designed to reduce the tax burden on those wanting to buy a home. However, these will only succeed if there are homes to buy in the right locations and at an affordable level. The identification of appropriate sites and securing implementable consents are central to this process.

The Plan is pushing for greater use of surplus public sector land to help deliver these new homes. This recognises that there are significant land and built assets in the public sector that can support the aims of the Growth Plan through rationalisation and investment. The Growth Plan proposals allow greater freedom for departments to recycle receipts over multiple years and reinvest the sales of surplus assets. This should help encourage the identification of opportunities and enable departments, including the NHS, to ring-fence investment in public services.

The push to identify surplus public sector land and deliver development is, however, not a new one. The public sector must be supported to work alongside the private sector to help make this happen. Clear policy frameworks and resources for partnership working are required to make best use of surplus public sector land.

As the implementation of the Levelling Up and Regeneration Bill (LURB) continues through the legislative process, the Growth Plan has increased speculation on elements of its delivery by announcing a new Planning and Infrastructure Bill (PIB). The intent is to address the ‘delays’ experienced by major infrastructure projects across the country.

Specifically, the PIB will set out legislation to reduce unnecessary burdens and speed up the delivery of much-needed infrastructure. This includes: reducing the burden of environmental assessments; reducing bureaucracy in the consultation process and reforming habitats and species regulations; as well as various measures to simplify the implementation and variation of the consents required.

Speculation will now intensify on the alignment of the emerging secondary legislation associated with the LURB and the new primary legislation in the PIB. Clarity and consistency will be critical if the ambitions of speeding up delivery are to be achieved.

As is often the case when new announcements are made, the devil will be in the detail. We at AA Projects will be closely monitoring the emerging details and looking for ways to help support our public and private sector clients respond to the latest changes.