In an ambitious move to address the housing crisis and fuel economic growth, the government has unveiled bold new reforms to unlock untapped land near commuter transport hubs for new housing developments.
These reforms aim to create secure, high-paying jobs and expedite the delivery of critical infrastructure, ultimately bolstering public services and reducing living costs.
Ahead of the Chancellor's speech on economic growth, the government announced its commitment to accelerating its "Plan for Change" milestones. The plan targets the construction of 1.5 million new homes over the next five years and 150 decisions on major infrastructure projects by the end of Parliament. This announcement follows the Chancellor's ambitious reforms introduced in July and furthered by the Deputy Prime Minister through the revamped National Planning Policy Framework.
The government's next steps include streamlining national policies to guide local authorities in making planning decisions that promote housebuilding in key areas. The reforms aim to ensure that when developers submit acceptable applications in high-potential locations, such as near commuter transport hubs, the default answer will be 'yes.' This will unlock more housing at higher densities, central to local communities, and contribute to the government's mission to grow the economy.
These measures promise to transform communities by bringing more shops and homes closer to transport hubs relied upon by working people. The government is also slashing red tape in the planning system, making it more efficient and cost-effective for developers while still protecting the environment. This includes reviewing the input from expert bodies and replacing the current systems of environmental assessment with a more streamlined approach.
Commenting on the plan, Chancellor Rachel Reeves said:
“I am fighting every single day in our mission to kick start the economy, deliver on our Plan for Change, and make working people better off. That includes avenues that others have shied away from.
“Too often the answer to new development has been “no”. But that is the attitude that has stunted economic growth and left working people worse off. We need to do things differently and that journey began as soon as I started at the Treasury in July. These are our next steps and I can say for certain, there is more to come.”
Last year's homebuilding figures fell below 200,000, the lowest in over a decade, prompting the government to take radical action. Since July, Ministers have already made significant planning decisions, approving nationally significant infrastructure projects spanning airports, data centres, solar farms, and major housing developments.
The government has committed to making 150 decisions on major economic infrastructure applications this Parliament, more than doubling the decisions made in the previous Parliament. This will unlock the growth needed to deliver high-paying jobs, affordable homes, and faster critical infrastructure while improving the environment where it matters most.
The Planning and Infrastructure Bill, set to be introduced in Spring, will provide the powers needed to accelerate infrastructure and homebuilding. The Bill includes measures to streamline decisions on nationally significant infrastructure projects, reduce the burden on developers, and update National Policy Statements to speed up decision-making.
Environmental impact assessments will be replaced by simpler Environmental Outcome Reports, saving developers time and money while protecting the environment. The government will publish a roadmap for these new reports in the coming months. Developers will also be able to pay into the Nature Restoration Fund to discharge relevant environmental obligations.
The government is consulting on its 10 Year Infrastructure Strategy, focusing on resilient growth, delivering clean energy by 2030, and achieving net zero by 2050. The strategy aims to secure the growth benefits of the transition and improve public services.
The government's bold new steps signal a decisive shift towards growth and development, ensuring win-win outcomes for the country and the economy.
Image credit: iStock
