This article — the first in a three-part series — explores the structural problems underpinning the UK’s planning regime, the economic drag they produce, and the rationale for sweeping legislative intervention
Rebuilding prosperity through a smarter, faster, and fairer planning system
The UK’s infrastructure and housing landscape is facing a systemic challenge. Years of sluggish approvals, increasing costs, and fragmented local strategies have left the country trailing its European counterparts in delivery speed, investor confidence, and public trust. The Government’s Planning and Infrastructure Bill aims to reset the foundations by addressing these inefficiencies head-on.
A planning system no longer fit for purpose
The average time to secure consent for major economic infrastructure projects has ballooned to over four years, more than double what it was a decade ago. Meanwhile, the volume of applications approved has collapsed — from 325,000 in 2021 to just 239,000 in 2024.
“Inaction would retain a status quo that is increasingly outdated, slow and costly — failing to deliver the infrastructure and housing the country needs.” — Impact Assessment, May 2025
At a time when the Government has committed to delivering 1.5 million new homes and fast-tracking 150 major infrastructure projects before the end of this Parliament, the current regime acts as a bottleneck, not an enabler.
Economic consequences: From growth to gridlock
Without reform, the costs are profound:
- UK infrastructure costs have risen 30% faster than GDP per capita since 2007.
- Britain hasn’t built a new reservoir in over two decades.
- Younger buyers are priced out: Homeownership among 19–29 year-olds has halved since 1990.
And it’s not just housing. Commercial development and strategic infrastructure, both critical to GDP and long-term energy resilience, remain hampered by a system plagued by excessive documentation, legal uncertainty, and staff shortages in planning authorities.
Where the system breaks down
The assessment highlights seven systemic failures:
- Excessive decision times: Only 20% of major housing applications meet the statutory 13-week deadline.
- Capacity shortages: One in four planning officers left the public sector between 2013–2020.
- Legal bottlenecks: Judicial reviews on Development Consent Orders surged to 58%, up from a long-term average of 10%.
- Site-by-site environmental rules: Too rigid and costly, often blocking development entirely.
- Lack of strategic oversight: Planning remains hyper-local, leaving mayors (outside London) without real levers.
- Overly complex consultations: Average statutory pre-application times rose from 20 months to 28 months in three years.
- Infrastructure gridlock: Water scarcity in Cambridge is cited as a live threat to housing expansion.
Rationale for reform: Government intervention
Government sees legislative intervention as the only credible path forward, stating that:
“The shortcomings in the system are largely driven by Government failure… tackling this requires improving existing regulation through primary legislation.”
Reform objectives:
- Address market failures like housing unaffordability and high barriers to entry for SMEs.
- Support Clean Power 2030 by accelerating green infrastructure.
- Deliver fairer compulsory purchase rules to unlock land at scale.
- Create a Nature Restoration Fund to simplify environmental compliance.
- Equip LPAs with resources via planning fees sub-delegation and committee reforms.
The Economic prize: A multi-billion pound impact
The ten-year impact of the Bill is significant:
- Central estimate of Net Present Social Value (NPSV): £3.2 billion
- High scenario: up to £7.5 billion
- Time and legal cost savings alone are valued at £2.1 billion
- Emissions savings add another £147 million
Who benefits?
- Businesses: Especially developers — see reduced delays, lower legal costs, and clearer planning protocols.
- Households: More affordable homes, faster approvals, and better access to infrastructure.
- Local Planning Authorities: An estimated £1.1 billion in new fee revenue for better service delivery.
Looking ahead: A system designed for strategic outcomes
In the next article, we’ll explore how the Bill’s legislative architecture rewires the UK’s infrastructure approval process — from Nationally Significant Infrastructure Projects (NSIP) to EV chargepoints and grid upgrades.
For now, what’s clear is that this reform effort is not a tweak. It’s a wholesale reset — with economic growth, environmental resilience, and housing delivery hanging in the balance.
The post Fixing the foundations: Why Britain needs planning reform now appeared first on Planning, Building & Construction Today.
