A new report from the British Chambers of Commerce calls on the government to unlock the planning system to boost investment. Deputy director of public policy Jane Gratton explains
Over the past few years, wave after wave of economic shocks have created a very tough trading environment for SMEs.
Today, as firms continue to battle stubbornly high inflation, rising interest rates and a tight labour market, we must find ways to stimulate business investment and growth. The planning system has a major role to play in unlocking this potential.
Last month, the British Chambers of Commerce (BCC) published its thoughts on how the planning system can be made to work better for business and the economy. In Planning for Business: 2023 and Beyond, we call on the government to ensure the voice of business is heard alongside that of other stakeholders.
We are not asking for major upheaval. We don’t want to destabilise the planning system or exacerbate the delays and uncertainty. But we do want more focus on the needs of the economy and business uses – and a higher degree of certainty in the outcomes of the planning process.
What needs to change?
The saying “less is more” applies here. Constant tinkering and change in planning policy impacts widely across the system. This uncertainty leads to inertia, damages business confidence, and often results in delayed or shelved investment plans.
We need time for changes to be properly implemented and the system to settle. While we support many of the proposals that the government is currently consulting on, particularly moves to digitise the system and remove unnecessary duplication of effort, such changes must be followed by a long period of stability to allow everyone to get on and deliver the infrastructure our economy needs.
Another major priority is resetting the land balance for jobs and homes. Across the country, quality employment land is increasingly being given over to residential uses. Employers tell us they are being squeezed out of town and cities, risking huge problems for the future.
Yes, there is a housing crisis, and it’s right that politicians are trying to sort that out. But all too often, SMEs are struggling to find the land and premises they need to invest and grow, while at the same time, many foreign inward investment opportunities are being turned away.
Local planning authorities must do more to plan proactively for employment land and ensure they can respond positively to inward investment opportunities. In short, business needs must be prioritised in the development management and plan-making process.
With as many as 40% of Local Plans now years out of date, it is becoming increasingly difficult for local economies to achieve their growth potential. Additionally, the misalignment of spatial plans and local economic strategies severely blunts our ambition and potential.
Businesses interacting with the planning system often feel like they’re wading through a treacle. Long delays and inconsistency in decision-making ramp up costs. And, as firms are increasingly operating in a global marketplace, we risk losing investment to countries that can offer a more certain, welcoming and slicker service.
Freeing the planning system will boost the economy
We need to unblock the local planning system to unleash economic growth. The answer lies in boosting skills, experience and resources in our local planning authorities – together with more training of officers and members. We need to improve the speed and quality of the service – and the same applies to statutory consultees.
While the business is willing to pay more (within reason) for a better planning service, all planning fees should be ringfenced for this purpose.
The efficient delivery of major national infrastructure projects is crucial for the success of business and the economy. For example, as we continue our journey towards net zero as a country, businesses want to do their part, but right now, the energy grid simply isn’t fit for purpose.
Modernising the grid is a key priority, and the local planning system must be a key enabler, allowing easier access to national infrastructure and new building projects.
As the political parties consider their priorities ahead of the next General Election, BCC and its Expert Planning Panel speak to leading politicians and senior government officials about what needs to change and why.
Our message is clear: there must be greater recognition of the economic, social and environmental benefits that business investment brings – and more focus on creating an environment where communities and businesses can flourish.
Jane Gratton
Deputy director of public policy
British Chambers of Commerce
Tel: +44 (0)20 7654 5800
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