In a keynote speech at Siemens Healthineers in Oxfordshire on Wednesday 29th January, Chancellor of the Exchequer Rachel Reeves reaffirmed Labour’s commitment to reforming the planning system to “get Britain building again”. She expressed her surprise at discovering "how slow our planning system is" and “how long it takes to get things done”, emphasising the urgency of speeding up development processes across the country.
A central point in Reeves' speech was Labour's focus on simplifying planning regulations to accelerate house building. She highlighted the government's decision to raise housing targets to 1.5 million homes during this Parliament, making them mandatory to ensure delivery. Reeves also touched on reforming “decades-old green belt policies” to make it easier to build on grey belt land surrounding major cities. She pointed to Labour’s recent efforts, such as resolving 13 major planning decisions in just six months for airports, data centres, and large housing projects, as evidence of the party’s seriousness in tackling the housing crisis.
In her speech, Reeves underscored the importance of new infrastructure to support these housing goals, stressing the need to overhaul the planning system to remove obstacles. Specifically, she addressed the excessive use of Judicial Review, which she said often serves as a "blocker" to development. By changing these rules, Labour aims to fast-track critical projects like nuclear power plants, train lines, and onshore wind farms.
Water infrastructure was singled out as another significant challenge to development. Reeves revealed that the Government has approved water resource management plans that will unlock £7.9 billion in investment over the next five years. These plans include the construction of the Fens Reservoir to serve Cambridge and the South East Strategic Reservoir near Oxford.
In addition to this, Reeves also mentioned transport infrastructure as a potential catalyst for new housing. As part of this plan, the Chancellor proposed a new approach to planning decisions on land around stations, by “changing the default answer to yes”.
All of these measures are set to be supported by the upcoming Planning and Infrastructure Bill, which will be introduced in the spring. Reeves confirmed that the bill will prioritise streamlining the application process and reducing the burdens associated with public consultation. As part of this effort, she announced a major shift in environmental regulations: developers will face fewer environmental requirements when contributing to the newly created nature restoration fund. Reeves made her stance clear, stating, “we are reducing the environmental requirements placed on developers… so they can focus on getting things built, and stop worrying about bats and newts”.
By targeting inefficiencies in the planning system and reducing regulatory hurdles, Reeves reiterated Labour’s mission to fast-track development and meet the country’s growing housing and infrastructure needs.
Stay tuned for more policy updates and developments…
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