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Government’s planning reforms could boost economy by £7.5bn
An impact assessment of the Planning and Infrastructure Bill has estimated that the changes could benefit the economy by up to £7.5bn over the next 10 years.
Government’s planning reforms could boost economy by £7.5bn #UKhousingAn impact assessment of the Planning and Infrastructure Bill has estimated that the changes could benefit the economy by up to £7.5bn over the next 10 years #UKhousingThe government is hoping that its reforms “will turn the tide of the housing crisis” by delivering more homes and critical infrastructure, including public transport links and clean energy projects.
The assessment suggested that lower costs for businesses, fewer delays and more certainty as a result of the bill’s measures could lead to further investment and provide an additional boost to the economy.
The low and central estimates of the analysis come in at £1.3bn and £3.2bn respectively.
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Spring Statement: OBR admits ‘significant uncertainties’ over forecast of 40-year housebuilding highThe assessment does not account for a recent amendment to the Planning and Infrastructure Bill that will scrap statutory consultation requirements – a move that could generate an additional boost of £1bn.
The change will see the average two-year statutory pre-consultation period cut by half for major housing projects.
Angela Rayner, deputy prime minister and housing secretary, said: “Getting Britain building will not only boost economic growth but ensure we deliver the homes and infrastructure working people deserve.
“This landmark pro-growth bill will get spades in the ground and the foundations laid for a new generation of homes, as we deliver on our Plan for Change.”
This assessment comes after the Office for Budget Responsibility (OBR) said in March that the government’s planning reforms could result in annual housebuilding hitting a 40-year high of 305,000 homes, although several factors could knock that estimate.
In its central forecast, the OBR said the reforms could lead to UK net additions to the housing stock of around 1.3 million homes by 2030, a 16% increase.
Overall, this would mean a “modest” increase of 0.5% to the UK’s overall stock to just over 32 million homes by 2030, the OBR said.
The most recent analysis has also been given a ‘green rating’ by the Regulatory Policy Committee, which means the assessment is considered robust and fit for purpose by the independent scrutiny body.
This latest announcement from the government comes after it confirmed that plans for solar panels on all new build homes will include social housing.
The clarification has come after a report in The Times last week revealed that new rules will be introduced which will see house builders mandated by law to install solar roof panels on new properties by 2027.
The government has since confirmed that changes being brought in under the Future Homes Standard will update building regulations for new build homes across all tenures.
However, timings and technical details of the standard will be confirmed in due course.
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