NHF hails planning reform as measures become law

The government has said the new act could boost the economy by up to £7.5bn over the next decade, and will be a “win-win for the economy and nature”.

It will bring in powers for Natural England to create environmental development plans which it can use to assess the impact of schemes on significant nature protection sites, and a pot for developers to pay compensation towards, known as the Nature Restoration Fund (NRF).

The legislation also introduces reforms to make the compulsory purchase process more efficient, ensuring that compensation to landowners is “not excessive”.

On planning committees, the act will introduce a new national scheme of delegation to ensure there is “greater consistency and certainty” about who in a local planning authority will be responsible for making decisions.

The government said this week that it will consult further on draft regulations for this scheme in early 2026.

There will also be new regulations allowing councils to set their own planning fees so they can cover their costs when deciding upon applications for new homes and infrastructure.

A new system of strategic planning, known as the spatial development strategy, will also be introduced under the legislation. This will look across multiple local planning authorities for the most sustainable areas to build and ensure new infrastructure is also being planned to support the delivery of new housing.

In October, the government announced a raft of 11th-hour amendments to the bill which strengthened call-in powers and prevented planning permissions from being timed out.

The government said that in the coming weeks and months it will set out when the remaining reforms in the legislation will come into force.

Housing secretary Steve Reed said the country’s growth has been “held back by a sluggish planning system” which has stood in the way of “fixing the housing crisis for good”.

“Our landmark Planning and Infrastructure Act will tear down barriers to growth, and this means getting spades in the ground faster, unshackling projects stuck in planning limbo and crucially unlocking a win-win for the environment and the economy,” he added.

Rachel Reeves, chancellor of the exchequer, said the legislation “ends years of dither and delay that has held back too many vital projects”.

She continued: “And we’re not stopping there. This government will leave no stone unturned to get spades in the ground, building the homes families need and the infrastructure our economy needs to thrive.”

David Thomas, CEO of Barratt Redrow, said the act “marks a significant step forward in the government’s planning reforms”.

He said: “As a leading home builder committed to creating high-quality, sustainable communities, we fully support efforts to provide greater certainty and speed in the planning system, helping more families get onto the housing ladder, creating jobs and boosting local economies.”