The UK government has unveiled major reforms through the Planning and Infrastructure Bill, aiming to fast-track planning approvals, accelerate housebuilding, and remove bureaucratic hurdles that have long delayed developments. With a goal to deliver 1.5 million new homes alongside 150 major infrastructure projects, the legislation is being hailed as a “seismic” shift in the construction sector.
Deputy Prime Minister and Housing Secretary Angela Rayner described the bill as a game-changer, stating:
“We’re creating the biggest building boom in a generation… These reforms will help builders get shovels in the ground quicker, unlocking economic growth and delivering the homes and infrastructure Britain desperately needs.”
Key Reforms Under the Planning Bill
Faster Planning Decisions & Streamlined Committees
- A national scheme of delegation will determine which planning applications go to committee and which can be approved directly by officers.
- Large, unwieldy committees will be banned, ensuring more efficient decision-making.
- Mandatory training for planning committee members will be introduced.
- Councils will be allowed to set their own planning fees to cover costs, with revenue reinvested to speed up planning services.
Nature Restoration Fund
- A new fund will allow developers to pool environmental contributions for large-scale projects, rather than fulfilling obligations site-by-site.
- This will streamline environmental compliance while ensuring significant ecological improvements.
Compulsory Purchase Reforms
- The compulsory purchase process will be modernised to speed up land acquisition for housing and major developments.
- Compensation will be capped at fair levels, preventing excessive payouts to landowners.
- Decisions on uncontested compulsory purchases will be made by inspectors, councils, or mayors instead of the Secretary of State, further reducing delays.
Strengthened Development Corporations
- Development corporations will be given enhanced powers to deliver large-scale housing and infrastructure projects, including the next generation of New Towns.
- These corporations played a crucial role in post-war regeneration and will now be central to delivering well-planned, sustainable communities with affordable housing, schools, GP surgeries, and transport links.
Strategic Planning for Sustainable Growth
- The bill introduces spatial development strategies, enabling multiple local authorities to plan together for sustainable housing and infrastructure expansion.
- These strategies will be overseen by mayors or local authorities to ensure growth aligns with transport, energy, and public service needs.
National Significant Infrastructure Projects (NSIP)
- The NSIP process will be overhauled to fast-track major infrastructure developments such as wind farms, roads, and railway lines.
- Consultation requirements will be streamlined, and national policy guidance will be updated at least every five years to maintain clarity on government priorities.
- Meritless legal challenges will be limited to one attempt, reducing project delays.
- Changes to the Highways Act and Transport and Works Act will cut red tape, accelerating transport infrastructure delivery.
Accelerating Clean Energy Projects
- A new grid connection system will prioritise projects based on readiness, rather than the current first-come, first-served approach.
- This will cut wait times for clean energy projects, unlocking £200 billion of investment and boosting energy security.
- A major grid overhaul is planned to double the UK’s transmission infrastructure by 2030.
Energy Bill Discounts & Community Funding
- Households living within 500m of new pylons will receive electricity bill discounts of up to £2,500 over 10 years.
- Developers will be required to fund community benefit schemes, including investments in sports clubs, education, and leisure facilities.
- A new community funding framework will allocate £200,000 per km of overhead power lines and £530,000 per substation.
- For example, SSEN Transmission’s power line between Tealing and Aberdeenshire could generate over £23 million in local community funding.
A Game-Changer for UK Construction
The Planning and Infrastructure Bill represents one of the most significant overhauls of the UK’s planning system in decades. By removing bureaucratic barriers, accelerating approvals, and investing in sustainable infrastructure, the government aims to kickstart housebuilding and economic growth.
For contractors, developers, and communities, this legislation could unlock billions in investment, deliver new homes faster, and modernise Britain’s infrastructure—making it a transformational moment for the construction industry.
