Purpose
This briefing paper provides a summary of the Planning and Infrastructure Bill 2025, with a focus on its implications for local councils. The Bill aims to accelerate housing and infrastructure delivery, reform planning and environmental processes, and support economic growth and clean energy targets.
Key Impacts on Local Councils
Planning System Reforms
Localised Planning Fees: Councils can now set their own planning fees within cost-recovery limits, helping to address the £362m annual funding gap in planning services.
National Scheme of Delegation: Central government will define which planning decisions are made by officers versus committees, reducing local discretion.
Mandatory Training: Planning committee members must complete mandatory training before making decisions.
Committee Size Regulations: Government may regulate the size of planning committees to improve efficiency.
Environmental and Nature Recovery
Nature Restoration Fund (NRF): Developers can contribute to national Environmental Delivery Plans instead of providing site-specific mitigation, reducing delays but raising concerns about local environmental oversight.
Strategic Environmental Planning: Natural England will lead delivery of environmental outcomes, shifting responsibility away from councils.
Strategic Planning
Spatial Development Strategies (SDSs): Combined authorities and upper-tier councils must prepare Spatial Development Strategies (SDSs) to address cross-boundary housing and infrastructure needs.
Strategic Planning Boards: Strategic Planning Boards may be established to coordinate SDSs across regions.
Development Corporations
Expanded Powers: Development corporations will have broader geographic and functional powers, including transport planning, potentially overlapping with local authority roles.
Duty to Cooperate: Corporations must work with local transport authorities.
Compulsory Purchase Reforms
Streamlined Process: Faster land acquisition through simplified notices, quicker vesting, and electronic communications.
Hope Value Reform: Councils can apply to remove speculative land value from compensation in affordable housing schemes.
Infrastructure Delivery
NSIP Reforms: Faster approvals for major infrastructure projects, with reduced consultation burdens and fewer judicial review opportunities.
Electricity Infrastructure: Councils must support grid upgrades and may be involved in community benefit schemes such as bill discounts for nearby residents.
Transport and EV Infrastructure
Highways Act & TWA Reforms: Streamlined processes for road and rail projects, including new powers for temporary land possession.
EV Chargepoints: Councils must adapt to new permitting rules that replace licensing for street works.
Opportunities
- Greater funding flexibility through localised fees.
- Faster infrastructure delivery.
- Strategic planning tools to address housing need.
Challenges
- Reduced local control over planning decisions.
- Increased implementation burden including training, systems, and coordination.
- Potential tension with development corporations and centralised environmental planning.
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