To meet the government’s target of 370,000 new homes per year, planning approvals must rise by 53%. The UK’s planning system is infamously slow, restrictive, and often blamed for holding development back. Labour is now banking on a ‘radical evolution’ of the current system to push housebuilding to a ’40 year-high’.

In Wednesday’s spring statement, Chancellor Rachel Reeves reinforced plans to get “Britain building” and recently announced a £2 billion grant to deliver 18,000 social and affordable homes across England. Reeves pointed to key changes in the National Planning Policy Framework (NPPF), including the return of mandatory housing targets and the development of grey belt land which are expected to permanently boost GDP by 0.2% by 2029/30, adding £6.8 billion into the economy.

The Planning and Infrastructure bill is expected to introduce sweeping changes to help deliver Labour’s ambitious target of 1.5 million homes and fast-track decisions on 150 major infrastructure projects before the next election in 2029. Deputy Prime Minister has described the bill as a ‘game-changer’ for UK development.

What’s in the bill?

  • Compulsory purchase reform – The process will be streamlined to prevent excessive landowner compensation and speed up the removal of hope value for projects in the public interest. Where there are no objections, councils, mayors, or inspectors will be empowered to approve projects instead of the Secretary of State.
  • Strategic planning – Mayors and local authorities will introduce spatial development strategies across England, ensuring better coordination between housing and infrastructure needs.
  • Planning committees – A national delegation scheme will determine which applications go to committees and which can be handled by planning officers, reducing delays from inefficient or overly large committees. Training for committee members will also be introduced.
  • Development corporations – Strengthened development corporations will oversee large-scale developments, including the government’s new towns initiative.
  • Nature restoration fund – A newly established fund that will pool contributions to finance large-scale environmental projects, promoting sustainable development.

The government has identified planning reform as a critical lever to unlock growth and improve building performance. Whether these measures will be enough to meet Labour’s ambitious targets remains to be seen over the next few years. However, the commitment to overhaul the planning system marks a significant shift. If Britain is serious about building, this is exactly the kind of bold approach we need.