The reforms outlined in the Planning and Infrastructure Bill will boost the economy by up to £7.5 billion over the next decade, according to a government impact assessment.
Among the largest direct monetary benefits identified by the assessment is a £157 million saving in planning costs, which the report says will benefit the small, micro and medium businesses ‘disproportionately burdened’ by delays in the planning system.
‘The UK’s planning system constrains delivery of both housing and infrastructure by creating uncertainty and unnecessary costs’, the assessment notes. ‘Through a broad package of reforms, the Planning and Infrastructure Bill will reduce uncertainty, delays and costs in navigating the planning system.’
The claimed economic benefits are in addition to the housebuilding measures already implemented in the new pro-growth National Planning Policy Framework (NPPF), which the Office for Budget Responsibility says will deliver an addition £6.8 billion by 2029/2030.
The analysis includes higher, central and lower estimates for how much money the bill could add to the economy over 10 years, with the highest being up to £7.5 billion, the central estimate £3.2 billion and the lower estimate was £1.3 billion. However, the government believes the total value is an underestimate, with another £1 billion expected to be added following amendments to the bill as it works its way through the Commons and Select Committees.
In an announcement accompanying the impact assessment, the government said:
“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.
“Even this assessment is expected to be an underestimate of the true economic value the reforms will have in boosting development. The current assessment also does not account for recent amendments to the Bill to overhaul the pre-application stage for critical infrastructure, which government analysis suggests will add another £1 billion over this Parliament.”
The deputy prime minister and housing secretary Angela Rayner added:
“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.”
Further reforms tabled at committee stage, and not included in the impact assessment, will streamline the pre-application process for windfarms, new roads and other major infrastructure projects.
