Government's Planning and Infrastructure Act passed

On 18 December 2023, the UK government’s Planning and Infrastructure Act 2025 achieved royal assent, marking a significant milestone in the nation's efforts to build 1.5 million homes. This landmark legislation made its final passage through Parliament, reflecting a robust commitment to housing amidst a wider series of reforms aimed at reshaping national planning policy. Ben Standing, Partner in planning at UK and Ireland law firm Browne Jacobson, expressed that “following hot on the heels of the wide-ranging reforms to the National Planning Policy Framework (NPPF) announced earlier this week, the passage of the Planning and Infrastructure Bill today indicates the government is doubling down on its commitment to putting housebuilding at the centre of its economic growth mission.”

The focus of the recently enacted Planning and Infrastructure Act is largely on facilitating large-scale developments, aimed at addressing housing needs through effective infrastructure planning. Standing elaborated on the legislative changes, noting that “there’s a clear link between the legislative and policy instruments being used by government.” This includes streamlined consultations for nationally significant infrastructure projects, enhanced powers for development corporations tasked with delivering new towns, and increased compulsory purchase order powers directed at vital infrastructure such as homes, schools, and hospitals.

Moreover, the Act proposes replicating successful spatial development strategies from London in other English regions to enhance collaborative planning efforts among local authorities. As Standing observed, this approach “is designed to facilitate a joined-up approach across multiple local authorities to identify the most suitable places to build houses and associated infrastructure.” This aims to simplify the fragmented decision-making processes within local authorities, fostering consistency at a national level and making the planning application process more comprehensible for developers.

However, Standing also cautioned about the importance of considering the impact of new housing on local communities. As he noted, “with the discourse often around which areas carry the ‘burden’ of new housing, planning reform should be complemented by a dedicated drive to meaningfully engage communities so the benefits of development are shared by everyone.” He further suggested that while initiatives like electricity bill discounts for communities housing new energy infrastructure are beneficial, the government should consider establishing citizen assemblies to ensure developments align with community priorities like healthcare, education, transportation, and recreational spaces.

Additionally, the looming challenges of acute skills gaps and escalating costs related to raw materials and borrowing were highlighted as critical factors for developers. Standing remarked that it is essential for the government to address these issues and evaluate how regulations and new taxes, such as the Building Safety Levy, are impacting construction project viability. The passage of the Planning and Infrastructure Act constitutes a pivotal moment in the UK’s housing strategy, promising to transform planning frameworks and expedite the necessary housing developments to meet national targets.