CBI urges government to go further with planning reform, saying current system ‘prioritises bureaucracy’

Sir Keir Starmer’s new administration has prioritised reforming the planning system as a way of building houses and generating growth.

In her first speech as Chancellor, Rachel Reeves said she was prepared for “short-term political pain to fix Britain’s foundations” by ripping up planning rules to build more homes and critical infrastructure.

Deputy Prime Minister Angela Rayner has said homes will be built on the green belt, and some developments might be forced through despite local concerns if councils fail to hit housing targets.

Earlier in the week, Ms Rayner announced a New Homes Accelerator taskforce, which will push through housing projects stuck in the planning system and mired in red tape.

However, the CBI wants the new government to go even further with its reforms.

Publishing its new Planning for Growth report today, the business body has identified a series of recommendations to accelerate building projects, boost connections and drive economic growth.

It said that a wide range of businesses, from energy and construction to retail and manufacturing, have all pointed to burdensome planning processes as a reason for stopping, pausing, or delaying critical investments in the UK.

The planning system “prioritises bureaucracy over delivery, undermines investor and contractor confidence, and acts as a handbrake on economic growth”.

Ahead of this autumn Budget, the CBI is calling on the government to adopt a UK-wide planning for growth strategy, implemented in partnership with the metro mayors like Tracy Brabin and Oliver Coppard.

John Foster, CBI chief policy and campaigns officer, said: “Putting planning reform at the top of the in-tray represents a real statement of intent from the new government and their prioritisation of growth as the defining mission of the parliament.

“Right now, delays in the planning system are putting a handbrake on investment and growth. It’s too slow, too cumbersome, and too bureaucratic for the country’s needs.

“At its worst, it creates a system where development is seen as an outcome to be avoided rather than an objective to strive for.”

He said the approval of data centres, reclassification of onshore wind and consultation on “should mark the start of the government’s ambition, rather than the finish”.

Mr Foster added: “With the autumn Budget fast approaching, there is an opportunity to double down on the ambition to transform the planning system from an economic millstone to an economic multiplier.”

CBI CEO Rain Newton-Smith was one of a number of business leaders who met Ms Reeves yesterday in the Treasury.

The Chancellor said: “I will lead the most pro-growth, pro-business Treasury in our history – with a laser focus on making working people better off. That can only happen by working in partnership with businesses: big, medium and small.”