Why our planning process needs a major overhaul: Olga Watterich of the CBI

At the Autumn Budget at the end of October, the Government must demonstrate it is willing to walk the walk when it comes to planning. UK plc wholeheartedly backs the aspiration to effectively reshape our planning system– but politicians must listen to businesses if they want to achieve the best results.

At the CBI we’ve been speaking to firms across sectors – including retail, construction, manufacturing and energy – and they all told us the same thing: burdensome planning processes are causing firms to stop, pause or delay critical investments in the UK. Our planning system prioritises bureaucracy over delivery. It undermines investor confidence and acts as a handbrake on economic growth.

So, the CBI has drawn up the policy solutions to turn planning problems into opportunities. Last week, we launched our new Planning for Growth report. In it, we’re calling on the Government to mark the consultation on the National Planning Policy Framework as the ‘start of their ambition’ to reform the planning system.

Effective change will require permitting Local Planning Authorities (LPAs) to bring in locally determined and ringfenced planning fees, aligning the system to local needs and allowing for a more flexible approach.

On top of that, we’re calling on the Government to pilot the use of Local Planning Hubs that can advise LPAs on major infrastructure applications and major housing developments. That would give LPAs the opportunity to access the knowledge and expertise needed to process those major applications that will be key in delivering our national housing and net zero targets.

Those are just two of many recommendations for how to undo some of the knots in our planning system outlined in our report.

The Government has been proactive in this realm already. Many Yorkshire and the Humber firms have welcomed the Government’s approval of data centres, the reclassification of onshore wind, and the consultation on the National Planning Policy Framework. Those steps have certainly delivered some early momentum – but they’re only a start.

The message from business is clear: the current system is too slow, too bureaucratic, and too cumbersome for the UK’s current needs – let alone, the UK’s growth potential. Firms need to see action at the Autumn Budget to inspire confidence that their ambitions can be realised and are supported by politicians. That

will be our next chance to improve the planning system. Our members have told us exactly how that can be done – and we will continue to raise their voice with politicians in Westminster and beyond.

Olga Watterich

Deputy Regional Director, Yorkshire and the Humber, CBI