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Sunday 26 January 2025 6:00 am  |  Updated:  Saturday 25 January 2025 4:19 pm

Reeves pledges planning reform shake-up to boost growth

By: Elliot Gulliver-Needham

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The new National Wealth Fund (NWF) will take an equity stake in Connect Kerb alongside Aviva Investors, the global asset management branch of Aviva Group.
The new National Wealth Fund (NWF) will take an equity stake in Connect Kerb alongside Aviva Investors, the global asset management branch of Aviva Group.

Chancellor Rachel Reeves has pledged to cut red tape for building homes and infrastructure in a bid to speed up planning application approvals.

Ahead of Reeves’ speech next week on economic growth, the government unveiled its new Planning and Infrastructure Bill, which will be introduced in the spring and help push its plan to build 1.5m new homes over the next five years.

“The government will ensure that when developers submit an application for acceptable types of schemes in key areas – such as in high potential locations near commuter transport hubs – that the default answer to development is ‘yes’,” it said today.

This will include examining whether developers should be required to consult with certain expert bodies and local communities, and replacing the current systems of environmental assessment.

Reeves highlighted that in the first six months of the new government, it has already taken 13 planning decisions and approved 9 nationally significant infrastructure projects.

“Too often the answer to new development has been ‘no,'” said Reeves. “But that is the attitude that has stunted economic growth and left working people worse off.”

“We need to do things differently and that journey began as soon as I started at the Treasury in July. These are our next steps and I can say for certain, there is more to come.”

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Reeves issues warning to successor as she battles to defend record

Reeves is eying mortgage reform as a key growth driver.

Reeves also said the government would be championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space.

Meanwhile, land around transport hubs, such as Castleton Station, will be released through local development orders to allow planning for new building projects.

Reeves committed to making 150 decisions on major economic infrastructure applications over the next five years, more than doubling the decisions made in the previous Parliament and more than 130 made since 2011.

“From day one I have been clear that bold action is needed to remove the blockers who put a chokehold on growth. That’s why we are putting growth at the heart of our planning system,” added deputy prime minister and secretary of state for housing, Angela Rayner.

“Growth means higher wages, better living standards, families raising their children in safer homes, and the next generation taking their first steps onto the housing ladder.

“This year we will go even further to make the dream of homeownership a reality for millions and fix the housing crisis we inherited for good – getting more shovels in the ground to build the homes and vital infrastructure that our communities so desperately need.”

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Top investment bank: Starmer and Reeves left UK ‘no better off than they found it’

Keir Starmer and Rachel Reeves discuss the Great British Summer Savings scheme at a press conference podium with banners b...

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