Please note that the Planning and Infrastructure Bill is still in draft form and subject to change. |
The Planning and Infrastructure Bill, introduced on 11 March 2025, represents a significant reform designated to address the UK’s housing shortage and speed up infrastructure development. In this article, we outline the key changes proposed by the bill and explore the predicted opportunities and setbacks.
The Planning and Infrastructure bill aims to support the government’s pledge to build 1.5 million new homes by the end of its term. To achieve this, the bill will streamline planning processes by expediting decisions in changes that will affect over 150 major infrastructure projects, including roads, railways, and renewable energy initiatives. This will indirectly support housing development by improving the transport, utilities and energy networks needed for large-scale residential construction.
The bill introduces a new strategic planning system that aims to simplify current consultation requirements and cut through administrative red tape to prevent unnecessary delays. The bill also proposes that planning application fees are raised and allows local planning authorities (LPAs) to set their own planning fees, the aim here being for this to be reinvested back into the planning system to improve efficiency. This should address a common and recurring criticism of the planning system as things stand – the sometimes extensive delays in determinations, and the inability to have effective and ongoing communication with planning officers.
One of the most significant changes is the expansion of powers for LPAs to acquire land through compulsory purchase orders (CPOs), forcibly taking ownership of the land from those with an interest in it.. This will be achieved by axing the requirement for LPAs to factor in 'hope value' – the speculative value of land if planning permission were to be secured. This should enable land to be purchased at a lower price, making it easier to develop genuinely affordable housing on brownfield sites and making the viability case for CPO and the schemes it supports easier to achieve.
In addition, public sector bodies gain enhanced land assembly powers under the Planning and Infrastructure Bill, thereby gaining expanded authority to assemble and develop land for infrastructure projects. To find out more about how the Planning and Infrastructure Bill will impact the compulsory purchase order process, read our article.
Some of the measures in the bill are focused on supporting the delivery of Nationally significant infrastructure projects (NSIPs), such as railways, motorways and energy projects. Currently, developers require a development consent order (DCO) to proceed with such projects.
The Planning and Infrastructure Bill introduces reforms that aim to speed up approval times by reducing procedural and consultation delays in these complex schemes.
The bill puts statutory guidance on national policy statements – which provide planning guidance for developers of NSIPs – to be reviewed every five years. This ensures that the policies reflect any changing government priorities and technological advancements and would represent a key change for the current arrangements. Click here to read our article for more information about how the Planning and Infrastructure Bill will affect nationally significant infrastructure projects.
In addition, the bill allows the secretary of state to redirect certain projects to different consenting regimes, thus ensuring the government has greater flexibility to move schemes to alternative consenting routes if necessary or appropriate.
To support the government’s Clean Power 2030 Action Plan, the Planning and Infrastructure Bill introduces key reforms in electricity infrastructure, particularly in how projects connect to the National Grid.
Key proposals include shifting from a 'first come, first served' system to a ‘first ready, first connected' system that aims to expedite approved energy projects’ connections to the National Grid. By cutting red tape the government hopes to accelerate grid connection approvals and encourage faster adoption of renewable energy sources.
The Planning and Infrastructure Bill expands the reach of development corporations, which oversee large-scale housing and infrastructure projects by stepping into the shoes of local planning authorities.
New provisions include broader criteria for development corporations, allowing them to cover existing settlements and urban expansions, rather than just new towns. In addition, they will have enhanced authority over infrastructure delivery to coordinate transport, utilities and public services. To find out more about how the Planning and Infrastructure Bill will impact development corporations, read our article.
Recognising the need to balance development with sustainability, the Planning and Infrastructure Bill introduces new environmental protections, including environmental development plans (EDPs). These are to be prepared by Natural England to protect sensitive ecosystems that are affected by large-scale developments. The aim of this measure is to create a ‘win-win’ for nature and the economy, accelerating both economic and environmental growth.
In addition, the bill proposes the creation of a Nature Restoration Fund whereby developers will be required to contribute levies to offset their environmental impact and ensuring a net gain for biodiversity. Note that this does not replace the mandatory Biodiversity Net Gain requirement (which is site specific), but may mean in the future that were issues such as nutrient neutrality to arise, the cost of mitigation could be met through this levy. Click here to read our article for more information about how the Nature Restoration Levy will operate under the Planning and Infrastructure Bill.
It remains to be seen whether the Planning and infrastructure Bill will be a success, and it will likely remain dependent on how the checks and balances that are implemented alongside these increased powers whilst keeping these in check. It does propose some significant changes to a system that is already subject to what feels like constant change, and consultation, and LPAs (and others) may feel rather overwhelmed by the constant flow of amendments and new processes.
The bill does have its critics. For example, some argue that expanding compulsory purchase powers could in fact lead to more disputes, in turn causing increased building on greenfield land. In addition, environmental groups warn that fast-tracking approvals could undermine any ecological protections.
However, supporters believe the bill removes unnecessary obstacles and allow previously blocked projects to progress exponentially.
For more information please contact our planning and infrastructure consenting team.
This article is part of our series analysing the Planning and Infrastructure Bill, which marks a major reform aimed at tackling the UK's housing shortage whilst accelerating infrastructure delivery.
Our articles explore how the key changes will affect various operations across the planning sector and highlight important actions and requirements for authorities, developers and stakeholders.
Read our series on the Planning and Infrastructure Bill
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