New chancellor announces measures to reform planning system and reintroduce housing targets

Ms Reeves said that “our antiquated planning system” leaves “too many important projects tied up for years and years in red tape before shovels even get in the ground”. 

The chancellor said: “We said we would grasp the nettle of planning reform, and we are doing so. Today I can tell you that that work is under way. 

“Over the weekend, I met with the prime minister and the deputy prime minister to agree the urgent action needed to fix our planning system. 

“Today, alongside the deputy prime minister, I am taking immediate action to deliver this Labour government’s mission to kick-start economic growth and to take the urgent steps necessary to build the infrastructure that we need, including one-and-a-half million homes in the next five years.”

She added: “First, we will reform the National Planning Policy Framework, consulting on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets.

“And as of today, we are ending the absurd ban on new onshore wind in England. We will also go further and consult on bringing onshore wind back into a nationally significant infrastructure projects regime, meaning decisions on large developments will be taken nationally, not locally. 

“Second, we will give priority to energy projects in the system to ensure that they make swift progress.”

Ms Reeves said that the government will create a taskforce to “accelerate stalled housing sites in our country”, beginning with Liverpool Central Docks, Worcester Parkway, Northstowe, and Langley Sutton Coldfield, representing more than 14,000 homes. 

She said: “We will also support local authorities with 300 additional planning officers across the country. Fifth, if we are to put growth at the centre of our planning system, that means changes, not only to the system itself, but to the way that ministers use our powers for direct intervention. 

“The deputy prime minister has said that when she intervenes in the economic planning system, the benefit of development will be a central consideration that she will not hesitate to review an application with a potential gain for the regional and national economies warrant it.”

Angela Rayner, deputy prime minister and housing secretary, will also write to local planning authorities alongside the National Planning Policy Framework consultation “making clear what will now be expected of them, including universal coverage of local plans and reviews of green belt boundaries”. 

“These will prioritise brownfield and grey belt land for development to meet housing targets where needed. And our golden rules will make sure that the development this frees up will allow us to deliver the thousands of affordable homes too, including more for social rent. 

“Six, as well as unlocking new housing, we will also reform the planning system to deliver the infrastructure that our country needs,” she said. 

Ms Reeves acknowledged that “there will be opposition to this”.

“I’m not naive to that, and we must acknowledge that trade-offs always exist. Any development may have environmental consequences, place pressure on services and place pressure on services and rouse voices of local opposition, but we will not succumb to a status quo which responds to the existence of trade-offs by always saying no.”

Ms Reeves added: “With these steps, we have done more to unblock the planning system in the past 72 hours than the last government did in 14 years. 

“Be in no doubt we are going to get Britain building again, we are going to get Britain’s economy growing again, and there is no time to waste.”

In its manifesto, Labour pledged to build 1.5 million homes over the course of this parliament and deliver “the biggest increase in social and affordable housebuilding in a generation”.

To achieve this goal, it said it would “immediately update the National Planning Policy Framework to undo damaging Conservative changes”, including restoring mandatory housing targets for councils.

The manifesto explained how Labour will “strengthen planning obligations” to ensure new developments provide more affordable homes, make changes to the Affordable Homes Programme (AHP) to “ensure that it delivers more homes from existing funding”, and support councils and housing associations to build their capacity and “make a greater contribution to affordable housing supply”.

It promised to prioritise and increase protections on newly built social rented homes, alongside pledging more devolution to combined authorities and steps to improve building safety.

Commenting on the announcements, Andy Hulme, chief executive of Hyde, said it is “heartening to see the new government hitting the ground running”.

He said: “There is a desperate need to build more homes in England. Research shows 8.5 million people in England are in housing need and 4.2 million people would have their housing need fixed by being able to access social housing. The new government is correct that there is no time to waste to solve the housing crisis.

“Crucially, not only will building more social and affordable homes help tackle the housing crisis, it will play a crucial role in boosting economic growth.

“The reintroduction of local housing targets is an important step if the government is to meet its target of delivering 1.5 million new homes. Local targets ensure councils make a commitment to deliver new homes, and also help to identify where new homes are needed most and where these homes can physically be delivered in local areas.

“We look forward to seeing more detail on the specific planning policy changes to support sustainable development of affordable homes, but welcome the overriding message that this government is going to back communities that are crying out for new affordable homes. 

“It’s essential that these welcome reforms are accompanied by a clear commitment to a long-term rent settlement for social housing providers, to provide the resources and capacity for not-for-profit charities to play our part in building these new homes and continuing to invest in the homes we already provide.”

Fiona Fletcher-Smith, chair of the G15, said Ms Reeves’ speech “makes a start in addressing the challenges faced in delivering social and affordable homes” but said it “falls short of providing the detail so many need”. 

She said: “Reform of the planning system and reinstating local building targets are positive moves and should speed up developments. It is also good to see the government view new housing as an asset. 

“However, the private sector alone cannot deliver the homes London and the country need. Not-for-profit housing associations, with the right support, can play their role. 

“To do this, we need the government to guarantee long-term rent certainty, allow access to the Building Safety Fund, and allocate the Social Housing Decarbonisation Fund efficiently.”

Scott Black, chief operating officer at Places for People, said the chancellor’s statement “has our unequivocal support”, adding “we need more new homes and there is no time to waste”.

He said: “The measures Rachel Reeves has announced today are a positive first step for housing of all tenures including much-needed new affordable homes. 

“As well as bringing forward the delivery of new homes, our own ‘Time to Build’ research illustrated that approximately three-quarters of people also want greater investment in local infrastructure to support new housebuilding, which must not be forgotten.

“Building must be scaled up now and we are ready to do our part to help. On top of mandatory house building targets and a task force to accelerate stalled housing sites, we think more can be done to get Britain building again.”

He said to maximise investment in the sector and tackle the current housing crisis for those most in need, “we need certainty and more specifically, confirmation on rent at CPI plus 1% while the financial settlement between government and housing associations is reviewed”. 

“This would provide housing associations nationwide with the stability to invest in the homes they own and to accelerate building new homes.

“This is an exciting time, and we look forward to further details of the government’s strategy, including the greenbelt review and recruitment of 300 more people into planning which will help to get things moving again,” Mr Black said. 

He added: “For too long we haven’t done what is necessary to meet the nation’s supply and demand challenges, and it is great to hear the new chancellor address some of the key barriers that have held us back for too long, so early in her tenure, a clear framework that unlocks more land for new homes and delivers planning consents quickly and efficiently is needed if we are to meet the needs of the nation.”

According to a report in The Guardian, Labour has approached former Conservative minister Nick Boles to lead on its planning reforms. 

Mr Boles was planning minister in David Cameron’s coalition government. 

At the end of last week, senior sector leaders and trade bodies reacted with hope and encouragement to the Labour Party’s general election victory, saying that “the time for talking is over, it’s time to build”.