MHCLG Proposes More Changes to Accelerate Housing Delivery

As the Planning and Infrastructure Bill progresses through report stage in the Lords, the Government has tabled a raft of new amendments. Altogether the Ministry of Housing, Communities, and Local Government (MHCLG) is proposing some 67 changes to the Bill which aim to centralise decision-making and accelerate the delivery of new housing and infrastructure.

MHCLG's most significant ask is the creation of new ministerial "holding directions". This would give the Secretary of State the power to prevent local planning authorities from refusing an application while it is considered for a call-in. At present, ministers are only allowed to issue holds on applications councils are set to approve. The Government has justified the measure as a direct response to the "nearly 900 major housing schemes blocked in the last year alone". This could be a potent tool to override local opposition to new building.

Another big change targets legal delays, with a new law that would prevent planning permissions for major housing schemes from expiring if they are subject to judicial review. This would, in effect, stop the clock on permissions, removing a risk for projects that have already secured approval. This is complemented by other pro-growth measures, including a push to accelerate the delivery of reservoirs and wind farms through tweaks to the Development Consent Order (DCO) process. The proposals also streamline Natural England's statutory remit, aiming to refocus the body on "high-impact" cases rather than on responding to every query from local authorities.

The reaction has not been universally positive, with environmental and countryside groups condemning the move. The Campaign for the Protection of Rural England called the new holding directions a "dangerous erosion of democracy". The Local Government Association has raised concerns that new powers risk eroding the democratic role of local councillors, and warned that their place in local decision-making should not be diminished.

Many peers, who will vote on the amendments over the next two weeks, have also expressed frustration at the lack of time to consider the changes. Whilst the Government has a large majority in the Commons, it can't count on the same level of support in the upper house and there is a chance the amendments will be voted down. The Government would likely respond by reintroducing the changes in the Commons, after which the Lords would be given another opportunity to accept, reject, or counter-propose. Such a scenario would be a further test of the Government's mettle and could delay Royal Assent of the full Bill by several months.

For those in the housing and infrastructure sector, the Government's approach is a welcome change in direction, three months after MHCLG signalled its intention to water down the Bill.

Despite the amendments, though, some of the biggest problems with the status quo remain untouched. The very mechanics of judicial review are a constant threat to major schemes, but rumours the Government is preparing to alter the process remain just that. Similarly, the process challenges at the Building Safety Regulator, one of the biggest bottlenecks to new housing delivery, isn't addressed by the amendments at all.

The Planning and Infrastructure Bill is a strong signal of intent, but the industry will be watching to see if the Government has the political will to push through the amendments in the face of opposition and to go further in tackling the more systemic blockages.