Government tables last-minute Planning Bill amendments amid push for growth

Ministers have unveiled a package of last-minute amendments to the Planning and Infrastructure Bill, aimed at accelerating development and boosting economic growth ahead of next month’s Budget.

The changes, which will be debated in the House of Lords at the bill’s report stage on Monday, 20^th October, include new powers for the housing secretary to prevent local councils in England and Wales from rejecting planning applications. The government says the reforms will help remove legal and bureaucratic “blockers” slowing down major projects such as reservoirs, wind farms, and large housing developments.

The bill, which has been progressing through Parliament for several months, is expected to receive royal assent next month. Ministers hope the Office for Budget Responsibility (OBR) will recognise the reforms’ potential to stimulate long-term growth and tax revenues, bolstering Chancellor Rachel Reeves’ efforts to stabilise public finances.

At its core, the bill seeks to shorten planning times for major infrastructure projects, limit repeated judicial reviews, and introduce a “nature restoration fund” allowing developers to offset environmental impacts. The government argues these measures will help deliver its target of 1.5 million new homes during the current parliament and speed up the rollout of new energy and transport infrastructure.

According to ministers, local councils are holding up development, with nearly 900 major housing projects blocked in the past year alone.

Among the latest amendments, ministers would gain the ability to issue “holding directions” preventing councils from rejecting planning applications while considering whether to use their “call-in” powers, which allow the government to override local decisions. Currently, holding directions can only be issued to stop councils approving developments.

Officials believe the change could save months in the planning process. Another amendment would stop approved housing schemes from expiring while subject to lengthy legal challenges.

Catherine Williams, planning director at the Home Builders Federation, welcomed the move.

“These changes show government are serious about intervening if local authorities do not take a proactive stance on development,” she said.

However, industry figures remain cautious. One noted that while the measures were helpful, they may not have an immediate impact.

“At the moment it’s all about the market, consumers, mortgage rates and the Budget. In the long term it’s good, but it’s just not going to put rockets under housing delivery in the short term.”

The government has also targeted Natural England, saying it wastes “precious resources” by being legally required to respond to every local authority query related to nature. Under the new amendments, the body would have greater discretion to focus on complex cases and issue standard guidance for simpler ones.

Planning lawyer Alexa Culver, of RSK Wilding, warned that the changes could have serious consequences.

“The amendments “allowed the secretary of state to override planning authorities’ ability to refuse planning permission even in cases where there will be ‘irreversible and uncompensated nature loss, where infrastructure isn’t in place to sustain the new developments, or where there is insufficient water for the homes to access.’”

She added that allowing Natural England to delegate its advisory role to other organisations could make it harder to prevent harmful developments in protected areas.

Another amendment would permit non-water sector companies to build reservoirs classed as nationally significant infrastructure projects. Robbie Owen, infrastructure planning partner at Pinsent Masons, described it as a “technical measure,” adding there was “nothing in the amendments that would be a game-changer for national infrastructure projects, in terms of strengthening the consenting process and on subsequent judicial reviews”.

The government says the package will also accelerate the rollout of around three gigawatts of onshore wind farms, and that 150 planning decisions on major infrastructure projects are expected this parliament, with 21 already made.

Chancellor Rachel Reeves said the amendments demonstrated Labour’s commitment to growth.

“The outdated planning system has been gummed up by burdensome bureaucracy and held to ransom by blockers for too long.”

However, the amendments have provoked a strong backlash from environmental groups.

Penny Mills, Director of Devon CPRE, described the proposals as “a dangerous erosion of democracy".

“This could sound the death knell for democracy in our planning system, as we know it. They are an astounding capitulation to the same big developers that have consistently failed to deliver the homes people need. How on earth can anyone, let alone our Government, think this is acceptable?”

Roger Mortlock, chief executive of CPRE, said:

“The Housing Secretary claims that sluggish planning has ‘real world consequences’. So too would the removal of vital legal safeguards. Blocking judges from halting approvals while legal challenges proceed would allow unlawful projects to cause irreversible damage to communities, wildlife and the wider environment. Giving ministers powers to override local council rejections further strips communities of their voice in decisions that affect their areas, as does restricting access to judicial review.

“CPRE's research shows there is enough brownfield land in England for more than 1.4 million new homes. It’s possible to build the affordable and sustainable homes people need while still protecting the countryside and nature. What's required isn’t the removal of democratic safeguards, but a shake-up of our broken housing market and proper investment in a planning system that works for communities, not just big developers.”

The Planning and Infrastructure Bill is expected to face a final vote in the Lords next week before moving to royal assent.