18th May 2012
Budget 2011
Planning Update
24th Mar 2011
Wednesday’s Budget saw the normal headline issues of changes to income tax, fuel duty and increases in alcohol and cigarette prices, but with it being billed as a Budget for Growth, the Chancellor
introduced a number of items of planning reform.
The main points arising from the budget in relation to Planning are below:
• The planning system is to be simplified with a presumption in favour of sustainable development – the default response for planning authorities should be yes. There will be a guarantee that applications
(including the appeal process) will be dealt with in 12 months.
• A new National Planning Policy Framework will be published, merging all the current Planning Policy
Statements/Planning Policy Guidance (PPS/PPG).
• 21 new Enterprise Zones are to be introduced, based on LEP areas. The first 10 have been announced in urban areas including Birmingham & Solihull, The Black Country, Nottinghamshire/Derbyshire. There will
be one in London with a further 10 locations to be announced. Planning rules will be simplified, and
businesses will get up to 100% discount on rates, as well as the potential for capital allowances.
• The Government is going to consult on a scheme to give permitted development rights to convert
commercial space to residential.
• Community Land Auctions are to be introduced, whereby land owners will set a price at which they would be willing to sell, giving the local Council the right to buy the land within 18 months. This would then be sold to developers with the inference being that planning permission would be granted for development.
The Council would retain the balance of money received.
• Green Belt development will continue to be controlled, although national targets for retention will be
removed along with the target for 60% of new houses to be built on brownfield land.
• A new Major Infrastructure Planning System will be introduced for major infrastructure schemes. It is not
clear how this will differentiate from the recently created and rapidly disbanded Infrastructure Planning Commission.
