Government Promises ‘Seismic’ Reforms to Unlock Biggest Building Boom in a Generation

A major overhaul of the UK’s planning system has begun, with the government promising the “biggest building boom in a generation” through a raft of reforms aimed at accelerating housebuilding and infrastructure projects.

The Planning & Infrastructure Bill, which is being introduced to Parliament today, is designed to streamline the planning process, remove barriers to development, and support the government’s target of delivering 1.5 million new homes.

Deputy Prime Minister and Secretary of State for Housing Angela Rayner hailed the Bill as a “seismic” change that will “get Britain building again” by cutting through bureaucratic delays and legal challenges that have slowed development for years.

Major Reforms to Planning & Development

The Bill introduces a new national planning policy framework, setting out a clearer, more structured approach to decision-making on new housing and infrastructure.

Key measures include:

• Planning Committee Overhaul – New rules will set out which types of planning applications are decided by local officers and which go to the committee. Councils will also be able to set their own planning fees to cover costs, while mandatory training will be introduced for planning committee members.
• Nature Restoration Fund – Developers will be able to offset environmental damage by contributing to a new fund that will finance nature restoration in alternative locations.
• Compulsory Purchase Reform – Landowners will no longer receive compensation for ‘hope value’—the assumed future value of land with planning permission—when their land is acquired for development.
• New Towns & Development Corporations – The government will establish new development corporations with enhanced powers to drive the creation of new towns.
• Strategic Planning Framework – A new spatial development strategy will allow regional mayors and local authorities to coordinate growth across multiple areas, ensuring that housing and infrastructure development go hand in hand.

Infrastructure & Energy Projects to be Fast-Tracked

The Bill also aims to accelerate major infrastructure projects, particularly in transport and energy, by reducing legal hurdles and simplifying approval processes.

• Nationally Significant Infrastructure Projects (NSIPs) – The approval process for NSIPs will be streamlined, cutting back on bureaucracy and limiting legal challenges to a single court attempt for cases deemed ‘meritless’.
• Transport Planning Reform – Amendments to the Highways Act and Transport & Works Act will remove planning barriers for road and rail projects, ensuring quicker progress.
• Faster Renewable Energy Connections – A new “first ready, first connected” system will replace the existing grid connection model, reducing waiting times of up to 10 years for wind and solar power projects.

£250 Energy Bill Discounts

In a bid to mitigate local resistance to new electricity transmission infrastructure, households living within 500 metres of new pylons will receive up to £250 off their energy bills per year for a decade.

Additionally, developers will be required to invest in local communities, funding projects such as sports facilities, educational programmes, or leisure centres. The government estimates that one upcoming project—SSEN Transmission’s power line between Tealing and Aberdeenshire—could see local communities receive £23 million in funding for local initiatives.

Rayner: ‘We Are Backing the Builders’

Unveiling the reforms, Angela Rayner said: “We’re creating the biggest building boom in a generation as a major step forward in getting Britain building again and unleashing economic growth in every corner of the country.

By lifting the bureaucratic burden that has held back developments for too long, we are backing the builders, taking on the blockers, and delivering the homes and infrastructure this country so badly needs.”

She added that the reforms would directly address the housing crisis, ensuring that not only aspiring homeowners but also families stuck in temporary accommodation would benefit from increased housebuilding.

The Bill will now begin its passage through Parliament, with both industry and opposition figures expected to scrutinise its implications in the coming weeks.

Industry Reaction

Clive Dickin, CEO of the NASC said: “We fully support the government’s ambitions and agree we need to see reform of the planning system. But while this a good start, there remain plenty of other structural challenges that will potentially hold back economic growth, not least major workforce shortages.

Until we address the skills shortages across the construction sector, including a major lack of scaffolders, many of the projects the government wants to see kick-start economic growth won’t get off the ground.”