The UK government is preparing to announce sweeping reforms to its planning system aimed at boosting economic growth and addressing Britain’s sluggish housing and infrastructure development. Chancellor Rachel Reeves is expected to unveil the changes ahead of the upcoming budget, though divisions within the cabinet over how far to go have sparked fresh tensions.
The reform package is intended to simplify rules for building homes and infrastructure projects, potentially adding around £3 billion annually to the economy. However, disagreements persist over environmental protections and legal frameworks, with some ministers warning that too many changes could delay progress instead of accelerating it.
Reeves and Prime Minister Keir Starmer have made planning reform central to their growth strategy. The current bill seeks to streamline construction approvals and reduce costs related to environmental mitigation. Yet, after backlash from developers and MPs, the government is exploring amendments to balance development with environmental safeguards. Among the proposals under consideration are limits on judicial reviews, quicker approval for low-impact projects, and new flexibility in adapting existing project plans.
Environment Secretary Emma Reynolds is also drafting a separate “nature bill” that would create a new UK-based list of protected species and habitats, replacing the current European list. Supporters say this would prevent unnecessary delays to construction, while environmental groups warn it could weaken protections for wildlife and natural areas.
Despite shared goals of spurring investment, government officials remain split on whether to introduce an entirely new planning bill. Some argue it could help fast-track major national projects, such as airport expansions and infrastructure corridors, while others view it as politically risky and potentially redundant. Reeves aims to finalize her proposals before the budget, hoping the reforms will restore investor confidence and stimulate long-term economic growth.