Major Planning Reforms Expected Ahead of Budget

Chancellor Rachel Reeves is preparing to unveil a package of significant planning reforms ahead of next month’s Budget, aimed at boosting private investment and tackling sluggish economic growth. The measures are expected to make it easier to deliver housing and infrastructure, with officials estimating they could add around £3 billion a year to economic output.

 

However, the scope of the reforms is proving contentious. While the Treasury favours bold changes to accelerate development, some ministers argue only limited technical adjustments are needed. There are also divisions over whether to introduce a completely new planning and infrastructure bill — which some see as necessary, while others warn it could complicate and delay the current legislative programme.

 

Among the reforms under discussion are:

 

• Tighter limits on judicial reviews, to reduce delays to major infrastructure projects;

• New powers for the Prime Minister to fast-track nationally significant schemes'

• Environmental reforms through a forthcoming Nature Bill, replacing EU habitat rules with UK-specific protections to speed up approvals — a move welcomed by developers but criticised by environmental groups; and

• Amendments in the House of Lords, including measures to ease post-approval design changes and speed up low-impact projects.

Planning reform is central to the government’s growth strategy, with Reeves and Prime Minister Keir Starmer describing the current system as a major barrier to productivity and investment. But ministers remain divided, and environmental groups are mobilising in opposition.

 

The coming weeks will test Labour’s ability to balance economic growth ambitions with environmental commitments. If Reeves can secure parliamentary backing before the 26 November Budget, it could mark an early win for the government’s economic agenda — but political and legal battles lie ahead.

 

We’ll be closely monitoring further announcements in the lead-up to the Budget.