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The Department for Levelling Up, Housing and Communities announced on 28th February 2023 that they have launched a Consultation on proposals to increase planning fees and to improve the capacity, capability and performance within Local Planning Authorities.

 

Amongst other considerations, the consultation seeks views on:

 

  • Increasing planning fees by 25% for non-major applications, raising from £462 per dwelling to £578 per dwelling.
  • Increasing planning fees by 35% for major applications, raising from £462 per dwelling to £624 per dwelling.
  • Additional fees for bespoke or ‘fast track’ services.
  • Annually adjusting planning fees based on inflation.
  • Doubling planning fees for retrospective applications.
  • Removing the “free-go” for repeat applications.
  • How to address challenges in recruitment and retention with Local Planning Authorities.
  • Improving the quality of Local Planning authority services by monitoring additional performance measures
  • Ringfencing fees so that they are retained by planning departments rather than being redistributed elsewhere.

 

By increasing the cost of planning applications and introducing fees for services where no fee is currently charged, it is the Government’s ambition to ensure that Local Planning Authorities have the resources to be sustainable and resilient, have sufficient capacity to process planning application and deliver a high performing service for applicants and local communities.

 

Whilst the estimated funding shortfall for the planning application service is currently estimated to be in the region of £225 million annually (33%), The Home Builders Federation estimate that Government intervention in other areas of planning (such as intervention in Policy Framework and Environmental rules) could result in annual supply of new dwellings falling from 233,000 in 2021-2022 to 111,000 by the end of the decade, which would be the lowest level in more than 80 years.

 

The need to invest in our Local Authorities is clear, however questions will be raised as to whether the increase in planning fees as well as Government’s recent intervention in Policy and Environmental rules will result in many applicants feeling the pinch in delivering well designed, much needed new homes, work and public spaces.

 

For further information, please contact Jonathan Buckwell and Jack Harley.

 

Sources:

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