Planning Application Fees

Following the Government's confirmation of its planning fee reforms, we examine what the changes mean for applicants, developers, landowners and local planning authorities ahead of the new regime taking effect in December 2026.

 

Back in March, we reported on the Government's proposals to reform England's planning application fee system. Following consultation, the Government has now confirmed that it will proceed with significant changes aimed at increasing fee income for local planning authorities and improving the resourcing of planning services. The new fee regime is expected to come into force on 8 December 2026, subject to Parliamentary approval.

 

A New National Fee Schedule Confirmed

The Government has confirmed that planning application fees will move to a new national default fee schedule based on achieving approximately 90% cost recovery for local planning authorities. The changes are intended to reduce the gap between the cost of processing planning applications and the income currently generated through application fees.

 

The Government considers this approach to strike the right balance between improving planning service resources and limiting additional costs to applicants.

 

Local Authorities to Gain Fee-Setting Powers

One of the most significant outcomes of the consultation is confirmation that local authorities will be able to vary planning fees where they can demonstrate that the national fee schedule does not reflect their actual costs. Under the proposed framework, authorities will generally be able to set fees up to 30% above the national default level, with further guidance and regulations expected later this year.

 

This represents a notable shift away from the long-established nationally fixed fee structure and could result in greater regional variation in planning application costs over time.

 

What Will Applicants Notice?

The updated fee schedule includes increases across a range of application types, with the level of increase varying according to the estimated cost of processing each application category. The Government has also confirmed that annual inflation-linked increases will continue in future.

 

In addition, new flat fees are proposed for certain application types, helping to simplify parts of the existing fee structure.

 

What Does This Mean for Developers, Landowners and Schools?

For applicants, the immediate implication is that planning application costs are likely to increase from December 2026. While planning fees are typically a relatively small proportion of overall development costs, the reforms reinforce the importance of accounting for planning fees at an early stage when preparing project budgets and programmes.

 

The longer-term implications may be even more significant. As local fee-setting powers are introduced, applicants could see greater differences in planning application costs between local authorities depending on local service costs and resourcing requirements.

 

DHA's Closing Thoughts....

The Government's confirmation provides greater certainty regarding the future direction of planning fees and the funding of planning services. While increased fees may be welcomed by many local authorities seeking additional resources, applicants will need to factor these changes into project planning and monitor emerging local fee-setting arrangements.

 

DHA Planning will continue to monitor the implementation of the new regulations and provide updates as further guidance on local fee setting and related reforms is published.