What do the proposed changes to Local Authority decision making powers under the Planning and Infrastructure Bill mean in practice?

In this article, I look at the changes to the planning system under the Planning and Infrastructure Bill (“the Bill”) which the government says is central to its plan to “get Britain building again and deliver economic growth”. Whilst the Bill contains significant reforms to various aspects of the planning system, I explore some of the key measures in the Bill relating to Local Planning Authority (LPA) decision making.

Fees for planning applications

Currently, planning application fees are set nationally and do not fully cover the costs incurred by LPAs in processing applications. Estimates provided by the government suggest an annual funding shortfall of £362 million (based on local government spending data for 2023-24).

What’s changing?

• Local fee setting: the Bill grants the Secretary of State the power to allow LPAs to set their own planning fees
• Cost recovery principle: however, the above power is subject to the caveat that fees should not exceed the actual cost of determining an application and income from fees and charges must be ring-fenced for spending on an LPA’s relevant planning function
• Safeguards against excessive fees: the Secretary of State may direct the LPA to review the level of the fee and retains the power to set the fee amount for that LPA.

The government believes that increased fee income will help LPAs determine applications within the required statutory periods by providing an increased level of resources.

Planning committees

What’s changing?

• National scheme of delegation:  the Bill seeks to introduce a national scheme of delegation that will, through regulations, set out which planning functions should be delegated to planning officers for a decision and which should be referred instead to a planning committee or subcommittee
• Committee size limits: the Bill provides the Secretary of State with the power to prescribe the size and composition of committees
• Mandatory training for committee members: councillors involved in planning decisions will be required to undergo training related to the exercise of their planning functions. Satisfactory completion of the training will be evidenced by a certificate of completion. A councillor who does not hold a valid certificate of completion would be prohibited from carrying out planning functions on behalf of the LPA.

Reaction

The government has faced questions whether these measures would undermine local democracy. In particular, the Local Government Association, whilst supporting some of these proposals, has raised concerns that:

‘Planning committees make decisions on only a small percentage of applications each year – and those applications typically involve either larger or more controversial schemes that require greater scrutiny by those who represent their place and communities. This democratic role of councillors in decision-making is the backbone of the English planning system…..Potentially removing the ability for councillors to discuss, debate or vote on key developments in their localities could erode public trust in the planning system and local government itself.’

However, in the government’s opinion, ‘the best way for councillors and communities to engage in the development proposed for their areas is through the local plan process’.

What does this mean for developers and Local Authorities?

• Developers may face varied fee structures but should benefit from faster decisions if LPAs are better resourced. Changes to the committee system means developers may gain more certainty and benefit from a more standardised decision making process
• Local Authorities may gain greater financial control but must ensure fees remain reasonable and performance improves. However, Councillors will have even less of a role in planning decisions if changes to the committee system and the introduction of a national scheme of delegation are implemented.

Next steps

The Bill is still making its way through the Parliamentary process and is currently at the committee stage in the House of Commons and further amendments are possible. However, these reforms signal a shift towards more localised fee-setting combined with a more standardised decision making process.

We will keep an eye on this and will update you when there is more to say. In the meantime, if you have any questions or concerns please do get in touch with either me or Kate Jardine.