Chancellor Rachel Reeves is preparing to unveil a new round of planning reform measures aimed at accelerating housing and infrastructure development across Britain. The initiative, expected before the upcoming budget, is part of Labour’s broader plan to revive sluggish economic growth and restore investor confidence.
Reeves’ proposals are designed to make it easier for developers to build homes and major projects, potentially unlocking an additional £3 billion annually to the economy — a step toward closing the Treasury’s estimated £30 billion fiscal gap. However, divisions have emerged within government over how far-reaching the reforms should be.
Ministers Divided Over Scope of Reforms
Senior ministers are reportedly split over whether to introduce an entirely new planning bill, with Prime Minister Keir Starmer suggesting such legislation is “almost certainly” necessary. Some officials, however, argue that revisiting planning laws now could distract from existing progress.
A Treasury source said that the government has already implemented most of its key changes and warned against “reopening” complex debates. Meanwhile, legal experts have criticized the lack of coherence in current proposals. Planning lawyer Alexa Culver described the approach as “a chaotic slew of destructive new bills with no strategy or vision.”
Streamlining Housing and Infrastructure Projects
Government sources say the chancellor and housing secretary are working together to overhaul what they call an “outdated planning system” to help deliver 1.5 million new homes and advance major projects like the Lower Thames Crossing.
Reeves and Starmer have already placed planning reform at the center of their economic strategy. Earlier this year, Labour introduced a bill to reduce barriers to construction by relaxing costly wildlife protection measures. However, after pressure from Labour MPs, stricter environmental conditions were reinstated, and Reeves is now seeking to strengthen the bill again in the House of Lords.
Amendments to Speed Up Project Approvals
Reeves is reviewing amendments proposed by peers to make it easier to approve projects with minimal environmental impact and to modify approved plans without restarting the process. Other potential changes include limits on who can file judicial reviews, restricting repeated challenges, and preventing courts from overturning planning approvals while cases are ongoing.
If the reforms pass the Lords and receive royal assent before the budget, the Office for Budget Responsibility (OBR) could credit them with adding around £3 billion per year to Britain’s long-term growth forecast.
Nature Bill Could Replace EU Environmental Rules
At the same time, Environment Secretary Emma Reynolds is developing a new nature bill that could replace EU environmental protections with a UK-specific framework. The government argues that a domestic list of protected species would speed up planning approvals by focusing only on genuinely threatened wildlife.
Environmental groups have condemned the proposal, warning it could lead to ecological damage. Craig Bennett, head of the Wildlife Trusts, said it would represent a “regression on EU environmental law” that both the Conservatives and Labour previously vowed to avoid.
Future Planning Bill Still Under Debate
Starmer has signaled that a new planning bill focused on infrastructure could follow, modeled partly on Canada’s approach to fast-track key national projects. Such legislation could allow automatic approval for select developments and restrict judicial reviews that delay major investments.
However, resistance remains within government departments, particularly the Housing Ministry, where officials caution that a new bill could be politically risky and redundant. One senior figure remarked: “What would a new bill even say? There would be about two clauses and that would be it.”
As the debate continues, Reeves hopes her planning reform agenda will demonstrate Labour’s determination to balance growth with sustainability, while signaling to investors that the UK is once again open for business.
