What does the Planning White Paper mean for Towns Fund?
Chloe Salisbury
On 6 August, the Government launched Planning the Future, which sets out the biggest proposals for planning reform in decade. Proposed changes include: streamlining and modernising the planning process, improving outcomes on design and sustainability, reforming developer contributions and ensuring more land is available for development where it is needed. Consultation on the proposals closes on 29 October 2020.
Whilst fixed timescales for implementing the reforms are not confirmed, it is clear that Government is keen to implement the reforms quickly. The planning landscape is therefore likely to change during the preparation of business cases and delivery of priority projects supported through the Towns Fund. While you cannot write your Town Investment Plans or business cases as if these changes have taken effect, you will need to keep live to the changes and consider how you might adapt your projects, as needed.
The Planning White Paper contains 24 proposals. Of these, the following are likely to be most relevant for the projects you are developing in your Town Investment Plans and subsequent business cases.
1. Introduce new ‘Renewal areas’ in local plans. Allocations and designations in local plans will be replaced by three new areas comprising Growth areas (for substantial development), Renewal areas (for existing built areas) and Protection areas. Renewal areas are likely to cover town centres. Each renewal area will be accompanied by guidelines set out suitable development uses, as well as high-level design guidance. Twinned with the flexibilities now allowed through the new Use Classes Order and permitted development these mechanisms could provide more flexibility to deliver broader mix of uses, including without the need for planning permission.
2. Introduce a new standard housing requirement figure which will be provided to all local authorities. Each local authority will need to allocate land suitable for residential development to meet the requirement. The figure provided by Government will take account of land constraints such as designated areas of environmental and heritage value, opportunities to use more effectively use land through greater densification as well as other issues such as relative affordability of homes.
The latest version of the methodology – which is subject to a separate consultation but will likely form the basis of the approach adopted in the Planning White Paper – significantly reduces the number of homes required outside of London and the South East. Where priority projects focus on supporting housing delivery and particularly if development sites require allocation through a local plan, consideration should be given as to whether the need for these homes can still be demonstrated.
3. Streamline the planning application process through greater use of design codes, Local Development Orders and other planning mechanisms. There are existing examples of where local authorities have used Local Development Orders to support town centre/high street regeneration, particularly where proposals focus on shopfront and public realm improvements. They can also be used to support larger scale developments as shown in examples such as Milton Park Business Park in Didcot, Oxfordshire. The use of design codes and pattern books is also encouraged to ensure new development is tailored to the local context and incorporates locally popular designs. Design codes can be used in tandem with other planning mechanisms to streamline consenting. Where planning permission needs to be sought for priority projects, consideration should be given to how alternative planning mechanisms can be used to expedite and streamline the consenting process.
4. Reform of Community Infrastructure Levy and abolition of Section 106 agreements. The existing process of developer contributions is proposed to be replaced by a new Infrastructure Levy that will be charged as a fixed proportion of the development value above a threshold, with a mandatory nationally-set rate. Local authorities will be able to borrow against the Infrastructure Levy revenues so that they can forward-fund infrastructure and will be given increased flexibility to spend receipts on other policy priorities once core infrastructure/affordable housing obligations have been met. Where priority projects are due to partially funded by planning obligations (whether that is Section 106 or CIL), consideration should be given to whether this funding stream will continue.
More generally, the proposals in the White Paper aim to streamline the planning process through a defined 30-month timescale for preparing and examining a local plan, an ‘automatic’ outline planning permission being granted to those sites identified as ‘Growth areas’, and a presumption in favour of development located within Renewal areas. Other proposals to the development management process also aim to shorten the amount of time taken to grant planning permission as well as increase focus on climate change, environmental benefits and energy efficiency. If enacted, the proposals will see significant changes to the planning system, against which Town Investment Plans will be delivered.
As Government progresses the next stages of the reform, and more information or analysis becomes available, we will post updates on this blog. In the meantime, if you would like further insights on the implications of the Planning White Paper please liaise with your Town Co-ordinator.