Economic growth is still being constrained by a planning system in England that is ‘too slow, under resourced and unpredictable’, according to a new British Chambers of Commerce (BCC) report.
The report, Planning for Business and Growth, says that while recent government reforms signal the right intent, further urgent action is needed. The BCC says there needs to be a ‘fundamental reimagining of how planning authorities operate and interact with the business community’.
The report is calling on ministers to
• Go above and beyond its target of recruiting 1,400 planners by the end of this parliament.
• Ensure employment is given equal priority as housing in planning policy and guidance.
• Simplify and speeded up the planning process for business, through the introduction of National Development Management Policies.
• Publish clear, time-bound implementation plans for each major element of planning reform.
• Introduce comprehensive fast-track services for priority projects that deliver on its economic growth objectives.
The report says business investment thrives on certainty, but the planning system in England is failing to deliver that. The BCC says the task for policymakers is to transform planning into a ‘strategic tool for economic development’ that actively helps investment and innovation.
In the report, an SME in Yorkshire says:
“The lack of funding and skilled personnel in local authorities is preventing planning reforms from having their intended impact, regardless of the reforms’ quality.”
While a small manufacturer in the Midlands says:
“Policy change is welcome, but the reality is unchanged: decisions are slow and firms can’t rely on timely planning outcomes”
The report highlights proactive work being carried out by the business community to help improve planning resources. The BCC Planning Skills Fund, supported by Aviva, is already training planning students at universities across the UK, thanks to private sector capital.
Kate Shoesmith, Director of Policy at the British Chambers of Commerce said:
“Rather than being an accelerator for business growth, for too long the planning system in England has been acting as a handbrake on investment.
“The Government has rightly identified that reform is necessary, and we welcome the recent Planning and Infrastructure Act. But businesses need to be confident that the new legislation will deliver, and ministers need to go further and faster.
“That means more planners on the ground, clear timetables for reform and fast-track routes for projects that support economic growth.
“The business community is already stepping up, including through initiatives like the BCC Planning Skills Fund. Now government must match that ambition and turn planning into a driver of growth rather than a drag on it.”
About Hampshire Chamber of Commerce
Hampshire Chamber of Commerce is the independent voice of local business across the county and one of the largest regional business networks in the UK. With a strategic vision to ‘unlock Hampshire’s potential’, Hampshire Chamber brings together the combined influence, strength and expertise of the county’s three former major chambers. It works with over 2,000 individual firms spanning all sectors and sizes of business. Member services include training, advice, international trade documentation, events, networking opportunities and lobbying to policymakers on issues affecting business. Hampshire Chamber’s business network is designed to help any employer to grow and thrive irrespective of their stage on the enterprise journey.
About the BCC Insights Unit
The BCC Insights Unit brings together all the strands of research the BCC undertakes, including the Quarterly Economic Survey, the largest private sector business survey in the UK; the Quarterly Economic Forecast, currently ranked by the Sunday Times as the country’s second most accurate; and a leading programme of business surveys which inform the national economic debate. The Insights Unit was launched on 3 July 2023.