Published: 05 March 2009
Summary
Boost for business as Government moves to reduce planning burden
Detail
Red tape busting reforms to the planning system which could save the economy up to £300 million a year were announced by Housing and Planning Minister Margaret Beckett today.
A series of measures to ease the pressure on businesses and cut down their costs during the challenging economic climate have been set out in the Government's response to the Killian Pretty report, published today by Communities and Local Government.
Key proposals enable more smaller businesses to develop their premises without needing full planning permission, potentially taking nearly 40 per cent (31,500 a year) of minor business and non residential applications out of the system altogether or making them subject to a quicker and simpler process.
Small businesses, shops, schools and hospitals wanting to build small scale extensions to would no longer need to pay the costs (on average £2,000) or wait weeks to start building. Other small redevelopments, such as the replacement of shopfronts, would go through a smoother process.
This is in addition to the range of measures the Government has introduced to simplifying the regulations facing businesses that have so far helped businesses save around £1.9 billion a year.
By taking smaller applications out of the system there will be more time and resources for councils to focus on the major applications that matter most. Developers and councils will also be further encouraged to talk about proposals before a planning application is submitted to iron out potential problems early on.
Other proposals include reducing the burden of information that businesses will be required to provide to support their applications.
Housing and Planning Minister Margaret Beckett said:
"Right now in these difficult economic times we need to reduce the burden on businesses and small shops, and ensure the planning system is not stifling economic recovery.
"Creating a more proportionate and efficient planning applications system now means we are more likely to have crucial development and infrastructure in place when the economic upturn comes.
"These proposals will cut red tape and tackle the delays that both businesses and councils often find exasperating and costly.
"And they could save up to £300million a year by building a more effective and more cost-efficient planning system."
Business Secretary, Lord Mandelson, said:
"Delivering real help to businesses by making their lives simpler in the current climate is absolutely vital.
"Simplifying an unnecessarily complex and frustrating planning system will provide much needed help, saving time and money for, and encouraging new development and growth by, business."
John Wright, National Chairman of the Federation of Small Businesses, said:
"The FSB welcomes moves to simplify the planning system, which can be incredibly time-consuming and burdensome for small businesses. What small firms really need at this time is clarity and fast responses from planning authorities so that they can move ahead with plans to extend their premises or make any changes to their building that will help them to grow and flourish."
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