12 March 2025
The British government yesterday introduced its much-anticipated Planning and Infrastructure Bill to Parliament, promising “transformative reforms” aimed at accelerating housebuilding and infrastructure development across Britain.
The legislation, which sits at the heart of the government’s pledge to build 1.5 million homes and deliver 150 major infrastructure projects by 2030, proposes significant changes to planning processes, environmental obligations, and local decision-making powers.
Key Provisions of the Bill
The bill contains several controversial provisions that will fundamentally reshape how planning decisions are made:
Centralisation of Planning Powers
Local planning committees will see their powers substantially reduced through a new “national scheme of delegation” that will determine which applications should be decided by officers rather than elected councillors. The government claims this will streamline decision-making and reduce delays, while critics have raised concerns about the diminishment of local democratic oversight.
Nature Restoration Fund
The bill establishes a Nature Restoration Fund that will allow developers to pay into a central pot rather than mitigating environmental damage on-site. This represents a significant shift from current practice, with Natural England gaining powers to compulsorily purchase land elsewhere for nature restoration projects. This fund will effectively allow developers to proceed with building while environmental improvements are pursued separately.
Compulsory Purchase Reform
Land acquisition powers will be strengthened, with compensation payments to landowners reduced. The maximum compensation for disruption will be cut from £75,000 to £25,000, while the bill also seeks to remove “hope value” from land valuations. These changes aim to make land acquisition cheaper and faster for public authorities and development corporations.
Infrastructure Fast-Tracking
The National Significant Infrastructure Projects (NSIP) regime will be overhauled to expedite major infrastructure projects. This includes limiting legal challenges, with “meritless cases” restricted to a single attempt at legal challenge rather than three. The government notes that 58% of major infrastructure decisions currently face court challenges, causing significant delays.
Clean Energy Prioritisation
Approved clean energy projects will receive priority for grid connections, replacing the current “first come, first served” approach with a “first ready, first connected” system. The bill also includes financial incentives for communities hosting new energy infrastructure, with households within 500m of new pylons receiving up to £2,500 off electricity bills over ten years.
Government and Industry Response
Deputy Prime Minister and Housing Secretary Angela Rayner described the bill as creating “the biggest building boom in a generation” and “a major step forward in getting Britain building again.”
The measures have received broad support from construction and housing industry bodies. Mark Reynolds, Executive Chair of Mace Group, welcomed the reforms, stating, “For too long the UK’s planning systems have inhibited growth, with layer upon layer of checks and balances stifling productivity, confidence, investment and jobs.”
Brian Berry, Chief Executive of the Federation of Master Builders, said:
The new Planning and Infrastructure Bill is a crucial first step in getting Britain building again. In the 1980’s around 40% of new homes were built by SMEs, yet today that figure is around 10%. Small builders across the UK stand ready to play their part in delivering the homes we need, but time and time again we’ve seen barriers keeping them out of the market.
The Home Builders Federation called the bill “a very welcome and positive step towards increasing housing supply,” while the Federation of Master Builders suggested it would help small builders overcome barriers to delivering new homes.
Implementation Timeline
The bill will now begin its journey through Parliament, with committee stages expected to begin next month. If passed, the government anticipates the first measures could come into force by autumn 2025.
Our analysis of the potential impacts of these proposals on sustainable development, local democracy, and environmental protection will be published next week.
James Nute
James Nute has worked in agritech and cryptocurrency for the past decade. He has experience in upcoming new blockchain technologies and has a keen interest in renewable power.