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Make UK Calls for Major Reform of Planning System

Phil Black - PII Editor 17 minutes ago

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Manufacturers are urging a major shake-up of the UK planning system, according to Make UK. They’re calling on the Government to speed up reforms and empower regional mayors to unlock much-needed investment.

Britain’s manufacturing sector is sounding the alarm, insisting that without a more ambitious overhaul of the planning system, key goals related to economic growth, industrial strategy, regional development, and the shift to net zero could be jeopardized.

This plea comes on the heels of a new report and survey from Make UK, which highlights a significant level of frustration among manufacturers who find the current planning system “not fit for purpose.” The report points out that excessive complexity, delays, and rising costs are stifling investment and limiting the UK’s broader economic potential.

Make UK is pushing for the Government to act more swiftly and decisively than what’s outlined in the current Planning and Infrastructure Bill. They’re advocating for regional mayors to be granted more strategic powers to enhance delivery and better coordinate land use, infrastructure development, and industrial priorities. Additionally, they want to see strategic manufacturing and major infrastructure projects receive faster planning approvals.

Planning delays are hindering growth and investment

The report reveals that 46% of manufacturers feel the existing planning system is holding back the UK’s economic potential, while a mere 14% believe it actually fosters growth.

Moreover, 43% of companies indicated that the planning process is slowing down their ability to invest and expand, clearly illustrating how planning delays are affecting business operations.

Manufacturers have pinpointed the most significant obstacles as the complexity of planning regulations (48%), the costs associated with compliance (44%), and inconsistent decisions from local planning authorities (38%).

Make UK argues that these challenges create a tough landscape for manufacturers, making the system hard to navigate, costly to engage with, and unpredictable.

The research reveals a strong desire for regional collaboration, with 65% of manufacturers believing that coordinated planning at the regional level would simplify the expansion process. Additionally, 53% indicated that reducing the costs associated with planning applications and compliance would boost investment.

Environmental requirements creating additional challenges

Environmental regulations have emerged as a major hurdle in the planning process. Over half (54%) of manufacturers noted that these environmental requirements occasionally pose challenges, while 14% reported facing these obstacles frequently.

Make UK emphasizes that while protecting the environment is crucial, the existing system often leads to added uncertainty and delays, especially in industries with stricter regulations. They pointed out the staggering £100 million expense of a tunnel constructed for the HS2 project to safeguard bat habitats, illustrating how environmental mandates can significantly inflate project costs.

Make UK calls for stronger regional powers

A significant majority, over two-thirds of manufacturers, advocate for enhanced planning authority for regional mayors to improve decision-making and speed up essential developments.

Faye Skelton, the Head of Policy and Campaigns at Make UK, shared her thoughts on the findings:

“When we look at an industrial strategy that prioritizes productivity, regional growth, and the energy transition, it’s crucial that our planning system actively supports manufacturing investment. Unfortunately, the current system often falls short, creating more obstacles than opportunities for growth.

“While the Government has acknowledged many of these issues and is working on a comprehensive planning reform program, manufacturers are still feeling a disconnect between what’s promised and what’s actually happening. Many are still faced with a planning system that is slow, complicated, and hard to navigate.

“If the Government truly wants to fulfill its top priority of boosting growth, it needs to step up its efforts and ensure that planning becomes a facilitator rather than a hindrance.”

Make UK’s recommendations for planning reform

To tackle the challenges manufacturers face, Make UK has proposed several key recommendations:

Implement a Manufacturing Growth Test to evaluate whether planning reforms are effectively lowering costs, simplifying processes, and reducing uncertainty for businesses aiming to invest, expand, and decarbonize.
Expedite strategic manufacturing investments and major projects that enhance productivity, support net zero goals, or bolster supply chain resilience.
Put an end to “postcode planning” by establishing stronger national planning regulations to minimize inconsistencies among local authorities.
Simplify the planning application process to make approvals quicker and less complicated.
Revamp environmental processes to ensure they are more predictable, proportionate, and less dependent on individual negotiations.

These findings stem from a survey conducted with 196 manufacturing companies between March 20 and April 10.