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Good afternoon and welcome to this week’s installment of Home Front. While you may find yourself preoccupied with the apparent dissolution of the established global political landscape, it’s time to pivot our focus to something more local: Labour’s planning reforms. Today, the Planning and Infrastructure Bill is set to be introduced to Parliament. The implications of this new legislation will directly affect you and could significantly alter where and how you live. Under this framework, the Government has signaled that in Labour’s envisioned Britain of 2025, there will be no room for NIMBYism.
This means that you might soon witness an influx of new towns, housing developments, roads, and even electricity pylons cropping up in your vicinity. It’s entirely possible that you could be residing in a newly constructed home in a town that hasn’t yet been built.
Councillors Stripped of Blocking Powers
Among the most notable changes is the proposal to grant expert local planning inspectors considerably more authority, allowing them the final say on approving specific smaller developments. This would effectively strip local councillors of their power to block all but the most significant projects. Housing Minister Matthew Pennycook asserts that this approach can accelerate progress toward Labour’s ambitious goal of constructing 1.5 million new homes within the next five years. If implemented successfully, it could remove the emotional and political complexities that often hinder developments, thereby preventing costly delays.
However, Labour has already acknowledged that for planning officers to manage this increased workload, there will need to be a substantial increase in their numbers. Consequently, Labour has committed to hiring 300 new planning officers if they are elected. Unfortunately, councils across the nation are currently grappling with a shortage of these professionals, as many have migrated to the private sector over the years. Labour will need to address this brain drain effectively.
The bill also aims to limit the types of planning decisions that require committee review, delegating many to expert officers instead. Going forward, Labour intends to impose “controls over the size of planning committees to foster productive debate,” explicitly stating that “large and unwieldy committees” will be “banned.” Additionally, the bill mandates that planning committee members undergo “mandatory training.” While the specifics of this training remain unclear, it represents a significant step toward professionalizing Britain’s planning procedures, reducing unnecessary delays for essential projects.
New Roads and Rail Links Will Be Forced Through
Another crucial element of the proposed legislation is the establishment of a new generation of government-backed development corporations tasked with creating new infrastructure and towns. Notably, as I reported exclusively yesterday, Labour plans to legislate to empower these development corporations to take control of local transport planning if necessary, ensuring that new towns are equipped with the infrastructure they require. Coupled with the enhanced compulsory purchase powers outlined in the bill, public entities like these new development corporations or Homes England will have the ability not only to expedite the planning process for new development but also to facilitate the swift acquisition of land needed for construction.
This model was effective during the post-war building boom in the 1940s and was similarly successful when constructing housing and venues for the London 2012 Olympics. There’s only one significant reason it may not yield the same results today (which I will discuss shortly). Furthermore, the bill proposes a comprehensive planning overhaul that encourages collaboration among different local authorities to build housing and infrastructure—termed “strategic planning.” This approach is logical, as many developments span local boundaries; it’s surprising this hasn’t been implemented sooner. Lastly, the planning processes for National Significant Infrastructure Projects (NSIPs)—including wind farms, roads, and railways—will be streamlined. Under the new regulations, these major projects will only be allowed a single attempt at a legal planning challenge, down from the previous three. Labour argues that this will hasten progress, citing the example of wind farms in East Anglia that faced delays of over two years due to unsuccessful challenges during the previous Conservative administration.
The End of the NIMBY Era, but Are We Ready to Build?
Collectively, these reforms aim to transform Britain into a landscape where NIMBY attitudes cannot prevail. In Labour’s pro-development planning initiatives, you’ll find a government that is actively fulfilling the commitments made in their manifesto, and doing so at a remarkable pace. So, where’s the catch?
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As I mentioned earlier, there exists a challenge that Labour believes can address Britain’s housing crisis. Historically, large-scale housing and infrastructure projects during the post-war era were primarily financed by the state. Labour has expressed a desire for 40 percent of homes in new towns to be classified as affordable. Beyond this, however, it appears that they are depending on private housebuilders to carry the bulk of the load. Presently, these builders are facing significant challenges: escalating construction costs due to inflation, labor shortages stemming from Brexit, and an aging workforce in the construction sector. There are no easy solutions to Britain’s housing crisis or its persistently low growth rates. However, unless there is a substantial injection of funds into government-backed housing projects or mortgage schemes, this latest piece of legislation represents the maximum effort any government could undertake.
It’s worth noting that many of Labour’s reforms echo those initially championed by former Conservative Housing Secretary Michael Gove before he retreated in the face of backbench opposition. In the Planning and Infrastructure Bill, Pennycook and Housing Secretary Angela Rayner have tackled the pressing questions about how they intend to prevent new developments from faltering at the outset. Nevertheless, two critical questions remain unanswered: first, how does Labour plan to assure private builders that there will be first-time buyers able to afford the thousands of new homes the government envisions constructing in a challenging market (might we see the return of Help to Buy 2.0)? Second, how much financial support is Rachel Reeves willing to allocate to local councils and housing associations to enable them to commence the affordable housing projects they are eager to launch? Perhaps some answers will emerge during the Spring Statement; only time will reveal the truth.
Key Housing
Speaking of headwinds, recent reports have unveiled stark statistics indicating that the UK is currently experiencing the most pronounced downturn in construction since May 2020. Yes, you read that correctly—this downturn mirrors the state of the construction industry at the onset of the coronavirus pandemic when the country was in lockdown.
The S&P Global UK Construction Purchasing Managers’ Index has compiled data reflecting the current state of British construction businesses. They assess vital economic indicators in the sector, such as workforce hiring rates, the issuance of new contracts, and expenditures by builders. The downturn in private construction should raise alarm bells for Labour; S&P Global attributes it to “significant reductions in residential building” and “a lack of new work in the housebuilding segment.”
Private housebuilders consistently express their desire to construct homes—that is their business, after all. Thus, if they are not proceeding with projects, it signals something is amiss. The soaring costs of construction materials and increased wages have significantly impacted housebuilders. Furthermore, the rise in interest rates has stymied the housing market in recent years, dampening demand amid a climate of economic uncertainty. Builders can no longer count on a steady stream of buyers for homes even if they are able to construct them.
Don’t be misled by reports suggesting that house prices are increasing; much of this may be a result of the temporary stamp duty deadline, and what follows is anyone’s guess. If Labour aims to invigorate housebuilding, planning reform is merely the foundational step. The government will need to either invest in council or social housing initiatives or find a method to stimulate the mortgage market, particularly for first-time buyers.
Ask Me Anything
This week’s inquiry comes from X (Twitter). A reader has asked, “Why does Labour want to bulldoze through everything to build more homes?” I’m not convinced that’s their intent at all. I recommend reading my report detailing how the compulsory purchase of land for building will function; it outlines the safeguards and conditions implemented to protect nature and ensure that new developments are “in the public interest.”
Vicky’s Pick
Alright, dear reader, I went there. My curiosity piqued, I set out to understand why there was such an uproar surrounding Meghan Markle’s (or rather, the Sussexes’) new lifestyle show on Netflix: With Love, Meghan. One thing led to another, and before I knew it, I found myself engrossed. Regardless of your stance on the monarchy or your feelings about Meghan, it’s difficult to summon strong emotions about this relatively innocuous filler. It’s not quite a cooking show (aside from a semi-serious episode featuring legendary farm-to-table LA restaurant pioneer Alice Waters), and it lacks the humor of Martha Stewart. Instead, it’s simply a woman sharing how she enjoys creating nice experiences for her friends. At best, it feels like Pippa Middleton’s ill-fated party book expanded into a series. At worst, it comes off as mundane propaganda for traditional domesticity.
While it won’t change the world, and I’m sure countless more deserving culinary talents have been overlooked for this prime slot, I find it perplexing that so many people channeled their energy into getting indignant over something so trivial. What began as a plan to “quickly dip into” the show to “see what it was about” turned into an afternoon of background viewing while I worked on my new book and prepared Sunday dinner with my boyfriend. In the end, we didn’t even notice when another show had begun playing.
