New Towns to Gain Planning Powers for Infrastructure Development
In a significant move to accelerate infrastructure development, new towns are set to receive enhanced powers that will enable them to override local planners. This initiative, announced by Housing Minister Matthew Pennycook in an interview with The i Paper, aims to streamline the establishment of new roads and rail links that are crucial for connecting these emerging communities with existing transportation networks.
The government plans to establish development corporations—entities similar to the London Legacy Development Corporation that facilitated the construction of the Olympic Park in Stratford. These newly empowered corporations will be endowed with “stronger and clearer powers” to challenge local planning decisions, effectively preventing the obstruction of essential infrastructure projects such as new roads and railway lines. Historically, development corporations were established in the 1940s to facilitate post-war housing and the creation of new towns, including notable examples like Telford and Milton Keynes.
Pennycook emphasized the importance of these changes, stating, “By giving development corporations stronger and clearer powers, we will accelerate the delivery of high-quality homes, attractive public spaces, and vital infrastructure, ultimately increasing housing supply and fostering economic growth.” As he prepares to present the planning modifications in the upcoming Planning and Infrastructure Bill in Parliament, Pennycook reiterated that these new development corporations will be empowered to address the pressing housing and infrastructure needs of the country.
The Labour Party views these development corporations as a potential solution to the challenges posed by large-scale developments, arguing that they could be led by regional mayors. This strategic approach aims to ensure that when the scale or risk of a development is too substantial for the private sector to manage alone, these corporations can step in to collaborate with private developers in delivering both housing and infrastructure.
Private housebuilders have expressed their support for this announcement. Steve Turner, the executive director of the Home Builders Federation, remarked that it is “essential” to have “an effective central body with the necessary powers to facilitate the planning and delivery of new towns.” He highlighted that development corporations have proven to be effective vehicles for delivering long-term housing solutions and providing certainty in supply.
Rhys Moore, the executive director of public impact for the National Housing Federation, further supported the initiative, stating, “We understand there is a goal for 40 percent of new towns to be affordable, and it is imperative that social housing is central to these plans. The government’s decision to bolster development corporations is a step in the right direction, ensuring that the development of large-scale communities, including essential social and affordable housing, can move forward more rapidly and successfully, supported by adequate and timely infrastructure.”
Labour is optimistic that strengthening the powers of these new development corporations will help them achieve their ambitious target of constructing 1.5 million new homes within the next five years. However, it is important to note that the number of new homes granted planning permission in England fell to its lowest level since 2014 last year.
A similar development corporation was utilized in the Thames Gateway regeneration project, where an analysis by the lobbying firm Public First indicated that the number of homes receiving planning permission more than doubled compared to what would have been granted without the establishment of the corporation.
Additionally, a revision of the National Planning Policy Framework (NPPF) has made local housebuilding targets mandatory and introduced new “grey belt” zones within the green belt that can be prioritized for housing development. Pennycook previously indicated that these development corporations will also possess new powers to compulsorily purchase privately owned land designated for development if deemed to be in the public interest.
Recently, Pennycook exercised his authority to compel a local authority to approve housing plans in alignment with Labour’s amendments to the NPPF. After repeatedly rejecting its own local plan, South Tyneside Council was instructed to submit its housing development plan to the government by March 16, which includes a proposal for 1,200 new homes on green belt land in Fellgate.
Despite these legislative changes, concerns linger regarding potential challenges, such as a skills shortage in the construction industry and the availability of funding for social housing projects, which could impede Labour’s objectives. Pennycook concluded, “Our Planning and Infrastructure Bill will empower development corporations by equipping them with the planning and delivery tools necessary to coordinate and realize well-designed, sustainable, and economically successful communities.”
