New laws to support growth through investment and infrastructure

“The Bill we are publishing today is all about helping our country compete in the global race and building an aspiration nation where we back those who want to get on life.

“We are slashing unnecessary bureaucracy, giving business the confidence to invest, unlocking big infrastructure projects and supporting hardworking people to realise their dreams.

“Already the changes we are making to the planning system are having an impact, with Land Securities giving the go-ahead to a major multi-million pound investment, supporting thousands of jobs in our construction industry. No one should be in any doubt about our determination to make sure Britain, and the British people, rise in the 21st century.” - Prime Minister David Cameron

The UK Government is introducing the new laws as part of a drive to support growth and ensure the country can compete globally. 

The new Growth and Infrastructure Bill brings together a range of measures that are expected unlock billions of pounds worth of investment and create thousands of jobs.

Reforming planning to unlock infrastructure

These reforms will facilitate the creation of thousands of new jobs and encourage billions of pounds of new investment in energy projects, including ￡160 million in new gas market infrastructure.

Currently, developers can be held back from improving their plans because they have no way to vary consents. So, for instance, if a developer wants to incorporate the most recent technology and design to increase energy efficiency, they may be prevented from doing so. This can prevent developers from being as ambitious and innovative as they would like.

An amend to the Electricity Act will mean that if developers want to apply to change their projects, they will in most cases only need to undertake a three month consultation, rather than going through the whole process of applying for consent again. This could unlock investment decisions across a range of technologies, bringing thousands of new jobs and billions of pounds of investment to the UK economy.
 
Second, Government will remove an ambiguity to the Gas Act which has prevented Ofgem from launching an innovation competition that could attract ￡160 million of additional investment into the gas network to make it more efficient.

In addition, Energy Secretary Edward Davey has updated business leaders at the CBI on ambitious reforms Government is proposing to the electricity market. These reforms, published in the forthcoming Energy Bill, will unlock ￡110 billion of new investment, keep consumers bills down and meet climate change targets, whilst supporting jobs, investment and sustainable growth.

Backing people who want to own their own home

Stalled housing site projects are a problem, however, allowing the reconsideration of economically unrealistic ‘Section 106’ agreements, whilst guaranteeing existing affordable housing commitments, could get these projects moving again. Such measures could lead to the completion of 75,000 homes.

Cutting back the volume of paperwork which applicants have to submit with a planning application, which go over and above what is reasonably needed to inform planners about the proposed development.

Stopping misuse of legislation to slow down agreed developments, whilst protecting its use to safeguard cherished community spaces.

Implementing the recommendations from the Penfold review to remove other over-lapping development consent regimes, where multiple state permissions are needed on top of planning permission.

Speeding up the planning system for large scale business and commercial projects. Where developers choose the fast-track route, decisions will be taken in twelve months. Existing requirements to consult local communities are retained.

Backing aspiration by creating more employee owners

Creating a new optional ‘employee-owner’ status for companies to offer, giving workers a financial stake in their firm’s growth and success through tax-free shares.

Backing businesses by helping them compete

Preventing unexpected hikes in business rates on local firms over the next five years. Tax stability is vital as business rates are the third biggest outgoing for firms.