The Kings Speech: Planning reforms and a commitment to growth

The King’s Speech today set out the Government’s legislative programme for their parliamentary term unveiling over 35 bills and draft bills ranging from devolution, rail nationalisation, through to planning reform.

Planning reforms and a commitment to growth

Before the King's Speech, Keir Starmer stated that “Now is the time to take the brakes off Britain” which implies a general commitment to promote growth but also towards relaxing planning rules. King Charles said the Government will pursue sustainable growth by encouraging investment in industry, skills, and new technologies. This is likely to see an expanded Nationally Strategic Infrastructure Projects regime to include onshore wind, but we are also anticipating a return to mandatory housing numbers as was announced within their manifesto to be made through either a revised National Planning Policy Framework or through a Ministerial Statement.

Key points on expected policy reforms

The background paper to the Speech provides some early insights into policy reforms we can expect from the Planning and Infrastructure Bill, which will:

• Streamline the delivery process for critical infrastructure including accelerating upgrades to the national grid and boosting renewable energy, which will benefit local communities, unlock delivery of our 2030 clean power mission and net zero obligations, and secure domestic energy security. The Government will simplify the consenting process for major infrastructure projects and enable relevant, new and improved National Policy Statements to come forward, establishing a review process that provides the opportunity for them to be updated every five years, giving increased certainty to developers and communities.
• Reform compulsory purchase compensation rules to ensure that compensation paid to landowners is fair but not excessive where important social and physical infrastructure and affordable housing are being delivered.
• Improve local planning decision making by modernising planning committees
• Increase local planning authorities’ capacity, to improve performance and decision making, providing a more predictable service to developers and investors; and
• Use development to fund nature recovery where currently both are stalled

Improving living standards

Growth will be targeted toward increasing living standards in every part of the UK, which will be achieved by establishing an Industrial Strategy Council. An English Devolution Bill will give new powers to metropolitan mayors and combined authorities to support local growth plans to bring economic benefits to communities. The Government will legislate to ensure that all significant tax and spending changes are subject to an independent assessment by the Office for Budget Responsibility, whilst Bills will be brought forward to strengthen audit and corporate governance, alongside pension investment.

Reform on the railways

Labour will bring forward two pieces of legislation to improve the railways: the Passenger Railway Services (Public Ownership) Bill and the Rail Reform Bill. These will reform rail franchising, establish Great British Railways and bring train operators into public ownership when franchises expire. King Charles said: “Taken together these policies will enhance Britain’s position as a leading industrial nation and enable the country to take advantage of new opportunities that can promote growth and wealth creation.”

Commitment to clean energy

The Labour Government “recognises the urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future”, King Charles said. It is committed to a clean energy transition which will lower energy bills for consumers over time. A Bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind.

Leasehold reform: Greater rights for renters

Draft legislation promised by Labour will give “greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession” through a new Renters’ Rights Bill. ?The Government will also publish draft legislation on reforming leasehold and commonhold. These bills are unfinished business from the last parliament. The Tories promised to abolish no-fault evictions, but the bill that was supposed to do this was watered down, and then abandoned when the election was called. The Labour Government will however commit to its own version.

Aitchison Raffety