The Plan for Change – Government Sends Positive Message to Construction

Nuclear plants, trainlines and windfarms will be built quicker thanks to changes to the rules to stop blockers getting in the way of the government’s Plan for Change.

Current excessive rules mean unarguable cases can be brought back to the courts three times – causing years of delay and hundreds of millions of cost to projects that have been approved by democratically elected ministers, while also clogging up the courts.

Data shows that over half – 58% – of all decisions on major infrastructure were taken to court, getting in the way of the government’s central mission to grow the economy, and put more money in hardworking people’s pockets.

The government today confirms this will be overhauled, with just one attempt at legal challenge for cynical cases lodged purely to cause delay rather than three.

This approach will strike the right balance between ensuring ongoing access to justice and protections against genuine issues of propriety, while pushing back against a challenge culture where small pressure groups use the courts to obstruct decisions taken in the national interest.

On average, each legal challenge takes around a year and a half to be resolved – with many delayed for two years or more – and the courts have spent over 10,000 working days handling these cases. This is holding back working people and is getting in the way of our progress as a nation. Examples include:

• East Anglia wind farms were delayed by a group which dragged the case through the courts and lost at every turn – delaying it for over two years.
• Sizewell C, which was taken to court by a small group of activists, with the High Court dismissing it and describing aspects as “utterly hopeless” – despite this, work was left uncertain for two years and legal costs increased
• The A47 National Highway Project, which is improving our roads, was dragged to court by a former Green Councillor – his case was eventually dismissed as having ‘no logical basis’, after delaying the project by two years.

These cases put a hold on people’s lives – harming our efforts to drive down energy bills with clean energy, getting in the way of road improvements which will help people get to work on time, strangling the dream of homeownership and – importantly – scaring away business from building in the UK.

It also wastes tax money, with major road projects paying up to £121 million per scheme being dragged through the courts.

These changes will send a strong signal to global firms looking to do business – that the UK is a great place to invest.

Prime Minister Keir Starmer said:

For too long, blockers have had the upper hand in legal challenges – using our court processes to frustrate growth.

We’re putting an end to this challenge culture by taking on the NIMBYs and a broken system that has slowed down our progress as a nation.

This is the government’s Plan for Change in action – taking the brakes off Britain by reforming the planning system so it is pro-growth and pro-infrastructure.

The current first attempt – known as the paper permission stage – will be scrapped. And primary legislation will be changed so that where a judge in an oral hearing at the High Court deems the case Totally Without Merit, it will not be possible to ask the Court of Appeal to reconsider. To ensure ongoing access to justice, a request to appeal second attempt will be allowed for other cases.

This announcement marks another victory for the builders over the blockers, with the government proving – with actions – that it is set on kickstarting growth and putting more money back in people’s pockets.

It follows a series of interventions from the Prime Minister – dating back to the State Opening of Parliament where he outlined plans to introduce the Planning and Infrastructure Bill to expedite the delivery of high-quality infrastructure.

Since then, the government is speeding up 150 major economic infrastructure projects, including railways and roads – doubling the record of the previous government, unlocking growth, and taking the brakes off Britain.

The government has also set out major reforms to end the block and delay to building homes and infrastructure from current environmental obligations.

A new Nature Restoration Fund would enable developers to meet their environmental obligations more quickly and with greater impact – accelerating the building of homes and improving the environment.

The new common-sense approach doesn’t allow newts or bats to be more important than the homes hardworking people need, or the roads and hospital this country needs.

Growth is the number one Mission of this government. That is why the Prime Minister’s Plan for Change is focused on boosting growth to put more money in working people’s pockets and improving living standards across the country.

Since the election, real wages have grown at the fastest rate in three years, worth an extra £20 a week after inflation, and the average two-year fixed mortgage rate is now about half a percentage point lower than it was at the election.

This government will not relent in its determination to deliver economic growth and fight for working people, which is why the Chancellor hosted regulators in No11 last week to discuss how they can support growth going forward. She will give a speech on economic growth next week to drive home this determination.

Lord Banner KC, author of the Independent review into legal challenges against Nationally Significant Infrastructure Projects, said:

My review concluded that there is a clear case for streamlining judicial reviews on consenting decisions for nationally significant infrastructure projects, given that delays to these projects cause real detriment to the public interest.

In the course of my review, I saw broad consensus from claimants to scheme promoters that a quicker system of justice would be in their interests, provided that cases can still be tried fairly.

I am therefore pleased to see the government acting on the back of my review. In particular, reducing the number of permission attempts to one for truly hopeless cases should weed out the worst offenders, without risking inadvertent delays because judges choose to err on the side of caution.

I look forward to seeing these changes help to deliver a step change in the pace of infrastructure delivery in the months and years ahead.

Keith Anderson, CEO of ScottishPower, said:

We’ve consistently said we’ll increase our investment in the UK if the Government can enact meaningful reforms that speed up planning and unlock economic growth. We welcome today’s announcement as an important step forward, in line with our commitment to doubling our investment in UK electricity grids and renewable energy to £24 billion by 2028.

Connor Teskey, President of Brookfield Asset Management, said:

Planning reform is a key priority for our business in the UK. Whether it’s energy infrastructure, data centres or real estate, all of our investment strategies can be accelerated by a thoughtful and growth-oriented planning regime. We look forward to today’s proposals coming into effect and ultimately deploying more capital into this market.

Tom Glover, UK Country Chair of RWE said:

Climate change protection and low energy bills will only be achieved through the timely delivery of energy infrastructure. We therefore welcome the Government’s focus on streamlining the planning process to ensure nationally significant energy infrastructure cannot be frustrated by objections with no merit.

As a leading developer and investor in energy projects, RWE values close and meaningful consultation with host communities and these proposals, in addition to the establishment of the Nature Recovery Fund, will minimise unnecessary and costly delays to the delivery of energy projects that are the bedrock of economic growth.

John Pettigrew, CEO, National Grid, said:

We welcome plans to speed up the delivery of crucial infrastructure, which will help drive economic growth across the country. The government is right to streamline the planning process whilst ensuring that communities retain the right to shape proposals.

Leo Quinn, Balfour Beatty Group Chief Executive said:

Today’s announcement is a vital step towards kickstarting major infrastructure projects more swiftly, while keeping essential safeguards in place.

Reducing the uncertainty that delays progress and drives up costs should help unlock significant economic benefits and enable faster delivery of the critical infrastructure that the UK urgently needs.

This is a strong start and I look forward to seeing the full plans in the upcoming Planning and Infrastructure Bill.

Alistair Phillips-Davies CBE, Chief Executive of SSE plc, said:

We’re on the cusp of the greatest transformation since the Industrial Revolution as we rewire and rebuild our energy system to achieve clean power by 2030.

And in the form of the Government’s Clean Power Plan, we have a roadmap for getting there. A roadmap that will require around £40bn per year of private investment in clean electricity infrastructure that will in turn help drive economic growth as well as energy security.

But to reach that destination, we need courage and an unwavering focus on unlocking low-cost private investment in low-carbon energy infrastructure – and that starts with faster and more effective planning processes.

Too often, critical projects are caught up in unnecessarily drawn-out planning processes that help nobody. We therefore welcome the Government’s commitment to limit such delays and strike a better balance between scrutinising projects and getting them built at the speed the country needs.

Chris O’Shea, Group Chief Executive of Centrica said:

To reach the Government’s ambitious goals on clean power we need to get shovels in the ground, building green energy infrastructure as soon as possible. We are delighted at this bold move to demonstrate the UK is a great place to invest.

We continue to work with the Government to accelerate the strategically valuable vital projects that will power the UK and provide cleaner, more secure energy to drive the economic growth that Government and businesses like Centrica are working in partnership to deliver.

Charles Emond, President and Chief Executive Officer, CDPQ, said:

As one of the largest infrastructure investors in the world, CDPQ is actively pursuing opportunities in the UK – our largest investment destination outside of North America. We welcome the regulatory changes proposed by the government to promote an attractive regulatory environment and will appeal to additional long-term capital.

Source: GOV.UK

COMMENT:

Tom Barton, partner in the Planning team at Mishcon de Reya, said:

“Any reforms which will speed up the delivery of major projects are welcome. While the right to challenge is sacrosanct, it can certainly be argued that at present the law is tilted too far in favour of those wishing to stall development. It is fantastic to see Lord Banner using his knowledge and insight as a practising planning lawyer to inform and drive change through his position in the Lords.

 “As a country we desperately need to take action to deliver major projects to drive growth – these reforms would be a step towards doing so.”

Eoghan O’Lionaird, Chief Executive, Wates Group

“As a business focused on reimagining places for people to thrive, we welcome the proposed changes to planning and the opportunity to work with Government and local authorities to unlock land and build new homes for communities where they are urgently needed.

“Operating as both developer and builder, we experience first-hand the delays and expense that an overly burdensome planning system has added to the process of building homes, schools, hospitals, and other vital infrastructure, including commercial and industrial buildings that are essential to driving economic growth.

“We also welcome the Government’s reforms to environmental impact assessments. A move to Environmental Outcome Reports would save time and money and could be transformational – we look forward to working with Government on the detail and how this can be delivered in a way that maintains robust environmental protections.  

“These reforms are welcome, but they must be underpinned by the forthcoming ten-year National Infrastructure Strategy – something Wates Group has long championed. Providing the built environment sector with long-term certainty is crucial to supporting investment in new technologies and the training of skilled workers. This will be essential to delivering the next generation of infrastructure and ensuring we are well-equipped to meet the challenges of the future.”