New analysis shows economy could be boosted
by up to £7.5 billion over the next decade thanks to
the pro-growth Planning and Infrastructure Bill
Planning reforms to accelerate the delivery of new homes, roads
and railways, and clean energy projects will boost the UK
economy by billions of pounds, according to new analysis.
The Planning and Infrastructure Bill's Impact Assessment,
published today (Tuesday, May 6) has shown the government's
pro-growth changes to get Britain building could benefit the
economy by up to £7.5 billion over the next 10 years.
A growing economy is at the heart of our Plan for Change to
improve the lives of hard working people and by making it
quicker and easier to build 1.5 million new homes, the reforms
will turn the tide of the housing crisis and ensure critical
infrastructure – including public transport links and clean
energy projects that will protect billpayers – is sped up.
Lower costs for businesses, fewer delays and more certainty
as a result of the Bill's measures could lead to further
investment and provide an additional boost to the economy.
Even this assessment is expected to be an underestimate
of the true economic value the reforms will have in boosting
development. The current assessment also does not account for
recent amendments to the Bill to overhaul the pre-application
stage for critical infrastructure, which government analysis
suggests will add another £1 billion over this Parliament.
This huge boost to the economy is on top of the measures already
implemented in the new pro-growth National Planning Policy
Framework (NPPF). The Office for Budget Responsibility recently
said the changes to NPPF alone will drive housebuilding to its
highest level in over 40 years, and deliver an additional £6.8
billion by 2029/2030.
Deputy Prime Minister and Housing Secretary, said:
“Getting Britain building will not only boost economic growth but
ensure we deliver the homes and infrastructure working people
deserve.
“This landmark pro-growth Bill will get spades in the ground and
the foundations laid for a new generation of homes, as we deliver
on our Plan for Change.”
The analysis has also been given a ‘green rating' by the
Regulatory Policy Committee, which means the assessment is
considered robust and fit for purpose by the independent
scrutiny body that considers them.
The Bill will help deliver on the Plan for Change by streamlining
the building of 1.5 million homes and crucial infrastructure
needed to make Britain a clean energy superpower and protect
billpayers and reduce future energy shocks.
This will help put money back into the pockets of working people
and support the government's push to make at least 150 decisions
on major infrastructure projects this Parliament, with 17 decided
so far.
Further reforms tabled at Committee Stage, and not included in
the impact assessment, will streamline the pre-application
process for windfarms, new roads and other major infrastructure
projects.
For more information:
- The government has now published its impact assessment for
the Planning and Infrastructure Bill, which has now received a
green rating from the Regulatory Policy Committee. This can be
read in full here.
- The analysis includes higher, central and lower
estimates for how much money the Bill could add to the economy
over 10 years. The highest estimate was up to £7.5 billion,
the central estimate was £3.2 billion and the lower estimate
was £1.3 billion.
- This assessment does not include the amendments tabled at the
Committee Stage,
which the government predicts will further boost the economy by
£1 billion over the course of this Parliament.
-
It is expected to be an underestimate of the true impact as
there will be ‘wider, un-monetised benefits such as the
benefit to society from quicker delivery of housing and
infrastructure, and the macroeconomic contribution of
increased development supported by the Bill”.
-
The Bill will deliver a range of measures to speed up the
delivery of critical infrastructure and 1.5 million homes.
- The OBR analysis of the National Planning Policy Framework
forecast 0.2% to be added to GDP by 2029/30– worth around
£6.8bn in today's prices.
