The Local Growth White Paper appears provide a pro-growth economic planning agenda which sets out the coalition Government’s role in “empowering locally driven growth, encouraging business investment and promoting economic development.” The paper has some powerful pro-development messages and clarifies ‘localism’ proposals for planning, housing and economic growth. The paper says a reformed planning system will “give communities and neighbourhoods more power over decisions, increase investor certainty and help international businesses locate, move within or stay in the UK.” The key issue which remains to be seen is how the localism agenda and passing more planning decisions to a local level will impact on the ability to deliver growth.

The Government has been critical over the low levels of house building in recent years and have made it very clear that they see the top down planning system as a significant barrier to growth. Passing powers to local communities to make decisions on the levels of growth in their area is seen as a means of stimulating growth where it is wanted. The process will be supported by the new homes bonus scheme which will pay a set level of funding in return for the delivery of housing. The intention is that this money should be directed towards the local communities in which the development is located and initial indications show these figures to be significant. Given the current financial constraints on Council budgets, it will be interesting to see whether a more proactive delivery focused planning agenda emerges within Local Authorities and how this will balance against the likely resistance in many communities for new housing. It also remains to be seen how any funds which will be gained by Councils for delivering schemes will be targeted 100% towards schemes within the communities where the development is located and not simply seen as means of helping to balance the books for Councils. There is clearly potential for conflict in this approach and there needs to be very clear checks and balances built into the system to ensure that the funding achieved through the new homes bonus scheme reaches local communities.

There is also an intention to create a new tier of development planning below the local development plan called the neighbourhood plan. Full details are awaited, however, it does seem likely that some plan-making powers will be given to local communities. Details are limited at present although the announcement does accord with the Government’s desire to shift powers to a more local level. It does remain to be seen how local communities will have the knowledge and even the desire to produce such plans. Creating a document which will form part of the statutory development plan requires expert guidance or it could be the subject to challenge. Clearly very few local communities have such expertise at present and will Councils be required to assist in the formation of community plans throughout their area which is likely to require a significant level of resources at a time when departmental budgets are being squeezed.  

A DCLG four-year business plan also states that a new national planning framework will be issued by April 2010 and would be “radically simplified and consolidated with a strong presumption in favour of sustainable development”. It remains to be seen whether this will replace regional plans or in the long term Planning Policy Statements.