Britain’s Planning System: Labour’s Challenge and Missed Opportunity

The Economist has published an article on the proposed amendments to the planning system.  The original can be seen here (subscription will be necessary) and in summary says

The Root of the Problem

  • The 1947 Town and Country Planning Act centralised control over land use, shifting power from landowners to local councils.
  • Initially aimed at preventing urban sprawl and planning a “New Jerusalem,” the law instead empowered NIMBYism, leading to ever-tightening restrictions on new housing.
  • Britain’s housing supply has lagged behind demand, worsening affordability. The UK has 7 million fewer homes than France, despite a similar population.

Labour’s Planning Reform Plans

  • PM Keir Starmer’s government sees housing reform as key to economic growth.
  • The upcoming Planning and Infrastructure Bill aims to streamline approval processes and remove bureaucratic obstacles.
  • Key proposals include:
    • Reducing the power of quangos and environmental constraints.
    • Limiting judicial reviews and grounds for rejecting housing projects.
    • Expanding brownfield development, but not revising green belt policy significantly.

Why These Reforms Fall Short

  • Doesn’t change the 1947 system: The government is tweaking rules but not moving towards a zoning-based approach like other countries.
  • Housing in the wrong places: New builds still favour less productive regions instead of high-demand cities.
  • Lack of incentives for local councils: Councils gain little from approving developments, sustaining resistance to growth.

Missed Opportunities for Bold Reform

  • Labour had previously acknowledged the need for major change, yet their current proposals focus on incremental fixes.
  • Without a systematic overhaul—such as zoning reform or fiscal incentives for councils—planning constraints will persist.

Conclusion

Labour has a rare opportunity to remove Britain’s 80-year housing chokehold but is falling short of bold action. Unless deeper reforms are pursued, housing shortages and affordability issues will continue.

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