Planning and Infrastructure Bill outlines some major changes to the planning system

The much-anticipated Planning and Infrastructure Bill was presented to Parliament today (Tuesday 11 March), outlining some major changes to the planning system as the Government seeks to turbocharge the delivery of key infrastructure and new homes.

The Bill will now make its way through the House of Commons and the House of Lords before passing into law. The changes outlined in the report come alongside the new National Planning Policy Framework (NPPF).

Key changes outlined in the Bill:

Energy

Cheaper energy bills for communities near infrastructure: As announced earlier in the week, those living within half a kilometre of new pylons will receive discounts on their electricity bills of up to £2,500 over 10 years. Developers will also ensure communities hosting transmission infrastructure, such as pylons, or electricity substations, can benefit, by funding projects like sports clubs, educational programmes, or leisure facilities.  This could result in £200,000 worth of funding per km of overhead electricity cable in their area, and £530,000 per substation.

Faster grid connections: Some wind and solar power projects currently wait a decade for a grid connection. A ‘first ready, first connected’ system will replace the “flawed” ‘first come, first served’ approach – which will accelerate connections for industrial sites and data centres.

Nationally Significant Infrastructure Projects (NSIP): The consultation requirements for projects such as windfarms or railway lines will be streamlined, and the Highways Act and Transport and Works Act will be changed to reduce red tape. Government decisions on major infrastructure projects will only be allowed to be legally challenged once, rather than three times.

Electric vehicles: The process to install EV charging infrastructure will be streamlined

Battery storage: A scheme to boost investment in long duration electricity storage (LDES) which is needed to capture and store energy for renewable power with fluctuating output.

John Gravett, Managing Director at Cluttons, says: “Creating a direct connection between communities who host new pylons and sub-stations and the personal and community benefits they will derive as a result, as outlined in the Infrastructure and Planning Bill, is the change that could unlock the much-needed step up in energy infrastructure. Streamlining the planning process for infrastructure is a welcome move and will help speed up grid connections, as well as the ‘first ready, first connected’ approach. The UK is at a critical juncture to increase energy supply that can power new homes, data centres and other industries.

“The next step will be to recognise the role of digital connectivity as critical infrastructure. We believe the roll out of standalone 5G and gigabit-capable broadband by 2030 – to meet the government’s own targets – and the infrastructure needed to do this, should be a priority given that fast digital connections help support economic growth and the UK’s competitiveness on the global stage.”

Land

Compulsory purchase reform: Changes to compulsory purchase orders (CPOs) which would mean that the acquisition of land for projects that are in the public interest will be faster, and where there are no objections, decisions will be taken by councils, mayors or inspectors, rather than the Secretary of State.

There will also be streamlining of the directions to remove ‘hope value’ – the value assigned to land that could achieve planning for a different use – where justified in the public interest.

Chris Jakes, head of lease advisory and compulsory purchase, at Cluttons, said: “These changes aim to increase the supply of land for public benefit projects, making it easier and fairer to acquire land especially for affordable housing. They reflect the evolving landscape of compulsory purchase and demonstrate a commitment to improving the process for all stakeholders.

“Part 5 of the bill makes a number of amendments to the CPO regime which includes amending the article 14A directions to remove hope value from certain developments by allowing authorities to approve their own CPOS, containing article 14A directions, in certain circumstances. This includes direction of removing hope value to the calculation of compensatory payments for the loss of land for certain public benefit projects.

“Suppressing hope value could lead to legal challenges and delays as landowners fight to secure fair market compensation. The principle of equivalence is the bedrock of compulsory purchase compensation. The fact that the removal of hope value is only to be used for certain public benefit projects acknowledges the public benefit point of compulsory purchase but where is the line drawn when there are developments which also have commercial elements within them?”

Planning

The planning process: Some decisions on planning will be made by officers rather than planning committees, depending on the size and type of scheme, under new national scheme of delegation.  Councils will also be able to set their own planning fees.

Gráinne Gilmore, Cluttons head of research & insights, says: “There are local schemes of delegation in place already in planning authorities, but making this a national scheme will streamline the process. Developers, housebuilders and all stakeholders will welcome the move to let local authorities set their own planning fees. The long delay to getting a planning decision is more costly, than a potential rise in fees, and allowing councils to set these fees may mean more recruitment into planning departments, which will in turn speed up decisions again. This, in turn, will encourage more smaller developers back into the market as planning delays have been too costly for them in recent years.

Strategic planning: Spatial development strategies across England, looking across several local authorities, will ensure a holistic view of development needs and infrastructure requirements. These will be led by mayors of some local authorities. Development Corporations will also be created and used to deliver large-scale housing, and for the creation of New Towns.

 “The introduction of strategic planning is largely a return to the Regional Spatial Strategy in planning that was in place between 2004 and 2010, and underlines this government’s move to planning larger schemes in a more holistic way, which should boost investment and speed up construction.”

© Cluttons LLP. 2025. This publication is the sole property of Cluttons LLP and must not be copied, reproduced, or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Cluttons LLP. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Cluttons LLP does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. We strongly recommend that you always seek advice and presentation from a suitable qualified professional on any matter.