Fast track infrastructure? or death of Localism?

“Will local planning decisions become a thing of the past because of new Infrastructure Act?”. Senior partner Allen Creedy expresses his concern that in their effort to speed up infrastructure investment the coalition government may well have sacrificed their commitment to localism!

The Infrastructure (Financial Assistance) Bill is designed to enable the government to guarantee up to £40bn of investment in infrastructure, and up to £10bn of new homes. its now received Royal Assent and  passed into law and will be known as the Infrastructure Act. It passed through parliament in just 55 days and will enable the government to underwrite major infrastructure projects under the “UK Guarantees scheme”. Since the launch of the scheme in July, more than 60 projects have come forward for discussions with the Treasury.

The Infrastructure Act authorises the government to incur expenditure in relation to the provision of guarantees and other suitable forms of financial assistance.

The government says the bill is needed to stimulate development. Most politicians at the local level say it betrays ministers’ promises to leave planning decisions to be made at local level. The concern is that greenfield schemes may well be steam-rollered through for business and housing against local  wishes. The housing and commercial lobby has been successful in persuading Ministers that the planning system causes unnecessary delays to projects that will help the economy and create jobs.

The act will create a fast-track for large-scale business and commercial projects which will allow decisions to be taken within 12 months. Decisions on business and retail parks in future may be taken by the Secretary of State in the first instance. It will allow developers to submit plans directly to the National Planning Inspectorate where councils have a track record of poor performance. The bill will relax rules on developers to deliver social housing, and make it easier to install broadband infrastructure. It will also make it harder for residents to use “village green” rules to prevent development in their local area.

Allen Creedy shares some of the concerns of the Campaign To Protect Rural England (CPRE) when they say that the provisions make a mockery of the government’s stated commitment to localism. CPRE is concerned that the plans will spoil some of the UK’s best-loved landscapes. It warns of a rash of “broadband clutter” in national parks and areas of outstanding natural beauty.

The prime minister said on publication of the Growth Bill: “(This) is all about helping our country compete in the global race and building an aspiration nation where we back those who want to get on in life.”We are slashing unnecessary bureaucracy, giving business the confidence to invest, unlocking big infrastructure projects and supporting hardworking people to realise their dreams.”

The bill has been welcomed by developers who say the current rules inhibit projects in unintended ways. For instance, the law allows councils to oblige developers to pay towards local infrastructure if they build, say, a new office block. It is a de facto development tax. If developers want to vary a planning consent they are liable to pay a second fee that could run to millions of pounds for a very big scheme. The bill will stop this sort of double-charging. Developers also say the rule obliging them to create social housing as part of private developments makes some schemes economically un-viable. The act says that less paperwork will be needed for a planning application.

in the short term it means that developers need to understand the new act and its implications for their proposals – if you are looking for more information and assistance then please contact ethical partnership

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