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CUTTING RED TAPE AND SAVING MONEY FOR DEVELOPERS TO HELP DRIVE RECOVERY

News Release issued by the COI News Distribution Service on 04 March 2010

A package of planning system reforms saving developers time and money to help them complete building projects during the recovery have now been approved by parliament, Planning Minister John Healey confirmed today.

Businesses that need to extend existing planning permissions to allow more time to build new developments will now pay significantly lower fees which, along with other measures to improve the flexibility of planning permissions, will help save up to £69m a year, giving a valuable cash boost for developers so they can keep investing in new projects.

John Healey said:

"At a time when funding for new developments is difficult, I have changed the planning rules to give developers longer to build new projects that will help drive economic recovery.

"Now I am able to cut and cap the fee for extending existing planning permissions. As we work to secure a strong economic recovery, we need to do what we can to keep plans for new development on the table. The planning system has to adapt to current economic circumstances to help homeowners, industry and developers, and we have done just that."

New measures that enable businesses and homeowners to extend existing planning permissions without the expense and red tape of a new planning application were introduced in October 2009.

The fees for extending planning permissions are now being reduced so the fee for a major development that was previously as high as £250,000 will now be £500, the fee for smaller developments that was as high as £3,000 will now be £170, and for householder projects the previous fee of £150 will be reduced to £50.

John Healey also confirmed a further boost for small businesses by ensuring those affected by disruption from new public building works and compulsory purchase orders are able to claim compensation.

The new rateable value of a business property below which the owners can claim certain types of compensation against compulsory purchase orders and disruption will increase from £29,200 to £34,800 from 1 April 2010. The rateable value is the rent a business could expect to pay to occupy the property and the change ensures no businesses will lose out because of the five-yearly review of rateable values.

Notes to Editors

1. The package of new planning measures introduced in October 2009 following consultation includes fee savings and administrative savings. The new fee levels were debated in parliament and have now been approved. The new measures were introduced prior to the change in fee levels to bring forward the administrative savings for businesses at the earliest opportunity.

2. The amendment agreed by parliament sets new fee levels for both applications to extend existing planning permissions, and non material amendments to an existing planning permission. The new fee levels are as follows:

For an application to extend an existing planning application, the respective fees are £500 for major developments, £50 for householder developments, and £170 for other sizes of developments.For an application to make a non material amendment to an existing planning permission, the respective fees are £25 for householder developments, and £170 for other sizes of developments.

3. The increase in annual rateable value limit below which the owners of small businesses can serve blight notices and claim other types of compulsory purchase compensation reflects the 2010 non-domestic rate revaluation, which comes into effect on 1 April, and ensures small businesses are not disadvantaged.

4. Recent measures have streamlined the planning system, cutting red tape to help businesses deliver projects quickly and drive down costs during recovery. These include:

i.) cutting the amount of information required for planning applications which will save businesses up to £57m a year;

ii.) delivering a more proportionate, customer focused and efficient appeals service. Householder appeals are now decided in 8 weeks via the Householder Appeals Service and there have also been savings by ensuring all cases follow the appropriate procedure (written method, hearing or inquiry);

iii.) proposals to ensure councils and developers work together before applications are submitted and that the number of conditions applied to planning permissions is reduced. These are due to come into force in 2010, and will deliver up to £11m of savings for businesses and up to £25m for councils every year; and

iv.) proposals that will allow homeowners, developers and businesses to install their own on-site wind turbines, and air source heat pumps without the expense and red tape of planning permission.

Contacts:

Communities and Local Government Out of hours
Phone: 0303 444 1201
press.office@communities.gsi.gov.uk