LGA calls for powers to set planning fees locally to tackle council resource struggles

The Local Government Association (LGA) has called on the Government to include powers for councils to set planning fees at local level as part of the proposed planning reforms in the Levelling Up and Regeneration Bill.

In a briefing note, the LGA said that councils are broadly supportive of the guiding principles of the planning reforms laid out in the Bill, including principles to embed a plan-led system; empowering local leaders and communities; with stronger regeneration powers; and a stronger framework for protecting and enhancing the environment.

"However, some detail is needed ensure these guiding principles can be applied in practice," the LGA noted. "We want to work with the government to support the effective implementation of the reforms and ensure that the reforms are a success for local government."

One suggestion made by the LGA stated that councils must have the flexibility to set planning fees at local level, "or at the very least be able to vary planning fees and charges to cover their costs relating to planning, which could include the employment of qualified planners".

This would put councils in a stronger position to address the issue of resourcing in the planning sector, including a shortage of qualified planners, the LGA said.

It added that while it welcomes the increase in planning fees alongside the Bill, the increase "does not go far enough to deliver a well-resourced planning sector".

According to a survey published by the Royal Town and Planning Institute in November of last year, 80% of local authorities did not have enough planning officers to cover the planning workload, and 90% were experiencing a backlog of planning enforcement cases.

The Government's proposed National Development Management Policies (NDMPs), which are part of the reforms, were also called into question by the LGA due to plans to have NDMPs take precedence over local plans should one contradict the other.

The LGA said: "This is critical to ensure that one of the key principles of the planning reforms - 'a genuinely plan-led system' - is enshrined in the Bill. If the Government decides to retain the current proposal, then flexibility must be built into the system to enable councils to respond to local, complex and changing circumstances."

The LGA welcomed the Government's plans to tackle slow build-out of permissions, specifically plans to introduce commencement notices, alongside proposed powers to implement additional measures to tackle slow build-out.

It also welcomed the introduction of powers to allow councils to charge full council tax for every unbuilt development from the point the original planning permission expires.

"It should also be made easier for councils to use compulsory purchase powers to acquire stalled housing sites or sites where developers do not build out to timescales contractually agreed with a local planning authority," the LGA added.

On local plans, the LGA welcomed the announcement to remove the requirement for councils to continually demonstrate a five-year housing land supply as it will "curb speculative development and it will give more weight to local plans when making decisions on planning applications".

But the LGA also urged the Government to urgently revoke Permitted Development Rights to further strengthen local plans' role.

Other policy changes that the LGA welcomes include:

• The introduction of measures that will make the Compulsory Purchase Order (CPO) process more streamlined and efficient for councils.
• The principle of councils being able to set up locally-led urban development corporations for the purpose of supporting regeneration projects and also the principle of being directly accountable to councils rather than the Secretary of State.
• The confirmation by the Secretary of State that although housing targets will remain, they will be a starting point with the flexibility to take account of local circumstances.
• The commitment from the Government to consult on how the targets can better take account of local density.

The Levelling Up and Regeneration Bill completed its second reading last week (17 January) ahead of the committee stage.

Adam Carey