Chancellor Rachel Reeves has announced an ambitious set of planning reforms aimed at revitalising Britain’s construction sector. In her inaugural major speech at the Treasury, Reeves emphasised her commitment to “getting Britain building again” and declared, “After 14 years, Britain is open for business. In an uncertain world, Britain is a place to do business.”
Speaking from 1 Horse Guards Road on Whitehall, Reeves highlighted her collaboration with Deputy Prime Minister Angela Rayner to deliver Labour’s ambitious target of constructing 1.5 million homes within five years. “I am taking immediate action to deliver this Labour government’s mission to kickstart economic growth,” Reeves stated.
Central to Labour’s strategy is the reform of the National Planning Policy Framework (NPPF), which Reeves pledged to overhaul by the end of the month. These reforms include reinstating mandatory local housing targets, lifting the ban on onshore wind projects in England, and prioritising energy projects within the planning system. Reeves underscored the urgency of these changes, framing them as essential to meeting the country’s housing and energy needs.
Additionally, Reeves announced the creation of a new task force dedicated to accelerating stalled housing projects. This initiative will initially focus on 14,000 homes and will involve the recruitment of 300 new planning officers for local authorities, as promised in Labour’s manifesto. This move aims to eliminate bureaucratic bottlenecks and streamline the approval process for new housing developments.
Reeves also touched on the role of Deputy Prime Minister Rayner in the planning process. Rayner, she noted, has already taken steps to fast-track significant projects, recovering two planning appeals for data centres in Buckinghamshire and Hertfordshire. This proactive approach is indicative of Labour’s broader commitment to leveraging development for national benefit.
Another significant aspect of Labour’s plan is a review of greenbelt boundaries, with an eye towards developing so-called ‘grey belt’ or lower-quality greenbelt land. This controversial move is designed to increase the availability of land for housing while balancing environmental and community concerns. “I know there will be opposition, and I am not naive to that,” Reeves acknowledged. “But we will not respond to a status quo that relegates national interest below other priorities. This Labour government has been elected to get things done.”
The chancellor’s announcement has been met with cautious optimism from the construction industry. Major housebuilding firms like Bellway, Berkeley, and Barratt have lauded Reeves’ pledge, viewing it as a positive step towards addressing the UK’s housing crisis. The prospect of increased housing supply and regulatory reform has already had a favourable impact on market sentiment, with shares in companies such as Persimmon and Vistry soaring.
Reeves’ bold vision for the future of Britain’s construction and housing sectors marks a significant shift in government policy. By addressing longstanding issues in the planning system and making a decisive push for development, Labour aims to stimulate economic growth and ensure that Britain remains a competitive and attractive place for business.
In closing, Reeves reiterated her commitment to action and progress. “We are going to get Britain building again, we are going to get Britain’s economy growing again,” she affirmed. This ambitious agenda, while not without its challenges, signals a determined effort to reshape the country’s economic landscape and provide much-needed housing for its citizens.
(Sources: CITYA.M)