Planning fees to rise by 15%

Decentralisation Minister, Greg Clark, has announced an increase in planning application fees of around 15%, saying that there has not been a rise since 2008 and a one-off adjustment is needed to up-rate fees in line with inflation.

The increase is likely to come into force in the autumn. This does not follow the government’s previous proposals in November 2010 to allow local authorities to set their own planning fees. The Chamber responded to consultation at that time, expressing concern that this would lead to inconsistency in fees charged for similar developments across the country and a fear that the development industry would be paying higher fees for those authorities that provide a less efficient service.

Mike Gibson, of the Chamber's Property and Construction Committee, said: "Our concern is that a 15% increase in fees will be a further burden on businesses at a time when economic conditions are challenging and may deter some businesses from going ahead with development proposals.

"The increase in the fees would be easier for businesses to bear if it were matched by improvements in the service received from local authorities but we are concerned that local authorities may lack the resources necessary to achieve this."

As part of its ‘Plan for Growth’ and in response to pressure from businesses, the Government is also proposing to introduce a number of measures to simplify and speed up the planning process.

The measures include:

• Streamlining planning applications by reducing the amount of information required with outline applications, encouraging local authorities to keep under frequent review the information they require with applications, and amalgamating ownership certificates and agricultural land declarations. 
• Cutting the amount of planning guidance to reflect that already made to planning policy in the National Planning Policy Framework. 
• A guarantee that no application will take longer than 12 months to determine.
  • Speeding up the process for determining planning appeals. 
• Improving the performance of statutory consultees, such as the Highways Agency, Natural England and the Health & Safety Executive. 
• Making sure that local authorities, communities and planning inspectors can rely on the information contained in applications. 
• Technical changes to the operation of the Community Infrastructure Levy so that developers are not charged the levy twice on the same development if they amend a planning permission.

The proposals to streamline information requirements for planning applications are currently out to consultation until 11 September. Details of the other proposals and their consultation process are to be announced soon.

Mike Gibson said: "All these measures are welcomed. They will help to lift the burden of planning on businesses, whilst ensuring that appropriate safeguards remain. The Chamber will be responding to the consultation to make sure that the views of the business community are heard."

Planning rules to be relaxed to help growth

Following consultation last year, the Government is to allow the space above shops and other town centre uses to be converted to two flats without the need for planning permission. This will help to deliver more much-needed housing and will encourage owners to make good use of vacant space within their buildings.

The Government intends to introduce this by way of an amendment to the General Permitted Development Order in October this year.

Also, following discussions last year between the Department of Communities and Local Government, the Department of Business, Innovation and Skills and the business sector, at which the Greater Manchester Chamber of Commerce was represented, the Government is now consulting on proposals that will allow a number of changes of use to take place without the need for planning permission. The proposals would allow:

• Greater freedom to change between Use Classes B1 (business/office/light industry) and B8 (storage and distribution) and from Use Class B2 (general industry) to B1 and B8. 
• A use that is low impact for a temporary period of two years. 
• Hotels, boarding and guest houses to convert to residential. 
• Existing agricultural buildings to be used for purposes that support rural growth.

In addition to this, the Government is to consider if any updates or amendments are needed to the existing descriptions within the Use Classes Order. These proposed changes are contained in the Government’s document ‘New opportunities for sustainable development and growth through the reuse of existing buildings’, for which the consultation period extends until 11 September. All the proposals are to be welcomed since they will help to reduce the planning burden on businesses and will assist in bringing empty and redundant buildings back into productive use, support town centres and generally benefit the local economy.

A proposal that’s not going ahead

The Government is not to proceed with its proposal to allow buildings to be changed from commercial use to residential without the need for planning permission. This follows consultation last year on proposed changes to the Town and Country Planning (General Permitted Development Order) that would have allowed the change from offices, industry and storage uses to houses or flats as ‘permitted
development’. 

Mr Gibson said: "Whilst some would see this as a missed opportunity to boost the number of houses, many businesses renting accommodation saw this as a threat to their premises and there was criticism from housebuilders who thought the emphasis should be on new buildings, not change of use.

"Instead, the Government is to rely on its new National Planning Policy Framework, which says that local planning authorities should normally approve planning applications for change from commercial to residential use where there is an identified need for additional housing in that area, provided that there are not strong economic reasons why such development would be inappropriate.

"This seems a sensible approach since it will reflect the needs of a particular area and give businesses the opportunity to put their case that there are good economic reasons for the premises to remain in commercial use."