The planning system is broken. Here’s how we should fix it

By investing in planning skills, we're making a down payment on Britain's future prosperity, writes Martha Lane Fox, president of the British Chambers of Commerce

The government’s Planning and Infrastructure Bill made its debut in parliament this week, just a few news cycles ahead of the forthcoming Spring Statement. That’s no coincidence. There is a fixed consensus now, across politics, business and the voting public, that our national prospects rest heavily on our ability to get Britain building.

The bill contains a number of eye-catching commitments to overcome barriers to growth by cutting down on unnecessary consultation, rewarding local communities where development happens and rebalancing decision making between councillors and officials. Yet the government’s laudable aims could be undermined by a more fundamental blocker: the chronic lack of capacity in the planning system.

While Westminster is now showing a healthy ambition for infrastructure and planning reform, the reality is that without addressing the key issue of the planning skills crisis in local authorities, these grand designs risk remaining just that – designs on paper.

The numbers paint a stark picture. More than half of local planning authorities report serious difficulties recruiting senior planners. Public spending on planning has reduced by 16 per cent since 2009 and a quarter of planners have left the public service in the past decade.

Every delayed project represents lost investment, lost jobs, and lost opportunities. When businesses cannot secure consistent and timely approvals, it creates uncertainty, increases costs, and ultimately holds back the investment that drives local economies. For communities, it means cancelled housing developments, underdeveloped transport links, and fewer opportunities for people.

Keir Starmer and Angela Rayner during a visit to a construction site in Cambridge (PA)

By contrast, investing in an efficient public planning system could deliver a healthy “planning premium” across UK nations and regions. Figures from the Royal Town Planning Institute indicate this could provide an additional £50bn in value over the coming decade, as well as positively impacting the social, economic and environmental needs of UK towns, communities and countryside.

The planning system is the invisible infrastructure that enables all other infrastructure. Business is united with the government in wanting to see a renaissance in British infrastructure, but without addressing the planning skills gap, we all risk disappointment. That’s why collaboration between the private and public sectors must be part of the solution.

The Planning Skills Fund, a business-led initiative managed by the British Chambers of Commerce, backed by Aviva and delivered by the Royal Town Planning Institute, offers the prospect of a new partnership between government and industry to get Britain building better. Together, we’re funding 100 students over five years through planning qualifications to create a pipeline of new talent as well as helping local authorities to upskill their current planners. For every £15,000 donated, we can train a new planner who will help reduce delays and unlock development.

Decades of underinvestment have left planning departments understaffed and overwhelmed by the volume and complexity of applications they face. It’s made it harder for councils to recruit and retain planners – and it’s held back infrastructure, investment and growth.

Now, businesses are coming forward with a solution to work in partnership with the government to solve this challenge. We are delivering new planning talent to the doors of local authorities across the UK, so it’s crucial that councils have the money to employ these new planners.

That’s why we’re asking the government to recommit to matching private investment in planning capacity with funding to employ these skilled planners in local authorities. The spring statement would be an excellent time to confirm money set aside by the previous government remains in place so that businesses can have the confidence to bring their own resources to the table.

Businesses cannot afford to wait and are already stepping up to play their part in solving the problem. As David Epstein, MD at Aviva Capital Partners has said: “The cost of planning delays to businesses far exceeds the investment needed to fix the system. Aviva has already recognised this, committing £500,000 to improve capacity and demonstrate its understanding that planning reform is vital to Britain’s economic future and that industry has a role to play in achieving this.” The British Chambers of Commerce is building a pipeline of more business donors to see the project through.

This is not just about the speed of planning decisions, or a consequences-be-damned dash for growth at all costs. Good planners don’t just approve developments faster – they make better decisions that balance growth with sustainability, creating places where businesses can thrive and communities can flourish.

The planning system should be an enabler of growth, not a barrier to it. With skilled professionals making timely, consistent decisions, we can build the homes, business facilities, transport networks and energy infrastructure that Britain desperately needs to get ready for the future.

As we look to the future, the countries that will succeed are those that can move swiftly from politics to plans to productivity. Britain has world-class architects, engineers and construction firms ready to build, but they’re being held back by a planning system lacking the resources to keep pace.

The Planning Skills Fund represents a new model of public-private collaboration to solve this challenge. By investing in planning skills today, we're making a down payment on Britain's future prosperity – laying the groundwork for the infrastructure revolution our economy needs.

Martha Lane Fox is president of the British Chambers of Commerce