Revamping Planning: Fueling Growth in England and Wales

As new policies come to the fore, planning reform in England is prominently positioned under the new Labour UK Government. To elucidate the implications of these reforms on Wales, I engaged with Gareth Hughes, an experienced urban planner and policy advisor. With significant experience across both England and Wales, Gareth’s insights offer a nuanced understanding of the shifting planning landscape.

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Gareth began by emphasising the unprecedented focus on planning reform by the Labour Government. “We have never before seen planning reform take such centre stage as a key policy of the new Labour UK Government,” he stated. “With limited scope for additional borrowing and a manifesto commitment not to raise taxes, the government is relying heavily on planning reform to stimulate economic growth.”

In England, there is a noticeable paradigm shift with new, more ambitious housing targets. The National Planning Policy Framework (NPPF) consultation proposes a significant change, directing local plans to explicitly meet identified housing needs rather than merely as much as possible. This includes the imposition of a revised standard methodology as a foundation. “This marked shift signals a more assertive approach to housing development, aiming to directly address rising demands,” Gareth noted. The reintroduction of the five-year housing land supply test, absent in Wales since 2018, underscores this commitment. “This test ensures that local authorities maintain a rolling supply of deliverable sites sufficient to meet five years’ worth of housing requirements,” Gareth explained. “Its reintroduction in England is a clear indication of the government’s resolve to address housing shortages.”

Turning the discussion to Wales, Gareth highlighted the different approach taken by Welsh authorities. “In Wales, local authorities determine their own housing figures based on population projections and various growth options analyses. While these figures undergo independent examination, the starting point is arguably less rigorous and potentially less ambitious than in England.” He referenced the only nationally set housing target in Wales: 20,000 new low-carbon homes for social rent during this Senedd term (2021-26). “Julie James MS, the former Minister, acknowledged that this target would be ‘touch and go.’ Given that official data shows just over a quarter of that target—5,775 homes—was achieved in the first two years, this outlook appears optimistic,” Gareth remarked.

The green belt policy was another critical area of discussion. “We might start to see a discrepancy in how UK and Welsh governments approach green belt policy in the future,” Gareth observed. The NPPF consultation in England makes it explicit that authorities must review boundaries where housing needs cannot be met. Conversely, Future Wales designates “areas for consideration” for new green belt designations in the north, southwest, and southeast. “These areas could represent some of the most sustainable regions for growth in Wales, particularly those in the southeast,” Gareth noted. “However, Future Wales specifies that any new green belt should be designated via strategic development plans, which are much-delayed.”

Gareth also pointed out the divergent focus on economic development between England and Wales. “The NPPF consultation in England places renewed emphasis on developing data centres and gigafactories. In contrast, Future Wales lacks an overarching economic development policy. This could be a missed opportunity for Wales to position itself competitively alongside other home nations.” Energy infrastructure is another area of divergence. “The Welsh Government has invested significantly in the Infrastructure (Wales) Act 2024, which became law in June. However, it requires supporting secondary legislation and guidance to become the flagship consenting regime promised,” Gareth explained. Meanwhile, the new English government has promptly approved three large solar farms, including one against an inspector’s recommendation, with the expectation that more will follow. “This proactive stance could position England as a leader in renewable energy infrastructure.”

Reflecting on the future implications, Gareth noted, “There is no doubt that the new reforms in England will have implications for Wales’ future economic development. The political alignment between UK and Welsh governments creates an opportunity for mutual learning and cooperation. It is my hope that the new Welsh Housing Cabinet Secretary embraces the potential for positive change, recognising the economic and social dividends of ambitious growth.”

As planning reform continues to evolve, it remains a crucial policy area that could shape the economic trajectory of both England and Wales. The challenge lies in balancing ambition with sustainability, ensuring that growth is both inclusive and environmentally responsible. The interplay between these reforms highlights the complex and interconnected nature of planning policies across the UK, offering valuable lessons and opportunities for both nations.

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