Keir Starmer orders a rewrite of the planning bill in a bid to get a budget boost

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Prime Minister Sir Keir Starmer has ordered a last-minute rewrite of the UK government’s master planning bill as he attempts to boost growth and fix public finances ahead of the November budget.

Ministers are working over the weekend to approve a series of amendments to the draft law, with the aim of speeding up the delivery of major and large infrastructure projects. Housing Charts.

Separately, Housing Secretary Steve Reid and London Mayor Sadiq Khan are finalizing a raft of measures to revive the capital’s moribund housebuilding sector.

Government officials say the aim is to have the Planning and Infrastructure Bill on the statute book by early November, in time for the reforms to be assessed by an independent watchdog, the Office for Budget Responsibility, before Parliament. budget.

Some claim the reforms could boost growth and generate an extra £3bn in tax revenue, a valuable contribution as Chancellor Rachel Reeves looks to close a fiscal gap of £30bn or more.

Nick Williams, Starmer’s former economic adviser, noted that the Office for Budget Responsibility had calculated that previous planning changes announced by the government would generate £3.4bn in extra tax by 2029-30.

“The landmark Planning and Infrastructure Bill and policy changes to boost supply in London could do the same again,” he said. Widely delayed plans to scrap the two-child benefit cap will ultimately cost £3.6bn.

Ministers will negotiate over the weekend how to rewrite the planning bill, with amendments due to be introduced on Monday.

But government officials said the changes would not affect the sensitive issue of wildlife habitats, indicating that ministers may return to the issue later in Parliament with separate legislation.

One said: “We need to get this through the Lords quickly and anything to do with habitat will be put on hold.” “We are looking for pro-growth instruments, especially with regard to large infrastructure projects and the release of large housing projects that are blocked by unhelpful councils.”

Meanwhile, Khan and Reid are working on a proposal to make new housing developments more viable by reducing the current share of new homes in London that must be affordable or social housing from 35 per cent. A rate of 15 to 20 percent has been proposed, according to officials familiar with the talks.

The Treasury said: “The Chancellor is determined to use every means to stimulate growth across the country and get our economy going again.

“This means moving forward, more quickly, to reform our outdated planning system and cut the red tape that holds this country back – so we can build the homes and infrastructure we need to drive jobs and growth.”

Khan’s office said London’s reforms are expected to be announced in the “coming weeks.” His spokesman said: “The changes will aim to open stalled sites and give the mayor stronger powers to approve homes, delivering thousands of homes more quickly.”

The government wants extradition 88,000 homes A year in London, as part of its pledge to deliver 1.5 million homes in this Parliament. But only 3,950 new homes were completed in the first half of the year, according to housing research group Muliore.

The Office for Budget Responsibility estimated last March that the first wave of government planning reforms could add 0.2 per cent to the level of potential output thanks to boosting the productivity of residential construction and increasing the flow of housing services from the higher housing stock.