Brown gets tough on failing planners

The Chancellor bared his teeth at housebuilders and planners on Wednesday, announcing a crackdown to ensure increased provision of housing by local authorities and contractors.

Gordon Brown's Budget statement firmed up the commitment in the Communities Plan to get tougher with planning departments that were failing to deliver more affordable housing.

He also reaffirmed the government pledge to use powers in the Planning Bill to make the process more robust. These will take the form of a system of binding local development plans to ensure the scope for repeated appeals by various parties is limited.

Robin Tetlow, managing director of planning consultancy Tetlow King, said: "Intervention is justified at the moment. But if the government had intervened five years ago, we wouldn't be in the position we are in now," he said.

Richard Bate, partner at planning consultant Green Balance, said: "The argument for binding local development plans implies that they can be precise enough. There needs to be flexibility for which developments should or should not be allowed. The question is, how do you make the plans binding?

"The chancellor's view that the planning system is the root of all evil is both fallacious and unfortunate. Brown's intentions of speeding up supply are right, but his lack of grasp of the planning system is a problem."

In an additional effort to ensure that more houses are built and reverse the decline in housebuilding, Brown announced a review of "issues affecting housing supply in the UK".

The review – to be headed by economist Kate Barker – is to examine the "capacity and finance" of housebuilders and the impact of this on their ability to interact with planners.

Pierre Williams, spokesman for the House Builders Federation, said the budget gave the clearest sign yet that the government blames planning authorities for the housing shortage.

He added that the review of housing supply was recognition that "local planning authorities will need to be forced to hit housing targets in future".

However, Sarah Webb, director of policy at the Chartered Institute of Housing, cautioned: "Building lots is fine, but we need to be sure that when it comes to 2010, we're not looking for more money to fund the removal of these homes."

Speaking at a Guardian/ Observer housing conference on Tuesday, John Prescott announced three new urban development corporations – West Cumbria & Furness, Sandwell and Derby – taking the total to 14.

He also said local authorities should allow industrial and commercial land to be turned over for housing unless there was a "convincing case otherwise".

Writing in Housing Today, the deputy prime minister also said he wanted the regional development agencies to be more proactive in linking regeneration with housing.

What the budget means for social housing

Stamp duty on unstamped tenancy agreements for homeless tenants to be retrospectively abolished for RSLs

substantial reforms of housing benefit to facilitate labour mobility, and deliver a more reliable service

a new review led by economist Kate Barker to look into the issues affecting the supply of housing , including competition, the capacity and finance of the housebuilding industry

consultation on moving government departments outside London

consultation on household energy efficiency

10-year view of housing supply for local authorities.