Planning policy could save business £20m a year

Business could save £20m a year on planning under a policy unveiled by the government today.

The policy shift, based on recommendations within the Killian Pretty review means that 25,000 non-domestic planning proposals a year will not require a full planning application.

Businesses, offices, shops, schools and other institutions will benefit from not having to pay planning application fees and administrative costs for minor alterations and extensions which can cost up to £2,000 and take several weeks to process.

The new rules will:

• expand permitted development, meaning minor extensions and alterations can proceed without an application
• develop an intermediate approach between permitted development and full planning for shop fronts and cashpoints whereby permission is deemed granted if the local planning authority Does not object with 28 days
• revise the approach for planning applications to ensure local authorities only ask for information from developers that is relevant and necessary, including simplifying requirements for design and access statements.

The government is also proposing to reduce the amount of information that applicants submit with their planning applications which could save a further £50-70m a year.

The Killian Pretty review was led by Joanna Killian, chief executive of Essex council and Brentwood council and commissioned last year.

In a separate move, the government set out draft regulations for implementing the Community Infrastructure Levy (CIL), introduced in the 2008 Planning Act.

The CIL will be discretionary and locally determined through councils to raise money for new infrastructure to support the development of their area including schools, hospitals, roads and transport schemes, libraries, parks and leisure centres.

It aims to replace the system of collecting pooled contributions from developers based on planning obligations through section 106 agreements. The discretionary power will be given to councils in 2010.