Nationally Significant Infrastructure Projects Regime: Further Reforms

Wednesday 23rd April 2025 Written Statements

[The Minister for Housing and Planning (Matthew Pennycook)]

Sustained economic growth is the only route to delivering the improved prosperity our country needs and the higher living standards working people deserve. That is why it is this Government’s No. 1 mission and why our plan for change committed us to fast-tracking 150 planning decisions on major infrastructure projects by the end of this Parliament.

While nationally significant infrastructure projects applications are already being processed on average 50 days quicker than in the last Parliament, achieving that milestone is going to require the planning regime for NSIP to be firing on all cylinders. Yet we know that the current system is too slow and that its performance has deteriorated sharply in recent years. Inefficiencies in the system are delaying the delivery of much-needed infrastructure and driving up costs for industry, billpayers and taxpayers.

The Government are determined to improve the system and to that end the Planning and Infrastructure Bill includes a range of measures—from mandatory and faster updates to national policy statements to reducing the scope for meritless judicial reviews—designed to deliver a faster and more certain consenting process for critical infrastructure.

As the Deputy Prime Minister and I made clear on Second Reading, the measures included at introduction are not the limit of our ambitions when it comes to streamlining the NSIP regime. In responding to the debate, I committed to giving further consideration to addressing the significant elongation of pre-application periods resulting from the way in which statutory procedures are now being applied and made clear that the Government would not hesitate to act boldly if there is a compelling case for reform in this area. Having considered the matter further as promised, we have decided to act.

A key objective of any planning consent regime must be to encourage the submission of high-quality applications that deliver benefits at both the national and local level. High-quality applications should be underpinned by early, meaningful and constructive engagement with those affected—including with local authorities, statutory consultees, landowners, and local communities. When such engagement does take place, the benefits are felt in terms of better schemes, greater local benefits and improved mitigation.

However, the successful functioning of any planning consent regime also requires that it ensure proportionate and timely processes for decision making. This is particularly important for the NSIP regime, which is the primary route for consenting critical infrastructure projects in the national interest. Yet the evidence clearly indicates that the system’s performance has deteriorated sharply in recent years.

In 2021, it took on average 4.2 years for a project to secure development consent, compared with 2.6 years in 2012. The National Infrastructure Commission has highlighted that uncertainty around the time and volume of consultation required resulted in the doubling of the preapplication period for Hinkley Point C to Sizewell C from three to seven years. An Anglian Water application for a new Fens reservoir—to supply 250,000 homes with water—has spent over 1,000 days in pre-application stage. It is essential that we take all necessary steps to drive timescales of this kind back down.

Unique to planning consent regimes, the NSIP system established by the Planning Act 2008 includes statutory requirements for applicants to undertake consultation before submitting an application. These statutory pre-application procedures were created for a regime that originally saw decisions taken by commissioners rather than Ministers. Subsequent to that democratic deficit being addressed through the Localism Act 2011, they were retained on the basis that they helped improve applications prior to submission.

However, there is considerable evidence to attest to the fact that these statutory requirements are driving perverse outcomes. Rather than providing a means by which engagement drives better outcomes, statutory pre-application procedures have become a tick-box exercise that encourages risk aversion and gold-plating. The result is consultation fatigue and confusion for communities, longer, more technical and less accessible documentation, and an arrangement that actively disincentivises improvements to applications—even if these are in a local communities’ interest—because applicants worry this will require a further repeat consultation.

The Government have concluded that these statutory requirements, absent from other planning regimes, including those used to determine applications for new housing, now serve to slow down projects and deter improvements to them—wholly contrary to their nominal purpose of producing better outcomes.

I am, therefore, today announcing that the Government will amend the Planning and Infrastructure Bill to remove the statutory requirement to consult as part of the pre-application stage for NSIP applications, bringing requirements in line with all other planning regimes. This will include removing the requirement for developers to prepare and consult on preliminary environmental information, which currently often leads to applicants duplicating content already required through existing environmental regulation.

This change could reduce the typical time spent in pre-application by up to 12 months, speeding up the delivery of major economic infrastructure—including our electricity networks and clean energy sources, roads, public transport links and water supplies—that is essential to delivering basic services, growing the economy, supporting the UK’s mission to achieve clean power by 2030, and enabling 1.5 million safe and decent homes to be built over this Parliament. Over this Parliament, the change could result in a cost saving of over £1 billion across the pipeline of projects. By speeding up delivery, increasing capacity and reducing constraint costs, it will also contribute to lower household bills.

Following these changes, affected local communities and local authorities will, of course, still be able to object to applications, provide evidence of adverse impacts, and have their say as part of the post-submission NSIP process. The Government are clear that removing these statutory requirements does not signify that pre-submission consultation and high-quality engagement is no longer important—such engagement and consultation will remain vital to delivering successful major infrastructure projects. However, the current system is not working for communities or developers.

We still want the NSIP regime to function on the basis of a front-loaded approach in which development proposals are thoroughly scoped and refined prior to being submitted to the Planning Inspectorate. And we still expect high-quality early, meaningful and constructive engagement and consultation to take place with those affected as part of that process, thereby enabling positive changes to be made to proposals without causing undue delays. Given that such engagement and consultation routinely takes place and leads to improved proposals in other planning regimes without such statutory requirements, and because the development consent order examination procedure rewards high-quality applications, we are confident that developers will continue to be incentivised to undertake it.

To support this change, the Government intend to publish statutory guidance setting out strong expectations that developers undertake consultation and engagement prior to submitting an application. We will work with stakeholders to design this guidance, launching a public consultation in the summer, so that it encourages best practice without recreating the flaws of the current system.

Principles that we intend to reflect in this guidance will include the benefits of consultation to developing high-quality schemes and the importance of developers taking a proportionate approach to avoid repeated consultations. As the NSIP process will continue to be one built on the principle of front-loading engagement, pre-application services provided by the Planning Inspectorate, statutory consultees and local authorities will continue and be encouraged by guidance, but these services will be reshaped to reflect a renewed focus on the quality of applications and their readiness for examination rather than meeting a statutory test.

Alongside these changes, we will retain the invitation to local authorities to submit a local impact report to the Planning Inspectorate in advance of an examination. We will also retain the requirement for applicants to notify the Planning Inspectorate when they intend to submit an application and extend this requirement to include host local authorities. Publicity requirements, essential to support good quality engagement, will remain in place.

The Planning Inspectorate, on behalf of the Secretary of State, will continue to assess whether applications are suitable to proceed to examination. We expect guidance to emphasise that without adequate engagement and consultation, applications are unlikely to be able to proceed to examination. Both guidance and advice from the Planning Inspectorate will be aimed at helping applications demonstrate that they are of a satisfactory standard.

[HCWS594]