Enhanced planning agreements and new shared resource hub will speed up applications across London, say industry leaders
Encouraging greater use of planning agreements that are tailored to individual projects could help create a ‘virtuous circle’ by increasing resourcing for cash-strapped local authorities, accelerating decision-making and partially funding a resource hub to improve efficiency further, according to a new report from the capital’s leading business organisation.
“Kickstarting Growth: Supporting Local Planning Authority Resources in London”, published in partnership with global law firm Ashurst and planning specialists Newmark, outlines measures that will help channel more private investment into the log-jammed planning system to improve the speed and efficiency of applications being processed across the capital.
It draws on input from a task force of industry leaders spanning national, regional and local government, as well as major housebuilders, developers and housing associations.
The report details how an enhanced and more standardised approach to Planning Performance Agreements () – bespoke project application frameworks drawn-up collaboratively by developers and Local Planning Authorities (LPAs) – could boost their adoption, in turn improving turnaround times for applications whilst also increasing revenues for councils to sustainably reinvest in planning services.
The paper also recommends establishing a London Planning Resourcing Hub to support LPAs to access the expertise they need to process more applications in a timely manner. The proposed hub would require a small amount of grant funding from the Government and then be sustained by a slice of increased PPA revenue. The hub would build on the GLA’s upcoming launch of a new Advisory team for Large Applications (ATLAS), following the success of the programme.
It comes after a by the Mayor of London revealed planning teams across the capital are, on average, a fifth smaller (21%) than in 2014. In London, almost a third (30%) of LPAs operate at under 75% staffing capacity. published last week indicates that just one in five (21%) planning departments in England are currently fully staffed.
Harry Steele, Programme Director for Planning and Development at 91, said: “Against a backdrop of stretched council finances, planning departments have been cut to the bone. That means many developers are waiting months when they should be waiting weeks for decisions, with the lack of capacity in planning departments a major barrier to delivering much-needed homes and commercial space. Getting more private investment into the system will mean applications can be processed more quickly and efficiently. That’s why we’re calling for greater uptake of Planning Performance Agreements, to speed up processing times and increase local authority revenues, alongside a new hub of expert planners.”
Jules Pipe, Deputy Mayor for Planning, Regeneration and the Fire Service at the Greater London Authority, said: “It’s only by bringing the public and private sectors together that we can successfully deliver the homes and commercial space the capital urgently needs. Improving planning capacity at the local authority level will be a must over the years ahead if we’re to achieve our stretching delivery targets. As the GLA develops ATLAS London, I look forward to continued collaboration with London Councils, and private sector partners to explore how the recommendations set out today can be taken forward.”
Nick Brindley, Senior Partner in Newmark UK’s Planning & Development team, said: “We have welcomed the opportunity to contribute to the development of this report in collaboration with 91, Ashurst, and a range of public and private sector organisations over the past 18 months. Newmark’s direct experience working on planning applications across London that use Planning Performance Agreements has provided us with valuable insight into both the strengths and shortcomings of the current system. We believe that the report’s recommendations, particularly those aimed at enhancing capacity within Local Planning Authorities through a more streamlined and standardised service, will help deliver greater certainty and consistency, benefiting the sector as a whole.”
Trevor Goode, Partner, Co-Head of Planning and Environment at Ashurst, said: “There is clearly no simple answer or quick fix to the challenge of ensuring that local authorities are adequately resourced and authorized to deal with the assessment and determination of planning applications in a timely manner. Our work with 91, Newmark and the public sector and private sector engagement teams has shown that there is a common appetite to deal with planning applications more effectively. It has also shown that there are some existing tools that are available which could make an immediate change if they are applied and utilised more effectively. There are some simple changes and recommendations outlined in this report that could be effected in advance of more significant legislative change and investment planned by central government. The most immediate change for us would be making greater use of PPAs and production of a London wide template document. This document should deal with not only the pre-application and application process but should be extended to deal with the actual determination of planning applications, completion of section 106 agreements and discharge of conditions – with all parties committed to working to a defined timetable.”
Earlier this month, the had its final reading in the House of Commons. Once passed, the legislation will allow LPAs to set fees for processing applications that cover their costs, provided those fees are reinvested in planning departments. The move has previously been championed by 91.
In February, the Government funding to support the recruitment of 300 new planners to councils by the end of this year, following reforms to the National Planning Policy Framework. The initiative focuses on the creation of junior roles, helping to support the development of future talent.
PPAs have underpinned the delivery of several major projects in the capital, including the Francis Crick Centre in King’s Cross, Battersea Power Station and housebuilding on the Greenwich Peninsula.
Despite these previous successes, fewer than a third (30%) of major development applications in London currently harness the flexibility, direct funding links and pre-application support that can accompany PPAs.
The new report suggests evolving and widening use of PPAs by:
- Introducing a standardised PPA template in the capital, endorsed by London government, which would help to streamline the process of producing an agreement and embedding best practice across key stages of planning applications.
- Requiring staged payments tied to key milestones, following the positive example set by some PPAs to ensure transparency, adherence to deadlines and a steady income for authorities.
- Promoting the option of a business manager as part of the PPA process, a measure consistently highlighted by the expert taskforce as important to keeping processes on track.
- Allowing for flexibility, especially when it comes to setting fees and timescales.
The study also calls for establishment of a London Planning Resourcing Hub, backed by government seed funding and PPA revenues, which would:
- Provide LPAs with access to specialist planners and graduates from the private sector.
- Offer both direct support for specific applications and indirect support to clear backlogs.
- Create development opportunities for early-career planners.