The Office for Budget Responsibility (‘OBR’) forecasted that the planning reforms introduced by Labour will increase the level of real GDP by 0.2% by 2029/30.
Within the recent Spring Statement, planning once again took centre stage in the Government’s ‘mission for growth’ with the Office for Budget Responsibility (‘OBR’) forecasting that the planning reforms introduced by Labour will increase the level of real GDP by 0.2% by 2029/30 which the Chancellor said is the “biggest positive growth impact that the OBR have ever reflected in their forecast, for a policy with no fiscal cost”. Whilst this was promoted against the backdrop of a general worsening economic growth forecast compared to autumn 2024, the point remains that the Government is increasingly reliant on successful planning reform to achieve its growth and fiscal objectives.
We saw this focus immediately when Labour came into power last summer, with the introduction of major revisions to the National Planning Policy Framework (‘NPPF’), which is now in place (published in December), and which preceded a number of other planning reforms which are currently ongoing. Ministers are clear that the intention is to change the default answer for development from ‘no’ to ‘yes’.
In this note, Newmark’s Planning & Development team draw on their extensive knowledge and look at how these reforms are actually playing out on the ground for development both in London and Nationally.
