UK: Small and medium-sized enterprises (SMEs) across the UK are sounding the alarm over the proposed increase in planning fees, warning that the changes could force house builders many out of the industry and jeopardise the government’s housing targets.
The Planning and Infrastructure Bill, introduced last month by Housing Secretary Angela Rayner, proposes granting local authorities the power to set their own planning fees.
While the bill aims to accelerate infrastructure development and streamline the planning system, industry leaders fear increased fees will disproportionately impact smaller developers.
Rico Wojtulewicz, head of policy at the National Federation of Builders told the Times: “If the government doesn’t reform planning to support SMEs, which at this stage has not happened, we are going to see even more SMEs leaving the industry.”
Brian Berry, chief executive of the Federation of Master Builders, echoed these concerns and emphasised that increased planning fees could render small development sites unviable. He also highlighted the risk that benefits from the planning bill may take time to reach smaller builders, potentially leaving them behind.
As the Times reports, the government’s goal of constructing 1.5 million homes relies heavily on the contributions of small developers, who currently build about a quarter of new homes annually.
However, official figures indicate a decline in planning approvals and a slowdown in housebuilding, posing challenges to meeting these targets.
The Ministry of Housing, Communities and Local Government (MHCLG) has responded to concerns regarding the Planning and Infrastructure Bill, emphasising its commitment to accelerating housing delivery while maintaining environmental protections.
The Ministry asserts that the bill will streamline planning processes, enabling local authorities to expedite decisions and reduce delays in housing development.
Industry leaders, however, caution that without specific measures to support SMEs, the government’s housing ambitions may remain out of reach.
