Planning reforms key to delivering housing growth in region
Date published:
The Chamber’s latest column for The Journal by Marianne O’Sullivan, policy manager
Looking ahead to September we are expecting more details on the government’s proposed reforms to planning, skills and infrastructure policy.
The government has just published a consultation into planning, setting out proposed changes to the National Planning Policy Framework with the aim to improve economic growth and build 1.5 million new homes.
This focus on planning reform is very welcome. Planning delays are a key barrier for our businesses looking to invest and deliver growth in the region.
Proposed reforms include implementing a new standard method to assess housing. Reforms to support housing will unlock investment and activity. We will need to ensure we have the people and skills in place in the planning and construction sectors to support this growth in housebuilding.
There is also a proposal to ensure local planning authorities are able to prioritise the types of affordable homes their communities need. With high levels of child poverty in the region, we also need to ensure that there is affordable housing and council housing in place so that local growth is inclusive.
As well as housing, the government will also look at wider infrastructure for economic growth. There is a key role for devolution here, with mayors able to develop local growth plans which will shape the national industrial strategy. There is an opportunity to highlight the role this region can play as an enabler of national growth and deliverer of the net zero transition.
As part of an ambition to reach an 80% employment rate, the Department for Work and Pensions will be looking at creating health and skills plans for the economically inactive, led by mayors and local areas. We know that high levels of economic inactivity are a particular barrier for the North East so it will be vital to have input from the region’s mayors to shape government policy.
We are also expecting a consultation on employment law reform, particularly around zero-hour contracts and a reform of the apprenticeship levy into a ‘growth and skills’ levy.
Increased flexibility within the apprenticeship levy has been a key ask from our members. The new levy would give firms freedom to use up to half of their total levy contributions on non-apprenticeship training. We will be consulting with our members when we get more detail on how the new levy will be applied to businesses.
We will continue working in partnership with our members, government and with the region’s mayors to deliver on a stronger, fairer North East.