Back yard with conversion potential

Author: Alex Thomson, 'The House' magazine - Nov 16, 2010

Reforming the planning system is one of the most important elements of the government’s approach to decentralisation.

Planning impacts massively on both the scale and location of growth, but in its current form it acts to stymie local development. The effects of this are to drive up land prices, reduce consumer choice, decrease social mobility and reinforce regional differences. So what are the major factors which prevent development, and how does a more local approach solve them?

Over several decades, the planning system has become more divisive and frustrating for business, developers, councils and residents. It has prevented development and has caused resentment and friction between interested local parties. This friction has often manifested itself as ‘nimbyism’, and a rejection of new development in favour of the status quo. This is a major problem. But the solution put forward by many pro-development proponents to centralise the planning process also has some major drawbacks.

A fully centralised planning system prevents local flexibility and innovation, and undermines accountability to local residents. The previous belief that planning could determine where growth should occur has undermined creativity and competition between areas and inhibited growth as a consequence.

Localis therefore strongly welcomed the government’s removal of RDAs and the pledge to reform the Infrastructure Planning Commission, both of which undermined local accountability. The return of local accountability to the planning process is an important first step, but it is not the only issue that needs to be addressed.

Rather than the current fractious relationship which exists between communities and developers, we need to move towards a more consultative and consensual process. There are increasing examples of developers who are doing just that across the country, involving neighbourhoods and providing something back to the community. While this may require more effort in the early stages, it will undoubtedly save time and money in appeals, legal fees and administrative costs over the whole development process.

The government has committed to reforming the planning system to give neighbourhoods a much greater ability to shape the places in the green paper, Open Source Planning. Alongside this, it has pledged to provide new incentives for local housebuilding and business rate growth.

Incentives are a vital part of the planning and development process, and keeping the proceeds from growth locally allows whole areas to benefit. This is an important step towards a genuinely radical alternative to the current system, but it could go further still.

Localis is currently working on a major project exploring practical and fair ways of localising a proportion of business rates to local areas to provide a much bigger incentive for growth. Combined with initiatives such as the general power of competence, this will go a long way to allow flexible and innovative solutions to local problems, involving communities in the process. There will undoubtedly be challenges ahead – not least how to determine the right spatial scale for different developments; the future of the greenbelt; and how planning can further support growth. But what is clear is that a local approach is the only real solution to the current problems facing the planning system.

To read the original article in 'The House' magazine click here