The Mineral Products Association have released a statement stating that the government’s price increases for planning applications will not have the desired effect on local authority’s budgets
The Government has stated that the increase to planning application fees will bring in an extra £50m per year to fund local planning authority services
The proposed increases will see an increase from £258 to £528 for enlargement, improvement, or other alteration of a single dwelling house, while for two or more will see a price increase from £509 to £1,043.
The planning application fees increase is set to go in effect on 1 April
Other price increases in the proposal, originally put before parliament on 12 January, include:
- Prior approval applications that don’t involve building operations – increase from £120 to £240
- Prior approval applications that involve building operations – increase from £258 to £516
- Prior approvals relating to the change of use of Class E uses to residential uses – increase from £125 to £250
- Householder applications will be £86
- Non-major developments will be £586
- Major developments will be £2,000
- Application for approval of details reserved by condition will increase from £43 to £86 for householders, and from £145 to £298 for any other development
- Base payment for applications over 50 dwellings from £30,860 to £31,3856
- Base payment for agricultural development between 1,000-4,215sqm increasing from £624 to £5,077
- Submission fee for the Biodiversity Gain Plan increasing from £145 to £298
Many businesses previously indicated that they would be willing to pay increased planning fees, so long as they led to real improvements in the services they receive.
The Mineral Products Association warns against planning application fees
Instead of just flat increases, the MPA has instead called for ‘ring-fenced’ in order to boost investment and improvement for under-funded planning departments. This has previously been recommended to the Government, in order to help face shortfalls in other Government areas.
Mark Russell, MPA executive director for Environment and Mineral Planning, said: “The suggestion from MHCLG that raising planning fees will enable local authorities to provide a quicker, better service is naïve and completely ignores the fact that there is no guarantee this income will be invested in planning services.
“Given the funding challenges and statutory obligations on local authorities, without safeguarding the money for planning departments, we have zero confidence that there will be any noticeable improvement from the fee increases, with the additional income simply being used to offset council budget deficits elsewhere.
“There is widespread agreement, even in Government, that planning teams need investment in capacity and skills to deliver the quality and speed of service the mineral products industry relies on. Without planning consent to extract, produce and transport construction materials, Government ambitions for housing and infrastructure could be restricted.
“Planning bureaucracy is often cited as a key barrier to investment and growth, so this is a missed opportunity that doesn’t just create a problem for our industry but for UK construction and manufacturing, and the UK economy as a whole.”