Upcoming changes to planning application fees: response to Consultation and draft Regulations

On 16 July 2026, MHCLG published its response to the consultation on planning application fees (“the Consultation”) and the draft Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment and Transitional Provision) Regulations 2026 (“2026 Regulations”) were laid before the House of Commons and House of Lords. The 2026 Regulations amend the Town and Country Planning (Fees for Applications, Deemed Applications Requests and Site Visits) (England) Regulations 2012 (“2012 Regulations”) which standardised the fees payable to local planning authorities (“LPAs”) for processing planning applications in England. Subject to parliamentary approval, the 2026 Regulations will come into force on 8 December 2026 and apply to planning applications made on or after that date. Applications submitted beforehand will fall under the 2012 Regulations.

What is the background? 

The national planning application fee regime is established under section 303 of the Town and Country Planning Act 1990 (as amended) (“1990 Act”). The intended function of application fees is to offset the service costs incurred by LPAs in determining applications. In recent years, application fees have been incrementally increased, most recently in April 2026 to align with inflation. The Consultation undertaken earlier this year identified there still remained a substantial gap between the service costs incurred by LPAs and the application fees received, with an estimated annual shortfall of approximately £330 million in 2024/25. The primary objective of the 2026 Regulations is to reduce the deficit and offset resourcing constraints which MHCLG expects will contribute towards delivering more efficient and reliable services. 

What are the key proposed changes? 

• National default rate: a new national default fee schedule will be introduced which increases application fees by varying amounts to enable LPAs to recover 90% of their estimated costs incurred.
  • MHCLG elected for the 90% recovery rate, rather than full costs recovery, because it represents a modest taxpayer contribution and strikes the right balance between recovery and supporting growth and incentivising service efficiencies. The consultation response acknowledges that the increase might impact SME developers but considers that this will be offset by improved resourcing. These developers are already being squeezed in the market with increased planning requirements such as BNG and rising costs affecting viability, so SMEs will expect to see increased fees translate into better services to justify another rising cost.
  • Whilst the national default fee provides the general framework, LPAs may request varied rates up to a maximum of 30% increase where the default amount does not adequately reflect their costs, subject to adequate justification and evidence. If certain LPAs encounter exceptional cost pressures that cannot reasonably be addressed within the additional 30%, MHCLG has confirmed that they may consult the Secretary of State to potentially exceed the cap. The operation of the cap, including the use of the approval mechanism and intervention powers, requires further policy development and will be set out in future regulations.
• A streamlined fee structure: the current structure includes various categories which apply depending on the characteristics of the application (size, scale, development type etc.). MHCLG propose to simplify existing fee categories and applicable thresholds, to reduce administrative complexity for applicants and LPAs. This includes the following changes:
  • Standardised flat fees are introduced for the following:
    • A fee of £310 for prior approval applications. The explanatory memorandum noted the 2026 Regulations would include provisions relating to the installation or replacement of larger electrical substations, subject to whether the Government introduces corresponding permitted development rights;
    • A flat fee of £825 for permission in principle (“PiP”) application of up to 9 dwellings. Previously this fee depended on the site area and category of development. For PiP development of 10 to 49 dwellings, the Government will set out its response as part of its wider response to the NPPF consultation.
  • The same fee structure will apply to section 73 and section 73B applications to provide clarity and maintain consistency between two similar application routes. The fees are increasing for section 73 applications: if the application is a householder application, the fee is £112 rather than £86, if the application is an application for major development, £3,150 rather than £2,000 and in any other case £608 rather than £586.
  • The existing fee structure will remain for discharge of condition applications, but the fees will be increased to £125 for householder development from £86 and £435 in any other case from £298, including applications to approve biodiversity gain plans. MHCLG will consider whether to introduce a per-condition charging model or whether alternative approaches such as banded fees could better support cost recovery and improve performance.
• An annual uplift for fees arising from mixed-use outline planning applications comprising more than one category of development: this was unintentionally omitted from the Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2023. The 2026 Regulations stipulate that fees for mixed-use outline applications covering multiple categories are subject to annual CPI-linked increases consistent with other planning fees. The 2026 Regulations also set out the following proposed increase in application fees, depending on the site area:  
  • Less than 0.5 hectares: £719 for each 0.1 hectare (or part thereof) of the site area rather than £578;
  • At least 0.5 hectares but does not exceed 2.5 hectares: £896 rather than £624 for each 0.1 hectare (or part thereof) of the site area; and
  • Exceeds 2.5 hectares: £896 for each 0.1 hectare for the first 2.5 hectares and an additional £267 for each 0.1 hectare (or part thereof) in excess of 2.5 hectares, subject to a maximum in total of £290,625. This will replace the existing fee of £15, 433 and an additional £186 for each 0.1 hectare (or part thereof) in excess of 2.5 hectares, subject to a maximum in total of £202,500. This amendment has the potential to significantly increase application fees, with the third band maximum cap subject to an increase of £88,125.
• An increase in fees for applications for certificates of lawful use under s191(1)(a): where the specified use is one or more separate dwellings up to 10, the fee payable is £700 for each dwelling rather than £578; for uses between 10 and 49 dwelling houses, the fee is £799 for each dwelling rather than £624 and for uses over 50 dwellings, the fee is £799 for the first 49 and an additional £237 for each dwelling house in excess of 49 subject to a cap of £513,512 rather than £30,860 and an additional £186 for each dwelling in excess of 50, subject to a maximum cap of £405,000. Again, the increase in this cap is significant.

The above list is not exhaustive and increases are also made to application fees including those for applications relating to permitted development, certificates of alternative appropriate development, certificates of lawful use under s.191(1)(c), the monitoring of mining and landfill sites and s.96A of the 1990 Act. 

What’s next?

The consultation response notes that the proposed changes are part of a wider programme of structural fee reform. This is intended to extend to introducing local fee‑setting powers by the end of this year, which will provide greater flexibility for LPAs to reflect local costs. A further consultation will also be conducted later in the year on the detailed design and implementation of the proposed planning fee surcharge, including how it should operate in practice and be linked to improved performance of statutory consultees. 

In the meantime, it is vital for those involved in the TCPA regime to engage with the 2026 Regulations to understand how they impact schemes. If you have any queries on the implications, please contact Matthew Tucker, Daniel Whittle or me. We have prepared some case studies for mixed use outline applications, so do reach out if you would like to explore these in more detail with us.