Budget announcement – planning headlines

Planning was at the core of the Budget yesterday with the emphasis on growth and getting spades in the ground and cranes in the sky. The Chancellor Rachel Reeves confirmed the Government will invest £120 billion in transport, energy infrastructure and housing, as previously suggested in the Spending Review in June 2025.

Particular emphasis was placed on the nuclear sector throughout. Investment in nuclear alongside renewables was put forward as part of the goal to reduce energy bills. Key projects mentioned include:

• Sizewell C: £14 billion is committed to construction, powering over 6 million homes;
• Small Modular Reactors (SMRs): Wylfa (Anglesey) confirmed as first SMR site, supporting up to 3,000 jobs;
• Nuclear Regulatory Taskforce: The Taskforce published its final report which calls for radical reset of overly complex nuclear regulatory system with 47 recommendations for Government to speed up delivery, reduce costs and strengthen safety. Recommendations include establishing a ‘one-stop shop’ for nuclear decisions and streamlining regulation to remove duplication and improve proportionality to avoid overly bureaucratic, costly processes while improving safety standards. Our legal update provides more details on the content and implications of the report. Reeves mentioned providing an implementation plan within 3 months to accelerate delivery and reduce costs;
• Green Financing Framework: this will be updated to include nuclear energy for green gilts and bonds.

Investment in four AI growth zones, alongside the necessary semi-conductors for this industry, were announced, with two located in Wales. Various funds were allocated to different housing and regeneration projects, with a focus placed on the provision of libraries and playground equipment, which we may see being the focus of infrastructure agreements. In terms of transport, the government’s commitment to investing in the Lower Thames Crossing was voiced, as well as investment in city regional transport, including the Transpennine Route Upgrade between York and Manchester, Midlands Rail Hub and the Northern Growth Corridor. Minerals and marine innovation are also being invested in. 

Reeves highlighted the fact that the Labour Government had overhauled the planning regime in the last 14 months. The Planning and Infrastructure Bill is progressing through Parliament and is expected to achieve royal assent in the next two months. Reeves also mentioned:

• Secondary legislation will make pre-application engagement for major infrastructure projects more targeted and proportionate, reducing delivery timelines for major infrastructure and energy projects by up to 12 months;
• The Government is working with the judiciary to make further reforms to ensure planning cases are heard more quickly and by expert judges. The overall package of judicial review reforms could reduce delays by up to 6 months;
• Fast-tracking 150 planning decisions on major infrastructure by the end of this Parliament;
• Investment of £48 million to boost capacity in the planning system, recruiting an extra 350 planners in England. This includes expanding the Pathways to Planning Graduate Scheme, and a new Planning Careers Hub;
• Funding improvements to the performance and speed of environmental regulators, with extra resources for priority projects and delivery of the Nature Restoration Fund’s Environmental Delivery Plans. 

In terms of further anticipated changes, Steve Reed made a written statement on the next phase of planning reform on 18 November, setting out three pro-growth planning reforms to boost house building, and confirmed a more detailed plan and a revised NPPF will be published for consultation before the end of December 2025.

• The amended NPPF will include a new policy to support suitable development within walking distance of well-connected train and tram stations and extend to some green belt land. This will require clear guidance in order to provide certainty and faster approvals otherwise it is likely to lead to questions and potential litigation around the interpretation of its scope, including what falls within “suitable development”, “ walking distance” and “well-connected”;
• A new consultation direction, legislative change and updated call-in and recovery policy will be implemented to require local planning authorities to notify the Secretary of State of any intention to refuse applications for 150 homes or more, to allow for the Government to call in the application and determine it directly when local or national interest justifies it. New provisions will also allow some called in applications to be decided more quickly via written representations instead of full inquiries with the agreement of the main parties. Although this is meant to speed up development, it may end up adding an additional layer of uncertainty for developers, in terms of whether an application may be called in, what the mode of determination will be and the associated time and cost implications;
• The statutory consultee system will be reformed to make it more effective. On 18 November 2025, the government published a consultation on this which applies to England only and closes on 13 January 2026. Proposals include removing statutory consultee status from Sport England, The Gardens Trust and Theatres Trust, reviewing the scope of what statutory consultees advise on and improving performance management across existing statutory consultee bodies. This area of reform will therefore be subject to the results of the consultation.

It is also worth noting that on 22 October 2025, the Transport Secretary commenced the review of the Airports National Policy Statement (ANPS) to reflect important changes that have occurred since the ANPS was designated in 2018. The Government has identified the third runway proposal promoted by Heathrow Airport Limited as the scheme to take forward in informing the ongoing review of the ANPS. 

We have extensive experience of delivering complex projects across all the investment sectors so please get in touch with us if you would like to explore how the announcements affect a scheme you are involved with.