GUEST COLUMN:
Chris Sutton
Chartered Surveyor
Planning reform is a hot topic following the election of a new government in Westminster which has committed itself to an overhaul in pursuit of growth. Likewise, a supportive planning system will greatly improve a Welsh business’s ability to deliver housing, employment, infrastructure and decarbonisation projects.
The planning system in Wales is vital for shaping the future of our towns, cities, and regions. Yet the delays in developing Strategic Development Plans (SDPs) highlight a troubling issue. A plan-based planning system only works if plans are up to date.
Imagine a private sector board telling its shareholders that it would take 14 years to produce a business plan. It would be unacceptable—and yet, this is effectively the timeline we’re dealing with for SDPs, the business plans for our city regions in Wales.
The introduction of SDPs was a key measure in the Planning (Wales) Act 2015. These plans were designed to operate at a regional level, sitting between the national Future Wales plan and Local Development Plans (LDPs). They were meant to bring coherence to the planning process, addressing issues that cross local authority boundaries and ensuring that regional priorities align with national objectives. However, the first SDPs are now unlikely to materialise before 2028 or 2029—14 years after they were legislated. This is simply not good enough. Also, the inter-related nature of the plans means the others are dysfunctional until the full suite of plans is in place. Perhaps we should focus on the SDPs and downgrade the LDPs; indeed time-expired LDPs should be cancelled. Welsh Government should not say there is full plan coverage when many are out of date.
The purpose of an SDP is to act as a business plan for a region wider than a single local authority, setting out where development should take place and ensuring the right infrastructure is in place to support growth. Without these plans, development becomes fragmented, and opportunities of scale are missed. Each LDP looks at its county borough in isolation and we miss the bigger picture. For example, where in Cardiff Capital Region could we offer a site of 300 acres to compete for projects such as JLR’s gigafactory which recently chose to locate in nearby Somerset? That inward investment ‘miss’ was especially galling bearing in mind the job losses Wales has suffered at JLR’s parent, Tata.
The delays in creating SDPs are symptomatic of deeper issues in the Welsh planning system. Local authorities are grappling with stretched resources. There has been a reduction in funding for the planning system at a time when additional responsibilities from the 2015 Act have been introduced through pre-application consultation, environmental considerations as well as the new layers of plans.
So what can be done? The pre-app process should be reviewed – a recent CBI study received feedback from one major construction company that pre-app consultation has become a barrier to progress rather than a tool for facilitating it. Economies of scale could be achieved by pooling resources at a regional level as well as reforming the Use Classes Order, as in England, and greater use of Permitted Development Rights (with safeguards) and Local Development Orders.
We need a reset. Welsh Government must prioritise the funding of planning services and work with education providers to ensure a pipeline of skilled professionals for the future. The effective delivery of SDPs, greater use of AI in the procedural early stages and local planning hubs as a floating resource can all help unblock a system which is holding back growth.
Meanwhile, the suspension of Technical Advice Note (TAN) 1, which required local authorities to maintain a five-year housing supply, has slowed residential development. Without this requirement, there is less incentive to ensure housing delivery keeps pace with demand. It is what keeps local authorities honest, otherwise the temptation can be to slip into non determination. The reintroduction of the TAN 1 five-year housing supply and a reformed ‘Planning and Environment Decision Wales’ (PEDW) would provide applicants with better guard rails.
The stakes are high. Our planning system creates the conditions for economic growth, investment, and improved quality of life. A functioning planning system should enable us to respond to opportunities—whether that’s attracting a major employer or addressing the need for more housing. At present, the system feels reactive and underpowered, with local authorities and developers often at odds rather than working collaboratively.
The private sector also has a role to play, contributing expertise and ensuring that planning decisions are informed by market realities. If ring-fenced planning fees increase as part of this reset then most developers would buy in to this.
For the private sector to drive economic recovery, Wales must have an attractive business environment. A supportive planning system will greatly improve a Welsh business’s ability to grow and create jobs. The gridlock in Wales’ planning system is not just an administrative issue—it is holding us back. If we want to see Wales thrive, we need to act now to ensure that the foundations for future growth are in place. That includes a planning system that is fit for purpose, agile, and ready to meet the challenges of the 21st century.
