Clark defends 15% planning fees hike

Decentralisation minister, Greg Clark, has defended the Coalition's decision to impose a 15% hike on planning application fees.

In a Commons written statement tabled yesterday, Mr Clark said proposals to implement the new fee structure from this autumn - an increase in line with inflation since 2008 - would protect councils from having to meet the shortfall, and prevent ordinary tax payers from having to subsidise the planning process.

Mr Clark said: 'Providing planning departments with the resources that are required to turn round planning applications efficiently and effectively is important.

'The planning application fee is a relatively small component of the costs of any development, but delays by planning departments in the processing of applications can lead to substantial costs for residents and professional developer.'

The announcement rows back on a previous Government consultation from November 2010 to localise planning fees and allow authorities to fix their own charges.

Employers organisation the CBI, while approving the maintenance of centrally set planning application fees, has warned the decision to hike charges by 15% would put additional strain on firms, already cautious with their development plans.

Rhian Kelly, CBI Director for Business Environment, said: 'Hard-pressed businesses and investors will expect the fee increase to be matched by service improvements, and the onus is on the Government to monitor performance, so that investment is not deterred.'