Ellie Ames 13 September 2023

Councils ‘spending £5m a week to subsidise planning services’

Councils ‘spending £5m a week to subsidise planning services’ image
Image: Romolo Tavani / Shutterstock.com

Subsidising planning services is costing authorities almost £5m a week as they await a proposed fee increase to help cover the cost of processing applications, according to the Local Government Association (LGA).

In a policy paper accompanying the Levelling Up and Regeneration Bill, which is being debated in the House of Lords, the Government has proposed raising planning fees by 35% for major applications and 25% for minor and other applications.

The LGA has urged the Government to ‘urgently’ make Parliamentary time to introduce the uplift.

Planning fees do not currently cover the cost of processing planning applications, with 305 of 343 local authority planning departments operating in a deficit totalling £245.4m in 2020-21, according to the LGA.

Modelling suggests that fees would need to be increased by 57% to make up the deficit, highlighting the need for councils to be able to set fees at a local level, the LGA has said.

LGA planning spokesperson Cllr Darren Rodwell said: ‘It is good the Government has recognised the resource issues facing council planning teams and announced it will increase planning fees.

‘While this will not resolve all the capacity challenges within planning departments or prevent a significant national funding shortfall, it is vital the Government does not delay introducing the fee uplift, or taxpayers could be faced with a cost of subsidising the planning system to the tune of almost £5m a week.

‘Only by giving councils the flexibility to set planning fees at a local level can they cover their full costs relating to planning.’

SIGN UP
For your free daily news bulletin
Highways jobs

Cook

North Yorkshire Council
£13.47 - £14.13 per hour
We have an opportunity to join our award-winning Facilities Management catering team Malton, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£12.65 - £13.47 per hour
Are you looking for a cleaning role that is a little different? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Project Officer Economic Development, Skills & Employment

North Northamptonshire Council
£38 220 - £40 777
The focus of this role within the Economic Growth & Sustainability team is economic development Kettering, Northamptonshire
Recuriter: North Northamptonshire Council

Project Support Officer Economic Growth & Sustainability

North Northamptonshire Council
£31 537 - £32 597
You’ll find that we have a wide range of careers that may be more surprising than you think! Kettering, Northamptonshire
Recuriter: North Northamptonshire Council

Service Director - Highways

Central Bedfordshire
£95,953 – £106,769
As part of the council’s leadership team, you will lead specialist technical services Bedfordshire
Recuriter: Central Bedfordshire
Linkedin Banner