Ministerial Statement November 2024: Scotland’s Planning System – Supporting Investment and Economic Growth and Delivering Quality Homes

“Efficiency”, “capacity”, “proportionality” – terms like these peppered the statement on 12 November, in which the Scottish Government announced its aim to use the planning system to accelerate house-building over the next 12 months. Warm words are welcome but they must be backed by meaningful action to address the “housing emergency”.

For example, news that the proposed new infrastructure levy would not be pursued elicited a collective sigh of relief. It is positive that stakeholder concerns about timescales for secondary legislation, complications experienced with the English/Welsh Community Infrastructure Levy, potential for administrative burden on authorities and increasing financial strain on developers have been heeded.

However, it is unclear how cancelling the levy sits with the Ministers’ simultaneous demand for developments to be supported by infrastructure. How will this infrastructure be funded and who will provide it? These questions may well be answered once the new Regional Spatial Strategies under NPF4 are in place and updated guidance on developer contributions under Section 75 agreements emerges.

In addition to build-out costs, more money is needed to keep the planning system itself afloat – recently published statistics show that applications are taking far too long to determine. Again, where the money will come from is unclear. Developers will be one source and are due to pay higher application fees from next month. While helpful, this is likely insufficient. Only ~65% of planning department costs are met by application fees and increases will only partly plug the financial hole. Crucially, planning application fees are not ring-fenced and councils are not required to spend them on planning matters. There is no guarantee applicants will see benefits from paying increased fees.

Government funding has been earmarked for training the next generation of planners to make policy and decide applications, and for a new Planning Hub to facilitate planning permissions and the construction of consented schemes. These are constructive steps – in theory. In practice, educational grants will fund 30 planners where 700 are necessary. The aim of the Planning Hub has yet to be finessed and we do not understand how it will differ from work already being done by the new Planning Improvement Champion, Chief Planner and various working groups operating in the housing sector.

In terms of policy, NPF4 remains in relative infancy. Only one of the 32 new local development plans it requires has been adopted to date and NPF4 policies continue to be tested in the courts. Pressure is growing for immediate action on biodiversity, climate change, flooding provisions and other aspects of NPF4. Despite a renewed focus on housing delivery, pre-existing tensions in the system still need to be addressed.

With promises to work more closely with developers and regulators, reform to the Compulsory Purchase regime (to push through development in the public interest) and expanded statutory permitted development rights (to remove certain requirements for planning permission), the Scottish Government must carefully balance competing policy priorities and public engagement with urgent housing delivery.

This article was originally featured in SPF Voice November 2024.

Disclaimer 
The matter in this publication is based on our current understanding of the law.  The information provides only an overview of the law in force at the date hereof and has been produced for general information purposes only. Professional advice should always be sought before taking any action in reliance of the information. Accordingly, Davidson Chalmers Stewart LLP does not take any responsibility for losses incurred by any person through acting or failing to act on the basis of anything contained in this publication.