Adam Smith Institute

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It’s Time to Start Using Development Orders

Last week, Angela Rayner seized control of plans for a new “garden town” in Kent, preventing Swale Borough Council from torpedoing the proposal. Residents were “gobsmacked” and “disgusted” by this central government intrusion. But, I say, good for her! Ange’s unapologetic takedown of entrenched blockers is a sight to behold. But, she could, and should, do more. 

Much ink has been spilt over the UK’s broken planning regime but it's a crucially important issue. Over the last few decades, house prices and rental costs have skyrocketed. All the while, we’re failing to build critical infrastructure like reservoirs, forcing providers to draft farcical contingency plans to tanker water from Norwegian fjords. 

Burdened by local vetoes and rolls of red tape, the UK’s planning system has devolved into a tangled bureaucratic quagmire, hamstringing our economic potential.

Despite widespread acknowledgment of the system’s manifold flaws, successive governments have struggled to overhaul it. Time and again, MPs and local authorities have buckled under pressure from their constituents, preventing real change. This is hardly a surprise, the current system rewards short-termist politicians who block developments and prioritise the needs of existing residents.

Although sweeping reform of the disastrous Town and Country Planning Act remains the boldest solution, we must face up to political realities. The Labour government’s recent planning proposals, while well-intentioned, show that they’re not prepared to tackle this behemoth head-on. 

But YIMBYs take heart! There’s a solution hiding in plain sight - Development Orders.

Introduced in the Town and Country Planning Act of 1990, somewhat less evil than its progenitor, Development Orders are a little-known but powerful tool with the potential to ramp-up housebuilding. They empower ministers to grant planning permission for specific projects or entire areas, bypassing local authorities. Though I’m usually hostile to such top-down interventions, Development Orders serve as a necessary counter measure to the restrictive, state-mandated planning system that’s currently wreaking havoc on our housing supply.

Development Orders have already seen some limited success - facilitating home extensions and the development of film studios. However, their real power lies in their untapped potential.

With Development Orders, the Secretary of State could sidestep local and regulatory roadblocks, fast-tracking essential development. So, rather than waiting for their designation of grey-belt land to filter through the sclerotic National Planning Policy Framework, ministers could simply greenlight new housing and infrastructure in areas that fit their criteria.

They could also be used to create a bespoke regime where house building would be approved within a 10 minutes’ walk of any railway station. Adam Smith Institute research demonstrates that this would stimulate the construction of staggering 1 million more homes within the Green Belt surrounding London alone, unlocking ugly, unproductive land ripe for development.

Of course, Development Orders aren't purely vehicles for more housebuilding, they also restore a much-needed sense of stability. If a project meets the set criteria, it can move forward without fear of a council veto, opening the door for smaller developers. Currently, the housing market is so wildly over regulated that building anything is effectively banned. Only big businesses are able to navigate the existing morass of red tape.

In the hands of a courageous politician, Development Orders could transform the UK’s housebuilding potential, liberalising planning through the back door. Instead of getting bogged down in neverending consultations, politicians could simply pull this lever and get Britain building. 

The UK’s planning regime is at the heart of the housing crisis - and much of our broader economic malaise. Ramping up the use of Development Orders would be a great first step to tackling this prevailing problem. After all, the state created this mess, so why not use the power of the state to fix it?