Navigating the New Legislative Landscape: Implications for Land Promoters and Developers

The landscape for land promoters and developers in England is undergoing a transformation, driven by two pieces of legislation: 

• the English Devolution and Community Empowerment Bill (Devolution Bill) and 
• the Planning and Infrastructure Bill (PIB). 

These Bills collectively aim to accelerate development while significantly empowering local communities and authorities, creating a dual impact on the sector. The Devolution Bill introduces a "generational project of determined devolution," rebalancing power to local leaders through local government reorganisation and the creation of "Strategic Authorities". Concurrently, the PIB establishes a new system of Strategic Planning through Spatial Development Strategies (SDSs) to guide growth and infrastructure. 

Introduction: Navigating the Evolving Legislative Landscape

The UK government's overarching mission is to foster sustained economic growth, attract investment, and elevate living standards across the nation. Integral to this ambition are two distinct yet interconnected legislative initiatives: the English Devolution and Community Empowerment Bill (Devolution Bill) and the Planning and Infrastructure Bill (PIB). 

The Devolution Bill is positioned as a cornerstone of a "generational project of determined devolution," designed to rebalance power from central government towards local leaders and empower communities directly.

Concurrently, the PIB outlines ambitious proposals to accelerate project delivery, unlock investment, and modernise planning frameworks, with specific targets including the construction of 1.5 million new homes and the fast-tracking of 150 planning decisions for major infrastructure projects.

For land promoters and developers, understanding the combined and individual ramifications of these Bills is vital. These legislative changes are set to fundamentally alter how land is planned, developed, and managed across England. 

The English Devolution and Community Empowerment Bill: Empowering Local Authorities and Communities 

This Bill signifies a substantial shift towards enhanced local control and community influence, carrying direct implications for land acquisition and commercial property strategies.

Committee Devolution and Local Government Reorganisation

The Devolution Bill includes provisions aimed at ensuring England is fully covered by unitary authorities, thereby consolidating the existing two-tier local government structure (county and district councils) into single unitary bodies. 

The Secretary of State is granted the power to direct councils to submit proposals for this reorganisation. The process for enacting Local Government Reorganisation (LGR) will remain similar, with areas submitting proposals for the Secretary of State's approval, potentially with modifications, and the Secretary of State can also invite or direct existing unitary authorities to propose merging with others.

The Bill also establishes a new legal category: "Strategic Authority". This designation is intended to expedite and simplify the devolution of powers from Westminster to local government. These Strategic Authorities will inherently possess legal powers spanning critical areas such as transport, local infrastructure, housing, strategic planning, and economic development. 

The Bill also simplifies local authority governance by ensuring that they are all run using the “leader and cabinet” model of governance, a structure already adopted by the majority of councils.

This transformation extends beyond mere administrative restructuring; it fundamentally reshapes the landscape of local governance and decision-making relevant to planning and development. For developers, engaging with a single unitary authority or a Strategic Authority could streamline interactions, reduce bureaucratic layers, and potentially foster more cohesive strategic planning across broader geographical areas, particularly as Strategic Authorities gain explicit powers over "housing and strategic planning". 

However, the transition period for LGR can introduce disruption, potentially leading to delays in local plan adoption and planning application processing, creating uncertainty as new structures and personnel establish themselves. 

Other Key Provisions

The Devolution Bill also includes several other significant provisions that will impact land promoters and developers:

• Community Right to Buy (CRtB): This new right for Assets of Community Value (ACVs) will supersede the existing "Right to Bid." It extends the moratorium period for community groups to raise funds from 6 to 12 months and broadens the definition of an ACV to include assets supporting a community's economy, those of historical importance, and even privately-owned vacant or derelict buildings and land with potential for future community use. A new category, the "Sporting Asset of Community Value" (SACV), will automatically designate eligible sports grounds with enhanced, indefinite protections. Community groups are also granted the right to appeal local authority decisions concerning ACV status.
• Upwards Only Rent Reviews (UORR): The Bill will ban UORR clauses in new commercial leases across England and Wales, with only limited exemptions. This prohibition also extends to renewal leases where the tenant benefits from security of tenure under Part II of the Landlord and Tenant Act 1954. Should a UORR clause be present, the requirement for rent not to decrease will be rendered unenforceable. This could have an impact on vacant shops in town centres. 
• Neighbourhood Governance: The Bill will mandate that all local authorities in England establish effective neighbourhood governance structures, aiming to bring decision-making closer to residents and enable public services to more effectively meet local needs.
• Local Audit Reform: To address issues in the local audit system, the Bill will establish a new body, the Local Audit Office (LAO), tasked with coordinating the system, setting standards, contracting auditors, and overseeing quality.

The Planning and Infrastructure Bill: Accelerating Development and Shaping Land Use 

This Bill is designed to expedite the delivery of new homes and critical infrastructure, presenting significant opportunities but also imposing new demands on developers.

Strategic Planning: A New Framework for Growth

The Planning and Infrastructure Bill aims to introduce a new system of strategic planning across England, primarily through the implementation of Spatial Development Strategies (SDSs). This system is modeled after the one that has been successful in London for over two decades.

The Bill places a duty on authorities to prepare an SDS for their respective areas. The government is also enabled by the Bill to establish "strategic planning boards" to prepare SDSs on behalf of specified groupings of these authorities. The Bill will define the essential procedural and content requirements for SDSs, which must include policies on the use and development of land of strategic importance to the area. They can also incorporate policies related to housing and identify necessary infrastructure requirements. 

Under existing legal requirements, local plans must generally conform to SDSs that become operative under these new arrangements. The strategic planning system is designed to encourage collaboration and provide opportunities for sharing research, evidence, and expertise, which can support the efficient production of SDSs.

If plans are not submitted within the specified timeframe, the Bill includes provisions for government intervention in the production of an SDS. This includes giving the Secretary of State the ability to direct timetables or specific policy content, such as the distribution of housing need, and even to take over the preparation and adoption of an SDS on behalf of strategic planning authorities. 

To facilitate a rapid rollout of the new system, the government intends to update the National Planning Policy Framework and its supporting guidance, providing strategic planning authorities with a clear policy framework. 

In practice, these SDSs will become part of the overall development plan for an area, guiding local plans and the determination of planning applications. Specifically, SDSs will:

• Provide a spatial strategy to guide local plans and enable growth.
• Identify key infrastructure requirements needed to implement the spatial strategy.
• Identify strategic locations for development and indicate the required scale of development.
• Identify areas where protection or restoration of the natural environment is necessary.
• Apportion and distribute housing need to the most appropriate locations.

The implementation of this strategic planning system is expected to foster sustainable growth, address critical spatial issues like housing needs, deliver strategic infrastructure, boost the economy, and enhance climate resilience and nature recovery. It will also lead to more efficient and timely production of local plans, which will provide detailed site allocations to support the spatial strategy set out in the SDS. This process offers opportunities for local planning authorities to engage and collaborate with strategic planning authorities, leading to efficiencies in their plan-making processes, including sharing evidence, aligning timetables, and pooling resources.

Other Key Elements of the Planning Infrastructure Bill

• New (and controversial) powers to secure offsite mitigation: The Bill establishes the Nature Restoration Fund (NRF), an alternative approach for developers to meet certain environmental obligations relating to protected sites and species. It also allows Natural England to bring forward Environmental Delivery Plans to deliver improvements to the natural environment. 

• Expanded use of development corporations: Extends powers to mayoral combined authorities and local authorities to establish locally-led development corporations outside of New Towns Act.
• Modernised CPO process: Simplifies and digitises the Compulsory Purchase Order process with clearer timeframes, but it introduces reform to the ‘hope value’ calculation in land compensation, allowing public authorities to display it in certain regeneration and BNG contexts.

Synergies and Strategic Considerations: A Combined Impact

The convergence of these legislative changes presents several key opportunities. The Devolutions Bill’s requirement for the amalgamation of two tier authorities into larger Unitary Authorities, and the creation of new Strategic Authorities sets the stage for the PIB's delivery of new strategic planning framework through SDSs, which will  provide a clearer spatial strategy for growth and infrastructure, offering a more predictable environment for large-scale projects.

Key Risks and Challenges

Navigating local government reorganisation, while aiming for efficiency, could lead to short-term disruption, uncertainty, and delays in planning decisions during the transition to unitary authorities and Strategic Authorities. The new strategic planning system, while aiming for clarity, introduces another layer of planning that developers must navigate, with potential for government intervention if local authorities do not comply with SDS preparation. 

Strategic Recommendations

To navigate this evolving landscape, land promoters and developers should consider the following strategic recommendations:

• Early and Genuine Community Engagement: Move beyond perfunctory consultations. Engage with community groups and emerging neighbourhood governance structures early and genuinely, seeking to understand and integrate local needs and aspirations into proposals. Consider co-design or partnership models where appropriate.
• Monitor Local Government Changes: Stay abreast of LGR processes and the formation of new Strategic Authorities in target areas. Understand their new powers, strategic priorities, and key decision-makers.
• Leverage Local Plan and SDS Updates: Engage proactively with local authorities as they update their local plans under strict timetables  and prepare Spatial Development Strategies, particularly concerning greybelt reviews, to influence site allocations and policy.

To provide a consolidated, at-a-glance summary of how the key provisions of both Bills collectively impact the sector, the following table details their combined influence:

This consolidated view highlights the multi-faceted nature of the legislative changes, allowing developers to quickly grasp the clear opportunities, significant risks, and the overarching strategic adjustments required to thrive in this new environment.

Conclusion: A Forward Look for the Development Sector

The English Devolution and Community Empowerment Bill and the Planning and Infrastructure Bill collectively usher in a new era for land promotion and development in England. While the PIB presents clear opportunities for accelerated delivery and the new strategic planning framework, the Devolution Bill introduces substantial new complexities, driven by a significant rebalancing of power to local authorities.

Success in this evolving landscape will hinge on the sector's ability to adapt swiftly and strategically. Developers must be prepared for more intensive local engagement, sophisticated due diligence, and a steadfast commitment to delivering high-quality, infrastructure-rich, and socially valuable projects.  Navigating this dynamic environment will require foresight, flexibility, and a renewed focus on building strong relationships with both local authorities and the communities they serve.

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