The Government’s new draft National Planning Policy Framework (NPPF), currently out for consultation until March 10th, represents the most significant overhaul of planning policy in over a decade.

It comprises the Government’s national planning policy, which should be applied by all local authorities when considering planning applications and putting together their local planning policies. For businesses across the South East, understanding these proposals is essential to navigating the opportunities and challenges that may lie ahead in their development.

Supporting Economic Growth

The draft NPPF places renewed emphasis on enabling businesses to invest, expand, and adapt. Local plans must now set out a clear economic vision and strategy, taking account of the Government’s Industrial Strategy and identifying priority sectors including advanced manufacturing, clean energy industries, creative industries, digital and technology businesses, financial services, life sciences, and professional and business services.

Local authorities should be actively planning for clusters and networks of knowledge-driven and creative industries, alongside flexible premises that meet modern business needs. Substantial weight is to be given to planning proposals that support economic growth, particularly where they align with an area’s economic strategy.

Delivering More Homes 

Given the Government’s aim to deliver 1.5m new homes during its term, the draft NPPF has a clear focus on housebuilding. Of particular interest is the introduction of a new ‘medium’ category of housing site covering 10-49 homes up to 2.5ha and associated beneficial policies, including promotion of these sites in local policies and less onerous affordable housing developer contributions.  The aim is to make such sites easier to deliver and to offer opportunities for small to medium-sized residential developers, and the businesses that support them, in the South East.

Sustainable Transport and Healthy Communities

An important consideration in the busy South East will be the transport impacts of any new development. The draft NPPF promotes development patterns that reduce car dependency, with minimum density standards of 40–50 dwellings per hectare near railway stations—intensifying development around sites with an extensive commuter network. There is particular emphasis on education and healthcare provision, as well as new controls on hot food takeaways near schools. The “agent of change” principle is reinforced: new development must not place unreasonable restrictions on existing businesses.

Local Government Reorganisation and Plan-Making

Aligned to these planning reforms are the once-in-a-generation proposals to restructure local government. The Government intends to replace the two-tier system of county and district councils with single-tier unitary authorities, and much of the South East will be directly affected. Newly formed unitary councils will need to prepare fresh local plans which must accord with the revised NPPF in force at the time.

The Government has also released proposals for the geographies over which Spatial Development Strategies (SDS) should be produced. SDS are mandatory strategic planning policies for investment and growth and are intended to cover larger geographical areas than the new unitary authorities.  One SDS is proposed to cover Surrey, despite the existence of two new unitary Surrey authorities.

Similarly, one SDS is proposed to cover East and West Sussex and Brighton & Hove, although the final structure of the Sussex unitary authorities remains undecided, with several proposals under consideration and a decision expected in March.

SDS will identify broad locations for growth and development, along with the necessary supporting infrastructure, with a 20-year duration and five-yearly reviews. In addition, new Mayoral authorities will be created, led by a Mayor with planning powers and responsibility for producing SDS. Significant change is expected in how planning decisions are made and services delivered over the next few years, with a period of transition and opportunities for consultation as SDS emerge.

Opportunities and Challenges for South East businesses

The draft NPPF, reinforced by local government reorganisation, should present genuine opportunities for businesses: streamlined support for clean energy and digital infrastructure, clearer economic development policies, and a planning system focused on sustainable growth. However, infrastructure constraints could delay development, flood risk requirements will add complexity, and the emphasis on sustainable transport may require businesses to reconsider location decisions.

If your business is planning a development project, or you work in or support the development sector, the new NPPF will affect you. Our multi-disciplinary specialist planning team can help you understand how your business can prepare for these new changes.