Infrastructure planning system

National Policy Statements (NPSs) are a key part of the system for managing Nationally Significant Infrastructure Projects (NSIPs) and are important in ensuring that government policy is implemented effectively through the planning system. As the government updates a number of these – including the Energy, National Networks and Water Resources NPSs – the Commission has explored the best future approach for reviewing NPSs and whether the current process of reviewing statements every five years, as set out in the Planning Act 2008, is the most effective way forward.

The study covered the future of NPS review cycles, actions the government could take to ensure NPSs provide greater certainty for investors, infrastructure developers and communities, and other related good practice.

The final report of the study was published on 18 April.

It sets out recommendations to government on infrastructure planning both in the short and longer term (over the next five years), building on existing government plans for reform in this area, including the Action Plan for NSIPs.

The study’s focus was on England because planning decisions are devolved, but it considered the relevance of any potential cross border issues with the devolved administrations.

The government asks the National Infrastructure Commission to provide recommendations on the infrastructure planning system and, in particular the role of National Policy Statements (NPSs).
The study should provide a final report in Spring 2023.

Context

The planning system plays a critical role in in managing competing pressures around the need and location for development; what areas need to be protected or enhanced; and in assessing whether proposed development is suitable.
The planning policy framework for Nationally Significant Infrastructure Projects (NSIPs) – which primarily covers England and Wales – was introduced in the Planning Act (2008). A series of National Policy Statements set out national policy, including a defined need for the infrastructure in question, on different types of nationally significant infrastructure. The Planning Inspectorate is responsible for the administration, examination and providing a recommendation to the relevant Secretary of State on whether to grant consent for Development Consent applications. It is the Secretary of State who makes the final decision on whether to grant or to refuse the application.
The regime has a strong track record for delivering robust consents. Prior to the NSIP system, major infrastructure projects took significantly more time to go through the planning process, for example Sizewell B nuclear power station took 7 years to be consented. In comparison the Norfolk Boreas offshore wind farm, which was consented in 2021, took 2 and a half years from application submission to its Development Consent Order (DCO) being granted.
However, the system has slowed in recent years, with the timespan for granting DCOs increasing by 65% between 2012 and 2021. For example, offshore wind projects have been seen to take up to four years to get through the DCO process.
NPSs are the cornerstone of the NSIP regime and are key to ensuring that government policy is implemented effectively through the planning system. Hence, clear and up-to-date NPSs are crucial for supporting timely decisions on DCO applications. Where NPSs do not have effect (under s.105 of the Planning Act) or where NPSs have been designated without review for a long period, time in examinations can be spent debating the need case of a particular project and infrastructure in order to agree the policy framework for that application. This can take significant time which can be avoided through updated NPSs which put the needs case beyond doubt.
In November 2020, the National Infrastructure Strategy (2020) established a National Infrastructure Planning Reform Programme, to make the NSIP system more effective and deliver more certainty in the process and better and faster outcomes. Further planning reforms on renewables were also announced as part of the British Energy Security Strategy (2022). In addition, the government will publish a cross government Action Plan for NSIPs [published on 23 Feb] which sets out all of the reforms to the NSIP regime that it is bringing forward to ensure the system can support future infrastructure needs.

Key considerations

The government is currently updating a number of NPSs, including in relation to Energy and National Networks and through bringing forward a new Water Resources NPS.

Beyond this current tranche there is an expected need to review other NPSs in the system. In order to maximise the efficiency of future reviews, it will be important to determine the future of NPS review cycles and whether the current process of reviewing NPSs every 5 years, as set out in DLUHC guidance¹, is the most effective way forward. Therefore, the government asks the NIC for recommendations on:

a) Actions the government could take to ensure NPSs are reviewed more regularly and how the process could be improved, including drawing on the experience of those departments who are currently carrying out NPS reviews

b) Whether the current format of the NPS framework remains suitable and effective in providing the necessary planning policy framework for making timely decisions on applications for Development Consent; and

c) Any additional recommendations the NIC considers would help strengthen and improve the policy framework for NSIPs.

In making its recommendations, the government asks the Commission to:

1) Focus primarily on the NSIP regime and major infrastructure projects which are covered by NPSs

2) Set out recommended priorities for government on infrastructure planning both in the shorter term (over the next 18 months) and in the longer term (over the next five years), building on existing government plans for reform in this area

3) Take into account the work that has already been done by government to understand the causes of delay in the system as well as the cross government Action Plan for NSIPs that will be published shortly.

In carrying out the work the Commission will not consider the planning system in relation to housing or business and commercial projects (as defined under the Growth and Infrastructure Act 2013). These sit outside the Commission’s remit.

NSIPs cover England and Wales (and Scotland to a limited extent) but all with different planning thresholds. The Commission’s remit does not cover devolved sectors, such as water, outside of England and so for this reason the study will focus on the NSIP regime in England only. The government expects relevant departments and planning authorities to support the Commission as it carries out the study through sharing available evidence.
There is a significant programme of reform ongoing across infrastructure planning policy within government, including through reforms announced in the National Infrastructure Strategy and British Energy Security Strategy. The Commission should not seek to reopen discussion of these. However, the Commission should consider the impact of these reforms as part of any of its recommendations.