Reforms to get Britain building will boost economy by billions
Source: gov.uk (2025-05-06)

New analysis shows economy could be boosted by up to £7.5 billion over the next decade thanks to the pro-growth Planning and Infrastructure Bill

Planning reforms to accelerate the delivery of new homes, roads and railways, and clean energy projects will boost the UK economy by billions of pounds, according to new analysis.

The Planning and Infrastructure Bill’s Impact Assessment, published today (Tuesday, May 6) has shown the government’s pro-growth changes to get Britain building could benefit the economy by up to £7.5 billion over the next 10 years.

A growing economy is at the heart of our Plan for Change to improve the lives of hard working people and by making it quicker and easier to build 1.5 million new homes, the reforms will turn the tide of the housing crisis and ensure critical infrastructure – including public transport links and clean energy projects that will protect billpayers – is sped up.

Lower costs for businesses, fewer delays and more certainty as a result of the Bill’s measures could lead to further investment and provide an additional boost to the economy.

Even this assessment is expected to be an underestimate of the true economic value the reforms will have in boosting development. The current assessment also does not account for recent amendments to the Bill to overhaul the pre-application stage for critical infrastructure, which government analysis suggests will add another £1 billion over this Parliament.

This huge boost to the economy is on top of the measures already implemented in the new pro-growth National Planning Policy Framework (NPPF). The Office for Budget Responsibility recently said the changes to NPPF alone will drive housebuilding to its highest level in over 40 years, and deliver an additional £6.8 billion by 2029/2030.

Deputy Prime Minister and Housing Secretary, Angela Rayner said:

“Getting Britain building will not only boost economic growth but ensure we deliver the homes and infrastructure working people deserve.

“This landmark pro-growth Bill will get spades in the ground and the foundations laid for a new generation of homes, as we deliver on our Plan for Change.”

The analysis has also been given a ‘green rating’ by the Regulatory Policy Committee, which means the assessment is considered robust and fit for purpose by the independent scrutiny body that considers them.

The Bill will help deliver on the Plan for Change by streamlining the building of 1.5 million homes and crucial infrastructure needed to make Britain a clean energy superpower and protect billpayers and reduce future energy shocks.

This will help put money back into the pockets of working people and support the government’s push to make at least 150 decisions on major infrastructure projects this Parliament, with 17 decided so far.

Further reforms tabled at Committee Stage, and not included in the impact assessment, will streamline the pre-application process for windfarms, new roads and other major infrastructure projects.

For more information:
- The government has now published its impact assessment for the Planning and Infrastructure Bill, which has now received a green rating from the Regulatory Policy Committee. This can be read in full here (https://www.gov.uk/government/publications/planning-and-infrastructure-bill-impact-assessment).
- The analysis includes higher, central and lower estimates for how much money the Bill could add to the economy over 10 years. The highest estimate was up to £7.5 billion, the central estimate was £3.2 billion and the lower estimate was £1.3 billion.
- This assessment does not include the amendments tabled at the Committee Stage (https://www.gov.uk/government/news/planning-reforms-to-slash-a-year-off-infrastructure-delivery), which the government predicts will further boost the economy by £1 billion over the course of this Parliament.
It is expected to be an underestimate of the true impact as there will be ‘wider, un-monetised benefits such as the benefit to society from quicker delivery of housing and infrastructure, and the macroeconomic contribution of increased development supported by the Bill”.

The Bill will deliver a range of measures to speed up the delivery of critical infrastructure and 1.5 million homes.
- The OBR analysis of the National Planning Policy Framework forecast 0.2% to be added to GDP by 2029/30– worth around £6.8bn in today’s prices.