Planning fees and new towns: the CLA’s message to the government

In two major consultation responses to the Ministry for Housing, Communities and Local Government (MHCLG), the CLA has made a strong case for planning reform that works for the countryside. The first consultation outlines potential changes for how planning application fees are calculated and the other focusses on the government’s draft New Towns Programme. Both responses underline a consistent message from the CLA: planning reform must support growth and delivery, but it must also work for rural businesses.

The government’s consultation on planning application fees proposes a new national default fee schedule to ensure 90% cost recovery. It also proposes local fee setting, new fee categories and a possible surcharge for statutory consultees.

In our response, we have acknowledged the need for a planning system that is properly resourced and capable of making timely decisions. However, exceptionally high fees risk making rural development unviable. This is especially true when applicants also face high costs for surveys, technical reports and other supporting information. For members, the key issue is not only the application fee, but the cumulative cost burden of applying for planning permission with high level of risk.

Ultimately, the planning system is a service to the public not just the applicant. Higher fees must be used to improve performance, but still be proportionate, transparent and linked to a visibly better planning service.

In line with the Planning and Infrastructure Act 2025, the consultation proposes the introduction of locally set application fees. Should this be taken forward, the CLA has called for a more transparent model with clear accountability for how fees are calculated and spent. A locally variable model could create inconsistency between areas, and as currently proposed, risks creating a two-tier system for planning costs.

The consultation also proposes a surcharge of around 10% to cover input required from statutory consultees such as highways, heritage and environmental bodies. Our view is that applicants should not be asked to pay more without a matching improvement in the speed and quality of consultee responses. This is especially important where delays outside an applicant’s control already add time, risk and cost to the process.

The New Towns Draft Programme sets out how the government proposes to take forward seven potential new town locations. Each location has been assessed against the five objectives: scale, economic growth, geographic spread, deliverability and placemaking.

The CLA has also responded to this consultation which refines the planning and delivery framework for these proposals and specifically, sets out a draft planning policy. Whilst we welcome greater clarity in the proposed approach for these large-scale developments, the programme must properly assess effects on existing rural businesses, communities and land uses. There needs to be stronger safeguards for best and most versatile agricultural land and early mitigation of environmental and heritage impacts. The programme must recognise the role of off-site Biodiversity Net Gain in delivering improvements to nature. There are many ways that rural landowners can be involved in this process.

In our response, we have stressed that new towns must not designate neighbouring rural communities as no-growth zones or undermine confidence in local investment. There must be constructive engagement with landowners and compulsory purchase powers must only be used where they are genuinely necessary.

These two consultations sit within a wider programme of planning reform that has been in place since Labour won the general election nearly two years ago. Via the Planning and Infrastructure Act 2025, the structure of planning committees will change later this year, increasing the number of applications determined by planning officers rather than elected members of planning committees.

The Devolution Act 2026 received royal assent in April and will be followed by new Strategic Authorities with powers to prepare Spatial Development Strategies (SDS’). These strategies will set out at a higher level how development should take place for a regional area rather than at a local level.

Following the consultation on a revised National Planning Policy Framework (NPPF) earlier this year (the CLA response can be found here), the government’s response and revised NPPF if expected in the summer. The adoption of a new NPPF will influence not only the way that planning applications are determined but also how local planning policies are prepared.

One proposal is a new targeted exemption for brownfield residential development which Defra is currently consulting on. The CLA is working with members and will be responding to this consultation by the deadline on 10 June.

In addition, the Department for Energy Security and Net Zero (DESNZ) is currently consulting on a new proposal to introduce a permitted development right for singular on-shore wind turbines. The CLA will also be responding to this consultation by the deadline on 10 June.