What new mayoral planning powers could mean for rural communities

In another significant step in the government’s programme for devolution and planning reform, the Ministry for Housing, Communities and Local Government (MHCLG) has launched a consultation on new planning powers for mayors in England. The proposals will give elected mayors greater influence over infrastructure delivery and strategic development.

The consultation seeks views on how new powers contained in the English Devolution and Community Empowerment Act 2026 should be implemented. The main proposals within the consultation are:

• New mayoral powers over planning applications of potential strategic importance
• The introduction of Mayoral Development Orders
• The ability for mayors outside London to introduce a Mayoral Community Infrastructure Levy

In positive news for the rural economy, the CLA was successful in getting the government to add ‘rural affairs’ as a core area of competence for future mayors and councils under the English Devolution and Community Empowerment Bill 2026. This area of competence is fundamental in safeguarding against devolution becoming overly urban-focused and should have influence when mayors exercise the proposed powers below.

Perhaps the most significant proposal is to allow mayors to intervene directly in planning applications that are considered as of ‘potential strategic importance’ (PSI). This will enable mayors to ‘call in’ applications that would shape strategic development for an area.

Under the proposed system, local planning authorities would be required to consult the mayor on a PSI application who can then directly refuse the application or, in some circumstances, ‘call it in’ and determine it themselves.

The government sees this as mechanism to not only deliver strategic growth but also ensure development that is of PSI aligns with emerging spatial development strategies (SDSs).

For CLA members, these proposals could be an opportunity for those with development aspirations. However, there remains concern that this wider shift to spatial planning will not acknowledge the importance of the rural economy and the individual contributions it makes to regional economies.

When responding to the government’s consultation on a revised National Planning Policy Framework (NPPF) earlier this year, the CLA made it clear to MHCLG that spatial development strategies must not limit opportunities for rural growth. Policies must be clear that rural areas cannot be wholly protected or designated as ‘no-growth’ zones. SDSs must elevate economic activity of a rural area to the same importance as urban growth. This could be via reference to rural employment hubs, food production and diversification. Industries such as tourism and agriculture are regionally interconnected, regardless of local authority boundaries. Allowing for and maintaining effective cooperation across these boundaries will contribute to creating more resilient local economies in these areas, supporting both agricultural development and diversification and encouraging investment.

Positively, proposals for renewable energy, infrastructure, rural employment sites, transport improvements or large-scale housing could benefit from strategic decision-making where the planning process has become stalled due to ongoing problems such as resourcing issues with local planning departments.

Nonetheless, there is also a risk that planning decisions affecting rural communities could have a further disadvantage, especially if strategic approaches do not recognise the need for rural communities to grow.

The consultation also proposes giving mayors powers to prepare Mayoral Development Orders (MDOs).

In another bid to accelerate growth, an MDO would allow a mayor to grant planning permission for specific development on an individual site. The government sees this as another mechanism to accelerate development in areas where there is strategic support for growth.

Another proposal would allow mayors outside London to introduce a Mayoral Community Infrastructure Levy (MCIL).

The Community Infrastructure Levy (CIL) was introduced in 2008 and raises funds to deliver infrastructure within a local authority area. It is a tariff on most types of new development and is set by some local authorities and is generally based on the size of development.

London is the only place where a mayor can set a levy on development in addition to the local authority. For example, in London, funds from MCIL have funded part of the delivery of the Elizabeth Line.

If they choose to introduce it, mayors can charge MCIL on development to fund strategic infrastructure projects that support growth across the mayoral area. This could provide important infrastructure to enable economic growth, improve connectivity and support rural businesses. However, increased costs via planning obligations and development charges will add to an already expensive planning process, potentially impacting development viability and influencing land values. Any additional levy must be proportionate and not inadvertently discourage investment.

The consultation closes on Monday 5 October. The CLA will be responding to the proposals, considering their implications for landowners, farmers and rural businesses. The new planning powers for mayors must strike the right balance between strategic growth and the protection of rural interests.

Subject to the outcome of this consultation and parliamentary scheduling, the government intends to set a commencement date for the proposed powers in early 2027. These changes will affect existing, proposed and new mayoral authorities.

This consultation is therefore an important opportunity to ensure that any new mayoral planning powers work for the whole of England, including its rural communities.