Proposed Planning Fee Increases for 2025 in the UK: Key Highlights and FAQs
The UK government has proposed significant changes to planning application fees as part of its consultation on the National Planning Policy Framework (NPPF). These changes aim to address the funding shortfalls faced by local planning authorities, ensuring cost recovery and enhanced service delivery. Here we prepared a summary of the proposed changes, the rationale behind them, and answers to common questions.
Key Highlights
- Proposed Fee Adjustments:
- Householder Planning Applications: Fees are set to rise from £258 to £528, reflecting the actual costs of processing such applications.
- Other Developments: The increases aim to better align fees with the resources required, particularly for smaller-scale applications, which make up 80% of submissions but generate only 20% of fee income.
- Addressing Shortfalls:
- Local authorities currently face an annual shortfall of £262 million in development management services. The proposed fee hikes aim to close this gap and provide financial stability to planning departments, particularly those reliant on householder applications.
- Application Coverage:
- New fees are under consideration for previously exempt applications, such as those for listed building consents and tree preservation orders. This change seeks to distribute costs more evenly.
- Nationally Significant Infrastructure Projects (NSIPs):
- The consultation also explores introducing statutory fees for NSIPs to compensate local authorities for the significant resources required to engage in the development consent process. This measure aims to streamline funding and reduce reliance on lengthy, uncertain negotiations.
- Timeline:
- Subject to parliamentary approval, the changes are expected to come into effect by the end of 2024.
Background on the Current Shortfall
In December 2023, planning application fees were already increased—by 35% for major developments and 25% for other applications. However, a government analysis indicates that local planning authorities still face a significant funding gap, estimated at £262 million annually.
Most of this shortfall arises from smaller applications, which represent the majority of cases handled by planning authorities. For example, householder applications account for 52% of all submissions, yet their current fee of £258 often fails to cover associated costs. Conversely, fees for major applications, which make up just 3% of submissions, generally recover their costs.
The imbalance means that 80% of all applications generate just 20% of fee income, leaving many authorities—especially those with fewer major developments—financially vulnerable.
Implications for Nationally Significant Infrastructure Projects (NSIPs)
The consultation also addresses cost recovery for local authorities involved in NSIPs. These projects, often resource-intensive, currently lack statutory provisions for fee recovery. Local authorities can negotiate planning performance agreements with developers, but these arrangements are often time-consuming and unpredictable, delaying necessary resourcing.
The government aims to streamline this process and ensure local authorities can adequately fund their engagement with NSIPs.
- Funding Gap: Local authorities face a £262 million shortfall in funding for development management services.
- Disparity in Cost Recovery: Smaller applications dominate submissions but generate limited income.
- Fee Revisions: Proposed increases aim to ensure cost recovery and reduce financial vulnerabilities.
- New Fee Categories: Potential introduction of charges for currently exempt application types.
Dates To Take Note
- December 6, 2023: The UK government revealed its proposal to increase fees for planning applications in England, initiating the reform process.
- April 1, 2024: This date signifies the start of the newly established fee structure for planning applications in England, highlighting the UK government’s dedication to enhancing and streamlining the planning procedure.
- By January 1, 2025: The UK government will enforce a notable increase in fees for planning applications.
- April 1, 2025: The new increased fees will take place.
Conclusion
The proposed fee increases represent a significant shift in how planning services are funded in the UK. While the changes aim to address chronic underfunding, they also raise questions about affordability for individuals and businesses. Stakeholders are encouraged to participate in the consultation process to ensure that the reforms are both effective and equitable.
Frequently Asked Questions
1. Why are the fees increasing? The current fee structure fails to cover the full costs of processing applications, leading to deficits in local authority budgets. By increasing fees, the government intends to improve service quality, reduce delays, and ensure sustainable operations.
2. Who will be most affected by these changes? Householder applications, which make up 52% of all submissions, will see the most significant fee increases. This adjustment reflects their current under-recovery of costs and their disproportionate impact on local authority workloads.
3. Are major developments also impacted? No significant changes are planned for major developments, as their current fees are already sufficient to cover associated costs. These applications represent only 3% of total submissions.
4. Will exemptions still exist? The government is considering removing exemptions for applications like listed building consents and works on protected trees. This change is meant to balance the cost burden and ensure that all applicants contribute fairly.
5. How will this impact the planning process? The increased revenue is expected to enhance planning services, enabling local authorities to invest in staff and technology. This could lead to faster processing times and better engagement with stakeholders.
