The politics of planning

The ruckus over sending a high-speed railway roaring through some of Southern England’s most prized back gardens might be dominating the headlines. But another, separate row over planning is brewing. Behind closed doors, ministers are straining to develop a coherent plan to build the new houses that Britain – especially the South East needs – in a way that is politically feasible.

Whitehall is wrestling with how to reform a planning system that has led to more expensive housing and offices, developments that are often ugly and cramped, and soaring costs for everyone – the government included. Housing benefit costs more than the Home Office and Ministry of Justice combined. A shortage of supply has been a big factor driving house prices.

Reform is needed. But what is to be done? One suggestion from the more advanced thinkers among Liberal Democrats is to auction planning permission for housing development, using the windfall gains that come (which run into the millions per hectare) to cut council tax or maintain council spending.