The Town and Country Planning (Fees for Applications, deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2023 have been made.
Therefore, the increase to planning fees applies from 6 December 2023. Fee levels will be reviewed no later than three years following implementation and raised in line with inflation each April
[1]. This means applications submitted on or after 6 December 2023 will use the new fee regime, subject to transitional and savings provisions
[2]
The headlines are as follows:
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A 35% initial increase in planning application fees for major applications;
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A 25% increase for all other applications which include prior approval applications, minor and householder applications;
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Fees to rise yearly with inflation from 1 April 2025 (capped at 10%, measured by the Consumer Price Index from the preceding September);
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Removal of the ‘free go’ for repeat applications;
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A reduction in the ‘planning guarantee period’ for non-major applications from 26 weeks to 16 weeks, unless extended in exceptional circumstances; and
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No ringfencing of planning fees.
The
tables of fees at the end of this Insight Focus provide some of the key changes to fees.
Increase in fees
The Regulations introduce an England-wide fee increase of 35% for major planning applications and 25% for all other applications. This means that householder applications will increase from £206 to £258, while the maximum fee for major applications will rise by 35%, from the current £300,000 to £405,000. There is also a new fee band for prior approval applications for permitted development new dwellings (Part 20), where fewer than 10 homes are proposed – currently the lower threshold is 50 or fewer.
The explanatory memorandum says that increasing fees for major applications more than for other applications is a:
proportionate approach that provides additional income for local planning authorities whilst not unfairly introducing disproportionately high fee increases for householders and small businesses who may be more sensitive to charges than other groups.
While support for these measures was higher among local authorities, it is notable that the majority of developers and businesses also supported the proposals, demonstrating widespread acknowledgement of the need to increase funding for a stretched planning system – and to start rebuilding capacity.
Fees to rise with inflation
The amendment Regulations introduce that fees will rise annually from 1 April 2025, in line with the consumer price index at the preceding September each year, but capped at 10%. If there is deflation, fees will not change. The justification behind these measures is to provide local planning authorities with financial certainty, which the current system of ad hoc increases does not provide. The certainty is also likely to be favourable to developers for similar reasons.
Is it enough?
In putting the amendment Regulations to the House of Lords, Baroness Swinburne reported the first-year fee changes (that is, the 35% increase for major applications, the 25% increase for other applications, and the removal of the ‘free go’) are expected to raise £65 million for Local Planning Authorities (LPAs). However, this funding has not been ringfenced for planning despite many calls from the development sector, amid concerns that the fee increase will not result in a better planning service.
The explanatory memorandum to the amendment regulations notes that the annual development management department funding shortfall in England is a third, which equates to approximately £225 million. Consequently, it says:
It is estimated that there will remain a funding shortfall of approximately £160 million annually. However, it is not considered appropriate to ask applicants to bear a rise equivalent to the full shortfall. Instead, it is proposed to introduce a more modest and manageable increase which will be set centrally. This provides the right balance between providing additional resources for local authorities without deterring development.
The Government says, via the Explanatory Memorandum to the amendment Regulations that
The fee increase will provide the opportunity for local planning authorities to consider whether they are adequately resourcing their planning application service and whether the fee increase will provide an opportunity to employ more local authority officers or access more specialist advice and services.
However, this approach seems at odds with the acknowledgement that local authority development management departments will remain, on average, with a shortfall in funding even after the effect of the fees increase trickles through.
All repeat applications will soon incur a fee – the free go is (almost) gone
The ‘free go’ for repeat applications is coming to an end, from 6 December 2023 – subject to savings provisions. Currently, for many application types, where applicants reapply within 12 months of submitting an application for development of the same character or description on the same site, subject to certain conditions, they can do so without paying a fee.
Repeat applications submitted and found valid on 5 December 2023 or sooner will continue to benefit from the free go, if they meet the necessary conditions. The ability to do so will start to disappear from 6 December 2023.
Free go applications will only start to disappear, rather than immediately stop, because the saving provisions mean that applicants can continue to benefit from the free go, after 6 December 2023, where the necessary conditions are met, notably that the 12 month potential resubmission period for a repeat application on a given site is still running.
Therefore, it is our understanding that it will take a year for this amendment to have full effect, because the free go provision will be available to certain applications determined up to and including 5 December 2023. Government guidance will likely provide clarity on this point.
The removal of the free go is designed to “encourage applicants to engage in pre-application discussions and support the submission of high-quality applications first time round”. However, this viewpoint fails to acknowledge the political nature of planning that can lead to officer recommendations being overturned and the desire of applicants to resubmit and re-engage locally rather than proceeding to appeal.
Late last year, the Planning Inspectorate
encouraged such re-engagement, saying
We closed over 1,800 appeal cases in November. Although this is higher than most months, we are still generally receiving more appeals than we can currently decide. So please focus on resolving issues locally to reduce the number of appeals being submitted and help us improve.
In our view, the ‘free go’ recognises that schemes evolve for market reasons and in response to concerns raised by consultees, officers, members and/or the community. It is too simplistic to say that removal of the free go will lead to better use of pre-application advice services (which are not always available) or the submission of higher quality applications. Some LPAs might also be incentivised to reject applications within the statutory time limits, regardless of the suitability of the application, to receive a second set of planning fees.
A common concern throughout the consultation was that the removal of the free-go could lead to more appeals, for which there is no fee, with a consequential unfunded resource pressure on local authorities. As a result of this proposal, there is certainly potential for the number of appeals to increase rather than a greater uptake of pre-application services, which remain stretched.
Planning guarantee timeline reduced
The Government responded that, alongside the removal of the free-go for repeat applications, LPAs should be able to make decisions on non-major applications within 16 weeks when considering the increased uptake of pre-application engagement. Accordingly, where the statutory determination period for an application is 8 weeks, the ‘planning guarantee’ period is to be shortened to 16 weeks, where the application was validly made after 5 December 2023.
The ‘planning guarantee’ is the government’s policy that no application should spend more than a year with a decision pending including any appeal. Accordingly, the planning guarantee seeks to encourage that planning applications should be decided in no more than 26 weeks, allowing a similar period for any appeal
[3]. If an application remains undetermined after 26 weeks, then the fee paid by the applicant will be refunded to them unless an extension of time for determining an application has been agreed. Where the statutory determination period is 13 weeks (or 16 weeks for Environmental Impact Assessment developments) the planning guarantee is to be retained at 26 weeks. In practice, an extension of time will have been agreed on most applications before 26 weeks, so that they are not eligible for the planning guarantee.
The Government has also stated in the Consultation outcome that LPAs will retain the option of using the extension of time but only in ‘exceptional circumstances’. We expect guidance to expand on what constitutes exceptional circumstances in due course.
While the measure of ‘exceptional circumstances’ is not yet defined, the measure is significantly different from previous policy which allows for an extension of time if the LPA requires it (and its agreed by the applicant), for any reason.
No ringfencing of planning fees – but impact will be monitored
Perhaps the most controversial decision by the Government is the decision not to ringfence planning fees use within the local authority planning department. Despite the strong support for ringfencing (88% of respondents were in favour), the Government has not taken this measure forward within the legislation, noting that it “would impose a restriction on local authorities when they are best placed to make decisions about funding local services, including planning departments”. A point made by number of respondents was that ringfencing is required to justify the increase of fees and to ensure that the extra funding generated led to improvements in performance. This will undoubtedly lead to concerns that the increased planning fees will not result in a better planning service.
In defending the Government’s approach in a parliamentary debate, Rachel Maclean, the then Housing and Planning Minister said
“We have been very clear with local authorities that they are expected to retain the income from planning fees for direct investment in their planning services”[4]. The Shadow Housing Minister, Mattthew Pennycook responded
“Although there is both a clear expectation and a requirement in primary legislation for planning fees to be used by local authorities to perform the function of determining planning applications, in practice many councils use planning fee income, despite the lack of surplus, to cross-subsidise other services. If they did not, the Government would never have felt the need even to consult on ringfencing in their ‘Increasing planning fees and performance’ technical consultation earlier this year”.
Rachel Maclean said that the Government will reiterate the direction to local authorities planning income should be retained for planning services – so we anticipate that this will follow soon.
Planning skills strategy not yet published
When debating the amendments to the Fee Regulations, the Shadow Housing Minister, Mattthew Pennycook asked “when will we see the planning skills strategy that was promised in the policy paper that accompanied the Levelling-up and Regeneration Bill?”. The then Housing and Planning Minister said it would follow “in due course”.
The planning skills strategy was outlined by the Levelling Up Secretary, Rt Hon Michael Gove MP, in a speech in July. The proposals include measures to train and upskill existing planners and provides £24 million over two years to local authorities to help clear the backlog of planning applications and support them with the implementation of the proposed reforms in the Levelling Up and Regeneration Bill. The absence of this funding places more pressure on the increased funding provided through higher planning fees to improve the planning service. More detail about the Planning Skills Delivery Fund is provided in this Planning Matters
blog.
What might have been
The potential changes not being taken forward at this time:
- Fees have not been doubled for retrospective planning applications. The Government says it will continue to develop proposals to double fees for retrospective applications for delivery through regulations at the next available opportunity;
- A proposed amendment to allow councils to set their own planning application fees was blocked in the House of Lords (despite receiving popular support);
- No new fee structure for applications to vary planning permissions;
- No introduction of fees for appeals;
- LPAs are still free to set their own fees for pre-application services, despite support for a nationally set fee.
Potential future fee structure for amending planning permissions
The Government intends to introduce a new fee structure for the variation of planning permissions to reflect the new route to amending planning permissions that will be provided by new section 73B, once in force. The Government said it would consult separately on the detail of this measure following the passage of the Bill – i.e. in the coming weeks if this remains a commitment.
Closing thoughts
The new, increased, fees respond to the widespread calls for a new fee regime to support stretched local authority planning departments and, by extension, recognise the valuable role of planners and the benefits of the profession, to wider society.
While the increased funding has been welcomed, some new measures have been met with concern, particularly the lack of ringfencing and loss of the ‘free go’. However, there is a risk that ringfencing of funds could result in local authorities neglecting to provide additional funds for their planning departments outside of fees generating from planning applications. This could lead to greater discrepancies in funding as LPAs would be increasingly reliant on the amount of development taking place in their areas. How would this affect the budgets of smaller LPAs with limited development taking place or with high levels of constrained land?
The Government was consistent throughout the consultation process, that they expect increased planning fees to result in a better planning service and that they expect investment from LPAs in their planning departments. The lack of detail and clarity provided so far regarding the new performance measurements will not inspire confidence and essentially creates a situation where the Government is asking people to pay greater fees and trust that the service will improve without providing clarity regarding how this will be measured.
Despite this, the new fee regime will be welcome to many in the profession who have long campaigned for greater funding for planning services.
Tables of fees
The following table is the table to be substituted for the table in Part 2 of Schedule 1 to the 2012 Fees Regulations:
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Category of Development
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Fee Payable
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Operations
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1. The erection of dwellinghouses (other than development in category 6) |
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(1) Where the application is for outline planning permission and—
(a) the site area is less than 0.5 hectares, £578 for each 0.1 hectare (or part thereof) of the site area;
(b) the site area is at least 0.5 hectares but does not exceed 2.5 hectares, £624 for each 0.1 hectare (or part thereof) of the site area;
(c) the site area exceeds 2.5 hectares, £15,433 and an additional £186 for each 0.1 hectare (or part thereof) in excess of 2.5 hectares, subject to a maximum in total of £202,500.
(2) Where the application is for permission in principle, £503 for each 0.1 hectare (or part thereof) of the site area.
(3) In any other case—
(a) where the number of dwellinghouses to be created by the development is fewer than 10, £578 for each dwellinghouse;
(b) where the number of dwellinghouses to be created by the development is at least 10 but no more than 50, £624 for each dwellinghouse;
(c) where the number of dwellinghouses to be created by the development is more than 50, £30,860 and an additional £186 for each dwellinghouse in excess of 50, subject to a maximum in total of £405,000.
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2. The erection of buildings (other than buildings in categories 1, 3, 4, 5 or 7) |
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(1) Where the application is for outline planning permission and—
(a) the site area is less than 1 hectare, £578 for each 0.1 hectare (or part thereof) of the site area;
(b) the site area is at least 1 hectare but does not exceed 2.5 hectares, £624 for each 0.1 hectare (or part thereof) of the site area;
(c) the site area exceeds 2.5 hectares, £15,433 and an additional £186 for each 0.1 hectare (or part thereof) in excess of 2.5 hectares, subject to a maximum in total of £202,500.
(2) Where the application is for permission in principle, £503 for each 0.1 hectare (or part thereof) of the site area.
(3) In any other case—
(a) where no floor space is to be created by the development, £293;
(b) where the area of gross floor space to be created by the development does not exceed 40 square metres, £293;
(c) where the area of gross floor space created by the development exceeds 40 square metres but is less than 1000 square metres, £578 for each 75 square metres (or part thereof);
(d) where the area of gross floor space created by the development is at least 1000 square metres but does not exceed 3750 square metres, £624 for each 75 square metres (or part thereof);
(e) where the area of gross floor space created by the development exceeds 3750 square metres, £30,680 and an additional £186 for each 75 square metres (or part thereof) in excess of 3750 square metres, subject to a maximum in total of £405,000.
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3. The erection, on land used for the purposes of agriculture, or buildings used for agricultural purposes (other than buildings in category 4) |
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(1) Where the application is for outline planning permission and—
(a) the site area is less than 1 hectare, £578 for each 0.1 hectare (or part thereof) of the site area;
(b) the site area is at least 1 hectare but does not exceed 2.5 hectares, £624 for each 0.1 hectare (or part thereof) of the site area;
(c) the site area exceeds 2.5 hectares, £15,433 and an additional £186 for each 0.1 hectare (or part thereof) in excess of 2.5 hectares, subject to a maximum in total of £202,500.
(2) Where the application is for permission in principle, £503 for each 0.1 hectare (or part thereof) of the site area.
(3) In any other case—
(a) where the area of gross floor space to be created by the development does not exceed 465 square metres, £120;
(b) where the area of gross floor space to be created by the development exceeds 465 square metres but does not exceed 540 square metres, £578;
(c) where the area of gross floor space to be created by the development exceeds 540 square metres but is less than 1000 square metres, £578 and an additional £578 for each 75 square metres (or part thereof) in excess of 540 square metres;
(d) where the area of gross floor space to be created by the development is at least 1000 square metres but does not exceed 4215 square metres, £624 and an additional £624 for each 75 square metres (or part thereof) in excess of 1000 square metres;
(e) where the area of gross floor space to be created by the development exceeds 4215 square metres, £30,860 and an additional £186 for each 75 square metres (or part thereof) in excess of 4215 square metres, subject to a maximum in total of £405,000.
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4. The erection of glasshouses on land used for the purposes of agriculture |
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(1) Where the area of gross floor space to be created by the development does not exceed 465 square metres, £120.
(2) Where the area of gross floor space to be created by the development exceeds 465 square metres but is less than 1000 square metres, £3,225.
(3) Where the area of gross floor space to be created by the development is 1000 square metres or more, £3,483.
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5. The erection, alteration of replacement of plant or machinery |
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(1) Where the site area is less than 1 hectare, £578 for each 0.1 hectare (or part thereof) of the site area.
(2) Where the site area is at least 1 hectare but does not exceed 5 hectares, £624 for each 0.1 hectare (or part thereof) of the site area.
(3) Where the site area exceeds 5 hectares, £30,860 and an additional £186 for each 0.1 hectare (or part thereof) in excess of 5 hectares, subject to a maximum in total of £405,000.
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6. The enlargement, improvement or other alteration of existing dwellinghouses |
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(1) Where the application relates to a single dwellinghouse, £258.
(2) Where the application relates to two or more dwellinghouses, £509.
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7. The carrying out of operations (including the erection of a building) within the curtilage of an existing dwellinghouse, for purposes ancillary to the enjoyment of the dwellinghouse as such, or the erection or construction of gates, fences, walls or other means of enclosure along a boundary of the curtilage of an existing dwellinghouse. |
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£258 |
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8. The construction of car parks, service roads and other means of access on land used for the purposes of a single undertaking, where the development is required for a purpose incidental to the existing use of the land. |
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£293 |
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9. The carrying out of any operations connected with exploratory drilling for oil or natural gas. |
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(1) Where the site area does not exceed 7.5 hectares, £686 for each 0.1 hectare (or part thereof) of the site area.
(2) Where the site area exceeds 7.5 hectares, £51,395 and an additional £204 for each 0.1 hectare (or part thereof) of the site area in excess of 7.5 hectares, subject to a maximum in total of £405,000.
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10. The carrying out of any operations (other than operations coming within category 9) for the winning and working of oil or natural gas. |
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(1) Where the site area does not exceed 15 hectares, £347 for each 0.1 hectare (or part thereof) of the site area.
(2) Where the site area exceeds 15 hectares, £52,002 and an additional £204 for each 0.1 hectare (or part thereof) in excess of 15 hectares, subject to a maximum in total of £105,300.
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11. The carrying out of any operations not coming within any of the above categories. |
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(1) In the case of operations for the winning and working of minerals—
(a) where the site area does not exceed 15 hectares, £316 for each 0.1 hectare (or part thereof) of the site;
(b) where the site area exceeds 15 hectares, £47,161 and an additional £186 for each 0.1 hectare (or part thereof) in excess of 15 hectares, subject to a maximum in total of £105,300.
(2) In any other case, £293 for each 0.1 hectare (or part thereof) of the site area, subject to a maximum in total of £2,535.
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II Uses of land
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12. The change of use of a building to use as one or more separate dwellinghouses. |
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(1) Where the change of use is from a previous use as a single dwellinghouse to use as two or more single dwellinghouses—
(a) where the change of use is to use as fewer than 10 dwellinghouses, £578 for each additional dwellinghouse;
(b) where the change of use is to use as at least 10 but no more than 50 dwellinghouses, £624 for each additional dwellinghouse;
(c) where the change of use is to use as more than 50 dwellinghouses, £30,860 and an additional £186 for each dwellinghouse in excess of 50 dwellinghouses, subject to a maximum in total of £405,000.
(2) In all other cases—
(a) where the change of use is to use as fewer than 10 dwellinghouses, £578 for each dwellinghouse;
(b) where the change of use is to use as at least 10 but no more than 50 dwellinghouses, £624 for each dwellinghouse;
(c) where the change of use is to use as more than 50 dwellinghouses, £30,860 and an additional £186 for each dwellinghouse in excess of 50 dwellinghouses, subject to a maximum in total of £405,000.
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13. The use of land for—
(a) the disposal of refuse or waste materials,
(b) the deposit of material remaining after minerals have been extracted from land, or
(c) the storage of minerals in the open.
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(1) Where the site area does not exceed 15 hectares, £316 for each 0.1 hectare (or part thereof) of the site area.
(2) Where the site area exceeds 15 hectares, £47,161 and an additional £186 for each 0.1 hectare (or part thereof) of the site area in excess of 15 hectares, subject to a maximum in total of £105,300.
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14. The making of a material change in use of a building or land (other than a material change of use in category 12 or 13(a), (b) or (c)).
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£578.”. |
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Other example fee changes
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Type of application
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Previous fee
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New fee
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Fees for applications made pursuant to section 73 of the 1990 Act
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£234 |
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£293 |
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Fees for applications for non-material changes to non-householder planning permission or permission in principle
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£234 |
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£293 |
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Fees for confirmation of compliance with condition attached to planning permission for a non-householder planning permission
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£116 |
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£145 |
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Fees for prior approval applications under the General Permitted Development Order for Part 20 new dwellings, where more than 50 dwellings are proposed
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£16,525, and an additional £100 for each new dwellinghouse in excess of 50, subject to a maximum in total of £300,000 |
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£22,309, and an additional £135 for each dwellinghouse in excess of 50, subject to a maximum in total of £405,000 |
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Footnotes
[1] The Government initially laid the Regulations before Parliament in draft on 20 July, alongside a response to the February 2023 consultation “Stronger performance of local planning authorities supported through an increase in planning fees”, stating its intention to increase fees over summer, which was delayed. The Consultation response stated that fees will be reviewed by the Secretary of State no later than three years from when they come into force.
[2] Savings provisions to the Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2023 (legislation.gov.uk)
[3] Planning Practice Guidance, Determining a planning application
[4] Draft Town and Country Planning (Fees for Applications - Hansard - UK Parliament
Image credit: Microsoft Stock Image
Disclaimer
This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Lichfields accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. Lichfields is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116
