Weekly planning news

EU warns Planning and Infrastructure Bill could threaten trade deal

The Guardian¹ has reported that the UK has been warned by EU representatives that the government’s Planning and Infrastructure Bill, currently progressing through the House of Lords, could put the UK’s free trade agreement with the EU at risk.

According to the report, EU officials fear the legislation could jeopardise the UK’s access to EU energy markets, with the Guardian noting:

“This would be very difficult for the UK, which imports 16% of its electricity from Europe.”

Concerns centre on proposals that would see the UK withdraw environmental protections mirroring existing EU policy. The Guardian also notes that the bill includes provisions allowing the Treasury to reclaim money from the Nature Recovery Fund, meaning it may not be fully ringfenced for wildlife protection.

The EU argues that such moves, presented by ministers as part of efforts to cut ‘red tape’ and spur growth, could breach the ‘level playing field’ rules underpinning the trade agreement.

In earlier discussions on electricity market cooperation, the UK had signalled its intention to maintain environmental standards for energy infrastructure. However, the new bill is seen by the EU as lowering protections to accelerate renewable energy development—potentially giving UK energy producers a competitive edge.

The bill continues its passage through the House of Lords as EU concerns grow over its implications for trade and environmental alignment.

You can read more by visiting The Guardian’s website.²

1.5 million homes target in jeopardy? Government defends ambition amid watchdog warnings

The Times ³has reported that the Home Builders Federation (HBF) has written to the Office for Budget Responsibility (OBR), warning that the government will miss its target of building 1.5 million homes in England by 2030.

The warning comes ahead of Chancellor Rachel Reeves’ November Budget, where housing growth is expected to play a key role in the government’s economic forecasts.

In its letter, the HBF said the target is unrealistic without stronger policy support, calling on ministers to improve affordability for first-time buyers and cut taxes to help unlock stalled development. The organisation, whose members build around 80% of new homes in England and Wales, argues that rising costs and the absence of a government support scheme since Help to Buy ended in 2022 are holding the market back.

It cited new taxes and levies, such as the landfill tax - which it claims adds around £14,000 to the cost of a new home - and the upcoming building safety levy, as barriers to growth.

The OBR’s March forecast, which incorporated existing planning reforms, predicted around 1.3 million new homes across the UK over five years, falling short of the government’s goal.

In response, the government has defended its target, publishing a press release⁴ underlining its commitment to “leave no stone unturned” in delivering 1.5 million homes. It highlighted £39 billion of investment in social and affordable housing and promised to usher in the “biggest era of housebuilding in modern history.”

The statement also emphasised that the OBR’s figures only reflect existing reforms, not upcoming policies such as the Planning and Infrastructure Bill, the National Housing Bank, or other “pro-growth measures” still to come.

While the HBF welcomes the government’s planning reforms, it maintains that without additional action to stimulate demand and reduce costs, the 1.5 million homes target remains “extremely ambitious.”

Despite some pessimistic forecasts, our data is actually indicating growth for the early stages of national housing development. Planning Portal’s planning application data⁵ finds the number of new homes for which planning permission was sought from 1 July to 30 September 2025 was 68% higher than during the same three-month period in 2024.  

Stone henge A303 tunnel could be revoked

Transport Secretary Heidi Alexander has proposed revoking the Development Consent Order (DCO) for the A303 tunnel and dual carriageway scheme near Stonehenge, which aimed to reduce congestion between Amesbury and Berwick Down in Wiltshire.

The project was originally approved by former transport secretary Mark Harper in July 2023, despite the Planning Inspectorate’s advice that it would cause “permanent irreversible harm” to the World Heritage Site and that its benefits would not outweigh the damage.

This followed a previous DCO, issued in 2020 by Grant Shapps, being ruled unlawful by the High Court in 2022.

The draft revocation order cites “exceptional circumstances” as justification and follows Chancellor Rachel Reeves’ earlier announcement that several transport projects, including the A303 tunnel, would be scrapped after Labour’s 2024 election victory.

The public can find out more on the government's website.⁶

1. https://www.theguardian.com/environment/2025/oct/29/new-planning-bill-could-jeopardise-uk-trade-deal-with-eu-ambassador-warns
2. https://www.theguardian.com/environment/2025/oct/29/new-planning-bill-could-jeopardise-uk-trade-deal-with-eu-ambassador-warns
3. https://www.thetimes.com/uk/politics/article/new-homes-target-rachel-reeves-budget-m9fq6fh89
4. https://mhclgmedia.blog.gov.uk/2025/10/29/coverage-of-1-5-million-homes-target/
5. https://www.terraquest.co.uk/news-and-insights/q3-planning-application-index-2025
6. https://national-infrastructure-consenting.planninginspectorate.gov.uk/projects/TR010025