Weekly planning news

Fast-track AI approvals? Government plans automatic approval for ‘AI data centres’

According to The Times¹, the government is preparing new legislation that would make it easier to build large-scale artificial intelligence data centres. The proposed “AI Bill,” being developed by the Department for Science, Innovation and Technology, would allow data centres in designated AI “growth zones” to gain automatic planning approval - unless the secretary of state or local mayor intervened within a set time frame.

The paper reports that environmental impact assessments and habitat regulations could be set aside under the plan, with developers instead paying into a central fund to offset all but the most serious environmental impacts.

After previously denying that new planning measures were being considered, the government now appears to be moving ahead with significant reforms aimed at fast-tracking AI infrastructure development.

Ministers prepare for further planning reform

Reports from The Guardian² and other media outlets suggest that Chancellor Rachel Reeves is preparing to announce a new set of planning system changes ahead of the upcoming Budget, as part of a wider effort to stimulate economic growth and deliver on the government’s 1.5 million homes target.

This comes following denials in the last few weeks from ministers when questioned about upcoming further planning reform.³

The proposals are expected to focus on streamlining planning processes, reducing legal and environmental legislation, and giving developers greater flexibility to bring forward new projects - potentially contributing up to £3bn a year to the economy.

Divisions remain within government over how radical the reforms should be. Some ministers favour a new Planning Bill, while others argue that technical adjustments to existing measures will deliver quicker, more practical results.

A separate Nature Bill is also being developed later in the Parliament to revisit elements of environmental legislation, reflecting the ongoing challenge of balancing sustainable growth with environmental protection.

From a Planning Portal perspective, these potential changes come at a critical time for the industry. Our recent data shows that developer confidence is gradually returning, but there is a shared industry desire for reforms that bring clarity and consistency to the planning process. A modern planning system must not only enable growth but also ensure that new development contributes positively to the natural environment and future resilience of communities.

Conservatives signal shift away from large affordable housing targets

At the Conservative Party Conference in Manchester this week, shadow housing secretary Sir James Cleverly signalled a distinct difference in the Conservative approach to house building against current government policy - suggesting the party would not set ambitious affordable housing targets if it returned to government.

Speaking at the event, Cleverly emphasised the need to “free up the housing market,” arguing that excessively high affordable housing targets can slow delivery. “If it does not get built, you are not helping anyone,” he said, suggesting that lowering such targets could encourage more development and increase supply across the board.

Cleverly outlined his belief that tackling under-occupancy - where larger homes are owned by individuals or families who no longer require the space - could unlock a “ripple effect” in the housing market, freeing up properties and improving affordability without relying solely on new builds.

He also underlined his view that housing and home ownership would be defining issues in the next general election, particularly if the current Labour government fails to meet its pledge of delivering 1.5 million new homes.

In a pointed criticism of Labour’s stance on planning and local opposition, Cleverly defended what is often referred to as ‘NIMBYism’ - the “Not In My Back Yard” sentiment opposing nearby development - arguing that homeowners have a right to protect the areas they have worked hard to buy into.

While no formal Conservative planning policy has yet been announced, Cleverly’s remarks offer a clear indication of the party’s likely direction. A future Tory government could prioritise market flexibility, reduced affordable housing requirements, and a focus on rebalancing existing housing stock over setting large-scale building targets.

1. https://www.thetimes.com/uk/politics/article/planning-rules-relaxed-for-big-data-centres-in-ai-bill-proposal-5ws89008h
2. https://www.theguardian.com/politics/2025/oct/05/ministers-significant-changes-uk-planning-system
3. https://www.planningportal.co.uk/services/weekly-planning-news/planning-news-2-october-2025#uncertainty-over-future-planning-bill---as-ministers-deny-press-reports