Homeowners face paying £270 more for planning applications under Labour as part of a cash grab to boost building.
The threat of a planning surcharge has emerged in a new Whitehall consultation aimed at supporting Angela Rayner’s bid to build 1.5m homes by 2030.
To provide councils with more funds to achieve this, ministers are considering whether to more than double planning application fees for homeowners who want to extend their properties.
Ms Rayner, the Deputy Prime Minister, on Tuesday published the draft National Planning Policy Framework (NPPF), which will bring in new mandatory targets for local authorities and contain plans to unlock so-called “grey belt” land for new development.
To unlock new cash for local authorities to help them speed up the planning process, the consultation document outlines plans to raise more from planning applications.
Currently, the existing fee of £258 does not cover the costs incurred by local authorities to process applications, meaning they effectively make a loss.
As a result, government officials are now looking at whether planning applications fees should rise to £528, which is the level required for councils to break even.
The consultation will close on Sept 24, with any changes to planning fees expected before the end of the year.
This will be pave the way for further changes to the Planning and Infrastructure Bill, which will allow authorities to set fees themselves and reflect the fact that costs vary regionally.
As well as higher planning fees, the Government also plans to raise cash by imposing an extra stamp duty surcharge on overseas buyers.
Cash generated from such levies will help Labour spend £20m on appointing 300 new planning officers.
Getting Britain building again was a key Labour manifesto pledge before the election, as Sir Keir Starmer vowed to boost home ownership and strengthen economic growth.
Analysts argue that improving access to housing will create a more efficient labour market because people will be able to move more easily for work, while wider planning reform will boost infrastructure development.
Andrew Carter, chief executive of the Centre for Cities think tank, said: “The Government is right to put planning reform at the centre of its economic strategy.
“The UK’s cities have the potential to make a larger contribution to the national economy. Tackling the shortage of housing in and around these cities is a key step towards making them – and the country – more productive.”
Housing minister Matthew Pennycook will on Tuesday host a roundtable with developers who have backed Labour’s plans.
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