First Annual Report of the Council of Economic Advisers: December 2008

Listen

C ADDRESSING DRIVERS

Chapter 6
Planning

Background

6.1 The business community regards the inefficiency of the planning system as an obstacle to economic growth. The Council shares these concerns but believes the issues around planning go beyond efficiency. They also extend to the quality of outcomes - there are too many new developments of mediocre quality.

Evidence Base

6.2 There is considerable evidence that the planning system is inefficient:

6.2.1 60% of planning applications are decided in two months against the target of 80%;

6.2.2 fewer than 50% of major applications are decided in less than four months against the target of 80%;

6.2.3 60% of local plans were adopted more than five years ago with about 20% adopted over 15 years ago; and

6.2.4 on average Scottish Ministers take 49 weeks to take decisions on structure plans against a target of 40 weeks.

6.3 The positive features are that the percentage of planning applications granted has consistently been above 90%, suggesting that planning authorities seek to negotiate improvements to developments rather than refuse planning permission, leading to potentially time consuming and costly appeals. In addition, Scottish Ministers have consistently met their targets on notified and called-in cases. The same is also true of appeals and a project is underway to further reduce processing times in Edinburgh, Glasgow and other authorities in the Central Belt to demonstrate the capacity for improvement through administrative measures.

6.4 The endemic delays in planning have not, however, generally resulted in value added in terms of consistently high quality development.

Policy Considerations

6.5 The previous administration sought to reform the planning system to make it more efficient and inclusive. Despite the significant opportunities for individual and community engagement, much of the debate during the passage of the 2006 Planning Act focused on the need to address the lack of public trust and confidence in planning policies and decisions. As a result, there are now significant additional legislative measures in place, or about to be introduced, supported by guidance and advice, which will provide further opportunities to involve communities more broadly and earlier in the planning process.

6.6 The foundations of the new system, as set out in the 2006 Act, also provide for improvements in the efficiency of the planning system. These include:

6.6.1 A statutory National Planning Framework ( NPF) - to allow the Scottish Government to set out its priorities for Scotland's spatial development, and to ensure a more effective approach to the planning of infrastructure to support that development, including the designation of projects of national significance;

6.6.2 A revitalised Development Planning System - with fewer development plans, required to be updated every five years, and prepared in a way that maximises participation and deals with potential controversies 'up-front', allowing for clearer and quicker decisions; and

6.6.3 A fit-for-purpose Development Management System - with a hierarchy of applications to ensure a proportionate approach. Major projects will be dealt with through "processing agreements" to increase efficiency and certainty. The hierarchy includes stripping out small-scale applications from planning altogether, to release resources to deal with more complex applications. This also includes a radical overhaul of appeals, to make the process proportionate to the examination of the issues involved and thus more efficient.

The Council's Recommendations for the Scottish Government

6.7 The Council recommends that the Scottish Government:

Recommendation 12: demonstrates its commitment to reforming the planning system through political leadership, policy direction and its own actions and decisions. This should involve financially incentivising local authorities to promote and facilitate sustainable development projects. Reducing barriers and creating incentives for business will give Scotland the competitive advantage to attract local, national and international investment;

Recommendation 13: changes the culture of planning and reforms the planning system so that it makes a positive contribution to the Scottish Government's Purpose - increasing the rate of sustainable economic growth. This must start with planners seeing themselves as facilitators rather than regulators. Planning is currently seen as an inhibitor of growth, a barrier to be overcome rather than a service that promotes and enables high quality development in the right places and which contributes to Scotland's competitive advantage; and

Recommendation 14: develops a clear understanding that a central purpose of the planning system is to facilitate good quality outcomes - well designed places and buildings that enhance their setting. Too much development in Scotland is a missed opportunity and of mediocre or indifferent quality. There are a few examples of new or regenerated places which are well thought out, some fine new buildings and smaller projects that are to be welcomed but they are the exception rather than the rule. The ultimate test of an effective planning system is the maintenance and creation of places where people want to be. We need to rise to that challenge.

Page updated: Thursday, December 04, 2008