The Government has published an Action Plan setting out reforms to the Nationally Significant Infrastructure Projects (NSIP) regime, including replacing the environmental assessment processes with new Environmental Outcomes Reports.
The action plan also includes proposed new powers, first announced last year, for secretaries of state in NSIP areas - Energy, Transport, Water, Waste Water, and Waste - to designate projects to a new 'fast track' system if they meet quality standards.
The new powers would be made through proposed amendments to the Levelling-up and Regeneration Bill. These would allow a relevant secretary of state to set shorter statutory timeframes for examination, as well as the ability to set regulations for decision-making on non-material change applications.
The amendments also include the power to introduce, through regulations, a cost-recovery mechanism for statutory consultees inputting into NSIP applications.
Local government minister Lee Rowley MP said: 'The plan we have published today demonstrates the commitment across government to ensuring the planning system supports us to improve our energy security and deliver the major transport links and essential facilities this country needs to thrive.'
The plan is based around five key reform areas:
- Setting a strategic direction, where National Policy Statements and wider government policy reduce the policy ambiguity faced by individual projects.
- Bringing forward operational reforms to support faster consenting with an emphasis on delivering proportionate examinations for all projects, strengthening pre-application advice and introducing a fast-track consenting timeframe for projects that meet quality criteria.
- Replacing the environmental assessment processes with new Environmental Outcomes Reports; reviewing the protected sites and species policy framework (including Habitats Regulations Assessment (HRA)), and introducing biodiversity net gain and developing principles for marine net gain for NSIPs.
- Strengthening community engagement with NSIPs, with greater support and measures to embed community input and benefits much earlier in the process.
- Improving system-wide capacity and capability, including through developing skills and training and extending proportionate cost recovery by the Planning Inspectorate and key statutory consultees to support effective preparation and examination of NSIPs and build resilience into the system.
To support these reforms the Department for Levelling Up, Housing and Communities (DLUHC) has set out 18 action points to deliver the reforms.
The DLUHC is the lead department in many of these areas, whereas the Department for Transport (DfT) is only a joint lead department to: 'Review the existing National Policy Statements, where appropriate, to provide a clear and up-to-date need case for infrastructure and to take into account the emerging Environmental Outcomes process.'
The result of the review of the National policy statement for national networks is expected from the DfT this year.
Other actions include:
- Update planning guidance to make the process for determining when and how to carry out NPS reviews clearer and simpler.
- Bring forward legislative changes to streamline and strengthen the application process.
- Introduce a new application service portal.
- Bring forward the digital transformation of NSIP services and rationalise information requirements.
- Incorporate Biodiversity Net Gain (BNG) requirements for all (terrestrial) NSIP projects from November 2025 and develop an approach for Marine Net Gain.
- Continue to support local authority engagement through the Local Authority Innovation and Capacity fund (I&C).
- Develop guidance on community engagement expectations.
- Develop workforce strategies targeted at addressing NSIP skills and capabilities gaps in government agencies.
- Move towards full cost recovery for the NSIP consenting system.
Government officials highlighted that between 2012 and 2021 there was a 65% increase in the time it took for projects to go through the NSIP process.
Timelines for action:
- Spring 2023 – ministers will consult on some of the key reforms including measures to streamline and improve the examination process, a new fast track consenting timeframe and the quality standards that NSIPs will be required to meet to be eligible for this, and proposals to move towards full cost recovery across the NSIP system.
- September 2023 – Government will pilot key aspects of the reforms on several projects from different sectors, including the new fast track consenting timeframe. From this spring officials will identify suitable projects through an ‘early adopter and pilots’ programme.
- By Spring 2024 – ministers aim to have brought forward the key regulatory and guidance changes needed to deliver the action plan, including building more capacity and capability into the system by enabling the Planning Inspectorate and statutory consultees to recover proportionate costs from infrastructure developers.
- From 2025 − ministers hope to see 'a more digital and agile Planning Inspectorate; the introduction of Environmental Outcome Reports; and updated National Policy Statements, which are streamlined and regularly reviewed'.
The Government has also worked with the Planning Advisory Service (PAS) to set up a Local Authority Working Group to explore how using resources more efficiently and/or supplying additional resources to key users of the regime can improve our programme outcomes.
The chancellor of the exchequer and the minister for local government and building safety have also asked the National Infrastructure Commission to conduct a study looking into the role of National Policy Statements in the NSIP consenting process to support these reforms.
